SB 9 California Housing Opportunity and More Efficiency (HOME) Act SB 9, also known as the California Housing Opportunity and More Efficiency (HOME) Act, is a state bill that requires cities to allow one additional residential unit onto on parcels zoned for singledwelling units. Since the adoption of this section of the Government Code, the City has adopted an urgency ordinance in January 2022 and will update its SB 9 Ordinance for formal adoption by early 2023 to facilitate subdivision under SB 9. The City has not received any inquiries of interest for SB 9 lot splits and is not currently processing any SB 9 application.
Infrastructure Constraints
Water Supply
The primary infrastructure constraint to the development of housing in Carmel is the lack of potable water. The lack of a reliable available water supply continues to limit growth in Carmel and throughout the Monterey Peninsula region.
Carmel is under the jurisdiction of the Monterey Peninsula Water Management District (MPWMD) and receives its water from the California-American Water Company (Cal-Am). The MPWMD has permit authority over the production and distribution of all water supplies within the Monterey Peninsula region, and allocates water supplies to cities and County areas within its jurisdiction. Water service by Cal-Am is constrained by State Water Resources Control Board (SWRCB) Order WR 95- 10, which determined that approximately 70 percent of Cal-Am supply is based on unlawful diversion from the Carmel River. Order 95-10 requires that any new water supply be used to reduce diversions from the Carmel River prior to allowing new users. Furthermore, SWRCB issued a CeaseAttachment 1 Appendix B – Housing Constraints B-32 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 and-Desist order to Cal-Am in 2008 to further restrict water use which limits the placement of new water meters to service new development.
The City has approximately 2.661 acre-feet of available water6. This is the only water available to the City until the District supplies increase and new allocations are made to each city in the District.
Based on current supplies, sufficient water is notmay not be available to fully accommodate additional development commensurate with the City’s total RHNA (349 units). The City will continue to work with local and regional agencies to explore options for additional water supplies during the 6th cycle Housing Element planning period.
The City includes a program to work with local and regional agencies to pursue new water supplies and includes prioritizing water allocation of the City’s 2.661 acre-feet of water for affordable housing through the development of a water distribution policy.
Wastewater
The Carmel Area Wastewater District (CAWD) collects and conveys wastewater from a business or residence to the wastewater treatment plant using underground pipes and lift stations. The CAWD collection system is comprised of approximately 81 miles of gravity sewers ranging in size from 6 inches to 27 inches in diameter together with nearly four (4) miles of force mains, seven (7) pump stations, and over 1,500 manholes.
The major trunk sewers include the Carmel Valley Interim Trunk Sewer which serves Rancho Rio Vista, portions of Carmel Views, the Carmel Rancho Shopping Center, Hacienda Carmel, Del Mesa Carmel, Quail Meadows and outlying areas at the mouth of the Carmel Valley; the Hatton Canyon Sewer (which joins the Carmel Valley Trunk sewer at the intersection of State Route 1 and Rio Road) serves the High Meadows, Carmel Knolls and portions of the Carmel Hills subdivisions; two trunk sewers serve the city of Carmel and the Hatton Fields areas.
Pump stations are located at (1) the westerly boundary of Hacienda Carmel, (2) the westerly terminus of 8th Avenue (at Scenic Drive), (3) the intersection of Monte Verde Street and Sixteenth Avenue, (4) west side of Scenic Road approximately 200 feet north of Ocean View Avenue, (5) the end of Calle La Cruz (Carmel Meadows) (6) at the westerly boundary of the Carmel Meadows subdivision approximately 750 feet southwesterly of the Calle La Cruz pump station and (7) on the West side of Highlands Drive approximately 100 yards from Highway 1. All pump stations have been upgraded to allow remote monitoring and have capabilities for standby power and emergency bypass.
6 MarchSee June 2023 MPWMD Monthly Allocation Report, chromeextension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.mpwmd.net/asd/board/boardpacket/2023/20230717/1 0/Item-10-Exh-10-A.pdf
Attachment 1
Appendix B – Housing Constraints B-33 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 The District’s’ permitted capacity is 3.0 million gallons per day (MGD) and their current average daily dry weather flow is approximately 1.2 to 1.3 MGD.
The City is required to plan for an additional 349 residential housing units in this planning cycle.
Based on capacity and communication with the District, the CAWD has adequate treatment capacity to serve these units7.
On and Off-Site Improvement Standards
Since the City is largely built-out, all infrastructure, including curbs, gutters, sidewalks, streets and utilities are in place. Development of residential units involves hooking up to the existing utilities, which already exist in the right-of-way. All electrical distribution lines, telephone, cable television, and similar service wires or cables, which provide services to new development, are to be installed underground. Typical infrastructure costs in the CC, SC, RC, and R-4 districts are limited to sidewalk, curb, and gutter improvements, undergrounding of utility wires, stormwater drainage improvements, and landscaping. The City’s Municipal Code does not contain requirements for subdivision off-site improvements. However, the Code includes a chapter on requirements related to streets, sidewalks, and public places.
Sidewalks
Construction of sidewalks is not required in residential areas of the City. If sidewalk construction is proposed, a permit is required. The proposal must show that the construction of the sidewalk or walkway will preserve public safety, health or welfare, resolve a serious drainage problem, or that it would otherwise benefit the general public. The construction of the sidewalk or walkway must follow the natural contours of the land, and no less than 50 percent or more of the sidewalk area in front of any building site must be retained in planting. It shall continue to be the policy of the City to avoid formal sidewalks in favor of meandering and unpaved footpaths where possible. There are no specific requirements regarding the width of the sidewalks.
Driveways
Construction of a driveway requires a permit from the Department of Community Planning and Building in conjunction with the Director of Public Works and the Director of Forest, Parks and Beach.
Landscaping
Sidewalk street trees are encouraged by the City, with the City Forester determining the number of trees, species, and exact location. Sidewalk street trees should be located near the head of, and adjacent to, parallel parking spaces with the trunk of the tree located 4.5 feet back from the head of the parking space. For trees at the curb line there should be at least four feet between the trunk and 7 May 17, 2023 email correspondence with CAWD
Attachment 1
Appendix B – Housing Constraints B-34 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 the facing building or planters in front of the building. All tree planters are encouraged to be as large as possible so that additional landscaping can be incorporated into the planters.
The City also encourages including “mini-parks”, which is a park that protrudes into the street from the curb line or is in the street. The design of mini-parks must be consistent with the standards in the Forest and Beach Management Plan. All new mini-park installations require a review by the Staff Traffic Committee and approval by the Planning Commission.
Streets
The improved portion of residential streets in Carmel are narrow in width, 26 to 34 feet, with no gutters or sidewalks. This lack of formal development of streets throughout Carmel’s residential neighborhoods (with the exception of some of the downtown thoroughfares) has been a conscious effort on the part of residents to maintain a “village in a forest” atmosphere. The City has not established standardized street widths requirements. As Carmel is a built-out city and new development will occur as infill or redevelopment on parcels within the established street grid, construction of new streets is not anticipated. Therefore, street standards will have no impact on the cost and supply of housing.
Parking Requirements
The City’s parking requirements are generally in line with typical parking requirements. In the R-1 District, one (1) on-site parking space per dwelling must be provided on sites of 8,000 square feet or less in area and two (2) on-site parking spaces per dwelling on sites larger than 8,000 square feet in area. One (1) parking space must also be provided for each guesthouse. (CMC 17.10.030(F)(1)). R-1 zone sites with Class II accessory dwelling units (accessory dwelling units that are legal nonconforming units that were established prior to April 5, 1988) are required provide a minimum of one (1) parking space on-site at the time of approval. Upon enlargement or improvement of a Class II unit, one (1) parking space each for the primary dwelling on the site and for the accessory dwelling unit are required. Improvements to accessory dwelling units are allowed even if one or both parking spaces encroaches into a setback. Sites with Class III or IV accessoryAccessory dwelling units built after 1988, or that were improved, are required to provide one parking space behind all setbacks for the accessory dwelling unit and are required to comply with all parking requirements established in Chapter 17.38 CMC, Off-Street Parking Requirements, for other development on the site. These parking standards are low enough to avoid posing a constraint to development. To the degree that these standards conflict with new state law regarding accessory dwelling units, they will be corrected as the City brings its ADU regulations into line with the most recent changes in state law (see the discussion above under the heading “Special Housing Topics”).
Table B-7, summarizes off-street parking requirements as shown in Table A of 17.38.020, for all uses, projects, developments and redevelopments. New projects or developments shall only be allowed when meeting all parking requirements of this chapter and the requirements of any Attachment 1
Appendix B – Housing Constraints B-35 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 conditional use permit, subdivision approval or specific plan applicable to the property. Proposed uses within existing buildings may replace existing uses as long as any existing parking deficiencies on the property are not increased by the replacement. Proposed additions of floor area, new shops or dwelling units, or other similar changes in land use resulting in a net increase in parking requirements, as set forth in this chapter, shall provide all required parking generated by the new activities on the site.
Table B-6 Minimum Off-Street Parking Requirements
Land Use Basis for Requirement Land Use District Parking Factors CC SC RC R4
Permanent Residential Use Spaces per Unit 1 1 1.5 1.5
Affordable Housing for
Moderate-, Low- or Very
Low-Income
Spaces per Dwelling Unit ½ ½ ½ ½
Senior Housing, Cooperative
Housing or Group Care
Facilities
Spaces per Dwelling Unit 1/3 1/3 1/3 1/3
Guest Spaces per Each Four
Full Units 1 1 1 1
Nursing Home or Other
Resident Care Facility
Spaces per Patient or
Resident N/A 1/3 1/3 1/3
Commercial Retail or
Service Uses Not Otherwise
Specified in This Table
Spaces per 600 Square Feet
of Commercial Floor Area or
per Business/Shop Space,
whichever is Greater
1 1 1 1
SIC 701: Hotels and Motels Spaces per Rental Unit,
Including Manager’s Unit 1 1 1 1
SOURCE: CMC 17.38.020(C) Table A: Minimum Parking Requirements The City has adopted a reduced parking requirement from one space to one-half space per dwelling unit for developments that include affordable housing. Parking costs contribute significantly to the cost of development in Carmel-by-the-Sea and this flexibility often makes affordable housing more feasible.
Summary of Governmental Constraints
The governmental constraints to the development of affordable housing in Carmel-by-the-Sea are summarized below.
Attachment 1
Appendix B – Housing Constraints B-36 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Lack of Water Resources
The primary infrastructure constraint to the development of housing in Carmel is the lack of potable water. The lack of a reliable available water supply continues to limit growth in Carmel and throughout the Monterey Peninsula region.
Location in the Coastal Zone
Carmel-by-the-Sea is located in the California Coastal Zone and is therefore subject to a host of regulations that are not present in communities outside the Coastal Zone. The presence of additional land use regulation via the Local Coastal Program, in general, means that housing development in Carmel-by-the-Sea faces a high bar to succeed. The additional hurdles presented by Coastal Zone regulations represent an additional layer of complexity to the City’s already timeconsuming review process.
City Design Review and Permit Processing
Architectural design is important in Carmel-by-the-Sea. The historic character of Carmel’s built environment has been shaped by decades of careful and deliberative design review (referred to as “design study” in Carmel) that addresses such features as site design, architectural style, building materials, color palettes, fenestration, tree placement and landscaping. This attention to detail has resulted in a beautiful, forested village atmosphere that continues to capture the imagination of people from around the world who visit and even choose to make Carmel their home. The same design review process that has contributed to Carmel becoming a world-famous destination, however, has also impacted its ability to provide housing for lower-income households.
The City’s design review (design study) process may be lengthy for projects involving significant trees, historic resources, and/or underdeveloped plans. The following are governmental bodies responsible for decision-making through the course of development review:
Forest and Beach Commission if removal of a significant tree removal is proposed (one hearingif significant tree removal is proposed);
Historic Resources Board for historic properties and also for non-historic properties in the Conservation District (one hearing to ensure development is compatible with neighborhood context);
Planning Commission: One hearing, minimum, for commercial and multi-family residential projects. Preliminary hearing/review for commercial/multi-family is optional but encouraged. Two hearings, minimum (one Concept hearing, one Final hearing) for single-family projects;
City Council review on appeal; and
Coastal Commission review on appeal (Coastal Zone Appeal jurisdiction only).
Attachment 1
Appendix B – Housing Constraints B-37 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 In addition, the City’s permit process, which includes a Conditional Uuse Ppermit above 22 du /acre and includes both objective and subjective standards, could also pose as a constraint to developers, especially of multi-family affordable housing projects.
City Fees
The City’s design review process may be financially prohibitive for lower income households and likely most affordable housing projects.
Parking Requirements
Parking is limited within Carmel-by-the-Sea. Off-street parking requirements can be prohibitive to building multi-family and affordable housing.
Commercial Conversion of Overnight Visitor Accommodation Motels for Multi-Family Housing
The Municipal Code Section 17.56.060 limits the total number of overnight visitor accommodations (hotel/motel/inn) units which increases the value of the use and acts as a disincentive to redevelop existing older non-conforming overnight visitor accommodations to refurbished permanent multifamily residences. The limit also acts as a disincentive to add on-site employee housing because scarce square footage is more valuable as an overnight visitor accommodation use rather than a residential use that serves lower-income employees.
The City will explore the development of a program to allow the transfer of development rights of overnight visitor accommodation hotels and motels located in the R-1 zoning district to the commercial zoning district key areas of the City. This will allow older motels to convert to multifamily housing and thereby provide a new source of affordable housing in the community. and, the City will develop an Employee Housing Program.
Accessory Dwelling Units
The City of Carmel-by-the-Sea last updated it ADU ordinance in 2017, and therefore the City’s regulations addressing ADUs are out of date. The City has included a new program in this 6th Cycle Housing Element to revise its Zoning Municipal Code to be consistent with ADU and JADU state law, incentivize manager’s units in existing hotels and motels and develop standardized ADU plans.
The City is currently updating their ADU Ordinance to comply with recent changes to state law.
Manufactured Homes and Mobile Homes
A new program to amend the Municipal Code to clarify that manufactured homes and mobile homes are allowed as a permitted use in the R-1 zoning district is included in the Housing Element.
Attachment 1
Appendix B – Housing Constraints B-38 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Use Permits Multi-Family Housing
There are opportunities to reduce redundancies and facilitate residential construction while still enabling development to meet City regulations. Taking an overall critical look at the application of use permits, including application to increased densities for affordable multi-family residential projects, and removing this permit requirement where it does not add any necessary regulations will remove a regulatory constraint that adds to residential developer uncertainty, extends the permit entitlement process, and overall residential development costs. The 6th Cycle Housing Element includes a program to eliminate unnecessary use permits.
Currently, the City allows multi-family housing without a conditional use permit (CUP) at densities up to 22 dwelling units per acre. In order to provide additional incentive to build multi-family housing, the City will amend the Code to remove the CUP for multi-family developments up to 33 du/ac.
Transitional and Supportive Housing
The 6th Cycle Housing Element includes a program to update the Municipal Code to further clarify that transitional and supportive housing in the R-1 and R-4 zoning district are permitted uses.
Low Barrier Navigation Centers
A program has been included in the element to develop by-right procedures for processing lowbarrier navigation centers.
Development Standards for Senior Housing
A program is included to address the lack of development standards in the A-2 zone in order to provide greater clarity and certainty to guide and future development design.
The primary governmental constraints and the 6th Cycle Housing Element programs to address them, are shown in Table B-9xx below.s to the development of affordable housing in Carmel-bythe-Sea are summarized below.
Table B-9 Summary of Governmental Constraints
Governmental Constraint Programmatic Action
Lack of Water Resources
The primary infrastructure constraint to the development of housing in Carmel is the lack of potable water.
Program 1.2.A: Water Distribution
Program 4.1.A: Water Conservation
Location in the Coastal Zone
Carmel-by-the-Sea is located in the California Coastal Zone and is therefore subject to a host of regulations that are not present in communities outside the Coastal Zone.
Program 3.1.G: Housing Priority Overlay Zoning District City Design Review and Permit Processing Program 3.1.F: Expedited Processing Procedures Attachment 1
Appendix B – Housing Constraints B-39 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Governmental Constraint Programmatic Action
The historic character of Carmel’s built environment has been shaped by decades of careful and deliberative design review (referred to as “design study” in Carmel) that addresses such features as site design, architectural style, building materials, color palettes, fenestration, tree placement and landscaping.
The City’s design review (design study) process can be lengthy, impacting the City’s ability to provide housing for lower-income households.
Program 1.3.E: Amend A-2 Zoning District.
Program 1.4.B: Objective Design Standards
Program 2.2.A: Historic Preservation Educational Program Program 3.1.G: Housing Priority Overlay Zoning District Program 1.4.A: Eliminate RemoveUnnecessary Use Permits
requirement for multi-family development
Program 1.3.C: Accessory Dwelling Units
Program 1.3.F: Manufactured Homes on a Foundation System Program 3.1.B: Housing for Extremely-Low Income Households Program 3.3.B: Low-Barrier Navigation Centers
City Fees
The City’s design review and permitting process may be financially prohibitive for lower income households and likely most affordable housing projects.
Program 3.1.D: Reduced Entitlement and Development Fees Program 3.1.E: Reduced Parking Requirements
Parking Requirements
Parking is limited within Carmel-by-the-Sea. Off-street parking requirements can be prohibitive to building multi-family and affordable housing.
Program 3.1.E: Reduced Parking Requirements
Commercial Overnight Visitor Accommodation Program 1.3.B: Overnight Visitor Accommodation (Conversion) Development Transfer Rights
Program 1.2.D: Overnight Visitor Accommodation – Employee Housing Program
The City’s development regulations are consistent with California housing law, and the Zoning Code enables does not pose an unnecessary constraint to the development of affordable housing.
However, because housing production has been limited in Carmel-by-the-Sea, primarily due to lack of potable water, the Housing Element Update includes programs to further incentivize development activity. Depending on site-specific conditions - such as the presence of significant trees or historic resources and degree of incompleteness of submitted plans, some applicants may find the City’s design review process to be lengthy. The City’s review fees, while comparable with those of surrounding jurisdictions, can pose a barrier for applicants without sufficient financial resources.
The existing development constraints attributable to governmental (City) processes, and with possible solutions where feasible, are summarized below:
Solutions:
Architectural design is important in Carmel-by-the-Sea. The historic character of Carmel’s built environment has been shaped by decades of careful and deliberative design review (referred to as “design study” in Carmel) that addresses such features as site design, architectural style, building materials, color palettes, fenestration, tree placement and landscaping. This attention to detail has Attachment 1
Appendix B – Housing Constraints B-40 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 resulted in a beautiful, forested village atmosphere that continues to capture the imagination of people from around the world who visit and even choose to make Carmel their home. The same design review process that has contributed to Carmel becoming a world-famous destination, however, has also impacted its ability to provide housing for lower-income households.
The City’s design review (design study) process may be lengthy for projects involving significant trees, historic resources, and/or underdeveloped plans. Following are governmental bodies responsible for decision-making through the course of development review:
Forest and Beach Commission if removal of a significant tree removal is proposed (one hearingif significant tree removal is proposed);
Historic Resources Board for historic properties and also for non-historic properties in the Conservation District (one hearing to ensure development is compatible with neighborhood context);
Planning Commission: One hearing, minimum, for commercial and multi-family residential projects. Preliminary hearing/review for commercial/multi-family is optional but encouraged. Two hearings, minimum (one Concept hearing, one Final hearing) for single-family projects;
City Council review on appeal; and
Coastal Commission review on appeal (Coastal Zone Appeal jurisdiction only).
The City’s design review process may be financially prohibitive for lower income households and likely most affordable housing projects. Carmel does not charge impact fees. Therefore, waiving impact fees are not a viable solution to incentivize affordable units. There is community concern that increasing the existing two-story height limit (24-feet in R1 and 24-30 feet in commercial zones depending on adjacent land uses) would negatively impact the unique character of Carmel.
Solution: Encourage mezzanines as a third story at the building interior (if it can be accomplished without appearing as a three-story building); and Solution: Consider a third story setback as an incentive for fully affordable housing projects.
1. The City does not have an inclusionary housing ordinance, but a density bonus is available via a conditional use permit which may allow up to 44 du/acre as long as the project includes 100% affordable units.
Solution: Consider replacing the use permit requirement at 34+ du/acre currently used as the mechanism to require the construction of affordable housing and instead consider an inclusionary ordinance that encourages special needs housing.
Attachment 1
Appendix B – Housing Constraints B-41 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 The City’s existing residential and commercial design guidelines include both objective and subjective standards.
Solution: Consider developing a set of strictly objective design standards to be used for affordable housing projects.
Many properties are listed on City’s Inventory of Historic Resources, which may limit the scope of possible alterations or additions and use flexibility. Solution: Educate the community about how to appropriately design projects that meet the Secretary of the Interior’s Standards, as required by local/state/federal law. Location in the Coastal Zone
Carmel-by-the-Sea is located in the California Coastal Zone and is therefore subject to a host of regulations that are not present in communities outside the Coastal Zone. The presence of additional land use regulation via the Local Coastal Program, in general, means that housing development in Carmel-by-the-Sea faces a high bar to succeed. The additional hurdles presented by Coastal Zone regulations represent an additional layer of complexity to the City’s already timeconsuming review process.
Conversion of Motels for Multi-Family Housing (Opportunity) The City will explore the development of a program to allow the transfer of development rights of hotels and motels located in the R-1 zoning district to the commercial zoning district. This might allow older motels to convert to multi-family housing and thereby provide a new source of affordable housing in the community.
Multi-Family Housing
Currently, the City allows multi-family housing without a conditional use permit (CUP) at densities up to 22 dwelling units per acre. In order to provide additional incentive to build multi-family housing, the City will amend the Code to remove the CUP for multi-family developments up to 33 du/ac.
B.3 Non-Governmental Constraints
State law (Government Code Section 65583(a)(6)) requires an analysis of potential and actual governmental and non-governmental constraints to the maintenance, improvement, and development of housing for all income levels. The Housing Element must identify ways, if any, to reduce or overcome these constraints in order to meet the City’s housing needs.
Land Availability and Cost
Three primary factors contribute to high land costs on the Monterey Peninsula, and in Carmel-bythe-Sea in particular: 1) the area is considered a desirable place to live, 2) available land is in short Attachment 1
Appendix B – Housing Constraints B-42 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 supply and 3) land costs vary both between and within jurisdictions based on factors such as the desirability of the location and the permitted density. According to the real estate website, Zillow, the typical land value for a single-family home is between $800,000 and $1.2 million in the city of Monterey, but between $1.5 million and $5 million in n a jurisdiction like Carmel-by-the-Sea.
Due to the fact that land availability is limited within Carmel-by-the Sea and the City is largely built out, a number of programs have been created to creatively increase density and affordable housing potential within the City.
Construction Costs
Construction costs associated with housing development are generally comprised of both soft and hard costs. Soft costs for housing development include the cost of architectural, engineering, accounting, legal and other professional services, as well as the cost of obtaining permits and paying government-imposed fees. Carrying costs and the cost of construction financing can also be considered soft costs. Hard costs include the costs of labor and materials and can also include impact fees and costs accumulated through permitting delays.
Hard costs are very high in Carmel-by-the-Sea, and both the high cost of labor and the high cost of materials could be considered constraints on housing development. Hard
construction costs can vary significantly across the City based on the varied and unique geographic conditions throughout the countyCity. Hard costs can be higher than average in Carmelby-the-Sea compared to Monterey County.
Hard and soft costs contribute significantly to the overall cost of developing new housing. High hard costs are difficult for an individual jurisdiction to mitigate.
Availability of Financing
As a stable and affluent community, private housing mortgage financing is readily available in Carmel-by-the-Sea. There are no mortgage-deficient areas in the City and no identifiable underserved groups in need of financing assistance. At the time this Housing Element was drafted, interest rates for homebuyers were increasing from a low of 2.75 percent in 2020 to almost 7 percent in 2023 for a fixed rate, 30-year mortgage. The current economic climate is uncertain and still affected by increasing inflation, the possibility of a recession, geopolitical tensions, businesses rebounding and responding to changes brought on by the COVID-19 pandemic, and ongoing supply chain disruptions; however, there are a number of ways to finance residential development in the City, some of which are outlined below..
We’re going to have to tell marketrate builders they’re going to have to provide more money for our
affordable housing quotient…we
have got to subsidize it...take the
people paying market rate and
say, I’m sorry, if you want to live
here you got to pay to play, and
we put that money towards our
affordable housing quotient and
build something that makes sense
November 17, 2022 Housing Ad Hoc
Committee Community Meeting
Attendee
Attachment 1
Appendix B – Housing Constraints B-43 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023
Banks, Community Development Financial Institutions Fund (CDFIs), and state housing agencies
Banks, Community Development Financial Institutions Fund (CDFIs), and state housing agencies all play a role in providing affordable housing.
Banks are regulated by the Community Reinvestment Act (CRA), which requires them to provide lending and services to all segments of their communities, including low-and moderate-income borrowers. Banks can meet their CRA requirements through a variety of activities, including making loans to affordable housing developers, providing grants to community development organizations, and investing in CDFIs. CDFIs are specialized financial institutions that provide loans, investments, and other financial services to low-income communities and individuals. CDFIs are often more flexible than traditional banks, and they can provide loans to borrowers who may not be able to qualify for financing from other sources.
State housing agencies(SHAs) are government agencies that provide financial assistance for affordable housing development. SHAs can provide loans, grants, and tax credits to developers, and they can also help to promote affordable housing through public education and outreach programs.
Together, banks, CDFIs, and SHAs play a vital role in providing affordable housing. These organizations work to ensure that everyone has access to safe, decent, and affordable housing, regardless of their income. The California Housing Finance Agency (CalHFA) is a SHA that provides financing for affordable housing development in California. These organizations are essential partners in the fight to ensure that everyone has access to safe, decent, and affordable housing.
Housing Credits
Federal
The 4% and 9% LIHTC (Low-Income Housing Tax Credit) are federal tax credits that can be used to finance the construction or rehabilitation of affordable housing. The 4% credit is for the acquisition of existing buildings for rehabilitation and new construction financed by tax-exempt bonds. The 9% credit is generally for new construction and substantial rehabilitation with no federal subsidies. The amount of the credit is equal to 4% or 9% of the project's qualified basis, and it can be used to offset federal income taxes. The credit is claimed over a 10-year period.
The 9% LIHTC is more valuable than the 4% LIHTC, so it is typically used for larger projects. The 9% LIHTC is also more competitive, as there is a limited amount of 9% credits available each year.
Attachment 1
Appendix B – Housing Constraints B-44 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Both the 4% and 9% LIHTCs are important tools for financing affordable housing. They have helped to create millions of affordable housing units across the country.
State
State housing credit is a state-level program that provides tax credits to developers who build or rehabilitate affordable housing. The credits are similar to the federal Low Income Housing Tax Credit (LIHTC), but they are administered by state housing finance agencies (HFAs).
State HFAs allocate tax credits to developers through a competitive process. The credits are then sold to investors, who use them to offset their state income tax liability. The proceeds from the sale of the credits are used to finance the construction or rehabilitation of affordable housing.
State housing credit benefits both developers and low-income households. For developers, the credits provide a valuable source of financing that can help them make affordable housing projects financially feasible. For low-income households, the credits help to keep rents affordable.
Federal Home Loan Bank System
The Federal Home Loan Banks (FHLBs) are 11 regional banks that provide funding to financial institutions in all 50 states and U.S. territories. They were created by Congress in 1932 to help revitalize the housing market during the Great Depression.
FHLBs are cooperatively owned by their member institutions, which include community banks, credit unions, commercial banks, savings institutions, and insurance companies. These member institutions can borrow money from FHLBs at a discounted rate, which helps them to offer lower interest rates on mortgages and other loans to their customers.
In addition to providing funding, FHLBs also offer a variety of other services to their members, such as:
Technical assistance on housing and community development Affordable housing programs
Letters of credit
Mortgage purchase programs
FHLBs play an important role in the U.S. housing market. They help to ensure that there is a steady supply of affordable mortgage credit available to borrowers, and they also support community development efforts.
Attachment 1
Appendix B – Housing Constraints B-45 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Federal Home Loan Bank and Affordable Housing Program
The Federal Home Loan Bank (FHLB) Affordable Housing Program (AHP) is a grant program that provides funding for the creation and preservation of affordable housing. The AHP is funded by a 10% contribution from each FHLB's earnings.
The AHP can be used to finance the following types of affordable housing projects:
Owner-occupied housing: The AHP can be used to finance the purchase, construction, or rehabilitation of owner-occupied housing for low-or moderate-income households. Rental housing: The AHP can be used to finance the purchase, construction, or rehabilitation of rental housing where at least 20% of the units are affordable for and occupied by very low-income households.
Mixed-income housing: The AHP can be used to finance the purchase, construction, or rehabilitation of mixed-income housing where a portion of the units are affordable for lowor moderate-income households.
The AHP is a competitive program, and applications are typically reviewed on a quarterly basis. To be eligible for an AHP grant, a project must meet the following criteria:
The project must be located in a low-or moderate-income census tract. The project must be affordable to low-or moderate-income households. The project must be developed by a qualified project sponsor.
The AHP is a valuable resource for developers of affordable housing. The program provides muchneeded funding for the creation and preservation of affordable housing, and it helps to ensure that low-and moderate-income households have access to safe and affordable housing.
Housing First
Supportive housing is a type of housing that provides permanent, affordable housing with on-site supportive services to help people who are homeless or at risk of homelessness. The supportive services can vary depending on the needs of the individual or family, but they may include case management, mental health services, substance abuse treatment, job training, and education.
There are a variety of supportive housing subsidy programs available in the United States. Some of the most common programs include:
Housing Choice Vouchers (HCVs): HCVs are a federal program that provides rental assistance to low-income households. HCVs can be used to rent apartments on the private market, and they can also be used to pay for supportive housing.
Attachment 1
Appendix B – Housing Constraints B-46 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Veterans Affairs Supportive Housing (VASH): VASH is a federal program that provides rental assistance and case management services to homeless veterans. Rapid Re-housing: Rapid Re-housing is a short-term program that provides rental assistance and case management services to help people who are homeless quickly find and maintain housing.
The Housing First approach to homelessness is a philosophy that emphasizes providing permanent housing to people who are homeless, regardless of their other needs. The Housing First approach has been shown to be effective in reducing homelessness and improving the lives of people who are homeless.
The supportive housing subsidy system in the United States is a complex system, but it is an important part of the Housing First approach to homelessness. The subsidy programs help to make supportive housing affordable for people who are homeless, and they help to ensure that people who are homeless have access to the supportive services they need to succeed.
The current economic climate is uncertain and still affected by increasing inflation, the possibility of a recession, geopolitical tensions, businesses rebounding and responding to changes brought on by the COVID-19 pandemic, and ongoing supply chain disruptions.
Requests to Develop at Densities Below Those Permitted
New State Housing Element law now requires the non-governmental constraints analysis to evaluate developer requests to build at densities below the density identified in the Housing Element sites inventory. Carmel-by-the-Sea does not receive requests to develop below densities and this is not a constraint to development.
Small Lots and Large Units
Property within Carmel-by-the-Sea is typically smaller than a half-acre, which can be a constraint for housing production. Lot consolidation incentivization incentives may be a solution. Large multifamily units have become commonplace with recent housing proposals. Large units reduce the number of multi-family units overall, which decreases the housing variety available, and increases the number of luxury expensive expensive luxury housing options. A minimum density requirement is being considered proposed within the Housing Priority Overlay Zoninge dDistrict for sites included with the Sites Inventory in the Central Commercial (CC), Service Commercial (SC), Residential and Limited Commercial (RC), and R-4 District.
Seasonal Vacancies
Carmel-by-the-Sea has a 50% vacancy rate of which 80% is attributed to seasonal vacancies, given the community’s strong tourism industry. Second homeowners seeking seasonal homes skews the demand for housing, driving up rents and home prices and making it challenging for those working Attachment 1
Appendix B – Housing Constraints B-47 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 in Carmel-by-the-Sea employees to find available housing and driving up rents and home prices.
Rising housing prices decrease the stock of housing affordable to those living or working in and around Carmel-by-the-Sea residents, further spurring the statewide housing shortage. Programs to address this issue are included incorporated in the 6th cycle Housing Element and includinge encouraging Accessory Dwelling Units and the establishmenting of an Affordable Housing Trust Fund which could be funded in part by a vacancy tax.
Length of Time between Application Approval and Building Permit Issuance
New Housing Element law now also requires an examination of the length of time between receiving approval for a housing development and submittal of an application for building permits.
The time between application approval and building permit issuance is influenced by a number of factors, none of which are directly impacted by the City. Factors that may impact the timing of building permit issuance include: required technical or engineering studies; completion of construction drawings and detailed site and landscape design; securing construction and permanent financing; and retention of a building contractor and subcontractors. Generally, building permits are submitted in a timely manner after planning entitlements; however larger projects have experienced longer timeframes given supply chain issues and labor shortages, neither of which the City controls.
Environmental Justice Element Requirement
An Environmental Justice Element or equivalent is not required for Carmel-by-the-Sea because no disadvantaged communities exist within the city’s boundaries (as defined in Gov. Code, § 65302, (h)(4)(A)). “Disadvantaged communities” means an area identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code or an area that is a lowincome area that is disproportionately affected by environmental pollution and other hazards that can lead to negative health effects, exposure, or environmental degradation.
Environmental Constraints
Environmental constraints affecting housing include geologic and seismic conditions and fire hazards, which are a threat to the built environment. These constraints are discussed in detail below.
However, the primary environmental constraint to the development of housing in Carmel-by-theSea is the limited water supply, as already discussed above.
Fire Hazards
Carmel-by-the-Sea is often referred to as a “Village in the Forest,” due to its extensive urban forest.
The high density of structures within the Carmel residential areas and business district among numerous trees increases the fire hazard. In addition, the Pescadero Canyon, Del Monte Forest, and Mission Trails Park Nature Preserve, , located adjacent to the City, introduces the possibility of a wildland fire. The currently adopted (October 2008) California Department of Forestry and Fire Attachment 1
Appendix B – Housing Constraints B-48 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Protection (CAL FIRE) Very High Fire Hazard Severity Zones in Local Responsibility Areas (LRA) map for Carmel-by-the-Sea identifies a large area encompassing northern and eastern portions of the City as a Very High Fire Hazard Severity Zone. In such zones, roofs and exterior walls of new buildings must be made of noncombustible materials. It should be noted that all LRA maps across the state of California are undergoing updates and according to CAL FIRE are anticipated to be released sometime in 2024.
Obtaining insurance for structures is increasingly difficult given the Very High Fire Hazard Severity Zone, which posesing a constraint to residential development.
The City of Carmel-by-the-Sea is part of a regional coordination effort with other Monterey County cities, including Pacific Grove and Monterey. These neighboring agencies provide aid to each other on an as-needed basis. Fire protection for the City is provided by the City of Monterey Fire Department based out of the Carmel Fire Station located on 6th Avenue.
Emergency and Evacuation Planning
Emergency response is provided through coordinated efforts by the cities of Monterey, Pacific Grove, and Carmel. Emergency planning and evacuation pose many challenges for the City due to the precarious topography and narrow City roads. The General Plan Safety Element (both the currently adopted version and the updated Safety Element being prepared in conjunction with the 6th Cycle Housing Element) provides an in-depth analysis of emergency and evacuation planning and protocols, as well as scenario mapping and evacuation route mapping. City staff generally note that particularly in Carmel, where small lots make meeting egress requirements difficult at higher densities, incentivizing lot mergers in the commercial district will help address concerns and challenges associated with emergency and evacuation planning across the City.
Seismic
The entire California Coast and Coast Range area is prone to earthquakes. Based on history, the probability of a moderate or high magnitude earthquake occurring in the greater Monterey region in the next few decades is quite likely. Faults that could present hazards to Carmel-by-the-Sea during an earthquake event include the following active or potentially active faults: San Andreas, San GregorioPalo Colorado, Chupines, Navy, and Cypress Point. The San Andreas and San Gregorio faults are two dominant faults within the Monterey County region that are considered active with evidence of historic or recent movement.
While the seismic hazards cannot be eliminated, there are a number of regulations that reduce the impact of these hazards. The Alquist-Priolo Earthquake Fault Zoning Act was passed in 1972 to mitigate the hazard of surface faulting to structures for human occupancy, by preventing the construction of buildings used for human occupancy on the surface trace of active faults. The California Building Code includes provisions associated with engineering design and building Attachment 1
Appendix B – Housing Constraints B-49 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 requirements that address seismic hazards. In addition, the City of Carmel-by-the-Sea General Plan includes policies addressing hazards from seismic activity.
Tsunami
The City would be minimally affected by a moderate to extreme tsunami event. This can be accredited to coastal topography along Carmel’s western boundary. The steep cliff, or a step-down in elevation between the Scenic Road and the beach, acts as a protective boundary during a tsunami event. However, low lying portions of Carmel-by-the-Sea are susceptible to inundation from tsunami, known as waves produced from a seismic event. Only the southern-most portion of the City and the low-lying Carmel Lagoon neighborhood (within unincorporated Monterey County) could be impacted if a 21-foot-high tsunami wave were to enter the Carmel River lagoon. Impacts from tsunami could include damage to improvements from wave inundation and from wave-carried debris.
Tsunami is a potential safety hazard as well as a hazard to property. The actual areas that will be impacted from a tsunami will vary depending on factors such as the size of the tsunami wave, tide level at the time of the tsunami, the wave source location and the wave direction. In general, areas adjacent to the shoreline that are below an elevation of approximately 15 to 20 feet above mean sea level appear to have a higher level of risk.
Flooding
Carmel is located on a sloping terrain that offers good storm water runoff into both the Pacific Ocean and the Carmel River. Only a small portion of the City’s southern tip is designated as a FEMA 100- year Flood Zone. Carmel Beach is subject to flooding during high tide and beach sand is lost yearly during winter storms. The beach is clearly separated from adjacent roads and houses by a moderately steep hill. Due to that topographical feature, the coastal flooding rarely extends past the beach. There are several areas of the City, which have been identified in the City’s general plan as being prone to localized flooding. The main area subject to localized flooding is located within the Mission Trail Nature Preserve. The Mission Trail site is owned by the City and used as a park, and the City recently approved a CDP to correct flooding issues within Mission Trails Nature Preserve.
This use mitigates some of the damage that would normally result from the retention of water on the site and the City recently approved a Coastal Development permit to correct some flooding issues in this area.
The City’s General Plan includes a Safety Element with policies and programs which address flooding (see policies P8-27 through P8-31). The Safety Element Update will also include and update where necessary the City’s policies and programs related to flooding. The City’s mMunicipal cCode (Chapter 15.56 Community Floodplain) further addresses flood risks and hazards found in the City as well as identifying methods for reducing flood losses. In order to accomplish its purposes, this chapter of the municipal code includes regulations to:
Attachment 1
Appendix B – Housing Constraints B-50 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 1) Restrict or prohibit uses which are dangerous to health, safety, and property due to water or erosion hazards, or which result in damaging increases in erosion or flood heights or velocities; 2) Require that uses vulnerable to floods, including facilities which serve such uses, be protected against flood damage at the time of initial construction; 3) Control the alteration of natural floodplains, stream channels, and natural protective barriers, which help accommodate or channel floodwaters;
4) Control filling, grading, dredging, and other development which may increase flood damage; and 5) Prevent or regulate the construction of flood barriers which will unnaturally divert floodwaters or which may increase flood hazards in other areas. (Ord. 2018-03 § 1 (Exh. A § 4), 2018).
Coastal Erosion and Landslides
Erosion on sloped inland areas and at the shoreline (beach) has been a problem for much of Monterey County, including Carmel. The hazards due to erosion are difficult to separate from those due to flooding and landsliding. In some cases, erosion is a result of flood and landslide conditions; in others, rapid water runoff and landsliding can occur in areas subject to prolonged erosion. The preventive costs of erosion are generally included within flood control measures and the overall costs of hillside development. Adoption of the present state of the art procedures for erosion prevention in hillside areas will, in most cases, eliminate losses.
Losses due to coastal erosion can be reduced most economically by avoiding construction in areas subject to severe erosion. Erosion of the beach bluffs is addressed in the City's Shoreline Management and Emergency Operations plans.
Summary of Non-Governmental Constraints
In summary, while Carmel-by-the-Sea is subject to the environmental constraints described above, the City’s General Plan sets forth a series of actions to minimize these constraints. Carmel-by-theSea incorporates this information into its land use planning and development review processes. In an effort to continue to reduce constraints to housing development, the Housing Element Update includes specific policies and programs in Chapter 2 to reduce or eliminate non-governmental constraints to the extent feasible and practical.
The primary non-governmental constraints and the 6th Cycle Housing Element programs to address them are shown in Table B-9 below:
Table B-9: Summary of Non-Governmental Constraints
Attachment 1
Appendix B – Housing Constraints B-51 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Non-Governmental Constraint Programmatic Action
Land Availability and Cost
Carmel-by-the-Sea’s limited availability of land coupled with its desirable coastal location and world-renowned architecture has resulted in high cost of land and a lack of affordable housing.
Some of the primary factors that have contributed to high land costs in Carmel-by-the-Sea are its, and limited availably of land.
Program 3.1.A: Mixed Use Affordable Housing
Program 3.1.B: Overnight Visitor Accommodation (Conversion) Transfer of Development Rights.
Program 1.1.C: Development on Small Sites
Program 3.1.C: Density Bonus
Construction Costs
Costs of labor and materials are very high in Carmel-by-the-Sea and could be considered constraints on housing development.
Program 3.1.C: Density Bonus
Availability of Financing Program 2.1.D: Establish Affordable Housing Trust Fund Program 5.1.C: Shared Housing Information
Program 5.1.B: Housing Choice Voucher Program
Program 5.2.A: Support Community Organizations
Small Lots and Large Units Program 3.1.G: Housing Priority Overlay Zoning District Seasonal Vacancies Program 2.1.D: Establish Affordable Housing Trust Fund Attachment 1
Appendix B – Housing Constraints B-52 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 This side intentionally left blank.
Attachment 1
Vacant and Available Sites C
APPENDIX
Attachment 1
Attachment 1
Table of Contents
APPENDIX C HOUSING SITES INVENTORY ANALYSIS ........................................................ 1 C.1 Introduction ............................................................................................................................... 1 C.2 Regional Housing Needs Allocation....................................................................................... 1 C.3 Sites Inventory ........................................................................................................................... 3 D.4 AFFH Sites Analysis ............................................................................................................... 64 D.5 Conclusion................................................................................................................................ 71 APPENDIX C HOUSING SITES INVENTORY ANALYSIS ........................................................ 1 C.1 Introduction ............................................................................................................................... 1 C.2 Regional Housing Needs Allocation ....................................................................................... 1 C.3 Sites Inventory ........................................................................................................................... 3 D.4 AFFH Sites Analysis ............................................................................................................... 35 D.5 Conclusion ................................................................................................................................ 40 Tables
Table C-1 Carmel-by-the-Sea’s Regional Housing Needs Allocation – 2023–2031...............2 Table C-2 Carmel-by-the-Sea’s Adjusted RHNA........................................................................2 Table C-3 Housing Sites Inventory .............................................................................................58 Table C-4 AFFH Indicators Analysis Overview........................................................................65 Table C-5 Existing Overnight Visitor Accommodation Locations........................................73 Table C-1 Carmel-by-the-Sea’s Regional Housing Needs Allocation – 2023–2031............... 2 Table C-2 Carmel-by-the-Sea’s Adjusted RHNA ........................................................................ 2 Table C-3 Housing Sites Inventory .............................................................................................29 Figures
Figure C-1 Potential Sites Inventory Map (insert map) ...............................................................5 Attachment 1
Figure C-2 Sunset Center Lots Site (Site #1) ................................................................................9 Figure C-3 Sunset Center South Lot (Site #2)............................................................................10 Figure C-4 Ulrika Plaza Site (Site #3)...........................................................................................11 Figure C-5 City Public Works (Vista Lobos) Site (Site #4).......................................................12 Figure C-6 Bruno’s Market Site (Site #5) ....................................................................................15 Figure C-7 First Church of Christ Parking Lot Site (Site #6)...................................................18 Figure C-8 Red Cross Site (Site #7)..............................................................................................19 Figure C-9 JB Pastor Site (Site #8) ...............................................................................................21 Figure C-10 Girl Boy Girl Site (Site #9) ........................................................................................26 Figure C-11 Carmel Foundation Site (Site #10) ...........................................................................27 Figure C-12 American Legion Site (Site #11) ...............................................................................28 Figure C-13 AT&T Building Site (Site #12)..................................................................................32 Figure C-14 Carmel Resort Inn Site (Site #13).............................................................................33 Figure C-15 Forest Cottages Specific Plan (Site #14)..................................................................34 Figure C-16 NW Corner Mission & 7th Site (Site #15) ..............................................................35 Figure C-17 7th 2 SW of Mission Site (Site #16)...........................................................................36 Figure C-18 NE Corner Monte Verde & 7th Site (Site #17) .......................................................37 Figure C-19 Yafa Building Site (Site #18)......................................................................................38 Figure C-20 Three Garages Site (Site #19)....................................................................................41 Figure C-21 Carmel Realty Office Site (Site #20).........................................................................42 Figure C-22 Chase Bank Site (Site #21)....................................Error! Bookmark not defined.
Figure C-23 Olivier Site (Site #22).............................................Error! Bookmark not defined.
Figure C-24 Parashis Building Site (Site #23) ..............................................................................44 Figure C-25 The Agency Site (Site #24).........................................................................................45 Figure C-26 Faherty’s Site (Site #25).........................................Error! Bookmark not defined.
Figure C-27 Star Child Site (Site #26) .......................................Error! Bookmark not defined.
Figure C-28 Sunset Terrace Site (Site #27)....................................................................................46 Attachment 1
Figure C-29 Bell Tower Court Site (Site #28)..........................Error! Bookmark not defined.
Figure C-30 Enzo’s Site (Site #29)..................................................................................................47 Figure C-31 Doud Arcade Site (Site #30)......................................................................................48 Figure C-32 Paseo San Carlos Square Site (Site #31)...................................................................49 Figure C-33 Paseo San Carlos Square Site 2(Site #32)................................................................. 50 Figure C-34 Carmel Office Supply & Business Center (Site #33) .............................................51 Figure C-36 Anticipated Development Types...............................................................................53 Figure C-37 • Sites Inventory and Zoning .....................................................................................56 Figure C-38 AFFH Sites Analysis: Cost Burdened Home Owners............................................69 Figure C-39 Sites and Carmel-by-the-Sea Median Income..........................................................70 Figure C-1 Potential Sites Inventory Map...................................................................................... 4 Figure C-2 Sunset Center Lots Site (Site #1) ................................................................................ 6 Figure C-3 Ulrika Plaza Site (Site #2)............................................................................................. 7 Figure C-4 City Public Works (Vista Lobos) Site (Site #3)......................................................... 8 Figure C-5 Carmel Realty Office Site (Site #4)............................................................................. 9 Figure C-6 Pine Inn Parking Lot Site (Site #5)...........................................................................10 Figure C-7 Bruno’s Market Site (Site #6).....................................................................................11 Figure C-8 Three Garages Site (Site #7)......................................................................................12 Figure C-9 First Church of Christ Parking Lot Site (Site #8)...................................................13 Figure C-10 Red Cross Site (Site #9)..............................................................................................14 Figure C-11 Café Carmel Site (Site #10)........................................................................................15 Figure C-12 Wells Fargo Site (Site #11).........................................................................................16 Figure C-13 Esperanza 7th and Dolores Site (Site #12)..............................................................17 Figure C-14 7th and Mission Site (Site #13)..................................................................................18 Figure C-15 Carmel Foundation Site (Site #14)............................................................................19 Figure C-16 Carmel Presbyterian Site (Site #15) ..........................................................................20 Figure C-17 5th and Juniper Site (Site #16)...................................................................................21 Attachment 1
Figure C-18 American Legion Site (Site #17) ...............................................................................22 Figure C-19 NW Corner Mission & 7th Site (Site #18) ..............................................................23 Figure C-20 7th 2 SW of Mission Site (Site #19)..........................................................................24 Figure C-21 NE Corner Monte Verde & 7th Site (Site #20)......................................................25 Figure C-22 Carmel Resort Inn Site (Site #21).............................................................................26 Attachment 1
Appendix C – Housing Sites Inventory Analysis C-1 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Appendix C
Housing Sites Inventory Analysis
C.1 Introduction
The Association of Monterey Bay Area Governments’ (AMBAG) forecasts that the two-county (Monterey and Santa Cruz) Monterey Bay Area will add 32,867 new households between 2020 and 20451. For the eight-year time frame covered by this 6th Cycle Housing Element Update, the State Department of Housing and Community Development (HCD) has identified the region’s housing need as 33,274 units. The total number of housing units assigned by HCD is separated into four income categories that cover housing types for all income levels, from very low-income households to above-moderate (market rate) housing. This calculation, known as the Regional Housing Needs Allocation (RHNA), is based on population projections produced by the California Department of Finance (DOF) as well as adjustments that incorporate the region’s existing housing need. The adjustments result from recent legislation requiring HCD to apply additional adjustment factors to the baseline growth projection from the California Department of Finance, in order for the regions to get closer to healthy housing markets. To this end, adjustments focus on the region’s vacancy rate, level of overcrowding and the share of cost burdened households, and seek to bring the region more in line with comparable ones. These new laws governing the methodology for how HCD calculates the RHNA resulted in a significantly higher number of housing units for which the Monterey Bay Area must plan compared to previous cycles.
C.2 Regional Housing Needs Allocation
AMBAG adopted its Final 6th Cycle Regional Housing Needs Allocation Plan 2023-2031 in on October 12, 2022. The plan was approved by HCD on November 8, 2022. For Carmel-by-the-Sea, the proposed RHNA to be planned for this cycle is 349 units. Details are provided below.
RHNA Summary
Carmel-by-the-Sea’s share of the regional housing need for the eight-year period from 2023 to 2031 is 349 units, which is a 1,125 percent increase over the 31 units required by the 2014 to 2023 RHNA.
The housing need is divided into the four income categories of housing affordability. Table C-1 shows Carmel-by-the-Sea’s RHNA for the planning period 2023 – 2031. 1 Final 2022 Regional Growth Forecast, AMBAG, November 18, 2020 Attachment 1
Appendix C – Housing Sites Inventory Analysis C-2 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Table C-1 Carmel-by-the-Sea’s Regional Housing Needs Allocation – 2023–2031 Income Group
Carmelby-theSea Units
Percent Monterey
County Units Percent
Monterey
Bay Area
Units
Percent
Extremely Low Income
(<30% of AMI) 57 16.3% 2,.206 10.9% 3,934 11.8%
Very Low Income
(30% - 50% of AMI) 56 16.0% 2,206 10.9% 3,934 11.8%
Low Income (50%-
80% of AMI) 74 21.2% 2,883 14.2% 5,146 15.5%
Moderate Income
(80%-120% of AMI) 44 12.6% 4,028 19.8% 6,167 18.5%
Above Moderate
Income
(>120% of AMI)
118 33.9% 8,972 44.2% 14,093 42.4%
Total 349 100.0% 20,295 100.0% 33,274 100.0%
SOURCE: AMBAG 2021
NOTE: The Association of Monterey Bay Area Governments (AMBAG) Executive Board adopted the 2023-2031 Regional Housing Needs Allocation Plan (RHNA) on October 12, 2022 (Resolution No. 2022-24). The plan was approved by the California Housing and Community Development on November 8, 2022.
Progress to Date
The RHNA planning period for the 2023-2031 Housing Element (6th Cycle) is June 30, 2023 through December 15, 2031. The statutory adoption date for the 6th Cycle Housing Element is December 3115, 2023—a full six months after the beginning of the planning period. To account for this discrepancy, the City of Carmel-by-the-Sea must account for the number of housing units permitted prior to adoption of the 6th Cycle Housing Element and apply these to the 2023-2031 RHNA. Accordingly, the units permitted in this period count toward the 2023-2031 planning period RHNA and are subtracted from the 6th Cycle RHNA. Table C-2 shows the City of Carmel-by-theSea’s adjusted RHNA, which accounts for progress made prior to the adoption of the updated Housing Element document.
Table C-2 Carmel-by-the-Sea’s Adjusted RHNA
Very LowIncome
Units
LowIncome
Units
ModerateIncome
Units
Above
ModerateIncome Units
Total
Units
2023–2031 RHNA 113 74 44 118 349
Units permitted between June 30,
2023 and December 31, 2023
TBD TBD TBD TBD TBD
Remaining RHNA
SOURCE: City of Carmel-by-the-Sea, Community Planning & Building Department Attachment 1
Appendix C – Housing Sites Inventory Analysis C-3 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 C.3 Sites Inventory
The purpose of the sites inventory is to identify and analyze specific sites that are available and suitable for residential development from 2023-2031 in order to accommodate Carmel-by-the-Sea’s assigned 349 housing units. The City doeisn’t responsible for building the housing but creates the programs and policies to plan for where it should go and how many units could be on potential sites.
Overview of Selected Sites
This section provides information on the current list of potential sites under consideration for determining how the City will accommodate the State’s required minimum of 349 housing units.
Figure C-1 shows an overview of the potential sites inventory map that has been developed for Carmel-by-the-Sea’s 6th Cycle Housing Element Update.
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-4 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Attachment 1
Appendix C – Housing Sites Inventory Analysis C-5 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Figure C-1 Potential Sites Inventory Map (insert map)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-6 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Key Housing Opportunities
This section provides details on vacant and underutilized sites that are available for housing development in the city. The City has identified 35 sites capable of accommodating 283 housing units. In addition, the City has developed a program of new incentives for 46 hotel owners in the community to house provide on-site housing for lower-income hospitality employees in existing hotel rooms. Finally, the City has an active accessory dwelling unit program that is capable of providing additional lower-income housing. Altogether, these housing resources have the potential to accommodate approximately 115 percent of Carmel’s RHNA. Each of these opportunities is discussed in more detail below.
The City’s estimate of the number of housing units that can realistically be developed on key housing opportunity sites is considered conservative. What has been omitted fromBeyond what is included with this list are 43 vacant single-family sites, zoned R-1 capable of accommodating 43 market-rate housing units, all of which were previously identified in Carmel’s 5th Cycle Housing Element. These sites will act as an additional buffer of potential housing unit capacity.
Primary Underutilized Sites
The City has identified 21 underutilized sites capable of accommodating 248 lower-income and market-rate housing units. Eight of the total 21 primary underutilized sites were identified in the 5th Cycle Housing Element, all of which were identified at the time as having the highest probability of developing should adequate water resources become available during the planning period. Achieving this level of construction on the sites identified as primary underutilized sites would be dependent on a number of factors, including an adequate water supply, market conditions, construction costs, etc.and not the least of which would be Carmel’s discretionary development review process. The City has recognized that certain factors are beyond its control, however the permit review process can be improved. Therefore, new programs have been included this these factors and has included a new programs in this 6th Cycle Housing Element update to permit redevelopment of all of underutilized sites identified herein. Examples include removing without the need for a conditional use permit (i.e., “by right”) and establishing a minimum density for multi-family housing. While significant hurdles remain—construction costs, design review, etc.—this new program removes the single greatest one obstacle to achieving the City’s housing objectives for these underutilized sites.
The capacity estimate for these primary underutilized sites is supported, in part, by a recent 2023 housing feasibility study undertaken by the City in preparation for the City’s 6th Cycle Housing Element update.2
This study provided an in-depth analysis of the redevelopment potential for the first 16 primary underutilized sites (the January 2023 feasibility study is attached in its entirety as Appendix F).
2 ECO Northwest, January 27, 2023. “Housing Element Analysis for the City of Carmel by-the-Sea.” Attachment 1
Appendix C – Housing Sites Inventory Analysis C-7 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 A one-page description of each primary underutilized site, including a photograph of the site, is presented in the following section. The information provided for sites 1 through 16 has been excerpted directly from the 2023 feasibility study.
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-8 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #1: Sunset Center Lots North & South Lots Site
Location: East Side of San Carlos between 8th & 10th Avenues (APN: 010-143-001) Number of Housing Units: 33
Description: The north lot at Sunset Center is a large
(1.02 acre) parking lot with no improvements other
than paving. The south lot is 1.84XX acres. Both sites
are It is a City-owned site. The City has expressed
interest in redevelopment of the parking lots
redeveloping the site for housing so long as parking
needs for Sunset Center could be accommodated in
the development program. A design competition
could be one way a program to incentivize entice local
architects to partner with non-profit affordable
housing developers.
The south parking lot could also be a viable housing
development site. Figure C-2 shows a photograph of
the north parking lot at the North Sunset Center Lots
Site.
“I live near the Ssunset
Center. I would love to
see that made into a
usable space, and will
completely support your
efforts to do that. So, go
for it. Have courage and
get this work done.”
May 24, 2023 Housing Ad Hoc
Committee Community
Meeting Attendee
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-9 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Figure C-22 Sunset Center Lots Site (Site #1)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-10 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #2: Sunset Center South Lot Site
Location: East Side of San Carlos between 8th & 10th Avenues (APN: 010-143-001) Number of Housing Units: 33
Description: The north lot at Sunset Center is a large
(1.02 acre) parking lot with no improvements other
than paving. The south lot is 1.84XX acres. Both sites
are City-owned. The City has expressed interest in
redevelopment of the parking lots so long as parking
needs for Sunset Center could be accommodated in
the development program. A design competition
could be one way to entice local architects to partner
with non-profit affordable housing developers.
Figure C-2 shows a photograph of the north parking
lot at the Sunset Center.
Figure C-3 Sunset Center South Lot (Site #2)
[Photo to be inserted prior to HCD submittal]
“I live near the Sunset
Center. I would love to
see that made into a
usable space, and will
completely support your
efforts to do that. So, go
for it. Have courage and
get this work done.”
May 24, 2023 Housing Ad Hoc
Committee Community
Meeting Attendee
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-11 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #3: Ulrika Plaza Site
Location: Southwest Corner of Dolores Street & 5th Avenue (APN: 010-138-003, -021) Number of Housing Units: 12
Description: The 0.37-acre Ulrika Plaza site, was previously entitled as a mixed-use building.
The initial developer lost the project for financial reasons and it was acquired by another developer. This developer has been working to getis in the process of obtaining entitlements for a new mixed-use development program that includes for 12 market-rate apartment units approved on the site for several years. The site is a case study of a development not building to maximum density, and not including affordable units.
Figure C-4Figure C-3 Ulrika Plaza Site (Site #2) Ulrika Plaza Site (Site #3) Attachment 1
Appendix C – Housing Sites Inventory Analysis C-12 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #34: City Public Works (Vista Lobos) Site
Location: West Side of Torres Street between 4th & 5th Avenues (APN: 010-104-001, -004) Number of Housing Units: 42
Description: This is a City-owned site totaling 1.28 acres at the northeast end of the study areacommercial district. The site is a large parking lot with low value improvement used for public parking. The City has expressed interest in using the site for housing if feasible. Potential height restrictions due to a protected viewshed to Point Lobos (see CMC 17.12.050) could limit achievable density and feasibility, though opportunities exist to cut into the slope at street grade.
Figure C-4Figure C-5 City Public Works (Vista Lobos) Site (Site #34) Attachment 1
Appendix C – Housing Sites Inventory Analysis C-13 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #4: Carmel Realty Office Site
Location: Northeast Corner of Dolores Street & 8th Avenue (APN: 010-145-008) Number of Housing Units: 46
Description: This site is a 0.18-acre corner-lot parcel that is currently owned and used for office space by Carmel Realty. It has low lot coverage and scores well with a land-to-improvement ratio. It is a single-story structure that is surrounded on all sides by structures to the north and east that are at least two stories tall. The site was previously used in the RHNA 5 inventory.
Figure C-5 Carmel Realty Office Site (Site #4)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-14 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #5: Pine Inn Parking Lot Site
Number of Housing Units: 56
Description: This 0.18-acre site is the parking lot for the Pine Inn. The site is not attached or adjacent to the inn, it is a separate parcel across the street. As driving patterns and parking needs change, this site could be a future candidate for redevelopment. Redevelopment of the site would require a zone change
Figure C-6 Pine Inn Parking Lot Site (Site #5)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-15 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #65: Bruno’s Market Site
Location: North Side of 6th Avenue between Junipero Avenue and Torres Street (APN:
010-095-012, -013)
Number of Housing Units: 17
Description: This site is two adjacent parcels totaling over 0.53 acres under the same ownership. The site includes a parking lot that leads to low lot coverage. It also scores in the top tier for land-to-improvement ratio. It could be a potential redevelopment candidate.
Figure C-7Figure C-6 Bruno’s Market Site (Site #65)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-16 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #7: Three Garages Site
Location: Junipero Avenue 3, 4 & 5 Northwest of 6th Avenue (APN: 010-098-004, -005, - 006)
Number of Housing Units: 711
Description: This site would be an assemblage of three equal- sized parcels totaling 0.33 acres.
Two of the parcels are under the same ownership, and one was previously used in the RHNA 5 inventory. Existing uses include a site with parking and three attached garages, and a commercial building used for real estate sales. Combined, the site scores in the top tier for land-toimprovement ratio and in the mid-tier for value per square foot.
Figure C-8 Three Garages Site (Site #7)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-17 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Attachment 1
Appendix C – Housing Sites Inventory Analysis C-18 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #86: First Church of Christ Parking Lot Site
Location: Lincoln Street 2 Northwest of 6th Avenue (APN: 010-212-026, -027, -004) Number of Housing Units: 9
Description: This site is a parking lot used by the First Church of Christ. It is three separate tax lots totaling 0.28 acres. Assessor’s records have missing values for ownership on the two southern parcels but given its existing use we assume that all three parcels are owned by the Church. In 2020, the State of California passed AB 1851, commonly referred to as the “yes in God’s backyard” bill. This bill makes it easier for religious institutions to convert excess parking to affordable housing by prohibiting a local agency from requiring the replacement of religioususe parking spaces that a developer of a religious institution affiliated housing development project proposes to eliminate as part of that housing development project. Because the current owner is a mission-driven organization, it’s possible they may subsidize affordable housing construction and management. The City intends to implement SB-10 for this site (see Program
1.3.I in Chapter 2).Redevelopment of the structures on the site would require a zone change.
Figure C-7Figure C-9 First Church of Christ Parking Lot Site (Site #86) Attachment 1
Appendix C – Housing Sites Inventory Analysis C-19 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #97: Red Cross Site
Location: Southeast Corner of Dolores Street & 8th Avenue (APN: 010-144-015, -016) Number of Housing Units: 56
Description: This site includes two adjacent parcels owned and used by the American Red Cross. Collectively the site is 0.18 acres. Because the site is owned by a nonprofit organization it does not have Assessor’s values to calculate redevelopment metrics. However, site inspection confirms a low intensity use. Because the current owner is a mission-driven organization, it’s possible they may be a willing partner if they can find an alternative for their current operations.
It’s possible that this site could be combined with the American Legion site (#11) to yield a larger affordable housing project. Because the current owner is a mission-driven organization, it’s possible they may be a willing partner if they can find an alternative for their current operations. The City intends to implement SB-10 for this site (see Program 1.3.I in Chapter 2).Redevelopment of this site would require a zone change Figure C-810 Red Cross Site (Site #97)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-20 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #10: Café Carmel Site
Number of Housing Units: 35
Description: All single-story downtown buildings can be explored as opportunities for densification. Site orientation, existing and surrounding uses, and access are contributing factors to feasibility. The Café Carmel site pictured is one example of a single-story commercial property with a two-story building on either side; there are dozens of similar one-story buildings throughout the downtown with at least one adjacent two-story building. The Café Carmel site specifically scores in the top tier for land-to-improvement ratio and has a land value around $100 per-square-foot. The site was previously used in the RHNA 5 inventory.
Figure C-11 Café Carmel Site (Site #10)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-21 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #8: JB Pastor Building
Location: Southeast Corner of Dolores Street & 8th Avenue (APN: 010-145-012, -023, -024) Number of Housing Units: 8
Description: This site includes three adjacent parcels in single-ownership (Esperanza Carmel).
Collectively the site is 0.27 acres. Esperanza has presented a development proposal on the site for eight (8) market-rate apartment units.
Figure C-9 JB Pastor Site (Site #8)
Site #11: Wells Fargo Site
Number of Housing Units: 811
Description: This site is two adjacent parcels (combined, 0.38 acres) comprised of the existing Wells Fargo building and associated parking lot. Combined the site is 0.38 acres. The site was identified as a candidate site in the RHNA 5 Housing Element inventory. It scores in the top tier for land-to-improvement ratio. It is owned by an institutional entity (Wells Fargo). However, conversations with City staff indicate that it could be a candidate for inclusion as a historic property which would complicate redevelopment.
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-22 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Figure C-12 Wells Fargo Site (Site #11)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-23 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Attachment 1
Appendix C – Housing Sites Inventory Analysis C-24 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #12: Esperanza 7th and Dolores Site
Location: Dolores Street 5 Northeast of 8th Avenue (APN: 010-145-012, -020) Number of Housing Units: 158
Description: This site is three adjacent parcels owned by Esperanza Carmelunder single ownership. The site totals roughly 0.30 acres. Esperanza There is a pending has a development proposal on the site for eight (8) market-rate apartment units.
Figure C-13 Esperanza 7th and Dolores Site (Site #12)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-25 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #13: 7th and Mission Site
Location: Southwest Corner of 7th Avenue and Mission Street (APN: 010-142-001) Number of Housing Units: 56
Description: This 0.18-acre site currently accommodates a two-story mixed use building with a clothing boutique on the ground floor and residential above in a single-story commercial building. Half of the site is comprised of a parking lot, which leads to low lot coverage and a land-to-improvement ratio above 1.5. However, it’s The current value per-square-foot is high at nearly $500 per-square-foot, making acquisition of the property less likely. However, Hhalf of the site is comprised of a parking lot, which leads to low lot coverage and a land-toimprovement ratio above 1.5. Most importantly, the current property owner has expressed interest in redeveloping the parking lot.
Figure C-14 7th and Mission Site (Site #13)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-26 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #9: Girl Boy Girl
Location: Southwest Corner of Mission & 7th Avenue (APN: 010-420-010) Number of Housing Units: 5
Description: This 0.18-acre site currently accommodates a clothing boutique in a single-story commercial building. Half of the site is comprised of a parking lot, which leads to low lot coverage and a land-to-improvement ratio above 1.5. The property owner has indicated interest in developing housing to replace the underutilized parking lot and to retain existing mixed-use brick building.
Figure C-10 Girl Boy Girl Site (Site #9)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-27 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #1410: Carmel Foundation Site
Location: Northeast corner Lincoln & 8th (APN: 010-149-001, -010, -011, -012 )012) Number of Housing Units: 20
Description: The Carmel Foundation is the primary only provider of deed-restricted affordable housing in Carmel. Their administrative offices/campus headquarters include four parcels totaling 0.62 acres. This site does not score high on land-to-improvement ratio but scores in the top tier of value per-square-foot. This site is being considered as a candidate because the Carmel Foundation is a mission-driven organization and interviews with leadership indicate that if they can accommodate their administrative functions and programming off-site, they would consider redeveloping their property for affordable housing. Senior housing is a permitted use in this zone. The City may otherwise implement SB-10 for this site (see Program 1.3.I in Chapter 2).
Redeveloping this site would require rezoning.
Figure C-1115 Carmel Foundation Site (Site #1410)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-28 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #11: American Legion Site
Location: Dolores Street 2 Southeast of 8th Avenue (APN: 010-144-014) Number of Housing Units: 5
Description: This American Legion site is approximately 0.18 acres that is immediately south of and adjacent to the Red Cross Site (Site #7). This site was not included in the RHNA 5 inventory. City staff have identified this site because it is underutilized and owned by a quasipublic organization. The mission driven organization has indicated an interest in developing affordable veteran’s housing. It’s possible that this site could be combined with the Red Cross site to yield a larger affordable housing project. The City intends to implement SB-10 for this site (see Program 1.3.I in Chapter 2).
Figure C-12 American Legion Site (Site #11)
Site #15: Carmel Presbyterian Site
Number of Housing Units: 36
Description: This site is five adjacent parcels totaling almost 1.1 acres. Over a third of the site is a parking lot. See previous comments about AB 1851. The site is outside of the commercial core and would require a zone change to facilitate redevelopment beyond housing construction within the existing parking lot area. Redevelopment of this site would require a zone change Attachment 1
Appendix C – Housing Sites Inventory Analysis C-29 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Figure C-16 Carmel Presbyterian Site (Site #15)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-30 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #16: NW Corner Juniper & 5th Yafa Building Site
Location: Northwest Corner of Junipero & 5th Avenues (APN: 010-097-007) Number of Housing Units: 35
Description: This is a corner lot site totaling 0.18 acres. The existing use is a parking lot and single-story commercial building. The site was included in the RHNA 5 inventory. It scores in the mid-tier for both redevelopment metrics.
Figure C-17 5th and Juniper Site (Site #16)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-31 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #17: American Legion Site
Location: Dolores Street 2 Southeast of 8th Avenue (APN: 010-144-014) Number of Housing Units: 5
Description: This American Legion site is approximately 0.18 acres that is immediately south of and adjacent to the Red Cross Site (Site #9). This site was not included in the RHNA 5 inventory. The existing use is the American Legion building. City staff have identified this site because it is underutilized and owned by a quasi-public organization. The mission driven organization has indicated an interest in developing affordable veteran’s housing. It’s possible that this site could be combined with the Red Cross site to yield a larger affordable housing project. Redevelopment of this site would require a zone change.The City proposes to use SB10 on this site.
Figure C-18 American Legion Site (Site #17)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-32 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #12: AT&T Building
Location: Southwest corner of Junipero & 7th (APN: 010-087-012) Number of Housing Units: 11
Description: This site is approximately 0.35 acres and consists of a single building. The existing owner is AT&T, and the use is unknown. The site was not included in the RHNA 5 inventory.
This R-C zoned site could be fully redeveloped to accommodate at least 11 housing units with a minimum density of 33 dwelling units per acre, within the housing overlay zone (see Program
3.1.G in Chapter 2).
Figure C-13 AT&T Building Site (Site #12)
[Photo to be inserted prior to HCD submittal]
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-33 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #13: Carmel Resort Inn Site
Location: East Side of Guadalupe Street between 1st & 2nd Avenues (APN: 010-021-014, - 013, -012, -011, -030, -031, -032, -033)
Number of Housing Units: 8
Description: This site is approximately 0.74 acres and consists of 8 single-family lots of record.
The existing use is the Carmel Resort Inn. The site was not included in the RHNA 5 inventory.
The current ownership has expressed interest to the City in reducing the footprint of this R-1 District hotel to accommodate the construction of 8 new single-family homes. Two of the eight homes were recently entitled and two additional homes are currently under review.
Figure C-14 Carmel Resort Inn Site (Site #13)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-34 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #14: Forest Cottages Specific Plan
Location: Northeast corner of Ocean & Mountain View (APN: 010-085-003, -004, -005) Number of Housing Units: 6
Description: This site is approximately 0.30 acres and has an adopted Specific Plan to enable a total of 6 units within this R-1 zone, which includes two low-income units.
Figure C-15 Forest Cottages Specific Plan (Site #14)
[Photo to be inserted prior to HCD submittal]
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-35 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #1815: NW Corner Mission & 7th Site
Location: Northwest Corner of Mission Street & 7th Avenue (APN: 010-141-003) Number of Housing Units: 812
Description: This site is approximately 0.37 acres. The existing uses include is multi-tenant retails shops and a restaurant acrossin multiple single-story commercial buildings. The site was included in the RHNA 5 inventory. NW Corner of Mission & 7th (APN 010-141-003). The property owner has expressed interest to add second-story residential uses to the site. Inclusion with the housing overlay zone (see Program 3.1.G in Chapter 2) would support twelve (12) units at this site. The site was previously used in the RHNA 5 inventory. Lower-income units are not assumed for this site because it is less than a half-acre in size. At 33 units per acres, 12 units could be constructed.
Figure C-1619 NW Corner Mission & 7th Site (Site #1815) Attachment 1
Appendix C – Housing Sites Inventory Analysis C-36 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #1916: 7th 2 SW of MissionFirst American Title Site Location: 7th Avenue 2 Southwest of Mission Street (APN: 010-142-013) Number of Housing Units: 2
Description: This small site is approximately 0.07 acres, currently underdeveloped with . The existing use is a small commercial building. A second-story addition with a minimum of two (2) units could be built at 33 dwelling units per acre, as supported with the housing overlay zone (see Program 3.1.G in Chapter 2). The site was included in the RHNA 5 inventory. The Property is currently underdeveloped and contains a building originally constructed in 1937. The property owner has had discussions with the City about adding at least two apartments on the second - story. The site was previously used in the RHNA 5 inventory. Lower-income units are not assumed for this site because it is less than a half-acre in size.The City has had recent experience facilitating this kind of housing development addition to an existing building.
Figure C-1720 7th 2 SW of Mission Site (Site #1916)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-37 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #2017: NE Corner Monte Verde & 7th Site
Location: Northeast Crorner of Monte Verde Street & 7th Avenue (APN: 010-191-004 ) Number of Housing Units: 12
Description: This small site is approximately 0.07 acres. The site was included in the RHNA 5 inventory. The property is currently significantly underdeveloped. The building was originally constructed in 1950 (approximately 60 years old) and has a floor area ratio of approximately 47 percent, compared to the maximum allowed of 80 percent. The building is currently used as an office space., A second-story addition or full redevelopment could result in a minimum of two (2) units at 33 dwelling units per acre, as supported with the housing overlay zone (see Program
3.1.G in Chapter 2). but as there is little demand for additional commercial space in Carmel it is likely that the site will be redeveloped with stand-alone housing as opposed to mixed-use.
Additionally, tThe site is in a transition zone from Central Commercial to Single-Family Residential with a hotel to the north (that was originally constructed as apartments) and an apartment complex to the south. The site was previously used in the RHNA 5 inventory. Lowerincome units are not assumed for this site because it is less than a half-acre in size.
Figure C-1821 NE Corner Monte Verde & 7th Site (Site #2017) Attachment 1
Appendix C – Housing Sites Inventory Analysis C-38 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #18: Yafa Building Site
Location: Northwest Corner of Junipero & 5th Avenues (APN: 010-097-007) Number of Housing Units: 5
Description: This is a corner lot site totaling 0.18 acres. The existing use is a parking lot and single-story commercial building. A second-floor addition or full redevelopment could yield five (5) units at 33 dwelling units per acre, as supported with the housing overlay zone (see Program
3.1.G in Chapter 2). The site was included in the RHNA 5 inventory. Lower-income units are not assumed for this site because it is less than a half-acre in size.
Figure C-19 Yafa Building Site (Site #18)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-39 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #21: Carmel Resort Inn Site
Location: East Side of Guadalupe Street between 1st & 2nd Avenues (APN: 010-021-014, - 013, -012, -011, -030, -031, -032, -033)
Number of Housing Units: 8
Description: This small site is approximately 0.74 acres and consists of 8 single-family lots of record. The existing use is the Carmel Resort Inn. The site was not included in the RHNA 5 inventory. The current ownership has expressed interest to the City in reducing the footprint of this R-1 District hotel and constructingto accommodate the construction of 8 new single-family homes. Two of the eight homes were recently entitled and two additional homes are currently under review.
Figure C-22 Carmel Resort Inn Site (Site #21)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-40 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #19: Three Garages Site
Location: Southwest of Junipero between 5th & 6th (APN: 010-098-004) Number of Housing Units: 3
Description: This site equals 0.11 acres and was previously used in the RHNA 5 inventory. The site is currently used for parking, including three attached garages. Neighboring structures are multi-story. A minimum of 3 units could be built at 33 dwelling units per acre, as supported with the housing overlay zone (see Program 3.1.G in Chapter 2). Lower-income units are not assumed for this site because it is less than a half-acre in size.
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-41 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Figure C-20 Three Garages Site (Site #19)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-42 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #20: Carmel Realty Office Site
Location: Northeast Corner of Dolores Street & 8th Avenue (APN: 010-145-008) Number of Housing Units: 6
Description: This site is a 0.18-acre corner-lot parcel that is currently owned and used for office space by Carmel Realty. It is a single-story structure with low lot coverage and is surrounded by two-story structures to the north and east. Six (6) units could be built at 33 dwelling units per acre, as supported with the housing overlay zone (see Program 3.1.G in Chapter 2). The site was previously used in the RHNA 5 inventory. Lower-income units are not assumed for this site because it is less than a half-acre in size.
Figure C-21 Carmel Realty Office Site (Site #20)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-43 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Attachment 1
Appendix C – Housing Sites Inventory Analysis C-44 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Sites 22-35 Recycled from 5th Cycle
To ensure the City has a buffer of housing sites for lower income housing, the City has included 14 additional sites, each of which was previously included in Carmel’s 5th Cycle Housing Element. These sites are capable of accommodating an additional 35 units, all of which have been assigned to the above-moderate-income category. As with the other underutilized sites, the likelihood of successfully developing these other sites is improved with the City’s proposed new program that would permit redevelopment of all underutilized sites without the need for a conditional use permit (i.e., “by right”). No additional discussion of these sites is provided.Site #21: Parashis Building
Location: NW Corner Dolores & 6th (APN: 010-138-006)
Number of Housing Units: 4
Description: This site is a 0.13-acre parcel that the property owner has indicated an intention to fully redevelop. It is a single-story structure that neighbors a two-story structure to the west.
Four (4) units could be built at 33 dwelling units per acre, as supported with the housing overlay zone (see Program 3.1.G in Chapter 2). The site was previously used in the RHNA 5 inventory.
Lower-income units are not assumed for this site because it is less than a half-acre in size.
Figure C-22 Parashis Building Site (Site #21)
[Photo to be inserted prior to HCD submittal]
Temporary image:
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-45 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #22: The Agency Site
Location: NW Corner Ocean & Dolores (APN: 010-139-001)
Number of Housing Units: 2
Description: This site is a 0.09-acre corner-lot parcel that is currently used as retail space by the property owner. It has low lot coverage and is a single-story structure that is surrounded by twostory structures to the west, and across the street to the east. The site was previously used in the RHNA 5 inventory. Lower-income units are not assumed for this site because it is less than a half-acre in size.
Figure C-23 The Agency Site (Site #22)
[Photo to be inserted prior to HCD submittal]
Temporary image:
second-floor
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-46 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #23: Sunset Terrace Site
Location: NW Corner Mission & 8th (APN: 010-142-006)
Number of Housing Units: 6
Description: This site is a 0.19-acre corner-lot parcel and the property owner has indicated an intention to convert the existing office space into housing units. The site includes both a singlestory and a two-story structure. A minimum of six (6) units could be built at 33 dwelling units per acre, as supported with the housing overlay zone (see Program 3.1.G in Chapter 2). secondfloorThe site was previously used in the RHNA 5 inventory. Lower-income units are not assumed for this site because it is less than a half-acre in size.
Figure C-24 Sunset Terrace Site (Site #23)
[Photo to be inserted prior to HCD submittal]
Temporary image:
second-floor
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-47 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #24: Enzo’s Site
Location: San Carlos 2 SW of Ocean (APN: 010-146-001)
Number of Housing Units: 4
Description: This site is a 0.15-acre corner-lot parcel adjacent to the Doud Arcade site (#25) and includes frontage on Ocean. It is a single-story structure that could either be fully redeveloped or receive a second-floor addition. Four (4) units could be built at 33 dwelling units per acre, as supported with the housing overlay zone (see Program 3.1.G in Chapter 2). The site was previously used in the RHNA 5 inventory. Lower-income units are not assumed for this site because it is less than a half-acre in size.
Figure C-25 Enzo’s Site (Site #24)
[Photo to be inserted prior to HCD submittal]
Temporary image:
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-48 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #25: Doud Arcade Site
Location: San Carlos 2 SW of Ocean (APN: 010-146-002)
Number of Housing Units: 5
Description: This site is a 0.13-acre mid-block parcel that the property owner has indicated an intention to construct housing as a second-story addition to the site. The Doud Arcade is a single-story structure. A minimum of five (5) units could be built at 33 dwelling units per acre, as supported with the housing overlay zone (see Program 3.1.G in Chapter 2). The existing building would likely remain on the site. The site was previously used in the RHNA 5 inventory.
Lower-income units are not assumed for this site because it is less than a half-acre in size.
Figure C-26 Doud Arcade Site (Site #25)
[Photo to be inserted prior to HCD submittal]
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Attachment 1
Appendix C – Housing Sites Inventory Analysis C-49 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #26: Paseo San Carlos Square Site 1
Location: San Carlos 2 NW of 7th Ave (APN: 010-146-003) Number of Housing Units: 5
Description: This site is a 0.18-acre It has low lot coverage and is a single-story structure that is surrounded on by two-story structures to the west, and across the street to the east. The existing building would likely remain on the site. A minimum of five (5) units could be built at 33 dwelling units per acre, as supported with the housing overlay zone (see Program 3.1.G in Chapter 2). second-floorThe site was previously used in the RHNA 5 inventory. Lower-income units are not assumed for this site because it is less than a half-acre in size.
Figure C-27 Paseo San Carlos Square Site (Site #26)
[Photo to be inserted prior to HCD submittal]
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Appendix C – Housing Sites Inventory Analysis C-50 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #27: Paseo San Carlos Square Site 2
Location: San Carlos 2 NW of 7th Ave (APN: 010-146-004) Number of Housing Units: 2
Description: This site is a 0.09-acre mid-block narrow site with a single-story structure. The existing building could remain with a second-story addition, or full redevelopment may occur. A minimum of two (2) units could be built at 33 dwelling units per acre, as supported with the housing overlay zone (see Program 3.1.G in Chapter 2). second-floorThe site was previously used in the RHNA 5 inventory. Lower-income units are not assumed for this site because it is less than a half-acre in size.
Figure C-28 Paseo San Carlos Square Site 2(Site #27)
[Photo to be inserted prior to HCD submittal]
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Appendix C – Housing Sites Inventory Analysis C-51 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #28: Carmel Office Supply & Business Center
Location: Lincoln SE of Ocean (APN: 010-147-010)
Number of Housing Units: 2
Description: This site is a 0.09-acre parcel that the property owner has indicated an intention to add a second story. It is a single-story structure that neighbors a two-structure to the south. A minimum of two (2) units could be built at 33 dwelling units per acre, as supported with the housing overlay zone (see Program 3.1.G in Chapter 2). The site was previously used in the RHNA 5 inventory. Lower-income units are not assumed for this site because it is less than a half-acre in size.
Figure C-29 Carmel Office Supply & Business Center (Site #28) [Photo to be inserted prior to HCD submittal]
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Appendix C – Housing Sites Inventory Analysis C-52 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Housing Variety
In compliance with Government Code Section 65583 and 65583.2, which require the Hhousing eElement to provide for a variety of housing types including multifamily rental housing, factory-built housing, mobilehomesmobile homes, housing for agricultural employees, supportive housing, singleroom occupancy units, emergency shelters, and transitional housing, the City has expanded possible options for property owners to develop housing units.
For instance, the following approaches will enable a variety of housing to be constructed, rehabilitated, converted, or added to an existing single-story structure:
Zoning changes included with programs in Chapter 2 incintivizesincentivizes existing overnight visitor accommodation sites to be converted into multi-family housing units. City property, which has the highest likelihood of including lower-income units, will provide additional multi-family opportunitesopportunities.
By exercising Senate Bill (SB) -10, the City will enable multi-family units within otherwise singlefamily zoned neighborhoods. Figure C-36 demonstrates a variety of housing typologies anticipated with the narrative description of the Sites Inventory described in Section C-3.
Formatted: Bullet_List
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-53 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Figure C-30 Anticipated Development Types
[Map to be inserted prior to HCD submittal]
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-54 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Employee Housing at Local Hotels
As mentioned above, the City of Carmel-by-the-Sea has included a new program in this 6th Cycle Housing Element update to incentivize hotels to provide on-site low-incomeaffordable employee housing for hospitality hospitability employees in exchange for an additional hotel unitthe dedication of a minimum of one hotel room to house lower-income employees. As there are 46 hotels in the City, this program has the potential to add at least 46 moderate- and lower-income units to the City’s housing stock.
Accessory Dwelling Units (ADUs and Junior ADUs)
Based on HCD’s Annual Progress Report Dashboard, between 2018 and 2022, Carmel received 18 ADUs 33 permit applications for new ADUs, approved/entitled 30 applications, issued building permits for 13 ADUs, and finaled 1 ADUwere constructed in Carmel in the four-year period between 2018 and 2021. However, the Community Planning & Building Department reports that over the 5.5 year5.5-year period between 2017 and June 2023, 7 permit applications for ADUs are actively in review, 11 permits have been approved but have not yet started construction, and 33 ADUs are currently under construction. Since 2017, 24 ADUs have completed construction. Based on the number of ADUs approved and under construction (44 total) plus the number that have completed construction (24), the City has averaged 12 ADUs per year over the last 5.5 years. When extrapolated to the eight-year planning period for the 6th Cycle Housing Element update, this equates to 96 units.
Additionally, property owners with existing ADUs constructed between the 1920s and 1980s have received building permits for remodeling of their ADUs, bringing them up to current building code standards. The City is also seeing new ADUs combined with new home construction.
Lastly, the Community Planning & Building Department actively encourages property owners with existing guest houses to convert them into ADUs by adding a kitchen.
Based on the City’s permit history and active support for ADUs, as well as the continued interest by property owners in rehabilitating existing ADUs and constructing new ADUs, it is reasonable to estimate a potential capacity of 96 ADUs over the 8 year Planning period. This averages 4.5 ADUs per year, which when extrapolated to the eight-year planning period for the 6th Cycle Housing Element update, equates to a total of 36 units. Because the State of California has recently adopted a host of new rules easing the construction of ADUs, and the continued increase in interest by homeowners, the City has doubled its estimate of potential ADUs to a total of 72 units. Following the rule of thumb recommended by HCD, these 72 96 units have been distributed to very low-, low-, moderate-, and above moderate-income households as follows: 30 percent, 30 percent, 30 percent, 10 percent, respectively.
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-55 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Table of Housing Resources
This section provides the formal inventory table of sites that the City of Carmel-by-the-Sea will rely on in the 6th Housing Element planning cycle. Per state law and Housing Program 3.3 (see Chapter 3 2 of this 6th Cycle Housing Element), the City is required to maintain “no net loss” of the housing capacity represented by this list of parcels and the sites they comprise. To facilitate this, the inventory presented below has been designed with excess capacity33 percent% buffer, not including opportunities for Overnight Visitor Accommodation sites and vacant single-family sites. This allows some degree of flexibility in decision making for individual development projects as they come forward for approval by the Planning Commission City Council.
In short, with some limited flexibility, the City is committed to permitting housing on each of the parcels listed in the table below, and in doing so, ensuring that the number of units listed for each parcel in the table--“planned capacity”—is achieved. Should the City approve development that is inconsistent withbelow the parcel’s planned capacity, it is then required as part of that approval to:
Find, based on quantitative evidence, that the remaining inventory of housing sites is still sufficient to meet the City’s 6th Cycle RHNA; or
Identify one or more available sites with the realistic development capacity to replace the housing that would have otherwise been developed had consistency with planned capacity been achieved.
Table C-3, Housing Sites Inventory, provides details and capacity estimates for each of the parcels that comprise the 353 housing sites identified in the sections above.
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-56 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Figure C-31 • Sites Inventory and Zoning
[Map to be inserted prior to HCD submittal]
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Appendix C – Housing Sites Inventory Analysis C-57 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 This page intentionally left blank
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Appendix C – Housing Sites Inventory Analysis C-58 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Table C-3 Housing Sites Inventory
Site # Location
(Reference to ECO NW Study) APN Zoning General Plan Acreage Applied
Density
(DU/AC)
Total
Realistic
Capacity
Very Low Low Moderate Above
Moderate
Primary Underutilized Sites
Primary Underutilized Sites
1 Sunset Center Lots Site (#1),
NE Corner of San Carlos & 8th 010143001000 A-2
Open
Space/
Recreatio
n/ Cultural
OS/ Rec
Cultural
1.02 33 33 -- 17 16 --
2 Sunset Center Lots Site (#1),
NE Corner of San Carlos & 8th 010143001000 A-2 OS/ Rec Cultural 1.02 33 33 -- 17 16 -- 23 Ulrika Plaza Site (#2),
SW Corner of Dolores & 5th
010138003000
SC
Core
Commerci
alCC
0.37 33 12 -- -- -- 12
010138021000
34 City Public Works Site (Vista Lobos) (#3),
W/S Torres between 3rd & 4th, and
E/S Junipero between 3rd & 4th
010104001000
R-4
MultiFamily
Residenti
alMFR
1.28 33 42 35 -- -- 7
010104004000
4 Carmel Realty Office Site (#4) 010145008000 RC
RCReside
ntial/Com
mercial
0.19 33 4 4
5 Pine Inn Parking Lot (#5) 010212010000 R-1
Single
Family
Residenti
al
0.18 33 5 5
65 Bruno's Market Site (#6)
NE Corner of Junipero & 6th, and
NW Corner of Torres & 6th
010095013000
RC
Residenti
al/Comme
rcial C
0.53 33 17 12 5 -- -- 010095012000
7 Three Garages Site (#7)
010098004000
010098005000
010098006000
SC
CCCore
Commerci
al
0.33 33 7 7
Appendix C – Housing Sites Inventory Analysis C-59 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site # Location
(Reference to ECO NW Study) APN Zoning General Plan Acreage Applied
Density
(DU/AC)
Total
Realistic
Capacity
Very Low Low Moderate Above
Moderate
86 First Church of Christ Parking Lot (#8),
Lincoln 2-4 NW of 6th
010212027000
R-1SB10
SFRSingl
e Family
Residenti
alSFR
010212004000 0.28 33 9 -- 9 -- --
010212026000
97 Red Cross Site (#9),
SE Corner of Dolores & 8th
010144015000
R-1SB10
SFRSingl
e Family
Residenti
alSFR
0.18 33 5 -- -- -- 5
010144016000
8 JB Pastor Building,
Dolores 2-4 SE of 7th (#12)
010145012000
010145024000 SC CC 0.46 33 11 -- -- -- 11
010145023000
9 Girl Boy Girl,
SW Corner of Mission & 7th (#13) 010142001000 SC CC 0.18 33 5 -- -- -- 5 10 Café Carmel Site (#10) 010133004000 CC
CCCore
Commerci
al
0.15 33 3 3
11 Wells Fargo Site (#11) 010141006000
010141011000 CC
CCCore
Commerci
al
0.36 33 8 8
12 Esperanza 7th and Dolores Site (#12) 010145012000
010145020000 SC
Core
Commerci
al
0.46 33 15 15
13 7th and Mission Site (#13) 010142001000 SC
Core
Commerci
al
0.18 33 5 5
1410 Carmel Foundation Site (#14),
NE Corner of Lincoln & 8th
010149012000
A-3
Single
Family
Residenti
alSFR
0.62 33 20 10 10 -- -- 010149010000
010149011000
010149001000
1115
American Legion Site,Carmel Presbyterian
Site (#15)
Dolores 2 SE 8th
010144014000
010084030000
010084023000
010084024000
010084022000
010084003000
SB10R-1
SFR Singl
e Family
Residenti
al
0.181.10 3333 536 --36 -- -- 5
Appendix C – Housing Sites Inventory Analysis C-60 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site # Location
(Reference to ECO NW Study) APN Zoning General Plan Acreage Applied
Density
(DU/AC)
Total
Realistic
Capacity
Very Low Low Moderate Above
Moderate
12 AT&T Building
SW Corner of Junipero & 7th 010087012000 RC RC 0.35 33 11 -- -- -- 11 16 NW Corner Junipero & 5th (#16) 010097007000 SC
CCCore
Commerci
al
0.18 33 3 3
17 American Legion Site 010144014000 R-1SB10
SFRSingl
e Family
Residenti
al
0.18 33 5 5
18 NW Corner Mission & 7th 010141003000 CC
CCCore
Commerci
al
0.37 33 8 8
19 7th 2 SW of Mission 010142013000 SC
CCCore
Commerci
al
0.07 33 2 2
20 NE Corner Monte Verde & 7th 010191004000 RC
RCReside
ntial/Com
mercial
0.07 33 1 1
2113
Carmel Resort Inn,
SE Corner of Guadalupe & 1st,
Guadalupe 2-8 SE of 1st
010021014000
R-1
SFRSingl
e Family
Residenti
alSFR
0.74 3320 8 -- -- -- 8
010021013000
010021012000
010021011000
010021030000
010021031000
010021032000
010021033000
Subtotal Primary Underutilized Sites 8.84 248 93 46 16 93 Sites Recycled Carried Over from the 5th Cycle
14 Forest Cottages Specific Plan,
NE Corner of Ocean & Mountain View
010085004000 R-1 SFR 0.30 20 6 2 4 010085005000
Appendix C – Housing Sites Inventory Analysis C-61 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site # Location
(Reference to ECO NW Study) APN Zoning General Plan Acreage Applied
Density
(DU/AC)
Total
Realistic
Capacity
Very Low Low Moderate Above
Moderate
010085003000
Subtotal Primary Underutilized Sites 8.16 242 98 54 16 74 Sites Recycled from 5th Cycle
15 Court of the Fountains
NW Corner Mission & 7th 010141003000 CC CC 0.37 33 12 -- -- -- 12 16 First American Title
7th 2 SW of Mission 010142013000 SC CC 0.07 33 2 -- -- -- 2 17 Office building
NE Corner Monte Verde & 7th 010191004000 RC RC 0.07 33 2 -- -- -- 2 18 Yafa
NW Corner Junipero & 5th 010097007000 SC CC 0.18 33 5 -- -- -- 5 19 Three Garages Site (#7) 010098004000 SC CC 0.33 33 3 -- -- -- 3 20 Carmel Realty Office Site (#4)
NE Corner 8th & Delores 010145008000 RC RC 0.19 33 6 -- -- -- 6 22 San Carlos 2 NE of 6th 010132009000 CC CC 0.09 33 1 -- -- -- 1 23 Ocean 4 NW of San Carlos 010134005000 CC CC 0.08 33 1 -- -- -- 1 2421 Parashis Building
NW Corner Dolores & 6th 010138006000 CC CC 0.13 33 24 -- -- -- 24 2522 The Agency
NW Corner Ocean & Dolores 010139001000 CC CC 0.09 33 12 -- -- -- 21 26 SE Corner Ocean & San Carlos 010141007000 CC CC 0.28 33 6 -- -- -- 6 27 Ocean 2 SE of Mission 010141009000 CC CC 0.07 33 1 -- -- -- 1 2823 Sunset Terrace
NW Corner Mission & 8th 010142006000 RC RC 0.19 33 64 -- -- -- 46 29 SE Corner of San Carlos & 7th 010142012000 SC CC 0.12 33 2 -- -- -- 2 Formatted: Superscript
Appendix C – Housing Sites Inventory Analysis C-62 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site # Location
(Reference to ECO NW Study) APN Zoning General Plan Acreage Applied
Density
(DU/AC)
Total
Realistic
Capacity
Very Low Low Moderate Above
Moderate
3024 Enzo's
San Carlos 2 SW of Ocean 010146001000 CC CC 0.15 33 34 -- -- -- 34 3125 Doud Arcade
San Carlos 2 SW of Ocean 010146002000 CC CC 0.18 33 35 -- -- -- 35 3226 Paseo San Carlos Square
San Carlos 2 NW of 7th Ave 010146003000 CC CC 0.18 33 35 -- -- -- 35 3327 Paseo San Carlos Square
San Carlos 2 NW of 7th Ave 010146004000 CC CC 0.09 33 12 -- -- -- 21 3428 Carmel Office Supply & Business Center
Lincoln SE of Ocean 010147010000 CC CC 0.09 33 12 -- -- -- 12 35 SW Corner Ocean & Dolores 010147018000 CC CC 0.31 33 6 -- -- -- 6 Subtotal Recycled Sites 60 60
TOTAL 283302 9398 4654 2316 121134
Potential Converted Hotel UnitsHospitality Employee Housing 4631 08 1612 3011 0 Overnight Visitor Accommodation Transfer of Development 33 8 0 0 25 ADUs 7234 2211 2211 1122 63
Subtotal Other 82 19 23 22 20
GRAND TOTAL 401400 115117 8492 7568 127182
RHNA 349 113 74 44 118
Difference 5251 215 186 24 1764
Difference (Percent) 115115% 101113% 113124% 17054% 108154% SOURCE: City of Carmel-by-the-Sea; EMC Planning Group Inc.
Appendix C – Housing Sites Inventory Analysis C-63 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 This page intentionally left blank
Appendix C – Housing Sites Inventory Analysis C-64 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review DraftElement HCD Initial Draft June August 2023 D.4 AFFH Sites Analysis
Per AB 686, Hhousing eElements are required to analyze the location of lower-income sites in relation to high opportunity areas. This comes as a result of the inextricable link between the location of housing and access to resources and opportunities such as employment, schools, basic needs suppliers, etc. Disparities in housing needs and access to opportunities is most common among lower-income households. In an effort to affirmatively further fair housing in Carmel-by-theSea, the sites inventory has been analyzed in relation to access to resources, overcrowding, cost burden, environmental pollution burden, social vulnerability, displacement risk, and fair housing and equal opportunity cases.
According to the HCD AFFH Data Viewer,
3 Carmel-by-the-Sea is largely homogeneous when
analyzing levels of diversity, access to opportunity, overcrowding, cost burden, environmental pollution burden, social vulnerability, displacement risk, and fair housing and equal opportunity cases. However, the AFFH Data Viewer reveals two areas of analysis, cost burden by home owners and median income, which show geographic concentrations in particular areas of the City. Table AC-4 provides an overview of the AFFH indicators described above, as they relate to Carmel-bythe-Sea. 3 https://affh-data-and-mapping-resources-v-2-0-cahcd.hub.arcgis.com/ Attachment 1
Appendix C – Housing Sites Inventory Analysis C-65 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Table C-4 AFFH Indicators Analysis Overview
AFFH Category Legend Category Surrounding Area Analysis Fig. A-6 Diversity Index, 2018
Carmel-by-the-Sea has a low level of diversity with no geographic variation across the City. To the north of Carmel-by-the-Sea, diversity levels are higher ranging from 55-<85. Del Rey Oaks, Seaside, and Sand City have the highest diversity levels in the surrounding region.
Fig. A-7 R/ECAP, 2009-2013 Carmel-by-the-Sea has no R/ECAPs in the City. There are no R/ECAPs in the surrounding region.
Fig. A-8 RCAA, 2015-2019
Carmel-by-the-Sea has no RCAAs in the City. The majority of surrounding areas have at least one RCAA. This may be due to a decade long high vacancy trend as a result of being a second home destination.
Fig. A-9 Percent Non-White
Population, 2018
Carmel-by-the-Sea has a non-White population of less than or equal to 20% with no geographic variation across the City. The majority of the surrounding region falls between <20-40% non-White. Pacific Grove and Monterey show small concentrations of higher diversity, but Del Rey Oaks, Seaside, and Sand City have the highest diversity in the region (41-80%).
Fig. A-15 Median Income,
2015-2019
Carmel-by-the-Sea has a concentration of households earning less than $87,100 in the central region of the City, while the northern and southern regions show concentrations of households earning between $87,100- $125,000. SurroundingNearby neighboring cities also show geographic variation in median income. Monterey, Seaside, and Sand City show the greatest concentrations of households earning less than $55,000.
Appendix C – Housing Sites Inventory Analysis C-66 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Fig. A-22 Overcrowded
Households
Carmel-by-the-Sea and the majority of the surrounding region have less than
8.2% overcrowded households. However, to the northeast, Seaside and Sand City have overcrowding rates of more than 20%.
Fig. A-25 Cost Burden by
Home Owners, 2015-2019
Carmel-by-the-Sea shows geographic variations in cost burden rates by home owners. 40-60% of owner households northern region of the City experience cost burden and more than 80% of owner households in the southern region. The majority of the surrounding region fall within 20-60% concentrations of cost burdened owner households. To the north, Del Rey Oaks shows the lowest concentration of cost burdened owner households (<20%).
Fig. A-26 Cost Burden by
Renters, 2015-2019
40-60% of Carmel-by-the-Sea renter households experience cost burden with no geographic variation. Much of the surrounding area has similar rates of cost burden among renters. However, regions to the south of Carmel-by-the-Sea have higher rates of cost burden by renters at 60-80% of households. To the north, Seaside and Del Rey Oaks also show higher levels of cost burden (60- 80%).
Pacific Grove shows geographic variation in cost burden rates among renters with a 20-40% concentration in the southern region of the City.
Fig. A-35 TCAC Opportunity
Composite Score, 2022
Carmel-by-the-Sea is a highest resource area with no geographic variation. The majority of surrounding regions to the north of Carmel-by-the-Sea are also highest resource areas with the exception of Seaside and Del Rey Oaks.
Seaside is a moderate resource area and Del Rey Oaks is a high resource area.
Fig. A-36 TCAC Opportunity
Economic Score, 2022 Carmel-by-the-Sea scores high (0.75-1.0) on economic outcomes. Surrounding regions mostly score high with the exception of Seaside and Del Rey Oaks.
Seaside shows concentrations of <0.25 in the western portion of the City and concentrations of 0.25-0.5 in the eastern portion.
Appendix C – Housing Sites Inventory Analysis C-67 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Fig. A-37 TCAC Opportunity
Education Score, 2022
Carmel-by-the-Sea scores high (0.75-1.0) on positive education outcomes.
Surrounding regions show lower education outcomes ranging from 0.5-<0.25.
Fig. A-38 TCAC Opportunity
Environmental Score, 2022
Carmel-by-the-Sea scores high (0.75-1.0) on positive environmental outcomes.
Surrounding regions to the north of Carmel-by-the-Sea show more geographic variation in environmental outcomes. Monterey and Del Rey Oaks score low on environmental outcomes (0.25-0.5). Seaside scores lowest with a score of less than 0.25.
Fig. A-39 Social Vulnerability
Index, 2018
Carmel-by-the-Sea households are at a lower vulnerability level than surrounding regions. To the south of Carmel-by-the-Sea, households are at a
0.25-0.5001 level of vulnerability. Similarly, in Pacific Grove, Monterey, Del Rey Oaks, Seaside, and Sand City also fall into this vulnerability category. Seaside has concentrations of higher vulnerability in the northeastern region of the City.
Fig. A-44 Displacement Risk,
2022
Majority of surrounding region households are at lower displacement risk, including the northern region of Carmel-by-the-Sea. The Southern region of the City reports low data quality. The Cities of Monterey, Del Rey Oaks, Seaside, and Sand City show higher levels of displacement risk with geographic variation. Displacement risk in Seaside specifically, is highest among two (2) income groups with concentrations in the northeastern region of the City.
Fig. A-46 FHEO Cases Total,
Monterey County, 2020
Surrounding Monterey County region shows no variation in total fair housing cases. Carmel-by-the-Sea and region falls within 0.01-0.025 cases.
Appendix C – Housing Sites Inventory Analysis C-68 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Fig. A-47 FHEO Cases,
Disability Bias, Monterey
County, 2020
Surrounding Monterey County region shows no variation in disability bias cases; Carmel-by-the-Sea and region falls within 40.01%-65%.
SOURCE: California Department of Housing and Urban Development, AFFH Data Viewer NOTES: Blue boxes in “Legend Category” column indicate which category Carmel-by-the-Sea falls within.
Red box outlining all three columns indicate geographic variation or concentrations present.
Appendix C – Housing Sites Inventory Analysis C-69 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Figure AC-X38 illustrates geographic concentrations of cost burden by home owners in Carmel-bythe-Sea, in addition to the sites inventory. In the northern region of the City, approximately 40 to 60 percent of home owner households experience cost burden. However, in the southern region of the City, more than 80 percent of owner households experience cost burden. Comparatively, the majority of surrounding regions fall within the 20 to 60 percent range of home owners experiencing cost burden.
Figure C-32 AFFH Sites Analysis: Cost Burdened Home Owners [Map to be inserted prior to HCD submittal]
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-70 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Figure AC-X39 illustrates geographic variation in median income in Carmel-by-the-Sea, in addition to the sites inventory. In the central region of the City, there is a concentration of households earning less than $87,100, while in the northern and southern regions there are concentrations of households earning between $87,100 and $125,000. Comparatively, the majority of surrounding regions also show some degree of geographic variation in median income.
Figure C-33 Sites and Carmel-by-the-Sea Median Income
[Map to be inserted prior to HCD submittal]
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-71 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 D.54 Conclusion
The vacant and underutilized sites, on-site hotelhospitality employee housingconverted hotel rooms, and accessory dwelling units identified in this report are sufficient to accommodate approximately 115 percent of the City of Carmel-by-the-Sea’s Regional Housing Needs Allocation for the 6th Cycle planning period. This 15 percent “cushionbuffer” is highly recommended because of the state’s nonet-loss policy, which precludes jurisdictions from approving development that results in an overall housing site deficit. The “cushionbuffer” essentially provides a degree of flexibility for policy makers as they make development decisions. Many of the sites identified in this report have existing uses that would need to be temporarily relocated, remodeled, or replaced demolished before new housing could be constructed.
Nonetheless, for communities like Carmel-by-the-Sea that are largely built out and surrounded on all sides by other communities, redevelopment and densification is the only practical solution to providing its share of housing for the Monterey Bay Area RHNA. By its nature, such redevelopment is more costly and more time consuming than building new units on vacant land. To offset these constraints, City Officials have proposed a “Housing Priority Overlay Zone”Hhousing Priority Ooverlay Zzoneing District will be established to facilitate redevelopment and/or intensification of uses on sites included in the City’s housing sites inventory (see Program 3.1.G in Chapter 2).. This overlay zone implements a minimum density and clarifies permitting and incentives for affordable housing within the Municipal Code. allows for affordable housing development by right, application of (objective design and development standards apply), and minimum density, and otherwise overrides the development standards of the base district to ensure that the number and types of units identified in the housing sites inventory can be achieved.
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-72 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Attachment 1
Appendix C – Housing Sites Inventory Analysis C-73 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 C.6 Overnight Visitor Accommodation Reference List
Two programs incentivize consideration of housing production by the Overnight Visitor Accommodation property owners. Program 1.3.B initiates a transfer of development rights and Program 1.3.D encourages employee housing to be constructed within existing sites for Overnight Visitor Accommodations. Table C-5 includes known properties that fit the Overnight Visitor Accommodation and would therefore be candidates for these incentive programs.
Table C-5 Existing Overnight Visitor Accommodation Locations APN Address Overnight Visitor Accommodation
Establishment Name
010148015000 Dolores & 8th Adobe Inn
010095010000 Junipero between 5th & 6th Best Western Carmel Bay View Inn 010136023000 5th & San Carlos BestWestern Carmel's Townhouse Lodge 010131011000 San Carlos between 4th & 5th Briarwood Inn 010131013000 E/S San Carlos between 4th & 5th Briarwood Inn II/Holland Court Inn 010136022000 San Carlos between 4th & 5th Candle Light Inn 010268008000 San Antonio & 8th Carmel Cottage Inn LLC
010124009000 SE Dolores & 3rd Carmel Country Inn LLC
010136021000 San Carlos @ 4th Carmel Fireplace Inn
010104002000 4th & Torres Carmel Garden Inn
010195501500 7th & Casanova Carmel Green Lantern Inn
010097007000 Junipero & 5th Carmel Inn & Suites
010131025000 San Carlos at 5th Carmel Lodge
010097018000 Mission & 5th Carmel Oaks
010021024000
010021025000
010021002000
010021003000
010021026000
010021027000
010021028000
010021029000
Carpenter between 1st & 2nd Carmel Resort Inn
010094002000 Ocean & Junipero Carmel Village Inn
010123005000 4th @ Mission Street Carmel Wayfarer Inn
010087002000 Junipero between 7th & 8th Carriage House Inn 010142002000 San Carlos @ 7th Coachman's Inn
010286015000 San Antonio & 13th Colonial Terrace
010094001000 Torres & Ocean Ave Comfort Inn Carmel by the Sea 010147008000 7th & Lincoln Ave Cypress Inn
010287008000 San Antonio, 4 SE of 13th Edgemere Cottages Attachment 1
Appendix C – Housing Sites Inventory Analysis C-74 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 APN Address Overnight Visitor Accommodation
Establishment Name
010085005000 SW Ocean/Torres Forest Lodge
010124001000
010124014000 2 NW of 4th on San Carlos Hofsas House
010109015000 SWC 3rd & Junipero Horizon Inn
010123014000 4th & San Carlos Hotel Carmel
010264006000 8th & Camino Real La Playa Hotel
010261014000 SE Camino Real & Ocean Lamplighter Inn
010191005000 Monte Verde @ 7th L'Auberge Carmel
010214032000 Ocean @ Monte Verde Lobos Lodge
010196027000 Monte Verde & 7th Monte Verde Inn
010201013000 Monte Verde @ 7th Monte Verde Inn East
010019061000 Ocean & Monte Verde Normandy Inn
010104005000 SEC 3rd & Junipero Ocean View Lodge
010273014000 Camino Real between 11th & 12th Sea View Inn 010194018000 SS 8th between Monte Verde & Casanova Stonehouse Inn c/o Carmel Realty 010261015000 Camino Real 2 SE of Ocean Sunset House
010124012000 4th & San Carlos Svensgaard's Inn
010214029000 Monte Verde & 6th Tally-Ho Inn
010087003000 Junipero between 7th & 8th The Hideaway
010148007000 NE Corner Lincoln & 8th The Homestead
010213003000 Ocean between Lincoln/Monte Verde The Pine Inn 010109016000 Mission @ 3rd Ave Tradewinds Carmel
010136016000 Dolores & 7th Vagabond House
010087013000 7th & Mission Wayside Inn
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-75 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 This side intentionally left blank.
Attachment 1
Attachment 1
Review of Previous Housing Element D
APPENDIX
Attachment 1
Attachment 1
Appendix D – Review of Previous Housing Element D-1 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Appendix D
Review of Previous Housing Element
D.1 Introduction
In order to effectively plan for the future, it is important to reflect back on the goals of the previous Housing Element and to identify those areas where progress was made and those areas where continued effort is needed. State Housing Element guidelines require communities to evaluate their previous Housing Element according to the following criteria:
Effectiveness of the Element;
Progress in Implementation; and
Appropriateness in Goals, Objectives and Policies.
D.2 Effectiveness of the Element
The City’s 2015 Housing Element identified the following goals:
Goal G3-1 Preserve the existing housing stock;
Goal G3-2 Preserve existing residential units and encourage the development of new multifamily housing in the Commercial and R-4 Districts; Goal G3-3 Provide adequate sites for the development of a wide range of housing types for all citizens;
Goal G3-4 Protect the stability of residential neighborhoods by promoting year-round occupancy and neighborhood enhancement; and
Goal G3-5 Preserve and increase the supply of housing for lower- and moderate-income households, senior citizens and other special needs groups. Prohibit discrimination in the sale or rental of housing.
In order to achieve these goals, the 2015 Housing Element listed a series of policies and actions. The policies covered a range of actions, including (but not limited to): development of mixed-use projects with high-density housing; preserving existing second-floor housing over first-floor commercial uses; converting R-1 hotels to housing; enforcing the City’s prohibition on short-term rentals; reviewing requirements for conditional use permits on multi-family developments with Attachment 1
Appendix D – Review of Previous Housing Element D-2 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 densities greater than 22 du/ac; using Ccity-owned surplus sites for affordable housing; and granting water priority to affordable housing projects. The 2015 policies and programs complied with State Housing Law guidelines in effect at the time.
D.3 Progress in Implementation
To assess the City’s progress in implementing the 2015 Housing Element, the following key areas were reviewed:
Adopted Programs;
Production of Housing;
Preservation of “At Risk” Units; and
Rehabilitation of Existing Units.
Each of these areas is discussed in detail below.
Overview of Adopted Programs
Table D-1, Overview of Adopted Programs, identifies all of the actions the City committed to in the 2015 Housing Element. The table also includes a description of the progress that was made during the 2015–2023 planning period.
Attachment 1
Appendix D – Review of Previous Housing Element D-3 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Table D-1 Overview of Adopted Programs
Program
Number
Programs/Actions
[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element] Achievements/Effectiveness
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Goal G3-1: Preserve the existing housing stock.
Program 3-1.1.a
Housing Rehabilitation Information. Distribute information on the Inspection Services and Housing Rehabilitation programs available through Monterey County, and alternative ways of financing home repairs.
During the planning period, the City provided information on rehabilitation programs, inspection services, and home repair financing at City Hall and on the City’s website. During the Planning period, the City’s website was redesigned with new features that make navigation easier.
Dissemination of information at City Hall and on the City’s website is a passive activity that can effectively educate and inform the public. To capture a broader audience and take a more active role in disseminating information, the City will take advantage of established venues such as the Farmer’s Market, Library programming, and local service organizations to promote available resources.
Modify to improve
effectiveness by
taking a more active
role in disseminating
information at
established venues
such as the Farmer’s
Market, Library
programming and
local service
organiationsorganizat
ions.Continue.
Program 3-1.1.b
Residential Inspection Services. Inspect residences in the community for structural deficiencies and repair needs at the request of the property owner.
Throughout the Planning period, the City provided The City continues to provide residential inspection services to residents as part of Code Enforcement complaints and during the
building permit process. However, the City is not staffed to provide inspections outside of the building permit process and does not maintain the required certifications to identify structural deficiencies.
Continue.Delete
Appendix D – Review of Previous Housing Element D-4 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program
Number
Programs/Actions
[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element] Achievements/Effectiveness
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Program 3-1.1.c
Housing Maintenance Information. Disseminate informational materials identifying techniques used to upgrade property consistent with health and safety standards.
The informational materials will continue to be disseminated at public buildings, through the City’s website, and in conjunction with Program 3-1.1.a.
During the planning period, the City provided housing
maintenance information at City Hall and on the City website to facilitate the preservation of the existing housing stock. During the Planning period, the City’s website was redesigned with new features that make navigation easier.
Dissemination of information at City Hall and on the City’s website is a passive activity that can effectively educate and inform the public. To improve program effectiveness, capture a broader audience, and take a more active role in disseminating information, the City will take advantage of established venues such as the Farmer’s Market, Library programming, and local service organizations to promote available resources.
Modify and Combine
with 3-1.1.a.
Goal G3-2: Preserve existing residential units and encourage the development of new multi-family housing in the Commercial and R-4 Districts.
Program 3-2.1.a
Incentives for Mixed-Use Development. Provide floor area bonuses of up to 15 percent for projects that include housing for Mmoderate-, lLow- and vVery-lLow-income households. Distribute informational materials outlining the floor area and other applicable incentives.
The City continues to encourage affordable housing in mixeduse development. No development participated in this program and it was not effective in generating additional new units..
Modify to improve the
incentive.
Program 3-2.1.b
Preserve and Increase Second Floor Residential Uses. Prohibit the conversion of existing second-floor residential floor space to commercial use. Require newly constructed floor space at the second floor to be used as residential units.
The City continues to preserve existing second floor residential uses and encourages the conversion of second floor
commercial space to residential use. This was a successful program that resulted in protection of existing units and construction of new units.
Continue.
Program 3-2.1.c
Incentives for Mixed Use Affordable Housing. Explore options to further incentivize upper-story housing opportunities, such as the potential of allowing a third story when devoted to affordable housing subject to appropriate design standards, including the City’s 30-foot height limit.
The City continues to look for ways to increase affordable housing opportunities. The City approved the Del Dono I and Del Dono II projects which included mModerate income units and a 3rd floor mezzanine. No development participated in this program. Staff will make a concerted outreach effort to better publicize this program.
ContinueModify to
specify 3rd floor
mezzanine.
Appendix D – Review of Previous Housing Element D-5 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program
Number
Programs/Actions
[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element] Achievements/Effectiveness
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Program 3-2.1.d
Multi-Family Residential Development Review. Monitor multi-family residential development applications to assess whether the CUP requirement (CUP for MFDs at densities 22 du/ac +) is posing an unreasonable development constraint. If it is determined that the CUP requirement is negatively affecting the cost and supply of housing, the City will initiate Zoning Code and LCP amendments to revise permit requirements for residential projects with densities greater than 22 du/ac to ensure permits are granted based on objective criteria.
The City monitored the review process for multi-family
residential development and found that the Use Permit
requirement for multi-family projects at densities between 23 and 33 dwelling units per acre was not a deterrent to
development. The primary constraint to increased density remains a lack of water resources. However, the City remains open to eliminating the Use Permit requirement for all densities greater than 22 dwelling units per acre.
While the monitoring of multi-family residential development applications did not reveal an unreasonable development constraint, the elimination of the Use Permit requirement would result in cost savings for applicants who would no longer have to pay the Use Permit application fee. Additionally, the application processing time would be reduced by eliminating one of the permit entitlements.
Modify to remove the
CUP requirement for
densities up to 33
du/ac and look at the
CUP requirements in
general that can be
removed.
Goal G3-3: Provide adequate sites for the development of a wide range of housing types for all citizens.
Appendix D – Review of Previous Housing Element D-6 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program
Number
Programs/Actions
[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element] Achievements/Effectiveness
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Program 3-3.1.a
Adequate Sites. The City will encourage and facilitate the development of new dwelling units consistent with the RHNA need by continuing to work with housing providers such as the Carmel Foundation. The City will also encourage development of new affordable units through incentives and concessions outlined in Programs 3-5.4.a, 3-5.4.b, 3-5.5.a, 3-5.5.b, and 3-
5.5.c of this Housing Element.
The City encouraged the construction of new dwelling units to meet the City's RHNA requirements and promoted incentives and concessions to facilitate new construction. A lack of water resources continues to be the largest constraint to developing high-density housing.
The Carmel Foundation manages 50 affordable senior housing units in Carmel. While the City has a long-standing relationship with the Foundation, they do not accept government funding, and the operating costs of the housing units result in an annual deficit. Identification of additional funding sources and housing providers should be considered while maintaining a strong relationship with the Foundation.
City staff regularly promotes the incentives available for developing new affordable units when meeting with prospective developers and processing new development applications. The primary constraint to increased density remains a lack of water resources.
Modify. The City will
craft a policy
requiring minimum
densities.
Program 3-3.1.b
Surplus Sites. Iinvestigate the feasibility of utilizing surplus sites for housing development and partnering with housing providers to develop housing for lower-income households and/or senior housing on appropriate surplus sites.
The City continues to evaluate the feasibility of constructing new housing on surplus land, specifically the Sunset Center parking lots (north and south). No development partners emerged during this housing elementHousing Element cycle; however, discussions remain ongoing.
Modify to identify
underutilized
Citypublicly- owned
sites including
Flanders Mansion,
Sunset Center
parking lots, Post
Office parking lot and
Vista Lobos.
Appendix D – Review of Previous Housing Element D-7 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program
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[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element] Achievements/Effectiveness
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Program 3-3.1.c
Development on Small Sites. The City will continue incentives and provisions that facilitate development on small sites including reduced parking requirements for affordable housing projects (0.5 parking spaces per unit), density bonuses that allow for development up to 88 du/ac, flexible or in some cases no required setbacks in the R-4 zone, and lot mergers. The City will review its Lot Merger Program to determine if any refinements should be made, including a requirement that mergers be approved by the Planning Commission rather than the Director. The City may also consider incentives for commercial lot mergers when lowerincome units are provided, and eliminating any provisions of this program that have the unintended effect of restricting housing opportunities.
During the planning period, the City maintained reduced parking requirements for affordable housing projects and the density bonus provisions allowing high-density housing
development of up to 88 dwelling units per acre. A lack of water resources continues to be the largest constraint to developing high-density housing.
The City continued to promote incentives associated with lot mergers in the single-family district, including additional floor area for the primary dwelling and accessory dwelling units, additional site coverage, and an additional accessory structure.
Lot merger applications continue to be approved by the
Community Planning & Building Director.
No development participated in the density bonus or setback incentive in the commercial or multi-family districts.
The City did not pursue a lot merger incentive program for the commercial districts. Density bonus regulations continue to provide the greatest incentive.
Most lot merger applications were for single building sites comprised of multiple legal lots of record. Merging these sites did result in the granting of incentives. New State ADU laws exceed the ADU incentive the City currently offers and should be reevaluated.
Modify to continue lot
merger approval by
Director, simplify
parking requirement
reductions,
reevaluate the
density bonus and
setback incentives.
Appendix D – Review of Previous Housing Element D-8 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program
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Program 3-3.2
Address Infrastructure Constraints. Work cooperatively with the Monterey Peninsula Water Management District (MPWMD) and other regional agencies to address infrastructure limitations (e.g. sewer, water, roads) that affect the ability to serve new housing development. Grant water allocation priority to those projects that assist the City in meeting its share of the regional housing need for lower- and moderate-income households.
During the planning period, the City continued to work with regional agencies such as the Monterey Peninsula Water
Management District (MPWMD) and the Carmel Area
Wastewater District (CAWD) to ensure adequate infrastructure is in place to accommodate new housing and maintenance of existing residential units. Additionally, the City focused on stormwater drainage improvements to reduce flooding. The City’s Public Works Department continues to improve City infrastructure related to road maintenance and storm drains.
The City continued prioritizing water allocation for lower-income units; however, no development applications were received for lower-income housing.
Lack of water resources continues to be a significant constraint to housing development. The City will establish a formal policy to prioritize water allocations to affordable housing projects.
Modify to further
prioritize incentivize
water allocation for
lower income units by
developing a new
City policy.
Goal G3-4: Protect the stability of residential neighborhoods by promoting year-round occupancy and neighborhood enhancement.
Program 3-4.1.a
Permanent Housing. Continue to implement the ordinance adopted in 1988 prohibiting short-term, transient rentals and timeshares of residential dwellings in the R-1 District.
The City continued to enforce the prohibition of short-term rentals in the single-family residential district. The City continues to use Host Compliance as part of the ongoing enforcement. On average, 27 violation letters were mailed annually during the planning period.
A significant percentage of single-family homes continue to remain vacant for part of the year due to second home
ownership.
During the planning period, the City enforced the provisions of the Timeshare Ordinance and made minor updates to the
Ordinance to increase clarity. One enforcement action was taken against a timeshare company during the planning period.
Modify to explore
methods to raise
funds including
establishing an
Affordable Housing
Trust Fund, from
vacant units to an
affordable housing
fund, property tax
reduction or ADU
incentive program.
Appendix D – Review of Previous Housing Element D-9 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program
Number
Programs/Actions
[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element] Achievements/Effectiveness
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Program 3-4.1.b
Conversion of R-1 Motels. Continue to allow conversion of R-1 motel units into permanent residences with the transfer of vacated rooms to the commercial district.
During the planning period, the City allowed the conversion of R-1 motels to permanent residences. Specifically, the Happy Landing Inn was converted to a permanent residence during the planning period. Additionally, a change in ownership of the Carmel Resort Inn resulted in a development application to downsize the footprint of the hotel property and construct 8 new single-family dwellings. Two of the 8 homes have been
approved by the Planning Commission.
Modify to better
incentivize the
program to
encourage MFD.
Program 3-4.2.a
Neighborhood Compatibility. Continue to enforce height, coverage and floor area standards to ensure that new construction and remodels do not present excess visual mass or bulk to public view or to adjoining properties.
Continue to enforce design standards which ensure that buildings relate to a human scale and that they avoid use of oversize design elements that make them appear dominating or monumental. Continue to require that projects not meeting adopted design guidelines be reviewed by the Planning Commission.
The City continues to review new construction for compatibility with the existing neighborhood. In 2021, the City received 26 new Track 2 Design Study planning applications for singlefamily units which required Planning Commission hearings.
Delete.
Program 3-4.2.b
Support Community Organizations. Continue to support neighborhood organizations that promote neighborhood involvement, safety and improvement. When appropriate, develop partnerships with these organizations to promote neighborhood enhancement programs, conduct outreach, and solicit community input.
The City continues to support and partner with neighborhood organizations such as the Carmel Residents Association and the Carmel Foundation and the more recently formed Carmel Cares. These community organizations are an effective means to provide a wide variety of services to residents including meal programs, mobility equipment loans, caregiver support and general information and resources to help navigate the
complex world of services and resources.
Modify to further
support outreach and
education.
Program 3-4.3.a
Neighborhood Preservation Educational Programs. Continue to use education programs to improve public understanding of the City’s rich cultural and design heritage as a means of encouraging compatible housing design within existing neighborhoods, and provide zoning flexibility and incentives to facilitate rehabilitation of historic resources.
The City continues to implement the Historic Preservation Ordinance and the review of properties for historical
significance upon submittal of a planning application. In 2021, the City reviewed 75 residential properties for historical significance and property improvements. The City uses the Historic Building Code to facilitate residential rehabilitation.
Continue.
Appendix D – Review of Previous Housing Element D-10 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program
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[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element] Achievements/Effectiveness
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Goal G3-5: Preserve and increase the supply of housing for lower- and moderate-income households, senior citizens and other special needs groups. Prohibit discrimination in the sale or rental of housing.
Program 3-5.1
Reasonable Accommodation Procedures. Continue to implement Policy C11-01, which describes procedures to provide reasonable accommodation for persons with disabilities in compliance with the provisions of SB 520.
Information on reasonable accommodation procedures shall be provided at City Hall and on the City’s website.
The City continues to promote the reasonable accommodation process to residents on a project specific basis. A number of inquiries were received throughout the planning period; however, few applications were received. All applications were approved. The City is currently evaluating the application fee to ensure it does not discourage the use of the policy.
Modify to reduce
permit fee.
Program 3-5.2
Shared Housing Information. Distribute informational materials from the Monterey County Housing Authority to the Carmel Foundation and display information at City Hall and other public buildings and posted on the City’s website.
The City continues to provide information related to shared housing information at City Hall and on the City’s website. This program has generally been effective and the Carmel
Foundation has over 2,600 members, many of whom live in Carmel and the surrounding region.
Modify to clarify
intent and enhance
education and
outreach.
Program 3-5.3a
Condominium Conversions. Continue to implement condominium conversion policy, which restricts the conversion of apartments to condominiums to preserve the lower-cost rental housing options, typical of apartments, within the City. Apartments cannot be converted to condominiums unless a new apartment is being created to offset the conversion.
The City continues to implement the Condominium Conversion Ordinance to actively preserve and protect existing apartments.
No formal applications for condominium conversions were submitted during the planning period and the Ordinance
appears to be effective in halting conversions.
Continue.
Program 3-5.3.b
Section 8 Rental Assistance. Continue to facilitate use of the Section 8 program in the community by distributing information for the program at City Hall and the Library.
The City continues to provide information regarding Housing Choice Voucher (Section 8) rental assistance at City Hall, on the City’s website, and through the library.
Continue.
Appendix D – Review of Previous Housing Element D-11 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program
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[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element] Achievements/Effectiveness
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Program 3-5.3.c
Subordinate Units. The City's Municipal Code allows construction of new subordinate units as a permitted use on lots of 8,000 square feet or greater to provide additional rental housing in the R-1 District to lower-income households. To further encourage the creation of subordinate units, the City will investigate potential amendments such as permitting subordinate units on smaller lots. In addition, the City will implement incentives which may include waiver/reduction of certain fees, priority processing, and reduced parking and setback requirements. The City will provide informational materials on incentives and technical assistance to property owners. The informational materials will be available at City Hall and on the City’s website.
The City has a long history of permitting Subordinate Units (now called Accessory Dwelling Units). The City reviewed the subordinate unit regulations during the planning period and adopted updated regulations to facilitate new dwelling units.
The amended regulations were approved by the California Coastal Commission and incorporated into the City’s Local Coastal Plan. The City is currently working on additional amendments to the regulations in accordance with State law.
During the planning period 36 applications , (in 2021, the City received 18 new applications) for Accessory Dwelling Units (ADUs) were received and continues to issue building permits for ADUs. This program was effective and will be modified to further ;encourage ADUs and Junior ADUs.
Modify to reflect
State Laws governing
ADUs and combine
regulations for
Subordinate Units
and Guest Houses to
clarify regulations.
Allow the use of
ADUs at existing
hotels as a means of
employee housing.
Appendix D – Review of Previous Housing Element D-12 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program
Number
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[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element] Achievements/Effectiveness
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Program 3-5.3.d
Monitor Affordable Housing Stock. Continue to monitor affordable housing projects and work with the owners to preserve affordability through identification of funding sources and/or opportunities for partnerships with other housing providers. Annually monitor the affordable housing stock in the coastal zone to ensure the affordable housing within the coastal zone is being protected and provided as required by Government Code Section 65590. The City will track data on the new construction, demolition, conversion and replacements housing units for low- and moderate-income households within the coastal zone including the following:
• The number of new housing units approved for construction within the coastal zone;
• The number of housing units for persons and families of low- and moderate-income required to be provided in new housing developments either within or within three miles of the coastal zone; • The number of existing residential dwelling units occupied by low- and moderate-income households required either within or three miles of the coastal zone that have been authorized to be demolished or converted; and,
• The number of residential dwelling units for low- and moderate-income persons and families that have been required for replacement (of those units being demolished or converted) within or three miles of the coastal zone.
The City continued to monitor the existing affordable housing stock in partnership with the Carmel Foundation. Other than the defunct Del Dono I and II projects, no new affordable housing units were approved in the Coastal Zone during the planning period. Additionally, no existing affordable units were demolished or converted.
Modify to update the
City database to
better track
affordable housing
and facilitate
monitoring.
Program 3-5.4.a Density Bonus. Review and revise applicable density bonus ordinances to comply with State law.
The City adopted a new density bonus ordinance in
conformance with State requirements. No development took advantage of the density bonus ordinance during the planning period possibly because the regulations are confusing and difficult to apply.
Modify to clarify
regulations.
Appendix D – Review of Previous Housing Element D-13 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program
Number
Programs/Actions
[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element] Achievements/Effectiveness
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Program 3-5.4.b
Housing for Extremely-Low Income Households. Encourage the development of housing units for households earning 30 percent or less of the Median Family Income (MFI) for Monterey County. Specific emphasis shall be placed on the provision of family housing and non-traditional housing types such as single-room-occupancy units and transitional housing. Encourage development of housing for extremely-low-income households through a variety of activities such as targeted outreach to forprofit and non-profit housing developers on at least an annual basis, providing in-kind technical assistance, fee deferrals, expedited/priority processing, identifying grant and funding opportunities, applying for or supporting applications for funding on an ongoing basis, reviewing and prioritizing local funding for developments that include housing for ELI households and/or offering additional incentives to supplement the density bonus provisions in State law.
The City continued to work with developers and promote the construction of affordable housing. Projects that included affordable housing units received expedited review. These included Del Dono I and Del Dono II. However, no applications for lower-income households were submitted during the
planning period.
During the planning period, the construction of Accessory Dwelling Units (ADUs) provided housing opportunities for extremely-low income households.
Group Residential facilities are permitted with the approval of a Use Permit in the R-4 district. Group Residential is defined as Shared living quarters without separate kitchens or bathrooms for each room or unit, including boarding houses, dormitories, and private residential clubs, but excluding guesthouses.
Continue.
Program 3-5.5.a
Reduced Entitlement and Development Fees. Continue to reduce the amount of fees required for projects that provide affordable housing to the extent feasible.
The City continued to waive parking requirements for
apartments in the Central Commercial (CC) District. The City also provides reduced parking in-lieu fees for constructing new residential units in other commercial zones.
Fee studies are conducted every 3 years. Fees are based on staff processing time. Other than the parking in-lieu fee (which has not been collected in years), the Ccity does not impose impact fees.
Modify to reduce fees
for affordable
residential
projects.Continue.
Program 3-5.5.b
Reduced Parking Requirements. Continue to offer reduced parking requirements for affordable housing developments.
In addition, investigate the feasibility and effectiveness of further reducing existing in-lieu fees and amending the existing shared parking program to include housing units in affordable housing projects.
The City continued to offer reduced parking standards for affordable housing and senior housing units. The City also waived on-site parking requirements and payment of parking in-lieu fees for new apartments in the Central Commercial (CC) zoning district. Additionally, the City passed an Ordinance fixing the parking in-lieu fee at the 2003 rate until further notice. The regulations can be confusing and the City will work to better clarify the program.
Modify.
Appendix D – Review of Previous Housing Element D-14 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program
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Programs/Actions
[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element] Achievements/Effectiveness
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Program 3-5.5.c Expedited Processing Procedures. Continue to offer expedited review procedures for residential projects that include affordable housing units.
The City continues to expedite the review of projects that include an affordable housing component. Specifically, the City expedited the review of two housing projects, Del Dono I and Del Dono II, which included 16 residential units with 2 deedrestricted moderate-income units. Unfortunately, a lack of construction funding halted the project's construction, and the properties are now under new ownership. A revised housing proposal that includes 12 apartments is under review and does not currently include any affordable housing and therefore does not qualify for expedited processing. The expedited regulations can be confusing and the City will work to better clarify the program.
Modify to clarify and
refine expedited
processing
procedures.
Program 3-5.6.a
Energy Conservation and Green Building. Continue to review applications for new construction and substantial alterations taking into consideration solar orientation and access to sunlight. Additionally, continue to require compliance with current state building standards for energy efficiency in all new homes.
The City continues to promote energy conservation through the building plan check review process. The City will continue to implement the energy conservation requirements set forth in the Building Code and look for opportunities to promote energy conservation at City Hall and on the City website.
Modify to enhance
outreach efforts.
Program 3-5.6.b
Water Conservation. Enforce the Water Management Program and provide information to the community on water conservation retrofits and best practices. In addition, provide information on and promote water conservation education and retrofit rebates provided by the Monterey Peninsula Water Management District.
The City continues to promote water conservation in
coordination with the Monterey Peninsula Water Management District. The City will continue these efforts and look for opportunities to further promote water conservation measures.
Modify to enhance
outreach efforts.
Program 3-5.7
Fair Housing Services. The California Department of Fair Employment and Housing and the Conflict Resolution and Mediation Center of Monterey County provide fair housing services and information. These agencies advise persons in need of information on housing and employment, mediate landlord/tenant disputes and research complaints about discriminatory housing practices. The City shall coordinate with these agencies to provide printed information about fair housing services at City Hall, on the City’s website, and in other public buildings. The City shall also refer inquiries related to fair housing to these agencies.
The City provides fair housing information to provide to the public at City Hall and on the City website and will continue to maintain and update the information. The City will continue to maintain, update and look for opportunities to expand the information available to the public.
Modify to enhance
outreach efforts.
Appendix D – Review of Previous Housing Element D-15 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program
Number
Programs/Actions
[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element] Achievements/Effectiveness
Continue/
Modify/
Delete in 6th
Cycle
Program 3-5.8
Zoning for Transitional and Supportive Housing. In compliance with SB 2, the City will continue to allow transitional/supportive housing as a residential use, subject only to those requirements of other residential dwellings of the same type in the same zone.
The City did not receive any inquiries regarding transitional or supportive housing during this planning period.
Continue and update
the Municipal Code.
SOURCE: City of Carmel-by-the-Sea
Appendix D – Review of Previous Housing Element D-16 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft Production of Housing
The 2015 Housing Element identified a Regional Housing Needs Allocation of 31 housing units in the City of Carmel-by-the-Sea between January 1, 2015 and June 30, 2023. The RHNA was divided into the following income categories:
7 units affordable to extremely low- and very low-income households; 5 units affordable to low-income households;
6 units affordable to moderate-income households; and 13 units affordable to above moderate-income households.
Table D-2 provides a summary of housing units produced in the city from 2015-2023. During the 2015–2023 planning period, 18 new units were added to the City’s housing stock, achieving approximately 58 percent of the City’s RHNA. This indicates that residential growth was slower than anticipated, which may be in partlikely due to the lack of available water, the COVID pandemic, the cost of land, and the overall lack of support for new housing development in the community. All 18 units produced were affordable to households with above-moderate incomes.
Table D-2 Housing Units Produced, 2015-2023
Affordability New Construction
Need
Housing Units
Produced Percent Achieved
Very Low 7 0 0.0%
Low 5 0 0.0%
Moderate 6 0 0.0%
Above Moderate 13 18 100.0%
Total 31 18 58%
SOURCE: HCD Annual Progress Report Dashboard (as of May 19, 2023).
NOTE: This table should be updated prior to finalization to account for units through January 1, 2024.
Preservation of “At Risk” Units
The California Housing Partnership Preservation Database is the state’s most comprehensive source of information on subsidized affordable housing at risk of losing its affordable status and converting to market-rate housing.1 According to the database, there are no federal or state assisted units in Carmel-by-the-Sea. Currently, there are no affordable housing units at risk of conversion to market rate.
1 This database does not include all deed-restricted affordable units in the state, so there may be at-risk assisted units in a jurisdiction that are not captured.
Attachment 1
Appendix D – Review of Previous Housing Element D-17 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft Rehabilitation of Existing Units
The 2015 Housing Element identified an objective of rehabilitating a total of 16 affordable units and 784 above-moderate-income units in the 2015–2023 planning period. The City issued over 250 building permits on average each year that permitted re-roofs, water heater upgrades and replacement, electrical upgrades, window repairs and replacements, and remodels.
D.4 Summary
Like many communities, the City of City of Carmel-by-the-Sea experienced strong development of single-family homes, Accessory Dwelling Units and conversion of second-floor commercial space to residential units during the 2015–2023 planning period. Of the 31 units it identified in the City’s RHNA, the City permitted 18 units, (approximately 58 percent of the total), all of them for above moderate-income households; however, some of these units are ADUs which represent housing opportunities for lower-income housing.
The goals, objectives, and policies identified in the 2015 Housing Element were appropriate for the 2015-2023 timeframe because they complied with the program requirements mandated by State law at the time. The 6th Cycle Housing Element will be revised to address new state mandates and to put the City of Carmel-by-the-Sea on track to fully meets its housing obligations.
Attachment 1
Appendix D – Review of Previous Housing Element D-18 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft This side intentionally left blank.
Attachment 1
List of Contacted Organizations E
APPENDIX
Attachment 1
Table of Contents
APPENDIX E LIST OF CONTACTED ORGANIZATIONS ........................................................ 1 E.1 Introduction ............................................................................................................................... 1 E.2 List of Contacted Organizations............................................................................................. 1 E.3 City Contact List........................................................................................................................ 4 E.4 Tribal Consultation.................................................................................................................... 5 E.5 Service Organizations ............................................................................................................... 7 E.6 Additional Outreach ................................................................................................................. 8 Attachment 1
Appendix E- List of Contact Organizations E-1 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Appendix E
List of Contacted Organizations
E.1 Introduction
This aAppendix provides the names of organizations, tribal units, and other stakeholders that were contacted during the preparation of Carmel-by-the-Sea’s 6th Cycle Housing Element. In addition to these contacts, the City created a dedicated website called: “HOME Carmel-by-the-Sea” which can be found at https://homecarmelbythesea.com. This website provides a portal to all of the Hhousing Eelement- related communitypublic engagement activities that were available to members of the public during the update process. This includes information on Hhousing eElement basics, site surveys, stakeholder surveys, and materials from community workshops.
E.2 List of Contacted Organizations
This section provides contact information for organizations and agencies in the Monterey Bay Area, stakeholder property owners, and interested parties that were contacted during the housing elementHousing Element preparation.
Organizations and Agencies
Association of Monterey Bay Area Governments
24580 Silver Cloud Court
Monterey, CA 93940
T: (831) 883-3750
Heather Adamson
Association of Monterey Bay Area Governments (ambag.org) Monterey Peninsula Water Management District
5 Harris Court, Building G
Monterey, CA 93940
T: (831) 658-5601
Stephanie Locke
Monterey Peninsula Water Management District (mpwmd.net) Carmel Area Wastewater District
3945 Rio Rd.
Carmel, CA 93922
T: (831) 624-1248
Carmel Area WasteWater District (cawd.org)
Carmel Chamber of Commerce
Attachment 1
Appendix E – List of Contacted Organizations E-2 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Ocean Ave. between Junipero and Mission
Inside Carmel Plaza 3rd Floor
Carmel, CA 93921
(831) 624-3877
Carmel Chamber of Commerce
Carmel Foundation
SE Corner of 8th Ave. and Lincoln St.
Carmel, CA 93923
T: (831) 624-1588
Holly Zoller
www.carmelfoundation.org
Landwatch Monterey County
306 Capitol Street #101
Salinas, CA 93901
T: (831) 759-2824
Jose Torres
Monterey County - LandWatch
Stakeholder Property Owners
Esperanza Carmel, Christopher Mitchell;
Carmel Realty, Bill Mitchell;
Pine Inn, Richard Gunner & Dave Tipton;
Bruno’s, Thomas Sweeney,
3 Garages, Judie Profeta;
First Church of Christ, Kent Wadsworth;
Café Carmel, Greg Kraft and Kim Marie Archer;
Wells Fargo, Brian Buhowsky;
CGBG, Montag Ivestor;
Carmel Foundation, Holly Zoller;
Attachment 1
Appendix E – List of Contacted Organizations E-3 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Carmel Presbyterian, Bob Spencer;
Yafa Property, Sandy Freschi;
Levett Properties, Denny Levett & Jeanne Cox Levett;
Doud Arcade, John Plastini;
Linggi Building / Flaherty's, Alan Buchwald;
Interested Parties
Eric Miller Architects;, Eric Miller;
Silverie Properties, Dan Silverie III
Silcon Constructors, Dan Silverie IV;
Winter & Co, Nore Winter
Carmel Plaza, Kristin Torrice;
Carmel Residents Association, Nancy Twomey;
Carmel Preservation Association;
Carmel Heritage Society;
Monterey Bay AIA, Executive Director;
Builders Exchange, Sandy Steele; and
Christ Tescher Construction, Chris Tescher;
Carmel Boutique Inns/Vagabond House Inn, Amanda Levett; Jody LeTout;
Walker and Reed, Jim Heisinger;
American Legion, Gerry Paratore;
Cal-Clark Farms, Stu Clark;
Bennett Sculpture Carmel, Ashley Stoddard;
Sue McCloud;
Su Vecino, Shari Polovneff;
Vesuvio, Little Napoli, Carmel Bakery, Rich Pepe;
Attachment 1
Appendix E – List of Contacted Organizations E-4 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Luca/L’auberge/Carmel Beach Hotel, David Fink;
Hakim, Jack Hakim;
Mandurrago & Associates, John Mandurrago;
Forge in the Forest, Greg Profeta
Classic Hotels, Mary Crowe;
Carmel Lodge, Mark Stilwell;
Dyar Architects, Erik Dyar;
Thomas Bateman Hood Architects, Thomas Hood;
Justin Pauly Architects, Justin Pauly;
Cushman Wakefield Properties, Michael Schoeder,
Fred Kern;
Lewis Builders, Scott Julian;
Beesley Realty, .Ben Beesley;
Visit Carmel, Amy Herzog;
Jeanne Cox Levett;
Gerard Rose;
Franklin Williams; and
Catherine and John Compango.
E.3 City Contact List
This section provides contact information for City officials that were contacted duringinvolved with housing elementHousing Element preparation.
Elected and Appointed Officials
City Council
Dave Potter, Mayor
Payor ProTem/Housing Ad Hoc Member, Bobby Richards
City Councilmember/Housing Ad Hoc Member, Karen Ferlito City Councilmember Jeff Baron
City Councilmember, Alissandra Dramov
Planning Commission
Michael LePage
Stephanie Locke
Chris Bolton
Robert Delves
Attachment 1
Appendix E – List of Contacted Organizations E-5 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Erin Allen
Historic Resources Board
Eric Dyar
Karyl Hall
Jordan Chroman
Kathy Pomeroy
Esther Goodhue
City Staff
Brandon Swanson, Director of Community Planning & Building; Marnie Waffle, AICIP, Principal Planner;
Katherine Wallace, AICP, Associate Planner;
Chip Rehrig, City Manager;
Robert Harary, Public Works Director;
Gaudenz Panzholzder, Fire Chief; and
Ashlee Wright, Library and Community Activities Director.
E.4 Tribal Consultation
This section provides contact information for all tribal consultation during housing elementHousing Element preparation.
Irene Zwierlein, Chairperson
Amah Mutsun Tribal Band of Mission San Juan Bautista
3030 Soda Bay Road
Lakeport, CA, 95453
Valentin Lopez, Chairperson
Amah Mutsun Tribal Band
P.O. Box 5272
Galt, CA 95632
Tony Cerda, Chairperson
Costanoan Rumsen Carmel Tribe
244 E. 1st Street
Pomona, CA, 91766
Rudolph Rosales (Ulax Huchumas)
Indigenous Peoples Consultant
Esselen Nation
Attachment 1
Appendix E – List of Contacted Organizations E-6 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 P.O. Box 647
Monterey, CA 93942
Susan Morley, Cultural Resources
Esselen Tribe of Monterey County
3059 Bostick Avenue
Marina, CA 93933
Tom Little Bear Nason, Chairman
Esselen Tribe of Monterey County
P. O. Box 95
Carmel Valley, CA, 93924
Ann Marie Sayers, Chairperson
Indian Canyon Mutsun Band of Costanoan
P.O. Box 28
Hollister, CA, 95024
Kanyon Sayers-Roods, MLD Contact
Indian Canyon Mutsun Band of Costanoan
1615 Pearson Court
San Jose, CA, 95122
Isaac Bojorquez, Chairman
Kakoon Ta Ruk Band of Ohlone-Costanoan Indians of the Big Sur Rancheria PO Box 8355
Woodland, CA, 95776
Christanne Arias, Vice Chairperson
Ohlone/Costanoan-Esselen Nation
519 Viejo Gabriel
Soledad, CA, 93960
Louise Miranda-Ramirez, Chairperson
Ohlone/Costanoan-Esselen Nation
P.O. Box 1301
Monterey, CA, 93942
Dee Dee Ybarra, Chairperson
Rumsen Am:a Tur:ataj Ohlone
14671 Farmington Street
Hesperia, CA, 92345
Kenneth Woodrow, Chairperson
Wuksache Indian Tribe/Eshom Valley Band
1179 Rock Haven Ct.
Salinas, CA, 93906
Attachment 1
Appendix E – List of Contacted Organizations E-7 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 E.5 Service Organizations
Housing Authority of the County of Monterey
123 Rico Street
Salinas, CA 93907
(831) 775-5000
Monterey County Department of Social Services
1000 South Main Street
Salinas, CA 93901
(831) 755-4448
Catholic Charities Dioceses of Monterey
922 Hilby Avenue, Suite C.
Seaside, CA 93955
Monterey Peninsula (831) 393-3110
Salinas Valley (831) 422-0602
United Way Monterey County
232 Monterey Street
Suite 200
Salinas, CA 93901
(831) 372-8026
CHISPA, Inc.
295 Main St. #100
Salinas, CA 93901
(831) 757-6251
Mid-Peninsula Housing Coalition
303 Vintage Park Drive
Suite 250
Foster City, CA 94404
(650) 356-2900
[email protected]
Habitat for Humanity Monterey Bay
108 Magnolia Street
Santa Cruz, CA 95062
(831) 469-4663
www.habitatmontereybay.com
ECHO Fair Housing Services
580 Pacific Street
Monterey, CA 93940
(831) 566-0824
https://www.echofairhousing.org/fair-housing-services.html Central Coast Center for Independent Living
Attachment 1
Appendix E – List of Contacted Organizations E-8 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 318 Cayuga Street
Suite 208
Salinas, CA 93901
(831) 757-2968
https://www.cccil.org/
Center for Community Advocacy
22 West Gabilan Street
Salinas, CA 93901
(831) 753-2324
https://cca-viva.org/
The Salvation Army Good Samaritan Center
1491 Contra Costa
Seaside, CAalifornia 93955
(831) 899-4911
https://montereypeninsula.salvationarmy.org/
Hope Services
1144 Fremont Blvd.,
Suite D
Seaside, CA 93955
(831) 393-1575
https://www.hopeservices.org/
Coalition of Homeless Service Providers
1942 Fremont Boulevard
Seaside, CA 93955
(831) 883-3080
https://chsp.org/
Monterey County Stand Down for Homeless Veterans
https://www.montereystanddown.org/
Diocese of Monterey
425 Church Street
Monterey, CA 93940
(831) 373-4345
https://dioceseofmonterey.org/
E.6 Additional Outreach Website: “Housing Opportunities Made Easier (H.O.M.E.) for Carmel-by-the-Sea” (homecarmelbythesea.com) in operationlaunched April 5, 2023. The website is presented in English with surveys in English and in Spanish. Information continues to be posted on this website;
Housing Element Website Information Published: April 2023, May 2023, June 2023; Attachment 1
Appendix E – List of Contacted Organizations E-9 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 April, 2023 – ongoing: E-Notification informing the public to, “Visit our Dedicated Housing Element Website” was sent in April 2023 and included in subsequent “City Administrator Friday Letter” e-notifications on a near-weekly basis;
November 17, 2022: Housing Element Introduction and Overview Ad Hoc Housing Committee Community Mmeeting on November 17, 2022provided a Housing Element Introduction and Overview;
February 7, 2023: City Council meeting to review the Housing Feasibility Study by ECONorthwest and enter into contract with EMC Planning Group for Housing and Safety Element updates;
March 28, 2023: a Housing Ad Hoc Committee Community Meeting of the Housing Element was conducted. The meeting provided an overview of the housing feasibility study authored by ECONorthwest and constraints that limit housing production; April 6, 2023: Housing Ad Hoc Committee Community Meeting addressed 5th cycleCycle accomplishments and goals, programs, and policies;
May 24, 2023: Housing Ad Hoc Committee Community Meeting discussed the importance of equity, housing needs assessment information, and potential 6th cycleCycle programs, and provided some strategies for sites and ways to provide feedback throughout this process; July 11, 2023 City Council meeting to provide strategic direction on public comment received; Advertisement in the local newspaper about the housing element to spark interest in the community to become involved;
City staff have spoken with property owners interested in the housing element process and about their interests in potentially redeveloping private property; June 15, 2023: a Joint City Council and Planning Commission Housing Element WorkshopSpecial Meeting hosted by the Housing Ad Hoc Committee was held to discuss the draft Housing Element and the 30-day public comment period and to provide an opportunity for the public to give verbal feedback/comments on the draft Housing Element; July 11, 2023:, a Special meeting of the City Council to provide strategic direction related to public comment received; and
August 1, 2023: City Council to review revised draft Housing Element before submittal to HCD; The City has implemented other methods of involvement for community members, including:
the “Housing” email Listserv, announcements listed in the “Friday Letter” and “Carmel Pine Cone”, and a survey from community members.
Advance (10-day minimum) public notice of all scheduled Housing Ad Hoc and Council meetings published in the local newspaper, The Carmel Pine Cone; Attachment 1
Appendix E – List of Contacted Organizations E-10 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 City staff have notified all property owners of identified sites via U.S. mail and - where e-mail addresses were known - have e-mailed property owners to encourage potential redevelopment of private property; and;
The City has implemented varied methods of involvement for community members, including:
the HOME Carmel-by-the-Sea website, the Carmel-by-the-Sea City website/Long-Range Planning page, “Housing” email Listserv, “City Council” email listserv, announcements published in the City Administrator’s “Friday Letter” and vlog, public notices in The Carmel Pine Cone, a staffed table at the local Farmer’s Market; a Community Housing Stakeholder Survey made available in both English and Spanish, and seven (5) community meetings specific to the housing elementHousing Element topic and three (3) regular City Council meetings with an agendized housing elementHousing Element topic completed prior to submission of the Draft housing elementHousing Element to HCD.
Attachment 1
Appendix E – List of Contacted Organizations E-11 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 This side intentionally left blank.
Attachment 1
Attachment 1
ECONorthwest Feasibility Study
APPENDIX
F
Attachment 1
Attachment 1
ECONorthwest Study Background
On May 20, 2022, the City of Carmel-by-the-Sea entered into a professional services agreement with ECONorthwest to prepare a housing feasibility study. The study informs the analysis required as part of the 6th Cycle Housing Element update. The feasibility study evaluated current market conditions, the City’s development standards related to housing, and potential opportunities for housing development. The study was not meant to be exhaustive. Instead, it starts the conversation about development opportunities and constraints within the City of Carmel-by-the-Sea.
Attachment 1
Attachment 1
ECONorthwest | Portland | Seattle | Los Angeles | Eugene | Bend | Boise | econw.com 1 DATE: January 27, 2023
TO: Brandon Swanson, City of Carmel-by-the-Sea
FROM: Chris Blakney, ECONorthwest
SUBJECT: Housing Element Analysis for the City of Carmel-by-the-Sea Introduction
In the State of California, local jurisdictions maintain a General Plan that serves as a blueprint for its long-term vision. Among the required “elements” of a general plan is the Housing Element. The Housing Element is the only element that state law requires be updated on a periodic cycle. The California Department of Housing and Community Development (HCD) is responsible for overseeing Housing Element updates. Every eight years, HCD allocates a share of projected statewide housing need to regions across the state. This is called the Regional Housing Need Allocation (RHNA). The state is currently in the sixth of these cycles. The sixth cycle will cover the June 30, 2023 to December 15, 2031 planning period for the City of Carmelby-the-Sea [Carmel].
The City is a part of the Association of Monterey Bay Area Governments (AMBAG). AMBAG is responsible for developing a methodology for allocating its regional share of housing need to its individual jurisdictions. The Final Sixth Cycle (2023-2031) Regional Housing Needs Allocation plan, completed in October 2022, determined that Carmel’s share of regional housing need is 349 units; 187 of these units must be suitable to accommodate lower income households. It is important to note that RHNA targets reflect zoned capacity, not a construction quota.
Figure 1: Regional Housing Needs Allocation, Fifth and Sixth Cycle Source: California Department of Housing and Community Development1 Cycle Income Level Total
Very Low Low Moderate Above Mod.
RHNA5 (2015-2023) 11 5 6 13 31
RHNA6 (2023-2031) 113 74 44 118 349
Sixth Cycle Income and Rent Ranges (County of Monterey) Income Levels $0 -
$45,050
$45,050 -
$72,080
$72,080 -
$108,120 $108,120 +
Rent Level/mo $0 -
$1,126
$1,126 -
$1,802
$1,802 -
$2,703 $2,703 +
While the City satisfied its Fifth Cycle RHNA planning target and received a certification for the 2015-2023 planning period, the market did not produce all 31 planned units. This underscores a considerable hurdle for the City in the Sixth Cycle which represents a 1,000% increase in its housing target for the cycle. This capacity is particularly challenging because Carmel does not have a deep supply of vacant land and presently lacks water resources to accommodate significant growth. This is further complicated by a parcelization pattern that includes many 1 https://www.hcd.ca.gov/docs/grants-and-funding/inc2k22.pdf Attachment 1
ECONorthwest 2
small taxlots and market conditions that support high values for existing structures, making redevelopment improbable.
Executive Summary
As City officials begin to prepare for the Housing Element Update, they want to better understand some of the challenges to development and opportunities for adding housing capacity. This analysis summarizes our work exploring market conditions, observations in the City’s zoning code, and sites/locations that are most likely to have development potential.
While this report does not constitute a site alternatives analysis suitable for the City’s Housing Element Update, it may provide insights into the development challenges, opportunities, and candidate sites for meeting the City’s RHNA obligation in the Sixth Cycle.
Although renovation and replacement construction is common in Carmel, the City has had very limited net-new residential development during the Fifth Cycle (2015-2023) RHNA planning period2. This has been in part a function of barriers in the current zoning code, access to water rights, market conditions, and the existing development pattern in the City’s commercial core.
In this work, we have found that existing development standards, such as a two-story heigh limit, effectively prohibit achieving maximum allowed residential densities. Another challenge is a parcelization pattern of smaller lots with existing moderate scale commercial development with well-performing tenants. Despite these challenges, our analysis identified 17 sites in or adjacent to the commercial core that could be viable candidates for redevelopment or densification. To be sure, for development to occur on these sites—specifically development serving lower income households—the City will need to take action to remove barriers and identify resources to support financial feasibility. Actions recommended for consideration include financial subsidies, disposition of City-owned land, targeted rezoning of specific sites adjacent to the existing commercial zones, and amendments to development standards to remove development constraints.
Local Context
Carmel-by-the-Sea is a small coastal community located on the Monterey Peninsula.
Incorporated in 1916, the City is among the most affluent communities in California. The City has a strong residential character and a centralized business district. Carmel’s architecture in its business district has a distinct character, having been built out during the 1920s and 1930s. Over 45 properties in the commercial district are considered historical resources.
Carmel is also a popular coastal tourism and second home destination. There are over three dozen hotels in Carmel and roughly 40 percent of all housing units are for seasonal, recreational, or occasional use—a rate ten times the national average. 3 This dynamic has created
a housing market that severely lacks affordability. Forty-seven percent of all households that 2 According to Carmel’s most recent Annual Progress Report to HCD. 3 U.S. Census Bureau. American Community Survey 5-Year Estimates (2016-2020); Table B2004. (See https://data.census.gov/)
Attachment 1
ECONorthwest 3
rent (vs. own) their homes in Carmel are cost burdened, spending greater than 20 percent of their income on housing. Among these, a full 25 percent of renter households are severely cost burdened, spending 50 percent or more of their income on housing. 2,102 individuals work in Carmel, of whom only 2.6 percent live in Carmel.4
4 U.S. Census Bureau Longitudinal Employer-Household Dynamics Data (See https://lehd.ces.census.gov/) Attachment 1
ECONorthwest 4
Figure 2: Carmel-by-the-Sea Zoning Map on Original Plat Source: City of Carmel-by-the-Sea (see https://planningsites.org/CarmelPlanning/) 8TH AVE
7TH AVE
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BB
CC
NN
HH
AA
GG
111
114
118
112
116
115
119
113
117
MM
105
147
137
104
103
101
120
132
135
138
102
100
141
133
109
149
128
143
107
108
129
136
145
130
142
148
131
134 146
144
8 1
5 4
6 7 8
9 11
1 2
10 4
4 3
3 7
2 5
5 3
2 6 17 7
10 12
2 3
1 1
9 22
8 3
9 8 2
2 3
4 5 7
4 5 7 8
9 25
13 4
5 1
15/16
6 2
4 6
5 6
8 9
1 1
2 7
7 3
1 1 4 5 6 9 3 2
3 4
8 8
5 1
8 1
1 9 1
1 2
6 2
8 8
11 1
5 9
3 1
1 4 10
1 7
3 5 1
4 2
2 5
8 6
9 1
2 7
7 1
9 2
1 4
1 5
1 3
2 3
9 6
7 6
6 10
2 4
4 3 3
2 1
5 1
4 3 9
4 6
8 3
5 4 8
1 8
5 3
7 2
1 4
2 23
11 6
4 9
4 1
3 7
1 9
9 7
5 3
10 2
8 5
1 5
2 2
6 9
7 8
8 5
1 9
4 24
6 8
5 14
7 1
2 7
5 5
3 7
1 3
2 1
6 9
1 3
3 2
7 3
2 3
7 2
2 4
26 4
4 8
5 5
11 6 13
19 18
3 2
27 6
2 1 2 3 4 6 7
11 9
5 12
8 4 6 8
8 5
1 6
7 1
3 4
7 4
2 2
8 9
6 3
9 3 5 7
7 4
3 9
2 1
2 17
14 2
7 8
5 2
6 2
1 5
9 1
3 2
1 1
2 4
5 2
6 6
7 2
9 1
7 2
6 1
9 7
7 1
2 20
2 10
1 1
3 8
1 2
2 1
8 2
10 2 2 1
1 2
9 4
2 12
3 6
2 1
1 4
4 4
1 1
1 3
1 9
1 5
2 10
9 1
3 4
1 2
3 1
1 2
9 3
21 11
8 1
3 1
9 1
2 2
3 2
4 2
6 2
2 2
3 9
1 5
8 2
9 5
6 7
9 9
6 8
6 8
2 1
1 1
2 2
6 2
5 9
1 4
9 2
2 1
5 6
4 6
1 1
9 1
6 9
8 14
2 2
1 1
1 9
2 9
4 1
6 2
7 5
8 3
5 2
9 1
9 4
2 1
4 8
9 2
4 5
2 3
1 1
1 3
7 1
4 4
10 2
2 5
9 2
7 2
4 4
6 2
5 2
5 7
1 2
8 4
6 5
3 1
1 3
1 3
3 4
1 2
3 9
7 2
1 2
7 8
2 7
2 1
3 6
9 7
5 1
7 2
6 8
3 7
5 5
5 2
5 7
9 6
1 7
7 1
1 9
5 2
8 6
9 1
2 7
2 2
6 9
7 7
6 7
1 2
7 1
1 2
16 7
1 7
2 2
4 1
1 5
8 2
4 2
3 7
5 5
9 1
9 2
7 2
6 2
6 3
5 8
1 1
8 9
8 7
8 9
7 5
4 4
5 8
4 1
8 7
5 9
2 2
5 3
1 1
9 1
7 2
6 8
8 4
7 9
5 7
8 7
4 4
1 9
2 3
8 9
6 8
2 7
7 2
4 1
5 3
9 3
1 8
8 5
6 9
9 5
3 6
8 6
8 9
3 3
7 5
2 6
5 4
1 3
8 3
1 2
3 3
6 2
3 4
4 6
7 7
9 2
9 8
2 4
7 6
4 1
6 3
7 9
6 3
5 3
7 9
6 3
5 6
4 7
3 1
3 8
5 9
3 8
1 2
6 6
7 3 5
7 6
8 3
9 7
9 9
3 3
8 4
1 4
2 6
7 1
1 5
3 3
1 9
6 2
9 9
7 8
4 4
1 1
3 2
1 4
1 7
7 7
8 5
8 1
9 5
7 5
2 9
5 9
9 3
6 2
1 2
7 4
3 8
3 5
9 7
8 6
3 8
6 3
4 4
1 9
5 4
5 1
3 3
9 9
9 5
7 4
29 7
8 4
7 9
5 5
5 6
9 5
7 4
2 8
7 9
3 9
8 4
5 5
6 30
9 6
7 7
6 9
5 5
9 3
4 5
16 4
5 9
4 9
9 11
8 3
1 5
1 7
2 7
9 4
6 3
8 5
9 6
5 5
2 8
9 3
6 3
1 7
8 2
5 8
6 4
7 3
2 4
9 6
1 4
3 5
6 7
1 3
4 5
3 7
8 3
7 1
4 4
7 4
1 6
6 9
3 3
7 6
1 9
3 3
9 1
4 5
8 4
6 3
9 9
6 4
8 5
1 5
7 7
7 1
8 9
6 1
3 6 8
9 9
7 8
12 1
2 1
4 6
3 5
3 6
5 8
3 8
5 7
3 8
6 2
7 8
9 5
7 4
7 5
2 6
8 4
8 3
6 6
9 3
8 9
7 9
3 5
4 8
9 9
2 5
4 6
5 6
8 1
6 6
5 1
6 3
4 3
4 3
3 5
5 8
17 2
7 11
5 7
3 7
9 6
8 4
8 8
1 1
6 2
7 9
3 30
7 6
7 1
1 6
9 4
4 5
7 7
1 7
2 4
5 8
1 9
7 4
7 3
5 7
8 9
4 2
6 3
1 6
6 8
2 6
9 5
3 13
4 2
5 6
5 4
2 9
6 5
6 7
4 6
3 1
8 6
8 2
5 5
8 7
3 7
6 4
9 6
6 9
3 4
5 8
5 3
1 9
8 6
6 6
3 3
7 5
9 6
3 5
9 4
6 1
9 8
7 9
9 7
2 3
8 3
8 8
7 8
5 9
2 5
3 5
7 8
4 2
2 7
1 3
3 5
3 8
4 5
6 9
5 2
8 6
12 2
5 8
8 5
3 5
2 6
3 4
5 7 4 3
4 1
7 3
7 6
4 8
8 8
3 3
8 8
4 1
9 4
5 3
1 4
5 2
9 8
5 7
5 8
7 2
4 9
9 9
6 7
9 7
19 3
9 4
7 3
6 7
4 7
9 9
6 8
2 8
6 15
9 2
9 6
2 5
4 4
7 8
3 4
6 8
1 4
5 8
4 5
8 5
3 9
9 8
8 4
6 7
3 7 3
7 1
4 8
6 4
3 6
8 7
3 20
1 6
7 9
2 7
4 6
5 4
9 2
4 2
3 2
4 1
7 2
3 9
3 3
4 4
5 7
4 6
2 8
5 8
6 4
7 9
4 8
6 5
2 3
1 8
8 3
6 5
3 3
8 9
8 2
5 9
4 6
7 4
5 3
7 7
8 9
6 3
4 3
4 2
4 7
6 5
6 9
2 6
9 6
9 7
2 9
7 6
9 8
6 3
2 5
8 6
6 8
5 5
5 5
4 2
6 6
5 8
3 3
5 7
9 3
5 7
5 4
3 5
3 6
8 8
8 6
4 5
8 6
4 9
8 3
2 8
3 6
5 8
6 6
2 7
5 7
3 4
3 5
8 4
6 8
4 8
7 3
5 8
8 4
2 6
5 7
8 6
6 4
4 9
9 8
4 4
4 5
6 8
6 4
5 6
4 4
1 3
4 3
7 6
7 8
7 6
3 8
5 7
13 5
6 8
4 8
3 7
4 2
4 1 9
19 2
5 6
6 8
4 3
5 4
4 8
6 5
8 4
4 9
5 9
6 8
2 9
4 2
7 8
6 6
18 6
8 7
7 2
5 8
7 4
8 5
6 7
6 1
3 36
8 4
4 14
10 6
6 8
9 8
13 20
10 28
32 8
4 15 34
4 6
1 1
2 9
14 31
11 2
13 1
20 7
11 22
11 14
1 1
9 8
18 24
11 15
12 10
1 34
9 12
21 13
18 17
10 13
5 1
24 9
1 12
10 11
10 16
13 14
11 33
12 34
19 13
1 31
12 11
15 1
1 20
1 11
19 15
2 10
6 26
16 11
1 10
6 6
4 4
15 31
1 1
35 14
13 17
8 31
4 4
15 11
14 1
18 18
14 5 9
30 1 1
11 37
1 7
12 1
4 7
3 10
3 13
8 8
28 15
13 3
9 3
21 12
17 10
9 21
2 7
2 4 6
9 28
8 36
3 9 1 7
7 3
40 3
6 10
11 1
5 9
12 19
7 8
9 35
9 4
6 10
3 29
14 13 10
9 14
43 1
5 5
22 6
3 5 7
2 5
8 4
7 1
11 19
11 1 4
7 5
19 8
1 3
6 13
5 4 2
21 11
11 5
18 19
14 20
20 9
11 14
2 7
10 7
1 14
37 14
11 11
13 20
19 33
20 11
14 19
24 12
22 11
21 12
11 11 12
12 19
20 11
10 14
11 13
19 19
33 11
12 12
21 12
11 11
20 24
19 17
11 31
16 18
18 10
32 20
38 12
16 16
19 11
11 29
10 23
19 22
11 13
23 11
17 14
14 16
30 15
12 20
11 14
21 11
10 13
10 11
19 10
14 12
18 20
20 16
22 11
11 11
2 13
15 12
11 20
21 11
14 14
11 19
29 10
11 11
19 17
20 14
34 11
13 17
11 14
13 11
21 20
19 11
11 11
10 13
20 28
10 23
12 20
10 16
35 11
11 31
12 31
17 23
11 16
11 22
11 11 11
11 11
18 11
23 17
10 10
10 22
17 12
17 19
11 11
19 12
22 18
15 25
11 11
18 11
11 19
12 22
32 10
11 13
11 14
13 31
41 19
20 24
17 35
13 11
15 11
20 10
11 11 11
11 11
17 19
27 14
20 10
11 18
11 12
13 11
10 19
11 16
20 16
36 17
19 14
11 20
22 14
19 10
11 32
20 17
20 11
19 15
13 11
23 11 11
14 10
12 13
11 11
33 21
10 18
17 13
15 22
13 11
11 19
11 27
17 13
26 27
19 20
13 27
20 20
11 12
13 13
20 19
21 19
29 14
13 13
11 10
19 16
13 14
11 15
17 19
10 17
20 12
15 13 13
11 23
15 15
20 11
19 15
17 12
19 11
10 21
13 18
25 19
15 20
16 14
10 11
14 19
13 17
17 19
15 19
11 14
10 11
10 11
13 15
22 21
14 19
15 14
18 11
16 11
13 15
15 11
10 26
19 14
12 13
27 20 13
11 24
17 24
24 14
14 11
14 18
20 11
10 28
18 13
20 11
19 20
18 14
10 17
15 28
18 15
18 17
23 19
22 11 20
20 13
20 16
11 18
11 13
20 19
14 17
18 17
26 13
13 11
19 23
19 12
13 11
20 17
17 10
12 20
15 16 16
10 18
20 20
19 18
16 14
18 13
37 19
11 12
17 19
16 22
11 11
20 13
14 16
10 19
14 29
18 13
25 20
14 18
19 14
11 18
13 17
16 35
19 10
19 14
15 32
20 15
19 16
18 19
23 14
10 10
14 25
10 11
7 10
13 12
12 13
13 10
20 17
13 14
29 20
20 19
18 28
13 16
17 20
10 10 12
18 10
17 10
15 21
36 12
18 19
19 23
15 24
12 10
10 21
17 21
17 13
18 18
17 17
11 28
10 19
14 10
16 12
11 14
21 28
11 20
18 12
14 24
20 14
40 17
21 13
21 26
32 22
19 13
11 33
13 14
18 20
12 14
13 10
11 28
19 14 8
20 10
23 18
18 16
11 19
10 11
25 10
23 15
14 18
14 15
15 24
27 17
16 20
19 12
16 20
10 14
18 16
15 18
11 12
13 13
13 14
13 13
12 14
17 16
13 17
36 13
15 20
14 17
11 18
13 14
13 19
14 14
25 22
11 22
20 13
20 33
14 13
13 12
15 13
14 15
33 12
19 10
27 19
25 17
14 16
25 19
14 10
22 16
10 10
14 16
12 10
16 17
13 13
12 11
13 16
20 17
16 11
12 10
17 14
20 31
11 27
26 20
27 18
12 13
10 28
17 23
20 17
15 26
10 17
20 10
13 14
19 22 18
10 16
28 12 30
28 34
12 15
34 16
12 18
20 35
16 27
22 19
13 10
17 13
26 16
10 14
12 17
12 14
11 13
10 17
27 33
16 13
11 19
10 17
15 15
20 18
21 14
15 14
19 13
13 13
20 20
15 20
17 17
13 17
15 14
14 19
16 13
25 18
25 19
22 19
23 13
10 15
18 21
18 12
13 17
10 13
13 12
17 19
14 17
19 10
10 14
14 10
11 16
14 11
12 30
15 13
14 14
18 12
13 25
18 15
14 22
13 27
19 10
12 15
13 14
35 18
24 13 11
14 13
19 11
13 17
17 17
20 16
19 13
14 14
19 20
15 12
16 15
15 28
12 28
38 20
26 14
20 37
16 20 14
18 18
28 19
13 18
12 18
14 30
25 13
13 14
15 14
24 15
21 14
10 10 12
20 11
15 18
21 12
16 17
18 17
10 20
19 15
20 14
20 25
10 10
10 10
15 18
12 15
18 10
20 16
18 11
12 19
21 16
14 14
17 17
16 19
14 13
16 12
17 16
29 10
17 15
17 17
17 12
19 10
15 15
17 25
24 39
13 18
20 13
22 14
29 19
15 15
21 16
18 20
15 20
13 13
15 10
29 13
18 16
16 17
14 16
23 13
34 17
17 15
19 10
19 16
30 15
18 15
16 12
10 10
20 18
13 10
16 19
26 17
18 17
20 15
16 34
23 16
10 12
20 10
11 12
12 16
15 12
11 15
18 19
16 16
16 18
19 19 20 14
16 23
30 17
16 13
15 32
14 13
24 14
17 21
13 10
10 10
20 15
14 18
20 12
15 15
16 15
12 17
14 22
20 10
20 10
20 15
15 16
13 18
12 12
12 22
17 14
12 10
13 14
16 15
16 18
10 24
16 18
23 23
20 16
15 23
16 17
15 14
19 16
12 23
14 33
13 16
11 12
18 12
12 14
12 14
17 18
14 16
18 18
17 16
24 14
17 19
12 14
13 17
13 12
21 30
15 13
15 10
10 10
13 12
10 12
13 29
22 18
17 17
16 19 15
16 16
15 15
10 15
24 14
13 17
12 19
18 22
14 15
15 19
17 12
16 17
18 15
14 20
15 17
17 18
15 28
17 15
17 12
16 13
14 21
13 17
32 20
13 14
18 10
16 18
14 16
12 18
22 10
25 10
31 10
16 15
15 12
12 23
30 15 18
19 10
10 18
15 20
13 31
20 12
10 12
18 24
12 10
18 17
18 16
14 18
15 18
14 18
19 26
12 13
16 18
14 18
17 15
16 14
16 12
20 14
13 23
18 15
12 19
10 12
15 12
10 18
18 18
13 15
19 17
30 14
13 16
27 25
29 12
16 13
10 17
14 24
12 19
20 15
14 25
24 23
15 15
10 12
18 15
12 16
14 18
18 20
27 19
17 16
34 17
19 14
15 32
20 23
14 16
25 14
10 18 12
19 13
14 20 12
20 12
18 16
17 14
29 15
18 14
12 20
14 18
19 26
18 23
15 12
18 15
16 15
20 25
17 16
10 10
10 12
20 12
10 19
15 16
19 19
19 19
15 23
15 18
15 17
25 26
13 18
16 12
16 17
10 10 16
27 12
20 16
17 15
12 10
17 20
16 16
25 20
12 12
13 15
20 14
15 17
17 10
15 16
10 12
20 19
16 16
18 18
12 17
13 12
21 12
15 31
18 25
39 18
25 10
14 35
16 24
12 17
10 10
14 16
12 19
18 17
22 18
10 16
18 17
16 12
18 19
26 16
5 17
12 24
25 32
15 23
13 26
20 18
20 12
6 20
18 20
16 17
13 19
24 20
19 15
33 14 15
26 20
14 18
14 19
16 15
29 15
38 16
17 12
17 13
10 17
16 19
30 24
15 23
20 18
10 19
12 16
13 18
31 13
14 20
20 12
16 13
16 12
17 15
16 16
15 12
10 11
12 17
10 18
12 15
12 12
32 16
16 17
14 10
12 27
15 17
26 10
17 12
20 19
13 10
16 17
16 21
15 15
18 16 16
19 26
29 17
20 15
29 12
23 12
34 14
19 11
19 12
18 14
31 19
21 13
15 2
18 12
12 16
10 18
18 17
19 33
16 19
20 18
15 15
25 30
14 20
20 12
11 16
21 22
16 16
16 18
18 22
10 26
19 11
22 18
26 20
19 19
27 12
20 12
10 20
25 20
10 10
21 32
10 16
11 16
21 20
25 18
17 12
11 17
13 18
20 10
12 10
12 19
20 13
10 12
14 12
10 10
10 19
10 2
42 10
10 10
39 10
21 10
2 15
18 14
14 13 5 7
3 5
2 2
7 1
12 5
4 1
2 7
3 1
2 7
3 3
4 8
8 6
6 4
4 5
17 3
4 8
6 2
7 8
6 9
16 7
5 5
2 2
2 8
9 5
9 5
2 4
2 20
5 6
8 2
4 4
6 3
3 3
9 4
7 5
2 5
4 5
4 3
7 4
4 8
6 3
8 7
6 2
7 7
9 9
9 8
8 8
8 5
3 3
7 5
6 3
4 9
6 6
2 7
8 3
18 12 17
8 10
26 25
6 19 26
10 15
17 11
15 14 11
3 17
11 10
21 19
26 11
18 17
26 24
25 14
15 15 13 26
19 10 18 16
12 11
24 26
22 11
24 22
11 17
21 21 11 24 25 11
26 11 22
22 10
19 19 13
21 11
21 11
23 23
23 18 22
17 21 23
22 24 13 24 25
20 16
24 23
16 22 26
22 18
13 21 16
14 11
20 23 17
12 13
22 20
25 25 15
10 24
24 16
16 23
13 13 15
21 24
22 25
21 13
26 15 26
22 10
19 11
26 12 10
25 26
17 15
10 20
22 12
24 14
24 15
21 19
18 26
10 25
14 20 24
26 17 19/21 13
22 23
21 17
12 4
11 17
19 5
16 1 inch equals 300 feet
Revised: August 21, 2008
Prepared June 25, 2008 for the City of Carmel by TriAxial Data Systems • Watsonville, CA 95076 • Phone (831) 763-3697 This is a graphic representation only of data provided by the City of Carmel and the County of Monterey. The author assumes no responsibility nor liability for errors or omissions. 0 300 600 900 1,200Feet
The City of Carmel-by-the-Sea makes no representations or warranties regarding the accuracy or completeness of this map. This map is intended to reflect the boundaries established by the Carmel Municipal Code, the California Coastal Commission, and California law. These sources take precedence over this map.
Carmel-by-the-Sea
City Zoning Map
Current Zoning Designations on Original Lots
Carmel Bay
Legend
Overlay Districts and Community Plans
Base Zoning Districts
City Limits
R-1 Single-Family Residential
R-1-C-6 Single-Family (6,000 sf min.)
R-1-C-10 Single-Family (10,000 sf min.)
R-1-C-20 Single-Family (20,000 sf min.)
R-4 Multi-Family Residential
RC Residential and Limited Commercial
CC Central Commercial
SC Service Commercial
P-1 Natural Parklands and Preserves
P-2 Improved Parklands
A-1 Theatrical
A-2 Community and Cultural
A-3 Senior Citizen Facility
AS Archaeological Significance Overlay
P Park Overlay
CP Community Plan Area
ESHA* Environmentally Sensitive Habitat Area - Overlay
*Note: The ESHA Overlay applies to all land within an identified ESHA and to all land within 30 feet of an ESHA. Please see General Plan for identified ESHA's in Mission Trail Nature Preserve, Pescadero Canyon, and at locations along Carmel Beach.
The Appeal Jurisdiction is a representation of the certified Appeal Jurisdiction layer from the coastal zone. Please see Certified Post LCP Map or Current Zoning for parcels in contact with this boundary.
Parcel Boundaries
Permanent Street Closures
AB* Appeal Juristiction / Beach Overlay
Revised: February 18, 2009
Prepared June 25, 2008 for the City of Carmel by TriAxial Data Systems • Watsonville, CA 95076 • Phone (831) 763-3697 This is a graphic representation only of data provided by the City of Carmel and the County of Monterey. The author assumes no responsibility nor liability for errors or omissions.
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Site Visit
In June 2022, City staff hosted a walking tour of the village. The purpose of this exercise was to observe the characteristics of the built environment and evaluate the potential of City-owned sites to accommodate development of housing. Key themes from this visit include:
Height. The City’s current code has a two-story height limit. However, there are many older structures throughout the commercial core that are taller than two stories and are adjacent to single- or two-story buildings.
Interior Courtyards. One of the unique characteristics of Carmel’s built environment is the network of interior courtyards and intra-block passageways that connect businesses. Residents and visitors are encouraged to explore these interior areas behind business frontages and facades.
City-Owned Sites. The City owns several sites across the village. In addition to larger and potentially underutilized sites in the downtown core, it owns a series of sites that are unimproved street rights-of-way.
Sunset Center North and South Lots. If on-site parking could be accommodated, the north lot of the Sunset Center could be a redevelopment candidate. The South Lot may also be explored for development potential.
Topography. Some areas within and on the periphery of the commercial district have steep slopes. These areas could be opportunities for development with tuck-under parking.
Attachment 1
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Low density retail in commercial district Example of interior courtyard Ulrika Plaza at 5th and Dolores Example of City-owned ROW site Sunset Center North Lot Example of underutilized parking Attachment 1
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Market Overview
The ability of the market to deliver housing production in the future is largely a function of existing market conditions. An observation of socioeconomic conditions also informs housing need in the community.
For-Sale Market
Following several years of relative stability, the price of homeownership in Carmel has accelerated rapidly in recent years. Since 2019, the median home price in Carmel has jumped from $1.6 million to $2.95 million, an increase of 84 percent.5 Price increases are being driven by demand-side forces.
Figure 3: Median Home Price
Source: Property Radar6
Over this same period, there has been an acceleration of both sales volume and the share of homes that are purchased all cash or with mostly cash. For example, in 2020 and 2021 sales volumes were 50 percent higher than the previous five-year average. Moreover, the percentage of home sales with 75 percent to 100 percent cash down increased from 53 percent to 61 percent through the first half of 2022. This is indicative of a market that is attracting outside capital from other high-value markets. In the context of observed migration patterns in Northern California because of the COVID-19 pandemic, we suspect that much of the movement in the market is being driven by migration of high-net-worth households out of the Bay Area. This is observed 5 Property Radar. (See https://www.propertyradar.com/) Data reported through most recent period available 6 Property Radar. (See https://www.propertyradar.com/) Data reported through most recent period available $1,562,500
$2,950,000
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
2014 2015 2016 2017 2018 2019 2020 2021 2022
Median Home Sales Price
Attachment 1
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in migration data from the U.S. Postal Service that shows that since March 2020 Carmel has seen a migration-driven increase of 552 households.
7 Figure 4: Sales Volume and Percent of Purchase Price in Cash Source: Property Radar8
Second-Home Market
Tourism and the impacts of second homes and long-term rentals are also having an observed impact on affordability in Carmel.9 Data from the U.S. Census Bureau shows that nearly 40 percent of all housing units are used for seasonal, recreational, or occasional use. This rate is ten times the national average.
Figure 5: Share of Housing Units that are Second Homes
Source: U.S. Census American Community Survey (2016-2020 estimates); Table B2500410 Nation Carmel
Total housing units 138,432,751 3,731
For seasonal, recreational, or occasional use 5,303,302 1,479 Share of housing units that are second homes 3.8% 39.6% 7 USPS Change-of-Address Migration Data
https://www.arcgis.com/apps/dashboards/951428e32723456c879d0966af4baa8a 8 Property Radar. (See https://www.propertyradar.com/)
9 Short-term rentals are not permissible as per CMC 17.08.060 and CMC 17.14.040. (See https://www.codepublishing.com/CA/CarmelbytheSea/html/Carmel17/Carmel1708.html) 10 U.S. Census American Community Survey (2016-2020 estimates); Table B25004. (See https://data.census.gov/) 0 20
40 60
80 100
120
140
2014 2015 2016 2017 2018 2019 2020 2021 2022
Home Sales Volume
75% to 100%
Down
50% to 74.9%
Down
25% to 49.9%
Down
< 25% Down
Attachment 1
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Renter Market
Reliable real-time market data on the local rental market is challenging to obtain because the majority of the rental market is organized through individual transactions, small property management firms, and in some cases informal agreements. Figure 6 below demonstrates that tenure split (owner vs. renter-occupied) in Carmel is roughly equal. However, a full 78 percent of the rental market is being met by single-family housing units (rather than apartment buildings), typically rented out by individuals as opposed to large property management firms.
Figure 6: Tenure (Rent vs. Own) by Units in Structure in Structure Source: U.S. Census American Community Survey (ACS) (2016-2020 estimates)11 Note: Tenure refers to whether a unit is occupied by someone who owns the unit (owner-occupied) or rents the unit (renteroccupied).
Unit Type Owner-Occupied Renter-Occupied Total
Single-family Detached 993 694 1,687
Single-family Attached 0 19 19
Duplex 0 0 0
Triplex/Quadplex 0 22 22
Small Multifamily (5-19 units) 0 162 162
Large Multifamily (20+ units) 0 0 0
Mobile Homes12 0 19 19
Total 993 916 1,909
Tenure Split 52.0% 48.0%
In Figure 7 below, we report annual contract rent reported for the market by the U.S. Census Bureau’s American Community Survey. We consider “average” rent levels reported in the survey to be considerably lower than where rental properties transact at in the market based on observations of current rent levels. However, this data is showing the expected trend of accelerated rent growth over the last two observation years. 11 U.S. Census American Community Survey (2016-2020 estimates). (See https://data.census.gov/) 12 The U.S. Census uses survey data across a five-year period to produce estimates across a broad range of demographic and socioeconomic variables in the American Community Survey (ACS). Because the ACS uses survey data to develop estimates, results can be unintuitive and have larger margins of error in smaller geographies. See https://www.census.gov/programs-surveys/acs/methodology.html for a review of the Census Bureau’s methodology for the ACS.
Attachment 1
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Figure 7: Annual Contract Rent
Source: U.S. Census American Community Survey (5-year estimates from 2015-2020)13 Cost Burden
State and federal standards specify that households spending more than 30% of gross annual income on housing experience a housing cost burden. Housing cost burdens occur when housing costs increase faster than household income. When a household spends more than 30% of its income on housing costs, it has less disposable income for other necessities, including health care, food, education, and clothing. In the event of unexpected circumstances such as the loss of employment or serious health problems, lower-income households with a burdensome housing cost are more likely to become homeless or be forced to double-up with other households. Homeowners with a housing cost burden have the option of selling their homes and becoming renters. Renters, on the other hand, are vulnerable and subject to constant changes in the housing market.
In Carmel, 47 percent of all households that rent their homes are cost burdened, spending greater than 30 percent of their income on housing. Among these, a full 25 percent of renter households are severely cost burdened, spending 50 percent or more of their income on housing.
Figure 8: Percent of Income Spent on Rent, City of Carmel-by-the-Sea (2020) Source: American Community Survey 2016-2020 Five-Year Estimate (Table B25070)14 Income on Rent Households Share
13 U.S. Census American Community Survey (5-year estimates from 2015-2020). (See https://data.census.gov/) 14 American Community Survey 2016-2020 Five-Year Estimate (Table B25070). (See https://data.census.gov/) 0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
$0
$500
$1,000
$1,500
$2,000
$2,500
2015 2016 2017 2018 2019 2020
Annual Rent Growth
Contract Rent
Contract Rent Annual Growth
Attachment 1
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Less than 10.0 percent 153 16.7%
10.0 to 14.9 percent 49 5.3%
15.0 to 19.9 percent 182 19.9%
20.0 to 24.9 percent 63 6.9%
25.0 to 29.9 percent 39 4.3%
30.0 to 34.9 percent 61 6.7%
35.0 to 39.9 percent 70 7.6%
40.0 to 49.9 percent 70 7.6%
50.0 percent or more 229 25.0%
Total: 916 100.0%
Commute Patterns
It is hypothesized that Carmel’s concentration of jobs in the leisure and hospitality sector creates challenges for local workers who do not have sufficient incomes to afford housing in the community. This imbalance of jobs to housing impacts quality of life including how far workers must travel for work, increasing transportation costs, and reducing individual productivity. In general, a good balance of jobs to housing would occur where the jobs available in a community match the labor force skills, and where housing is available at prices, sizes, and locations suited to workers who wish to live in the area.
In Carmel, roughly half of all workers live within 10 miles of the city. Primary areas where workers live include Seaside, Monterey, Salinas, and Pacific Grove. A full 26 percent of workers commute from greater than 25 miles away. Only 2.6 percent of workers live and work in Carmel.15
15 U.S. Census Bureau Longitudinal Employer-Household Dynamics Data (See https://lehd.ces.census.gov/) Attachment 1
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Figure 9: Commute Patterns, Where Employees in Carmel Live (2019) Source: U.S. Census Bureau Longitudinal Employer-Household Dynamics Data. (See https://data.census.gov/) ECONorthwest 13
Code Review
As part of our scope, we conducted a code review to identify potential issues and barriers that could limit housing production in the Multifamily Residential (R-4) district and the commercial zones; Residential and Limited Commercial (RC) Central Commercial (CC), and Service Commercial (SC).
General Notes
§ The pattern of existing development is small lot (3,800-6,000), detached single-family.
Most new development will be infill.
§ Multifamily is defined as any development with two of more units on the same lot.
Building Height in All Zones
Building height throughout the city is limited to two stories, with maximum heights established for each zone. CMC 17.14.150.B-C establishes maximum building heights for the R-416, RC, SC, and CC zones. Structures in R-4 and RC zones are limited to 26 feet and structures in the CC and SC zones are limited to 30 feet. Building sites which face, abut or adjoin any property in the R-1 district are limited to a height of 24 feet. Building height may also be determined by compatibility with nearby structures facing the same street or intersection and within the same pedestrian field of view (i.e., generally, within 100 feet to either side of, or across the street from the proposed structure).
Given the existing small lot sizes observed throughout the city and off-street parking requirements (discussed in more detail below for the R-4 zone), a two-story maximum height will likely prohibit many multifamily projects from achieving base density allowances in the R4 zone. Building height limitations, maximum building coverage, and floor area ratio (F.A.R) limitations (discussed in more detail below) will even more severely limit multifamily projects from achieving base density allowances in commercial zones, even if parking requirements are lower than in residential zones.
R-4 Development Standards
Density
CMC 17.12.020.B establishes a maximum base density of 33 du/ac, and CMC 17.12.020.C offers a density bonus of 44 du/ac in exchange for affordable units. While these density thresholds are relatively high, they are difficult to achieve given the City’s inventory of small lots between roughly 3,800-6000 square feet, with lot widths around 50-60 feet and two-story building height maximum. Off-street parking requirements will further limit the ability to achieve base density.
Given the site constraints and a need for many developments to achieve base density for financial reasons, it is unlikely developers will be able to take advantage of the density bonus 16 Underground parking does not count as a story in the R-4 zone.
Attachment 1
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since their ability to achieve the base density is already constrained. If the density bonus was offered in another story, rather than du/ac, it could help reduce barriers and allow more housing production on smaller sites.
Parking
CMC 17.38.020 requires 1.5 parking spaces per residential dwelling unit and offers reduced parking standards for affordable units (0.5 spaces per unit) in the R-4 zone. CMC 17.12.020.F.1 prohibits parking requirements in the R-4 zone to be met on-street or through a fee-in-lieu.
Providing parking onsite while achieving the allowed density will be a challenge for many development sites given that many of the existing lots in the city are only 50-60 feet wide. While underground parking is allowed and does not count against the maximum building height, underground parking is far more expensive to construct. Reducing parking standards for certain areas (i.e. areas with access to transit or walkable to commercial districts) or for unit types (i.e. studios and one-bedrooms) may help developments achieve base densities.
Unit Distribution
CMC 17.12.020 requires that on sites larger than 4,000 sf, 50 percent of all units must be provided as rental apartments.
CMC 17.08.050.F. requires at least 25 percent of all units in a multifamily project containing more than two units be between 400-650 square feet. While this provision on its own is not necessarily a barrier to housing development, parking standards for these small units are the same as a single-family home. Reducing the parking standard for smaller multifamily units will help developments to achieve density more easily.
Commercial Zone Development Standards
Building Coverage
CMC 17.14.130.A. limits building coverage to 80 percent in the CC and SC zones. 17 The existing
pattern of development in these two zones appears to exceed 80 percent building coverage on many parcels. Additionally, the code prohibits the removal of existing courtyard or intra-block walkways, which will further limit the amount of allowable building coverage on some sites.
Since the land costs in Carmel-by-the-Sea are exceptionally high, these maximum building coverage requirements will likely act as a development barrier. This becomes even more of a challenge in the context of redevelopment where the existing structure exceeds 80 percent building coverage. New developments may be required to build a smaller building than previously existed.
17 Exceptions are granted up to 95 percent.
Attachment 1
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Floor Area Ratio
CMC 17.14.140.A-B establish F.A.R limits for the commercial zones. One-story buildings in the CC and SC zones are allowed to achieve an F.A.R equal to 95 percent of the site area. However, this contradicts the allowed building coverage discussed above (80 percent), excluding the exceptions. Two-story buildings can obtain an F.A.R equal to 135 percent of the site area, which further limits the allowed square footage outside of the building coverage maximums, as either the first or second story would need to be smaller than the other to meet this F.A.R. For example:
§ A 5,000 square foot lot is allowed a maximum of 4,000 square feet in building coverage, which could translate to about an 8,000 square foot building if the two stories were of equal size. However, two-story buildings are limited to 135 percent of the total site area. § 135 percent of the total site area is 6,750 square feet. The F.A.R requirements reduces the potential square footage by approximately 1,250. This lost square footage could translate into roughly two additional apartment units.
§ However, if using a density bonus the limit would be 150% of the total site area, reducing the amount of lost square footage for project utilizing a density bonus.
The restriction is even more severe in the RC zone adjacent to the Single Family Residential (R1) zone, where F.A.R requirements limit two-story buildings to 80 percent of the total site area.
For example:
§ A 5,000 square foot lot could result in a maximum building coverage of 3,500 (70 percent), so two stories of the same size could render a 7,000 square foot building. § With F.A.R. limited to 80 percent of the total site area for two-story structures, this limits the building to 4,000 square feet. This represents a loss of about 3,000 square feet.
§ Like the example above, the loss of square footage is reduced if a project can capitalize on a bonus.
F.A.R. bonuses are available for projects that include affordable housing, courtyards, and/or intra-block walkways.
Review Processes and Additional Studies
The City should be mindful of how additional procedures and studies can add time and cost to projects that are facing unprecedented cost escalations in the current economic environment.
For example, CMC 17.08.050.F.1 requires all multifamily projects to prepare an acoustical analysis and the implementation of acoustical design treatments to meet noise standards contained in Title 25 of the California Government Code. While this is not a barrier to development on its own, it does require a small amount of time and cost to the development process. Cumulatively, review processes can add up to be a significant barrier to development and the City should endeavor to streamline review and approvals wherever possible.
Attachment 1
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The City also requires conditional use permits for certain residential developments in all zones (i.e. developments over 22 du/ac). The City’s standard practice is to process approvals concurrently where possible; but removing this additional process could reduce extra steps and cost in the development process for both City staff and applicants, while eliminating the additional cost of preparing a conditional use application.
High-Level Sites Analysis
In its forthcoming update to the Housing Element of the General Plan, the City will be required to identify physical sites that have the zoned capacity to accommodate its share of regional housing need (349 units). The State agency (Housing and Community Development “HCD”) responsible for oversight and certification of the Housing Element has specific requirements for this analysis. It is beyond the scope of this project to conduct a full HCD compliant alternative sites analysis. And the sites included in this review is unlikely to be an exhaustive list of candidates. It likely also includes candidates that future study my find less viable. However, as a precursor to the Housing Element Update, we provide a high-level overview of potential candidate sites. In our methodology we combine anecdotal context through conversations with local developers and property owners alongside a range of variables that are theoretically indicative of redevelopment potential. These include:
§ Historic resources § Total value per-square-foot
§ Sites with adjacent ownerships § Sites with high value uses § Sites identified in RHNA5 § Discussions with developers § Land-to-improvement ratio § Site visit and spot checking Defining a Study Area
Housing redevelopment generally requires scale to be financially feasible because the value of the new use must be measurably higher than the existing use. Scale is a function of site size and allowed density. Under the existing zoning code, only the R-4 and commercial zones allow multifamily development. For this reason, the focus of this work is on the commercial core, defined in Figure 11.
Conservation District
The purpose of the Conservation District (codified in 2004) is to “recognize that Ocean Avenue and the commercial properties that surround this corridor contain some of the most memorable and important commercial buildings in Carmel”.18 The district includes special procedures that influence the development and design context for properties in the district. While we did not consider all properties in the district to be infeasible, the additional development and design standards add an additional layer of complexity to redevelopment potential. 18 Carmel Municipal Code § 17.20.260. (See
https://www.codepublishing.com/CA/CarmelbytheSea/html/Carmel17/Carmel1720.html) Attachment 1
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Figure 10: Zoning Map; Carmel-by-the-Sea
Source: City of Carmel-by-the-Sea
Carmel_Zoning
A-1
A-2
A-3
CC
P-1
P-2
R-1
R-1-C-10
R-1-C-20
R-1-C-6
R-4
RC
SC
City Limits
Conservation District
Legend
ECONorthwest 18
Figure 11: Commercial Core Study Area Definition
Source: ECONorthwest
Downtown Study Area
Conservation District
Legend
ECONorthwest 19
Historic Resource Properties
The project study area includes 45 properties that are identified as historic. All but seven of these are in the Conservation District (see Figure 12). While we did not omit historic resource sites from being considered redevelopment candidates outright, redevelopment or renovation of historic resource sites will have an additional layer of complexity, as projects will need to meet the Secretary of the Interior’s Standards for Rehabilitation.19 Properties Omitted Due to Existing Use
In this step we removed properties from consideration that have clear uses that would be a barrier to redevelopment, regardless of the redevelopment economics of the physical sites (see Figure 13). This included a removal of civic and institutional uses such as City Hall, libraries, parks, and open space. It also removed all attached ownership sites (such as condominiums) because assembling ownerships of these properties is nearly impossible. Lastly, we removed sites with businesses where the likely income generating potential of the use was high relative to the real estate asset (such as hotel properties). Due to Carmel’s tourism draw, even a 2-star hotel commands room rates well above average for the class. Conversations with City staff and local developers further suggested that it would be highly unlikely that any hotel property in the commercial core would fully redevelop or reposition to permanent housing. However, there is opportunity to add workforce housing capacity through programs that convert a single hotel room to an on-site managers uint.
Fifth Cycle (RHNA5) Housing Element Sites
Carmel’s Fifth Cycle Housing Element was adopted in 2015. This document includes an inventory of sites that were identified at the time as the most likely to accommodate future housing need (see Figure 14). The analytical process to identify these sites is established and findings certified by the State Department of Housing and Community Development (HCD).
Adjacent Ownerships
Sites that can obtain scale through size and density generally have a higher likelihood of redevelopment. Larger sites offer greater flexibility and fewer barriers. Often, two or more sites adjacent to each other that are both underutilized can be combined to make more feasible development site. However, assemblage of multiple ownerships can be a barrier. In this step we used ownership data in Assessor’s records to identify properties that are adjacent to each other but have the same owner (see Figure 15). If they meet other redevelopment criteria, these sites are more likely to redevelop.
19 Secretary of the Interior’s Standards for Rehabilitation. (See https://www.nps.gov/subjects/taxincentives/secretarysstandards-rehabilitation.htm) Attachment 1
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Figure 12: Historic Resource Properties
Source: City of Carmel-by-the-Sea.
CarmelHistoricProperties
Downtown Study Area
Conservation District
Legend
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Figure 13: Omitted Properties do to Existing Use
Source: ECONorthwest
Downtown Study Area
Conservation District
Not Viable
Legend
Hotel
Hotel
Hotel
Hotel
Condo
Condo
Condo
Condo
Condo
Condo
Hotel Hotel Hotel
Hotel
Hotel
Hotel
Hotel
Hotel
Library
Library Park
Hotel
Hotel
Condo
Condo
City Hall
CityHall
Hotel
Park
Hotel
Hotel
Hotel
Hotel
Hotel
ECONorthwest 22
Figure 14: RHNA5 Sites in the Commercial Core
Source: Carmel-by-the-Sea Fifth Cycle Housing Element, Digitized by ECONorthwest Downtown Study Area
Conservation District
Not Viable
RHNA5 Inventory
Legend
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Figure 15: Sites with Adjacent Ownerships
Source: ECONorthwest
Downtown Study Area
Conservation District
Not Viable
Adjacent Ownerships
Legend
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Land-to-Improvement Ratio
Land-to-Improvement ratio is a metric that compares the value of an improvement on a property to the value of the land using data from the Monterey County Assessor’s Office.
Theoretically, the more valuable land is compared to improvements on a site, the more likely the site is to redevelop (see Figure 16).
Data Limitations
The land-to-improvement metric and the value per-square-foot metric (below) use assessed value as reported by the Assessor. Assessor’s data can deviate broadly from real market value in California due to Proposition 13 which limits the annual increase in assessed value to 2 percent until a property transacts. While the ratio of improvement and land value should be more stable, properties that have not transacted for a long time could provide misleading results. For this reason, we consider these metrics alongside all other variables and in conjunction with site/spot checks.
Total Value Per-Square-Foot
In development economics the term “residual land value” is defined as the maximum value that a developer can pay for a site for a given development program. It is influenced by a range of factors including construction costs, development form, market conditions, and the developer’s threshold for rate of return, among other factors. It was beyond the scope of this work to do feasibility testing that would calculate actual residual land values. However, we know that the more expensive it is to acquire sites, the less likely development is to be feasible. Therefore, identifying sites in the study area with the lowest combined value (land plus improvements) relative to the size of the site can be an indicator of redevelopment potential (see Figure 17).
Candidate Site List
We combined the analysis above with an in-person site visit, visual assessment using aerial and streetscape photography, and conversations with local representative to develop an inventory of candidate sites that could have redevelopment potential. In addition to properties within the study area, we also evaluated sites adjacent to the commercial core that could be candidates for future rezoning to allow more housing density. Each site is briefly discussed below Figure 18.20 20 Sites are not listed in any particular order of prioritization Attachment 1
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Figure 16: Land-to-Improvement Ratio
Source: ECONorthwest using Monterey County Assessor’s Data Downtown Study Area
Conservation District
Not Viable
Land to Improvement Ratio
< 1.0
1.0 - 1.5
1.5 - 2.0
> 2.0
No Improvement Value
No Data
Legend
ECONorthwest 26
Figure 17: Total Value Per-Square-Foot
Source: ECONorthwest using Monterey County Assessor’s Data Downtown Study Area
Conservation District
Not Viable
Value PSF
No Data
< $100
$100 - $175
$175 - $250
> $250
Legend
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Figure 18: Candidate Site List
Source: ECONorthwest
Downtown Study Area
Conservation District
Legend
ECONorthwest 28
Figure 19: Data Table of Candidate Sites
Source: City of Carmel-by-the Sea Planning Department
Site
ID APN Zoning Lot Size Acres Max units @ 22 DUA21
Max Units @
44 DUA22
Max Units @
88 DUA23
#1 10143001000 A-2 90,084 1.02 22 45 90
#2
10138003000 SC 7,913
0.37 8 17 33
10138021000 SC 7,949
#3
10104001000 R-4 32,136
1.28 28 57 113
10104004000 R-4 21,576
#4 10145008000 RC 7,878 0.18 3 8 16
#5 10212010000 R-1 7,637 0.18 3 8 16
#6
10095013000 RC 15,313
0.53 11 24 47
10095012000 RC 8,027
#7
10098005000 SC 4,871
10098004000 SC 4,676 0.33 7 15 30
10098006000 SC 4,901
#8
10212027000 R-1 4,014
10212004000 R-1 4,004 0.28 6 13 25
10212026000 R-1 3,994
#10
10144015000 R-1 4,155
0.18 3 8 16
10144016000 R-1 3,738
#11 10133004000
(Example) CC 6,398 0.14 3 7 13
#12
10141006000 CC 12,520
0.38 8 17 34
10141011000 CC 4,377
#13
10145012000 SC 3,632
10145024000 SC 4,030 0.30 6 14 27
10145023000 SC 4,118
#14 10142001000 SC 8,009 0.18 3 8 16
#15
10149012000 A-3 7,435
0.62 13 28 55
10149010000 A-3 7,964
10149011000 A-3 7,985
10149001000 A-3 3,615
#16
10084030000 R-1 26,874
1.10 24 49 97
10084023000 R-1 5,822
10084024000 R-1 6,016
10084022000 R-1 4,496
10084003000 R-1 3,856
#17 10097007000 8,534 .020 4 9 18
TOTAL: 7.27 acres 152 units 327 units 646 units
21 Permitted by-right. No affordable requirements
22 20% of units must be for low-income households OR 10% must be for very low-income households OR 50% must be for seniors. All units must be deed restricted for a minimum of 30 years. 23 All units must be deed restricted affordable for a minimum of 30 years.
Attachment 1
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Site 1: Sunset Center Lots Site
The north lot at Sunset Center is a large (1.02
acre) parking lot with no improvements other
than paving. It is a City-owned site. The City has
expressed interest in redeveloping the site for
housing so long as parking needs for Sunset
Center could be accommodated in the
development program. A zone change from
Theatrical District (A-2) to Multifamily
Residential (R-4) would be required to facilitate
development of the site. The south lot could also
be viable, but larger scale development may not
be as compatible with existing residential
development scale this far removed from the
commercial core.
Site 2: Ulrika Plaza Site
The 0.37-acre Ulrika Plaza site previously entitled
as a mixed-use building. The initial developer
lost the project for financial reasons, and it was
acquired by another developer. This developer
has been working to get a development program
for 12 market-rate apartment units approved on
the site for several years. The site is a case study
of a development not building to maximum
density.
Site 3: City Public Works (Vista Lobos) Site
This is a City-owned site totaling 1.28 acres at the
north end of the study area. The site is a large
parking lot with low value improvement used for
public parking. The City has expressed interest in
using the site for housing if feasible. Potential
height restrictions due to a protected viewshed to
Point Lobos (see CMC 17.12.050) could limit
achievable density and feasibility.
Attachment 1
ECONorthwest 30
Site 4: Carmel Realty Office Site
This site is a 0.18-acre corner-lot parcel that is
currently owned and used for office space by
Carmel Realty. It has low lot coverage and scores
well with a land-to-improvement ratio. It is a
single-story structure that is surrounded on all
sides by structures that are at least two stories
tall. The site was previously used in the RHNA5
inventory.
Site 5: Pine Inn Parking Lot
This 0.18-acre site is the parking lot for the Pine
Inn. The site is not attached or adjacent to the inn,
it is a separate parcel across the street. As driving
patterns and parking needs change, this site
could be a future candidate for redevelopment.
Site 6: Bruno’s Market Site
This site is two adjacent parcels totaling over 0.53
acres under the same ownership. The site
includes a parking lot that leads to low lot
coverage. It also scores in the top tier for land-toimprovement ratio. It could be a potential redevelopment candidate.
Attachment 1
ECONorthwest 31
Site 7: Three Garages Site
This site would be an assemblage of three equal
sized parcels totaling 0.33 acres. Two of the
parcels are under the same ownership, and one
was previously used in the RHNA5 inventory.
Existing uses include a site with parking and
three attached garages, and a commercial
building used for real estate sales. Combined the
site scores in the top tier for land-to-improvement
ratio and in the mid-tier for value per-squarefoot.
Site 8: First Church of Christ Parking Lot
This site is a parking lot used by the First Church
of Christ. It is three separate taxlots totaling 0.28
acres. Assessor’s records have missing values for
ownership on the two southern parcels but given
its existing use we assume that all three parcels
are owned by the Church. In 2020, the State of
California passed AB185124, commonly referred
to as the “yes in God’s backyard” bill. This bill
makes it easier for religious institutions to
convert excess parking to affordable housing by
prohibiting a local agency from requiring the
replacement of religious-use parking spaces that a developer of a religious institution affiliated housing development project proposes to eliminate as part of that housing development project.
Redevelopment of the site would require a zone change.
Site 9: Misc. City-Owned Sites (Not Mapped)
The City owns a series of miscellaneous small
vacant sites in the R-1 zone. These sites are legacy
right-of-way that were not developed for streets.
Some of these sites may have development
potential. However, our site visit identified that
barriers were common, including mature trees,
topography, and use for primary access for
existing homes.
24 California Assembly Bill. 2020. “Religious institution affiliated housing development projects: parking requirements.” 2019-2020 Regular Session. AB 1851. (See https://openstates.org/ca/bills/20192020/AB1851/) Attachment 1
ECONorthwest 32
Site 10: Red Cross Site
This site is two adjacent parcels owned and used
by the American Red Cross. Collectively the site
is 0.18 acres. Because the site is owned by a nonprofit organization it does not have Assessor’s values to calculate redevelopment metrics.
However, site inspection confirms a low intensity
use. Because the owner is a mission-driven
organization, it’s possible they may be a willing
partner if they can find an alternative for their
current operations.
Site 11: Café Carmel Site (Representing ALL
single-story downtown buildings)
All single-story downtown buildings can be
explored as opportunities for densification. Site
orientation, existing and surrounding uses, and
access are contributing factors to feasibility. The
Café Carmel site pictured is one example of a
single-story commercial property with two-story
building on either side. The Café Carmel site
specifically scores in the top tier for land-toimprovement ratio and has a land value around $100 per-square-foot. The site was previously
used in the RHNA5 inventory.
Site 12: Wells Fargo Site
This site is two adjacent parcels comprised of the
existing Wells Fargo building and associated
parking lot. Combined the site is 0.38 acres. The
site was identified as a candidate site in the
RHNA5 Housing Element inventory. It scores in
the top tier for land-to-improvement ratio. It is
owned by an institutional entity (Wells Fargo).
However, conversations with City staff indicate
that it could be a candidate for inclusion as a
historic property which would complicate
redevelopment.
Attachment 1
ECONorthwest 33
Site 13: Esperanza 7th and Dolores Site
This site is three adjacent parcels owned by
Esperanza Carmel. The site totals roughly 0.30
acres. Esperanza has a development proposal on
the site for eight market rate apartment units.
Site 14: 7th and Mission Site
This 0.18-acre site currently accommodates a
clothing boutique in a single-story commercial
building. Half of the site is comprised of a
parking lot, which leads to low lot coverage and a
land-to-improvement ratio above 1.5. However,
it’s value per-square-foot is high at nearly $500
per-square-foot, making acquisition of the
property less likely.
Site 15: Carmel Foundation Site
The Carmel Foundation is the only provider of
deed-restricted affordable housing in Carmel.
Their administrative offices include four parcels
totaling 0.62 acres. This site does not score high
on land-to-improvement ratio but scores in the
top tier of value per-square-foot. This site is being
considered as a candidate because the Carmel
Foundation is a mission-driven organization and
interviews with leadership indicated that if they
can accommodate their administrative functions
off-site, they would consider redeveloping their
property for affordable housing. Redeveloping
this site would require rezoning.
Attachment 1
ECONorthwest 34
Site 16: Carmel Presbyterian Site
This site is five adjacent parcels totaling almost
1.1 acres. Over a third of the site is a parking lot.
See previous comments about AB1851. The site is
outside of the commercial core and would
require a zone change to facilitate
redevelopment.
Site 17: 5th and Junipero Site
This is a corner lot site totaling just under 0.20
acres. The existing use is a parking lot and singlestory commercial building. The site was included in the RHNA5 inventory. It scores in the mid-tier
for both redevelopment metrics.
Housing Capacity Opportunities
Based on our review of market conditions, the character of existing development, and potential needs in the community, we see opportunities to add housing capacity in the following ways:
Promote Accessory Dwelling Units
Accessory dwelling units are commonly built as
additional structures on lots with an existing home
or are created through garage conversions. Lots that
are conducive to accommodating ADUs have
common characteristics including larger lot sizes,
detached garages, and low lot coverage ratios. In
Carmel over 87 percent of parcels are zoned for
single-family residential uses (R-1), totaling nearly
2,900 lots. Carmel has also had growing interest in
ADU development, receiving 13 applications for
ADUs in 2021, up from 8 in 2020.
Attachment 1
ECONorthwest 35
Infill Capacity
There are several sites, including City-owned
properties, where infill could be possible.
Development of these sites would require careful
consideration of existing adjacent uses. Depending
on the scale of the site, this redevelopment could be
small-scale plex (duplex, triplex, quadplex) infill or
relatively large-scale development. The City should
consider amendments to development standards
and design guidelines to facilitate achieving the
maximum allowed densities. This would result in a
greater likelihood of development feasibility for
low-to-mid-rise multifamily development forms
ranging from three to four stories.
Encourage adding residential units above
commercial uses
Carmel’s business district has many properties that
are single-story low-intensity commercial uses.
Some of these properties may be candidates to add
an additional story of housing above the existing
commercial. There is existing and recent
development precedent that this densification is
feasible, even for historic properties. The best
candidates would be properties where the scale of
adjacent properties is two-stories or greater.
Full Redevelopment
There may be opportunities in the commercial
district where the value of housing may be higher
than the existing commercial use. These sites would
be candidates for razing the existing structure and
building maximum feasible density. To be feasible
the scale of development would have to maximize
the development potential of the site through larger
massing and maximum height.
Attachment 1
ECONorthwest 36
Recommended Actions and Potential Incentives
Based on the preceding analysis, we offer the following recommendations for further consideration as the City progresses to an update of its Housing Element.
Explore changes to development standards. Our review of Carmel’s zoning code found that overly restrictive development standards, such as the two-story heigh limit are not likely to facilitate maximum allowed densities. The City should explore options to remove these barriers consistent with the findings above.
Adopt objective design standards. Local developers indicate that the review and approval process in Carmel is overly restrictive. Senate Bill 35 and the Housing Accountability Act also require the use of objective standards. The City’s code currently includes subjective standards.
The City should analyze its current code language and develop recommendations for objective criteria and opportunities for a streamlined review process.
Create an accessory dwelling unit program. An accessory dwelling unit program could range broadly from creating promotional materials and informational outreach to an aggressive program that could project subsidies, development of pre-approved plans, assisting with allocating water credits (for deed-restricted units only), and technical assistance with planning and building staff navigating the planning and permitting process for property owners.
Create a preservation and monitoring program. The City should take action to understand its inventory of existing deed-restricted units and understand the risk of them converting to market rate.
Consider expanding the R-C and/or R-4 zone. Our analysis identified areas south and west of the commercial core that have opportunity sites and/or concentrations of parcels that could be candidates for redevelopment based on common metrics. The City should explore rezoning opportunities in these areas.
Inventory and incentivize properties with opportunities for densification. The City should consider at a minimum creating an inventory of single-story commercial properties with opportunities for densification and conducting property owner outreach. Other alternatives would be to establish flexible development standards like parking waivers and height limit adjustments, or to assist with water credits.
Explore solutions to water credit barriers to development. The water supply conditions on the Monterey Peninsula are a significant barrier to development. To add units to an existing structure or develop/redevelop a property, a developer must obtain water credits to accommodate the net change in fixtures. However, there are a finite number of credits available and no secondary market for transfer. To accommodate future development, the City should play an active role in regional efforts to improve access to water resources and water credits and facilitate prioritizing water credits for affordable housing.
Attachment 1
Energy Conservation and Reduction of
Greenhouse Gas Emissions G
APPENDIX
Attachment 1
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APPENDIX G ENERGY CONSERVATION AND REDUCTION OF GREENHOUSE GAS EMISSIONS................................................................................................................ G-1 G.1 Introduction ........................................................................................................................... G-1 G.2 OPPORTUNITIES FOR ENERGY CONSERVATION AND REDUCING GREENHOUSE GAS EMISSIONS .............. G-135.0 ENERGY CONSERVATION AND REDUCTION OF GREENHOUSE GAS EMISSIONS ............................................................................ 35-1
5.1 Introduction .......................................................................................................................... 35-1
5.2 Opportunities for Energy Conservation and Reducing Greenhouse Gas Emissions 35-1 Tables
Table G-1 PG&E Programs and Incentives for Residential Properties.............................. G-3 Table 53-1 PG&E Programs and Incentives for Residential Properties ............................... 5-2 Formatted: Default Paragraph Font
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Attachment 1
Appendix GChapter 5.0 – Energy Conservation G-1 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023
5.0 Appendix G
Energy Conservation and Reduction of
Greenhouse Gas Emissions
G5.1 Introduction
This chapter summarizes opportunities for energy conservation and the reduction of greenhouse gas emissions in the construction of housing in the City of Carmel-by-the-Sea.
G5.2 Opportunities for Energy Conservation and Reducing Greenhouse Gas Emissions
The Citycity adopted a Climate Adaption Plan (CAP) and Climate Action Plan on August 2, 2022.
The documents identify goals, policies, and actions that seek to increase resilience to climate change in Carmel. The CAP policy to minimize health impacts of climate change includes the following actions that address energy conservation and reduction of greenhouse gases:
Invest in Improving Resilience in Critical Facilities. Invest in sustainable backup power sources to provide redundancy and continued services for critical facilities, including City Hall, Carmel Police Department, Carmel Fire Department, the Libraries, and assisted living facilities in the event of a power outage.
Conduct a Feasibility Study for Existing Building Electrification and Back-up Power.
Perform an electrification feasibility study/existing building analysis in order to understand the potential for, and associated costs of, electrification retrofitting. Needs may include new heat pumps, on-site energy generation, and battery storage to provide more resilient back-up power supply. Establish a plan for reducing or eliminating natural gas from existing buildings, potentially through a reach code, and building resilience to potential electrical grid shutoffs. Improve Resilience in Existing Building Stock. Develop a program for identifying funding and incentives to weatherize residential and commercial buildings. The program will address severe weather protection, energy efficiency, indoor air quality improvements, and other housing improvements. Include an outreach campaign as part of this program to advertise the benefits of weatherizing and electrifying buildings.
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Attachment 1
Appendix GChapter 5.0 – Energy Conservation G-2 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Promote Funding Opportunities. Work with partners like 3CE and PG&E to identify and promote potential resilience opportunities and accessible funding and financing mechanisms to pay for building electrification, weatherization, and battery backups.
State Regulations
The City requires compliance with Title 24 of the California Code of Regulations on the use of energy efficient appliances and insulation. Through compliance with Title 24, new residential development has reduced energy demand particularly when contrasted with older building stock.
Providing energy conservation opportunities to residents who reside in less energy efficient residential units can ultimately lead to a reduction in utility-related housing costs for many households. The CityCity processes in excess of 500 building permits per year for remodels, additions and other construction which rehabilitates the existing housing stock, increases energy efficiencies, and improves water conservation.
Central Coast Community Energy
Central Coast Community Energy (3CE) is the community electricity provider for 33 Central Coast communities in Monterey, San Benito, Santa Cruz, San Luis Obispo, and Santa Barbara counties and is governed by local elected officials serving on the Board of Directors. 3CE was formed with the mission to reduce dependence on fossil fuels by providing carbon-free, affordable, and reliable electricity, and innovative programs within the community. 3CE is on a path to sourcing 100 percent clean and renewable energy by 2030. In collaboration with regional and statewide partners, 3CE provides customers with access to energy program rebates and incentives to electrify the region’s transportation, buildings, and agricultural sector. Carmel-by-the-Sea is a member of 3CE.
Pacific Gas & Electric
Pacific Gas and Electric Company (PG&E), which provides energy efficiency services in Carmel-bythe-Sea, offers public information and technical assistance to homeowners regarding energy conservation. PG&E also provides numerous incentives for energy efficiency in new construction and home remodeling. For example, remodeling rebates exist for projects installing three or more upgrades from a flexible menu of options that earn points towards incentives and rebates. This program’s incentives range between $1,000 and $4,500.
Additionally, PG&E provides residents with information regarding energy saving measures including various incentives and programs available to developers and residential property owners. Table G5- 1, PG&E Programs and Incentives for Residential Properties, includes a description of the various types of financial and energy-related assistance that PG&E offers low-income customers.
Attachment 1
Appendix G – Energy Conservation G-3 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023Chapter 5.0 – Energy Conservation 3 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Formatted: Left
Table G35-1 PG&E Programs and Incentives for Residential Properties Program Description
Energy Savings Assistance
Program
PG&E’s Energy Savings Assistance program offers free weatherization measures and energy-efficient appliances to qualified low-income households. PG&E determines qualified households through the same sliding income scale used for CARE. The program includes measures such as attic insulation, weather stripping, caulking, and minor home repairs. Some customers qualify for replacement of appliances including refrigerators, air conditioners, and evaporative coolers.
Energy Efficiency for Multifamily
Properties
The Energy Efficiency for Multi-Family Properties program is available to owners and managers of existing multi-family residential dwellings containing five or more units.
Multifamily Properties The Energy Efficiency for Multifamily Properties program is available to owners and managers of existing multifamily residential dwellings containing five or more units.
The program encourages energy efficiency by providing rebates for the installation of certain energy-saving products.
California Alternate Rates for
Energy (Care)
PG&E offers this rate reduction program for low-income households. PG&E determines qualified households by a sliding income scale based on the number of household members. The CARE program provides a discount of 20 percent or more on monthly energy bills.
Reach (Relief for Energy
Assistance Through Community
Help)
The REACH program is sponsored by PG&E and administered through a non-profit organization. PG&E customers can enroll to give monthly donations to the REACH program. Qualified low-income customers who have experienced uncontrollable or unforeseen hardships, which prohibit them from paying their utility bills may receive an energy credit. Eligibility is determined by a sliding income scale based on the number of household members. To qualify for the program, the applicant’s income cannot exceed 200 percent of the Federal poverty guidelines.
Medical Baseline Allowance The Medical Baseline Allowance program is available to households with certain disabilities or medical needs. The program allows customers to get additional quantities of energy at the lowest or baseline price for residential customers.
SOURCE: PG&E, 2022.
Monterey Peninsula Water Management District (MPWMD)
The Monterey Peninsula Water Management District (MPWMD) was formed on June 6, 1978 under the enabling legislation found in West’s Annotated California Water Code. District functions include:
Augmenting the water supply through integrated management of ground and surface water; Promoting water conservation;
Promoting water reuse and reclamation of storm and wastewater; and Fostering the scenic values, environmental qualities, native vegetation, fish and wildlife, and recreation on the Monterey Peninsula and in the Carmel River Basin.
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Attachment 1
Appendix GChapter 5.0 – Energy Conservation G-4 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 The Water Management District serves approximately 105,911 people within the cities of Carmelby-the-Sea, Del Rey Oaks, Monterey, Pacific Grove, Seaside, Sand City, Monterey Peninsula Airport District, and portions of unincorporated Monterey County including Pebble Beach, Carmel Highlands, and Carmel Valley. The District has established five main goals:
1. Increase the water supply to meet community and environmental needs;
2. Assist California American (Cal-Am) Water in developing a legal water supply;
3. Protect the quality of surface and groundwater resources and continue the restoration of the Carmel River environment;
4. Instill public trust and confidence; and
5. Manage and allocate available water supplies and promote water conservation.
Rebates are available for water saving fixtures and appliances for homes and businesses. California American Water (Cal-Am), Seaside Municipal Water District, and other system customers within the District are eligible for a rebate when purchasing and installing water saving devices. Residential rebates are available for purchase of Qualifying Devices when funding is available. The following are residential rebates:
High Efficiency Toilet — $75;
Ultra High Efficiency Toilet — $125;
Toilet Flapper — $15;
Pint Urinal — $250;
High Efficiency Residential Dishwasher (Maximum of 3.5 gallons per cycle and has Energy Star certification) — $125;
High Efficiency Residential Clothes Washer (Water Factor of 4.3 and Energy Star Certification) — $500;
A second or subsequent rebate for replacing a High Efficiency Clothes Washer is available after 8 years;
Instant-Access Hot Water System — $200 per Qualifying Property; On-demand pump or point-of source water heater as part of an Instant-Access Hot Water System — $100 per component, to a maximum of two components per Qualifying Property; Multi-Family Dwelling Meter Split — $100/dwelling unit; Smart Irrigation Controller — $100 with four stations. Additional $10 available per station up to twenty (20) stations;
Attachment 1
Appendix G – Energy Conservation G-5 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023Chapter 5.0 – Energy Conservation 5 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Formatted: Left
One or more Soil Moisture Sensor(s) on a conventional automatic Irrigation System — $25 per sensor;
Cistern water tanks — $50 per 100 gallons of water storage capacity (up to 500 gallons) in a Cistern, then $25 per 100 gallons of water storage capacity up to a maximum storage capacity of 25,000 gallons per Qualifying Property. Sites must have sufficient roof area to fill Cistern and may require an inspection;
Lawn removal and replacement with low water use plants or permeable surfaces — $1.00 per square-foot to a maximum of 2,500 square-feet per Qualifying Property. Pre-qualification, inspections and deed restrictions are required;
Rotating Sprinkler Nozzles (minimum purchase and installation of ten) — $4.00 per nozzle; Graywater Irrigation System supplied by one Clothes Washer for irrigation — $100. A site inspection is required by Building Inspector and/or MPWMD; and Graywater Irrigation System supplied by one or more Bathrooms that have a Bathtub/Shower connected to a Graywater Irrigation System — $100 per Bathroom. (Residential limit: 4) A site inspection is required by Building Inspector and/or MPWMD.
As part of the 6th Cycle Housing Element Update process, the City of Carmel-by-the-Sea will continue to implement a Water Conservation program that supports the MPWMD and also provides information to the community on water conservation retrofits and best practices.
Federal and State Programs
The Low-Income Home Energy Assistance Program (LIHEAP) is a federally funded program to assist low-income households that pay a high portion of their income on energy needs. LIHEAP is funded by the U.S. Department of Health and Human Services, Administration for Children and Families, Office of Community Services.
The Home Energy Assistance Program (HEAP) provides one-time financial assistance to help balance an eligible household's utility bill;
The Energy Crisis Intervention Program (ECIP) provides assistance to low-income households that are in a crisis situation. Such an example would be a household receiving a 24-48 hour disconnect notice or service termination by their utility company. Another example would be a household facing an energy-related crisis that could be deemed potentially life-threatening in the household, such as a combustible appliance;
LIHEAP Weatherization provides free energy efficiency upgrades to low-income households to lower their monthly utility bills while also improving the health and safety of the household's occupants;
Attachment 1
Appendix GChapter 5.0 – Energy Conservation G-6 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Education on basic energy efficiency practices and instruction on the proper use and maintenance of installed weatherization measures; and
Energy budget counseling.
The Inflation Reduction Act (IRA) has provided significant federal funding to support electrification of new construction, renovations, and existing buildings over the next ten years. Enhanced amounts are provided for income-qualified residents. Support provided by IRA includes:
New Home Construction Tax Credits (single family or multi-unit) Up to $2,500 tax credit if meets Energy Star certification requirements; Up to $5,000 tax credit if meets Zero Energy Ready Homes certification requirements; and Tax credit is "per unit" for multifamily developments; maximum tax credit requires conformance with prevailing wage requirements.
Home Improvement Tax Credits (for households with tax liability) 30 percent of project cost, capped at $2,000 for heat pump installation and $1,200 for other energy efficiency appliances and improvements; and
Available January 2023 through 2032; tax credits can be claimed on a per year basis.
Home Improvement Tax Rebates (for low and moderate-income households) Rebates up to $14,000 depending on income for heat pumps, induction and electric ranges, and other energy efficient improvements; and
Available Fall 2023 through 2032.
Home Renewable Power Tax Credits
30 percent of project cost for installation of solar panels, battery storage, and any other renewable power source on property;
Example: $19,000 to install rooftop solar panels generates $5,700 tax credit; and Retroactive to 2022, full credit sunsets in 2032; then 22 percent credit expires in 2035.
The Property Assessed Clean Energy (PACE) Financing program enables property owners to secure upfront funding for energy efficiency, water efficiency, renewable energy, and seismic improvement projects. These improvements are repaid through an up to 20-year special line item on their property taxes instead of traditional consumer credit.
The City includes a programs in the 6th Cycle Housing Element to promote energy conservation and green building and to actively disseminate information about State and Federal programs.
Attachment 1
Appendix G – Energy Conservation G-7 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023Chapter 5.0 – Energy Conservation 7 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Formatted: Left
Energy and Resource Conservation
Need
Programmatic Action
Energy Efficiency Program 2.4.A: Housing Rehabilitation and Maintenance Information Program 4.1.B: Energy Conservation and Green Building
Water Conservation Program 4.1.A: Water Conservation
Formatted: Centered
Formatted Table
Formatted: Font: Bold
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Attachment 1
Appendix GChapter 5.0 – Energy Conservation G-8 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 This side intentionally left blank.
Attachment 1
Stakeholder Survey H
APPENDIX
Attachment 1
Table of Contents
APPENDIX H STAKEHOLDER SURVEY .................................................................................. 1 H.1 Stakeholder Survey .................................................................................................................... 1 Attachments
Attachement A Stakeholder Survey Questions
Attachment B Open-ended Responses
Attachment 1
Appendix H -- Stakeholder Survey H-1 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023
1.0 Appendix H
IntroductionStakeholder Survey
H1.1 Stakeholder Survey
The Housing Element Stakeholder Survey was conducted from May 24, 2023 to July 6, 2023 to provide residents, business owners, visitors, and people working in Carmel-by-the-Sea with an opportunity to share input on what housing needs exist in Carmel-by-the-Sea and to share ideas on how the City can achieve its Regional Housing Needs Allocation (RHNA). The survey consisted of 21 questions designed to inform the City of what demographics exist in the City, what the affordable housing needs are, and how the 6th Cycle Housing Element can best meet these affordable housing needs. The survey was conducted in both English and Spanish. The survey was available online at the Carmel-by-the-Sea Housing Element page (homecarmelbythesea.com).
City of Carmel-by-the-Sea staff shared information about how to take the survey during the June 15, 2023 joint City Council and Planning Commission meeting. The survey was also distributed throughout town to local businesses in an effort to reach groups who are not typically represented, including people who work in Carmel-by-the-Sea. A total of 156 survey responses were received in English and 1 response was received in Spanish.
The survey responses discussed below represent responses from an uncontrolled sample size of selfselected community members who are considered to be motivated and interested in the 6th Cycle Housing Element. This can make it difficult to draw conclusions based on the responses received.
The following serves as a brief summary of the responses received.
Online Survey Results
Respondent Demographics
The City collected a total of 157 responses to the survey. As shown in Figure 1 below, survey respondent ages range from 18 to 75 years and older. The fewest survey responses were collected from respondents ages 18-34 (3 percent) and the majority of the survey responses collected were from respondents ages 55-74 (87 percent). This indicates an underrepresentation of younger community members in the survey results, and indicates a need for additional future outreach to target these groups.
Of the respondents, 74 percent identified as non-Hispanic White and 50 percent of the respondents identified as earning above $100,000. Thirty-one percent of survey respondents preferred not to Formatted: No bullets or numbering
Attachment 1
Appendix H -- Stakeholder Survey H-2 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 disclose their annual income. In general, the majority of survey respondents are between the ages of 55-74, are non-Hispanic White, and earn over $100,000.
1%
2%
8%
8%
24%
26%
31%
0% 5% 10% 15% 20% 25% 30% 35%
$0-$25,000
$25,001-$50,000
$75,001-$100,000
$50,001-$75,000
$200,000 or more
$100,001-$200,000
Prefer not to say
Figure 2: "What is your annual household income?"
1%
3%
4%
16%
22%
55%
0% 10% 20% 30% 40% 50% 60%
35-54, 55-74
Prefer not to say.
18-34
75+
35-54
55-74
Figure 1: "How old are you?"
Attachment 1
Appendix H -- Stakeholder Survey H-3 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Figure 4 below demonstrates the majority of respondents identified themselves as Carmel residents owning their home (61 percent) compared to 14 percent of survey respondents indicating they rent their homes. Twenty-two percent of respondents identified as working in Carmel-by-the-Sea, 8 percent identified as business owners in Carmel-by-the-Sea, and one respondent identified as being unhoused or lacking permanent housing.
1%
8%
14%
17%
22%
61%
0% 10% 20% 30% 40% 50% 60% 70%
I am unhoused/do not have permanent housing
I own a business in Carmel-by-the-Sea
I live in Carmel-by-the-Sea and rent my home.
Other
I work in Carmel-by-the-Sea
I live in Carmel-by-the-Sea and own my home
Figure 4: "Describe your role in the community."
0%
1%
1%
1%
1%
3%
8%
18%
75%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Native Hawaiian or Pacific Islander
Blended
Middle Eastern
Black or African American
Asian or Asian American
Native American
Hispanic, Latino, or Spanish origin
Prefer not to say
White (non-Hispanic)
Figure 3: "Which racial or ethnic group(s) do you identify as?" Attachment 1
Appendix H -- Stakeholder Survey H-4 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Figure 5 below demonstrates that the majority of survey respondents live in Carmel-by-the-Sea fulltime, and Figure 6 below demonstrates that 68 percent of survey respondents are 55 years or older followed by 16 percent being female-headed households. This demographic data suggests that respondents are likely more established community members in the City. 15%
20%
65%
0% 10% 20% 30% 40% 50% 60% 70%
Part-time
Not applicable
Full-time
Figure 5: "If you are a current resident of Carmel-by-the-Sea, do you live here full-time or part-time?"
1%
1%
3%
16%
26%
68%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Unhoused
Single-Parent Household
Differently Abled / Disabled
Female Headed Household
None of the above apply
Senior (55+)
Figure 6: "Do you identify with any of the following?"
Attachment 1
Appendix H -- Stakeholder Survey H-5 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Desired Housing Types
Survey respondents were asked to identify which housing types they would prefer to live in, of which approximately 83 percent identified single-family homes, followed by 6 percent identifying condominiums, 5 percent identifying apartments, and 3 percent identifying ADUs (Figure 7).
Note: See Attachment B for a full list of “other” responses received.
Respondents were asked to explain why they would prefer to live in ADUs. The following 5 responses were received:
• Privacy;
• Aesthetic (assuming newer prefabricated ADU), privacy and affordability; • Privacy & more quiet than apartment;
• I only need space for a single bed, table & chair, toilet sink, shower. I work 7 days a week. I just need 800 square feet; and
• Affordable housing.
Respondents were asked to explain why they would prefer to live in an Apartment. The following 7 responses were received:
• I have little time for motivation for the upkeep of a whole house; 3%
3%
5%
6%
83%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
ADU
Other
Apartment
Condominium
Single-Family home
Figure 7: "In which of these housing types would/do you prefer to live in?"
Attachment 1
Appendix H -- Stakeholder Survey H-6 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 • I am at the stage in my life where I am seeking to maximize my financial solvency through steady accrual of work skills/experience and high willingness to relocate for greater chances of quality employment. I will not seek any living place requiring greater commitment until I have found the community most suited to sustaining both my professional growth and my standard of living;
• Affordability and community living opportunities. Apartments are like little families. Single family homes are like balkanized islands, with little communion; • Affordable and give the freedom to move quickly;
• Most affordable option;
• Convenience; and,
• Single; No maintenance; Safety/Security.
Respondents were asked to explain why they would prefer to live in a Condominium. The following 10 responses were received:
• It's the right amount of space I'd need and likely more affordable and feasible than a singlefamily home; • Pride of ownership, take better care of community and more involved; • Makes better use of land without the problems associated with high density rental properties; • Easy maintenance;
• Maintenance lower;
• Less maintenance;
• Less expensive alternative to single-family housing;
• Amenities;
• Would rather own than rent; and,
• No maintenance
In the next survey question, respondents were asked to identify the types of housing they would like to see constructed in Carmel-by-the-Sea. A list of options was provided and respondents were asked to select all that applied (they could select more than one choice). Figure 8 below demonstrates the most common housing types respondents would like to see built are: Condominiums (50 percent); ADUs (49 percent); Apartment rentals (47 percent); and Senior Housing (44 percent). Seventeen percent of respondents shared their own ideas, which are captured as “other” in Figure 8, and can be found under Question #10 in Attachment B where all “free responses” are listed.
Attachment 1
Appendix H -- Stakeholder Survey H-7 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Note: See Attachment B for a full list of “other” responses received.
Affordable Housing in Carmel-by-the-Sea
Survey respondents were asked how the supply of affordable housing could be increased to meet the needs of the community. A list of options was provided and respondents were asked to select all that applied, with many respondents selecting more than one choice.
The majority of respondents (55 percent) selected “second-story additions to single story buildings could provide affordable housing downtown,” followed by 52 percent of respondents selecting “guesthouses could be converted to Accessory Dwelling Units,” and 36 percent selecting “set a maximum square footage limit on housing units downtown as a means to create more small units.” Thirty-two percent of respondents shared their own ideas, which are captured as “other” in Figure 9, and can be found under Question #11 in Attachment B where all free responses are listed. 17%
20%
22%
34%
39%
44%
47%
49%
50%
0% 10% 20% 30% 40% 50% 60%
Other
Triplex
Fourplex
Duplex
Single-Family Home
Senior Housing
Apartment
Accessory Dwelling Unit
Condominium (owned)
Figure 8: "What type of housing would you like to see constructed in Carmel-by-the-Sea?"
Attachment 1
Appendix H -- Stakeholder Survey H-8 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Note: See Attachment B for a full list of the “other” responses received. The “other” responses are the open-ended responses that were received.
Respondents were asked what affordable housing resources should be provided in the City of Carmel-by-the-Sea (Figure 10). Out of 157 responses, the majority of respondents (69 percent) selected “information about affordable units,” followed by 33 percent selecting “tenant assistance resources,” and 32 percent of respondents selecting “down payment assistance.” Nineteen percent of respondents shared their own ideas, which are captured as “other” in Figure 10, and can be found under Question #12 in Attachment B where all free responses received in the survey are listed.
26%
30%
32%
34%
36%
52%
55%
0% 10% 20% 30% 40% 50% 60%
Change the zoning code to allow 3-story buildings
downtown specifically for affordable housing.
Fund the creation of affordable housing through a housing vacancy tax or bond funding.
Other
Create objective (yes/no checklist-style) design standards for new housing projects that include affordable units.
Set a maximum square footage limit on housing units in
downtown to spur the creation of more small units…
Encourage property owners to convert existing
guesthouses and studios to legal Accessory Dwelling…
Encourage second-story additions to single-story buildings downtown specifically for affordable housing.
Figure 9: "How can the supply of affordable housing be increased to meet the needs of our community?"
Attachment 1
Appendix H -- Stakeholder Survey H-9 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Note: See Attachment B for a full list of the “other” responses received. The “other” responses are the open-ended responses that were received.
Increased Housing and Local Businesses
Survey respondents were asked what effect providing more housing units would have on local businesses in Carmel-by-the-Sea, of which 39 percent indicated more customers, 21 percent indicated no change, and 7 percent indicated fewer customers. Thirty-two percent of respondents shared their own ideas, which are captured as “other” in Figure 11, and can be found under Question #15 in Attachment B where all free responses received in the survey are listed. 5%
19%
26%
28%
32%
33%
69%
0% 10% 20% 30% 40% 50% 60% 70% 80%
None
Other
Housing Choice Voucher program (federal)
Information on Fair Housing/ How to file discrimination claims
Down payment assistance
Tenant assistance resources
Information about affordable units
Figure 10: "What affordable housing resources do you feel should be provided in Carmel-by-the-Sea?"
7%
21%
32%
39%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Fewer customers
No Change
Other
More customers
Figure 11: "What effect would providing more housing units in Carmel-by-the-Sea have on local businesses?"
Attachment 1
Appendix H -- Stakeholder Survey H-10 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Note: See Attachment B for a full list of the “other” responses received. The “other” responses are the open-ended responses that were received.
Benefits of Living in Carmel
Survey respondents were asked what the most appealing elements about life in Carmel-by-the-Sea is.
The most common response was Parks/Beach/Recreation (89 percent), followed by Architectural Aesthetic (67 percent), and Public Engagement/Community (50 percent). Eighteen percent of respondents shared their own ideas, which are captured as “other” in Figure 12, and can be found under Question #7 in Attachment B where all free responses are listed.
Note: See Attachment B for a full list of the “other” responses received. The “other” responses are the open-ended responses that were received.
Discussion of Results
The majority of respondents were between the ages of 55 and 75, earned more than $100,000 year, and owned homes in Carmel-by-the-Sea. This indicates responses from a group who is generally well established in the City and may not adequately capture community-wide ideas towards housing needs, for example from a younger renter or worker in the community.
Although respondents indicated their preferred housing type to live in is a single-family dwelling, many respondents indicated a need for more diverse housing types within the City, such as condominiums, apartments, and ADUs which could help to provide more affordable housing options in the City. The 6th Cycle Housing Element includes programs to increase these housing types. Program 1.3.C (Accessory Dwelling Units) will streamline ADU permitting, Program 1.4.A 10%
17%
18%
24%
43%
50%
68%
89%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Employment opprotunities
Housing investment property
Other
The school district
Amenities (shopping,services).
Public engagement/community
Architectural Aesthetic of the housing
Parks/Beach/Recreation
Figure 12: "What are the most appealing elements about life in Carmel-by-the-Sea?"
Attachment 1
Appendix H -- Stakeholder Survey H-11 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 (Eliminate Unnecessary Use Permits) will incentive multi-family type housing by removing permitting barriers, and Program 3.1.G (A Housing Priority Overlay Zoning District) encourages a higher unit yield within the commercial and multi-family zoning districts.
A number of respondents did indicate a preference for constructing condominiums, apartments, and ADUs.
When asked how the supply of affordable housing could be increased within Carmel-by-the-Sea, the most common selected responses out of provided options were: 1) encourage second-story additions to single-story buildings downtown, 2) convert guesthouses to ADUs, and 3) set a maximum square footage limit on housing units downtown. Number one will be addressed via Program 2.3.A (Preserve and Increase Upper Floor Residential Uses), number two will be addressed via Program 1.3.C (Accessory Dwelling Units), and number three will be addressed via Program
3.1.G (A Housing Priority Overlay Zoning District). For this question, respondents were also given the opportunity to provide their own response. Themes from these free responses include: utilize empty or underutilized parking lots for housing, turn Flanders Mansion into housing, and sentiment that there is not enough space in Carmel for additional housing. Program 1.1.B (Underutilized Sites) addresses exploring underutilized sites, with the City committed to actively investigate underutilized publicly owned sites such as parking lots.
When asked what affordable housing resources should be provided in Carmel-by-the-Sea, the overwhelming majority of respondents selected “information about affordable units.” The 6th Cycle Housing Element includes a Program 5.1.A in which the City will work with fair housing organizations and increase outreach efforts to connect community members to affordable housing opportunities.
Most property owners indicate they are not interested in re-developing their property to include more housing, such as ADUs. However, there were a handful of property owners that did indicate interest. Property owners indicated interest in building additional housing on their property if parking requirements were waived, permitting fees lowered, and water credits made available.
The last two survey questions focused on life in Carmel-by-the-Sea. The majority of respondents believe more housing would result in more customers for local businesses. A handful of respondents said that more housing would result in fewer customers, which appears to be an assumption based on the concern that more housing would result in less parking available for visitors. While the 6th Cycle Housing Element does allow for parking reductions for affordable housing projects, it also requires that all existing parking be integrated into the new housing development, if for example a parking lot is converted.
Finally, respondents were asked about the most appealing aspects about living in Carmel-by-the-Sea.
The most popular response was “Parks/Beach/Recreation,” followed by “Architectural Aesthetic of Attachment 1
Appendix H -- Stakeholder Survey H-12 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 the Housing,” followed by “Public Engagement/Community.” It is clear that the architectural character and charm of Carmel-by-the-Sea is a major reason people choose to live in Carmel-by-theSea. It is evident that a number of community members fear that meeting the RHNA will disrupt this charm they love. Program 1.4.B (Objective Design Standards) will allow the City to retain their design aesthetic while streamlining the permit process. Additionally, based on the survey results, community is also an important aspect of living in Carmel-by-the-Sea. With a current vacancy rate of 51 percent, more market rate and affordable units will result in more full-time community members, which will enrich the community of Carmel-by-the-Sea.
Attachment 1
Stakeholder Survey Questions A
ATTACHMENT
Attachment 1
Attachment 1
Appendix H -- Stakeholder Survey 1 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023
1. How old are you?
<18
18-34
35-54
55-74
75+
Prefer not to say
2. Which racial or ethnic group(s) do you identify as?
Black or African American
White (non-Hispanic)
Asian or Asian American
Hispanic, Latino, or Spanish Origin
Native American
Native Hawaiian or Pacific Islander
Prefer not to say
Other: _____
3. Do you identify with any of the following? Select all that apply.
Senior (55+)
Female-Headed Household
Differently Abled/Disabled
Unhoused
Single-Parent Household
None of the above apply
4. What is your annual household income?
$0 - $25,000
$25,001 - $50,000
$50,001 - $75,000
$75,001 - $100,000
$100,001 - $200,000
$200,000 or more
Prefer not to say
5. Describe your role in the Community. Select all that apply.
I live in Carmel-by-the-Sea and rent my home.
I live in Carmel-by-the-Sea and own my home.
I represent a community organization (please specify): ______ I am unhoused/do not have permanent housing.
I own a business in Carmel-by-the-Sea.
I work in Carmel-by-the-Sea.
Attachment 1
Appendix H -- Stakeholder Survey 2 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 I visit the City but live elsewhere (please specify): ______ Other: _____
6. If you are a current resident of Carmel-by-the-Sea, do you live here full-time or part-time?
Full-time.
Part-time.
Not applicable.
General Survey Questions
7. Residents and non-residents, what are the most appealing elements about life in Carmel-by-the-Sea? Select all that apply.
a. The school district.
b. Parks/Beach/Recreation.
c. Employment opportunities
d. Housing (please specify, i.e. “investment property” or “architectural aesthetic,” etc.):
_____
e. Amenities (Shopping, Services).
f. Public engagement/community.
g. Other: _____
8. When considering housing affordability and availability, what factors might influence your decision to reside in Carmel-by-the-Sea or outside of the City? Select all that apply.
a. Limited supply/availability of housing.
b. High cost of housing.
c. Limited employment opportunities.
d. Limited variety of housing options (limited multi-family options, micro-unit options, etc). e. Small lot sizes.
f. Lack of demographic diversity.
g. Other: _____
9. In which of these housing types would/do you prefer to live, and why? a. Accessory Dwelling Unit, because:
b. Single-Family Home, because:
c. Apartment, because:
d. Condominium, because:
e. Other, because:
Attachment 1
Appendix H -- Stakeholder Survey 3 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023
10. The State housing goal for Carmel-by-the-Sea is 349 new housing units (market rate and affordable) between 2023 and 2031. What type of housing would you like to see constructed in Carmel-by-the-Sea? Select all that apply. a. Apartment (rental).
b. Condominium (owned).
c. Single-family home.
d. Duplex.
e. Triplex.
f. Fourplex.
g. Accessory Dwelling Unit (ADU)/Junior Accessory Dwelling Unit (JADU). h. Senior Housing.
i. Other: _____
11. How can the supply of affordable housing be increased to meet the needs of our community? Select all that apply. Note: The following are examples and not the only options available. Use “Other” to suggest additional options. a. Encourage property owners to convert existing guesthouses and studios to legal Accessory Dwelling Units (ADUs) or construct new ADUs.
b. Encourage second-story additions to single-story buildings downtown specifically for affordable housing.
c. Change the zoning code to allow 3-story buildings downtown specifically for affordable housing.
d. Set a maximum square footage limit on housing units in downtown to spur the creation of more small units rather than just a few large units. e. Create objective (yes/no checklist-style) design standards for new housing projects that include affordable units.
f. Fund the creation of affordable housing through a housing vacancy tax or bond funding. g. Other: _____
12. What affordable housing resources do you feel should be provided in Carmel-bythe-Sea? Select all that apply. a. Tenant assistance resources.
b. Information about affordable units.
c. Information on Fair Housing/how to file discrimination claims. d. Down payment assistance.
e. Housing Choice Voucher Program (Federal).
f. Other: _____
13. If you own property, what would it take for you to consider adding a housing unit(s) on your property, such as an accessory dwelling unit? Attachment 1
Appendix H -- Stakeholder Survey 4 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 a. Answer:
b. Not applicable because:
14. If you own property, would you consider redeveloping your property to include new housing? Examples include building an ADU/JADU, converting commercial office space to an apartment, or constructing a second-floor addition with apartments.
a. Yes, because:
b. No, because:
c. Not applicable because:
15. What effect would providing more housing units in Carmel-by-the-Sea have on local businesses?
a. More customers.
b. Fewer customers.
c. No change.
d. Other: _____
16. How does, or how would, living in Carmel-by-the-Sea benefit you? (Quality of life question). Answer:
Attachment 1
Appendix H -- Stakeholder Survey 5 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Open-ended Responses B
ATTACHMENT
Attachment 1
Appendix H -- Stakeholder Survey 6 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 The following lists the open-ended responses received for survey questions 7, 10, 11, 12, 13, 14 ,15, and 16. These responses are indicated as “other” in the figures.
Question 7: “What are the most appealing elements about life in Carmel-by-the-Sea? Select all that apply.” See corresponding Figure 12.
A forest with a village and a beach!
Our neighbors are kind and we help one another.
2 hour commute from home
The natural beauty of the setting on the California coastline.
Trees, scenic pathway, ocean views, sunsets, walking town, dog friendly Volunteer opportunities
The natural beauty of the Forest and beach, etc.
The peninsula provides most big city benefits without the downside beauty of our area and lack of traffic and homeless
garage bands
No streetlight, quiet, good air quality
Weather/climate
Mainly small unostentatious but unique homes on small lots in natural settings.
Serenity, beauty, simple life
Weather, mountains, beach
Question 10: “The State housing goal for Carmel-by-the-Sea is 349 new housing units (market rate and affordable) between 2023 and 2031. What type of housing would you like to see constructed in Carmel-by-the-Sea? Select all that apply.” See corresponding Figure
8. Condominium (owned), *Must say, unless you convert a hotel I don’t know how you will nicely achieve this. I don’t think anyone wants to see high rises.
Housing that naturally flows from a century of local control I appreciate the efforts of the city to meet the State's dictates, but I do not believe adequate thought has been placed on the implications of additional housing on the natural setting of Carmel, as well as traffic, parking, services, etc. Once built, who will be responsible for maintenance? And who will fairly determine who is allowed to live in these 350 units? I also do not believe that the longer-term has been considered. If 350 units are added in this round will more units be required in the future? There are many more people who work in Carmel's low paying service sector than can ever be accommodated in the surrounding residential area, and the existing residential area should not be expected to serve Carmel's commercial sector.
Also, if changes are made to accommodate development of affordable housing, won't some of these changes also be used by clever developers of luxury housing to build larger, more ostentatious housing?
I don't think it is feasible to build affordable housing given the value of the property and cost of building.
Attachment 1
Appendix H -- Stakeholder Survey 7 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Less housing. Isn’t 3,000 homes in one square mile enough? I’m not pro-densification. 4,000 square foot lots are already small. We already have small setbacks.
Minimally invasive to character of Carmel.
No additional housing
no more new housing
None
None — Carmel should determine what is right for its citizens not bow to government bureaucrats
None It is too crowded already. Parking is already a problem None - this needs to be a local decision - not mandated by the state None.
none. we have no space. how about building housing at fort ord area None. Ridiculous amount of homes being required by the State. Will destroy Carmel by the Sea.
Resistance/Reduction of State housing goal
We should fight this ridiculous "mandate" from on high! Would like to see use of second story condos over downtown business only. Against removing Sunset Center parking unless able to dig subterranean parking. Do not think there is space for 349 homes without razing the character of Carmel. Eastwood and others improved water availability and do not believe there is sustainable possibility here--instead, build up city portions in other portions of Monterey county. If would be more efficient and better for the environment
Question 11: How can the supply of affordable housing be increased to meet the needs of our community? Select all that apply. Note: The following are examples and not the only options available. Use “Other” to suggest additional options. See corresponding Figure 9. “Affordable housing” is not a right. Supply and demand is the driver of market rates for housing and all other products and services. Work with builders and developers to find solutions and don’t make everything so arduous and difficult and fee intensive. There is no “one size fits all solution”. Each neighborhood, street and property presents its own problems and solutions.
Affordable housing directives aren’t necessary.
Aggressively tax homes that are NOT primary residences. Anyone using Carmel as their vacation home is contributing to the housing problem. Let’s make all of Carmel primary residences or full time rentals!
allow free market forces to guide the housing in the community Annex land outside city for affordable housing
Build housing on the outskirts and empty parking lots
Carmel should not be forced to change its look, feel and style! CBTS is nearly fully built out and highly desirable and therefor expensive. Adding housing will only ruin the quality of life in the city. Build the additional housing out in the Fort Ord area.
encourage landowners to build on empty lots, fast-track building permits Attachment 1
Appendix H -- Stakeholder Survey 8 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Fight back. There’s no land here for development.
First define "our community." Whose needs are being met? Service workers in the business district? Teachers? Artists? Seniors? If racial/ethnic diversity is a goal, then make sure these people are included in the discussion. Then ask what sort of housing these people wish to have - do not dictate this for them. Keeping in mind that at this point only 350 units would be available, then do what it appears the planning office is recommending. Focus on areas in the central business district that could be enhanced by development and that will not encroach upon residential areas that are already built out with small homes on small lots.
Prioritize opportunities for purchasing versus renting so people can benefit from investment and not simply pay rent to a landlord. Any building should require attention to parking availability, increased traffic, environmental impact, and potential increased commercial needs (grocery stores, etc.). I also believe that an argument can and should be made that areas beyond the tiny jurisdiction of Carmel by the Sea can do more to accommodate affordable housing needs, and provide people with larger dwellings and ownership opportunities. Senator Laird seems to be leaning this way.
Hospitality requires workers who aren't paid enough to live here. Hospitality should bear the cost of providing housing for their workers; it is not the responsibility of residents I did not think that there is a good reason to change the town as we are too small and do not have the availability of land to do this
I do not believe CBTS should be required to provide "affordable housing". I believe in the free market factors.
It is absolutely ridiculous to plan affordable housing in a community the size of carmel Bythe-Sea.
Less short term rental places, more long term rental options Limit the number of the short term vacation rentals of houses MAKE CERTAIN THE NEED EXISTS. Ask those who work in Carmel if they & their families are willing to give up the square footage they now enjoy to live in Carmel in half the space.
N/A. How will you address the issue of water & parking? Not everyone can live in the Carmel area. Not enough room! Small lots. Neighbors too close!
OPPOSE THE MANDATE
Press upon our representatives the lack of space in our tiny village and encourage housing in other parts of the county
Push back on State mandate
Reaching the state mandated goal will destroy the character and charm of Carmel There is no space for this in Carmel - but our state is huge - build housing elsewhere. Anyone who thinks Carmel can accommodate “affordable” housing hasn’t built here! Utilize empty lots for single family housing.
Where is the Water going to come from for any of this?
work with our neighboring communities that have land/water available for housing Attachment 1
Appendix H -- Stakeholder Survey 9 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Question 12: “What affordable housing resources do you feel should be provided in Carmel-by-theSea? Select all that apply.” See corresponding Figure 10.
A map of someplace else
affordability is the main factor. No gov. assistance should be involved Affordable housing outside city limits.
I don’t know.
I don't care for any of the choices
I’m not sure.
Limit to that which is currently available
N/A. The city is not obligated to provide affordable housing None
None
None
None
NONE
None
none
NONE
None
None of the above
None. Carmel is NOT affordable for everyone. No one would want to help me if I wanted to live in the first arrondisement in Paris!
None. “Affordable housing” is a result of market demand.
Not for the City to get involved in.
Nothing.
Provide a gig economy type resource such as Airbnb or Neighborhood Storage to allow owners to rent out rooms
Rental agencies
Simplify the building code. Reduce the planning commission to 3, There is smooch open ground within 1/2 hour of Carmel why would anyone in their right mind try to jam affordable housing in a community as small and as expensive as Carmel? Unknown
Question 14: “If you own property, would you consider redeveloping your property to include new housing? Examples include building an ADU/JADU, converting commercial office space to an apartment, or constructing a second-floor addition with apartments.” Note: There is no corresponding figure for this question.
No
Attachment 1
Appendix H -- Stakeholder Survey 10 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 yes I would consider
No
More space
no
I would, if I had more space.
No
No
No way
No. don’t be ridiculous
No
No
NOT
Our lot is too small and we’re already right on top of our neighbors No
ADU
No
I am not interested at this time to increase the density of my property No
I would consider an ADU. CTBS is not an apartment community. no
Absolutely not.
Not possible. No.
N/A, but no
No
The lots are too small
I would consider adding a second floor condo unit but not an apartment.
No
no
Yah, would like to build condominium to retain pride of ownership in community No
No. My house is already two stories. A third story would destroy the character of the neighborhood. I value the forest-like nature of the neighborhood and am not willing to remove the trees on the property to make space for an ADU. no
No
No
No
No
No, all the options above make a community a less desirable place to live.
No because the state is on the path to more rent control. How would I recoup my costs unless I sell.
Attachment 1
Appendix H -- Stakeholder Survey 11 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 No
n/a
Yes, converting second floor office space to apartments.
No
Yes
No
yes
No - My house location relative to the lot and steep hillside won't support an ADU.
Otherwise I would explore this.
Yes an ADU.
No
No. ly have to pay more property taxes than I do now
no
NO
Yes
Not enough space
No…see above
No.
N/A see above
I cannot afford to “redevelop” my 4,000 sf residential lot. if properly stimulated financially
We live in a modest 100 year old house. Altering it would be a travesty No
no
Yes, if lot would permit addition
Absolutely NOT!!
We already have a second story. I suspect many homeowners have similar situations. You might do better filling vacant commercial properties as there are quite a few. only a JDU is possible...but not of interest.
No, don't have the space or floorplan for an addition.
I believe that SFD zoning laws should be respected and followed; so I would not consider an ADU. ADU's as now allowed increase the density of our village without any other requirements to offset the impact: no parking, setbacks, no requirement to even rent at below market rate. Nothing gained and much loss to the community.
Heritage oak in the way.
No.
NA
Yes, all of the above
No
Only with some protection to me as an owner as mentioned above.
No
Attachment 1
Appendix H -- Stakeholder Survey 12 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 No
No
I could not afford to build anything. Fixed income senior No
I would consider it, but we cannot afford to do this.
No
No, my property is too small.
Too small
No
Build ADUs not encourage STRs
no (see above)
Not a property owner
Yes
Yes
I already have a legal subordinate unit.
No, see above
No
No. Already 2 story.
Since I live in a quiet neighborhood, I believe the best option for us is to build an ADU/JADU. The city should evaluate the house size to lot size ratio. With that houses can go to a second level without restrictions.
NA
yes
All of the above.
Yes - I am currently considering this.
N/A
Not at this time.
Yes
Yes.
N/A
No.
No
No, it's a single family home that I plan to live in.
Not sure. It’s a complex question.
na
Yes, but the city makes the permitting very difficult and the county does not have the water.
Yes
No
No
Attachment 1
Appendix H -- Stakeholder Survey 13 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Question 13: “If you own property, what would it take for you to consider adding a housing unit(s) on your property, such as an accessory dwelling unit?” Note: There is no corresponding figure for this question.
Extra housing on a 4000 sqft lot? No thanks
ability to pay for development and increased property taxes. ADUs appear the most realistic way approach to meet our 349 housing unit goals.
I wouldn’t
More space
My property is historic.
More land, more financial resources. All other existing elements are acceptable.
Untenable request due to lot limitations
There isn't space on my property to add an ADU
Wouldn’t happen
I would move out of the city if affordable housing continues to be forced on Carmel, and if it indeed comes to fruition
Guidelines to keep the charm and permit process loosened.
Never
I would NOT consider adding a unit to house somebody else We have a tiny lot and there is no room
We are content with our property just the way it is
HIghly cooperative City regulations and water
No
It should be my choice and not mandated by the State
I would not build an ADU on a 40x100 lot. My poor neighbors! Nothing
If CTBS changed the access to water and limits on lot coverage, many owners would build ADU's because they would like to have more space available. I would build an ADU and put a relative in it.
There isn't enough room and there isn't enough water
Absolutely not. The city won't even let me build a car port let alone another dwelling! We do not have room so we could not consider it.
N/A, but if I owned, I would build an ADU for my aging parents I wouldn’t consider it.
More land
Less restrictions on adding units and off street parking.
No
I live on a 4000 sqft lot - cant imagine having additional people on the lot.
Upzoning to allow for condominiums
Nothing would convince me
Attachment 1
Appendix H -- Stakeholder Survey 14 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Waive lot coverage limits to permit ADUs on small lots
My lot is fully built out. I would have to remove trees in order to add an ADU. no
Not enough space to build an ADU
No room to do so. Nothing could convince me to build a unit I would only consider housing unit for family members
How would we possibly fit an extra unit on our small lot and where is the water going to come from?????
Nothing would ever entice me to add an ADU to my Pebble Beach property.
Lower the cost of fees, lot coverage, water demand and red tape No
own property in another county but purchase in Carmel not affordable n/a
Waive or lower permit fees and improve the building permit process so it is quicker.
Not relevant
Change in Building Codes
Tax break
Not much as have considered.
The position of my house on the lot and the steepness of my backyard won't support an ADU
Currently have an ADU. Have rented it in the past.
I would not consider adding housing to my property. Parking is an issue as is noise and congestion.
a larger lot!
In 4,000 sq. ft and a 1600 sq. ft. hour, where would I put it and would the city allow my extra water rights?
more space
Would never do this the lots are already tiny and this would look horrible it would also eliminate trees which is no good
Significant tax credits
Not enough space
No room for an additional unit.
streamlined, affordable, planning and design services
No incentive would encourage me to add housing to my property. there is not enough space on our property to add an ADU I would be happy to convert my 250 sf garage to an ADU. It’s on the lot line so the city will have to give on that, and it’s my only off-street parking, so the city will have to give on that as well. Also, I’d need more water credits.
financial stimuli
Not possible. Lot already too small
Lot us too small
Nothing
Attachment 1
Appendix H -- Stakeholder Survey 15 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 nothing
Planning Commission objections to design elements they do not like. lower permit fees Already have an ADU on the property.
I am not at all interested.
My house already occupies most of the lot.
No - There is no viable space on our corner lot
Don't have the space for separate structure but might consider roommate if had the space A much bigger parcel of land so that the ADU structure did not impact my privacy or that of my neighbors. It would have to be in compliance with existing SFD zoning. It would have to have room for off street parking and room to create a lovely landscaped setting for the occupant.
Water available and space to put one. Tree in the way now.
My lot is too small to add an ADU
NA
Eliminate fees, fast track permitting, have the City maintain a renter registry so that recreation rentals are prohibited.
No space for anything
Make the permitting process easier. Fine citizens who weaponize archaic zoning laws for NIMBYism. Make being a NIMBY uncool.
Some way to positively prevent irresponsible people renting it. CA rental laws are so biased against the property owners it's nearly impossible to evict deadbeats or creeps.
Parking plan
Water allocation and change of building codes
N/A live outside of CBTS, but still in surrounding area.
Market rent
I don’t have room on my lot to add a unit
Not possible on our small lot
I would need financial assistance to do that.
Increase the size of the lot. Already built out to allowable size on lot.
Decreased red tape and incentives.
I wouldn’t do it. Too small.
Nothing
Reducing the county fees for permits and facilitate the programs to encourage ADUs.
Essentially incentivize efforts to do ADUs.
would depend on what kitchen facilities would qualify (we have a guest house but no room for another structure)
Not a property owner
Financial assistance to build an ADU
Permit streamlining and financial assistance
I already have a legal subordinate unit. I may want to convert it to an ADU.
I wouldn't because I would have to build such a unit from scratch and the return of investmen probably would be low, and the reduction in privacy and yard space.
Functional need arising internally
Attachment 1
Appendix H -- Stakeholder Survey 16 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 We would have to be allowed to cut down a large, healthy tree.
For the city to allow me to have different set backs, expedite approval process, maybe provide incentives for quick/economical building, and for the county to increase my water credits. I will be delighted to build an ADU in my property. Additionally, the city may consider making the size on the house bigger than the current 40% of the lot size. An option will be to expand to 50 or 60% of the lot.
Adding a kitchen to existing guest house (need water credits) NA
I own property in another county, but funding would be the primary requirement.
Reduced/eliminated planning and building fees. Real property tax assessment deferral.
More clarity on rules.
N/A
Have not considered it..mmm
Help with water restrictions, subsidy, low interest loan, clear regulations, reasonable standards and explanations for license and permits and building codes and inspection Low interest loan and property tax reduction incentive.
N/A
We would have no interest in doing this. Our home is already on a typical small lot. We have little to no backyard. There would be no parking for a tenant/tenants.
We have a gust house already
There is no room for that on my property.
Zoning changes, property tax breaks, neutral to positive cash flow model. na
Easier building laws and permit allocations.
Limitations on allowed max size of ADU
Question 15: “What effect would providing more housing units in Carmel-by-the-Sea have on local businesses?” See corresponding Figure 11.
“Affordable Housing” would not affect the businesses, because if people need help with housing costs, they cannot afford to support the local business. These people who need financial help with housing will probably add burden to public services such as police, schools, fire, paramedics, and infrastructure such as water and electrical.
Adverse affect since Carmel businesses wants to attract affluent visitors not workers in their own stores/restaurants
Affordable housing would not improve local business revenue Anything that hurts the livability here will hurt the businesses.
Carmel shops and restaurants are too expensive if on a low income Crowds, parking, traffic, crime, pollution—air and noise Depends on the disposable income of the new residents.
Depends on the type of shops .. overall could be more customers if service business and affordable goods
Destroy the look and feel of Carmel by the Sea.
Attachment 1
Appendix H -- Stakeholder Survey 17 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Even more congestion , traffic, lack of parking. Remember- let's not kill our Golden Goose.
Fewer customers. It's already hard to get to places due to lack of parking. Hills make it hard to walk with seniors and disabled and losing more spots to younger people would discriminate against aged and disabled
I am not sure, but can offer some thoughts. Residents in affordable housing will likely not be frequenting the tourist venues: the proliferating wine tasting rooms, high end clothing shops, art galleries, restaurants, etc. They will likely need different options that are not available in town. So either these are added (which means even more commercial activity paying low wages), or more people will be travelling to shop/eat out, etc in the surrounding areas. This implies that there are either even more cars on the roads or that mass transit will need to be enhanced so people can travel beyond town. Ideally, the local businesses would feel responsibility for making affordable housing available to the lower wage workers they hire, wherever possible. The idea that hotels would provide living quarters is a good one. Thought should also be put into reducing the number of business licenses in Careml by the Sea. As businesses move or close, these spaces could be made into housing. More service businesses simply means more lower paid workers who are unable to afford housing.
If below market, it would assist with employee housing and retention. increase in available workforce
Increased diversity; less traffic
It depends if the businesses provide some reasonably priced options It will be a traffic/parking nightmare. You can’t add 300+ Apartments and assume all those people are going to take the bus? The city spent more time actually keeping the city clean (and not rely on Carmel Cares) I think more people woukd frequent downtown CBTS.
It will compound the parking issues. PACT as now proposed: no time limit on parking and residents park free.
It would bring in more traffic and make the parking situation worse. This would drive away the tourists who are willing and able to spend money in the shops and restaurants here.
It would make parking even worse than it already is.
It would probably change the character of the town to some degree Less parking for visitors. Congestion
less tourists, less income
Like a lot of locals, other than Safeway, they wouldn't shop at local business Locals do not shop downtown, well except for the cheese shop.
Loss of parking spaces
loss of prestige and distinction -Carmel would no long be a worldwide magnet once the character and charm is destroyed by over development
Low income people will not shop in Carmel
maybe new residents but could they afford the shops and restaurant prices in carmel? More clients
More congestion and less parking
Attachment 1
Appendix H -- Stakeholder Survey 18 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 More crowded, less appealing to shop
More customers, as long as the units are for permanent renters and not visitors.
More employees/employers and City employees living in Carmel will increase demand for services of local businesses. It will also allow city employees to engage with the community and be part of local activities at their backyards.
More housing likely means more illegal short term rentals and vacation rentals - so I suppose business would go up.
More potential employees.
More traffic and no place to park!
More traffic. Less parking.
More workers that could live near their work.
Most would become vacation units of some kind.
Of course more people theoretically would would help local business I doubt that the high end stores will see any increase from the new medium and low income residences. I doubt that many of the high end shops in town will see any increase in buisness from the new medium and low income
Offer housing opportunities of housing for people that also work in Carmel! Only more customers, if the new residents could afford to shop locally.
Overcrowding and more traffic.
Overcrowding of parking spaces for shoppers.
Parking would be important. More housing comes with more cars.
Simply more congestion
They would probably recognize a need to carry more generally affordable options for lowerpaid residents This will cause a detrimental impact on the desirability just look at San Francisco fewer customers
Traffic congestion. If this town was 100% occupied our neighborhoods and roads could not manage the modern day traffic with most owning 2-3 cars.
Ugly buildings. No parking. Loss of charm of Carmel
Very little as parking is already a problem.
Question 16: “How does, or how would, living in Carmel-by-the-Sea benefit you? (Quality of life question)” Note: There is no corresponding figure for this question.
How does, or how would, living in Carmel-by-the-Sea benefit you? (Quality of life question) Financially and also scholastically.
Pretty incredible year round weather and ease of access to shops / services / restsurants.
Less traffic congestion would be a plus
394 units in this small area is ridiculous as the traffic and infrastructure not to mention water supply can’t handle it
Fresh air.
The physical benefits of walking the scenic pathway ir ti tien to town, scenic vistas, the architecture and trees are what we like best. We hope we can continue to live here. The expense is a huge sacrifice.
Attachment 1
Appendix H -- Stakeholder Survey 19 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 It’s a peaceful oasis from the busyness of our “regular” lives threatened by poorly designed and ridiculous government policies. The state owns most of the land in the state. They can and should be building affordable housing in less populous, not necessarily remote, locations of our state
Peace and quiet provided that the city doesn’t get more crowded.
Like the small scale community and peacefulness
N/A
Sense of community, cultural and out door events
Living in Carmel is a positive experience for the soul, whether to live or visit. Most people are fantastic. Nature, fresh air, and fairy tale esthetics are refreshing and inspiring. This is not a thriving metropolis by design and I appreciate that. There are different times for different places.
We live here and, once again, appreciate the small, unostentatious homes on small lots embedded in natural surroundings. Nature supersedes housing in Carmel. We appreciate our neighbors. We appreciate living on a street that does not have a lot of traffic, although this has increased. We appreciate being able to hike from our home in most directions and experience beauty.
Access to nature. Walkable town.
Carmel is my haven
Incredible schools, safe, beautiful place to raise my family What a beautiful place to live. I benefit by being so close to nature, knowing that there is a good school district. Glad I live near cities with more ex and social diversity and would like to see more here in Carmel.
We walk ‘into town’ everyday to support the local coffee shops and eat at least once a month at one of the restaurants. We rarely drive i to town unless we have an oversized package at the PO. I can tell you having lived here 25+ years we have watched it ‘slide’ like much of the rest of CA which was/is not only preventable, but sad.
Does not apply since I already live in Carmel-by-the-Sea. I am concerned that there is no work in Carmel requirement for those potential occupants of the new housing. Aren't we trying to eliminate the commute and the environmental impact of such traffic? I already live in Carmel-by-the-Sea and love it. If we add 349 units of affordable housing, there will be more traffic and overcrowding, which will diminish my property value. Please reject the state's misguided demands. Instead of wasting tax dollars to come up with a plan, we should be fighting the state with a lawsuit.
It's a great little community with a very low crime rate.
We have worked hard to be able to afford to live in this gem of a place. It is perfect the way it is. Affordable housing outside our tiny city would be my preference.
Beach walks and biking encourages my soul. Love the quiet. Value the Safety. greatly
Our current quality of life is excellent.
I live in Carmel because I can handle the weather, walking to town, close by groceries and medical facilities. I am old and cannot take care of too much anymore. I would hate to see town broken up by little ADU buildings where there used to be a pretty little flower gardens.
This town is already crowded. Whoever decided to break up town into 4000 square feet lots was not thinking.
Charming atmosphere… Beautiful views
Attachment 1
Appendix H -- Stakeholder Survey 20 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 In an earlier question, you asked what is attractive about living in Carmel - beauty of the landscape, the architecture and the urban forest - destroy that and you've destroyed Carmel Safe, clean, cool weather, golf, mountains, beach
love being able to walk most everywhere I go and not step over homeless on the sidewalks and have to deal with bay area type traffic
It's a peaceful city with a lot to do
We already live in Carmel-by-the-Sea and enjoy a nice quality of life just the way it is.
It is a tranquil, unique place to spend time. Cramming more housing into limited space will make it less appealing.
Living in downtown Carmel allows me to be a pedestrian, which increases my personal traffic through town. I am more likely to buy something when it catches my eye in the window. Also, walking like a pedestrian decreases my carbon foot print.
I already live here! Our quality of life is good -- walk daily, enjoy restaurants and events, and have developed a very nice community of friends. We like to live here and plan to do so for many years to come.
We would have loved to keep the parklets at all the restaurants since that made the city more friendly, encouraged walkability, and community. It gave the city a sense of vibrancy, excitement and camaraderie.
Already do - it is wonderful.
This has been my home for 23 years. I don’t want to have to leave.
I enjoy and treasure every moment of living in Carmel. Adding more housing is going to increase traffic, parking problems and congestion which are BIG negatives to the current quality of life here in Carmel. I suggest that a survey with the target audience be done to see who would be interested in living these proposed changes and could they even afford those! It’s a safe place.
There is abundant opportunity to enjoy the beach and MTNP.
Walkable life and friendly people with nice weather.
It is a beautiful town the way it is. Don't over develop it. If you cant afford to live in CBTS then you can always visit it. I am 100% against the changes proposed! Walk to work, walk to eat, walk to beach! It’s obvious a quality of life issue.
Social activities, restaurants, clean air, beautiful nature, lovely architecture, walkable community, less stress.
It would be more crowded.
Reduce my quality. If moving into town from Carmel Woods with larger lots, ocean and forest views, space between houses, wildlife and a large garden and small house, I would feel cramped. When I grew up in Carmel, our house was small, but there were undeveloped lots between houses, so we had places to play and our neighbors weren't right next to us.
I live here now.
Dog friendly
Attachment 1
Appendix H -- Stakeholder Survey 21 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Being close to Carmel Foundation for services allowing us to walk most places, & to shop, bank, eat out, go to the Sunset Center, the theatre etc.
The addition of so many units will be detrimental to the desirability of Carmel…..
I live here full time-adding additional housing is only going to decrease my quality of life as this village is not made for big city congestion.
Encouragement to walk to the beach and into town
Simple answer; I can live anywhere in the world I want to live and I choose Carmel for a myriad of reasons of which affordable housing is certainly not one! Carmel-by-the-Sea is special and it shouldn't be forced to provide affordable housing, it's a short commute to nearby towns that are more equipped to add housing.
Small town feel/friendliness; less worry about crime, drugs, vagrancy; strong pride in cleanliness, safety, livability of community; wonderful shops and eateries.
I would not live in a City that cratered to ridiculous demands from State government. If 349 units even begin to be sandwiched in Carmel- I move
CTBS is a very special place and it is no business of the government to change our community in any way. Our community is our decision, not up to the "State". We are not yet a communist county.
I like small town living.
If Carmel-by-the-Sea is required to build all these affordable units, the residential density will lower the quality of life and make it a much less desirable city for residents and tourists.
Safety
I like be able to walk everywhere, limited amount of noise pollution, access to events at the Sunset Center - and parking there for patrons.
Wonderful retreat. I appreciate the need to make it affordable for people who work there but do not ruin the charm of Carmel. Can these units be outside of the golden rectangle and be by the crossroads or somewhere else where there is space
Negative.
Sense of community.
It is relatively peaceful, but every holiday and weekend and special event bring hundreds or thousands of visitors. We don’t need to Manhattanize Carmel Great place to retire.
Because every restaurant and business is within walking distance, we are active and healthy.
Walking around also results in more friends and that makes a better community.
Love it! Need more more condominiums
Presently living in Carmel offers a unique experience with a peaceful, healthy way of life.
I would be able to live closer to work and in the CUSD school district for my kids No commuting so more time spent with family.
More active neighborhoods. It would likely result in more traffic, noise and possibly a slight uptick in crime. However, the town has lost ~20% of it's full time population in the 20+ years I've liked here. It can grow by 1000 residents without much pain.
Great weather, small community, friendly residents.
I love the small town feel, clean air, and quiet.
I live in Carmel now
I lke living here.
The same as now, as many homes empty.
Attachment 1
Appendix H -- Stakeholder Survey 22 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 I live here and value every aspect of it's beauty, people, nature, charm etc.
Actively involved community
Enjoy hiking in the community and visiting the beach.
Excellent walking and running without having to drive. Quiet forested neighborhoods. Good stuff.
Best Quality of Life experience, lived here 70 years.
High quality of retired lifestyle
I love living here...the beauty of the beach and forest is incredible, and I love the small-town feel of the village and the fact that I can walk everywhere.
Lifestyle
I love easy access to forest, beach, Sunset Center, downtown Small town life, running into people I know, clean air, pretty surroundings, peace and quiet, community engagement activities.
Low stress environment, nature, low crime
Active lifestyle, great school district, amenities, etc.
Diversity of every kind is good for everyone
I live here full time. I love the quiet atmosphere outside of the downtown district and the charming homes.
I love the way Carmel by the Sea integrates city living with the natural environment.
Living in Carmel by the Sea is a wonderful experience. I chose to live here so i can walk the streets and get to know my neighbors. I wish there were more apartments in the village center and less parking lots. I would recommend having tourist parking at cross roads and provide free electric shuttles to Ocean Avenue and the beaches to cut down on single car traffic.
It would be able to walk or bike to work. I would also be an integral part of the community I serve.
I love living in Carmel. I am incredibly blessed to have a home here and there are wonderful benefits. Strong community connections, peaceful and tranquil lifestyle, safety and security, opportunities for leadership, close to downtown where I can walk, and much more. Great presentation, great work and thank you!
I live and work in Carmel-by-the-Sea, so I rarely drive my car during the week. I feel safe where I live; it is a quiet street. I have access to multiple great restaurants and other small businesses, and I can walk to the beach. My family and friends can stay with me when they come to visit, and we can all enjoy the City together.
Would enjoy greater diversity
Great school district for my kids, the beauty and charm of the area makes me happy Proximity to outdoor activities.
for affordable housing it would allow a senior artist like myself to create art here and sell it in the shops instead of having to live outside of town.
Living in Carmel would reduce my daily commute time by three hours Living in Carmel immerses me in natural beauty and allows me to walk rather than take my car for many errands and services. I wish we had a few more of these services in the village these days.
Daily walks to beach, fresh air, minimal traffic; do not see any congestion.
Access to natural resources is incredible.
Attachment 1
Appendix H -- Stakeholder Survey 23 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 closer proximity to ocean/beach
Dream location.
peaceful, clean, healthy living, quiet during the non-touristy times of the year.
Peaceful. Friendly. Beautiful.
We have built our lives here, and are deeply involved in the community.
Quality of life
I would live where I work and drive less or not need to drive at all Shorter commute, and being part of the community I work in.
Easy lifestyle
Allowing my family to be fully emersed with the community that they go to school in and work in. Currently having to commute from another city to be able to attend work and school doesn't allow for a well-rounded lifestyle. Providing housing in Carmel for the people who teach and support Carmel students/children, should be a big factor in this decision.
I grew up here, but without changes to the local real estate market I cannot foresee ever owning a home here. Being able to support my aging parents in the area and maintain my ties to the community mean a great deal to me.
would love to be closer to my job at Library and walk everywhere.
I lose two hours a day of my life to drive here, from salinas, which is also barely affordable Closer to work
The daily way of life here has been greatly improved for me and my dogs. The ability to walk every where, rarely drive, and have a more active life while feeling safe is a dream.
Would be closer to work.
I would be closer to work and the Carmel community.
Living close to beautiful natural resources of ocean and forest- soul-sustaining. Opportunities for outdoor exercise.
Breathable air
More engagement with the community that sustains my employment, extremely high standard of living.
Surrounded by my current age group and scenic beauty; Monterey Salinas Transit Bus #5 to my place of employment in Carmel by the Sea.
We could absorb these additional homes with no change of quality of life.
Quality would deteriorate if you cram extra housing into our limited space People are happy here. Happiness is good!
Clean air, low crime
FEWER PEOPLE ARE BETTER FOR THE ENVIRONMENT
Small town
It’s safe
I like it as it it. If you start stuffing hundreds of extra units into this town I might actually sell and leave.
We love it here and want to preserve it in its current state before it gets over built Bonding with community and nature
Great Quiet lifestyle
Attachment 1
Appendix H -- Stakeholder Survey 24 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Quiet Lifestyle
I love living in a safe and small village that is easy to walk where ever I want to go. I rarely need to use my car here. Carmel is quiet and has a high quality of life, unlike Texas where I moved here from almost twenty years ago. I am very much against state control and unfunded mandates. Local control is where we need to concentrate our efforts. There is plenty of land a short drive from Carmel by-the-Sea that can easily accommodate the houses the state is mandating. I do not think it is fair that those who bought houses here under certain conditions such as view shed or single family ownership should have to now live where they would not have bought had they known of the development required by the state. beautiful surroundings
I live here - not looking forward to have this housing mandate from the state impacting our quality of life
It’s a nice, sleepy little town and I like the weather. I don’t patronize many local businesses because I don’t buy the sorts of things they sell. I do patronize some local restaurants, but my go-to places for dining out are mostly in PG and Monterey as they are more reasonably priced. It’s hard to compete with all the tourists who have deep pockets.
Can walk most places
I've traveled the world and can live anywhere. I choose here for its unique culture, weather and natural beauty. I would welcome more residents to share it with.
Fulfills a decades long dream to have a home in one of our favorite places Peace and quiet, proximity to beauty of the area
Access to CUSD, access to more open/transparent government, access to outdoor opportunities.
I enjoy the beautiful environment and community engagement.
Enjoy current QofL in Carmel
Vastly improved over city living. Very happy to be here full time. Do not lose the charm that is Carmel.
No change to current benefits.
Too expensive for what you get
Carmel is safe and close to my work.
Safety and being in a small community.
CBTS is a small and safe community with lots of culture and entertainment options.
Lower commute times, using less gas, less crime.
Tranquil, beautiful setting, safety and quiet
The feel of being safe. And being able to walk everywhere Peace of mind from safety
Clean air, can walk to the beach and to town. Local events and outings. Carmelites care about each other. Feel safe, not as safe as before.
Attachment 1
Housing and Community Development (HCD) Initial Draft
6th Cycle Housing Element Update
(2023-2031)
CITY OF CARMEL-BY-THE-SEA
August 1, 2023
Prepared by
EMC Planning Group
Attachment 2
Attachment 2
This document was produced on recycled paper.
HOUSING AND COMMUNITY DEVELOPMENT (HCD) INITIAL DRAFT
6TH CYCLE HOUSING ELEMENT UPDATE
(2023-2031)
CITY OF CARMEL-B Y-THE-SEA
PREPARED FOR
City of Carmel-by-the-Sea
Marnie Waffle, AICP, Principal Planner
City of Carmel-by-the-Sea
P.O. Box CC
Carmel-by-the-Sea, CA 93921
Tel 831.620.2000
PREPARED BY
EMC Planning Group Inc.
601 Abrego Street
Monterey, CA 93940
Tel 831.649.1799
Fax 831.649.8399
Ande Flower, MUP, AICP, Principal Planner
[email protected]
www.emcplanning.com
August 1, 2023
Attachment 2
Attachment 2
EMC Planning Group Inc.
Table of Contents
1.0 INTRODUCTION.................................................................................................... 1-1
1.1 Introduction ...................................................................................................................... 1-1
1.2 California’s Housing Crisis.............................................................................................. 1-2
1.3 Regional Housing Needs Allocation .............................................................................. 1-3
1.4 Affirmatively Furthering Fair Housing.......................................................................... 1-4
1.5 Overview of Planning Efforts ........................................................................................ 1-7
1.6 Public Participation ........................................................................................................ 1-11
2.0 GOALS, POLICIES, AND PROGRAMS ................................................................... 2-1
2.1 Introduction ...................................................................................................................... 2-1
2.2 What’s New....................................................................................................................... 2-1
2.3 Program Overview and Quantified Objectives............................................................ 2-3
2.4 Goals, Policies and Programs ......................................................................................... 2-4 Appendices
Appendix A Housing Needs & Fair Housing Report
Appendix B Housing Constraints
Appendix C Vacant and Available Sites
Appendix D Review of Previous Housing Element
Appendix E List of Contacted Organizations
Appendix F ECONorthwest Feasibility Study
Appendix G Energy Conservation and Reduction of Greenhouse Gas Emissions Appendix H Stakeholder Survey
Figures
Figure 2-1 Sites Inventory ............................................................................................................... 2-5 Figure 2-2 Existing Overnight Visitor Accommodation Map ................................................. 2-11 Figure 2-3 Potential SB-10 Opportunity Sites............................................................................ 2-13 Figure 2-4 The Housing Priority Overlay Zoning District ...................................................... 2-23 Tables
Table 1-1 Regional Housing Needs Allocation .......................................................................... 1-4 Table 2-1 Quantified Objectives Summary................................................................................. 2-3 Attachment 2
Attachment 2
Chapter 1.0 – Introduction 1-1 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023
1.0 Introduction
1.1 Introduction
Carmel-by-the-Sea is a community with a high quality of life, a healthy environment, and renowned architecture. The long-term vitality of Carmel-by-the-Sea and the local economy depend upon the availability of various types of housing to satisfy the community’s local housing needs while continuing to be a vacation destination for all. As Carmel-by-the-Sea looks towards the future, increasing the range and diversity of housing options is integral to the City’s success. This Housing Element serves as a continuation of the City’s commitment to ensuring new opportunities for residential development, as well as preserving and enhancing existing neighborhoods, and continuing to protect the natural environment.
Located on the Monterey Peninsula and incorporated in 1916, Carmel-by-the-Sea is a bijou coastal community boasting sweeping views of the Pacific Ocean, acclaimed architecture, and a strong residential character. The City has nearly 50 historic properties within the centralized commercial district, primarily dating to the turn of the 20th century and the 1920-1930s period. Residences throughout the one-square-mile village span a range of construction eras but are collectively appreciated for their architectural aesthetic. As a result of its beauty, the City is a popular tourism and second-home destination. Approximately 51 percent of housing units are for seasonal, recreational, or occasional use, creating high barriers of entry to the housing market for local renters.
This 2023-2031 Housing Element represents the City of Carmel-by-the-Sea’s intent to plan for the housing needs of the community while meeting the State's housing goals as set forth in Article 10.6 of the California Government Code (Section 65580-65589.11). The California State Legislature has identified the attainment of a decent home and a suitable living environment for every Californian as the State's major housing goal. The Carmel-by-the-Sea 6th Cycle Housing Element represents a sincere and creative effort to meet State housing mandates within the constraints of an established and nearly built-out community with limited land availability, coastal hazards, and extraordinarily high costs of land and housing.
Pursuant to state law, the Housing Element must be updated periodically according to statutory deadlines. This 6th Cycle Housing Element covers the planning period 2023 through 2031 and replaces the City's 5th Cycle Housing Element that covered the period 2015 through 2023.
Attachment 2
Chapter 1.0 – Introduction 1-2 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Per State Housing Element law, the document must be periodically updated to:
Outline the community’s housing production objectives consistent with State and regional growth projections;
Describe goals, policies and implementation strategies to achieve local housing objectives; Examine the local need for housing with a focus on special needs populations; Identify adequate sites for the production of housing serving various income levels; Analyze potential constraints to new housing production; Evaluate the Housing Element for consistency with other General Plan elements; and Evaluate Affirmatively Furthering Fair Housing.
1.2 California’s Housing Crisis
The 6th Cycle Housing Element update comes at a critical time because California is experiencing a housing crisis, and as is the case for all jurisdictions in California, Carmel-by-the-Sea is committed to playing its part in meeting the growing demand for housing. In the period 2020 through 2045, the AMBAG region is projected to add 36,544 jobs,1 which represents a nine (9) percent increase. These changes will increase demand for housing across all income levels, and if the region can’t identify ways to significantly increase housing production, it risks worsening the burden for existing lowerincome households, many of whom do not have the luxury or skill set to move to a new job center but that are nonetheless faced with unsustainable increases in housing cost.
If the region becomes less competitive in attracting workers and increasingly unaffordable to lower-income workers and seniors, then social and economic segregation will worsen, only exacerbating historic patterns of housing discrimination, racial bias, and segregation. This potentiality has become so acute in recent years that the California Legislature addressed the issue with new legislation in 2018. Assembly Bill (AB) 686 requires all state and local agencies to explicitly address, combat, and relieve disparities resulting from past patterns of housing segregation to foster more inclusive communities.
This is commonly referred to as Affirmative Furthering Fair Housing, or AFFH (more on this below).
1 Source: AMBAG, November 18, 2022. “Final 2022 Regional Growth Forecast” “There's a movement in
California now called 'Yes, In
My Backyard,' and I'd love to
see us join that.”
May 24, 2023 Housing Ad Hoc
Committee Community Meeting
Attendee
Attachment 2
Chapter 1.0 – Introduction 1-3 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Carmel-by-the-Sea has had moderate success in meeting its housing needs. In the last Housing Element cycle (2015 to 2022 – 2023 pending2), for example, 18 housing units were constructed in the City, which represented 58 percent of its Regional Housing Needs Allocation (RHNA) of 31 new housing units. Of the units built, none were affordable to lower- and moderate-income households,3 and 100 percent were affordable to above moderate-income households.
1.3 Regional Housing Needs Allocation
For the eight-year time frame covered by this Housing Element Update (2023-2031), the Department of Housing and Community Development (HCD) has identified the region’s housing need as 33,274 units. The total number of housing units assigned by HCD is separated into four income categories that cover housing types for all income levels, from very low-income households to market rate housing.4 This calculation is based on population projections produced by the California Department of Finance as well as adjustments that incorporate the region’s existing housing need. Per Government Code Section 65583(a), the Housing Element must also provide quantification and analysis of projected housing needs for extremely low-income households. The number of units for the extremely low-income level is not assigned by HCD, but is left for quantification by the local jurisdiction. This calculation is based on the HCD approved methodology5, assuming that 50 percent of very low-income households qualify as extremely lowincome households.
Almost all jurisdictions in the Monterey Bay Area received a larger RHNA this cycle compared to the last cycle, primarily due to changes in state law that led to a considerably higher Regional Housing Needs Determination (RHND) compared to previous cycles.
On November 8, 2022, AMBAG’s adopted RHNA Methodology was approved by HCD. For Carmel-by-the-Sea, the RHNA to be planned for this cycle is 349 units, a substantial increase from the last cycle. Table 1-1 Regional Housing Needs Allocation shows the RHNA for Carmel-by-theSea for the period 2023 through 2031. 2 Source: November 8, 2022 HCD letter to AMBAG. Local governments may credit new units approved, permitted, and/or built beginning from the start date of the RHNA projection period, June 30, 2023, towards their RHNA 3 Source: City of Carmel-by-the-Sea HCD Annual Reports and City staff. 4 HCD divides the RHND into the following four income categories:
Very Low income: 0-50% of Area Median Income
Low income: 50-80% of Area Median Income
Moderate income: 80-120% of Area Median Income
Above Moderate income: 120% or more of Area Median Income 5 https://www.hcd.ca.gov/planning-and-community-development/housing-elements/building-blocks/extremely-lowincome-housing-needs Attachment 2
Chapter 1.0 – Introduction 1-4 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Table 1-1 Regional Housing Needs Allocation
Income Group Percentage of Area Median Income (AMI) Share Extremely Low Income6 <30 57
Very Low Income <50 56
Low Income 51-80 74
Moderate Income 81-120 44
Above Moderate Income 121 + 118
Total 349
SOURCE: AMBAG
1.4 Affirmatively Furthering Fair Housing
In 2018, Assembly Bill (AB) 686, established an independent state mandate to affirmatively further fair housing (AFFH). Assembly Bill (AB) 686 extends requirements for federal grantees and contractors to “affirmatively further fair housing,” including requirements in the Federal Fair Housing Act, to public agencies in California. Affirmatively furthering fair housing is defined specifically as taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity by replacing segregated living patterns with truly integrated and balanced living patterns; transforming racially and ethnically concentrated areas of poverty into areas of opportunity; and fostering and maintaining compliance with civil rights and fair housing laws.
Assembly Bill (AB) 686 requires public agencies to:
Administer their programs and activities relating to housing and community development in a manner to affirmatively further fair housing;
Not take any action that is materially inconsistent with the obligation to affirmatively further fair housing;
Ensure that the program and actions to achieve the goals and objectives of the Housing Element affirmatively further fair housing; and
Include an assessment of fair housing in the Housing Element.
The requirement to Affirmatively Further Fair Housing (AFFH) is derived from The Fair Housing Act of 1968, which prohibited discrimination concerning the sale, rental, and financing of housing based on race, color, religion, national origin, or sex—and was later amended to include familial status and disability. The 2015 U.S. Department of Housing and Urban Development (HUD) Rule 6 Extremely low-income RHNA is found as a subset within the very low-income category for all other tables in this document
Attachment 2
Chapter 1.0 – Introduction 1-5 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 to Affirmatively Further Fair Housing and California Assembly Bill (AB)686 (2018) mandate that each jurisdiction takes meaningful action to address significant disparities in housing needs and access to opportunity. AB 686 requires that jurisdictions incorporate AFFH into their Housing Elements, which includes inclusive community participation, an assessment of fair housing, a site inventory reflective of AFFH, and the development of goals, policies, and programs to meaningfully address local fair housing issues.
An AFFH analysis was prepared and is included as an Appendix to this Housing Element (see Appendix A).
Defining Segregation
Segregation is the separation of different demographic groups into different geographic locations or communities, meaning that groups are unevenly distributed across geographic space. This report examines two spatial forms of segregation: neighborhood-level segregation within a local jurisdiction and city-level segregation between jurisdictions in the Monterey Bay Area.
Neighborhood-level segregation (within a jurisdiction, or intra-city): Segregation of race and income groups can occur from neighborhood to neighborhood within a city. For example, if a local jurisdiction has a population that is 20 percent Latinx, but some neighborhoods are 80 percent Latinx while others have nearly no Latinx residents, that jurisdiction would have segregated neighborhoods.
City-level segregation (between jurisdictions in a region, or inter-city): Race and income divides also occur between jurisdictions in a region. A region could be very diverse with equal numbers of White, Asian, Black, and Latinx residents, but the region could also be highly segregated with each city comprised solely of one racial group.
There are many factors that have contributed to the generation and maintenance of segregation.
Historically, racial segregation stemmed from explicit discrimination against people of color, such as restrictive covenants, redlining, and discrimination in mortgage lending. This history includes many overtly discriminatory policies made by federal, state, and local governments (Rothstein 2017).
Segregation patterns are also affected by policies that appear race-neutral, such as land use decisions and the regulation of housing development.
Segregation has resulted in vastly unequal access to public goods such as quality schools, neighborhood services and amenities, parks and playgrounds, clean air and water, and public safety (Trounstine 2015). This generational lack of access for many communities, particularly people of color and lower income residents, has often resulted in poor life outcomes, including lower educational attainment, higher morbidity rates, and higher mortality rates (Chetty and Hendren 2018, Ananat 2011, Burch 2014, Cutler and Glaeser 1997, Sampson 2012, Sharkey 2013).
Attachment 2
Chapter 1.0 – Introduction 1-6 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Segregation Patterns in the Monterey Bay Area
Across the Monterey Bay Area, Hispanic and Black residents are significantly more segregated from other racial and income groups. The highest levels of racial segregation occur between the Hispanic and Black populations. The analysis completed for this report indicates that the amount of racial segregation both within Monterey Bay Area cities and across jurisdictions in the region has slightly increased since the year 2010.
Segregation and Land Use
It is difficult to address segregation patterns without an analysis of both historical and existing land use policies that impact segregation patterns. Land use regulations influence what kind of housing is built in a city or neighborhood (Lens and Monkkonen 2016, Pendall 2000). These land use regulations in turn impact demographics: they can be used to affect the number of houses in a community, the number of people who live in the community, the wealth of the people who live in the community, and where within the community they reside (Trounstine 2018). Given disparities in wealth by race and ethnicity, the ability to afford housing in different neighborhoods, as influenced by land use regulations, is highly differentiated across racial and ethnic groups (Bayer, McMillan, and Reuben 2004).7
Segregation in the Carmel-by-the-Sea
The following are highlights of demographics as they apply to Carmel-by-the-Sea. For further information regarding the history of racial segregation, please refer to Appendix A. As of 2019, White residents are the most segregated compared to other racial groups as measured by the isolation index. White residents live in neighborhoods where they are less likely to come into contact with other racial groups;
As of 2019, Non-Hispanic White individuals comprise 87 percent of Carmel-by-the-Sea’s population followed by Hispanic or Latino (8 percent) and Asian populations (5 percent); The City has no populations identifying as American Indian, Alaska Native, Native Hawaiian or Other Pacific Islander; and
Black or African American non-Hispanic individuals represent less than 1 percent of the City’s population.
7For the source data, see U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B19013B, Table B19013D, B19013H, and B19013I.
Attachment 2
Chapter 1.0 – Introduction 1-7 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Carmel-by-the-Sea’s General Plan and Municipal Code
historically emphasized single-family residential
development patterns and consequently, the City offers a limited variety of housing types with 87 percent single family detached units. Historically, this type of
development contributed to segregation patterns,
including in Carmel-by-the-Sea, due to, among other
factors, the higher purchase costs that accompany singlefamily homes. Financing for single-family properties favored educated higher income earners and as a result
purchasing property in the City remained out of reach for many lower income households and led to the
demographics seen in the City today. While Carmel-bythe-Sea’s population demographics are not as diverse as other jurisdictions within Monterey County and restrictive covenants were not enacted specifically in the City,
enacting policies and programs that promote AFFH and highlight the community’s assets could attract individuals to the area, encourage those that work in the City to live there as well, and assist lower-income households that are currently living in the community. Currently, 28 percent of households within Carmel-by-the-Sea are considered lower-income.
Regional Segregation
The following are highlights of regional segregation metrics as they apply to Carmel-by-the-Sea:
The City has a higher share of White residents than other jurisdictions in the Monterey Bay Area as a whole, a lower share of Latinx residents, a lower share of Black residents, and a lower share of Asian/Pacific Islander residents; and
Regarding income groups, the City has a lower share of very low-income residents than other jurisdictions in the Monterey Bay Area as a whole, a lower share of low-income residents, a lower share of moderate-income residents, and a higher share of above moderate-income residents.
1.5 Overview of Planning Efforts
This section provides an overview of planning and legislative efforts that provide the context for development of the 6th Cycle Housing Element.
"I urge you to enthusiastically
embrace this opportunity to
do exactly what you've come
up with because Carmel really
needs it, and it didn't happen
that Carmel turned out to be
a wealthy white exclusive
community by accident. It was
purposeful. “
May 24, 2023 Housing Ad Hoc
Committee Community
Meeting Attendee
Attachment 2
Chapter 1.0 – Introduction 1-8 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Effectiveness of Previous Housing Element
The 2015 Housing Element identified a Regional Housing Needs Allocation of 31 housing units in Carmel-by-the-Sea between 2015 and 2023. The RHNA was divided into the following income categories:
7 units affordable to extremely low- and very low-income households; 5 units affordable to low-income households;
6 units affordable to moderate-income households; and 13 units affordable to above moderate-income households.
During the 2015–2023 planning period, 18 new above moderate-income units were added to the City’s housing stock, and no units were added in the moderate, low or very low-income categories8 .
This indicates that residential growth for extremely and very low-income households was slower than anticipated, which may be in part due to a lack of water resources, the COVID pandemic, the cost of land and construction, and the overall lack of interest to develop affordable housing in the community. As a result, housing costs continued to increase substantially due to low supply, and affordability became more elusive.
The goals, objectives, policies, and actions in the 2015 Housing Element complied with State Housing Law and provided proper guidance for housing development in the City. In the 2023 Housing Element update, objectives for each of the goals will be modified as appropriate to more specifically respond to the housing environment in Carmel-by-the-Sea from 2023-2031. Policies will also be modified as needed to respond to current Housing Element Law and existing and anticipated residential development conditions. See Appendix E for a complete review and analysis of Carmelby-the-Sea’s 5th Cycle Housing Element (2015-2023).
New State Laws Affecting Housing
While the City has taken steps throughout the 5th Cycle to increase housing production locally, the State passed numerous laws to address California’s housing crisis during the same period. As the State passes new legislation in the remainder of the 5th Cycle and during the 6th Cycle, the City will continue to amend the Municipal Code; to monitor and evaluate policies and programs designed to meet State requirements; and to proactively implement new policies and programs to help increase housing production citywide.
In 2019, several bills were signed into law that include requirements for local density bonus programs, the Housing Element, surplus lands, accessory dwelling unit (ADU) streamlining, and removing local barriers to housing production. The City implemented changes required by state law, through amendments to the Municipal Code. The following is a summary of recent legislation and 8 RHNA Progress Report - 5th Cycle RHNA Progress Report - California Open Data Attachment 2
Chapter 1.0 – Introduction 1-9 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 proposed City activities that will further the City’s efforts to increase housing production during the 6th Cycle. Please see the section above for a discussion of Assembly Bill (AB) 686 (Affirmatively Furthering Fair Housing).
Climate Change and RHNA Methodology
Per statute, Assembly Bill (AB) 1445 (2023) amends California Government Code Section 65584.04 and would require Councils of Governments to consider including the impacts of climate change as a factor when developing the methodology for allocating regional housing need. Regions would specifically need to consider emergency evacuation route capacity, wildfire risk, and sea level rise, but could also consider any other climate change-related factor. Although this does not apply to the current RHNA, it could affect the 7th Cycle allocation.
Incentives for Accessory Dwelling Units
In 2020, AB 686, AB 587, AB 671, AB 881, and SB 13
further incentivize the development of accessory dwelling units (ADUs) through streamlined permits, reduced
setback requirements, increased allowable square footage, reduced parking requirements, and reduced fees. The City last amended the Municipal Code in 2017 to address ADUs and is currently following state law while preparing
additional amendments to the Municipal Code.
In 2023, the City intends to further amend the standards for ADUs and JADUs, consistent with state Law, to encourage conversion of guest houses to ADUs and promote construction of new units. Further the City will develop pre-approved, standardized ADU plans to make construction more affordable and will continue to include the HD ADU handbook on the City’s website.
Low-Barrier Navigation Centers
AB 101 (2019) requires jurisdictions to allow “low-barrier navigation centers” ByRight in areas zoned for mixed uses and in nonresidential zones permitting multifamily uses, if the center meets specified requirements. A low-barrier navigation center is a service-enriched shelter focused on moving unhoused people into permanent housing. The center provides temporary living facilities while case-managers connect individuals to public benefits, health services, and housing. The City’s Municipal Code will be amended to comply with state law.
Surplus Public Land
AB 1255 and AB 1486 (2020) seek to identify and prioritize state and local surplus lands available for housing development affordable to lower-income households. City-owned land was considered through preparation of the adequate sites inventory of the 6th Cycle Housing Element. These sites may be developed over time or possibly leased for development.
ADUs and JADUs make
economic sense for many of us
and could account for scores of
new units in the next 8 years.
November 17, 2022 Housing Ad Hoc
Committee Community Meeting
Attendee
Attachment 2
Chapter 1.0 – Introduction 1-10 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 In 2019, Governor Gavin Newsom signed an executive order to identify State owned sites to help address the California housing crisis.
Accelerated Housing Production
Assembly Bill (AB) 2162 (2018) and Senate Bill (SB) 2 (2019) address various methods and funding sources that jurisdictions may use to accelerate housing production.
Priority Processing
SB 330 (2019) enacts changes to local development policies, permitting, and processes that will be in effect through January 1, 2025. SB 330 places new criteria on the application requirements and processing times for housing developments; prevents localities from decreasing the housing capacity of any site, such as through downzoning or increasing open space requirements, if such a decrease would preclude the jurisdiction from meeting its RHNA housing targets; prevents localities from establishing non-objective standards; and requires that any proposed demolition of housing units be accompanied by a project that would replace or exceed the total number of units demolished.
Additionally, any demolished units that were occupied by lower-income households must be replaced with new units affordable to households with those same income levels.
Housing and Public Safety
In response to SB 379 (2015) and other recent state legislation, local jurisdictions must update their safety element to comprehensively address climate adaptation and resilience (SB 379 and SB 1035, 2018) and identify evacuation routes (SB 99 and AB 747, both 2019). These updates are triggered by the 6th Cycle Housing Element update. This Housing Element will contain an evaluation of the existing safety element and programming actions to update the safety element to satisfy the new state requirements. Also, as sites are identified and analyzed for inclusion in the City’s housing site inventory, special attention will be paid to the risk of wildfire and the need for evacuation routes. In this way, the City will coordinate updates between the elements, so that future development is directed into areas that avoid or reduce unreasonable risks while also providing needed housing and maintaining other community planning goals.
Disadvantaged Communities
In 2011, the Governor signed SB 244 which requires local governments to make determinations regarding “disadvantaged unincorporated communities,” defined as a community with an annual median income that is less than 80 percent of the statewide annual median household income. The City has determined that there are no unincorporated islands or fringe or legacy communities that qualify as disadvantaged communities inside or near its boundaries.
Consistency with General Plan
The City of Carmel-by-the-Sea adopted a comprehensive update to its GeneralPplan in 2003 in conjunction with the adoption of their Local Coastal Plan. Additional, element-specific, updates Attachment 2
Chapter 1.0 – Introduction 1-11 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 were completed in 2009 and 2015. The General Plan is a long-range planning document that serves as the “blueprint” for development for local jurisdictions in California. All development-related decisions in the City must be consistent with the General Plan, and if a development proposal is not consistent with the plan, then it must be revised or the plan itself must be amended.
State law requires a community’s General Plan to be internally consistent. This means that the Housing Element, although subject to special requirements and a different schedule of updates, must function as an integral part of the overall General Plan, with consistency between it and the other General Plan elements. From an overall standpoint, the development projected under this Housing Element is consistent with the other elements in the City’s current General Plan.
Many housing needs can only be addressed on a comprehensive basis in concert with other community concerns such as infill development or mixed-use incentives, for example, which must consider land use, traffic, parking, design, and other concerns as well.
The City’s Housing Element is being updated at this time in conformance with the 2023-2031 6th Cycle update for jurisdictions in the Association of Monterey Bay Area Governments (AMBAG) region. The Housing Element builds upon the other General Plan elements and contains policies to ensure that it is consistent with other elements of the General Plan. As portions of the General Plan are amended in the future, the plan (including the Housing Element) will be reviewed to ensure that internal consistency is maintained.
1.6 Public Participation
The primary purpose of this chapter is to describe the
effort made by the City of Carmel-by-the Sea to engage
all economic segments of the community (including
residents and/or their representatives) in the
development and update of the Housing Element. This
public participation effort also includes formal
consultation, pursuant to Government Code §65352.3,
with representatives from the Tribal Nations that are
present and active in Monterey County. It is also
responsive to AB 686 (2018, Affirmatively Furthering
Fair Housing), which requires local jurisdictions, as they update their Housing Elements, to conduct public
outreach to equitably include all stakeholders in the
Housing Element public participation program.
The mission of the Housing Ad Hoc
Committee is to provide guidance as
the City updates the Housing Element
of its General Plan. The Committee will
participate in public outreach and
education; consider opportunities and
incentives for the development of
affordable housing; and explore
creative, tailored solutions to meet
the City’s workforce and range of
other housing needs while preserving
the character of Carmel by-the-Sea.
Karen Ferlito and Bobby Richards,
Housing Ad Hoc Committee
Councilmembers
Attachment 2
Chapter 1.0 – Introduction 1-12 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 The 6th Cycle RHNA numbers are a monumental change for all California communities, and the success of the update process hinges in part on a community outreach and engagement program that was robust, inclusive, and meaningful. The City’s community engagement program has included an initial presentation to the City Council, a series of Housing Ad Hoc Committee community meetings, stakeholder outreach, direct contact with interested residents and property owners, and online/virtual participation. Key components of the interactive engagement plan include: Housing Element website, http://www.HOMECarmelbytheSea.com where all updates are provided as well as community engagement opportunities.
H.O.M.E. Carmel-by-the-Sea website
Housing Opportunities Made Easier (HOME) at HOMECarmel (homecarmelbythesea.com) is a dedicated website that provides a portal to all of the housing -element-related public engagement activities that are available to members of the public. This includes information on housing element basics, community ideas board, property owner interest forms, site surveys, site selection details, and materials from community workshops.
Q&A. Received questions in a managed space that accommodated messages throughout the iterative brainstorming process.
Ideas Board. Promoted brainstorming among community members to suggest creative ways to achieve our RHNA goals.
Interactive Site Inventory Mapping. Allowed community members an opportunity to examine proposed housing sites and suggest alternative solutions via an interactive online mapping tool. The site inventory mapping tool was advertised on the H.O.M.E. Carmel-by-theSea website in addition to other City communication outlets and made available through engage.emcplanning.com/homecarmelpotentialsitesinventory. Surveys. Encouraged community-members to voice their opinions in a convenient way that also helped City staff understand what areas of the City need more encouragement to participate.
Aggregate data also helped the City understand generally who is participating with the outreach tools. All surveys were advertised on the H.O.M.E. Carmel-by-the-Sea website in addition to other City communication outlets. City staff also walked the City and handed out flyers to hospitality workers in an effort to increase the demographics of community members taking the Stakeholder Survey. The Stakeholder Survey was available in both English and Spanish. • Stakeholder Survey. Released for public engagement on May 24, 2023 to solicit input from Carmel-by-the-Sea residents, property owners, business owners, employees, community activists, and visitors. The stakeholder survey closed July 6. The Housing Element will contain updated policies and programs as guided by the public’s perspective.
Attachment 2
Chapter 1.0 – Introduction 1-13 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Property Owner Interest Form. Released for public engagement on April 6, 2023 to develop a list of property owners interested in building an accessory dwelling unit (ADU) or junior accessory dwelling unit (JADU). A list of interested property owners will be added to Appendix C – Sites Inventory when the survey is closed July 6.
Community Meetings
The City hosted a series of community meetings to inform and educate the public on the 2023-2031 6th Cycle Housing Element Update planning process and collect community feedback. These meetings are ongoing and continue to guide the policies and programs to ensure Carmel-by-theSea’s character and values are upheld. November 17, 2022 Housing Ad Hoc Committee
Community Meeting. Hosted to introduce the 2023-2031
6th Cycle Housing Element Update to community residents. February 7, 2023 City Council Meeting. Presentation on preliminary housing feasibility report and Housing Element update status.
February 28, 2023 Housing Ad Hoc Committee
Community Meeting. Hosted to discuss development
constraints and potential incentives.
April 6, 2023 Housing Ad Hoc Committee Community
Meeting. Hosted to discuss current 5th Cycle Housing
Element policies and programs, HOMECarmel unveiling
and walk through, and introduction to AFFH.
May 24, 2023 Housing Ad Hoc Committee Community
Meeting. Hosted to discuss housing needs, fair housing, sites inventory, and policies and programs to address the needs.
June 15, 2023 Joint City Council/Planning Commission/Housing Ad Hoc Community Meeting. Hosted to discuss the Public Draft Housing Element, the 30-day Public Comment Period, and next steps in the planning process.
July 11, 2023 City Council Meeting. Update on the Housing Element Public Review Draft and discuss revision to the document after the 30-day comment period and review the City’s response to public comments on the Public Draft.
August 1, 2023 City Council Meeting. Update on the Housing Element planning process and review of full Initial Draft Housing Element prior to submittal to HCD for 90-day review.
If you rewind the clock 30
years, we did have 4,000 or
more full-time residents in
this town so it’s not like that’s
impossible. But the world is
different now, the number of
cars has increased, etc., so
there will be interesting
balances and challenges as we
add people to our community,
which is going to be a great
thing.
November 17, 2022
Housing Ad Hoc Committee
Community Meeting
Attendee
Attachment 2
Chapter 1.0 – Introduction 1-14 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Public Participation to Affirmatively Furthering Fair Housing The Carmel-by-the-Sea public participation program was also responsive to AFFH, which requires local jurisdictions to conduct public outreach to equitably include all stakeholders in the Housing Element public participation program (see the discussion above for more complete information on AFFH).
The organizations listed in Appendix E were contacted initially with an invitation to further connect.
There were more opportunities for deeper connection with some of the Community Based Organizations (CBOs) included with the list.
The City emphasized the power of public participation during the public draft 30-day review period.
Community members were informed that their comments would be included in the public record that will be read by decision-makers and reviewed by HCD, with transparent obligation to be responsive to comments as part of the preliminary draft submittal to HCD.
Tribal Consultation
This public participation effort also includes formal consultation, pursuant to Government Code §65352.3, with representatives from the Esselen Nation that is present and active in Monterey County. Consultation is in process.
Public Review of Draft and Final Housing Element
Public Comment Review Period
As required by HCD, the Draft Housing Element was available for 30-days of public review from June 5, 2023 to July 6, 2023. The Draft Housing Element was posted on the City of Carmel website and the dedicated Housing Element website (homecarmelbythesea.com) and a number of public comments were received. Additionally, a joint City Council and Planning Commission Committee meeting was held on June 15, 2023 where verbal public comments were accepted on the Draft Housing Element.
Public comments received during the 30-day public review period can be found in the Public Comment Report, along with responses. The HCD Initial Draft has been updated as needed to reflect the comments received by the public.
Stakeholder Survey
The City of Carmel published a Stakeholder Survey to gather input from community members. The goal of the survey was to inform the City of Carmel-by-the-Sea what housing needs exist and to solicit community members input on how to achieve the RHNA. The survey was made available in English and Spanish and was posted on the dedicated Housing Element website (homecarmelbythesea.com). The Stakeholder survey was available from May 24, 2023 to July 6, 2023. 156 responses were received in English and 1 response was received in Spanish. See Appendix H for an in-depth discussion of the Stakeholder Survey results.
Attachment 2
Chapter 1.0 – Introduction 1-15 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Overall, survey respondents indicated a need for more diverse housing types within the City (apartments, condominiums, ADUs and senior housing). Survey respondents encourage the use of second story buildings for housing within the Commercial District, especially for affordable units, and indicate a need for expanded City services to distribute information about affordable units.
When asked if property owners would consider adding an ADU to their property, many responded that lots are too small, however, a number of property owners did interest if the permitting was streamlined, fees were lowered, or financial assistance was provided.
Attachment 2
Chapter 1.0 – Introduction 1-16 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 This side intentionally left blank.
Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-1 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023
2.0 Goals, Policies, and Programs
2.1 Introduction
The City is responsible for enabling the production of housing by reducing regulatory barriers, providing incentives, and supporting programs that create or preserve housing, especially for vulnerable populations. To enable the construction of quality housing, the City has identified the following goals:
Goal HE-1 Facilitate Housing Construction
Goal HE-2 Protect Affordable Housing and Improve the Housing Stock Goal HE-3 Provide Opportunities for New Affordable and Other Special Needs Housing Goal HE-4 Exemplify Sustainable Development and Energy Conservation Goal HE-5 Publicize Housing Needs and Resources
The City’s demographic and housing needs assessment, including contributing factors to housing disparities, formed an integral part of program development. Highlights include: the predominant age group in 2019 was between 65 to 74 years of age; the population was comprised of over 85% White individuals; the unemployment rate was 0.1 percent; above-moderate households made up the majority of households at 62 percent; and 57 percent of total households were owner occupied and 43 percent renter occupied. Of note, 23 percent of household are cost burdened and 23 percent are severely cost burdened. Detailed information is provided in Appendix A.
Additionally, the majority of the sites identified in the Site Inventory were not identified in the 5th Cycle Housing Element. The Policies and Programs below are intended to reduce the regulatory barriers to redevelop of these sites and to demonstrate the City is taking measures to ensure construction of more units, in the 6th cycle.
2.2 What’s New
This section provides an overview of significant new policy and program directions being taken by the City of Carmel-by-the-Sea to address housing issues in the community and the larger Monterey Bay Area.
Attachment 2
Chapter 2.0 – Goals, Policies, and Implementing Programs 2-2 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Affirmatively Furthering Fair Housing
The new policy direction that the City will undergo during the 6th Cycle Housing Element Update involves addressing historic economic and racial segregation patterns. In 2018, the California Legislature established an independent state mandate to affirmatively further fair housing (AFFH).
Affirmatively furthering fair housing is defined specifically as taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity by replacing segregated living patterns with truly integrated and balanced living patterns; transforming racially and ethnically concentrated areas of poverty into areas of opportunity; and fostering and maintaining compliance with civil rights and fair housing laws.
Contributing Factors
The following contributing factors that impact fair housing and affirmatively furthering fair housing (AFFH) within the City were identified and prioritized as follows:
High Priority
Lack of affordable housing;
Lack of adequate housing stock that meets the needs of residents; Lack of adequate affordable housing options;
Jobs-worker imbalance;
Lack of accessible units for individuals with disabilities; Lack of Transitional and Supportive Housing/Emergency Shelters; Since 2015, there have been eighteen (18) housing permits in the City of which all are for above moderate-income households;
There is a lack of developable land, and the City is subject to additional coastal zone regulations;
Lack of racial and ethnic diversity within the City; and Cost of land, materials, and labor which limit profitability of affordable housing.
Medium Priority
Lack of access to information about fair housing rights; and Limited knowledge of fair housing by residents.
More detailed AFFH information is located in Appendix A. The City of Carmel-by-the-Sea is adopting new policies and programs through the update of this 6th Cycle Housing Element, to align with the state’s new AFFH mandate. Policies and programs that support this alignment are identified with the letters “AFFH.”
Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-3 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023
2.3 Program Overview and Quantified Objectives
Quantified Objectives estimate the number of units likely to be constructed, rehabilitated, or conserved/preserved by income level during the planning period. The Quantified Objectives do not represent a ceiling on development, but rather set a target goal for the jurisdiction to achieve, based on needs, resources, and constraints. These objectives will focus communication between the City and HCD with future Annual Progress Reports (APRs). HCD does not require that all objectives must be met, rather, it is a goal that enables objective assessments about program effectiveness so the City can make informed determinations to continue, modify, or delete programs with the next Housing Element update Cycle. Table 2-1, Quantified Objectives, provides an estimate of the number of units likely to be constructed, rehabilitated or conserved/preserved in Carmel-by-the-Sea in the 6th Cycle.
Table 2-1 Quantified Objectives Summary
Income Category New Construction Rehabilitation* Conservation/ Preservation**
Extremely Low 57 0 0
Very Low 56 5 0
Low 74 5 50
Moderate 44 6 0
Above Moderate 118 400 0
Total 349 800 0
SOURCE: City of Carmel-by-the-Sea 2023
NOTES: *The City has approximately 3,800 residential units, 60 (or about one percent) of which are affordable units. Each year the City processes approximately 100 building permits for remodels, additions, and other construction, which rehabilitates the existing housing stock. For the lower-income categories rehabilitation goals, the City assumes that one percent of the total permits processed will be for affordable units. Under these assumptions, the City would rehabilitate two units of affordable housing a year or approximately 16 units throughout the 2023-2031 planning cycle. This represents approximately 30 percent of the City’s existing affordable housing inventory. **The City has no units at risk of converting to market rate during this planning cycle.
Attachment 2
Chapter 2.0 – Goals, Policies, and Implementing Programs 2-4 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023
2.4 Goals, Policies and Programs
Community input has been and continues to be an
integral part of the development of policies and programs for the 6th Cycle Housing Element. The purpose of this
section is to set forth goals, policies, and programs to further the development of housing for all income levels in the community. The Implementation Programs listed
below provide a workplan for programs to ensure timely
implementation and tracking.
GOAL H1 FACILITATE HOUSING
CONSTRUCTION
Policy 1.1: Ensure adequate sites are available to
meet the City’s projected housing
growth needs.
Program 1.1.A: Adequate Sites
The City has a RHNA or growth need of 113 units affordable to Extremely Low- and Very LowIncome households. The City’s General Plan and Municipal Code provide for housing types at appropriate densities to accommodate the RHNA. The City will encourage and facilitate the development of new units consistent with the RHNA by continuing to work with housing providers such as the Carmel Foundation and will actively find new organizations to partner with. The City also offers incentives and concessions outlined in Programs listed below including Program 3.1.G A Housing Priority Overlay District. See Figure 2-1 for Sites Inventory map, and further analysis in Appendix C.
Quantified Objective: 57 Extremely Low, 56 Very Low, 74 Low, 44 Moderate and 118 Above Moderate-Income housing units
Timeframe: Ensure adequate sites are maintained to meet RHNA through June 2031
Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Program 3-3.1.a: Adequate Sites)
"... The land as it exists
now, the way it's zoned,
could support the 349
units, plus the buffer. So,
the question then is how do
we get people excited
about developing some of
those units?
That's where these
programs and processes
come into play and that's
why we need to amend the
Municipal Code, to codify
those things..."
May 24, 2023 Housing Ad Hoc
Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-5 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Figure 2-1 Sites Inventory
[Map to be inserted prior to HCD submittal]
Attachment 2
Chapter 2.0 – Goals, Policies, and Implementing Programs 2-6 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program 1.1.B: Underutilized Sites - AFFH
Publicly owned sites represent an opportunity to partner with a non-profit or developer to build affordable units. The City may enter into an agreement with a development partner that makes construction of affordable units more financially feasible because the cost of the land is under City ownership. The City will actively investigate the feasibility of developing underutilized publicly owned sites for housing development and possible partnerships with housing providers to develop housing for lower-income households and/or senior housing on appropriate underutilized sites.
Quantified Objective: 50 affordable units
Timeframe: Complete investigations and potential partnerships by June 2031 Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly 3-3.1.b: Surplus Sites)
Program 1.1.C: Development on Small Sites
Small sites can be difficult to develop particularly when development standards don’t adequately take into account small lot dimensions. The City will continue to offer incentives and concessions that facilitate development on small sites in the commercial and multi-family districts, including density bonuses that allow for development up to 88 du/ac. Presently, Carmel Municipal Code Section
17.14.060 (Central Commercial (CC) District Regulations Applicable) waives off-street parking entirely for apartments in the CC district. In the Service Commercial (SC) District, the required parking for an affordable housing unit is ½ space per unit and for senior housing it is ⅓ space per unit. Senior housing also has a guest parking requirement of 1 space per 4 housing units. The City will further evaluate the residential parking requirements in the Service Commercial (SC) and Residential & Limited Commercial (RC) zoning districts to help facilitate market rate housing.
Alternative parking programs such as bike and/or car share, or free or discounted bus passes, will be evaluated to offset reduced parking.
Quantified Objective: 35 units
Timeframe: Complete evaluations by December 2024
Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly 3-3.1.c: Development on Small Sites)
Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-7 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Policy 1.2: Continue to monitor and work cooperatively with regional agencies to augment infrastructure in a manner that provides adequate capacity for existing and new housing needs while preserving and improving the unique visual character of the City.
Program 1.2.A: Water Distribution Prioritization for Affordable Housing – AFFH Perhaps the greatest constraint to housing production in Carmel-by-the-Sea is the lack of water.
Potable water is a fundamental infrastructure need for housing and is a limited resource in Carmelby-the-Sea. Water is regulated by the State Water Resources Control Board (SWRCB) and the Monterey Peninsula Water Management District (MPWMD). Few developed sites have available water credits sufficient to accommodate construction of additional residential units, and the City’s own water allocation is quite limited. Further, due to the current State imposed cease-and-desist order in Carmel, California American Water (Cal-Am) is not permitted to set new water meters at this time. The City will continue to work cooperatively with MPWMD to address water availability and infrastructure limitations that affect the ability to serve new housing development.
From its own modest water allocation, the City will grant water allocation priority to those projects that assist the City in meeting its share of the regional housing need for lower- and moderate-income households. A City policy to clearly reflect water allocation priority and incentives for Extremely Low, Very Low, Low and Moderate-Income households will be adopted.
Quantified Objective: 187 units
Timeframe: Adopt policy by June 2025
Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Program 3-3.2: Address Infrastructure Constraints) Program 1.2.B: Address Infrastructure Constraints
Ensuring the City’s infrastructure is modernized and can accommodate future growth is a critical charge of local governments. Much of the City’s infrastructure is nearing the end of its lifecycle and crafting Capital Improvement Programs that effectively manage infrastructure is imperative.
Additionally, the City experienced significant power outages during the 2022-2023 winter season that negatively impacted the City at large. The City’s Public Works Department continues to improve City infrastructure including road maintenance and storm drains, through the City’s 5-Year Capital Improvement Plan process. The City will continue to work cooperatively with outside agencies, including the Pacific Gas and Electric Company (PG&E), the Carmel Area Wastewater District (CAWD), and California American Water (Cal-AM), to continue to maintain and upgrade the City’s infrastructure.
Attachment 2
Chapter 2.0 – Goals, Policies, and Implementing Programs 2-8 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Quantified Objective: N/A
Timeframe: City’s 5-Year Capital Improvement Process through June 2031 Responsible Party: Public Works Department
Funding Source: General Fund
(Formerly Program 3-3.2: Address Infrastructure Constraints) Policy 1.3: Reduce or eliminate governmental constraints on the provision of affordable housing. Direct public funding resources to the conservation of existing housing units in neighborhoods where continued residential use is appropriate.
Program 1.3.A: Condominium Conversions - AFFH
The City will continue to implement the condominium conversion ordinance, which restricts the conversion of apartments to condominiums to preserve the lower-cost rental housing options (i.e., apartments) within the City. Apartments cannot be converted to condominiums unless a new apartment is being created to offset the conversion.
Quantified Objective: Preserve rental units
Timeframe: Continued ordinance implementation through June 2031 Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Program 3-5.3.a: Condominium Conversions)
Program 1.3.B: R-1 Overnight Visitor Accommodation (Conversion) Development Transfer Rights - AFFH
Pursuant to Coastal Zone requirements, the City has recognized existing overnight visitor accommodations (hotels/motels, inns, bed and breakfasts and other various lodging options) as an important coastal visitor asset and economic base in the community. There are a number of older, overnight visitor accommodations s in the R-1, CC, RC, and SC zoning districts, including some that are non-conforming. Figure 2-2 shows existing overnight visitor accommodation locations, and the corresponding list can be found in Appendix C. Property owners of these establishments are encouraged to consider rehabilitating these sites as multi-family rental residences. These properties are distributed throughout the City and this policy would diversify the housing stock through more cost-effective means of rehabilitating and refurbishing existing buildings. The City will develop a program to incentivize both the transfer of development rights of overnight visitor accommodations to other sites within commercial zoning districts and conversion of existing overnight visitor Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-9 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 accommodation properties to multi-family residences that include 15 percent lower-income units.
This program would retain the same number of overnight visitor accommodation rooms to serve coastal visitor access in the City while increasing the affordable multi-family housing rental stock.
Quantified Objective: 33 units converted from overnight visitor accommodation rooms to housing units
Timeframe: Program developed by June 2031
Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Program 3-4.1.b Conversion of R-1 Motels)
Program 1.3.C: Accessory Dwelling Units - AFFH
The City’s Accessory Dwelling Units (ADUs) and Junior ADUs (JADUs) ordinance is currently being updated to reflect state law. The City recognizes that ADUs provide affordable housing options for family members, seniors, students, in-home health care providers, and other small household types. ADUs can also be useful to generate additional rental income for the homeowner, making homeownership more financially feasible. It’s also important to note that 80% percent of Carmel-by-the-Sea’s vacant units are for seasonal, recreational, or occasional (second home) use.
ADU and JADU development on properties used for occasional use adds to the permanent rental housing stock and provides on-site oversight for second home properties. The City includes the Housing and Community Development Department ADU Handbook on the Planning Department website to offer technical assistance to interested property owners.
Pre-approved, standardized plans can eliminate the costs of designing a custom ADU, and assures property owners the unit type and size is already approved by the City. Pre-approved plans can also make construction more affordable if the designs are using materials that are easily sourced and standard sized.
To further promote ADU development the City will implement to the following:
Amend the Municipal Code to reflect current State ADU law in a timely manner as new relevant state laws are adopted during the planning cycle.
Timeframe: Program developed by June 2031
Develop pre-approved, standardized ADU plans available on the City’s website to further incentive the construction of ADUs.
Timeframe: December 2028
Quantified Objective: 34 units
Attachment 2
Chapter 2.0 – Goals, Policies, and Implementing Programs 2-10 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Program 3-5.3.c: Subordinate Units)
Program 1.3.D – Overnight Visitor Accommodation - Employee Housing Program The City has a number of overnight visitor accommodation (motels, hotels, inns) properties that would greatly benefit from incorporating affordable on-site employee housing. Figure 2-2 shows existing overnight visitor accommodation locations, and the corresponding list can be found in Appendix C. These units would alleviate the current lack of housing that many employees that work in overnight accommodations in Carmel face. As an incentive to commercial overnight visitor accommodation property owners to provide on-site affordable employee housing, the City will offer an additional overnight accommodation room for every onsite housing unit created. This incentive will serve to increase affordable rental housing, offset the loss of revenues for the business owners, and maintain visitor-serving coastal access. The City will amend the Municipal Code as follows:
Allow at least one on-site affordable employee housing unit in conjunction with one new overnight visitor accommodation room per unit;
Timeframe: December 2026
Quantified Objective: 31 units
Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Program 3-5.3.c: Subordinate Units)
Program 1.3.E: Amend the A-2 Zoning District - AFFH
The Community and Cultural Center Zoning District, A-2, allows senior housing (55+) as a permitted use in addition to uses that provide cultural and community activities associated with the arts, education and recreation; however, development standards are not specified for the A-2 district and design review is required. The lack of development and design standards adds uncertainty and can significantly lengthen the development process. Amending the A-2 zoning district with clear setbacks, height, and objective design standards will add clarity and remove a development constraint. The City will amend the Municipal Code to include clear development and design standards for the A-2 zoning district to encourage affordable senior housing.
Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-11 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Quantified Objective: 33 units
Timeframe: Adoption of Municipal Code amendments by December 2024 Responsible Party: Community Planning and Building Department Funding Source: General Fund
(NEW)
Figure 2-2 Existing Overnight Visitor Accommodation Map [Map to be inserted prior to HCD submittal]
Attachment 2
Chapter 2.0 – Goals, Policies, and Implementing Programs 2-12 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program 1.3.F: Manufactured Homes on a Foundation System The City currently permits manufactured homes on a foundation system on lots zoned for conventional single-family residential dwellings pursuant to state law Government Code 65852.3.
Manufactured homes represent an affordable and cost-effective form of housing. The City will amend the Municipal Code to include manufactured homes as a permitted use in the R-1 zoning district subject to the same development standards to which a conventional single-family residential dwelling on the same lot would be subject.
Quantified Objective: 8 units
Timeframe: Adoption of Municipal Code amendments by December 2024 Responsible Party: Community Planning and Building Department Funding Source: General Fund
(NEW)
Program 1.3.H: Prepare Checklist and Procedures for SB35 Government Code section 65913.4 allows qualifying development projects with a specified proportion of affordable housing units to move more quickly through the local government review process and restricts the ability of local governments to reject these proposals. SB 35 does not apply within the Coastal Zone. Carmel-by-the-Sea is entirely within the Coastal Zone. If SB-35 becomes applicable to Coastal Zone areas, the City will create a SB35 checklist and written procedures for processing SB35 applications to ensure efficient and complete application processing.
Quantified Objective: N/A
Timeframe: Within 6 months of any change to the law that would impact the City Responsible Party: Community Planning and Building Department Funding Source: General Fund
(NEW)
Program 1.3.I: Implement state law SB-10 Opportunities to Maximize Feasibility of Development in Strategic Locations.
SB10 encourages strategic density within neighborhoods. There are at least three larger sites zoned single-family (R-1) near the commercial core that could be developed with multi-family units with the implementation of SB-10. Figure 2-3 maps the three potential sites.
Quantified Objective: 18 units
Timeframe: Adoption of Municipal Code amendments by December 2024 Responsible Party: Community Planning and Building Department Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-13 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Funding Source: General Fund
(NEW)
Figure 2-3 Potential SB-10 Opportunity Sites
[Map to be inserted prior to HCD submittal]
Attachment 2
Chapter 2.0 – Goals, Policies, and Implementing Programs 2-14 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Policy 1.4: Improve Development Review and Approval Processes Program 1.4.A: Eliminate Unnecessary Use Permits - AFFH Multi-family and duplex housing units constituted approximately 13 percent of Carmel’s housing stock. The use permit (UP) (or conditional use permit (CUP)) requirement is implemented as an additional regulatory tool and adds extra regulations, review, and required findings, to a variety of development standards that affect multi-family development. Municipal Code Chapter 17.64 Findings Required for Permits and Approvals includes a broad list of applicable conditional uses and incentives. There are opportunities to reduce redundancies and facilitate residential construction while still enabling development to meet City regulations. For example, a use permit is required in:
Municipal Code Section 17.64.190 Residential Construction at Densities Between 33 and 44 Units per Acre;
Municipal Code Section 17.64.230 Affordable Housing – Residential Construction at Densities Between 45 and 88 Units Per Acre for developments the request a bonus density or a density bonus; and
Municipal Code Section 17.14.150 Building Height requires a use permit for additional underground floors used for parking vehicles, storage and mechanical equipment. The additional use permit requirement can affect how much parking can be accommodated and limit the number of units.
The City will explore eliminating UP requirements to remove a constraint to the development of multi-family residential units in conjunction with Program 3.1.G A Housing Priority Overlay District.
Quantified Objective: 50 units
Timeframe: Adoption of Municipal Code amendments by December 2024 Responsible Party: Community Development Department
Funding Source: General Fund
(Formerly Program 3-2.1.d: Multi-Family Residential Development Review) Program 1.4.C: Objective Design Standards - AFFH
The City currently relies upon mostly subjective design guidelines for new single-family residences.
In the commercial and multi-family districts, less detailed subjective design guidelines are in place.
The City’s residential and commercial design guidelines are being updated this year to provide clarity and more objectivity, however fully objective design standards are not currently being developed.
Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-15 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 The lack of objective design guidelines creates a higher level of subjectivity for multi-family affordable projects.
The lack of Objective Design Standards poses a constraint to residential development. Guidelines that are subjective increase uncertainty and risk for housing developers. Objective Design Standards provide a measure of clarity that proposed developments will be measured against, and provide the community with assurance that developments will conform with measurable objective standards.
The City will create Objective Design Standards for multi-family affordable developments.
Quantified Objective: 50 units
Timeframe: Adoption of Objective Design Guidelines by December 2025 Responsible Party: Community Planning and Building Department Funding Source: General Fund
(NEW)
GOAL H2 PROTECT AFFORDABLE HOUSING AND IMPROVE THE
HOUSING STOCK
Policy 2.1: Maintain and encourage expansion of permanent residential housing stock in the Residential and Commercial Districts.
Program 2.1.A: Incentives for Mixed-Use Development - AFFH Providing additional development capacity of any type increases project feasibility. In order to better incentivize affordable residential development, the City will amend the Municipal Code to increase the floor area bonuses from 15 to up to 25 percent for projects that include housing for Moderate, Low or Very-Low-income households. The City will also distribute informational materials promoting the floor area bonus and other applicable incentives.
Quantified Objective: 65 units
Timeframe: Adoption of Municipal Code amendments by December 2024 Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Program 3-2.1.a)
Attachment 2
Chapter 2.0 – Goals, Policies, and Implementing Programs 2-16 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program 2.1.B: Permanent Housing - AFFH
Short-term rentals can provide valuable coastal visitor-serving access; however, units used as shortterm rentals preclude the establishment of permanent housing. The City also has a significant percentage of the housing stock that remains vacant for part of the year due to second home ownership. This creates a significant barrier for current and potential residents to enter the local housing market and further limits opportunities to correct the housing crisis, address diversity, and provide inclusive housing options.
The City’s ordinance prohibiting short-term, transient rentals and timeshares of residential dwellings in the R-1 District and allowing a limited number of short-term rentals in the commercial areas has successfully limited the proliferation of these uses. The City will continue to implement these ordinances. In an effort to address the high rate of second home ownership, the City will promote Accessory Dwelling Units and Junior Accessory Dwelling Units (see Programs 1.3.C and 1.3.D) to add affordable rental units on properties that may otherwise lie vacant, and will establish an Affordable Housing Trust Fund (see Program 2.1.D).
Quantified Objective: Preservation of permanent housing and affordable units Timeframe: Continued ordinance implementation through June 2031 Responsible Party: Community Planning and Building Department, and City Administrator
Funding Source: General Fund
(Formerly Program 3-4.1.a)
Program 2.1.C: Monitor Affordable Housing Stock - AFFH
The City will develop a City-managed Affordable Housing Oversight Program and continue to monitor affordable housing projects and work with the owners to preserve affordability through identification of funding sources and/or opportunities for partnerships with other housing providers. The program will formalize annual monitoring of the affordable housing stock throughout the city to ensure affordable housing is being protected and provided as required by Government Code Section 65590. The City will update its databases to better track data on new construction, demolition, conversion and replacement housing units for low- and moderate-income households including the following:
The number of new housing units approved for construction; The number of low- and moderate-income housing units required to be provided in new housing developments;
Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-17 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 The number of existing residential dwelling units occupied by low- and moderate-income households that have been authorized to be demolished or converted; and The number of low- and moderate-income housing units required to be replaced (of those units being demolished or converted).
Quantified Objective: Monitor 60 housing units
Timeframe: Develop program by June 2025
Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Program 3-5.3.d: Monitor Affordable Housing Stock) Program 2.1.D: Establish Affordable Housing Trust Fund - AFFH The City currently relies on outside agencies and
organizations to fund affordable housing projects.
However, in an effort to establish a City-funded source dedicated to supporting the creation, maintenance, and
rehabilitation of affordable units, the City will explore the creation of an Affordable Housing Trust Fund. Sources of funding could include increasing the existing Transit
Occupancy Tax (TOT) or dedicating a portion of existing TOT to affordable housing, property transfer tax, sales tax, vacancy tax or other funding source.
Quantified Objective: $1,000,000
Timeframe: Establish Fund by
June 2031
Responsible Party: City Administrator
Funding Source: General Fund
(NEW)
Policy 2.2: Preserve and protect the scale of established neighborhoods while encouraging property improvement.
Program 2.2.A: Historic Preservation Educational Programs Cities have unique characteristics that develop over time. Carmel-by-the-Sea has a distinctive building style and form that existing residents cherish and which serves to attract new residents and “I believe a vacancy tax should
be proposed to the voters, which
can go toward funding
affordable housing. The City
needs to frame affordable
housing in a positive way. I feel
like people's aversion to
affordable housing in their
communities is just a public
relations failure."
May 24, 2023 Housing Ad Hoc Committee
Community Meeting Attendee
Attachment 2
Chapter 2.0 – Goals, Policies, and Implementing Programs 2-18 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 visitors. In an effort to continue to encourage improvements to the existing housing stock, the City will continue to promote education programs that improve public understanding of the City’s rich cultural and design heritage, and provide zoning flexibility and incentives to facilitate rehabilitation of historic resources. The City will continue to use the Historic Building Code to facilitate residential rehabilitation of historic residences.
Quantified Objective: 50 rehabilitated historic units
Timeframe: Continued education and ordinance implementation through June 2031 Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Program 3-4.3.a: Neighborhood Preservation Educational Programs) Policy 2.3: Preserve and expand affordable and rental housing opportunities to enable local employees to live in the community where they work.
Program 2.3.A: Preserve and Increase Upper Floor Residential Uses - AFFH The retail and office landscape is shifting and the City continues to experience retail and office vacancies. This shift represents an opportunity to increase supply of housing as a preferred development form in all Commercial Districts. The City currently prohibits the conversion of existing second-floor residential units to commercial use and requires all newly constructed secondfloor space to be used as residential units. Housing over first-floor commercial uses is a particularly suitable solution for underutilized second-floor space. Therefore, the City will proactively work with property owners to encourage conversion of vacant or underutilized upper floors to residential use.
Quantified Objective: 20 units
Timeframe: Proactive outreach through December 2031
Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Program 3-2.1.b)
Policy 2.4: Preserve the existing housing stock
Program 2.4.A: Housing Rehabilitation and Maintenance Information - AFFH In order to stay habitable and energy efficient, all buildings need maintenance. When buildings fall into an extreme state of disrepair, a more comprehensive housing rehabilitation procedure is needed.
Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-19 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Over the past few years, inflation and building supply chain issues have dramatically increased the cost of building materials. Labor costs have also risen significantly due to a shortage of skilled construction workers and ongoing cost-of-living increases. This results in very costly rehabilitation projects. In order to assist Low-income property owners, the City will distribute information on Inspection Services and Housing Rehabilitation programs and alternative ways of financing home repairs.
Quantified Objective: 16 rehabilitated units
Timeframe: Proactive outreach through June 3031
Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Programs 3-1.1.a and 3-1.1.c Housing Rehabilitation and Housing Maintenance) GOAL H3 PROVIDE OPPORTUNITIES FOR NEW AFFORDABLE AND
OTHER SPECIAL NEEDS HOUSING
Policy 3.1: Incentivize affordable housing development, with an emphasis on affordable housing built to accommodate Extremely-Low and Low Income residents.
Encourage the private sector to produce affordable housing.
Program 3.1.A: Mixed Use Affordable Housing - AFFH
The retail and office landscapes are shifting and this change represents an opportunity to encourage mixed-use developments (housing over first-floor commercial uses) as a preferred development form. The City will proactively work with property owners to incentivize upper-floor housing opportunities, including the potential of allowing a third-floor mezzanine for affordable housing.
Such development would be subject to appropriate objective design standards, including the City’s 30-foot height limit.
Quantified Objective: 10 units
Timeframe: Proactive outreach through June 2031
Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly 3-2.1.c: Incentives for Mixed Use Affordable Housing) Attachment 2
Chapter 2.0 – Goals, Policies, and Implementing Programs 2-20 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program 3.1.B: Housing for Extremely-Low Income
Households - AFFH
Providing housing units for Extremely-Low Income (ELI)
Households earning 30 percent or less of the Area Median Income (AMI) for Monterey County has proved challenging for the City. The City will continue to place specific
emphasis on the provision of multi-family housing and nontraditional housing types such as single-room-occupancy units and transitional housing. The City will encourage development of housing for ELI households through a
variety of activities such as targeted outreach to for-profit and non-profit housing developers on at least an annual basis, providing in-kind technical assistance, fee deferrals, expedited/priority processing, identifying grant and funding opportunities, applying for or supporting applications for funding on an ongoing basis, reviewing and prioritizing local funding for developments that include housing for ELI households and/or offering additional incentives to supplement the density bonus provisions in state law.
The City also has a variety of programs to encourage the development ELI units including Accessory Dwelling Units, a portion of which are affordable by design to Extremely-Low Income Households and Employee Housing. The City has also funded a full-time permanent Associate Planner position through the General Fund to focus on long-range planning and housing needs.
Quantified Objective: 57 units
Timeframe: Fund Associate Planner through June 2031
Responsible Party: Planning and Building Department
Funding Source: General Fund
(Formerly Program 3-5.4.b)
Program 3.1.C: Density Bonus - AFFH
Density bonuses can provide a significant incentive to build affordable housing units. By increasing the number of units permitted to be built on a property, the financial investment required to bring the development to fruition has a higher likelihood of a return. Given the high cost of materials, labor and borrowing costs, increasing the number of units can make the housing project financially feasible. The City will further review and revise applicable density bonus and bonus density ordinances to clarify the regulations and increase certainty of applicability. “I'm pretty passionate about
affordable housing and
diversity. I think that's what
makes a community, and we
do lack it. I have kids that
live in the community and
go to Carmel High School,
and I would like to see more
of a social, economic, and
age difference in our
community, personally."
May 24, 2023 Housing Ad Hoc
Committee Community Meeting
Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-21 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Quantified Objective: 15 units
Timeframe: Adoption of Municipal Code amendments by December 2024 Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Program 3-5.4.a: Density Bonus)
Program 3.1.D: Reduced Entitlement and Development Fees - AFFH Entitlement and development fees paid by project applicants assist in the City’s ability to recover administrative and operating costs; however, these fees may have the unintended consequence of increasing the cost of housing. To encourage the development of affordable housing, the City will waive the parking in-lieu fees and reduce the planning and building permit fees by up to 25% for projects that provide affordable housing in commercial areas.
Quantified Objective: Reduced City fees by 25% for developments with affordable units Timeframe: Adopt Fee Schedule by July 2025
Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Program 3-5.5.a: Reduced Entitlement and Development Fees) Program 3.1.E: Reduced Parking Requirements - AFFH
Parking requirements increase costs to residential development and take up valuable space that can be used for housing. The City will continue to offer reduced parking requirements for affordable housing developments. Additionally, the City will waive the parking in-lieu fees for projects with affordable units, clarify the program requirements in the Central Commercial (CC) zoning district, and reduce parking requirements in the Multi-Family Residential (R-4), Residential & Limited Commercial (RC), and Service Commercial (SC) zoning districts.
Quantified Objective: Reduced parking for developments with affordable units Timeframe: Adoption of Municipal Code amendments by December 2024 Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Program 3-5.5.b: Reduced Parking Requirements) Attachment 2
Chapter 2.0 – Goals, Policies, and Implementing Programs 2-22 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program 3.1.F: Expedited Processing Procedures - AFFH
Faster permit processing times reduce overall project timelines and allow a project to get to the construction stage in a timely manner. Reducing overall project timelines is critical during this inflationary period where materials and labor costs continue to rise. Additionally, supply chains still have not recovered to pre-pandemic levels and delays in processing can also result in delays in placing orders and receiving materials and securing labor. The City will develop a policy to offer expedited review procedures for residential projects that include affordable housing units and will clarify and refine permit processing procedures for affordable housing to shorten processing procedures.
Quantified Objective: Shorter processing times by 50% for developments with affordable units Timeframe: Adoption of Municipal Code amendments by December 2024 Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Program 3-5.5.c: Expedited Processing Procedures) Program 3.1.G: A Housing Priority Overlay Zoning District - AFFH Overlay districts are zoning districts established by the City to carry out specific purposes. Overlay districts can be constraints to development, or they can be used as a tool to encourage certain types of development. Currently, the City does not have an overlay district to encourage housing in the commercial districts. An overlay that requires a minimum density of 33 du/ac in the Central Commercial (CC), Service Commercial (SC), Residential and Limited Commercial (RC) District, and R-4 District encourages a higher unit yield and improves the financial viability of the project by increasing the unit count. Minimum density is also a tool that works to ensure the limited available land in the City is used in an efficient manner and lower densities are avoided.
The City will revise and incorporate into this new overlay zoning district all Municipal Code sections addressing affordable housing, including but not limited to Municipal Code Sections 17.64.190 Residential Construction at Densities Between 33 and 44 Units Per Acre, 17.64.220 Affordable Housing – Residential Construction at Densities Between 45 and 88 Units Per Acre, 17.64.230 Single-Family Dwellings in the SC and RC Districts, 17.14.030 (Land Use Regulations), and
17.14.230 (Affordable Housing); and to include incentives found elsewhere within the Municipal Code and 6th Cycle Housing Element programs including:
Water distribution priority (Program 1.2.A);
Parking reduction/waiver (Program 3.1.E);
Fee waiver/reductions (Program 3.1.D);
Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-23 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 FAR incentive (Program 2.1.A); and
Establish a minimum density of 33 du/ac.
Quantified Objective 100 units
Timeframe: Adoption of Municipal Code amendments by December 2024 Responsible Party: Community Planning and Building Department Funding Source: General Fund
(NEW)
Figure 2-4 The Housing Priority Overlay Zoning District [Map to be inserted prior to HCD submittal]
Attachment 2
Chapter 2.0 – Goals, Policies, and Implementing Programs 2-24 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Policy 3.2: Recognize the special needs of persons with disabilities and the need to retain flexibility in the design review process to accommodate these needs.
Program 3.2.A: Reasonable Accommodation Procedures - AFFH A reasonable accommodation is any change, exception or adjustment to a rule, policy, practice or service that allows a person with a disability to have an equal opportunity to participate. Information on reasonable accommodation procedures will continue to be provided at City Hall and on the City’s website. The City will evaluate and revise Policy C11-01, which describes procedures to provide reasonable accommodation and will explore reduced or waived permit fees for persons with disabilities in compliance with the provisions of SB 520 (Year), in an effort to remove any additional barriers and encourage those with disabilities to apply.
Quantified Objective: 8 applications
Timeframe: Adoption of revised policy by June 2031
Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Program 3-5.1: Reasonable Accommodation Procedures) Policy 3.3: Facilitate the provision of transitional and supportive housing in appropriate districts in the community.
Program 3.3.A: Zoning for Transitional and Supportive Housing - AFFH Senate Bill (SB) 2 (2007) revised Housing Element law requiring that transitional and supportive housing be permitted as a residential use, subject only to restrictions that apply to other residential dwellings of the same type in the same zone. In compliance with SB 2, the City will continue to allow transitional/supportive housing as a residential use, subject only to those requirements of other residential dwellings of the same type in the same zone. The City will also amend the Municipal Code to clarify that transitional and supportive housing is a permitted use in zoning districts that allow residential uses.
Quantified Objective: N/A
Timeframe: Adoption of Municipal Code amendments by December 2024 Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Program 3-5.8: Zoning for Transitional and Supportive Housing) Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-25 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program 3.3.B: Low-Barrier Navigation Centers - AFFH
Assembly Bill (AB) 101 (2019) provides a pathway to permanent housing for people experiencing homelessness. A “Low Barrier Navigation Center” is a housing first, low-barrier, service-enriched shelter focused on moving people into permanent housing. The shelter provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. In order to comply with state law, the City will amend the Municipal Code to include the definition for “Low Barrier Navigation Center” and will develop By Right procedures for processing low barrier navigation centers.
Quantified Objective: N/A
Timeframe: Adoption of Municipal Code amendments by December 2024 Responsible Party: Community Planning and Building Department Funding Source: General Fund
(NEW)
GOAL H4 EXEMPLIFY SUSTAINABLE DEVELOPMENT AND ENERGY
CONSERVATION
Policy 4.1: Support energy and water conservation programs to reduce the consumption of these resources in housing and to reduce housing costs.
Program 4.1.A: Water Conservation - AFFH
Potable water remains scarce and highly regulated in the City and continues to be a major limiting constraint to new development. In order to preserve the City’s limited water allocation for new residential units, the City will continue to enforce the Water Management Program through the building permit process, establish the Water Distribution Policy, and provide information to the community on water conservation retrofits and best practices. In addition, the City will provide information on and promote water conservation education through outreach and community engagement, and retrofit rebates provided by the Monterey Peninsula Water Management District.
Quantified Objective: Promote water conservation in 100 existing units Timeframe: Adoption of policy by June 2031
Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly 3-5.6.b Water Conservation)
Attachment 2
Chapter 2.0 – Goals, Policies, and Implementing Programs 2-26 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program 4.1.B: Energy Conservation and Green Building
Conserving energy to reduce stress on the electrical grid and reduce the effects of climate change (i.e. wildfire and flooding) is increasingly critical. The City experienced significant power outages during the 2022-23 winter storms, adjacent areas were flooded, and the past few wildfire seasons have significantly impacted air quality and resulted in evacuations of neighboring communities. The City will continue to review applications for new construction and substantial alterations, taking into consideration solar orientation and access to sunlight. The City will also continue to require compliance with current state building standards for energy efficiency in all new homes. The City will further disseminate information by updating the website annually with related energy conservation and green building information. The City also participates in the Community Wildfire Protection Program and is committed to implementing Program recommendations.
Quantified Objective: Promote energy conservation in 100 existing units Timeframe: Continued education and compliance through June 2031 Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Program 3-5.6.a: Energy Conservation and Green Building) GOAL H5 PUBLICIZE HOUSING NEEDS AND RESOURCES
Policy 5.1: Support and enforce fair housing laws. Expand fair housing choice by promoting housing opportunities and removing impediments to fair housing.
Program 5.1.A: Fair Housing Services - AFFH
The Fair Housing Act protects people from discrimination when they are renting or buying a home, getting a mortgage, seeking housing assistance, or engaging in other housing-related activities. The California Department of Fair Employment and Housing and the Conflict Resolution and Mediation Center of Monterey County provide fair housing services and information. These agencies advise persons in need of information on housing and employment, mediate landlord/tenant disputes and research complaints about discriminatory housing practices. The City shall coordinate with these agencies to provide printed information about fair housing services at City Hall, on the City’s website, and in other public buildings such as the City’s two libraries. The City shall also refer inquiries related to fair housing to these agencies and provide fair housing resources at outreach events.
Quantified Objective: 25 referrals/materials distributed Timeframe: Proactive outreach through June 2031
Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-27 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Program 3-5.7: Fair Housing Services)
Program 5.1.B: Housing Choice Voucher Program - AFFH
Created by the Housing and Community Development Act of 1978, the Housing Choice Voucher program, formerly known as Section 8, provides assistance to eligible Low- and Moderate-Income families to rent housing in the private market. Eligibility for this program is based on the family’s gross annual income and family size. The Housing Choice Voucher rental assistance program is administered by the Housing Authority of Monterey County. The City will continue to facilitate use of the Housing Choice Voucher program in the community by distributing information for the program at City Hall and the Library and making referrals to the Housing Authority.
Quantified Objective: 40 referrals/materials distributed Timeframe: Proactive outreach through June 2031
Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Program 3-5.3.b Section 8 Rental Assistance)
Program 5.1.C: Shared Housing Information - AFFH
Shared housing is another important tool to provide affordable housing units. Shared housing is generally more affordable because a portion of a residence is rented as opposed to an entire unit.
Shared housing can also financially help low-income individuals who own their homes and alleviate loneliness. Benefits to Low-Income individuals include provision of safe and secure affordable housing in a high-cost market. The City will continue to distribute informational materials from the Monterey County Housing Authority and the Carmel Foundation, display information at City Hall and other public buildings and posted on the City’s website. The City will also seek out other Shared Housing providers and resources to expand this housing option.
Quantified Objective: 80 referrals/website visits
Timeframe: Proactive outreach through June 2031
Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Program 3-5.2: Shared Housing Information)
Attachment 2
Chapter 2.0 – Goals, Policies, and Implementing Programs 2-28 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Policy 5.2: Promote public awareness and foster pride in the history of the village.
Program 5.2.A: Support Community Organizations - AFFH
Community organizations play a pivotal role to provide outreach and services to those facing housing issues. The City will continue to support neighborhood organizations that promote neighborhood involvement, safety and improvement, including but not limited to the Carmel Residents Association, the Carmel Foundation and the Carmel Heritage Society. The City will develop partnerships with these organizations to promote neighborhood enhancement programs, conduct and improve outreach and education, and solicit community input.
Quantified Objective: N/A
Timeframe: Proactive outreach and partnerships through June 2031 Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Program 3-4.2.b: Support Neighborhood Organizations)
Attachment 2
Housing Needs & Fair Housing Report A
APPENDIX
Attachment 2
Attachment 2
Table of Contents
APPENDIX A HOUSING NEEDS & FAIR HOUSING REPORT........................................... A-1 A.1 Introduction ........................................................................................................................... A-1 A.2 Population, Employment, and Household Characteristics ............................................. A-8 A.3 Disproportionate Housing Needs ..................................................................................... A-31 A.4 Special Needs Groups ......................................................................................................... A-40 A.5 Access to Opportunity ........................................................................................................ A-53 A.6 Housing Stock Characteristics........................................................................................... A-60 A.7 Fair Housing Enforcement and Outreach Capacity....................................................... A-74 A.8 Fair Housing Recommendations ....................................................................................... A-79 A.9 Conclusion ............................................................................................................................ A-84 Tables
Table A-1 Population Growth Forecast by Jurisdiction, 2015-2045 ................................... A-9 Table A-2 Population Age Distribution by Jurisdiction, 2019 ............................................ A-11 Table A-3 Population by Race by Jurisdiction, 2019 ............................................................ A-12 Table A-4 Employment Growth Forecast by Jurisdiction, 2015-2045 ............................. A-19 Table A-5 Employment by Sector, Carmel-by-the-Sea, 2010 and 2019............................ A-20 Table A-6 Unemployment Rate, Carmel-by-the-Sea, 2019................................................. A-22 Table A-7 Regional Housing Needs Allocation .................................................................... A-23 Table A-8 Occupations by Mean Salary, Monterey County, 2019 ..................................... A-24 Table A-9 Housing Forecast by Jurisdiction, 2015-2045..................................................... A-24 Table A-10 Households by Income Category, Carmel-by-the-Sea, 2019............................ A-27 Table A-11 Overview of Special Needs Groups..................................................................... A-40 Table A-12 Extremely Low-Income Households, Carmel-by-the-Sea, 2015-2019 ........... A-42 Table A-13 Disability Status by Age, Carmel-by-the-Sea, 2021............................................ A-47 Attachment 2
Table A-14 Population with Developmental Disabilities by Age, Carmel-by-the-Sea, 2021 .......................................................................................................................... A-48 Table A-15 Population with Developmental Disabilities by Residence, Carmel-bythe-Sea, 2021 ........................................................................................................... A-48 Table A-16 Homeless Population by Jurisdiction, 2017-2022.............................................. A-52 Table A-17 Homelessness by Household Type and Shelter Status, Monterey County, 2019 .......................................................................................................................... A-52 Table A-18 Housing Unit Growth Trends by Jurisdiction, 2010-2019............................... A-60 Table A-19 Housing Units by Type by Jurisdiction, 2019 ..................................................... A-61 Table A-20 Housing Units by Type and Tenure, Carmel-by-the-Sea, 2019 ....................... A-62 Table A-21 Household Size by Tenure by Jurisdiction, 2019 ............................................... A-62 Table A-22 Vacant Housing Units by Type, Carmel-by-the-Sea, 2019............................... A-65 Table A-23 Housing Permits by Income Group, Carmel-by-the-Sea, 2015-2021............. A-65 Table A-24 Inventory of Assisted Rental Housing ................................................................ A-67 Table A-25 Median Home Value by Jurisdiction, 2019-2022............................................... A-72 Table A-26 Average Rent by Number of Bedrooms, Carmel-by-the-Sea, 2023................ A-72 Table A-27 Housing Affordability, Carmel-by-the-Sea, 2022............................................... A-73 Table A-28 Fair Housing Issues, Contributing Factors, and AFFH Programmatic Actions ..................................................................................................................... A-81 Figures
Figure A-1 Major Public and Legal Actions that Influence Fair Access to Housing ..........A-3 Figure A-2 Population Growth, Carmel-by-the-Sea, 2010-2019 ............................................A-9 Figure A-3 Population Distribution by Age, Carmel-by-the-Sea, 2010-2019 .................... A-10 Figure A-4 Population by Race Compared to the County, 2019 ......................................... A-11 Figure A-5 Population by Race, Carmel-by-the-Sea, 2010-2019 ......................................... A-13 Figure A-6 Diversity Index, Carmel-by-the-Sea, 2018 .......................................................... A-14 Figure A-7 R/ECAP by Census Tract, Carmel-by-the-Sea, 2009-2013 ............................. A-16 Figure A-8 RCAAs by Census Tract, Carmel-by-the-Sea, 2015-2019 ................................ A-17 Attachment 2
Figure A-9 Percent Non-White by Block Group, Carmel-by-the-Sea, 2018 ..................... A-18 Figure A-10 Worker Earnings by Place of Residence & Place of Work, Carmel-bythe-Sea, 2019 ........................................................................................................... A-21 Figure A-11 Household by Type by Jurisdiction, 2019 ........................................................... A-25 Figure A-12 Changes in Household Type, Carmel-by-the-Sea, 2010-2019.......................... A-26 Figure A-13 Households by Household Size by Jurisdiction, 2019 ...................................... A-26 Figure A-14 Median Household Income by Jurisdiction, 2019 ............................................. A-28 Figure A-15 Median Income by Block Group, Carmel-by-the-Sea, 2015-2019 .................. A-29 Figure A-16 Income by Category, Carmel-by-the-Sea, 2019.................................................. A-30 Figure A-17 Housing Tenure by Jurisdiction, 2019 ................................................................. A-31 Figure A-18 Housing Problems by Tenure, Carmel-by-the-Sea, 2015-2019........................ A-32 Figure A-19 Severe Housing Problems by Tenure, Carmel-by-the-Sea, 2015-2019........... A-33 Figure A-20 Overcrowding by Severity by Jurisdiction, 2019................................................ A-34 Figure A-21 Overcrowding by Tenure and Severity, Carmel-by-the-Sea, 2019 .................. A-34 Figure A-22 Overcrowded Households, Carmel-by-the-Sea.................................................. A-35 Figure A-23 Cost Burden Severity by Jurisdiction, 2015-2019 .............................................. A-36 Figure A-24 Cost Burden by Tenure, Carmel-by-the-Sea, 2015-2019 .................................. A-37 Figure A-25 Cost Burden by Home Owners, Carmel-by-the-Sea, 2015-2019..................... A-38 Figure A-26 Cost Burden by Renter Households, Carmel-by-the-Sea, 2015-2019............. A-39 Figure A-27 Percent Living Below the Poverty Line by Race and Ethnicity, Carmelby-the-Sea, 2019...................................................................................................... A-43 Figure A-28 Senior Population by Jurisdiction, 2019 .............................................................. A-44 Figure A-29 Senior Housing by Tenure, Carmel-by-the-Sea, 2019 ....................................... A-44 Figure A-30 Senior Households by Income, Carmel-by-the-Sea, 2019 ................................ A-45 Figure A-31 Population by Disability Status by Jurisdiction, 2021 ........................................ A-46 Figure A-32 Trends in Persons with Disabilities, Carmel-by-the-Sea, 2012-2021 .............. A-46 Figure A-33 Households by Size and Tenure, Carmel-by-the-Sea, 2019.............................. A-49 Figure A-34 Single-Parent Households by Jurisdiction, 2019 ................................................ A-49 Attachment 2
Figure A-35 Trends in Single-Parent Households, Carmel-by-the-Sea, 2010-2019............ A-50 Figure A-36 Hired Farm Labor, Monterey County, 2002-2017............................................. A-51 Figure A-37 TCAC Opportunity Composite Score, Carmel-by-the-Sea, 2022 ................... A-54 Figure A-38 TCAC Opportunity Economic Score, Carmel-by-the-Sea, 2022 .................... A-55 Figure A-39 TCAC Opportunity Education Score, Carmel-by-the-Sea, 2022 .................... A-57 Figure A-40 TCAC Opportunity Environmental Score, Carmel-by-the-Sea, 2022............ A-58 Figure A-41 Social Vulnerability Index, Carmel-by-the-Sea, 2018 ........................................ A-59 Figure A-42 Housing by Type in Carmel-by-the-Sea, 2010-2019.......................................... A-61 Figure A-43 Household Tenure by Race, Carmel-by-the-Sea, 2019 ..................................... A-63 Figure A-44 Vacancy Rates by Jurisdiction, 2019 .................................................................... A-64 Figure A-45 Vacancy Trends, Carmel-by-the-Sea, 2010-2019 ............................................... A-64 Figure A-46 Displacement Risk, Carmel-by-the-Sea, 2022..................................................... A-70 Figure A-47 Housing Stock by Age, Carmel-by-the-Sea, 2019.............................................. A-71 Figure A-48 FHEO Cases Total, Monterey County, 2020 ..................................................... A-76 Figure A-49 FHEO Cases, Disability Bias, Monterey County, 2020 .................................... A-77 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-1 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Appendix A
Housing Needs & Fair Housing Report
A.1 Introduction
The following report provides both the City of Carmel-by-the-Sea Housing Needs Assessment and Fair Housing Assessment. This analysis primarily utilizes U.S. Census Bureau American Community Survey (ACS) 5-Year Estimate data1 and California Department of Housing and Community Development (HCD) data.
Housing Needs Assessment
The Housing Needs Assessment for the City of Carmel-by-the-Sea provides an in-depth analysis of the City’s population, employment, economics, household, and housing stock conditions and characteristics. This assessment develops context for the City’s goals, programs, and policies for the 6th Cycle Housing Element.
Fair Housing Assessment
In 2018, Governor Brown signed Assembly Bill (AB 686) which requires departments and agencies to administer programs relating to housing in a way that affirmatively furthers fair housing (AFFH) 2 .
As of January 1, 2019, AB 686 extends the obligation to affirmatively further fair housing to all public agencies in the State of California. This affirmative duty is not limited to those agencies with relationships with the federal government and is to be broadly applied throughout agencies at the state and local level. Now, all public agencies must both (1) administer programs and activities relating to housing and community development in a manner that affirmatively furthers fair housing, and (2) take no action inconsistent with this obligation3. AB 686 also made changes to Housing Element Law, requiring Housing Elements and General Plans to incorporate AFFH requirements.
Such requirements include an analysis of fair housing outreach and capacity, integration and segregation, access to opportunity, disparate housing needs, and current fair housing practices. 1 The primary reason for using 2019 data is because this is the data that was primarily being used by HCD in their AFFH datasets for the majority of housing needs data, including data that is pulled from CHAS datasets which range from 2013-2019. Additionally, 2020-2021 Census data may not be representative due to the COVID-19 pandemic. Largely, the data is reported for 2019 as this aligns with the supplemental data HCD has provided and allows for consistent reporting.
2 Public agencies receiving funding from the U.S. Department of Housing and Urban Development (HUD) are also required to demonstrate their commitment to AFFH. The federal obligation stems from the fair housing component of the federal Civil Rights Act mandating federal fund recipients to take “meaningful actions” to address segregation and related barriers to fair housing choice. 3 California Department of Housing and Community Development Guidance, 2021, page 9.
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-2 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Affirmatively Furthering Fair Housing
“Affirmatively furthering fair housing” means taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. Specifically, affirmatively furthering fair housing means taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws.
The duty to affirmatively further fair housing extends to all of a public agency’s activities and programs relating to housing and community development. (Gov. Code, § 8899.50, subd. (a)(1).)”
SOURCE: California Department of Housing and Community Development Guidance, 2021, page 14.
History of segregation in the region
The United States’ oldest cities have a history of
mandating segregated living patterns. Exclusive zoning
practices were common in the early 1900s -- courts
struck down only the most discriminatory and allowed
those that would be considered today to have a
“disparate impact” on classes protected by the Fair
Housing Act. For example, the 1926 case Village of
Euclid v. Amber Realty Co. (272 U.S. 365) supported the segregation of residential, business, and industrial uses, justifying separation by characterizing apartment
buildings as “mere parasite(s)” with the potential to
“utterly destroy” the character and desirability of
neighborhoods. At that time, multifamily apartments
were the only housing options for people of color,
including immigrants.
The Federal Fair Housing Act was not enacted until nearly 60 years after the first racial zoning ordinances appeared in U.S. cities. This coincided with a shift away from federal control over lowincome housing toward locally-tailored approaches (block grants) and market-oriented choice (Section 8 subsidies, now called Housing Choice Vouchers)—the latter of which is only effective when adequate affordable rental units are available.
Figure A-1 on the following page provides a timeline of major legal and public actions that have influenced fair access to housing beginning in 1910.
This history of segregation in the
region is important not only to
understand how residential
settlement patterns came about—
but, more importantly, to explain
differences in housing opportunity
among different residents.
In sum, not all residents had equal
ability to build housing wealth.
This historically unequal playing
field in part determines structural
inequities that persist today.
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-3 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-1 Major Public and Legal Actions that Influence Fair Access to Housing SOURCE: Root Policy Research
Appendix A – Housing Needs & Fair Housing Report A-4 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Monterey County and the Monterey Bay region also have an interesting past, as far as the fight to end racial segregation is concerned. Some of the segregation in the Monterey Bay area can be attributed to historically discriminatory practices, such as racial covenants4 , redlining5, and
discriminatory mortgage approvals. While Carmel-by-the-Sea itself does not have a history of racial covenants, the City’s racial characteristics do reflect persistent “structural inequities” in society, and “self-segregation” (i.e., preferences to live near similar people).
Kent Seavey’s 2007 book Carmel: A History in Architecture details the history of Carmel-by-the-Sea, from its early settlement by Spanish explorers, to its marketing as a “seaside resort for Catholics” in the 1880s, to the development of the City’s more contemporary history and architectural design.
Similar to other jurisdictions within Monterey County, Carmel-by-the-Sea does not have a high level of diversity.
Harold and Ann Gilliam describe the history of Carmel in their 1996 book Creating Carmel, The Enduring Vision. Carmel started as an artist town, with notable writers, artists and poets Mary Austin, Sinclair Lewis, Jack London and Robinson Jeffers settling in Carmel-by the-Sea. They were drawn to Carmel-by-the-Sea for its natural beauty, a quiet town among Monterey pine forest, scenic, rocky coastline, and white sand beaches. The early small cottages of the early 1900’s reflect these humble beginnings, and the evolution of Carmel’s architecture, including, Comstock’s notable fairy-tale style buildings, mirrors the community of artists who resided in Carmel-by-the-Sea. As Carmel-by-the-Sea grew and became a globally known tourist destination land prices began to increase. Gilliam writes, "[a]s expensive homes have replaced Carmel’s traditional cottages, the town’s demographics have changed. The artists and writers who carried on the Sterling tradition… and the low-to-middleincome residents in the old redwood cottages, have been gradually replaced by upscale business people and professionals able to afford the fantastically escalating prices of land”. In addition to historical discriminatory practices that embedded segregated living patterns throughout the Monterey Bay area, it’s also necessary to recognize the historical impacts of colonization and genocide on Indigenous populations and how the effects of those atrocities are still being felt today.
Historically, the Monterey Peninsula has been home to indigenous populations for more than 10,000 years. The original inhabitants of present-day Monterey County were the Ohlone (Costanoan), Salinan, and Esselen tribes who have “…lived in communities related by language, family, and custom.”6 However, “[d]ue to the devastating policies and practices of a succession of explorers, missionaries, settlers, and various levels of government over the centuries since European expansion, these tribes have lost the vast majority of their population as well as their land.”7 4 Racial covenants are clauses that were inserted into property deeds to prevent people who were not White from buying or occupying land. 5 Redlining is the practice of denying credit to individuals based on race, ethnicity, or other discriminatory practices. 6 From Racial Beachhead: Diversity and Democracy in a Military Town, by Carol Lynn McKibben, 2012, Stanford University Press.
7 From Indigenous peoples of San Mateo County. San Mateo County Office of Education.
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Appendix A – Housing Needs & Fair Housing Report A-5 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 The lasting influence of these policies and practices have contributed directly to the disparate housing and economic outcomes collectively experienced by Native populations today.8 The Monterey County Weekly news outlet highlights the past and present effects of restrictive covenants, along with other housing issues such as “the lack of affordable housing, generational wealth inequities and zoning issues,” as potential contributing factors segregation within the County.9 Though restrictive racial covenants were never enacted specifically in Carmel-by-the-Sea (unlike nearby Pebble Beach and Pacific Grove), the City’s population demographics are less diverse than other jurisdictions within Monterey County. Carmel-by-the-Sea’s General Plan and Zoning Ordinance have long emphasized single-family residential patterns and consequently, the City offers a limited variety of housing types with 87 percent single family detached units. Historically, this type of development contributed to segregation patterns in part due to higher purchase costs that accompany single-family homes. Because financing for single-family properties favored educated higher income earners, purchasing property in the City remained out of reach for many lower income households and likely contributed to the demographics seen in the City today.
Enacting policies and programs that promote AFFH and highlight the community’s assets could attract a broader demographic to the area, and encourage those that work in the City to live here as well. As reflected by the 2021 Proclamation of the City Council of Carmel-by-the-Sea: Carmel-bythe-Sea has been and will continue to be enriched and enhanced in its cultural fabric, economic prosperity, and personal understanding of others by having a principled and respectful community standard towards all people.
8 From Systemic Inequality: Displacement, Exclusion, and Segregation, by Danyelle Solomon, et al., 2019, Center for American Progress. 9 From Ribakoff, S. (2022, November 24) A new group sets out to explore the history of racist housing covenants in Monterey County. Monterey County Weekly.
Carmel-by-the-Sea has been and will continue to be enriched and enhanced in its cultural fabric, economic prosperity and personal understanding of others by having a principled and respectful community standard towards all people.
July 5, 2021
Proclamation of the City Council of
Carmel-By-The-Sea
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Appendix A – Housing Needs & Fair Housing Report A-6 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Overview of Carmel-by-the-Sea
Over the past 10 years, Carmel-by-the-Sea has experienced growth in both population and jobs10, which means more
housing of various types and sizes is needed to ensure that residents across all income levels, ages, and abilities have a place to call home. While the number of people drawn to the City has steadily increased, housing production has not kept pace with demand, contributing to the housing shortage in the City. The following Housing Needs and Fair Housing Assessment develops context for the goals, programs, and policies that Carmel-by-the-Sea will implement to address inequities in the 6th Cycle Housing Element.
Summary of Population, Employment, Household and
Housing Stock Characteristics
The following provides a brief overview of population,
employment, household, and housing stock characteristics in Carmel-by-the-Sea. These statistics help inform the existing housing needs in Carmel-by-the-Sea, as well as highlighting past trends and future forecasts to develop proactive policies and programs to address the needs of the community.
Between 2010-2019, Carmel-by-the-Sea’s population increased by 2.8 percent. 11 According to the Association of Monterey Bay Area Governments (AMBAG) 2022 Regional Growth Forecast, Carmel-by-the-Sea, the population is forecast to grow by approximately three (3) percent between 2015 to 2045.
In 2019, the predominant age group was individuals between 65 to 74 years of age. In 2019, the population was comprised of the following racial and ethnic groups: non-Hispanic White individuals (86.5 percent), Hispanic or Latino (8.2 percent), Asian populations (5.2 percent), and Black or African American (0.1 percent).
According to the AMBAG 2022 Regional Growth Forecast, Carmel-by-the-Sea is projected to experience an employment growth of 17 percent (562 new jobs) between 2015-2045. In 2019, the unemployment rate was 0.1 percent; approximately 5 percent less than the County. 10 From AMBAG Regional Growth Forecast 2022; 2010 (population: 3,722); 2015 (population 3,854); 2020 (population: 3,949).
11 From U.S. Census Bureau, ACS 5-Year Estimate, 2010-2019 The fear factor about ‘housing
projects’ is very high in this
community. Even the process of
identifying housing sites is a red
flag for this community. However,
[more detached dwelling units and
new residential apartments above
commercial spaces] is a
continuation of a tradition that is
tried and true and proven all over
the world and also is the tradition
of this community.
February 28, 2023 Housing Ad Hoc
Committee Community Meeting
Attendee
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-7 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 According to the AMBAG 2022 Regional Growth Forecast, Carmel-by-the-Sea is forecast to have a household growth of approximately one (1) percent by 2045 – an increase of 42 housing units.
In 2019, the largest household type was married-couple family households (47 percent) singleperson households (40 percent), female-headed households (6 percent), Other non-family households (5 percent), and male-headed households (2 percent). In 2019, above moderate-income households made up the majority of households in the City (62 percent) followed by lower-income households (28 percent), and moderate-income households (10 percent).
In 2019, the housing stock was predominantly occupied by owner households (57 percent), compared to renter households (43 percent).
In 2019, the majority of households (94 percent) do not experience overcrowding. Six (6) percent of households in Carmel-by-the-Sea are severely overcrowded and zero percent are moderately overcrowded.
In 2019, 23 percent of households are cost burdened and 23 percent are severely cost burdened. The 2015-2019 Comprehensive Housing Affordability Strategy (CHAS) data indicates there were approximately 310 extremely low- and very low-income households living in Carmel-by-theSea. There are approximately 140 extremely low-income households in Carmel-by-the-Sea, 100 of which are owner-occupied households and 40 extremely low-income renter-occupied households.
In 2019, senior households makeup 43 percent of all households; 15 percent of seniors rent their homes.
In 2019, 12 percent of people in Carmel-by-the-Sea have a disability of some kind. In 2019, Carmel-by-the-Sea had 70 large households, of which 57 percent are renter-occupied households. Renter-occupied households makeup the majority of all 3-5+ person households. In 2019, female-headed family households comprised 75 percent of single-parent households and male-headed households accounted for 25 percent. No single-parent households fell below the poverty level.
The number of households experiencing homelessness has decreased between 2017 to 2022 from 16 persons to one (1), respectively.
In 2019, Carmel-by-the-Sea had 3,832 housing units, an approximate 6 percent increase from the 3,606 units that existed in 2010.
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-8 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Between 2015 and 2022, 18 housing units were issued permits in Carmel-by-the-Sea which represents 58 percent of the RHNA number of 31 units assigned in the 5thCycle Housing Element.
In 2019, the housing stock included the following unit types: 87 percent of homes were singlefamily detached; 10 percent were multifamily; 2 percent were mobile homes; and 1 percent were single-family attached.
From 2010 to 2019, the City has experienced a stable vacancy average of 51 percent as a result of tourism and second-home ownership.
As of 2019, 80 percent of Carmel-by-the-Sea’s vacant units were for seasonal, recreational, or occasional (second home) use.
In 2022, the median home value was estimated to be $2,070,835. Home prices increased by 59 percent from 2019 to 2022. This reflects a 20 percent higher increase than the County, which is similar to nearby cities.
12 As of 2023, the average rent for an apartment in Carmel-by-the-Sea ranged from $2,200 (studio) to $5,459 (three bedrooms).13
A.2 Population, Employment, and Household Characteristics Population characteristics impact current and future housing needs in a community. A city’s population growth, age composition, and race and ethnicity composition help to determine the type and extent of housing needed. The following section provides analysis of population characteristics and local trends that affect housing demand in Carmel-by-the-Sea.
Population Growth
Table A-1 shows population projections through 2045 according to the Association of Monterey Bay Area Governments (AMBAG) 2022 Regional Growth Forecast. In Carmel-by-the-Sea, the population is forecast to grow approximately 3 percent between 2015 to 2045. This reflects 11 percent less than the County, 1 percent more than Pacific Grove, and 56 percent less than Del Rey Oaks14. Population growth forecasts provide critical insight to the future demands of communities in terms of housing needs, employment, and more.
12 From Zillow Home Value Index, December 2019-2022 13 From Zillow Rental Price Index, March 2023 14 These two Cities have been chosen for comparison throughout the document based on having comparable population sizes to Carmel-by-the-Sea.
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Appendix A – Housing Needs & Fair Housing Report A-9 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Table A-1 Population Growth Forecast by Jurisdiction, 2015-2045 Jurisdictions Population Change
2015-2045
2015 2020 2025* 2030* 2035* 2040* 2045* Numeric %
Monterey County 430,310 441,143 452,761 467,068 476,028 483,884 491,443 61,133 14% Carmel-by-theSea 3,854 3,949 3,946 3,954 3,964 3,974 3,984 130 3% Del Rey Oaks 1,663 1,662 1,693 1,734 1,859 2,330 2,650 987 59% Pacific Grove 15,460 15,265 15,290 15,395 15,530 15,676 15,817 357 2% SOURCE: AMBAG Regional Growth Forecast, 2022
NOTE: *Projected growth values
Figure A-2 illustrates population growth in Carmel-by-the-Sea between 2010-2019. Carmel-by-theSea’s population increased by 2.8 percent from 2010 to 2019. The City’s population steadily increased from 2010 to 2017 before experiencing a sharp decline through 2019.
Figure A-2 Population Growth, Carmel-by-the-Sea, 2010-2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2010-2019 Age Characteristics
A community’s housing needs are partly determined by preferences of age groups and household types (age, family/non-family, female-headed, etc.). When seeking housing, households may prioritize factors such as size, accessibility, and price. For instance, younger and middle-aged households may seek homes that can accommodate a growing household size, whereas older adults may seek to downsize to an apartment with assistive care services or a smaller, more affordable single-family home. Disabled persons may seek homes that are accessible and include universal 3600
3650
3700
3750
3800
3850
3900
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Population
Year
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-10 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 design or visitability features. Overall, the life stages of a population determine the housing stock that is needed in a community.
In 2010, Carmel-by-the-Sea’s predominant age group was
individuals between 65 and 74 years of age (19 percent).
Figure A-3 shows that between 2010 and 2019, the
general age of the population has been slowly increasing, with the most populous age groups in the City being
individuals between 55 and 84 years of age. The City’s
median age has changed little since 2010, ranging from
56 in 2010, 54 in 2015, and 59 in 2019. Overall, the City’s aging trend suggests a demand for housing geared toward middle-aged to senior groups.
Figure A-3 Population Distribution by Age, Carmel-by-the-Sea, 2010-2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2010, 2015, 2019 Age 0-4 Age 5-14 Age 15-24 Age 25-34 Age 35-44 Age 45-54 Age 55-64 Age 65-74 Age 75-84 Age 85+ 2010 3% 8% 4% 8% 10% 17% 12% 19% 12% 5%
2015 6% 11% 6% 6% 11% 11% 16% 20% 8% 6%
2019 1% 10% 1% 8% 11% 11% 14% 21% 15% 7%
0%
5%
10%
15%
20%
25%
“When I grew up, this
was a town of children.
All the property owners
were parents. All the
employees in the stores
were parents. So,
everything in this town
was about children, and
we don't have children
anymore.”
May 24, 2023 Housing Ad
Hoc Committee Community
Meeting Attendee
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-11 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Table A-2 shows population age distribution revealing that Carmel-by-the-Sea’s most populous age group in 2019 was individuals 65 to 74 years of age (21 percent). Compared to the County and nearby cities, Carmel-by-the-Sea has the largest 55 to 85+ age group (43 percent) followed by Pacific Grove (27 percent), Del Rey Oaks (23 percent), and the County (13 percent). Since 2010, Carmelby-the-Sea’s smallest age demographic are those aged 0-14.
Table A-2 Population Age Distribution by Jurisdiction, 2019 Jurisdiction Population Age
0-4 5-14 15-24 25-34 35-44 45-54 55-64 65-74 75-84 85+
Monterey County 7.3% 14.8% 14.3% 14.4% 13.0% 11.8% 11.1% 7.7% 3.6% 1.9% Carmel-by-the-Sea 1.4% 9.7% 1.4% 8.1% 10.6% 11.4% 14.3% 21.3% 14.9% 7% Del Rey Oaks 5.7% 8.3% 5.7% 12.6% 12.5% 13% 18.9% 15.9% 4.4% 2.9% Pacific Grove 3.5% 12.2% 8.5% 10.0% 10.4% 13.3% 14.7% 16.5% 6.6% 4.3% SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
Race and Ethnicity Characteristics
Understanding the racial and ethnic composition of a city is vital to ensuring equal opportunity to housing for all groups, inclusive of cultural norms and preferences. An in-depth analysis of race and ethnicity is provided in the Fair Housing Report in Appendix A. Figure A-4 illustrates the racial and ethnic composition of Carmel-by-the-Sea compared to the County.
Figure A-4 Population by Race Compared to the County, 2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
American
Indian or
Alaska
Native
Asian
Black or
African
American,
NonHispanic
White,
NonHispanic
Some
other race
Hispanic
or Latino
Native
Hawaiian
and Other
Pacific
Islander
Carmel-by-the-Sea 0.0% 5.2% 0.1% 86.5% 0.0% 8.2% 0.0%
Monterey County 0.2% 5.5% 2.5% 30.8% 0.1% 60.3% 0.5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-12 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 When comparing the City and the County, non-Hispanic White and Hispanic or Latino populations are the most represented; however, the County presents more diversity than Carmel-by-the-Sea.
Non-Hispanic White individuals comprise 87 percent of Carmel-by-the-Sea’s population followed by Hispanic or Latino (8 percent) and Asian populations (5 percent). In contrast, the County’s largest population is Hispanic or Latino individuals (60 percent) followed by non-Hispanic White (31 percent). The City has no populations identifying as American Indian or Alaska Native or Native Hawaiian or Other Pacific Islander. Black or African American non-Hispanic individuals represent less than 1 percent of the City’s population.
Table A-3 provides a comparison of racial and ethnic composition by jurisdiction. In 2019, Carmelby-the-Sea (87 percent) and the neighboring City of Pacific Grove (83 percent) had the largest nonHispanic White populations compared to Del Rey Oaks (75.5 percent) and the County (30.8 percent). Compared to surrounding cities and the County, Carmel-by-the-Sea had the lowest Asian population (5 percent). Overall, Carmel-by-the-Sea is one of the least diverse when compared to the County and the nearby cities of Del Rey Oaks and Pacific Grove.
Table A-3 Population by Race by Jurisdiction, 2019
Jurisdiction
American
Indian or
Alaska
Native
Asian,
alone
Black or
African
American,
NonHispanic
White, NonHispanic
Some
Other
Race
Hispanic
or Latino
Native
Hawaiian
and Other
Pacific
Islander
Monterey County 0.2% 5.5% 2.5% 30.8% 0.1% 60.3% 0.5%
Carmel-by-the-Sea 0.0% 5.2% 0.1% 86.5% 0.0% 8.2% 0.0%
Del Rey Oaks 0.0% 7.1% 2.5% 75.5% 0.0% 13% 0.3%
Pacific Grove 0.2% 5.8% 1.0% 82.8% 0.0% 10.3% 0.1%
SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
When analyzing race and ethnicity in a city, it’s important to understand how demographics have changed over time. Figure A-5 illustrates changes in population by race between 2010-2019 in Carmel-by-the-Sea. During this time frame, Carmel-by-the-Sea’s population composition experienced fluctuations in nearly all populations, and by 2019 saw a decline in each population except non-Hispanic White. In 2015, the non-Hispanic White population experienced a 2 percent decrease in size, while the Asian and Hispanic or Latino populations increased 2 percent and 3 percent, respectively. In 2019, Carmel-by-the-Sea experienced a 7 percent increase in the nonHispanic White population, and a decline in both the Asian and Hispanic or Latino populations by 4 percent and 3 percent, respectively. Since 2015, population levels have remained less than 1 percent for Black or African American, American Indian or Alaska Native, Native Hawaiian, and Other Pacific Islander populations in Carmel-by-the-Sea.
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-13 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-5 Population by Race, Carmel-by-the-Sea, 2010-2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2010, 2015, 2019 Demographic characteristics such as the racial and ethnic composition of a city are necessary to inform the housing needs of a community inclusive of cultural norms and preferences.
Diversity Index
The Diversity Index measures the degree to which the five major ethnic populations (non-Hispanic White, non-Hispanic Black, Asian and Pacific Islander, Hispanic, and Two or more races) are evenly distributed across a geographic area. The index ranges from 0 to 1 – where 0 is low diversity, meaning only one group is present and 1 is high diversity, meaning an equal proportion of all five groups is present).
Integration and Segregation
“Integration generally means a condition in which there is not a high concentration of persons of a particular race, color, religion, sex, familial status, national origin, or having a disability or a particular type of disability when compared to a broader geographic area.
Segregation generally means a condition in which there is a high concentration of persons of a particular race, color, religion, sex, familial status, national origin, or having a disability or a type of disability in a particular geographic area when compared to a broader geographic area.” SOURCE: California Department of Housing and Community Development Guidance, 2021, page 31.
Figure A-6 below depicts the level of diversity within the City. Carmel-by-the-Sea, along with neighboring jurisdictions have the lowest levels of diversity within the region. Carmel-by-the-Sea has a low level of diversity with 86.5 percent of the population identifying as non-Hispanic White.
American
Indian or
Alaska Native
Asian
Black or
African
American,
Non-Hispanic
White, NonHispanicSome other
race
Hispanic or
Latino
Native
Hawaiian and
Other Pacific
Islander
2010 0.0% 8.6% 1.4% 81.5% 0.0% 8.5% 0.0%
2015 0.3% 9.0% 0.0% 79.6% 0.0% 11.1% 0.0%
2019 0.0% 5.2% 0.1% 86.5% 0.0% 8.2% 0.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-14 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-6 Diversity Index, Carmel-by-the-Sea, 2018
SOURCE: California Department of Housing and Community Development, AFFH Data Viewer Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-15 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Racially or Ethnically Concentrated Areas of Poverty and Affluence A Racially Concentrated Area of Poverty or an Ethnically Concentrated Area of Poverty (R/ECAP) and a Racially Concentrated Area of Affluence (RCAAs) represent opposing ends of the segregation spectrum from racially or ethnically segregated areas with high poverty rates to affluent predominantly White neighborhoods. Historically, HUD has paid particular attention to R/ECAPs as a focus of policy and obligations to AFFH. Recent research out of the University of Minnesota Humphrey School of Public Affairs argues for the inclusion of RCAAs to acknowledge current and past policies that created and perpetuate these areas of high opportunity and exclusion.15 R/ECAPs
HCD and HUD’s definition of a Racially/Ethnically Concentrated Area of Poverty is:
A census tract that has a non-White population of 50 percent or more (majority-minority) or, for non-urban areas, 20 percent, AND a poverty rate of 40 percent or more; OR A census tract that has a non-White population of 50 percent or more (majority-minority) AND the poverty rate is three times the average tract poverty rate for the County, whichever is lower.
SOURCE: California Department of Housing and Community Development Guidance, 2021.
It is important to note that R/ECAPs and RCAAs are not areas of focus because of racial and ethnic concentrations alone. This study recognizes that racial and ethnic clusters can be a part of fair housing choice if they occur in a non-discriminatory market. Rather, R/ECAPs are meant to identify areas where residents may have historically faced discrimination and continue to be challenged by limited economic opportunity, and conversely, RCAAs are meant to identify areas of particular advantage and exclusion.
RCAAs
HCD and HUD’s definition of an RCAA is a census tract 1) with a percentage of its total White population that is 1.25 times higher than the average percentage of the COG region’s White population; and 2) has a median income that is 2 times higher than the COG Area Median Income (AMI). Generally, these are understood to be neighborhoods in which there are both high concentrations of non-Hispanic White households and high household income rates.
SOURCE: California Department of Housing and Community Development Guidance, 2023 As can be seen in the Figure A-7 and Figure A-8, the City of Carmel-by-the-Sea is not considered a R/ECAP; nor, is the City considered an RCAA. As highlighted previously, Carmel-by-the-Sea does not have a majority-minority population and thus cannot be labelled as a R/ECAP. Figure A-9 15 From Goetz, E. G., Damiano, A., & Williams, R. A. (2019). Racially Concentrated Areas of Affluence: A Preliminary Investigation. Cityscape: A Journal of Policy Development and Research, 21(1), 99–124 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-16 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 shows that less than or equal to 20 percent of the City’s population is non-White. Though Carmelby-the-Sea’s percentage of exclusively White population and AMI are higher than the County-wide average, the median income in the City is not high enough for the jurisdiction to be considered an RCAA16.
Figure A-7 R/ECAP by Census Tract, Carmel-by-the-Sea, 2009-2013 SOURCE: California Department of Housing and Community Development, AFFH Data Viewer 16 To be considered an RCAA, census tracts must have a Location Quotient (LQ) of more than 1.25 and a median income 1.5 times higher than the COG AMI or 1.5 times higher than the State AMI, whichever is lower. In this case, Carmel’s median income would need to be 1.5 times greater than the State AMI of $69,021.
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-17 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-8 RCAAs by Census Tract, Carmel-by-the-Sea, 2015-2019 SOURCE: California Department of Housing and Community Development, AFFH Data Viewer Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-18 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-9 Percent Non-White by Block Group, Carmel-by-the-Sea, 2018 SOURCE: California Department of Housing and Community Development, AFFH Data Viewer Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-19 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Employment
Employment characteristics can significantly impact the housing needs and trends of a community from income and wage scale to job location and industry. Employment and income are determinates of a population’s ability to purchase housing including the type of housing and size, both of which can induce negative effects such as overpayment and overcrowding. Table A-4 summarizes projected employment growth for Carmel-by-the-Sea, the County, and nearby cities from 2015- 2045.
Table A-4 Employment Growth Forecast by Jurisdiction, 2015-2045 Jurisdictions Population Change
2015 - 2045
2015 2020 2025* 2030 2035* 2040* 2045* Numeric Percent
Monterey County 225,268 243,015 245,054 249,613 253,918 258,553 263,437 38,169 17% Carmel-by-the-Sea 3,353 3,566 3,593 3,674 3,752 3,833 3,915 562 17% Del Rey Oaks 705 748 753 774 794 815 834 129 18%
Pacific Grove 7,470 8,016 8,061 8,152 8,244 8,343 8,445 975 13% SOURCE: AMBAG Regional Growth Forecast, 2022
NOTE: *Projected growth values
According to the AMBAG 2022 Regional Growth Forecast, Carmel-by-the-Sea was projected to experience an employment growth of 17 percent (562 new jobs) between 2015-2045. This projected employment growth mirrors the County (17 percent) and is 4 percent higher than Pacific Grove (13 percent), but reflects 1 percent lower than Del Rey Oaks (18 percent). This projected increase in job growth presents an opportunity for cities to construct additional housing options for the existing and future workforce.
Table A-5 shows 2010 and 2019 employment data for Carmel-by-the-Sea by sector. Key findings in employment data include the following:
Education services, healthcare, and social assistance industries were the largest employers of Carmel-by-the-Sea (28 percent) in both 2010 and 2019, followed by arts, entertainment, recreation, accommodation, and food services (19 percent and 15 percent, respectively); Information industries experienced the greatest increase between 2010 and 2019 (585 percent), followed by construction (276 percent);
Five sectors experienced drastic declines in employment between 2010 and 2019 including finance and insurance, real estate, and rental leasing (137 percent), professional, scientific, management, and administrative services (61 percent), public administration (54 percent), arts, entertainment, recreation, accommodation and food services (35 percent), and education services, healthcare, and social assistance (20 percent); Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-20 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Wholesale trade (2 percent) and agriculture, forestry, fishing and hunting, and mining (0 percent) industries experienced the least amount of growth; and
Overall, there was a 19 percent decrease in employment for Carmel-by-the-Sea residents between 2010 and 2019.
Table A-5 Employment by Sector, Carmel-by-the-Sea, 2010 and 2019 Industry Sector
2010 2019 Percent
Change
2010-2019 People
Employed
Percent of City
Employment
People
Employed
Percent of City
Employed
Agriculture, forestry, fishing and
hunting, and mining 0 0% 0 0% 0%
Construction 25 1% 94 7% 276%
Manufacturing 40 2% 67 5% 68%
Wholesale Trade 0 0% 26 2% 2%
Retail Trade 247 14% 213 15% 14%
Transportation and warehousing,
and utilities 63 4% 95 7% 51%
Information 14 1% 96 7% 585%
Finance and insurance, real
estate, and rental leasing 172 10% 73 5% -137%
Professional, scientific,
management, and administrative
services
273 15% 106 7% -61%
Education services, healthcare,
and social assistance 493 28% 394 28% -20%
Arts, entertainment, recreation,
accommodation, and food services 330 19% 216 15% -35%
Public Administration 112 6% 52 4% -54%
Total Employment 1,769 100% 1,432 100% -19%
SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2010, 2019 Balance of Jobs to Workers
A city houses employed residents who either work in the community where they live, or work elsewhere in the region. Conversely, a city may have job sites that employ residents from the same city but more often employ workers commuting from outside of it. One measure of local imbalance is the relationship between workers and jobs. A city with a surplus of workers, “exports” workers to other parts of the region, while a city with a surplus of jobs must conversely “import” them.
Smaller cities will typically have more employed residents than jobs and will export workers as a result, while larger cities tend to have a surplus of jobs and will import workers. To some extent, the Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-21 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 regional transportation system is set up for this flow of workers to the region’s core job centers. At the same time, as the housing affordability crisis has illustrated, local imbalances may be severe, where local jobs and worker populations are out of sync at a sub-regional scale.
A community may offer employment for relatively low-income workers but have relatively few housing options for those workers. Conversely, it may house residents who are low-wage workers but offer few employment opportunities for them. Such relationships may cast extra light on potentially pent-up demand for housing in particular price categories. A relative surplus of jobs relative to residents in a given wage category suggests the need to import those workers, while conversely, surpluses of workers mean the community will export those workers to other jurisdictions. Such flows are not inherently bad, though over time, sub-regional imbalances may appear.
Figure A-10 illustrates earnings of workers in comparison to worker place of residence and place of work in Carmel-by-the-Sea. In 2019, Carmel-by-the-Sea had more low-wage jobs than low-wage residents (where low-wage refers to jobs paying less than $25,000). At the high end of the wage spectrum (i.e., wages over $75,000 per year), the City had more high-wage jobs than high-wage residents.17 This indicates the City is a net-importer of workers for both low- and high-wage jobs. It should be noted that the minimum wage has increased since 2019, from $12 to $15.50, thus increasing the annual incomes of full-time workers as well.
Figure A-10 Worker Earnings by Place of Residence & Place of Work, Carmel-by-the-Sea, 2019
SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
17 The source table is top-coded at $75,000, precluding more fine-grained analysis at the higher end of the wage spectrum.
48 148
213
328
621
457
1,108
1,226
509
703
0 200
400
600
800
1,000
1,200
1,400
Less than
$9,999
$10,000 to
$24,999
$25,000 to
$49,999
$50,000 to
$74,999
$75,000 or
more
Workers
Wage Group
Place of Residence
Place of Work
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-22 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 According to U.S. Census Bureau data reported in a Housing Feasibility Study for the City of Carmel-by-the-Sea by ECONorthwest,
18 a mere 2.6 percent of workers live and work in Carmel-bythe-Sea, while approximately half of all workers live within 10 miles of the City and 26 percent commute from more than 25 miles away.
19 Concentrations in hospitality and leisure services may create obstacles for local workers that earn lower-incomes and cannot afford to live in the community. Such imbalances of jobs to housing impacts an individual’s ability to integrate into the community due to long distance travel, excessive costs of travel, and reduced personal time.
Unemployment rates20 are essential to understanding the affordability needs of a community when determining housing options. Table A-6 provides a breakdown of unemployment rates for Carmelby-the-Sea, the County, and nearby cities. Compared to the County and nearby cities, Carmel-bythe-Sea has the lowest unemployment rate with less than 1 percent of unemployed residents. This indicates an approximate 4.8 percent less than the County, 5 percent less than the Del Rey Oaks, and 3.8 percent less than Pacific Grove.
Table A-6 Unemployment Rate, Carmel-by-the-Sea, 2019
Jurisdictions Unemployment Rate
Monterey County 4.9%
Carmel-by-the-Sea 0.1%
Del Rey Oaks 5.1%
Pacific Grove 3.9%
SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
The Monterey Bay Area approved Regional Housing Needs Assessment (RHNA) Methodology is broken down into four income levels:
Very Low Income (50 percent or less of the County’s median income); Low Income (50-80 percent of the County’s median income); Moderate Income (80-120 percent of the County’s median income); and Above moderate Income (120 and above the County’s median income).
Carmel-by-the-Sea’s RHNA allocation is presented below in Table A-7. 18 From ECONorthwest, Housing Feasibility Study, 2023 19 From U.S. Census Bureau Longitudinal Employer-Household Dynamics Data 20 The term unemployment refers to a person who is actively searching for employment but is not able to find work.
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-23 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Table A-7 Regional Housing Needs Allocation
Income Group Percentage of AMI Share
Extremely Low-Income21 <30 57
Very Low-Income <50 56
Low-Income 50-80 74
Moderate-Income 80-120 44
Above Moderate-Income 120+ 118
Total 349
SOURCE: City of Carmel-by-the-Sea, 2023
In Monterey County, the median household income in 2019 was an estimated $71,015 compared to Carmel-by-the-Sea at $98,188. Table A-8 lists occupations by mean salary in Monterey County.
According to Table A-8, the occupations that fall below 50 percent of the median income are Food Preparation and Serving-Related Occupations; Personal Care and Services Occupations; and Farming, Fishing, and Forestry Occupations. The majority of occupations in Monterey County have an average income that is low (50-80 percent AMI) or very low (<50 percent AMI). If applied to Carmel-by-the-Sea, it should be anticipated that affordable housing is needed to accommodate potential low- and very low-income households.
Household Characteristics
Characteristics of a household include household type and size, income, affordability, and special needs groups. According to HCD, a household is defined as “All persons who occupy a housing unit. The occupants may be a single family, on person living alone, two or more families living together, or any groups of related or unrelated persons who share living arrangements.” Large families, single parent households, female-headed households, or extremely low- and low-income households may be classified as Special Needs groups. Special Needs groups are identified due to the unique nature of household characteristics and potential housing challenges faced. The following section examines household characteristics trends in Carmel-by-the-Sea and the region.
Table A-9 provides an overview of the projected housing units needed in Monterey County, Carmelby-the-Sea, and nearby cities, Del Rey Oaks and Pacific Grove.22 Carmel-by-the-Sea is forecast to have a household growth of approximately 1 percent by 2045 – an increase of 42 housing units.
Compared to the County, this reflects 18 percent less projected growth and 2 percent less growth than Pacific Grove. Of the nearby cities, the City of Del Rey Oaks has the highest projected increase in housing unit growth at 61 percent.
21 Extremely low-income RHNA is found as a subset within the very low-income category for all other tables in this document.
22From AMBAG Regional Growth Forecast, 2022
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-24 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Table A-8 Occupations by Mean Salary, Monterey County, 2019 Occupation Salary
Management Occupations $117,738
Business and Financial Operations Occupations $78,900
Computer and Mathematical Occupations $96,980
Architecture and Engineering Occupations $92,554
Life, Physical, and Social Science Occupations $84,516
Community and Social Services Occupations $59,549
Legal Occupations $103,094
Education, Training, and Library Occupations $69,296
Arts, Design, Entertainment, Sports, and Media Occupations $56,599 Healthcare Practitioners and Technical Occupations $115,486 Healthcare Support Occupations $42,625
Protective Service Occupations $70,161
Food Preparation and Serving-Related Occupations $30,127 Building and Grounds Cleaning and Maintenance Occupations $36,330 Personal Care and Service Occupations $31,984
Sales and Related Occupations $42,099
Office and Administrative Support Occupations $44,239
Farming, Fishing, and Forestry Occupations $29,901
Construction and Extraction Occupations $60,870
Installation, Maintenance, and Repair Occupations $54,180 Production Occupations $41,905
Transportation and Material Moving Occupations $37,144
SOURCE: California Employment Development Division, Occupational Wage data, 2019 Table A-9 Housing Forecast by Jurisdiction, 2015-2045
Jurisdictions Population Change
2015 - 2045
2015 2020 2025* 2030* 2035* 2040* 2045* Numeric Percent Monterey County 139,177 141,764 146,716 153,852 159,100 162,612 165,328 26,151 19% Carmel-by-the-Sea 3,417 3,437 3,437 3,442 3,450 3,453 3,459 42 1% Del Rey Oaks 741 741 762 809 848 1,052 1,195 454 61%
Pacific Grove 8,184 8,201 8,214 8,267 8,336 8,400 8,463 279 3% SOURCE: AMBAG Regional Growth Forecast, 2022
NOTE: *Projected growth values
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-25 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Household Type and Size
Figure A-11 illustrates household characteristics by type in 2019 for Carmel-by-the-Sea, the County, and nearby cities, Del Rey Oaks and Pacific Grove. In Carmel-by-the-Sea, the largest household type was married-couple family households (47 percent) followed by single-person households (40 percent). This is consistent with the County and nearby cities. Carmel-by-the-Sea has the lowest percentage of female-headed households (6 percent) compared to the County (13 percent), Del Rey Oaks (7 percent), and Pacific Grove (9 percent).
Figure A-11 Household by Type by Jurisdiction, 2019
SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
Figure A-12 illustrates household changes between 2010-2019 in Carmel-by-the-Sea. Over the last decade, married-couple family households have remained the largest household type in the City followed by single-person households. Since 2015, married-couple family households have begun declining, while single-person households have increased. Female-headed households experienced the most fluctuation between 2010-2019, showing a steady increase between 2010-2013, then slowly decreasing through 2019 to 6 percent (7 percent decrease between 2013-2019). Male-headed households have slightly increased since 2010 from zero to 2 percent in 2019. These changes in household type over time indicate a need for housing options that appeal to both family-sized and smaller-sized households (keeping affordability in mind).
13.3%
5.9% 6.9% 8.8%
6.5%
2.0% 4.5% 2.8%
52.5%
46.9%
51.4% 45.9%
6.1%
5.2%
3.7%
6.4%
21.6%
40.0%
33.5% 36.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Monterey County Carmel-by-the-Sea Del Rey Oaks Pacific Grove Single-person Households
Other Non-Family Households
Married-couple Family Households
Male-headed Households
Female-Headed Households
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-26 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-12 Changes in Household Type, Carmel-by-the-Sea, 2010-2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2010-2019 NOTE: Non-family households include unrelated persons living in one housing unit.
Figure A-13 illustrates households by household size for Carmel-by-the-Sea, the County, and nearby cities. Carmel-by-the-Sea’s largest household type according to size is 2-person households (42 percent) followed by 1-person households (40 percent). This is consistent with findings in Figure A-12, with married-couple family households remaining the largest household type since 2010 followed by single-person households. This reflects a demand for affordable housing units appealing to married-couple and single-person households.
Figure A-13 Households by Household Size by Jurisdiction, 2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
8.8% 10.5% 11.9% 13.0% 11.0% 11.1% 11.0% 10.7% 6.8% 5.9%
0.0% 1.3% 1.5% 1.1% 1.1% 2.1% 1.2% 1.3%
0.9% 2.0%
43.6%
44.4% 46.4%
50.9% 50.9% 52.4% 49.3% 46.7% 49.9% 46.9%
3.6%
2.5%
3.8%
3.7% 2.6% 2.0%
2.8% 3.6% 3.8% 5.2%
44.0% 41.3% 36.4% 31.3% 34.5% 32.4% 35.7% 37.6% 38.5% 40.0% 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Single-person Households
Other Non-Family Households
Married-couple Family Households
Male-headed Family Households
Female-Headed Family Households
40.0%
23.9%
33.5% 36.0%
41.5%
31.1%
38.2% 36.2%
14.8%
34.0%
21.4% 22.2%
3.6% 11.0% 6.9% 5.5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Carmel-by-the-Sea Monterey County Del Rey Oaks Pacific Grove 5-Person or More Household
3-4-Person Household
2-Person Household
1-Person Household
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-27 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Household Income
Affordability is a key component in determining the housing needs of a community. Household income determines the ability of a household to purchase or rent a housing unit. However, fluctuating household incomes may result in the need to spend disproportionate amounts of income on housing costs, referred to as overpayment or cost burden. As a result, this may also lead to overcrowding and/or substandard living conditions.
The following are income categories based on area median income (AMI) according to HCD:
Extremely low-income: households earning 0-30 percent of AMI; Very low-income: households earning 30-50 percent of AMI; Low-income: households earning 50-80 percent of AMI;
Moderate-income: households earning 80-100 percent of AMI; and Above-moderate income: households earning 100-120 percent of AMI.
Government Code Section 65583(a) defines extremely low-income households as earning 30 percent or below area median income, and considers them as a subset of the very low-income category. The extremely low-, very low-, and low-income groups are referred to as lower-income. In Carmel-bythe-Sea 28 percent of households are considered lower-income.
Table A-10 summarizes households by income category in Carmel-by-the-Sea in 2019. Above moderate-income households make up the majority of households in the City (62 percent) followed by lower-income households (28 percent). Approximately 7 percent of households in Carmel-bythe-Sea identify as extremely low-income. This reflects a need for more affordable housing in the City, and in tandem with Figure A-12 and Figure A-13 findings, it is likely the demand for singleperson households is accompanied by a need for affordable options.
Table A-10 Households by Income Category, Carmel-by-the-Sea, 2019 Income Category (% of County MFI) Households Percent
Extremely Low-Income (30% MFI or less) 140 7%
Very Low-Income (30-50% MFI) 170 9%
Low-Income (50-80% MFI) 235 12%
Moderate-Income (80-100% MFI) 185 10%
Above Moderate-Income (>100% MFI) 1,200 62%
Total 1,930 100%
SOURCE: Department of Housing and Urban Development (HUD) Comprehensive Housing Affordability Strategy (CHAS), 2015-2019 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-28 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-14 illustrates the median household income in Carmel-by-the-Sea, the County, and nearby cities in 2019. Carmel-by-the-Sea’s median household income was $98,188 – approximately $27,173 higher than the County ($71,015). The City of Del Rey Oaks had the second highest median household income at $95,000 followed by Pacific Grove at $88,250. Understanding Carmel-by-theSea’s median household income determines what income category households identify with and what affordability levels look like for the community.
Figure A-14 Median Household Income by Jurisdiction, 2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
Figure A-15 illustrates median household income across Carmel-by-the-Sea. According to the HCD AFFH Data Viewer, Carmel-by-the-Sea households experience variation in median household income based on location. Households located in the center of the City reportedly earn less than the City’s annual median income ($98,188) and households located in the north and south earn more (>$87,100 - <125,000).
Figure A-16 provides a breakdown of 2019 incomes by category in Carmel-by-the-Sea.
Approximately 43 percent of households are earning $100,000 or more (more than the City’s annual median income). Conversely, 26 percent households earn an annual income less than $50,000 ($48,188 less than the City’s annual median income). Approximately 41 percent of households are earning below the City’s annual median income, of which 10 percent earn less than $25,000. $71,015.00
$98,188.00 $95,000.00
$88,250.00
$-
$20,000.00
$40,000.00
$60,000.00
$80,000.00
$100,000.00
$120,000.00
Monterey County Carmel-by-the-Sea Del Rey Oaks Pacific Grove Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-29 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-15 Median Income by Block Group, Carmel-by-the-Sea, 2015-2019 SOURCE: California Department of Housing and Community Development, AFFH Data Viewer Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-30 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-16 Income by Category, Carmel-by-the-Sea, 2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
The household income characteristics in Carmel-by-the-Sea reveal a demand for the development of more affordable housing options that appeal to both lower-income and above-moderate households.
Carmel-by-the-Sea is comprised primarily of above moderate-income households (62 percent), most of which identify as married-couple families (47 percent). Nonetheless, 28 percent of households are lower-income and 40 percent of households identify as single-persons. Affordable housing in Carmel-by-the-Sea must accommodate these households as well despite their non-majority makeup.
Figure A-17 illustrates housing by tenure in Carmel-by-the-Sea, the County, and nearby cities. Fiftyseven (57) percent of households in Carmel-by-the-Sea are owners and 43 percent are renters. This reflects an approximate 6 percent higher owner household population than the County (51 percent), 11 percent higher than Pacific Grove (46 percent), and 14 percent lower than Del Rey Oaks (71 percent).
10%
8%
8%
15%
11%
12%
11%
20% Less than $25,000
$25,000 - $34,999
$35,000 - $49,999
$50,000 - $74,999
$75,000 - $99,999
$100,000 - $149,999
$150,000 - $199,999
$200,000 or more
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-31 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-17 Housing Tenure by Jurisdiction, 2019
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
A.3 Disproportionate Housing Needs
Housing Problems and Severe Housing Problems
The following section details housing problems and severe housing problems in Carmel-by-the-Sea according to the Census Bureau Comprehensive Housing Affordability Strategy (CHAS).
Disproportionate Housing Needs
“Disproportionate housing needs generally refers to a condition in which there are significant disparities in the proportion of members of a protected class experiencing a category of housing need when compared to the proportion of members of any other relevant groups, or the total population experiencing that category of housing need in the applicable geographic area. For purposes of this definition, categories of housing need are based on such factors as cost burden and severe cost burden, overcrowding, homelessness, and substandard housing conditions.” SOURCE: California Department of Housing and Community Development Guidance, 2021, page 39.
The CHAS data set provides in-depth analysis on housing needs by income level according to types of households. According the CHAS, housing problems are defined as having one or more of the following variables:
Incomplete kitchen facilities;
Incomplete plumbing facilities;
More than one person per room; and
Cost burden greater than 30 percent.
57% 51%
71%
46%
43% 49%
29%
54%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Carmel-by-the-Sea Monterey County Del Rey Oaks Pacifc Groves Renter Occupied
Owner Occupied
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-32 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Severe housing problems are defined as having one or more of the following variables:
Incomplete kitchen facilities;
Incomplete plumbing facilities;
More than 1.5 persons per room; and
Cost burden greater than 50 percent.
Additionally, CHAS defines cost burden as the ratio of housing costs to household income. The following defines cost burden by renter and owner:
Renter Cost Burden: gross rent (contract rent plus utilities); and Owner Cost Burden: select monthly owner costs including mortgage payment, utilities, association fees, insurance, and real estate taxes.
Figure A-18 and Figure A-19 illustrate housing problems by tenure and severe housing problems by tenure in Carmel-by-the-Sea during 2019. Approximately 60 percent of renter households have at least one of four housing problems and 36 percent have at least one of four severe housing problems. In contrast, 47 percent of owner households experience at least one housing problem and 25 percent have at least one severe housing problem.
Figure A-18 Housing Problems by Tenure, Carmel-by-the-Sea, 2015-2019 SOURCE: U.S. Census Bureau, CHAS Data, 2015-2019
NOTE: The four housing problems are: incomplete kitchen facilities, incomplete plumbing facilities, more than 1 person per room, and cost burden greater than 30%.
47%
60%
53%
40%
0% 20% 40% 60% 80% 100%
Owner %
Renter %
Household has at least 1 of 4
Housing Problems
Household has none of 4
Housing Problems OR cost
burden not available, no other
problems
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-33 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-19 Severe Housing Problems by Tenure, Carmel-by-the-Sea, 2015-2019 SOURCE: U.S. Census Bureau, CHAS Data, 2015-2019
NOTE: The four housing problems are: incomplete kitchen facilities, incomplete plumbing facilities, more than 1.5 person per room, and cost burden greater than 50%.
Overcrowding
Understanding the prevalence of overcrowded households within a community helps determine the need for affordable and adequately sized housing units for the community. Overcrowding is defined as a household with more than one occupant per room excluding bathrooms and kitchens. Units with more than 1.5 persons per room are considered severely overcrowded. Overcrowding may occur due to a lack of available affordable and/or adequately sized housing units. Cultural norms and customs combined with low-income or lack of adequately size housing units can result in overcrowding too. For example, in Asian culture, households are often comprised of multigenerations. If this custom is also compounded by low-income or lack of adequately sized housing units overcrowding may occur.
Figure A-20 illustrates overcrowding by severity in Carmel-by-the-Sea, the County, and nearby cities in 2019. The City of Del Rey Oaks households experience the least amount of overcrowding (0.8 percent) and no severe overcrowding, compared to Carmel-by-the-Sea households that experience zero percent moderate overcrowding, but 6 percent severe overcrowding. Monterey County has a higher overall percentage of households that experience overcrowding (9 percent) and severe overcrowding (5 percent) compared to Carmel-by-the-Sea. 25%
36%
75%
64%
0% 20% 40% 60% 80% 100%
Owner %
Renter %
Household has at least 1 of 4
Housing Problems
Household has none of 4 Housing
Problems OR cost burden not
available, no other problems
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-34 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-20 Overcrowding by Severity by Jurisdiction, 2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
Figure A-21 illustrates overcrowding by tenure and severity in Carmel-by-the-Sea during 2019.
Renter households in Carmel-by-the-Sea experience 8 percent more overcrowding than owner households. While renter households do not experience overcrowding (more than 1-person per room), 10 percent experience severe overcrowding (more 1.5-persons per room). Similarly, owner households in Carmel-by-the-Sea do not experience overcrowding, but 2 percent do experience severe overcrowding.
Figure A-21 Overcrowding by Tenure and Severity, Carmel-by-the-Sea, 2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
94%
86%
99%
92%
0%
9%
1%
3%
6% 5%
0%
5%
75%
80%
85%
90%
95%
100%
Carmel-by-the-Sea Monterey County Del Rey Oaks Pacific Grove More than 1.5 Occupants per Room
1.0 to 1.5 Occupants per Room
1.0 or Less Occupants per Room
98%
90%
0%
0%
2%
10%
84%
86%
88%
90%
92%
94%
96%
98%
100%
Owner Occupied Renter Occupied
More than 1.5 Occupants
per Room
1.01 to 1.5 Occupants per
Room
1.0 or Less Occupant per
Room
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-35 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-22 illustrates overcrowded households in Carmel-by-the-Sea. According to the HCD AFFH Data Viewer, Carmel-by-the-Sea households experience no variation in overcrowding based on location. In the City, overcrowding rates are less than 8.2 percent.
Figure A-22 Overcrowded Households, Carmel-by-the-Sea
SOURCE: California Department of Housing and Community Development, AFFH Data Viewer Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-36 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Cost Burden
According to HCD, overpayment or cost burden is measured as households spending more than 30 percent of their gross income including utilities for housing; severe overpayment or severe cost burden is measured as households spending 50 percent or more of their gross income for housing.
For the duration of this report, overpayment will be referred to as cost burden.
The cost burden rates of owners and renters in a community provide insight to housing needs such as, the affordability of the local housing market and the availability of housing units that accommodate household needs like size and housing type. Additionally, federal and state agencies examine cost burden to determine a community’s need for housing assistance.
Figure A-23 illustrates cost burden severity in Carmel-by-the-Sea, the County, and nearby cities.
Carmel-by-the-Sea household cost burden rates are similar to the County. In Carmel-by-the-Sea, 46 percent of households experience some level of cost burdened, of which 23 percent are severely cost burdened, while the County has a cost burden rate of 22 percent and a severe cost burden rate of 18 percent. The cities of Del Rey Oaks and Pacific Grove have slightly lower rates of cost burden overall with 67 percent and 61 percent of households experiencing no cost burden, respectively.
Overall, the City of Del Rey Oaks has the lowest percent of households experiencing any type of cost burden. It is important to relate Carmel-by-the-Sea’s approximate 46 percent cost burden with its 10 percent population of overcrowded renter households, as these may be indicators of an unaffordable and homogenous local housing market.
Figure A-23 Cost Burden Severity by Jurisdiction, 2015-2019 SOURCE: U.S. Census Bureau, CHAS Data, 2015-2019
54% 59%
67% 61%
23%
22%
21%
21%
23% 18%
11%
16%
0% 1% 1% 2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Carmel-by-the-Sea Monterey County Del Rey Oaks Pacific Grove 0%-30% of Income Used for Housing 30%-50% of Income Used for Housing 50%+ of Income Used for Housing Not Computed
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-37 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-24 illustrates cost burden by tenure in Carmel-by-the-Sea. Renter and owner households experience similar levels of cost burden. Renter households experience 24 percent cost burden and 23 percent severe cost burden (47 percent total), whereas owner households experience 23 percent cost burden and 22 percent severe cost burden (45 percent total). This reflects a 1 percent difference between cost burden and severe cost burden for renter and owner households, respectively.
Figure A-24 Cost Burden by Tenure, Carmel-by-the-Sea, 2015-2019 SOURCE: U.S. Census Bureau, CHAS Data, 2015-2019
Figure A-25 illustrates cost burden of home owners in Carmel-by-the-Sea. According to the HCD AFFH Data Viewer, the highest rates of cost burden among home owners in Carmel-by-the-Sea are concentrated in the central and southern regions of the City. In these regions, 80 percent of owner households experience cost burden. In the northern region of the City, 40-60 percent of owner households experience cost burden.
Figure A-26 illustrates cost burden of renters in Carmel-by-the-Sea. When analyzing concentrations of cost burden among renter-occupied households in Carmel-by-the-Sea, there is no variation based on location. Between 40-60 percent of renter-households experience cost burden across the City. 55% 52%
23% 24%
22% 23%
0% 0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Owner Occupied Renter Occupied
Not Computed
50%+ of Income Used for
Housing
30%-50% of Income Used for
Housing
0%-30% of Income Used for
Housing
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-38 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-25 Cost Burden by Home Owners, Carmel-by-the-Sea, 2015-2019 SOURCE: California Department of Housing and Community Development, AFFH Data Viewer Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-39 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-26 Cost Burden by Renter Households, Carmel-by-the-Sea, 2015-2019 SOURCE: California Department of Housing and Community Development, AFFH Data Viewer Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-40 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 A.4 Special Needs Groups
Special needs groups are those that may face particular challenges in obtaining adequate housing due to inherent circumstances such as age, disabilities, household size, income level, age, and occupation.
Large families, single parent households, female-headed households, or extremely low- and lowincome households, and homeless persons may be classified as Special Needs groups. Special Needs groups are identified due to the unique nature of household characteristics and potential housing challenges faced. Table A-11 provides a summary of special needs groups in Carmel-by-the-Sea.
Table A-11 Overview of Special Needs Groups
Special Needs Groups Count Percent of Total
Households
Percent of Total
Population
Total population 3,830 -- 100%
Total occupied units (households) 1,925 100% --
Extremely Low-income (0-30% of HAMFI)
households 140 households 7% --
Total Senior Population 1,657 persons -- 43%
Senior Owner-Households 763 households 40% --
Senior Renter-Households 283 households 15% --
Persons with Disabilities23 406 persons -- 12%
Persons with Developmental
Disabilities1 <70 persons -- --
Large Households 70 households 4% --
Single-Parent Households 153 households 8% --
Single-Parent, Female Headed
Households with Children (under 18)
below poverty line
0 households -- --
People Living in Poverty 111 persons -- 3%
Farmworkers2 26,929 persons -- --
Migrant Farmworkers 4,972 persons -- --
Seasonal Farmworkers 12,123 persons -- --
Permanent Farmworkers 14,806 persons -- --
Persons Experiencing Homelessness3 1 person -- --
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019; U.S. Census Bureau CHAS 2015-2019 Data; USDA Statistics Services; California Department of Developmental Services, Consumer Count by California ZIP Code and Residence Type (2021).
NOTE: 1. Data provided by California Department of Developmental Services and taken at the ZIP code level.
2. Agriculture, forestry, fishing and hunting and mining industry. Farmworker data is taken of the population 16 years and older. Data provided by USDA Statistics Services and taken at the County level for 2017; includes permanent and seasonal farmworkers.
3. Total results from 2022 Monterey County Homeless County and Survey Comprehensive Report. 23 This estimate uses U.S. Census Bureau ACS 5-Year Estimates for 2021.
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-41 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Extremely Low-Income Households and Poverty Status
Extremely low-income (ELI) households are those that earn less than 30 percent of the median family income (MFI). Very low-income households are those that earn 50 percent of less of the MFI.
Extremely low-income households typically face a combination of housing challenges related to income status, family size/type, disability status, access to housing opportunities, and other household characteristics. Additionally, ELI households are more likely to experience overcrowding, cost burden, and substandard housing conditions. Extremely low-income households are typically minimumwage workers, disabled persons, farmworkers, and seniors on fixed incomes.
Table A-12 provides a breakdown of extremely low-income households in Carmel-by-the-Sea. The 2015-2019 Comprehensive Housing Affordability Strategy (CHAS) data indicates there were approximately 140 ELI households (7 percent of total households) in Carmel-by-the-Sea. Of the extremely lowincome households in Carmel-by-the-Sea, 29 percent are renter-occupied households and 71 percent are owner-occupied households, or 2 percent and 5 percent of all households, respectively.
When analyzing cost burden of ELI households, approximately 120 ELI households experience severe cost burden (paying more than 50 percent of median gross income on housing) and 140 experience moderate cost burden (paying more than 30 percent of median gross income on housing). Of the ELI households experiencing some form of cost burden, the majority are owneroccupied households.
Data for overcrowding by income level is not available for Carmel-by-the-Sea. However, because owner-occupied households represent the majority of ELI households and experience higher rates of cost burden, overcrowding, substandard housing issues it may be assumed that ELI households experience overcrowding.
The projected RHNA for ELI households was based on the assumption that 50 percent of very lowincome households qualify as extremely low-income households. The very low-income housing need is 113 housing units, of which the City estimates 57 housing units will accommodate the extremely low-income housing need.
It seemed really scary when
we first looked at the [RHNA
numbers] and the idea of
trying to squeeze more into
this beautiful place that’s so
unique [but] I really like the
idea of coming at this from a
compassionate and creative
perspective. I really resonate
with that.
November 17, 2023
Housing Ad Hoc
Committee Community
Meeting Attendee
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-42 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Table A-12 Extremely Low-Income Households, Carmel-by-the-Sea, 2015-2019 Households Number Percentage of Total
Households
Total occupied units (households) 1,925 100%
Total Lower-income (0-80% of HAMFI) households 545 28%
Extremely Low-income (0-30% of HAMFI) households 140 7% Extremely Low-income renters 40 2%
Extremely Low-income owners 100 5%
Lower-income households paying more than 50% 270 14%
Extremely Low-income paying more than 50% 120 6%
ELI Renter HH severely cost burdened 20 1%
ELI Owner HH severely cost burdened 100 5%
Lower-income households paying more than 30% 430 22%
Extremely Low-income paying more than 30% 140 7%
ELI Renter HH moderately cost burdened 40 2%
ELI Owner HH moderately cost burdened 100 5%
Lower-income households experiencing 1 of 4 Housing Problems 450 23% Extremely Low-income households experiencing 1 of 4 Housing Problems 140 7% ELI Renter HH experiencing 1 of 4 Housing Problems 40 2% ELI Owner HH experiencing 1 of 4 Housing Problems 100 5% SOURCE: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) 2015-2019.
NOTE: MFI = HUD Median Family Income, this is the median family income calculated by HUD for each jurisdiction, to determine Fair Market Rents (FMRs) and income limits for HUD programs. MFI will not necessarily be the same as other calculations of median incomes (such as Census number), due to a series of adjustments that are made.
The four housing problems are: incomplete kitchen facilities, incomplete plumbing facilities, more than 1 person per room, and cost burden greater than 30%. ***Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities). For owners, housing cost is "select monthly owner costs", which includes mortgage payment, utilities, association fees, insurance, and real estate taxes.
In 2019, approximately 111 persons were identified as living below the poverty line.24 Figure A-27 illustrates the percent of the population in Carmel-by-the-Sea living below the poverty line in 2019 by race and ethnicity. Despite being the smallest population in the City (comprising .1 percent of the population), the Black or African American population is estimated to have the highest rate of poverty (50 percent); however, the low sample size makes it difficult to draw conclusions about this population. In contrast, the non-Hispanic White population represents 87 percent of the total population and only 2 percent is living below the poverty line. The Hispanic or Latinx population experiences the second highest rate of poverty with 13 percent living below the poverty line. 24 From U.S. Census Bureau ACS 5-Year Estimate, 2019, Table S1701 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-43 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-27 Percent Living Below the Poverty Line by Race and Ethnicity, Carmel-by-the-Sea, 2019
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
NOTE: Race/Ethnicity represents percentage of the total population* To address the needs of ELI households, the City will adopt housing programs to facilitate the construction of affordable and supportive housing for ELI households. Policies that will directly impact ELI households in Carmel-by-the-Sea include:
Policy 3.1: Incentivize affordable housing development, with an emphasis on affordable housing built to accommodate Extremely Low-Income residents. Encourage the private sector to produce affordable housing;
Policy 4.1: Support energy and water conservation programs to reduce the consumption of these resources in housing and to reduce housing costs; and Policy 5.1: Support and enforce fair housing laws. Expand fair housing choice by promoting housing opportunities and removing impediments to fair housing.
All housing policies and programs can be found in full detail in Chapter 2 of the Housing Element.
Seniors
Seniors are identified as individuals 65 years and older. Senior households often experience a combination of factors that can make accessing or keeping affordable housing a challenge. They often live on fixed incomes and are more likely to have disabilities, chronic health conditions, and/or reduced mobility. Seniors who rent may be at even greater risk for housing challenges than those who own, due to income differences between these groups.
Hispanic or
Latinx
Other Race
or Multiple
Races
(Hispanic
and NonHispanic)
White,
NonHispanic
Asian
alone
Native
Hawaiian
and Other
Pacific
Islander
Black or
African
American
(Hispanic
and NonHispanic)
American
Indian or
Alaska
Native
(Hispanic
and NonHispanic)
Below Poverty Line 13.4% 0.0% 2.1% 0.0% 0.0% 50.0% 0.0% Race/Ethnicity* 8.2% 0.0% 86.5% 5.2% 0.0% 0.1% 0.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-44 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-28 illustrates the senior population in Carmel-by-the-Sea, the County, and nearby cities.
Compared to the County and nearby cities, Carmel-by-the-Sea has the highest senior population (43 percent), approximately 30 percent more than the County and 16 percent more than Pacific Grove.
Figure A-28 Senior Population by Jurisdiction, 2019
SOURCE: U.S. Census Bureau, 2019
NOTE: Senior population is defined as persons 65 years and older.
Figure A-29 illustrates senior housing by tenure in Carmel-by-the-Sea during 2019. Senior households in Carmel-by-the-Sea are primarily owners (73 percent). Similarly, the senior households of the County (73 percent) and nearby cities of Del Rey Oaks (91 percent) and Pacific Grove (68 percent) are majority owners.
Figure A-29 Senior Housing by Tenure, Carmel-by-the-Sea, 2019 SOURCE: U.S. Census Bureau, 2019
NOTE: Senior population is identified as persons 65 years and older. 43%
13%
23%
27%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Carmel-by-the-Sea Monterey County Del Rey Oaks Pacific Grove 73% 73%
91%
68%
27% 27%
9%
32%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Carmel-by-the-Sea Monterey County Del Rey Oaks Pacific Grove Renter
Owner
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-45 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-30 illustrates senior households by their income. 14 percent of Carmel-by-the-Sea’s senior households earn a yearly income of $200,000 or more). However, an estimated 61 percent of senior households earn less than the City’s median household income ($98,188).
Figure A-30 Senior Households by Income, Carmel-by-the-Sea, 2019 SOURCE: U.S. Census Bureau, 2019
NOTE: Senior population is identified as persons 65 years and older.
People with Disabilities
People with disabilities face additional housing challenges. Encompassing a broad group of individuals living with a variety of physical, cognitive and sensory impairments, many people with disabilities live on fixed incomes and are in need of specialized care, yet often rely on family members for assistance due to the high cost of care. When it comes to housing, people with disabilities are not only in need of affordable housing but accessibly designed housing, which offers greater mobility and opportunity for independence. Unfortunately, the need typically outweighs what is available, particularly in a housing market with such high demand. People with disabilities are at a high risk for housing insecurity, homelessness, and institutionalization, particularly when they lose aging caregivers.
Figure A-31 illustrates population by disability status in Carmel-by-the-Sea, the County, and nearby cities in 2021. Twelve (12) percent of the population in Carmel-by-the-Sea has some form of disability, which is on par with nearby cities. The cities of Del Rey Oaks and Pacific Grove each have a population of 13 percent and 12 percent, respectively, with a disability. The County has the lowest percentage of persons with a disability at 9 percent.
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-46 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-31 Population by Disability Status by Jurisdiction, 2021 SOURCE: U.S. Census Bureau, 2021
Over the last decade, the population of persons with disabilities has increased in Carmel-by-the-Sea.
Figure A-32 illustrates trends in persons with disabilities in Carmel-by-the-Sea between 2012-2021.
In 2014, the population of persons with disabilities began to steadily increase from 12 percent to its highest point at 22 percent in 2018. In 2019, the upward trend in persons with disabilities began to decline reaching 16 percent, and eventually hitting 12 percent in 2021. Overall, the population of persons with disabilities has increased 3 percent since 2012.
Figure A-32 Trends in Persons with Disabilities, Carmel-by-the-Sea, 2012-2021 SOURCE: U.S. Census Bureau, 2012-2021
88% 91% 87% 88%
12% 9% 13% 12%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Carmel-by-the-Sea Monterey County Del Rey Oaks Pacific Grove With a disability
No disability
91% 93%
88% 86% 84% 83%
78%
84% 85% 88%
9% 7%
12% 14% 16% 17%
22%
16% 15% 12%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
No disability
Disability
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-47 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Table A-13 provides an overview of disability by type and age in Carmel-by-the-Sea during 2021.
Hearing difficulty is the most widespread disability in Carmel-by-the-Sea (41 percent) with the highest concentration in persons 65 years of age and older. Self-care difficulty is the least common disability with 7 percent experiencing this in Carmel-by-the-Sea. Overall, seniors (persons aged 65+) makeup the largest demographic with a disability (50 percent).
Table A-13 Disability Status by Age, Carmel-by-the-Sea, 2021 Disability Type Under 18 18-64 65 and Over Total
Percent of
Population with
a Disability
Hearing Difficulty 20 0 305 325 41%
Vision Difficulty 20 0 50 70 9%
Cognitive Difficulty 0 29 46 75 9%
Ambulatory Difficulty 0 0 142 142 18%
Self-care Difficulty 0 0 56 56 7%
Independent Living Difficulty 0 0 130 130 16%
Total 40 29 729 798 100%
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2021
NOTE: These disabilities are counted separately and are not mutually exclusive, as an individual may report more than one disability. These counts should not be summed.
State law also requires Housing Elements to examine the housing needs of people with developmental disabilities. Developmental disabilities are defined as severe, chronic, and attributed to a mental or physical impairment that begins before a person turns 18 years old. This can include Down’s Syndrome, autism, epilepsy, cerebral palsy, and mild to severe mental retardation. Some people with developmental disabilities are unable to work, rely on Supplemental Security Income, and live with family members. In addition to their specific housing needs, they are at increased risk of housing insecurity after an aging parent or family member is no longer able to care for them.
Table A-14 shows the population with developmental disabilities by age in Carmel-by-the-Sea. In Carmel-by-the-Sea, of the 798 persons with a disability, approximately less than 70 have a developmental disability. Of these, less than 31 are children/young adults (i.e., under the age of 18) and less than 36 are adults.
Table A-15 shows the population with developmental disabilities by residence in Carmel-by-the-Sea.
The most common living arrangement for individuals with developmental disabilities in Carmel-bythe-Sea is the home of parent/family/guardian.
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-48 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Table A-14 Population with Developmental Disabilities by Age, Carmel-by-the-Sea, 2021 Age Group Number
Age Under 18 <31
Age 18+ <36
SOURCE: California Department of Developmental Services, Consumer Count by California ZIP Code and Age Group (2021).
NOTE: Universe: Population with developmental disabilities. Notes: The California Department of Developmental Services is responsible for overseeing the coordination and delivery of services to more than 330,000 Californians with developmental disabilities including cerebral palsy, intellectual disability, Down syndrome, autism, epilepsy, and related conditions. The California Department of Developmental Services provides ZIP code level counts. To get jurisdiction-level estimates, ZIP code counts were crosswalked to jurisdictions using census block population counts from Census 2010 SF1 to determine the share of a ZIP code to assign to a given jurisdiction.
Table A-15 Population with Developmental Disabilities by Residence, Carmel-by-the-Sea, 2021
Residence Type Number
Home of Parent/Family/Guardian <38
Foster/Family Home 0
Independent/Supported Living <11
Other 0
Community Care Facility <11
Intermediate Care Facility 0
SOURCE: California Department of Developmental Services, Consumer Count by California ZIP Code and Residence Type (2021).
NOTE: Universe: Population with developmental disabilities. Notes: The California Department of Developmental Services is responsible for overseeing the coordination and delivery of services to more than 330,000 Californians with developmental disabilities including cerebral palsy, intellectual disability, Down syndrome, autism, epilepsy, and related conditions. The California Department of Developmental Services provides ZIP code level counts. To get jurisdiction-level estimates, ZIP code counts were crosswalked to jurisdictions using census block population counts from Census 2010 SF1 to determine the share of a ZIP code to assign to a given jurisdiction.
Large Households
Large households are defined as households of five or more individuals. Large households often have different housing needs than smaller households. Household income and local housing markets can greatly impact a household’s ability to afford adequately sized housing. If a city’s rental housing stock does not include larger apartments, large households who rent could end up living in overcrowded conditions. Similarly, large households may experience overpayment as a result of a high housing market and limited availability.
Figure B-33 illustrates 2019 households by size and tenure in Carmel-by-the-Sea. The City has 70 large households, of which 57 percent are renter-occupied households. Owner-occupied households makeup the majority of 1-person and 2-person households, whereas renter-occupied households makeup the majority of all 3-5 person households. This combined with a total cost burden rate of 46 percent for renter households (Figure A-24), suggests it is likely that large households in Carmel-bythe-Sea may experience overcrowding and/or overpayment.
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-49 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-33 Households by Size and Tenure, Carmel-by-the-Sea, 2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
Single-Parent Households
Households headed by one person are often at greater risk of housing insecurity, particularly femaleheaded households, who may be supporting children or a family with only one income.
In Carmel-by-the-Sea, the largest proportion of households are married-couple family households at 47 percent, while female-headed households make up 6 percent, and male-headed households make up 2 percent of all households (Figure A-11). Figure A-34 shows single-parent households in Carmel-by-the-Sea, the County, and nearby cities. Compared to the County and nearby cities, Carmel-by-the-Sea’s ratio of single-parent households is on par. Carmel-by-the-Sea’s single-parent households are predominantly female-headed family households (75 percent). Male-headed family households makeup 25 percent.
Figure A-34 Single-Parent Households by Jurisdiction, 2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
59% 63%
43%
28%
41% 43%
37%
57%
72%
57%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1 Person
Household
2 Person
Household
3 Person
Household
4 Person
Household
5 Or More
Person
Household
Owner Occupied
Renter Occupied
79% 75% 79% 73%
21% 25% 21% 27%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Monterey County Carmel-by-the-Sea Del Rey Oaks Pacific Grove Male-headed Family Households
Female-Headed Family Households
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-50 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Over the last decade, male-headed family households have slightly increased in Carmel-by-the-Sea, while female-headed family households have decreased. Figure A-35 illustrates trends in singleparent households in Carmel-by-the-Sea between 2010-2019.25 Figure A-35 Trends in Single-Parent Households, Carmel-by-the-Sea, 2010-2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2010-2019 NOTE: This table reports female- and male-headed family households as a percentage of total households in Carmel-by-the-Sea.
During this period, male-headed households increased from zero percent in 2010 up to 2 percent by 2015. From 2016-2018, the male-headed family households remained at 1 percent until increasing to 2 percent by 2019. Comparatively, female-headed family households decreased a total of 3 percent between 2010-2019. From 2010-2013, female-headed family households steadily increased reaching its highest point at 13 percent in 2013. By 2014, the group experienced a 2 percent decrease and remained constant until 2018 when it began to decline, reaching 6 percent in 2019.
Female-headed households with children may face particular housing challenges, with pervasive gender inequality resulting in lower wages for women. Moreover, the added need for childcare can make finding a home that is affordable more challenging. In 2019, there were no single-parent households that fell in the Below Poverty Level category in Carmel-by-the-Sea.
Farmworkers
Across the state, housing for farmworkers has been recognized as an important and unique concern.
Farmworkers generally receive wages that are considerably lower than other jobs and may have temporary housing needs. Finding decent and affordable housing can be challenging, particularly in the current housing market.
25 The data reports female- and male-headed family household as a percentage of total households in Carmel-by-the-Sea. 9%
10%
12%
13%
11% 11% 11% 11%
7%
6%
0%
1% 1% 1% 1%
2%
1% 1% 1%
2%
0%
2%
4%
6%
8%
10%
12%
14%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Female-Headed Family Households
Male-headed Family Households
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-51 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 According to the U.S. Department of Agriculture Census of Farmworkers, the number of permanent farm workers in Monterey County has decreased since 2002, totaling 14,806 in 2017, and the number of seasonal farm workers has also decreased, totaling 12,123 in 2017. Figure A-36 shows hired farm labor in Monterey County between 2002-2017.
Figure A-36 Hired Farm Labor, Monterey County, 2002-2017 SOURCE: U.S. Department of Agriculture, Census of Farmworkers (2002, 2007, 2012, 2017), Table 7: Hired Farm Labor.
NOTES: Universe: Hired farm workers (including direct hires and agricultural service workers who are often hired through labor contractors). Farm workers are considered seasonal if they work on a farm less than 150 days in a year, while farm workers who work on a farm more than 150 days are considered to be permanent workers for that farm.
There are no agriculture uses within the City of Carmel-by-the-Sea. However, Carmel-by-the-Sea shares the responsibility for farmworker housing as farmworkers may work within 75 miles of agricultural land uses (including dairy, vineyards, and produce) and the City is within 75 miles of these uses.
Persons Experiencing Homelessness
Homelessness remains an urgent challenge in many communities across the state, reflecting a range of social, economic, and psychological factors. Rising housing costs result in increased risks of community members experiencing homelessness. Addressing the specific housing needs for the unhoused population remains a priority throughout the region, particularly since homelessness is disproportionately experienced by people of color, people with disabilities, those struggling with addiction and those dealing with traumatic life circumstances.
Table A-16 show changes in the homeless population between 2017-2022 in Carmel-by-the-Sea, the County and neighboring jurisdictions. According to the 2022 Monterey Homeless Count and Survey Comprehensive Report, Carmel-by-the-Sea has seen a decrease in homeless persons since 2017, totaling one person in 2022. Similarly, the Monterey Bay Area overall has seen a decrease in homeless populations with the exception of Seaside.
17,538
13,564
12,306
13,875
16,159 16,713
14,806
12,123
0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
Permanent Seasonal
Farm Workers
2002
2007
2012
2017
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-52 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Table A-16 Homeless Population by Jurisdiction, 2017-2022 Jurisdiction
Unsheltered Sheltered Total
2019-2022 % Change 2017 2019 2022 2017 2019 2022 2017 2019 2022 Monterey (City) 292 167 74 46 37 27 338 204 101 -50%
Carmel-by-the-Sea 16 6 1 0 0 0 16 6 1 *
Del Rey Oaks 111 0 2 0 0 0 111 0 2 *
Seaside 40 126 90 58 56 62 98 182 152 -16%
Pacific Grove 35 14 29 0 0 0 35 14 29 *
Total 509 315 198 104 93 89 613 408 287 -66%
SOURCE: 2022 Monterey Homeless Count and Survey Comprehensive Report NOTE: % change was not calculated when jurisdiction was below 25 individuals.
Table A-17, shows household type and shelter status in Monterey County in 2019. In Monterey County, the most common type of household experiencing homelessness are those without children in their care. Among households experiencing homelessness that do not have children, 83 percent are unsheltered. Similarly, the majority of homeless households with children are unsheltered (45 percent).
Table A-17 Homelessness by Household Type and Shelter Status, Monterey County, 2019 Jurisdiction
People in
Households
Composed Solely of
Children Under 18
People in Households
with Adults and Children
People in Households
without Children Under
18 Total
Count Percent Count Percent Count Percent
Sheltered –
Emergency Shelter 0 0% 146 22% 218 11% 364
Sheltered –
Transitional
Housing
0 0% 218 33% 124 6% 342
Unsheltered 10 100% 303 45% 1,685 83% 2,340
Total 10 100% 667 100% 2,027 100% 2,704
SOURCE: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations Reports (2019).
For the data table behind this figure, please refer to the Data Packet Workbook, Table HOMELS-01.
NOTES: Universe: Population experiencing homelessness. This data is based on Point-in-Time (PIT) information provided to HUD by CoCs in the application for CoC Homeless Assistance Programs. The PIT Count provides a count of sheltered and unsheltered homeless persons on a single night during the last ten days in January. Each Bay Area County is its own CoC, and so the data for this table is provided at the county-level. Per HCD’s requirements, jurisdictions will need to supplement this county-level data with local estimates of people experiencing homelessness.
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Appendix A – Housing Needs & Fair Housing Report A-53 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 A.5 Access to Opportunity
This section discusses disparities in access to opportunity among protected classes including access to quality education, employment, transportation, and environment. The California Tax Credit Allocation Committee (TCAC) in collaboration with HCD developed a series of opportunity maps that help to identify areas of the community with good or poor access to opportunity for residents.
These maps were developed to align funding allocations with the goal of improving outcomes for low-income residents—particularly children.
Access to Opportunity
“Access to opportunity is a concept to approximate place-based characteristics linked to critical life outcomes. Access to opportunity oftentimes means both improving the quality of life for residents of low-income communities, as well as supporting mobility and access to ‘high resource’ neighborhoods. This encompasses education, employment, economic development, safe and decent housing, low rates of violent crime, transportation, and other opportunities, including recreation, food and healthy environment (air, water, safe neighborhood, safety from environmental hazards, social services, and cultural institutions).” SOURCE: California Department of Housing and Community Development Guidance, 2021, page 34.
The opportunity maps highlight areas of highest resource, high resource, moderate resource, moderate resource (rapidly changing), low resource, and high segregation and poverty. TCAC provides opportunity maps for access to opportunity in quality education, employment, transportation, and environment. Opportunity scores are presented on a scale from zero to one and the higher the number, the more positive the outcomes.
Disparities in Access to Opportunity
As can be seen in Figure A-37, TCAC Opportunity Composite Score, Carmel-by-the-Sea is considered a highest resource area as is much of western Monterey County. According to the HCD AFFH Data Viewer TCAC Opportunity Map, there are no areas of variation in access to opportunity across the City.
Economic
TCAC’s economic opportunity score is comprised of poverty, adult educational attainment, employment, job proximity, and median home value. Figure A-38 shows concentrations of economic outcomes in Carmel-by-the-Sea. According the HCD AFFH Data Viewer TCAC Economic Opportunity Map, all areas of Carmel-by-the-Sea have a high economic opportunity score of 0.75-1.0. This reflects a high level of opportunity for economic advancement for residents in Carmel-by-the-Sea.
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Appendix A – Housing Needs & Fair Housing Report A-54 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-37 TCAC Opportunity Composite Score, Carmel-by-the-Sea, 2022 SOURCE: California Department of Housing and Community Development AFFH Data Viewer Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-55 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-38 TCAC Opportunity Economic Score, Carmel-by-the-Sea, 2022 SOURCE: California Department of Housing and Community Development AFFH Data Viewer Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-56 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Education
TCAC’s education score is based on math proficiency, reading proficiency, high school graduation rates, and the student poverty rate. Opportunity scores are presented on a scale from zero to one and the higher the number, the more positive the outcomes.
Figure A-39 shows the level of TCAC educational opportunity across Carmel-by-the-Sea. According to TCAC’s Educational Opportunity Map, Carmel-by-the-Sea scores between 0.75-1.0 indicating a high level of positive educational outcomes for residents in Carmel-by-the-Sea.
Carmel-by-the-Sea is served by the Carmel Unified School District (CUSD), along with elementary, middle, and high schools within the City and school district. As of 2022, the State of California School Dashboard highlights a 97.9 percent graduation rate among all students enrolled in Carmel High School, which is higher than the statewide average (87.4 percent) and County average (88.5 percent).
When broken down by race/ethnicity, Hispanic and White students graduated at a high rate (97.4 percent for both groups). There is no performance data available for the graduation rates of African American, Asian, Filipino, and American Indian students at Carmel High.
Additionally, there is no performance data available for the graduation rates of students with a disability within Carmel High.
Environment
TCAC’s opportunity areas environmental scores are based on the CalEnviroScreen 4.0 indicators, which identify areas disproportionately vulnerable to pollution sources such as ozone, PM2.5, diesel PM, pesticides, toxic release, traffic, cleanup sites, groundwater threats, hazardous waste, impaired water bodies, and solid waste sites.
Figure A-40 shows TCAC environmental outcomes across Carmel-by-the-Sea. According to the HCD AFFH Data Viewer TCAC Environmental Opportunity Map, Carmel-by-the-Sea scores between 0.75-1.0 indicating a low level of environmental pollution burden and positive outcomes for residents in Carmel-by-the-Sea.
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Appendix A – Housing Needs & Fair Housing Report A-57 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-39 TCAC Opportunity Education Score, Carmel-by-the-Sea, 2022 SOURCE: California Department of Housing and Community Development AFFH Data Viewer Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-58 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-40 TCAC Opportunity Environmental Score, Carmel-by-the-Sea, 2022 SOURCE: California Department of Housing and Community Development AFFH Data Viewer The Social Vulnerability Index (SVI) provided by the Center for Disease Control (CDC)ranks census tracts based on their ability to respond to a disaster and includes four themes of socioeconomic status, household composition, race or ethnicity, and housing and transportation.
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Appendix A – Housing Needs & Fair Housing Report A-59 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-41 shows SVI levels across Carmel-by-the-Sea. Carmel-by-the-Sea scores low on the SVI (less than 0.25) indicating that the City is slightly vulnerable to disasters, but highly equipped to respond to them. Just outside of the City’s borders however, vulnerability levels increase to 0.25-0.5.
This is likely due to a difference in jurisdictional resources.
Figure A-41 Social Vulnerability Index, Carmel-by-the-Sea, 2018 SOURCE: California Department of Housing and Community Development AFFH Data Viewer Attachment 2
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Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Disparities Specific to the Population Living with a Disability In Carmel-by-the-Sea, 12.3 percent of the population is living with at least one disability, compared to 8.8 percent in Monterey County. The most common disabilities in the City are: hearing difficulty (9.9 percent), ambulatory difficulty (4.4 percent), and independent living difficulty (4.3 percent). For the population 65 and over, the share of the population with hearing difficulties increases to 19.3 percent.
A.6 Housing Stock Characteristics
Carmel-by-the-Sea’s housing stock is defined as all housing units within its jurisdiction.
Characteristics of housing stock include housing type, age, condition, tenure, vacancy rates, costs, affordability, and growth. The following section provides an in-depth analysis of the housing stock in Carmel-by-the-Sea to determine how/if the current the housing stock meets the needs of existing and future residents.
Housing Growth
Table A-18 provides an overview of housing growth trends between 2010-2019 in Carmel-by-theSea, the County, and nearby cities. Between 2010-2019, Carmel-by-the-Sea housing unit estimates grew approximately 6 percent, more than the County and Del Rey Oaks, but 2 percent less than Pacific Grove. These estimates show the majority of housing growth in Carmel-by-the-Sea occurred between 2015-2019 (8 percent).
Table A-18 Housing Unit Growth Trends by Jurisdiction, 2010-2019 Jurisdiction 2010 2015 2019 Percent Change
2010-2015
Percent Change
2015-2019
Monterey County 138,833 139,794 141,820 1% 1%
Carmel-by-the-Sea 3,606 3,532 3,832 -2% 8%
Del Rey Oaks 752 733 745 -3% 2%
Pacific Grove 7,723 8,411 8,347 9% -1%
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2010-2019 Housing Type
Table A-19 provides a comparison of housing unit types in Carmel-by-the-Sea, the County, and nearby cities. In Carmel-by-the-Sea, single-family detached units are the most common housing type (87 percent). This aligns with the County (63 percent), Del Rey Oaks (76 percent), and Pacific Grove (60 percent) having majority single-family detached units. Overall, Carmel-by-the-Sea has the highest percentage of single-family detached units compared to the County and nearby cities, but the lowest percentage of multifamily housing units (10 percent).
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Appendix A – Housing Needs & Fair Housing Report A-61 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Table A-19 Housing Units by Type by Jurisdiction, 2019
Jurisdiction
SingleFamily
Detached
SingleFamily
Attached
Multifamily Mobile
Homes Total Units
Count Percent Count Percent Count Percent Count Percent Monterey County 88,721 63% 8,796 6% 37,734 27% 6,529 5% 141,820 Carmel-by-the-Sea 3,319 87% 54 1% 367 10% 92 2% 3,832
Del Rey Oaks 567 76% 49 7% 118 16% 11 2% 745
Pacific Grove 5,023 60% 497 6% 2,668 32% 159 2% 8,347
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
NOTE: Table indicates total housing units.
Figure A-42 illustrates housing type trends in Carmel-by-the-Sea between 2010-2019. In 2010, the majority of housing types were single-family detached homes (82 percent); this has since increased to 87 percent in 2019. Multifamily housing (2+ units) has decreased by 3 percent since 2010 accounting for only 10 percent of housing types in 2019. In 2010, mobile homes comprised the smallest percentage of housing type in Carmel-by-the-Sea, and have since slightly increased to 2 percent in 2019.
Figure A-42 Housing by Type in Carmel-by-the-Sea, 2010-2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2010-2019 Housing Availability and Tenure
Housing tenure refers to individuals who own or rent a housing unit. The number of residents who own their homes compared to those who rent their homes can help identify the level of housing insecurity (i.e., ability for individuals to stay in their homes) in a city and region. Generally, renters Single-Family
Home:
Attached
Single-Family
Home:
Detached
Multifamily
Housing: Two
to Four Units
Multifamily
Housing: Fiveplus UnitsMobile Homes
2010 5% 82% 6% 7% 0%
2015 2% 87% 3% 7% 2%
2019 1% 87% 3% 7% 2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
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Appendix A – Housing Needs & Fair Housing Report A-62 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 may be displaced more quickly if prices increase. Additionally, housing tenure may be an indicator of housing affordability (i.e., if the local housing market has high barriers to entry, there may be more renter households than owner households).
In Carmel-by-the-Sea, the housing stock includes 828 renter-occupied housing units and 1,099 owner-occupied housing units (Table A-20). When analyzing housing unit type in tandem with tenure, the majority of all housing units are single-family detached (87 percent), of which 17 percent are renter-occupied and 32 percent are owner-occupied (Figure A-17; Table A-20).
Table A-20 Housing Units by Type and Tenure, Carmel-by-the-Sea, 2019 Tenure
SingleFamily
Detached
SingleFamily
Attached
Multifamily Mobile
Homes Total Units
Count Percent Count Percent Count Percent Count Percent Renter-Occupied 568 69% 19 2% 221 27% 20 2% 828
Owner-Occupied 1,076 98% 0 0% 23 2% 0 0% 1,099
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
NOTE: Table indicates total occupied housing units.