Table A-21 provides an overview of household size by tenure for Carmel-by-the-Sea, the County, and nearby cities. In Carmel-by-the-Sea, the average household size is 2.04, of which the majority of larger households are comprised of renter-occupied units (2.13 persons/unit). An average household size of 2.04 suggests a need for more small housing units. This aligns with 82 percent of Carmel-bythe-Sea’s population being comprised of 1-2 person households (Figure A-13). Compared to the County and nearby cities, Carmel-by-the-Sea has the lowest average household size (2.04 persons/unit). The County has a high average household size of 3.27 suggesting a need for large housing units and even a need for smaller independent units such as ADUs/JADUs for extended family, etc.
Table A-21 Household Size by Tenure by Jurisdiction, 2019 Jurisdiction OwnerOccupied
RenterOccupied
Average
Household
Size
Monterey County 3.13 3.41 3.27
Carmel-by-the-Sea 1.97 2.13 2.04
Del Rey Oaks 2.29 2.49 2.35
Pacific Grove 2.34 2.15 2.23
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-63 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-43 illustrates 2019 household tenure by race in Carmel-by-the-Sea. Tenure by race varies some in Carmel-by-the-Sea as the majority of all households are non-Hispanic White (87 percent), of which 58 percent are owner-households and 42 percent are renter-households (Figure A-4; Figure A-43). Hispanic or Latino households (8 percent) makeup the second largest population in Carmelby-the-Sea, of which 72 percent are owner-households and 28 percent are renter-households. Less than 1 percent of Black or African American, Native Hawaiian or Other Pacific Islander, and American Indian or Alaska Native households are represented in the City’s housing market.
Figure A-43 Household Tenure by Race, Carmel-by-the-Sea, 2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
Figure A-44 illustrates vacancy rates in Carmel-by-the-Sea, the County, and nearby cities. Carmel-bythe-Sea has a vacancy rate of 50 percent. This reflects a 40 percent higher vacancy rate than the County (10 percent) and 32 percent higher than Pacific Grove (18 percent).
American
Indian or
Alaska
Native
(Hispanic
and NonHispanic)
Asian
alone
Native
Hawaian
and Other
Pacific
Islander
Black or
African
American
(Hispanic
and NonHispanic)
Hispanic or
Latinx
Some
Other
Race/Multi
ple Races
White
(Hispanic
and NonHispanic)
White,
NonHispanic
Renter Occupied 0% 51% 0% 0% 28% 100% 42% 42%
Owner Occupied 0% 49% 0% 0% 72% 0% 58% 58%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-64 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-44 Vacancy Rates by Jurisdiction, 2019
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
Figure A-45 illustrates vacancy trends in Carmel-by-the-Sea from 2010-2019. Over the course of nearly a decade, the City has experienced a stable vacancy average of 51 percent. This is staggeringly high considering the current housing crisis. Additionally, this affects the accuracy of data reporting for the City, as the majority of homeowners do not live in Carmel-by-the-Sea full time, thus resulting in skewed data collection.
Figure A-45 Vacancy Trends, Carmel-by-the-Sea, 2010-2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
Table A-22 shows vacant housing units by type, revealing 80 percent of Carmel-by-the-Sea’s vacant units are for seasonal, recreational, or occasional use, aligning with the 51 percent average vacancy trends (Figure A-45). The high percentage of vacant housing units is largely impacted by tourism 50%
10% 13%
18%
0%
10%
20%
30%
40%
50%
60%
Carmel-by-the-Sea Monterey County Del Rey Oaks Pacific Grove 46% 47% 51% 52% 51% 52% 53% 52% 52% 50%
54% 53% 49% 48% 49% 48% 47% 48% 48% 50%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Occupied
Vacant
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-65 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 and second-home ownership. This creates a significant barrier for current and potential residents to enter the local housing market and hinders opportunities to correct the housing crisis, address diversity, and provide inclusive housing options to promote a vibrant and active community.
Table A-22 Vacant Housing Units by Type, Carmel-by-the-Sea, 2019 Housing Unit Type Estimate Percentage
For rent 96 5%
Rented, not occupied 12 1%
For sale only 11 1%
Sold, not occupied 49 3%
For seasonal, recreational, or occasional
use
1,522 80%
For migrant workers 0 0%
Other vacant 215 11%
Total 1,905 100%
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
Table A-23 shows housing permits issued by the City of Carmel-by-the-Sea by income group.
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 5th Cycle Housing Element.
Table 3-9 shows housing permits by income group in Carmel-by-the-Sea. Of the 18 housing units permitted, all were for above moderate-income.
Table A-23 Housing Permits by Income Group, Carmel-by-the-Sea, 2015-2021 Income Group Number Percent
Very Low-Income Permits 0 0.0%
Low-Income Permits 0 0.0%
Moderate-Income Permits 0 0.0%
Above Moderate-Income Permits 18 58.0%
Total 18 58.0%
SOURCE: California Department of Housing and Community Development (HCD), 5th Cycle Annual Progress Report Permit Summary (2022).
NOTE: Universe: Housing permits issued between 2015 and 2021. Notes: HCD uses the following definitions for the four income categories: Very Low Income: units affordable to households making less than 50 percent of the Area Median Income for the county in which the jurisdiction is located. Low Income:
units affordable to households making between 50 percent and 80 percent of the Area Median Income for the county in which the jurisdiction is located. Moderate Income: units affordable to households making between 80 percent and 120 percent of the Area Median Income for the county in which the jurisdiction is located.
Above Moderate Income: units affordable to households making above 120 percent of the Area Median Income for the county in which the jurisdiction is located.
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-66 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Assisted Housing Developments At-Risk of Conversion
While there is an immense need to produce new affordable housing units, ensuring that the existing affordable housing stock remains affordable is equally important. Additionally, it is typically faster and less expensive to preserve currently affordable units that are at risk of converting to market-rate than it is to build new affordable housing.
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.26 According to the database, there are no federal or state assisted units in Carmel-by-the-Sea.
A variety of affordable housing projects provided through an assortment of local programs serves the Carmel-by-the-Sea. Each of the following projects serves as an example of the methods and incentives used by the City to achieve production of affordable housing units.
Oliver White Building and Viejo Carmel
The mixed-use Oliver White building contains four residential units, one of which is a ModerateIncome unit in perpetuity. Originally this site was developed with a single-story commercial building.
The owner and City worked together to achieve a second story of residential apartments at a density of 44 units per acre.
The Viejo Carmel project is a larger example of infill development that provides affordable housing.
The 20,000 square-foot site was occupied by semi-industrial uses and offices. The site was razed and redeveloped with ten condominiums and ten apartments at a density of 44 units per acre. Without density bonuses, the site could only achieve 15 residential units. With density bonuses, an additional two Low-Income rental apartments in perpetuity were approved. Additionally, the parking requirement for the low-income units was reduced.
Norton Court Apartments
The Norton Court Apartments for seniors is operated by the Carmel Foundation. As part of this 24- unit project, the City entered into a 50-year agreement to lease the property for one dollar per year to the Carmel Foundation. This amounts to a substantial land subsidy provided by the City that offsets a large part of the cost of developing housing. The units are restricted as Low- and Moderate-Income. Rents are maintained as affordable to lower-income seniors strictly through private donations raised by the Carmel Foundation.
26 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 2
Appendix A – Housing Needs & Fair Housing Report A-67 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Trevett and Hazeltine Courts
Trevett and Hazeltine Courts were developed with funding from the Carmel Foundation. Rents for the 26 rental apartments are maintained as affordable to lower-income seniors with private donations raised by the Foundation.
San Carlos Lodge
This site was granted a major addition and allowed the conversion of some existing apartments to transient overnight visitor accommodation units. As a condition, the project retained two of the existing apartments as affordable housing for Moderate-Income households in perpetuity.
The City’s inventory of affordable units is listed below in Table A-24.
Table A-24 Inventory of Assisted Rental Housing
Development
Name
Total Units Household Type Provided By Expiration of
Affordability
Oliver White 1 Moderate Density Bonus In perpetuity
Viejo Carmel 2 Low Density Bonus In perpetuity
Norton Court 24 Senior Low Lease Subsidy Not defined
San Carlos Lodge 2 Moderate Condition of Approval In perpetuity Trevett Court 14 Senior Private non-profit Not applicable Hazeltine Court 12 Senior Private non-profit Not applicable Hasegawa 1 Low Inclusionary In perpetuity
Carl 1 Senior Inclusionary 2027
Mandurrago 2 Senior Inclusionary In perpetuity
Gonzales 1 Low Inclusionary In perpetuity
Ravel Corporation 1 Low Inclusionary In perpetuity
Trini Iye 1 Moderate Inclusionary In perpetuity
Total 62
Source: City of Carmel-by-the-Sea Community Planning and Building Department, 2023 Potential Loss of Assisted Housing Units
Housing units developed with public subsidies are an important source of affordable housing to lower-income households. Preserving the long-term affordability of such housing units is the most cost-effective means for providing decent and affordable housing in a community. Recognized this important resource, State Housing Element law requires that a jurisdiction examine the potential loss of publicly subsidized multi-family rental housing for lower-income household due to expiration of deed restrictions, affordability covenants, and /or subsidy contracts.
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-68 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Norton Court, Trevett Court, and Hazeltine Court are owned and operated by the Carmel Foundation, a non-profit organization which does not intend to convert the units to market rate housing within this Housing Element cycle. The Foundation currently has a 5-7 year wait list units on these properties. Trevett Court and Hazeltine Court did not receive any public assistance and have no deed restrictions or affordability covenants. While Norton Court receives a subsidized property lease, no restriction was ever placed on the property to maintain the units as affordable housing. Units in the Oliver White Building, Viejo Carmel, and Sand Carlos Lodge are restricted as affordable housing in perpetuity.
One unit in the Carl development is listed with an expiration date of 2027. City staff are further researching the terms of this affordable unit. To maintain the existing affordable housing stock, the City can either preserve the existing affordable units or facilitate the development of new units.
Depending on the circumstances of at-risk projects, different options may be used to preserve or replace the units. Preservation options typically include: 1) construction of replacement units; 2) provision of rental assistance to tenants 3) transfer of the project to nonprofit ownership; and 4) purchase of affordability covenants. These options are described below and the City’s focus is on construction of replacement units and rental assistance.
Construction of Replacement Units
The construction of new affordable housing units is a means of replacing the at-risk units should they be converted to market-rate units. The cost of developing housing depends on a variety of factors, including density, size of the units (i.e. square footage and number of bedrooms), location, labor, materials and land costs, and type of construction. The City is implementing a number of programs to encourage development of new affordable units to increase the City’s affordable housing stock.
Rental Assistance
Rental subsidies using non-federal (state, local, or other) funding sources can be used to maintain affordability of at-risk units. These rent subsidies can be structured to mirror the federal Housing Choice Voucher (Section 8) program. Under Section 8, HUD pays the difference between what tenants can pay (defined as 30 percent of household income) and what HUD estimates as the fair market rent on the unit. The feasibility of this alternative is highly dependent on the availability of other funding sources necessary to make rent subsidies available and the willingness of property owners to accept rental vouchers if they can be provided. Housing Choice Vouchers are available through the Housing Authority of Monterey County.
Transfer of Ownership
Transferring ownership of an at-risk project to a nonprofit housing provider is generally one of the least costly ways to ensure that at-risk units remain affordable for the long term. By transferring Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-69 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 property ownership to a nonprofit organization whose mission includes affordable housing, the risk of losing the low-income restrictions is minimized, and the project would become potentially eligible for a greater range of governments assistance.
Purchase of Affordability Covenants
Another option to preserve the affordability of at-risk projects is to provide an incentive package to the owners to maintain the projects as affordable housing. Incentives could include bringing down the interest rate on the remaining loan balance, providing loans for capital improvements, and/or supplementing subsidies. The feasibility of this option depends on whether the complex is too highly leveraged. By providing lump sum financial incentives or ongoing subsidies in the form of rents or reduced mortgage interest rates to the owner, the City can ensure that some of all of the units remain affordable.
Displacement
Because of increasing housing prices, displacement is a major concern in the Monterey Bay Area.
Displacement has the most severe impacts on low- and moderate-income residents. When individuals or families are forced to leave their homes and communities, they also lose their support network.
According to the California Department of Housing and Community Development (HCD) AFFH Data Viewer and the Urban Displacement Project 2022 estimates, Carmel-by-the-Sea renteroccupied households earning between 0-80 percent AMI are at low risk of potential displacement or gentrification in the northern region of the City. Mapping of the central and southern regions of the City show sufficient data was not captured to definitively report displacement risk. Figure A-46 illustrates displacement risk in Carmel-by-the-Sea.
Housing Age and Condition
Housing age and condition are factors considered in overall housing quality as they may affect the structural integrity and ability to adequately function for a household. Thus, the age and condition of a house may indicate the need for major repairs to the foundation, plumbing, or roof.
Figure A-47 illustrates housing stock by age in Carmel-by-the-Sea. In Carmel-by-the-Sea, 95 percent of the housing stock was built prior to 1999 and is over 20 years old. Thirty-seven (37) percent of the housing stock was built between 1940-1959 and 2 percent was built in 2010 or later.
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-70 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-46 Displacement Risk, 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-71 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-47 Housing Stock by Age, Carmel-by-the-Sea, 2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
According to historical data from Carmel-by-the-Sea’s Code Enforcement Office and Housing Authority, the City estimates that there are approximately five (5) units in need of rehabilitation.
This 6th Cycle Housing Element proposes the following policies and programs to address and facilitate the rehabilitation of these units.
Policy 2.1: Maintain and encourage expansion of permanent residential housing stock in the Commercial, R-1, and R-4 Districts;
Policy 2.2: Preserve and protect the scale and character of established neighborhoods while encouraging property improvement;
Policy 2.3: Preserve and expand affordable and rental housing opportunities to enable local employees to live in the community where they work; and Policy 2.4: Preserve the existing housing stock.
All programs and policies can be found in Chapter 2 of the Housing Element.
Housing Costs and Affordability
Identifying the cost of owning or renting a home in a city helps determine the affordability of housing at different income levels. Understanding housing affordability also informs what types and sizes of housing are needed by the community’s households.
Home Prices and Rental Costs
Table A-25 show changes in median home values between 2019-2022 in Carmel-by-the-Sea, the County and nearby cities. According to Zillow Home Value Index data, the median home value in 28%
37%
17%
13%
4%
2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Built 1939 Or
Earlier
Built 1940 To
1959
Built 1960 To
1979
Built 1980 To
1999
Built 2000 To
2009
Built 2010 Or
Later
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-72 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Carmel-by-the-Sea was estimated at $1,299,387 in December 2019. By 2022, the median home value in Carmel-by-the-Sea increased approximately 59 percent due to market demand. By comparison, the median home value in the County was valued at $561,490 in December 2019 and experienced a 39 percent increase by 2022.
Table A-25 Median Home Value by Jurisdiction, 2019-2022 Jurisdiction
Median Home Value Percent Change
2019-2022 2019 2020 2021 2022
Monterey County $561,490 $632,834 $735,469 $778,164 39% Carmel-by-the-Sea $1,299,387 $1,450,127 $1,912,421 $2,070,835 59% Del Rey Oaks $630,204 $701,060 $779,099 $840,663 33%
Seaside $550,015 $616,786 $690,126 $729,055 33%
Pacific Grove $943,900 $1,032,675 $1,237,054 $1,294,881 37% SOURCE: Zillow Home Value Index, 2019-2022
NOTE: Housing value estimates were taken from December for years 2019-2022.
Rental Affordability
Similar to home value prices, rental prices have also increased over the last decade. This significantly affects lower-income households as they are typically majority renters. High rental prices can exacerbate housing challenges such as overcrowding and cost burden if adequate rental stock is not available to suit household needs.
Table A-26 shows average rent estimates by unit size in Carmel-by-the-Sea based on 2023 Zillow rental market data. Included in the table is Housing and Urban Development’s (HUD) Fair Market Rents (FMR) for 2023, which establishes rental subsidy limits for Section 8 housing voucher recipients.
Table A-26 Average Rent by Number of Bedrooms, Carmel-by-the-Sea, 2023 Unit Type Average Rents Fair Market Rents (HUD)
Studio $2,200 $2,112
One bedroom $2,500 $2,194
Two bedrooms $4,000 $2,675
Three bedrooms $5,459 $3,790
Four+ bedrooms n/a $4,144
SOURCE: Zillow, 2023; HUD, Fair Market Rent Documentation System, 2023 NOTES: Zillow rental value estimates were taken from March 2023. No rental units with four + bedrooms are listed as available within the Carmel-by-the-Sea City boundary. Fair Market Rent values are based on Salinas, CA MSA Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-73 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Table A-27 reports the maximum monthly housing costs affordable to households according to income group in Monterey County. Income groups are based on the HCD 2022 State Income Limits Report, which considers housing affordable assuming a household can pay up to 30 percent of its monthly income toward housing. In Table A-27, maximum affordable sales prices are based on the following assumptions: 6.42 percent interest rate,27 30-year fixed loan, and a 5 percent down payment.
As mentioned in Table A-24, the median home price in Carmel-by-the-Sea in December 2022 was $2,070,835 which is only affordable to above moderate-income households earning approximately $495,000 or more annually (62 percent of Carmel-by-the-Sea households are categorized as above moderate-income).
Table A-27 Housing Affordability, Carmel-by-the-Sea, 2022 Income Group HCD Income Limits
Maximum Affordable Price
Monthly Rental Ownership
Extremely Low (0-30% AMI)
One Person $23,900 $598 $100,340
Two Person $27,300 $683 $114,614
Three Person $30,700 $768 $128,889
Four Person $34,100 $853 $143,163
Very Low (30-50% AMI)
One Person $39,800 $995 $167,093
Two Person $45,500 $1,138 $191,024
Three Person $51,200 $1,280 $214,954
Four Person $56,850 $1,421 $238,675
Low (50-80% AMI)
One Person $63,700 $1,593 $267,433
Two Person $72,800 $1,820 $305,638
Three Person $81,900 $2,048 $343,843
Four Person $91,000 $2,275 $382,048
Moderate (80-120% AMI)
One Person $75,650 $1,891 $317,603
Two Person $86,500 $2,163 $363,155
Three Person $97,300 $2,433 $408,497
Four Person $108,100 $2,700 $453,839
SOURCE: California Department of Housing and Community Development, State Income Limits, 2022, Monterey County 27 Interest rate based on December 29, 2022 interest rate according to Freddie Mac Primary Mortgage Market Survey Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-74 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 A.7 Fair Housing Enforcement and Outreach Capacity
This section discusses fair housing legal cases and inquiries, fair housing protections and enforcement, and outreach capacity.
Fair Housing Legal Cases and Inquiries
California fair housing law extends beyond the protections in the Federal Fair Housing Act (FHA).
In addition to the FHA protected classes—race, color, ancestry/national origin, religion, disability, sex, and familial status—California law offers protections for age, sexual orientation, gender identity or expression, genetic information, marital status, military or veteran status, and source of income (including federal housing assistance vouchers).
The California Department of Fair Employment in Housing (DFEH) was established in 1980 and is now the largest civil rights agency in the United States. According to their website, the DFEH’s mission is, “to protect the people of California from unlawful discrimination in employment, housing and public accommodations (businesses), and from hate violence and human trafficking in accordance with the Fair Employment and Housing Act (FEHA), Unruh Civil Rights Act, Disabled Persons Act, and Ralph Civil Rights Act”.28
DFEH receives, evaluates, and investigates fair housing complaints. DFEH plays a particularly significant role in investigating fair housing complaints against protected classes that are not included in federal legislation and therefore not investigated by HUD. DFEH’s website provides detailed instructions for filing a complaint, the complaint process, appealing a decision, and other frequently asked questions.29 Fair housing complaints can also be submitted to HUD for investigation.
Additionally, Monterey County has a number of local resource and enforcement organizations:
The Housing Authority of the County of Monterey: A public agency that provides rental assistance and develops and manages affordable housing throughout Monterey County, California;
South County Housing: A non-profit community development corporation. The organization’s mission is to promote viable neighborhoods that enhance healthy, sustainable communities by collaboratively providing affordable housing and promoting neighborhood services;
28 From State of California Civil Rights Department
29 From State of California, Civil Rights Department Complaint Process Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-75 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Public Interest Law Project: a nonprofit support center for California legal services and other public interest law programs. The California Affordable Housing Law Project (CAHLP) is a project of the Public Interest Law Project. CAHLP concentrates primarily on the enforcement of California’s Housing Element and redevelopment statutes and of state and federal relocation assistance and fair housing laws;
Coalition of Homeless Service Providers: Advocate on the subject of homelessness with policy makers, public funders, and those with lived experience; and California Rural Legal Assistance (CRLA): a nonprofit legal service program created to help California’s low-income individuals and communities. CRLA provides low-income rural Californians with free legal assistance and a variety of community education and outreach programs. Half of its resources are committed to multi-client cases that grapple with the root causes of poverty, with the goal of improving conditions for farmworkers, single parents, school children, the elderly, people with disabilities, and entire communities.
Between 2012 and 2017, 53 fair housing complaints in Monterey County had been filed with the California Department of Fair Employment and Housing (DFEH). Among the complaints countywide, most were related to physical disabilities (23 instances) and familial/marital status (ten instances). Discrimination based on race was also common (seven instances). A complaint may involve multiple acts of discrimination and vice versa. A total of 57 acts of discrimination were recorded in Monterey County. Refusal to rent (17 instances), discriminatory statements (12 instances), and denial of reasonable accommodation/modifications (12 instances) were the most common discriminatory acts in the County.30
In 2020, a total of six (6) discrimination cases were found with the Office of Fair Housing and Equal Opportunity. Fifty percent of the cases were filed on the basis of disability bias. None of the complaints alleged racial bias. Figure A-48 illustrates that out of all of the FHEO cases filed in the state of California in 2020 (398), only between 1 and 2.5 percent of the cases were filed in Monterey County. None of the discrimination cases filed in Monterey County in 2020 took place in Carmelby-the-Sea. 31 A total of six discrimination complaints were filed within Monterey County during 2020. Of those cases, three of them alleged discrimination based on disability. Figure A-49 illustrates this statistic by showing that 40.01 to 65 percent of the cases filed in Monterey County during 2020 reflected disability bias. None of the FHEO complaints occurred in the City of Carmel-by-the-Sea. 30 From California Department of Fair Employment & Housing, 2018; Monterey County Regional Analysis of Impediments to Fair Housing Choice, 2019
31 City of Carmel-by-the-Sea, 2023
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-76 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-48 FHEO Cases Total, Monterey County, 2020
SOURCE: California Department of Housing and Community Development AFFH Data Viewer Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-77 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Figure A-49 FHEO Cases, Disability Bias, Monterey County, 2020 SOURCE: California Department of Housing and Community Development AFFH Data Viewer Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-78 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 NFHA identifies three significant trends in 2020 that are relevant for this AFFH:
First, fair lending cases referred to the Department of Justice from federal banking regulators has been declining, indicating that state and local government entities may want to play a larger role in examining fair lending barriers to homeownership; Second, NFHA identified a significant increase in the number of complaints of harassment— 1,071 complaints in 2020 compared to 761 in 2019; and
Finally, NFHA found that 73 percent of all fair housing complaints in 2020 were processed by private fair housing organizations, rather than state, local, and federal government agencies— reinforcing the need for local, active fair housing organizations and increased funding for such organizations.32
Outreach and Capacity
Currently, Carmel-by-the-Sea’s website contains information about local fair housing ordinances.
The website describe the steps residents should take if they feel they have faced discrimination and are seeking information about filing complaints (e.g., link to HUD’s and State of California fair housing pages). The site also references the organizations that provide fair housing services and assistance to City residents.
The following organizations offer fair housing services and assistance to the residents of Carmel-bythe-Sea:
Conflict Resolution and Mediation Center;
Legal Services for Seniors;
California Rural Legal Assistance;
ECHO Fair Housing Services
HUD Housing Assistance;
Central Coast Center for Independent Living; and
Center for Community Advocacy.
Compliance with state law. Carmel-by-the-Sea is compliant with the following state laws that promote fair and affordable housing. The City has not been alleged or found in violation of the following:
Housing Accountability Act (Gov. Code. Section 65589.5) requiring adoption of a Housing Element and compliance with RHNA allocations;
32 From Gentry, A. (2021, September 4). Annual fair housing report shows increase in housing harassment. NFHA.
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-79 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 No Net Loss Law (Gov. Code Section 65863) requiring that adequate sites be maintained to accommodate unmet RHNA allocations;
Least Cost Zoning Law (Gov. Code. Section 65913.1);
Excessive Subdivision Standards Law (Gov. Code. Section 65913.2); and Limits on Growth Controls Law (Gov. Code. Section 65302.8).
Housing Specific Policies Enacted Locally
The City of Carmel-by-the-Sea identified the following local policies that contribute to the regulatory environment for affordable housing development in the City:
Policy 1.1: Ensure adequate sites are available to meet the City’s projected housing growth needs.
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.
Policy 2.3: Preserve and expand affordable and rental housing opportunities to enable local employees to live in the community where they work.
Policy 2.4: Preserve the existing housing stock.
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.
A.8 Fair Housing Recommendations
Contributing Factors and Fair Housing Action Plan
The disparities in housing choice and access to opportunity discussed above stem from historical actions, socioeconomic factors that limit employment and income growth, barriers to open housing choice, and until recently, very limited resources to respond to needs.
Local Knowledge of Contributing Factors to Fair Housing In order to better inform this Housing Element to meet the needs of residents of Carmel-by-theSea, the City solicited the input of the public with prompted questions. All responses were taken into consideration for incorporation into the Housing Element to guide policies and programs that address the housing needs of existing and future residents.
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-80 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Question: How can the supply of affordable housing be increased to meet the needs of our community?
Community members offered the following solutions:
Encourage ADUs;
Encourage second-story additions to single-story buildings downtown specifically for affordable housing;
Change the zoning code to allow 3-story buildings downtown specifically for affordable housing; 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;
Create objective (yes/no checklist-style) design standards for new housing projects that include affordable units;
Less short-term rental places, more long-term rental options; Build housing on the outskirts and empty parking lots; Annex land outside City for affordable housing; and
Continue to ensure the built environment is subordinate to the natural environment.
Question: In your experience in Carmel-by-the-Sea, what has contributed to the fair housing issues? What solutions do you envision to address these issues? Information about affordable units.
Down payment assistance.
Tenant assistance resources.
Priority of Contributing Factors
The City of Carmel-by-the-Sea has prioritized the following contributing factors to the Fair Housing issues mentioned above. Table A-27 presents prioritized fair housing issues and contributing factors, as well as the City’s programs to support a solution-oriented approach to affirmatively furthering fair housing.
Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-81 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Table A-28 Fair Housing Issues, Contributing Factors, and AFFH Programmatic Actions Fair Housing Issue Contributing Factor(s) AFFH Programmatic Action Priority Household Characteristics
Carmel-by-the-Sea has significantly lower
proportions of racial and ethnic minorities
compared to Monterey County and the
AMBAG region. Lack of inclusionary
housing may contribute to the lack of
protected classes in the community.
Lack of racial and ethnic diversity within the City;
and
Lack of adequate affordable housing options.
Program 1.1.B: Underutilized Sites
Program 3.1.C: Density Bonus
Program 3.1.D: Reduced Entitlement and
Development Fees
Program 1.3.D: Employee Housing Program
Program 2.1.A: Incentives for Mixed-Use
Development
High
Disproportionate Housing Needs
Forty-six (46) percent of Carmel-by-the-Sea
households are cost burdened households,
of which 24 percent are renter-occupied
households and 23 percent are owneroccupied.
Lack of affordable housing;
Lack of adequate housing stock that meets the
needs of residents; and
Jobs-worker imbalance.
Program 1.1.B: Underutilized Sites
Program 1.3.D: Employee Housing Program
Program 2.4.A: Housing Rehabilitation and
Maintenance Information
Program 3.1.B: Housing for Extremely-Low
Income Households
Program 3.1.C: Density Bonus
Program 3.1.G: Affordable Housing Overlay
District
High
Special Needs Groups
In Carmel-by-the-Sea, extremely lowincome and special needs groups Lack of affordable housing;
Jobs-worker imbalance;
Program 1.3.E: Amend the A-2 Zoning District
Program 3.1.B: Housing for Extremely-Low
Income Households
High
Appendix A – Housing Needs & Fair Housing Report A-82 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Fair Housing Issue Contributing Factor(s) AFFH Programmatic Action Priority experience disproportionate impacts of
poverty, increasing the challenge of
obtaining adequate housing in the City.
Lack of accessible units for individuals with
disabilities; and
Lack of Transitional and Supportive
Housing/Emergency Shelters.
Program 3.2.A: Reasonable Accommodation
Procedures
Program 3.3.A: Zoning for Transitional and
Supportive Housing
Program 3.3.B: Low-Barrier Navigation
Centers
Housing Stock
Carmel-by-the-Sea’s lack of affordable
housing production, limited variety of
housing types, and increasing housing
costs create barriers to enter the local
housing market.
Since 2015, there have been 18 housing permits in
the City for only above moderate-income
households; and
Lack of developable land, and the City is subject to
coastal zone ordinances.
Program 1.3.A: Condominium Conversions
Program 1.3.B: Overnight Visitor
Accommodation (Conversion)
Development Transfer Rights
Program 1.3.C: Accessory Dwelling Units
Program 1.4.A: Remove Use Permit
Requirement for Multi-Family
Development
Program 1.4.B: Objective Design Standards
Program 2.1.B: Permanent Housing
Program 2.3.A: Preserve and Increase Upper
Floor Residential Uses
Program 3.1.E: Reduced Parking
Requirements
Program 3.1.F: Expedited Processing
Procedures
High
Access to Opportunity
Low production of affordable housing in
Carmel-by-the-Sea limits housing choices
for low-income households, and has a
disproportionate impact on Hispanic or
Latino, Asian, and Black/African American
households.
Of the 18 housing permits issued in Carmel-by-theSea since 2015, zero were issued for lowerincome households; and Costs of land, materials, and labor which limit
profitability of affordable housing.
Program 1.2.A: Water Distribution Policy
Program 1.3.A: Condominium Conversions
Program 1.3.D: Employee Housing Program
Program 2.1.D: Establish Affordable Housing
Trust Fund
Program 3.1.C: Density Bonus
Program 4.1.A: Water Conservation
High
Appendix A – Housing Needs & Fair Housing Report A-83 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 Fair Housing Issue Contributing Factor(s) AFFH Programmatic Action Priority Fair Housing Enforcement
No residents filed fair housing complaints in
Carmel-by-the-Sea, indicating a lack of
cause for complaint, or, alternatively, a
potential lack of awareness about fair
housing rights.
Lack of access to information about fair housing
rights; and
Limited knowledge of fair housing by residents.
Program 2.1.C: Monitor Affordable Housing
Stock
Program 5.1.A: Fair Housing Services
Program 5.1.B: Housing Choice Voucher
Program
Program 5.1.C: Shared Housing Information
Program 5.2.A: Support Community
Organizations
Medium
SOURCE: City of Carmel-by-the-Sea; EMC Planning Group
Appendix A – Housing Needs & Fair Housing Report A-84 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft July 2023 A.9 Conclusion
To address the fair housing issues identified in this Housing Needs and Fair Housing report, the programs listed in the above section are included in Chapter 2 of this Housing Element.
Attachment 2
Housing Constraints
APPENDIX
B
Attachment 2
Attachment 2
Table of Contents
APPENDIX B HOUSING CONSTRAINTS ............................................................................. B-1 B.1 Introduction ........................................................................................................................... B-1 B.2 Governmental Constraints ................................................................................................... B-1 B.3 Non-Governmental Constraints ....................................................................................... B-37 Tables
Table B-1 Residential Land Use Designations ......................................................................... B-4 Table B-2 Residential Uses Permitted by Zone....................................................................... B-7 Table B-3 Residential Development Standards..................................................................... B-12 Table B-4 Summary of Community Planning & Building Fees (2022-2023).................... B-23 Table B-5 Comparison of the City of Carmel-by-the-Sea and the City of Pacific Grove Average Design Review Fees .................................................................... B-26 Table B-6 Estimate of Total Development Fees Imposed.................................................. B-28 Table B-7 Review/Approval Requirements and Processing Times................................... B-31 Table B-8 Minimum Off-Street Parking Requirements ....................................................... B-34 Table B-9 Summary of Governmental Constraints .............................................................. B-38 Table B-10 Summary of Non-Governmental Constraints ..................................................... B-47
Attachment 2
Attachment 2
Appendix B – Housing Constraints B-1 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Appendix B
Housing Constraints
B.1 Introduction
Housing development is affected by public regulations and other forces. This chapter discusses both governmental and non-governmental constraints that affect housing in the City of Carmel-by-theSea. Governmental constraints consist of policies, requirements, or other actions imposed by various levels of government on land, housing ownership, and development. In addition to local standards, the City follows building and design requirements put forth by state laws, the California Building Code, Subdivision Map Act, energy conservation requirements, as well as other regulatory standards.
However, Federal and State agency regulations that may constrain development are beyond the City’s control and are therefore not addressed in this document. Non-governmental constraints are other conditions that impact housing development such as market factors, environmental setting, land availability, and construction costs.
B.2 Governmental Constraints
Governmental constraints are policies, standards, requirements, or actions imposed by the various levels of government upon land, housing ownership and development. Although Federal and State agencies play a role in the imposition of governmental constraints, these agencies are beyond the influence of local government and are therefore not addressed in this document. As appropriate, the City will monitor federal and state legislation that impacts housing. The City will update its Municipal Code, as needed to comply with any new housing related planning or zoning laws enacted by the State during the 6th Cycle Planning Period (2023-2031).
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 unincorporated County areas within its Attachment 2
Appendix B – Housing Constraints B-2 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 jurisdiction. Water service by Cal-Am is constrained by State Water Resources Control Board (SWRCB) Order WR 95-101, which determined that in 1995 approximately 70 percent of Cal-Am supply was 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 Cease-and-Desist order to Cal-Am in 20082 to further restrict water use which limits the placement of new water meters to service new development.
According to the MPWMD June 1, 2023 Technical
Memorandum – Summary of Water Supply Requirements
for Housing, the City requires 40 acre feet (AF) to meet the City’s RHNA (349 units). The City has approximately 2.661 acre-feet of available water3 for general distribution which represents a water deficit of approximately 37.339AF. There is also Malpaso Water Company water entitled to certain limited properties whose owners were previously able to purchase water directly from the Water Company4. The
Sites Inventory clearly identifies whether water is a
constraint for each identified property. 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 not widely available to fully accommodate additional development commensurate with the City’s total RHNA.
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 6th Cycle Housing Element includes a program to work with local and regional agencies to pursue new water supplies and includes prioritizing allocation of the City’s 2.661 acre-feet of water for affordable housing through the development of a water distribution policy. 1 See Order No. WR 95-10, chromeextension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.waterboards.ca.gov/waterrights/board_decisions/adopte d_orders/orders/1995/wro95-10.pdf
2 See Order WR 2009-0060, chromeextension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.waterboards.ca.gov/waterrights/board_decisions/adopte d_orders/orders/2009/wro2009_0060.pdf
3 See 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
4 See June 2023 MPWMD Monthly Allocation Report – Entitlements - chromeextension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.mpwmd.net/asd/board/boardpacket/2023/20230717/1 0/Item-10-Exh-10-B.pdf
We have competing mandates.
One of the mandates we have
from the State of California is
Order 95-10, which basically
says we have no more
water…the other mandate is
the [RHNA units]…if we don’t
have water, we can’t build
them. It doesn’t matter how
you slice or dice it – no water,
no construction.
April 6, 2023 Housing Ad Hoc
Committee Community
Meeting Attendee
Attachment 2
Appendix B – Housing Constraints B-3 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 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.
Two trunk sewers serve the City of Carmel and the Hatton Fields areas. Within the City of Carmelby-the-Sea pump stations are located at (1) the westerly terminus of 8th Avenue (at Scenic Drive), (2) the intersection of Monte Verde Street and Sixteenth Avenue, (3) west side of Scenic Road approximately 200 feet south of Ocean View Avenue All pump stations have been upgraded to allow remote monitoring and have capabilities for standby power and emergency bypass.
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 units5.
General Plan and Land Use Controls
Each city and county in California must prepare a comprehensive, long-term General Plan to guide its future. The Land Use Element of the General Plan establishes the basic land uses and density of development within each jurisdiction. Under state law, the General Plan elements must be internally consistent, and each jurisdiction’s zoning must be consistent with its General Plan. Thus, the Land Use Element must provide suitable locations and densities to implement the policies of the Housing Element.
The City’s development policies, standards and requirements were established with the intent of maintaining the long-term health, safety, and welfare of the community. To achieve this, the City has implemented a range of procedures, regulations and fees associated with all local development.
Specific land use and development constraints, such as zoning regulations, governmental fees, building code standards, design review, and processing and permitting time can greatly influence the type and cost of construction that occurs.
5 May 17, 2023 email correspondence with CAWD
We are primarily,
essentially, and
predominantly a
residential city. I want
to see us preserve our
residential character.
February 28, 2023
Housing Ad Hoc
Committee
Community
Meeting Attendee
Attachment 2
Appendix B – Housing Constraints B-4 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 The City of Carmel-by-the-Sea General Plan/Coastal Land Use Plan (General Plan) was adopted in 2003 and most recently amended in 2015. The General Plan Land Use Element identifies land use designations and development intensities for all land within City boundaries. Land Use designations include Core Commercial, Residential/Commercial, Multi-Family Residential, Single Family Residential, and Open Space/Recreation/Cultural. The Residential/Commercial land use designation encourages mixed use buildings and is intended to provide for a mix of residential dwellings and a limited range of office and service uses in scale with the character of the community.
Table B-1, Residential Land Use Designations, identifies the residential land use designations and their maximum permitted densities.
Table B-1 Residential Land Use Designations
Designation Maximum Density
Single-Family Residential 11 du/acre
Multi-Family Residential 33 du/acre, 44 du/acre (with affordable housing) Commercial/Residential 33 du/acre
Core Commercial 33 du/acre
SOURCE: Carmel-by-the-Sea 2003 General Plan
The range of residential densities provided by Carmel-by-the-Sea’s General Plan is sufficient to accommodate a range of housing types and affordability levels. It does not, therefore, pose an undue governmental constraint the development of housing for the community.
Local Coastal Program and Coastal Land Use Plan
The California Coastal Act was established to balance landowners’ rights to develop and the public’s right to enjoy the coastline. This resulted in an area defined as the Coastal Zone which is regulated to ensure orderly, long-range conservation, use, and management of the natural, scenic, cultural, recreational, and manmade resources of the coast. All of the Carmel-by-the-Sea is located within the Coastal Zone, which in this area extends from the coast of Carmel Bay east to California State Highway 1.
Carmel-by-the-Sea’s Local Coastal Program (LCP) was certified by the Coastal Commission in 2004, enabling the City to issue Coastal Development Permits (CDPs). This gives the City authority over local development applications, with appeal oversight maintained by the Coastal Commission. The Commission also retains permanent coastal permit jurisdiction over development proposed on tidelands, submerged lands, and public trust lands.
The LCP includes the following General Plan Elements: Land Use, Circulation, Coastal Access and Recreation, and Coastal Resource Management; the Zoning Ordinance (Implementation Plan); and, Appendices A through I of the General Plan and Zoning Ordinance.
Attachment 2
Appendix B – Housing Constraints B-5 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 The presence of land use regulation via the LCP, in general, means that housing development in Carmel-by-the-Sea faces a high bar to succeed. Most of the recent remedies brought forward by the California legislature to facilitate housing development are either outright inapplicable in the Coastal Zone (SB 35) or are secondary to California Coastal Commission policies that protect habitat resources (SB 9).
Zoning Code
The City of Carmel-by-the-Sea Zoning Code (City Municipal Code Title 17, Chapter 17.08- Residential Zoning Districts) establishes regulatory standards that dictate the type, location, density, and scale of residential development within the City’s boundaries. Below are the four primary zoning districts within the city that allow for residential uses:
R-1 Single-Family Residential District; and
R-4 Multifamily Residential District.
In addition, the following zoning district provides for some residential uses above commercial uses or on ground floor after review and approval of a conditional uses permit. SC Service Commercial
CC Central Commercial District; and
RC Residential and Limited Commercial.
The following public and quasi-public zoning districts also permit limited residential uses:
P-2 Improved Parklands (Park and Recreation District); A-2 Community and Cultural (Other Public District); and A-3 Senior Citizen Facility (Other Public District).
The City of Carmel-by-the-Sea Municipal Code (CMC) provides zoning regulations that are more specific than the General Plan Land Use designations. The R-1 (Single-Family Residential) district provides an appropriate land area for permanent single-family residential uses and structures and to enhance and maintain the residential character of the City. The R-4 (Multifamily Residential) district is intended to serve two purposes: 1) to provide an appropriate location for a mix of multifamily residential dwelling units convenient to the commercial area; and 2) to serve as a buffer or transitional zone between the commercial area and the single-family residential district.
Commercial zoning districts that permit residential uses include:
The Central Commercial (CC) District, which is intended to provide an appropriate location for a broad range of retail, residential and service uses. Uses which generate high pedestrian traffic and which do not have large space requirements are appropriate in this district. Residential uses are appropriate on the second floor of structures.
Attachment 2
Appendix B – Housing Constraints B-6 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 The Service Commercial (SC) District, which is intended to provide an appropriate location for services, offices, residential and limited retail activities that primarily serve local needs. This district is intended to provide a distinct transition between the more intense activities in the CC district and the less intense activities in the districts on its periphery. Mixed uses of commercial and residential activities are appropriate throughout this district. The Residential and Limited Commercial (RC) District seeks to provide an appropriate location for permanent and transient residential uses, service and office uses, and limited retail uses that do not adversely impact the residential neighborhood. This district is intended to provide a transition and buffer between the more intense activities in the CC and SC districts and the less intense activities in the R-1 and R-4 districts.
Certain public and quasi-public zoning districts also permit limited residential uses. The Park and Recreation (P-2) District permits single-family, senior citizen housing, and family day care uses which are limited to the use and maintenance of existing buildings for nonprofit organizations, governmental buildings and uses, and residential use. Sites located in the Community and Cultural Center (A-2) District and Senior Citizen Facility (A-3) District permit senior citizen housing outright.
Table B-2, Residential Uses Permitted by Zone, shows residential uses, the zoning districts in which they are permitted, and whether they are permitted by right (without discretionary action) or with a conditional use permit (CUP). The City’s Municipal Code is available online:
(https://www.codepublishing.com/CA/CarmelbytheSea/).
Use Permits
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. The UP requirement for residential developments greater than 22 du/ac is a multi-family residential and affordable housing constraint, particularly considering UP specific findings are applied to affordable developments. Municipal Code Sections
17.64.190 Residential Construction at Densities Between 33 and 44 Units per Acre and 17.64.230 Affordable Housing – Residential Construction at Densities Between 45 and 88 Units Per Acre outline criteria and findings for developments that request a bonus density (City program) or a density bonus. 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 which limits the number of units, particularly for smaller projects, and affects the financial feasibility of the proposed development.
Attachment 2
Appendix B – Housing Constraints B-7 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Table B-2 Residential Uses Permitted by Zone
Residential Use
Residential Zoning
Districts Commercial Zoning Districts
Public and Quasi-Public Districts
(Park and Recreation & Other
Public Districts)
R-1 R-4 CC SC RC P-2 A-2 A-3
Single-Family P P C-L-5 C C P-L-1 - -
Accessory Dwelling Units
Accessory Dwelling Unit (Interior) P P - - - - - -
Accessory Dwelling Unit
(New Structure) P P - - - - - -
Class I Accessory Dwelling Unit P - - - - - - -
Class II Accessory Dwelling Unit P - - - - - - -
Studio P P - - - - - -
Guesthouse (Noncommercial) C - - - - - - -
Multifamily Dwellings
0-22 dwelling units/acre - P P P P - - -
22 dwelling units/acre - C - - -
23-33 dwelling units/acre - - C C C - - -
34-44 dwelling units/acre - - C C C - - -
45-88 dwelling units/acre - - C C C - - -
Senior Citizen Housing R-L-5 P P P P P-L-1 P P
Family Day Care
Small Family R-L-5 P - P P-L-1 - -
Large Family - C-4 - C C P-L-1 - -
Group Residential - C - - - - - -
Appendix B – Housing Constraints B-8 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Residential Use
Residential Zoning
Districts Commercial Zoning Districts
Public and Quasi-Public Districts
(Park and Recreation & Other
Public Districts)
R-1 R-4 CC SC RC P-2 A-2 A-3
Transient Rental, Legal Nonconforming - R-L-6 C-L-7 C-L-7 C-L-7 - - - Transient Rental, Housing Incentive - R-L-7 C-L-8 C-L-8 C-L-8 - - - SOURCE: CMC Title 17 Zoning 2023
NOTE: Key:
(P) permitted use classifications.
(L) use classifications that are permitted, subject to certain specific limitations noted by the number designations and listed at the end of Schedule II-1 (CMC Section 17.08.040) and Schedule II-B (CMC Section 17.14.030). (C) use classifications permitted after review and approval of a conditional use permit by the Planning Commission. Conditions or standards may apply to these uses, noted by the number designations and listed at the end of Schedule II-1.
(—) prohibited
Residential Districts Specific Limitations and Conditions R-L-1. Limited to advertising, consumer credit reporting, secretarial and court reporting, equipment maintenance and repair, personnel supply services, and nonretail computer services and repair.
R-L-2. Allowed only on existing quasi-public use sites established prior to December 1, 1980, or added as an accessory use to such existing uses.
R-L-3. Limited to existing units established prior to January 1, 1967, and/or authorized by a use permit issued between 1967 and 1990. *Note: These provisions approved by voter referendum.
R-L-4. Limited to existing commercial spaces established prior to 1993 and occupied by commercial uses continuously since that time.
R-L-5. Limited to occupancy within a single-family residence.
R-L-6. Limited to permits approved prior to the adoption of Ordinance 2019-03.
R-L-7. Limited to transient rental units approved through the issuance of a conditional use permit as an incentive for the creation of new housing units. See CMC 17.14.040(W)(2)(b).
Commercial Districts Specific Limitations and Conditions C-L-1. Limited to advertising, consumer credit reporting, secretarial court reporting, equipment maintenance and repair, personnel supply services, and nonretail computer services and repair.
C-L-2. Allowed only as accessory use to gasoline stations and limited to a maximum of 300 square feet. No sales of alcohol are permitted. See CMC 17.14.040(D)(2) and (J)(2).
C-L-3. Any establishments with activities generating noise, odors, deliveries by large vehicles, high traffic by customers, or requiring large storage needs are not permitted.
C-L-4. Limited to offices for the following categories: operators of nonresidential buildings, apartment buildings, dwellings, real estate agents and managers, and title companies.
C-L-5. Limited to sites that are already developed with a single-family dwelling, or that were originally developed as, or used as, a single-family dwelling but have since been converted to another use. Existing single-family dwellings can be maintained, altered, repaired and/or redeveloped. R-1 district floor area ratio standards shall apply to these sites.
C-L-6. Subject to the same regulations as apply to other family residential dwellings in the same zone.
C-L-7. Limited to permits approved prior to the adoption of Ordinance 2019-03.
C-L-8. Limited to transient rental units approved through the issuance of a conditional use permit as an incentive for the creation of new housing units. See CMC 17.14.040(W)(2)(b).
Public and Quasi-Public Districts Specific Limitations and Conditions P-L-1: Limited to the use and maintenance of existing buildings for nonprofit organizations, governmental buildings and uses, and residential use.
P-L-2: Limited to facilities serving only park visitors and/or tenants of park buildings.
P-L-3: Limited to schools for theater arts.
P-L-4: Limited to workshops and classes connected with the arts.
P-L-5: Only as an accessory use, when in connection with any other authorized use.
Appendix B – Housing Constraints B-9 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 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 and removing this permit requirement where it does not add any necessary regulations related to safety and welfare 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.
Commercial Overnight Visitor Accommodation
Pursuant to Coastal Zone requirements, the City has recognized existing overnight visitor accommodation (hotel/motel/inn) as an important coastal visitor asset and economic base in the community. There are a number of older (some non-conforming) hotels/motels/inns in the R-1, CC, RC, and SC zoning districts, located in key areas of the City. These commercial establishments can be targeted for transition and the existing buildings rehabilitated converted to permanent multifamily residences.
In an effort to maintain a strong residential component within the City, the Municipal Code Section
17.56.060 includes numerical limits on the total number of hotel/motel/inn units; however, the numerical limits increase the value of the existing commercial units and act as a disincentive for older establishments to be refurbished into multi-family units. 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.
Enabling older overnight visitor accommodation commercial uses to relocate to more appropriate commercial sites while allowing the establishments to retain the current number of hotel/motel/inn rooms, would facilitate continued overnight tourism while diversify the housing stock by requiring the refurbishment of existing buildings to permanent rental housing. In order to encourage these properties to transition into permanent multi-family residences, and to retain the same number of existing overnight visitor accommodation rooms for coastal visitor access (as desired by the California Coastal Commission), the City will develop program 1.3.B to incentivize both the transfer of development rights of overnight visitor accommodations to other appropriate commercial sites while requiring the conversion of existing overnight visitor accommodation properties to permanent rental multi-family residences.
Additionally, the City has a number of overnight visitor accommodation properties that would greatly benefit from incorporating affordable on-site employee housing. These new rental permanent residential units would alleviate the current lack of housing options that many lower income employees that work at hotels/motels/inns 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.
Attachment 2
Appendix B – Housing Constraints B-10 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Overlay Zoning Districts
Overlay districts are zoning districts established by the City to carry out specific purposes. They are governed by a set of regulations that address specific subjects such as archaeologically significant resources or environmentally sensitive habitat areas. The City currently has overlay districts that address the following:
Archeological significance;
Parks;
Beach and Riparian areas;
Environmentally Sensitive Habitats;
Annexed County Lots; and
Downtown Conservation District.
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 affordable housing. The City will craft an housing priority overlay district that requires a minimum density of 33 du/ac in the Central Commercial (CC), Service Commercial (SC), and Residential and Limited Commercial (RC) District. This will encourage a higher unit yield and will thus improve the financial viability of projects by increasing the unit count.
Development Standards
With the exception of building heights, development
standards in Carmel-by-the-Sea are typical for a small
residential community. As for building heights, the City limits building heights to two stories above ground and 30 feet or less, which can render higher allowable densities (up to 44 du/ac with affordable housing) unachievable.
The City has discussed the possibility of increasing height limits, but community resistance to increasing the height limit has been consistent and is primarily based on a desire to protect the historic character of the downtown. Some community members have suggested allowing mezzanines
as a third interior story, if it could be accomplished
without appearing as a three-story building. The Zoning Code permits multi-family dwellings in all commercial
districts and existing underutilized commercial spaces can be repurposed for residential uses.
I would even venture to say – as an
architect – if we protect the
character of the village and if we do
that well, we will actually be able to
create a planning document that will
more than cover the 349
number...that’s my professional
opinion on what the power of design
can do without an iota of sacrifice of
the character of this community. It’s
a hope, it’s a belief, and we just need
to work towards it together
November 17, 2022 Housing Ad Hoc
Committee Community Meeting Attendee
Attachment 2
Appendix B – Housing Constraints B-11 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 The Community and Cultural Center District (A-2) allows senior citizen 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 standards adds uncertainty to the development process. Amending the A-2 zoning district with clear setbacks, height, and landscaping requirements will add clarity and remove a development constraint. The City of Carmel-by-the-Sea has included a new program in this 6th Cycle Housing Element to amend the A-2 District to include clear development standards as a means to encourage affordable senior housing.
Table B-3, Residential Development Standards, summarizes residential development standards in Carmel-by-the-Sea.
Density Bonus
Floor area bonuses are available for projects in the commercial zones that include an intra-block walkway and/or a courtyard (see CMC 17.14.140.D.2). The same floor area bonus is available for projects that include affordable units. This indicates that the City equally values walkways or courtyards and affordable units. The City may consider making walkways and/or courtyards a requirement, and keep or increase the floor area bonus for affordable units.
Site Plan and Design Review
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 and by extension housing for a less affluent and diverse population. In this way, Carmel has in some ways become a victim of its own success. Many of the actors, artists, and writers who made Carmel their home in the early 20th century came from modest beginnings and travelled to the area not to live in custom luxury homes, but to experience and become part of a “rich” artistic community.
They came for inspiration, not exclusivity.
Part of the challenge, then, is for Carmel to find a way back to its roots—to provide space again for the next generation of the artistically gifted who have yet to make their mark on the world, a space that contains a full mix of incomes and backgrounds within which the artist can find meaning and inspiration.
Attachment 2
Appendix B – Housing Constraints B-12 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Table B-3 Residential Development Standards
Zoning Minimum Lot
Area (sq ft)
Setbacks
Maximum
Height1,2,3
Maximum
Floor Area
(sq ft)
Maximum Lot Coverage or
Density (R-4) Front (in feet) Minimum Side Yard
(in feet) Rear
Residential Districts
R-1 2,5001
4,000 15
Interior Street
Side
15 24 feet
2 stories
Less than 45
percent of the area
of the building site2
2,4003
22% of the base floor area
3 5
R-4 4,000
No setback.
5 – if across from R-4, RC;
7.5 across from R-1
No setback4, 5 N/A
No setback.
10 – if abutting
R-1 or R-4
26 feet
2 stories N/A 33 units/acre44 units/acre with density bonus Commercial Districts
CC N/A
No setback.
5 – if across from R-4, RC;
7.5 across from R-1
No setback4 N/A
No setback
10 – if abutting
R-1 or R-4
30 feet
2 stories
N/A1
One story – 95% of the site area
Two story – 135% of the site area
150% with 15% bonus
SC N/A
No setback.
5 – if across from R-4, RC;
7.5 across from R-1
No setback4 N/A
No setback
10 – if abutting
R-1 or R-4
30 feet
2 stories
N/A
One story – 95% of the site area
Two story – 135% of the site area
150% with 15% bonus
RC N/A
No setback.
5 – if across from R-4, RC;
7.5 across from R-1
No setback4 N/A
No setback
10 – if abutting
R-1 or R-4
26 feet
2 stories
N/A
One story – 70% of the site area
Two story – 80% of the site area
95% with 15% bonus
SOURCE: CMC Title 17 2023
NOTE: 1. Lots of record in existence on February 4, 1948.
2. Applies to sites less than 4,000 square feet.
3. The maximum potential floor area on a site is the sum of the base floor area plus any bonus floor area. The City uses a sliding scale to determine maximum floor area and site coverage.
4. If abutting R-4 or RC district a side yard setback of at least 5 feet along at least 50% of each side property line. The remaining 50% requires no setback unless the faces a public street. Any site abutting R-1 district requires a setback of five feet along entire side yard.
5. Buildings shall not be less than six feet from any other buildings on the same site.
Appendix B – Housing Constraints B-13 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 The following subsection provides a detailed description of Carmel’s design review process.
Residential Design Review Process
The typical residential development review process for Carmel-by-the-Sea generally falls under two design study “tracks” Track 1 and Track 2.
Residential Track 1 Design Study
Track 1 Major Design Study Applications are projects that can be approved at the staff level and typically do not require a public hearing. “Track 1 Major” projects are projects involving additions of less than 10 percent of the existing floor area, or projects with multiple minor components (Track 1 Minor) that together add complexity and require a more detailed review.
The Track 1 Major review is also limited to projects that: 1) do not require significant cuts to the roots/limbs of any “significant” or “moderately significant” trees; 2) do not require the demolition or substantial alteration of any dwelling unit; and 3) are sited and designed to protect public views to and along the ocean and scenic coastal access.
The major steps involved with a Track 1 Design Study Application are as follows:
1. Submit a Design Study Application – This is the formal project application.
2. Staff Review and Decision – Staff will review the application for completeness and consistency with the Zoning Code and the Residential Design Guidelines. If the application is incomplete or inconsistent with the Zoning Code or the Design Guidelines, staff will notify the project applicant of the changes that are required. If the application is complete and approvable, staff will notify the applicant that the application has been approved. If approved, an approval packet is completed and issued. The approval packet consists of (1) an Approval Letter, (2) Conditions of Approval, (3) a Notice of Approval, (4) an Affidavit of Posting of the Notice of Approval, and (5) stamped approved plans. The Approval Letter will inform the applicant if a Building Permit or Notice of Authorized Work is required.
3. Noticing/Appeal Period - The Notice of Approval is required to be posted on-site by the applicant for a 10-calendar day appeal period. For Track 1 Major projects, the approval notice is also mailed by the City to neighbors within 100 feet of the property.
4. Building Permit/Notice of Authorized Work – Following the end of the appeal period, and assuming no appeals are filed, the applicant may apply for either a Building Permit or, if not applicable, will receive a Notice of Authorized Work.
Residential Track 2 Design Study
Track 2 Design Study Applications are for new residential construction, large additions and substantial alterations that require Planning Commission approval. The purpose of the Track 2 Design Study is to promote orderly development, to ensure high quality neighborhood design that is Attachment 2
Appendix B – Housing Constraints B-14 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 harmonious with its surroundings, to implement the General Plan, and to preserve and promote the visual character of the City. The major steps involved with a Track 2 Design Study Application are as follows:
1. Submit a Preliminary Site Assessment Application – This is required for all Track 2 Projects.
After the assessment is completed by Planning and Forestry staff, the applicant will move on to submitting their project application.
2. Submit a Design Study Application – This is the formal project application. Planning staff will review it for completeness and provide early feedback.
3. Participate in a Forest and Beach Commission Hearing (if tree removal is proposed): A request to remove or prune a significant tree must be approved by the Forest and Beach Commission (FBC) prior to determining completeness of the application. The removal or pruning of any tree will require a separate tree removal application be submitted (Permit Type: Tree with Construction).
4. Install Staking and Flagging (story poles) – “Story poles” provide a visual representation of the proposed project for the public and the Planning Commission. Story poles must be installed and heights certified by a California licensed surveyor or civil engineer at least 10 days prior to the scheduled Concept Hearing. To avoid having to relocate or reposition the story poles, it is recommended story poles be installed after the application has been deemed complete.
5. Participate in a Historic Resource Board Hearing (properties located on the City’s Inventory of Historic Resources) – Projects on historic sites are subject to additional review from a cityretained historical consultant and review by the Historic Resources Board (HRB) prior to consideration by the Planning Commission. The historic status of a property will be determined during the Preliminary Site Assessment, if not already documented.
6. Participate in a Concept Hearing – The Concept Review phase by the Planning Commission (PC) will address site planning, access, building massing and neighborhood design issues, such as privacy and view impacts. Projects are evaluated using both the development standards in the Zoning Code and the Residential Design Guidelines – Introduction and Design Concept Review.
7. Obtain a Volume Study – Each site is permitted a certain amount of exterior volume. Volume is defined as the total space occupied by all structures located above average grade. Following Concept acceptance by the Planning Commission, staff will send the architectural design plans to a City-retained architect/engineer to calculate the volume. A deposit will be collected at the time of application submittal and the unused balance will be returned to the applicant.
8. Participate in a Final Details Hearing – In this review by the Planning Commission (PC), the project is reviewed for compliance with the City’s Residential Design Guidelines – Final Details Review. Issues such as landscaping, architectural character, and exterior materials are evaluated.
Attachment 2
Appendix B – Housing Constraints B-15 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023
9. Final Approval and Appeal Period – The Planning Commission’s approval is subject to a 10- working day appeal period. Story poles must remain in place until the appeal period has expired.
At the conclusion of the appeal period, and assuming no appeals are filed, the applicant may proceed with submitting an application for a Building Permit. If an appeal is filed, the appeal will be considered by the City Council at the next available council meeting.
10. Decisions of the City Council are final unless the project is located within the Coastal Commission appeal jurisdiction. In such cases, the decision of the City Council can be appealed to the Coastal Commission.
Commercial Design Review Process
The City has established two tracks for design review of projects proposing new construction, alterations, rebuilds, additions, demolitions, and other exterior design changes in the central commercial (CC), service commercial (SC) and residential and limited commercial (RC) districts and the multifamily residential (R-4) district. Commercial development is subject to the City’s Commercial Design Guidelines (2000) and Carmel Plaza Storefront Design Guidelines (2001) as applicable.
Commercial Track One Design Review
The Director may approve Track One applications for design changes in all commercial zoning districts and the R-4 district based on a determination that such projects comply with the Zoning Code and all applicable commercial design guidelines.
Commercial Track Two Design Review
The Planning Commission reviews and approves Track Two applications. This is a discretionary process for reviewing substantial design changes in commercial zoning districts and the R-4 district and involves at least one public hearing.
Historic Resources
Upon submittal of a design study, building permit or other application for alteration of a property, the City shall determine if the subject property contains historic
resources and is therefore eligible for the Carmel Inventory of Historic Resources (updated annually). If it is
determined that the property contains historic resources, the applicant shall be required to obtain a determination of consistency with the Secretary of the Interior’s Standards for the Treatment of Historic Properties as part of the project review process, as required by CEQA and state law.
I want to keep the village feel of
the town.
November 17, 2022
Housing Ad Hoc
Committee Community
Meeting Attendee
Attachment 2
Appendix B – Housing Constraints B-16 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Minor Alterations
Determinations of consistency for minor alterations shall be reviewed by City staff for compliance with the Secretary of the Interior’s Standards for the Treatment of Historic Properties. Minor alterations that are found not to comply with the Secretary’s Standards shall be considered and processed as major alterations requiring an evaluation by a qualified professional and final action by the Historic Resources Board. Decisions of the Board are appealable to the City Council.
Major Alterations
Determinations of consistency for major alterations shall require an evaluation by a qualified professional and shall be reviewed and approved by the Historic Resources Board. Decisions of the Board are appealable to the City Council.
The City’s current approach to conserving historic resources does not present a constraint to constructing new residential units.
Building and Fire Code
Building and safety codes are adopted to preserve public health and safety, and ensure the construction of safe and decent housing. These codes and standards also have the potential to increase the cost of housing construction or maintenance. The City’s Building Code is currently based on the latest, 2022 version of the California Building Code, along with all required updates (City Ordinance No. 2022-004). The City has not made any amendments to the Code that might diminish the ability to accommodate persons with disabilities or other special-needs groups.
The 2022 California Fire Code as adopted by the City and effective January 1, 2023 (found in Chapter 15.55 of the CMC), prescribes the issuance of Fire Code Operational Permits for operations, processes, and/or activities that present higher levels of risk to life and property.
Operational permits allow the City to better track specific hazards and to assure that safeguards for hazardous operations, processes, and activities are maintained in accordance with local, State and Federal Regulations.
Carmel Municipal Code Title 8.32.100, Section 102.1(5) requires new structures, or existing structures to which additions, alterations or repairs are made that involve the addition, removal or replacement of fifty percent or greater of the linear length of the walls of the existing building (exterior plus interior) within a five-year period, are required to be outfitted with an automatic fire sprinkler system. Fire sprinklers shall be addressed as part of the building permit review. It is recognized that the costs of an automatic fire sprinkler system can vary considerably based on various factors including water service capabilities, whether a new meter is required, and the type of fire suppression system required for the application in question. However, it is generally recognized by City staff that installing fire sprinklers can be expensive and can present challenges from a water flow standpoint. Parts of Carmel have low water pressure affecting the ability to install sprinklers, which in-turn significantly increases construction costs if additional on-site infrastructure is needed (water holding tanks, pumps, etc.) to serve the sprinkler system.
Attachment 2
Appendix B – Housing Constraints B-17 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Additionally, vehicular access within the community is affected by steep, hilly terrain and many secondary ridge lines. Many streets are narrow and winding, restricting the speed at which a fire apparatus may safely respond and also increasing the time lapse between fire detection and apparatus arrival, during which a household will face the fire or other emergency on their own.
The State Fire Marshal’s Office, and the City of Carmel-by-the-Sea, have adopted regulations for protection of structures built in areas susceptible to wildland fires under California Building Code Chapter 7A (2019 edition). Exterior wildfire exposure protection within the City of Carmel-by-theSea is prescribed in Municipal Code Title 15, Buildings and Construction. Protective features include such active measures as combustible vegetation management and sprinkler systems; and passive protection features such as fire resistive roofing and building opening protection. The extent of protection is determined by the location of the property. The currently adopted (October 2008) California Department of Forestry and Fire 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.” 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. Within the areas identified in the “Very High Fire Hazard Severity Zone,” additional construction features are mandated. These typically include ignition resistant materials, spark protection for ventilation openings, and exterior window and door protection. Detailed requirements are contained in Chapter 7A of the California Building Code and in Carmel Municipal Code Titles 8 and 15.
The City finds that the adopted Building Code and Zoning Code enforcement activities are not constraints to the development, maintenance or preservation of housing.
Special Housing Topics
This section discusses several special housing topics that have been the subject of recent attention in the California Legislature.
Accessory Dwelling Units (ADUs)
An accessory dwelling unit (or ADU) is defined as an attached or detached residential dwelling which provides complete independent living facilities for one or more persons, including permanent provisions for living, sleeping, eating, cooking, and sanitation, which is located on the same parcel as a single-family dwelling (CMC 17.68.030). Based on their relatively small size, and because they do not require paying for land or major new infrastructure, ADUs and Junior ADUs (JADU) are considered affordable by design. ADUs can 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. Additionally, the City has a high rate of second home (vacation) ownership.
Encouraging ADUs and JADUs may be appealing to second home owners because ADUs will Attachment 2
Appendix B – Housing Constraints B-18 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 provide a higher level of security to the property if there is a full-time resident, and will add an income stream to a property that lies vacant for a high proportion of the year. Most importantly, ADUs and JADUs can provide much-needed affordable smaller housing units.
The City’s ADU ordinance was last updated in 2017 (Ord. 2017-10 § 1 (Exh. A), 2017). Carmel-bythe-Sea is following the requirement of the state law. The City is in the process of updating its ADU Ordinance to incorporate state laws that have expanded since 2017, and to clarify the ADU permitting process for property owners.
In recent years, the California Legislature has passed a series of bills aimed at encouraging singlefamily homeowners to add ADUs to their property by requiring local jurisdictions to adopt regulations to facilitate their production and streamline their approval. The State passed legislation in 2017, 2019, 2020, and 2021 to further assist and support the development of ADUs, including By Right approval for units less than 800 square feet. ADUs are also permitted in commercial structures per state law.
The City permits one guesthouse on sites of 6,000 square feet or greater upon approval of a use permit. Guesthouses shall contain no food preparation facilities of any kind, but are permitted to have a bathroom with a toilet, sink and bathing facility. A guesthouse on any building site may be converted to an accessory dwelling unit, generally requiring the permitting of kitchen sink and facilities. Converting existing guesthouses to fully functional ADUs, or JADUs, represents a costeffective method to increase the City’s housing stock, requiring only a building permit. These opportunities could be strong candidates for prioritization of the City’s limited water distribution.
The City is also exploring the development of standardized pre-approved ADU plans. 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.
The City of Carmel-by-the-Sea has included a new program in this 6th Cycle Housing Element to revise its Municipal Code to be consistent with ADU and JADU state law, and develop standardized ADU plans.
Manufactured Housing / Mobile Homes
There are no mobile home parks located in Carmel-by-the-Sea. The City permits mobile homes on a permanent foundation as a single-family residential use, subject only to the design review requirements as any other single-family residential use in the same zone pursuant to state law California Government Code 65852.3. Such housing is subject to the same development standards and design review criteria as traditional forms of housing construction. A new program to amend the Municipal Code to clarify this type of housing as a permitted use in the R-1 zoning district is included in the Housing Element.
Attachment 2
Appendix B – Housing Constraints B-19 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Multi-Family Rental Housing
Multi-family and duplex housing units constitute approximately 13 percent of Carmel’s housing stock. Multi-family housing up to 22 du/ac is a permitted use in the R-4, CC, SC, and RC Districts.
Multi-family housing greater than 22 du/ac is a conditionally allowed use in all those same districts.
Senior housing is allowed in all districts.
The conditional use permit (CUP) for residential developments greater than 22 du/ac is a development constraint to higher density development. Site design review is required for multifamily projects and the CUP process adds very limited value to the review process for projects of this size and scale. In order to lessen this regulatory constraint, the City will amend the Code to eliminate unnecessary use permits.
Objective Design and Development Standards
The City currently lacks a strictly objective set of design guidelines. Detailed design guidelines for R-1 and high-level design guidelines for commercial zones are presently in place; however, the current design guidelines include a mix of objective and subjective criteria. While the City’s existing design guidelines are being updated this year, the City is not developing a set of strictly objective standards for multi-family affordable projects.
The lack of “Objective Design Standards” currently poses a constraint to residential development.
Guidelines that are subjective, or zoning districts that lack clear development standards, increase uncertainty and risk for housing developers. Objective Design Standards will provide a measure of clarity that proposed developments will be measured against and will provide the community with assurance that developments will conform with measurable objective standards. Amending the A-2 zoning district with clear setbacks, height, and objective design standards will add clarity and remove a development constraint.
Community Care Facilities
To maintain compliance with the Lanterman Developmental Disabilities Services Act (Lanterman Act), the City currently permits small residential or community care facilities serving six or fewer individuals in all residential zoning districts By Right and facilities serving seven or more individuals in all residential zoning districts with approval of a Conditional Use Permit (CUP). Larger community care facilities (greater than six (6) persons) may be required to meet certain conditions, including restrictions on hours of operation, security, loading requirements, and management. These conditions are comparable to all similar uses within the designated zoning district and would not impose constraints to the development of care facilities.
Transitional and Supportive Housing
Transitional housing is generally defined as a facility that provides shelter for homeless individuals, and generally involves integration with other social services and counseling programs to assist in the transition of self-sufficiency through the acquisition of permanent income and housing. Transitional Attachment 2
Appendix B – Housing Constraints B-20 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 housing is temporary housing (generally six months to two years) for a homeless individual or family who is transitioning to permanent housing. This housing can take several forms, including group housing or multi-family units, and often includes a supportive services component to allow individuals to gain necessary life skills in support of independent living. There are no known transitional housing facilities in the City.
Supportive housing is generally defined as permanent, affordable housing with on-site services that help residents transition into stable, more productive lives. Services may include childcare, afterschool tutoring, career counseling, etc.
The City’s Municipal Code permits transitional and supportive housing By Right in all residential zoning districts, regardless of the number of persons the facility serves compliant with SB 2 passed in 2007. The 6th Cycle Housing Element includes a program to update the Municipal Code to further clarify transitional and supportive housing in the R-1 and R-4 zoning district as permitted uses.
Emergency Shelters
Emergency shelters are generally defined as a facility which provides immediate short-term housing for homeless individuals.
Emergency shelters for the homeless is defined as a residential facility, lodging house, or dwelling, where no rent is paid, that provides temporary accommodation to homeless persons and/or families. Pursuant to state law (Senate Bill (SB) 2), jurisdictions with an unmet need for emergency shelters are required to identify a zone(s) where emergency shelters will be allowed as a permitted use without a conditional use permit or other discretionary permit. The identified zone must have sufficient capacity to accommodate the shelter need, and at a minimum provide capacity for at least one year-round shelter. Permit processing, development and management standards for emergency shelters must be objective and facilitate the development of, or conversion to, emergency shelters.
As described in Appendix A – Housing Needs & Fair Housing Report, the 2022 Monterey Homeless Count and Survey Comprehensive Report prepared by Applied Survey Research estimated there was only one transient resident in the City as of 2022. There are no emergency shelters located in the City.
However, the Zoning Code allows siting of emergency shelters as community social service facilities, which are defined as “Any noncommercial housing facility, such as homeless shelters or emergency shelters, which may also provide meals, showers, and/or laundry facilities. Specialized programs and services related to the needs of the residents may also be provided. This classification excludes transitional housing facilities that provide long-term living accommodations.” Community social service facilities are permitted By Right in the CC, SC, and RC districts as well as with a CUP in the R-1 and R-4 districts. In addition, shelters for families and single women with children are permitted at all churches in the community as a part of their social outreach functions. Religious facilities are conditionally permitted in the R-1 district (only on existing quasi-public use sites established prior to December 1, 1980, or added as an accessory use to such existing uses) and allowed with a conditional use permit (CUP) in the RC district.
Attachment 2
Appendix B – Housing Constraints B-21 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Low Barrier Navigation Centers
Assembly Bill (AB) 101, adopted in 2019, requires approval “by right” of low barrier navigation centers that meet the requirements of state law. A “Low Barrier Navigation Center” is a housing first, low-barrier, service-enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. If the City receives applications for these uses, it will process them as required by state law. A program has been included in the element to develop By Right procedures for processing low-barrier navigation centers.
Senior Housing
As previously noted, several zoning districts within the City already permit and accommodate for senior housing. The A-2 zoning district (Cultural and Community District, i.e., the Sunset Center) and the A-3 zoning district (Senior Citizen Facility District) permits By Right housing for seniors. 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.
Constraints for People with Disabilities
Both the Federal Fair Housing Act and the California Fair Employment and Housing Act impose an affirmative duty on local governments to make reasonable accommodations (i.e., modifications or exceptions) in their zoning and other land use regulations when such accommodations may be necessary to afford disabled persons an equal opportunity to use and enjoy a dwelling. For example, it may be a reasonable accommodation to allow covered ramps in the setbacks of properties that have already been developed to accommodate residents with mobility impairments. The City adopted a reasonable accommodation policy (City Council Policy C11-01) in July 2011. This policy provides a reasonable accommodation in the land use and zoning context to ensure equal access to housing and facilitate the development of housing for individuals with disabilities. The policy provides individuals with disabilities or developers of housing for people with disabilities flexibility in the application of land use, zoning and building regulations, policies, practices and procedures.
Community Care Facilities
The City currently permits community care facilities in several zoning districts. Community care facilities refers to facilities providing non-medical care and supervision under license from the California Department of Social Services. This classification excludes hospitals, residential care facilities, family day care homes, day care centers, and transitional housing. Community care facilities are permitted in the CC, SC, and RC districts as well as by conditional use permit in the R-4 district.
Residential Care Facilities
The City also permits residential care facilities within certain zoning districts. Residential care facilities include facilities that are licensed by the State of California to provide living Attachment 2
Appendix B – Housing Constraints B-22 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 accommodations and 24-hour, primarily non-medical care and supervision for persons in need of personal services, supervision, protection, or assistance. Living accommodations are shared living quarters with or without separate kitchens or bathrooms for each room or unit. This classification includes facilities that are operated for profit as well as those operated by public or nonprofit institutions.
Group Homes
The Zoning Code defines group residential as “Shared living quarters without separate kitchens or bathrooms for each room or unit, including boardinghouses, dormitories, and private residential clubs, but excluding guesthouses.” As described above, state-licensed group homes are permitted under the regulations for Community Care Facilities and Residential Care Facilities. Unlicensed group homes are not currently identified as a permitted use in any zoning district.
The City has not identified any zoning or other land-use regulations that could discriminate against persons with disabilities or impede the availability of such housing for these individuals. Examples of the ways in which the City facilitates housing for persons with disabilities through its regulatory and permitting procedures are:
As discussed above, the City Zoning Code allows residential care facilities for six or fewer persons subject to the same standards and procedures as apply to other residential dwellings of the same type in the same zone.
The City has also adopted reduced parking requirements (0.33-space per unit or bed) for Senior Housing, Cooperative Housing, Group Care Facilities, Nursing Homes and Other Residential Care Facilities. Retrofitting of dwellings to meet the needs of persons with disabilities is also an eligible activity under the City’s Housing Rehabilitation Program. Construction and rehabilitation activities are also subject to the Federal Americans with Disabilities Act requirements and the City is active in promoting ADA compliance.
The City defines family as “an individual or two or more persons living together as a single nonprofit housekeeping unit and sharing common living, sleeping, cooking, and eating facilities,” which is consistent with state law.
Single-Room Occupancy (SRO)
Single room occupancy (SRO) hotels are one-room units intended for occupancy by a single individual. It is distinct from a studio or efficiency unit, in that a studio is a one-room unit that must contain a kitchen and bathroom. Although SRO units are not required to have a kitchen or bathroom, many SROs have one or the other. The City’s Zoning Code does not explicitly define single room occupancy housing, although CMC 17.08.050(F) allows guesthouses, studios, and multifamily units as small as 400 square feet. The Code also requires that all multi-family projects of three or more units include a mix of unit sizes, and at least 25 percent of all units are required to be 400 to 650 square feet in size.
Attachment 2
Appendix B – Housing Constraints B-23 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Short-Term Rentals
In order to preserve Carmel-by-the-Sea’s residential character, no home or accessory dwelling unit may be rented for less than 30 consecutive days in a residential zoning district. This current restriction is intended to ensure that residential units are available for full-time residential use. The City has a high number of motels and hotels to service the tourism industry and transient guests.
Community Planning and Building Fees
The City charges fees and assessments to cover the costs of processing permits. Processing fees are commensurate with the fees for the rest of the County of Monterey. Compared to the high costs of undeveloped, unimproved land and high site development costs in the City, processing and connection fees are negligible and, therefore, do not present a constraint to development. However, the partial waiving of such fees would help reduce the cost of any proposed affordable housing. The City’s current fee schedule is shown below in Table B-4, Summary of Community Planning & Building Fees (2022-2023).
Table B-4 Summary of Community Planning & Building Fees (2022-2023) Application/Permit Type Fee
Design Study and Review
Track 1 Design Review/Study - Minor $448 per application Track 1 Design Review/Study - Major $813 per application Track 1 Design Rev/Study-Streamline $203 per application Track 1 Design Rev/Study - Referral to Planning
Commission $1,120 per application in addition to the base Track 1 fee Track 1 Design Rev/Study-Referral to Historic
Resources Board $1,120 per application in addition to the base Track 1 fee Track 2 Design Review - Minor $2,360 per application
Track 2 Design Review - Major $5,392 per application
Track 2 Design Rev - Major New Commercial Building $2,438 per application plus a deposit determined by staff with charges at the fully allocated hourly rates for Project Planner Preliminary Site Assessment $1,183 per application
Volumetric Analysis $135 per application plus $1,500 deposit with charges at the fully allocated hourly rates plus any outside costs.
Use Permit and Other Services
Use Permit $2,730 per application
Use Permit Amendment $1,818 per application
Temporary Use Permit $365 per application
Restricted Comm Use Transfer Request $521 per application Water Credit Transfer Request $3,663 per application
Variance $2,235 per application
Attachment 2
Appendix B – Housing Constraints B-24 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Application/Permit Type Fee
Pre-Application Review - Staff $1,683 per application with 50% of this fee credited towards future planning fees for this project.
Preliminary Review - Planning Commission $3,485 per application with 50% of this fee credited towards future planning fees for this project.
Coastal Dev. Permit - Development $135 per application - Added to other Planning fees Coastal Dev. Permit - Event $1,417 per application
Tobacco Retail License Current fee as adopted by the Monterey County Board of Supervisors
Amendments, Annexations, and Agreements
Specific Plan/Specific Plan Amendment
General Plan Amendment
Sphere Of Influence Amendment
Zoning Code Amendment
$5,210 deposit with charges at the fully allocated hourly rates plus outside costs
Annexation
Development Agreement
$10,420 deposit with charges at the fully allocated hourly rates plus outside costs
Environmental Review, Maps, and Lot Lines
Environmental Review (IS/ND/EIR) Contract cost plus 10% Environmental Notice of Exemption $156 per application plus County fees Mitigation Monitoring $3,126 deposit with charges at the fully allocated hourly rates plus outside costs.
Tentative/Final Map $4,168 deposit with charges at the fully allocated hourly rates plus any outside costs.
Amended Final Map $1,042 deposit with charges at the fully allocated hourly rates plus any outside costs.
Certificate Of Compliance $610 per application plus actual contract cost Lot Line Adjustment/Subdivision - Planning Commission $542 per application plus actual contract cost Lot Merger - Staff Review $938 per application plus actual contract cost Historic Evaluation
Prelim (Phase 1) Historical Evaluation - Staff $474 per application Phase 1 Historic Evaluation - Qualified Professional $271 per application plus actual cost for Historian review with $1,500 deposit
Phase 2 Historic Evaluation-Historic Resources Board
Review
$1,579 per application plus actual cost for Historian review with $1,500 deposit
Appeal To Historic Resources Board $2,120 per application plus actual cost for Historian review with $1,500 deposit
Mills Act Contract Processing $3,584 per application
Determinations, Extensions, and Appeals
Planning Commission Code Determination $1,214 per application Zoning Compliance Determination $573 per application
Time Extension - Staff $313 per application
Time Extension - Planning Commission $907 per application Attachment 2
Appendix B – Housing Constraints B-25 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Application/Permit Type Fee
Time Extension - City Council $1,099 per application
Public Hearing Continuance - Planning Commission $886 per continuance Public Hearing Continuance - Council $938 per continuance Appeal To Planning Commission $2,084 per appeal - Appeal in the Coastal Zone Appeal To City Council $2,084 per appeal - Appeal in the Coastal Zone Building Services
Building Relocation $1,938 per application
Large Family Day Care (Residential) $761 per application General Plan Update 3.5% of all Building & Safety permits Planning Technical Assistance Charge the fully allocated hourly rate for all personnel involved after 15 minutes.
Building Plan Check Based on Building and Safety Construction Valuation Building Inspection Based on Building and Safety Construction Valuation Building Re-Inspection $146 per re-inspection
Permit Application Extension $94 per extension (maximum of 4) Permit Extension $146 per extension (maximum of 2)
Building Permit Pre-Applic. Confer. $318 per application Building Single Trade Permit $167 per permit
On-Site Driveway Permit $271 per permit
Solar Plan Check/Inspection Permit Plan Check - $318
Inspection - $135
Re-Roof Permit $255 per permit
Building Board Appeal $1,052 per appeal
Duplicate Inspection Card $63 per card
Building Technical Assistance Charge the fully allocated hourly rate for all personnel involved after 15 minutes.
Stop Work Investigation $568 per investigation plus double the permit fee Temporary Certificate Of Occupancy $224 per application Alternate Materials/Methods Review $214 per application plus actual cost of City Staff for all time over one hour.
Building Phased Work Request $302 per application
Landscape Plan Check/Inspection $281 per plan/inspection Building Technology Surcharge $8 per permit
Encroachment Permit
Temporary Encroachment Permit $219 per permit
Permanent Encroachment Permit Street Excavation - $766 per permit and $4.25/lineal foot Attachment 2
Appendix B – Housing Constraints B-26 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Application/Permit Type Fee
Other - $432 per permit and $4.25/lineal foot or $432 per permit and $2.13/lineal foot (aerial installation) Plus cost of damage to public right-of-way or street as determined by the Public Works Director.
Traffic control plan review/inspection $370 per review plus $210 per each additional review Use of credit card/ debit card 2.5% of charged amount
SOURCE: City of Carmel-by-the-Sea Fee Schedule Effective July 3, 2022 – June 30, 2023 In comparison with other jurisdictions in the County of Monterey, the fees in Carmel-by-the-Sea for new residential projects – both single-family and multi-family units – are generally in line. Table B-5, provides a comparison between the cities of Carmel-by-the-Sea and Pacific Grove, which are geographically, socioeconomically and demographically similar in size and types of residential development.
Table B-5 Comparison of the City of Carmel-by-the-Sea and the City of Pacific Grove Average Design Review Fees
Application Type(s) Carmel-by-the-Sea Pacific Grove
Staff Level Design/Counter Review $4481/$8132 $2303/9324 Design Review/Architectural Permit –
Single Family & Multi-Family $2,3605/5,3926 $3,3187/$4,0608 Planning Commission/Historic
Resources Board Referral or Appeal
$1,120 in addition to the base Track 1
fee
25 percent of base permit fee or $1,136
(whichever is greater)
SOURCE: City of Carmel-by-the-Sea Fee Schedule Effective July 3, 2022 – June 30, 2023; City of Pacific Grove Master Fee Schedule Fiscal Year 2022-23 NOTE:
1. Track 1 Design Review/Study - Minor
2. Track 1 Design Review/Study – Major
3. Counter Review & Determination – no new square footage
4. Counter Review & Determination - new square footage
5. Track 2 Design Review – Minor
6. Track 2 Design Review - Minor
7. Architectural Permit – Single Family
8. Architectural Permit – Multifamily four units or less
6. Architectural Permit – Single Family
The City is not a full-service municipality; several agencies and special districts levy fees on new development for the provision of basic urban services. These agencies and special districts include the following:
California American Water (Cal-Am);
Monterey Peninsula Water Management District;
Carmel Unified School District;
Attachment 2
Appendix B – Housing Constraints B-27 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Carmel Area Wastewater District;
Carmel Fire Department (service provided by contract with Monterey Fire Department; and Transportation Agency for Monterey County (TAMC).
Special district fees add to development costs in the City. Carmel is under the jurisdiction of the Monterey Peninsula Water Management District (water district) and receives its water from the California-American Water Company (Cal-Am).
Cal-Am charges non-refundable Connection Fees as determined by CPUC guidelines. The fee is based on the meter size which is as follows:
1. 5/8” Meter - $3,000 (single-family)
2. 1” Meter - $5,000 (small multi-family)
3. 1-1/2” Meter - $10,000 (large multi-family
4. 2” Meter - $16,000 (large volume requirement ex. hotel.) 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. According to the water district, the City, as of June 2023, has a total available water allocation of 2.661-acre feet, which represents only three (3) percent of the water district’s total available allocation across the district, which includes all of the Monterey Peninsula south to Carmel Valley and portions of the Santa Lucia Range. The current MPWMD permit fees are governed by the Fees and Charges Table (effective August 16, 2021) and start at $1,800 plus $90 per hour for more than 20 hours.
The Carmel Unified School District requires the payment of an impact fee of $0.49 per square foot for new residential construction. The school district does not offer any discounts for the payment of impact fees.
The Carmel Area Wastewater District charges a new residential connection fee of $8,242.66 and charges an annual rate of $1,005.94 for residential uses.
TAMC established a Regional Impact Fee (RDIF) program to address required mitigation for traffic impacts. Accessory Dwelling Units under 750 square feet are exempt from impact fees. Carmel-bythe-Sea is located with Zone 3: Peninsula/South Coast benefit zone and also subject to additional infill fee. Impact fees are calculated using an online spreadsheet and fees range from $4,599.04 for an Above Moderate single-family home, to $9,313.70 for a 5-unit Low-Income apartment to $28,161 for a 10-unit Above-Moderate condo or townhome. Impact fee discounts are applied to affordable units and are dependent on the affordability level.
Attachment 2
Appendix B – Housing Constraints B-28 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Fees charged by these outside agencies vary according to project types and size and increase development costs. The City does not control fees for outside agencies; but outside agency fees are a constraint and add to the overall cost of development. See Table B-6, Estimates of Total Development Fees Imposed, below.
Table B-6 Estimate of Total Development Fees Imposed
Single-Family* Multi-Family (10 units)**
Planning permit fee (incl. CEQA) $2,808 $6,205
Building Permit fee $4,872 $9,872
Subtotal $7,680 $16,077
MPWMD $225 $2,250
CUSD $980 $9,800
Cal-Am $3,000 $5,000
CAWD $8,242 $82,426
TAMC $4,036 $283,425
Regional Fees Subtotal $16,483 $382,901
Total Fees $24,163 $398,978
*assumed $350K valuation and 2,000 sq. ft.
**assumed $5,000,000 valuation and 20,000 sq. ft.
City fees generally comprise approximately 30 percent of the cost of development of a single-family home and four (4) percent of the cost of a small multi-family development. Fees from other districts comprise the bulk of the costs for muti-family development. As part of the 6th Cycle Housing Element the City includes program 3.1.D Reduced Entitlement and Development Fees to lower costs for projects with affordable units.
Processing and Permit Procedures
The processing time needed to obtain development permits and required approvals varies depending on the scope of the project. The size of projects in Carmel-by-the-Sea is typically limited to the remodeling or construction of a single-family home, a minor commercial modification, or the construction of an accessory dwelling unit. The City strives to keep its permit procedures streamlined and processing times short. The Planning Division is the lead agency in processing residential development applications and coordinates the processing of those applications with other City departments such as the Building Safety Division and Public Works Department and other outside agencies as deemed appropriate, such as the fire and water districts.
Carmel-by-the-Sea has traditionally encouraged high architectural standards for new development.
City zoning regulations require design review approval for any proposed additions to or the Attachment 2
Appendix B – Housing Constraints B-29 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 construction of new single-family homes, duplexes or multi-family developments. However, accessory dwelling units are exempt from design review by state law and must only meet the location and development standards outlined by state law (Government Code section 65852.2).
Permit applications are generally processed in as an efficient manner as practical in Carmel-by-theSea. Although the Historic Resources Board, the Planning Commission, and the City Council only meet once a month, determination on a project is usually reached in one or two meetings (if the City Council is required to hear the matter). However, for Track 2 Design Study applications, the City does require applicants to take part in a Forest and Beach Commission if tree removal is proposed, as well as a separate Concept hearing and Final Details hearing with the Planning Commission prior to formal approval. There is no separate Design Review Board in Carmel, with the Planning Commission conducting design review. The typical processing time for Track 2 discretionary review is four to six months, depending on, whether tree removal or replacement is proposed, whether the property is deemed historic or eligible for historic listing, whether the property falls within the “Beach and Riparian Overlay” (Coastal Commission Appeal Jurisdiction), and whether the project requires a volume study or any other technical study be conducted. While this review procedure assists in achieving project acceptability and allows for neighborhood participation through multiple public hearings, the overall scale and level of complexity of review does provide a barrier to applicants without the financial resources and time to see a residential project through to completion.
However, the City does have a practice of moving projects with affordable housing ahead of other projects in the development processing queue when setting development review agendas. Due to Permit Streamlining law, this incentive is less powerful than it once was. However, it may reduce review time by as much as a month. Even this minor benefit attracts developer attention during preapplication meetings. Projects that include affordable housing are also expedited through the plan check process.
Carmel-by-the-Sea’s development process can be summarized in the following nine steps. All of these steps may not be necessary depending on the nature of a project:
1. Application Submittal - The planning application submittal process begins when a developer, architect, property owner, or other applicant authorized by the property owner (Project Applicant) submits a development application, required fees, and application materials. Often times the developer will have met informally with the Planning Division to review the project and receive preliminary feedback on the proposal in advance of the formal project submittal.
2. Plan Review - After the application is received, it is routed to the relevant City Departments, including the Planning Division, Building Safety Division, Fire Prevention, and Public Works. A planner is assigned to serve as the liaison to the Project Applicant, helping to expedite the permit Attachment 2
Appendix B – Housing Constraints B-30 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 process and coordinating the department reviews. During a 30-day review period for completeness, individual departments assess the completeness of the application, work with the Project Applicant to correct any project deficiencies, and prepare preliminary Conditions of Approval.
3. Application Assessment - The application is assessed for its compliance with the standards of the Zoning Code (Title 17 of the municipal code) as well as the City’s Residential or Commercial Design Guidelines.
4. Environmental Review - A review of the environmental issues associated with the proposed project (as required by the California Environmental Quality Act) will also be completed during the Plan Review stage of the process.
5. Forest and Beach Commission/Historic Resources Board – If a project proposes to remove a significant tree(s), it will require review by the Forest and Beach Commission. If the property is a listed historic resource or has potential eligibility for listing as a historic resource, the project is required to be reviewed by the Historic Resources Board.
6. Planning Commission/City Council Approval - If a project is determined to require discretionary action, it will be scheduled for review by the Planning Commission. A Public Notice will be provided and all property owners within 300 feet of the project site will be notified by mail. After projects receive approval by the Planning Commission there is a ten‐ working-day appeal period during which the project may be appealed to the City Council. The City Council decision is final, unless the project is located within the Coastal Commission appeal jurisdiction. There are different levels of planning review/approval depending on the scope of work proposed.
7. Plan Check - After the project receives all required approvals, construction plans may be submitted to the Building Safety Division for a plan check for building permits. The plans will be routed to the City’s Planning Division and Public Works Department. The project planner will review the plans for conformance with the Zoning Code, any required Conditions of Approval, and with plans approved by the Planning Commission or City Council. The Building Safety Division will verify that all building, fire, mechanical, plumbing and electrical code requirements are fulfilled in compliance with the California Code and other State requirements.
8. Building Permit - After the construction plans receive approval from the relevant departments, the Building Safety Division issues a building permit. Construction can begin after this point.
Regular inspections are required throughout the construction process. The final inspection requires clearance from all relevant City departments and the Carmel Fire Department.
9. Occupancy Permit - Once the final inspection is complete, the developer needs to secure a certificate of occupancy. New buildings or structures cannot be used or occupied until the Building Official has issued a certificate of occupancy.
Attachment 2
Appendix B – Housing Constraints B-31 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Table B-7 shows the typical processing time for a residential development application.
Table B-7 Review/Approval Requirements and Processing Times Zoning District Design
Study Use Permit CDP1
Typical
Processing
Time2
R-1 Single-Family Residential District
Single family residence Yes No Yes 6-9 months
ADU (Subordinate Unit) Yes No Yes 4-6 months
Guest house Yes Yes Yes 4-6 months
Building sites exceeding 30 percent slope Yes Yes Yes 6-9 months R-4 Multi-Family Residential District
Single family residences Yes Yes 6-9 months
Multi-family residences 0-22 units/acre Yes Yes 8-10 months Multi-family residences 23-44 units/acre Yes Yes Yes 8-10 months Commercial Districts
Multi-family residences 0-22 units/acre Yes Yes 8-10 months Multi-family residences 23-44 units/acre Yes Yes Yes 8-10 months Public and Quasi-Public Districts (A-2 and A-3)
Senior Citizen Housing Yes Yes Yes 8-10 months
SOURCE: City of Carmel-by-the-Sea Community Planning and Building Department 2023 NOTE:
1. CDP – Coastal Development Permit – required for all projects that increase the height and/or floor area on an existing structure by 10 percent or more.
2. Includes time for building plan check
Single-family homes, duplexes and multi-family projects go through the same zoning compliance and design review process. The review and approval of multi-family projects typically takes longer due to the complexity of a more intense development and the myriad issues that need to be considered including adequate site servicing, design review, potential tentative map review, and the more active involvement of other departments and agencies outside of Planning. Although there is a high level of public input on some planning applications, Carmel-by-the-Sea’s zoning standards and design review ordinance are fairly detailed. There is a level of certainty on behalf of the project applicants that if the project meets the standards and goals of the ordinances, the project will receive City support.
SB 35 Streamlining
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 Attachment 2
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 process and restricts the ability of local governments to reject these proposals. The bill creates a streamlined approval process for qualifying infill developments in localities that have failed to meet their RHNA, requiring a ministerial approval process, removing the requirement for CEQA analysis, and removing the requirement for discretionary entitlements. Since the adoption of this section of the Government Code, the City has not received an application under these provisions.
As previously noted, the entire City is located within the California Coastal Zone and is therefore not subject to SB 35 (see Government Code Section 65913.4(6)). The City has included a program in the 6th cycle Housing Element to address SB-35 if the law 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.
SB 10 Building Opportunities for All
SB 10 makes it easier for cities to zone for smaller, lower-cost housing developments of up to 10 units to address California’s housing crisis. SB 10 provides tools for local governments to zone for up to ten homes per parcel in transit-rich areas, or urban infill sites. SB 10 maintains local control, as a local legislative body must pass a resolution to adopt the plan. The City has included a program in the 6th cycle Housing Element to address SB-10 and encourage urban infill on large properties zoned single-family (R-1).
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 on parcels zoned for singledwelling units. The City has not received any inquiries of interest for SB 9 lot splits and is not currently processing any SB 9 application.
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 Attachment 2
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 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 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.
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 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.
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 has been a conscious effort on the part of residents to maintain a “village in a forest” atmosphere. 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 Attachment 2
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 dwelling unit are required. Improvements to accessory dwelling units are allowed even if one or both parking spaces encroaches into a setback. Accessory 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-8, 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 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-8 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 Attachment 2
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 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.
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 is proposed (one hearing); 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);
Attachment 2
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 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).
In addition, the City’s permit process, which includes a use permit 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 Overnight Visitor Accommodation
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 located in key areas of the City 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 Municipal Code to be consistent with ADU and JADU state law, 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 2
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 Use Permits
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.
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-9 on the following page.
The City’s development regulations are consistent with California housing law, and the Zoning Code enables 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.
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.
Attachment 2
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 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
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 3.1.F: Expedited Processing Procedures
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 Unnecessary Use Permits
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
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 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 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.
Attachment 2
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 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 governmentimposed 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 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 based on the varied and unique geographic conditions throughout the City. Hard costs can be
higher than average in Carmel-by-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.
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.
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 2
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 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.
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).
Attachment 2
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 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.
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.
Attachment 2
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 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. 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.
Attachment 2
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 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.
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 incentives may be a solution. Large multi-family units have become commonplace with recent housing proposals. Large units reduce the number of multifamily units overall, which decreases the housing variety available, and increases the number of expensive luxury housing options. A minimum density requirement is being proposed within the Housing Priority Overlay Zoning District for sites 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 in Carmel-by-the-Sea to find available housing. Rising housing prices decrease the stock of housing affordable to those living or working in and around Carmel-by-the-Sea, further spurring the statewide housing shortage. Programs to address this issue are incorporated in the 6th cycle Housing Element and include encouraging Accessory Dwelling Units and establishing 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 Attachment 2
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 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 a low-income 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.
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 Nature Preserve, located adjacent to the City, introduce the possibility of a wildland fire. The currently adopted (October 2008) California Department of Forestry and Fire Protection (CAL FIRE) Very High Fire Hazard Severity Zones in Local Responsibility Areas (LRA) map for Carmelby-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, posing 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.
Attachment 2
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 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 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.
Attachment 2
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 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 Municipal Code (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:
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).
Attachment 2
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 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-10 below:
Table B-10 Summary of Non-Governmental Constraints
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 2
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 This side intentionally left blank.
Attachment 2
Vacant and Available Sites C
APPENDIX
Attachment 2
Attachment 2
Table of Contents
APPENDIX C HOUSING SITES INVENTORY ANALYSIS .................................................... C-1 C.1 Introduction ........................................................................................................................... C-1 C.2 Regional Housing Needs Allocation ................................................................................... C-1 C.3 Sites Inventory ....................................................................................................................... C-3 C.4 AFFH Sites Analysis........................................................................................................... C-43 C.5 Conclusion ............................................................................................................................ C-50 C.6 Overnight Visitor Accommodation Reference List ....................................................... C-51 Tables
Table C-1 Carmel-by-the-Sea’s Regional Housing Needs Allocation – 2023–2031........... C-2 Table C-2 Carmel-by-the-Sea’s Adjusted RHNA .................................................................... C-2 Table C-3 Housing Sites Inventory ......................................................................................... C-38 Table C-4 AFFH Indicators Analysis Overview ................................................................... C-44 Table C-5 Existing Overnight Visitor Accommodation Locations .................................... C-51 Figures
Figure C-1 Potential Sites Inventory Map (insert map) ........................................................... C-4 Figure C-2 Sunset Center Lots Site (Site #1) ............................................................................ C-6 Figure C-3 Sunset Center South Lot (Site #2) .......................................................................... C-7 Figure C-4 Ulrika Plaza Site (Site #3)......................................................................................... C-8 Figure C-5 City Public Works (Vista Lobos) Site (Site #4)..................................................... C-9 Figure C-6 Bruno’s Market Site (Site #5) ................................................................................ C-10 Figure C-7 First Church of Christ Parking Lot Site (Site #6)............................................... C-11 Figure C-8 Red Cross Site (Site #7).......................................................................................... C-12 Figure C-9 JB Pastor Site (Site #8) ........................................................................................... C-13 Figure C-10 Girl Boy Girl Site (Site #9) .................................................................................... C-14 Attachment 2
Figure C-11 Carmel Foundation Site (Site #10)....................................................................... C-15 Figure C-12 American Legion Site (Site #11) .......................................................................... C-16 Figure C-13 AT&T Building Site (Site #12)............................................................................. C-17 Figure C-14 Carmel Resort Inn Site (Site #13)........................................................................ C-18 Figure C-15 Forest Cottages Specific Plan (Site #14)............................................................. C-19 Figure C-16 NW Corner Mission & 7th Site (Site #15) ......................................................... C-20 Figure C-17 7th 2 SW of Mission Site (Site #16)...................................................................... C-21 Figure C-18 NE Corner Monte Verde & 7th Site (Site #17) .................................................. C-22 Figure C-19 Yafa Building Site (Site #18)................................................................................. C-23 Figure C-20 Three Garages Site (Site #19)............................................................................... C-24 Figure C-21 Carmel Realty Office Site (Site #20).................................................................... C-25 Figure C-22 Parashis Building Site (Site #21) ......................................................................... C-26 Figure C-23 The Agency Site (Site #22).................................................................................... C-27 Figure C-24 Sunset Terrace Site (Site #23)............................................................................... C-28 Figure C-30 Enzo’s Site (Site #24)............................................................................................. C-29 Figure C-31 Doud Arcade Site (Site #25)................................................................................. C-30 Figure C-32 Paseo San Carlos Square Site (Site #26).............................................................. C-31 Figure C-33 Paseo San Carlos Square Site 2(Site #27)............................................................ C-32 Figure C-34 Carmel Office Supply & Business Center (Site #28) ........................................ C-33 Figure C-36 Anticipated Development Types .......................................................................... C-35 Figure C-37 • Sites Inventory and Zoning ................................................................................ C-41 Figure C-38 AFFH Sites Analysis: Cost Burdened Home Owners....................................... C-48 Figure C-39 Sites and Carmel-by-the-Sea Median Income..................................................... C-49 Attachment 2
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 on October 12, 2022. The plan was approved by HCD on November 8, 2022. For Carmel-by-the-Sea, the 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 2
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 15, 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 2
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 in order to accommodate Carmel-by-the-Sea’s assigned 349 housing units. The City isn’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.
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.
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 provide on-site housing for lower-income hospitality employees. Finally, the City has an active accessory dwelling unit program 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. Beyond 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. 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 in this 6th Cycle Housing Element update to permit redevelopment of all of underutilized sites identified herein. Examples include removing the need for a conditional use permit and establishing a minimum density for multi-family housing.
Attachment 2
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 Figure C-1 Potential Sites Inventory Map (insert map)
Attachment 2
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 The capacity estimate for these primary underutilized sites is supported, in part, by a 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).
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.
2 ECO Northwest, January 27, 2023. “Housing Element Analysis for the City of Carmel by-the-Sea.” Attachment 2
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 Site #1: Sunset Center 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 1.84 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-2 Sunset Center Lots Site (Site #1)
“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 2
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 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 1.84 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 2
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 #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 is in the process of obtaining entitlements for a new mixed-use development program that includes 12 market-rate apartment units. The site is a case study of a development not building to maximum density, and not including affordable units.
Figure C-4 Ulrika Plaza Site (Site #3)
Attachment 2
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 Site #4: 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 commercial 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-5 City Public Works (Vista Lobos) Site (Site #4) Attachment 2
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 #5: 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.
Figure C-6 Bruno’s Market Site (Site #5)
Attachment 2
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 #6: 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. 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 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.
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).
Figure C-7 First Church of Christ Parking Lot Site (Site #6) Attachment 2
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 #7: Red Cross Site
Location: Southeast Corner of Dolores Street & 8th Avenue (APN: 010-144-015, -016) Number of Housing Units: 6
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. 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).
Figure C-8 Red Cross Site (Site #7)
Attachment 2
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 #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)
Attachment 2
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 #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 2
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 #10: Carmel Foundation Site
Location: Northeast corner Lincoln & 8th (APN: 010-149-001, -010, -011, -012) Number of Housing Units: 20
Description: The Carmel Foundation is the primary provider of 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 persquare-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).
Figure C-11 Carmel Foundation Site (Site #10)
Attachment 2
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 #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)
Attachment 2
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 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 2
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 #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 2
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 #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 2
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 #15: NW Corner Mission & 7th Site
Location: Northwest Corner of Mission Street & 7th Avenue (APN: 010-141-003) Number of Housing Units: 12
Description: This site is approximately 0.37 acres. The existing uses include multi-tenant retail shops and a restaurant across multiple single-story commercial buildings. The site was included in the RHNA 5 inventory. 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.
Figure C-16 NW Corner Mission & 7th Site (Site #15)
Attachment 2
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 #16: First 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 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 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-17 7th 2 SW of Mission Site (Site #16)
Attachment 2
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 Site #17: NE Corner Monte Verde & 7th Site
Location: Northeast Corner of Monte Verde Street & 7th Avenue (APN: 010-191-004 ) Number of Housing Units: 2
Description: This small site is approximately 0.07 acres. The property is currently significantly underdeveloped. The building is currently used as 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). The 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. Lower-income units are not assumed for this site because it is less than a half-acre in size.
Figure C-18 NE Corner Monte Verde & 7th Site (Site #17) Attachment 2
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 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 2
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 #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.
Figure C-20 Three Garages Site (Site #19)
Attachment 2
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 #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 2
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 #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 2
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 #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:
Attachment 2
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 #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). 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-24 Sunset Terrace Site (Site #23)
[Photo to be inserted prior to HCD submittal]
Temporary image:
Attachment 2
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 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 2
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 #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]
Temporary image:
Attachment 2
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 #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). 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-27 Paseo San Carlos Square Site (Site #26)
[Photo to be inserted prior to HCD submittal]
Temporary image:
Attachment 2
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 #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). 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-28 Paseo San Carlos Square Site 2(Site #27)
[Photo to be inserted prior to HCD submittal]
Temporary image:
Attachment 2
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 #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]
Temporary image:
Attachment 2
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 Housing Variety
In compliance with Government Code Section 65583 and 65583.2, which require the Housing Element to provide for a variety of housing types including multifamily rental housing, factory-built housing, mobile homes, housing for agricultural employees, supportive housing, single-room 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 incentivizes 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 opportunities.
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.
Attachment 2
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 Figure C-30 Anticipated Development Types
[Map to be inserted prior to HCD submittal]
Attachment 2
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 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 affordable housing for hospitality employees in exchange for an additional hotel unit. 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 33 permit applications for new ADUs, approved/entitled 30 applications, issued building permits for 13 ADUs, and finaled 1 ADU. However, the Community Planning & Building Department reports that over the 5.5-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. Following the rule of thumb recommended by HCD, these 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.
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 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 33 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.
Attachment 2
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 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 below 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 33 housing sites identified in the sections above.
Attachment 2
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 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
1 Sunset Center Lots Site (#1),
NE Corner of San Carlos & 8th 010143001000 A-2 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 --
3 Ulrika Plaza Site (#2),
SW Corner of Dolores & 5th
010138003000
SC CC 0.37 33 12 -- -- -- 12
010138021000
4 City Public Works Site (Vista Lobos) (#3),
W/S Torres between 3rd & 4th, and
E/S Junipero between 3rd & 4th
010104001000
R-4 MFR 1.28 33 42 35 -- -- 7
010104004000
5 Bruno's Market Site (#6)
NE Corner of Junipero & 6th, and
NW Corner of Torres & 6th
010095013000
RC RC 0.53 33 17 12 5 -- -- 010095012000
6 First Church of Christ Parking Lot (#8),
Lincoln 2-4 NW of 6th
010212027000
010212004000 SB-10 SFR 0.28 33 9 -- 9 -- --
010212026000
7 Red Cross Site (#9),
SE Corner of Dolores & 8th
010144015000
SB-10 SFR 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 Carmel Foundation Site (#14),
NE Corner of Lincoln & 8th
010149012000
A-3 SFR 0.62 33 20 10 10 -- -- 010149010000
010149011000
010149001000
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 # Location
(Reference to ECO NW Study) APN Zoning General Plan Acreage Applied
Density
(DU/AC)
Total
Realistic
Capacity
Very Low Low Moderate Above
Moderate
11 American Legion Site,
Dolores 2 SE 8th 010144014000 SB-10 SFR 0.18 33 5 -- -- -- 5 12 AT&T Building
SW Corner of Junipero & 7th 010087012000 RC RC 0.35 33 11 -- -- -- 11 13 Carmel Resort Inn,
SE Corner of Guadalupe & 1st,
Guadalupe 2-8 SE of 1st
010021014000
R-1 SFR 0.74 20 8 -- -- -- 8
010021013000
010021012000
010021011000
010021030000
010021031000
010021032000
010021033000
14 Forest Cottages Specific Plan,
NE Corner of Ocean & Mountain View
010085004000
010085005000 R-1 SFR 0.30 20 6 2 4
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) 010145008000 RC RC 0.19 33 6 -- -- -- 6 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 # Location
(Reference to ECO NW Study) APN Zoning General Plan Acreage Applied
Density
(DU/AC)
Total
Realistic
Capacity
Very Low Low Moderate Above
Moderate
NE Corner 8th & Delores
21 Parashis Building
NW Corner Dolores & 6th 010138006000 CC CC 0.13 33 4 -- -- -- 4 22 The Agency
NW Corner Ocean & Dolores 010139001000 CC CC 0.09 33 2 -- -- -- 2 23 Sunset Terrace
NW Corner Mission & 8th 010142006000 RC RC 0.19 33 6 -- -- -- 6 24 Enzo's
San Carlos 2 SW of Ocean 010146001000 CC CC 0.15 33 4 -- -- -- 4 25 Doud Arcade
San Carlos 2 SW of Ocean 010146002000 CC CC 0.18 33 5 -- -- -- 5 26 Paseo San Carlos Square
San Carlos 2 NW of 7th Ave 010146003000 CC CC 0.18 33 5 -- -- -- 5 27 Paseo San Carlos Square
San Carlos 2 NW of 7th Ave 010146004000 CC CC 0.09 33 2 -- -- -- 2 28 Carmel Office Supply & Business Center
Lincoln SE of Ocean 010147010000 CC CC 0.09 33 2 -- -- -- 2 Subtotal Recycled Sites 60 60
TOTAL 302 98 54 16 134
Hospitality Employee Housing 31 8 12 11 0
Overnight Visitor Accommodation Transfer of Development 33 8 0 0 25 ADUs 34 11 11 11 3
Subtotal Other 82 19 23 22 20
GRAND TOTAL 400 117 92 68 182
RHNA 349 113 74 44 118
Difference 51 15 18 24 64
Difference (Percent) 115% 113% 124% 154% 154%
SOURCE: City of Carmel-by-the-Sea; EMC Planning Group Inc.
Appendix C – Housing Sites Inventory Analysis C-41 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Figure C-31 • Sites Inventory and Zoning
[Map to be inserted prior to HCD submittal]
Attachment 2
Appendix C – Housing Sites Inventory Analysis C-42 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 This page intentionally left blank
Attachment 2
Appendix C – Housing Sites Inventory Analysis C-43 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 C.4 AFFH Sites Analysis
Per AB 686, Housing Elements 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-the-Sea, 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 C-4 provides an overview of the AFFH indicators described above, as they relate to Carmel-by-the-Sea. 3 https://affh-data-and-mapping-resources-v-2-0-cahcd.hub.arcgis.com/ Attachment 2
Appendix C – Housing Sites Inventory Analysis C-44 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. Nearby 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-45 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 AFFH Category Legend Category Surrounding Area Analysis 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.
Appendix C – Housing Sites Inventory Analysis C-46 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 AFFH Category Legend Category Surrounding Area Analysis 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.
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.
Appendix C – Housing Sites Inventory Analysis C-47 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 AFFH Category Legend Category Surrounding Area Analysis 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.
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-48 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Figure C-38 illustrates geographic concentrations of cost burden by home owners in Carmel-by-theSea, 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 2
Appendix C – Housing Sites Inventory Analysis C-49 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Figure C-39 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 2
Appendix C – Housing Sites Inventory Analysis C-50 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 C.5 Conclusion
The vacant and underutilized sites, on-site hospitality employee housing, 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 “buffer” is highly recommended because of the state’s no-net-loss policy, which precludes jurisdictions from approving development that results in an overall housing site deficit.
The “buffer” 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 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, a Housing Priority Overlay Zoning 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.
Attachment 2
Appendix C – Housing Sites Inventory Analysis C-51 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 2
Appendix C – Housing Sites Inventory Analysis C-52 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 2
Review of Previous Housing Element D
APPENDIX
Attachment 2
Attachment 2
Table of Contents
APPENDIX D REVIEW OF PREVIOUS HOUSING ELEMENT............................................ D-1 D.1 Introduction ........................................................................................................................... D-1 D.2 Effectiveness of the Element............................................................................................... D-1 D.3 Progress in Implementation ................................................................................................. D-2 D.4 Summary .............................................................................................................................. D-14 Tables
Table D-1 Overview of Adopted Programs ............................................................................ D-3 Table D-2 Housing Units Produced, 2015-2023................................................................... D-14
Attachment 2
Attachment 2
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 2
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 City-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.
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.
Attachment 2
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
Continue/
Modify/
Delete in 6th
Cycle
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.
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
organizations.
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 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.
Delete
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 Modify and Combine
with 3-1.1.a.
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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such as the Farmer’s Market, Library programming, and local service organizations to promote available resources.
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 Moderate-, Low- and Very-Low-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 Moderate income units and a 3rd floor mezzanine.
Modify to specify 3rd
floor mezzanine.
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 Modify to remove the
CUP requirement for
densities up to 33
du/ac.
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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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.
Goal G3-3: Provide adequate sites for the development of a wide range of housing types for all citizens.
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.
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
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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.b
Surplus Sites. Investigate 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 Element cycle; however,
discussions remain ongoing.
Modify to identify
underutilized Cityowned sites including
Flanders Mansion,
Sunset Center
parking lots, Post
Office parking lot and
Vista Lobos.
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.
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-7 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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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
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 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.
Modify to explore
methods to raise
funds including
establishing an
Affordable Housing
Trust Fund, , property
tax reduction or ADU
incentive program.
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
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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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.
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.
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 3-4.3.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.
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-10 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.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.
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 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.
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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• 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.
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.
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 City does not impose impact fees.
Modify to reduce fees
for affordable
residential projects..
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
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.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.
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.
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 3-5.7
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 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.
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-14 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 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, likely 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.
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 identified in the City’s 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 2
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 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 meet its housing obligations.
Attachment 2
Appendix D – Review of Previous Housing Element D-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
List of Contacted Organizations E
APPENDIX
Attachment 2
Attachment 2
Table of Contents
APPENDIX E LIST OF CONTACTED ORGANIZATIONS ....................................................E-1 E.1 Introduction ........................................................................................................................... E-1 E.2 List of Contacted Organizations......................................................................................... E-1 E.3 City Contact List.................................................................................................................... E-4 E.4 Tribal Consultation................................................................................................................ E-5 E.5 Service Organizations ........................................................................................................... E-7 E.6 Additional Outreach .............................................................................................................. E-9 Attachment 2
Attachment 2
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 Appendix 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 Housing Element-related community engagement activities that were available to members of the public during the update process. This includes information on Housing Element 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 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)
Attachment 2
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 Carmel Chamber of Commerce
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;
GBG, Montag Ivestor;
Carmel Presbyterian, Bob Spencer;
Yafa Property, Sandy Freschi;
Levett Properties, Denny Levett & Jeanne Cox Levett;
Doud Arcade, John Plastini; and
Linggi Building / Flaherty's, Alan Buchwald.
Attachment 2
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 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;
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;
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;
Attachment 2
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 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 involved with Housing 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; and
City Councilmember, Alissandra Dramov.
Planning Commission
Michael LePage;
Stephanie Locke;
Chris Bolton;
Robert Delves; and
Erin Allen.
Attachment 2
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 Historic Resources Board
Eric Dyar;
Karyl Hall;
Jordan Chroman;
Kathy Pomeroy; and
Esther Goodhue.
City Staff
Brandon Swanson, Director of Community Planning & Building; Marnie Waffle, AICP, Principal Planner;
Katherine Wallace, AICP, Associate Planner;
Chip Rerig, City Manager;
Robert Harary, Public Works Director;
Gaudenz Panholzer, 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 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
Attachment 2
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 Rudolph Rosales (Ulax Huchumas)
Indigenous Peoples Consultant
Esselen Nation
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
Attachment 2
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 Kenneth Woodrow, Chairperson
Wuksache Indian Tribe/Eshom Valley Band
1179 Rock Haven Ct.
Salinas, CA, 93906
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
Attachment 2
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 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
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, CA 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/
Attachment 2
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 E.6 Additional Outreach Website: “Housing Opportunities Made Easier (H.O.M.E.) Carmel-by-the-Sea” (homecarmelbythesea.com) launched 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; 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 Ad Hoc Committee Community Meeting provided 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: Housing Ad Hoc Committee Community 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 Cycle 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 Cycle programs, and provided some strategies for sites and ways to provide feedback throughout this process; June 15, 2023: Joint City Council and Planning Commission Special 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: 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; Advance (10-day minimum) public notice of all scheduled Housing Ad Hoc and Council meetings published in the local newspaper, The Carmel Pine Cone; 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
Attachment 2
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 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 Element topic and three (3) regular City Council meetings with an agendized Housing Element topic completed prior to submission of the Draft Housing Element to HCD.
Attachment 2
ECONorthwest Feasibility Study
APPENDIX
F
Attachment 2
Attachment 2
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 2
Attachment 2
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 2
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 2
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 2
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
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6 9
5 2
8 6
12 2
5 8
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3 5
2 6
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5 7 4 3
4 1
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7 6
4 8
8 8
3 3
8 8
4 1
9 4
5 3
1 4
5 2
9 8
5 7
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7 2
4 9
9 9
6 7
9 7
19 3
9 4
7 3
6 7
4 7
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2 8
6 15
9 2
9 6
2 5
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7 8
3 4
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1 4
5 8
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8 5
3 9
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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
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4 2
4 7
6 5
6 9
2 6
9 6
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2 9
7 6
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6 3
2 5
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5 5
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4 2
6 6
5 8
3 3
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9 3
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5 4
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3 6
8 8
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4 5
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8 3
2 8
3 6
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2 7
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3 4
3 5
8 4
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2 6
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8 6
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4 9
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4 4
4 5
6 8
6 4
5 6
4 4
1 3
4 3
7 6
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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
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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.
ECONorthwest 5
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 2
ECONorthwest 6
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 2
ECONorthwest 7
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 2
ECONorthwest 8
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 2
ECONorthwest 9
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 2
ECONorthwest 10
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 2
ECONorthwest 11
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 2
ECONorthwest 12
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 2
ECONorthwest 14
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 2
ECONorthwest 15
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 2
ECONorthwest 16
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 2
ECONorthwest 17
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 2
ECONorthwest 20
Figure 12: Historic Resource Properties
Source: City of Carmel-by-the-Sea.
CarmelHistoricProperties
Downtown Study Area
Conservation District
Legend
ECONorthwest 21
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
ECONorthwest 23
Figure 15: Sites with Adjacent Ownerships
Source: ECONorthwest
Downtown Study Area
Conservation District
Not Viable
Adjacent Ownerships
Legend
ECONorthwest 24
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 2
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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
ECONorthwest 27
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 2
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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 2
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 2
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 2
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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 2
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 2
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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 2
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 2
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 2
Energy Conservation and Reduction of
Greenhouse Gas Emissions G
APPENDIX
Attachment 2
Attachment 2
Table of Contents
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-1 Tables
Table G-1 PG&E Programs and Incentives for Residential Properties .............................. G-3 Attachment 2
Attachment 2
Appendix G – Energy Conservation G-1 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Appendix G
Energy Conservation and Reduction of
Greenhouse Gas Emissions
G.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.
G.2 Opportunities for Energy Conservation and Reducing
Greenhouse Gas Emissions
The city 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.
Attachment 2
Appendix G – 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 City 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 G-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 2
Appendix G – Energy Conservation G-3 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Table G-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.
Attachment 2
Appendix G – 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 2
Appendix G – Energy Conservation G-5 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 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 2
Appendix G – 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 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 2
Appendix G – Energy Conservation G-7 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 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
Attachment 2
Appendix G – 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 2
Stakeholder Survey H
APPENDIX
Attachment 2
Attachment 2
Table of Contents
APPENDIX H STAKEHOLDER SURVEY ............................................................................. H-1 H.1 Stakeholder Survey ................................................................................................................ H-1 Attachments
Attachment A Stakeholder Survey Questions
Attachment B Open-ended Responses
Attachment 2
Attachment 2
Appendix H -- Stakeholder Survey H-1 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Appendix H
Stakeholder Survey
H.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.
Attachment 2
Appendix H -- Stakeholder Survey H-2 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 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 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 2
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 2
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 2
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 2
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 2
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 2
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 2
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.
Note: See Attachment B for a full list of the “other” responses received. The “other” responses are the open-ended responses that were received. 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 2
Appendix H -- Stakeholder Survey H-10 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 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 (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. 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 2
Appendix H -- Stakeholder Survey H-11 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 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 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 Attachment 2
Appendix H -- Stakeholder Survey H-12 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 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 2
Stakeholder Survey Questions A
ATTACHMENT
Attachment 2
Attachment 2
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.
I visit the City but live elsewhere (please specify): ______ Other: _____
Attachment 2
Appendix H -- Stakeholder Survey 2 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023
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 2
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: _____
Attachment 2
Appendix H -- Stakeholder Survey 4 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023
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? 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 2
Open-ended Responses
ATTACHMENT
B
Attachment 2
Attachment 2
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 2
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 2
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 2
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
Attachment 2
Appendix H -- Stakeholder Survey 10 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 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
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
Attachment 2
Appendix H -- Stakeholder Survey 11 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 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.
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.
Attachment 2
Appendix H -- Stakeholder Survey 12 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 NA
Yes, all of the above
No
Only with some protection to me as an owner as mentioned above.
No
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
Attachment 2
Appendix H -- Stakeholder Survey 13 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Yes, but the city makes the permitting very difficult and the county does not have the water.
Yes
No
No
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.
Attachment 2
Appendix H -- Stakeholder Survey 14 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 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
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.
Attachment 2
Appendix H -- Stakeholder Survey 15 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 financial stimuli
Not possible. Lot already too small
Lot us too small
Nothing
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
Attachment 2
Appendix H -- Stakeholder Survey 16 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 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
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 Attachment 2
Appendix H -- Stakeholder Survey 17 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 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.
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? Attachment 2
Appendix H -- Stakeholder Survey 18 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 More clients
More congestion and less parking
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.
Attachment 2
Appendix H -- Stakeholder Survey 19 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 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.
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 Attachment 2
Appendix H -- Stakeholder Survey 20 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 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
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.
Attachment 2
Appendix H -- Stakeholder Survey 21 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 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
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.
Attachment 2
Appendix H -- Stakeholder Survey 22 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 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.
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!
Attachment 2
Appendix H -- Stakeholder Survey 23 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 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.
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.
Attachment 2
Appendix H -- Stakeholder Survey 24 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 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
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
Attachment 2
Appendix H -- Stakeholder Survey 25 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 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 2
6th Cycle Housing Element Update (2023-2031)
Public Draft Review Comments
Comment Period: June 5, 2023 to July 6, 2023
City of Carmel-by-the-Sea
August 2023
Prepared by
EMC Planning Group
Attachment 3
Attachment 3
Table of Contents
1.0 INTRODUCTION......................................................................................................... 1-1
1.1 Draft Housing Element ......................................................................................................... 1-1
1.2 Purpose of Draft Housing Element Public Comment ..................................................... 1-1
1.3 HCD Draft Housing Element Report ................................................................................. 1-1
2.0 PUBLIC COMMENT ON THE DRAFT HOUSING ELEMENT .................................... 2-1
2.1 Verbal Draft Housing Element Comments ........................................................................ 2-1
2.2 Community Outreach Website Comments ........................................................................ 2-5
2.3 Email Comments.................................................................................................................. 2-15 Attachments
Attachment A Email Comments and Responses
Attachment 3
Attachment 3
Public Comment Report 1-1 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element August 2023
1.0 Introduction
1.1 Draft Housing Element
Pursuant to AB215, the Housing Element must undergo a draft process subject to a 30-day public comment period, and if comments are received, an additional 10-day consideration and revision period prior to Housing and Community Development (HCD) submittal.
The following document outlines all public comments received during the 30-day public comment period as well as responses and revisions to the Housing Element.
1.2 Purpose of Draft Housing Element Public Comment
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 written public comments were received. Additionally, verbal public comments were received at a special joint City Council and Planning Commission Committee meeting on June 15, 2023.
The City received 31 written comments and 8 verbal comments for a total of 39 public comments on the Draft Housing Element. The City of Carmel-by-the-Sea also received 157 responses to a Stakeholder Survey which was available between May 24, 2023 and July 7, 2023. The results of the Stakeholder Survey are discussed in Appendix H of the HCD Initial Draft Housing Element.
Government Code 65585(b)(1) indicates that the purpose of the public review process includes the following:
Disclosing agency analysis;
Discovering public concerns; and
Incorporating public comments.
1.3 HCD Draft Housing Element Report
This Comment Report for the Preliminary HCD Draft Housing Element review has been prepared to address comments received during the public comment period and, together with the Draft Housing Element, constitutes the complete City of Carmel-by-the-Sea 6th Cycle 2023-2031 Housing Element. This Comment Report for the Preliminary HCD Draft Housing Element is organized according to the method by which comments were received.
Attachment 3
Public Comment Report 1-2 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element August 2023 This side intentionally left blank.
Attachment 3
Public Comment Report 2-1 EMC Planning Group
City of Carmel-by-the-Sea 6th Cycle Housing Element August 2023
2.0 Public Comment on the Draft Housing Element
2.1 Verbal Draft Housing Element Comments
The following verbal public comments were received at the June 15, 2023 special joint Planning Commission and City Council meeting. The following comments are abbreviated based on notes taken. Responses to these comments were provided by Brandon Swanson, Community Planning & Building Director, during the meeting, and are provided below.
Nancy Twomey, Public Comment 1
The Architectural Digest voted Carmel #8 out of the 50 most beautiful towns. We need to protect the character of our town, especially of the village. Twomey expressed concern with second stories.
Dolores and Ocean is an example of second stories done right. Design review should be continued.
We do welcome new residents and housing, but be selective and infrequent with second stories.
Tasha Witt, Public Comment 2
What is missing from the public draft: retaining discretionary design standards. Keep Planning Commission review.
Karyl Hall, Public Comment 3
Retain existing zoning. Against Objective Design Standards. New housing should follow design principles.
Ken White, Public Comment 4
Carmel is built to capacity. 349 is too many. We’re a world-famous tourist destination and that’s to Carmel’s credit – not the State’s. We should support a ballot opposing this. This is not our philosophy. Do we want cultural diversity? The people of California haven’t had a say. Be careful as we proceed.
Dave Fahey, Public Comment 5
No one has bought into the State edict. We can’t take parking away. Why do we have to do this? Attachment 3
Public Comment Report 2-2 EMC Planning Group
City of Carmel-by-the-Sea 6th Cycle Housing Element August 2023 Linda Calafiore, Public Comment 6
Offered words of praise of document. Sometimes the government needs to step in and do what we are not doing as citizens. This is up to us to do our share. We need workforce housing. We’ll work on the new water sources. Bravo on the effort.
Tim Twomey, Public Comment 7
No objective design standards. We need to keep our incredible design standards. Vacancy taxes are only allowed in Charter Cities. The ECONorthwest study conflicts from the Public Draft information, and should be removed from the Appendix.
Maria Ruess, Public Comment 8
Very complete document. The housing problem is a national problem, and we need to be part of the solution. Question: Were sites lost in the edition? Question: How do ADUs relate to water? A vacancy tax would really help and should be implemented.
Response to public comments from Brandon Swanson, Community Planning & Building Director
Points of clarification:
We are not recommending 3rd stories; 2nd stories are currently allowed in the Municipal Code. ECONorthwest report was a starting point, a roadmap.
Objective Design Standards are only for affordable housing projects. Everything else would be reviewed against our normal guidelines. Besides, we (Carmel) would be the authors of any potential objective design standards.
Councilmember Ferlito
Current subjective guidelines can drag out a process to the point of making it unaffordable. We would be vigorous about drafting Objective Design Standards (ODS).
Planning Commissioner Allen
Only low-income projects are subject to ODS?
Response to Commissioner Allen from Brandon Swanson, Community Planning & Building Director
Low, very-low, and moderate-income projects are subject to ODS.
Attachment 3
Public Comment Report 2-3 EMC Planning Group
City of Carmel-by-the-Sea 6th Cycle Housing Element August 2023 Councilmember Baron
Not just hotels in the R-I should get the convert to housing benefit after moving units elsewhere.
Include commercial hotels to do the same. Suggests clarifying “unit” in Program 1.3.B. Marnie Waffle (City staff) says hotels could provide housing in exchange for hotel rooms. Baron suggests at least one conversion allowed, possibly more.
Pre-approved ADU plans likely won’t work in Carmel. Doesn’t seem realistic.
Sunset Center? Unrealistic to think housing would go on that site under ODS. It will need to be subjective – a design competition or public-private partnership. A housing trust fund would be good to fund that project. Waffle (City staff) says Baron is confusing “development standards” with objective design standards. Baron says Carmel owns the property (sunset Center) so the City is in control. Brandon Swanson says City could exclude the Sunset Center from the ODS overlay. Baron recommends incentivizing development of Sunset Center another way.
Objective design standards don’t make sense in our community. Slowing down the process isn’t a problem. It protects old houses from being razed. ODS might be a detriment to our community.
Ferlito clarifies ODS is only for affordable housing projects.
Program 1.3.C: encouraging ADUs. Suggests survey needs to be done to find out if ADUs are being lived in. Baron thinks not. Housing trust find money shouldn’t go towards making houses bigger. Baron would like to see ADUs forced to be lived in.
Vacancy tax needs a lot more thought. Pie in the sky. TOT is the most realistic. Vacancy tax means becoming a charter city and opens a bag of worms.
Baron expresses interest in TOT, vacancy tax, etc. but wants to hear others input. Baron says all these potential programs are worth considering. Ferlito says vacancy tax may be more palatable in 5 years, and points out this is an 8 year process!
Program 2.3, Barons really likes.
Program 2.4.A, Lot mergers. Prohibit please, and prohibit homes being replaced with commercial uses.
Program 3.1.A same as 2.3.A? What’s the difference?
Senior housing shouldn’t pay school fees.
Mayor Pro Tem Richards
Can we get certified without programs? Swanson answers: No. The State needs to see the effort.
Attachment 3
Public Comment Report 2-4 EMC Planning Group
City of Carmel-by-the-Sea 6th Cycle Housing Element August 2023 Planning Commissioner Allen
Are we better off with high level programs instead of defined programs? Response to Commissioner Allen from Brandon Swanson, Community Planning & Building Director
We can use general policy language.
Planning Commissioner LePage
We’re old and rich in terms of land value / appreciation. We’re dying off. Let’s think about what happens when current population dies? It will result in more outsiders coming in, more second homes. Vacancy will only go up. We need people (residents)! Not just visitors. The whole point of all this is getting people here. How do we encourage affordability. Coastal land is so scarce. Density needs to increase. We’re a dying community! Got to bring people in, people who want to live here.
That will provide culture, diversity, etc.
Planning Commissioner Locke
Affordability should be #1. I was a single mom when I moved here. I have a great job and still struggled to find something affordable. We need to facilitate another Carmel Foundation or MidPen housing project. ADUs are nearly never used for affordable units. None are deed restricted. City of Monterey has a 1st time homeowners program. But this is more about renters. They work here.
Councilmember Dramov
Where is the money going to come from for the trust fund? Shares concern about more City staff for all this program implementation and tracking of the unfunded state mandate. Vacancy tax is a huge infringement on private property rights. The document is too vague.
Planning Commissioner Delves
Read the document. It’s do-able. We are old with high vacancy. Many of us are at or below the AMI! Granted, retirement status affects that but still surprising. These stats should motivate us. We’re a hollowed-out community. If we’re vibrant we need kids! Sure, these plans might seem absurd to some today, but give it time. Gives Telluride example. State ADU law going all wrong here. I don’t like that State RHNA mandate #’s, but just ignore the numbers and read the document. It’s good.
It’s achievable if we want to do it. Just start.
Councilmember Ferlito
My three educated adult children can’t live here. Exclusionary. Hopefully these ADUs will at some time be lived in. We have cash poor, house rich people here. ADUs can help there.
Attachment 3
Public Comment Report 2-5 EMC Planning Group
City of Carmel-by-the-Sea 6th Cycle Housing Element August 2023 Planning Commissioner Allen
Agrees with Ferlito on the upside of ADUs. Yes, pursue ADUs. Strongly opposed to vacancy tax.
Concerned about need for more City resources with more population. Let’s focus on elderly housing. Stay away from rezoning and ODS. No multi-family housing please. Don’t reduce parking standards.
Mayor Pro Tem Richards
This is our document. Reach out to me if you don’t understand why we’re doing this.
Councilmember Ferlito
Carmel Foundation has a 5-7 year waitlist. Please add that to the document. Think about the idea that not everyone needs a car.
Mayor Potter
ADUs are farcical. Affordability by design is a misnomer. Don’t reduce parking standards. This whole process is unfortunate, wish we didn’t have to do this. We’re being forced to do this.
2.2 Community Outreach Website Comments
The Draft Housing Element was posted on the City of Carmel-by-the-Sea website and the dedicated Housing Element website (homecarmelbythesea.com), where community members were able to post their comments directly to the website. The following online correspondence was received via the dedicated Housing Element website (Housing Opportunities Made Easier (HOME)) online community outreach platform during the 30-day public comment period. Comments and responses, including where revisions to the Draft Housing Element occurred, are provided below:
Comment #1, HOME Main Page
How is parking for the residents of the new affordable housing being addressed? I just attended a workshop on downtown parking congestion. The current affordable housing proposal includes converting parking lots into affordable units. How is the city providing the infrastructure, ie parking, to accommodate the population increase?
Response: Program 1.1.C: The City will offer waived or reduced parking requirements for affordable housing projects. Alternate parking programs such as bike and/or car share or free or discounted bus passes will be evaluated to offset reduced parking. If an existing parking lot is redeveloped, the same number of those existing spaces will be integrated into the design of the new housing development, not eliminated.
Attachment 3
Public Comment Report 2-6 EMC Planning Group
City of Carmel-by-the-Sea 6th Cycle Housing Element August 2023 This can be accomplished through the incorporation of underground parking lots, housing above atgrade parking, or simply re-organizing site plan design for more efficient accommodation of both parking and housing. Presently, Carmel Municipal Code Section 17.16.060 (Central Commercial (CC) District Regulations Applicable) waives off-street parking entirely for apartments in the CC district. In the 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."
Reference in document: Program 1.1.C
Comment #2, HOME Main Page
Why not prioritize more condos that can be purchased by homeowners that will take better care as owners.
Response: Program 1.3.A speaks to condominium conversions. The City restricts the conversion of existing apartments to condominiums in order to preserve apartments (which are typically lowercost housing options) throughout Carmel. Apartments cannot be converted to condominiums unless a new apartment is created to offset the conversions. Appendix A includes Figure A-17 which indicates that 43% of households in Carmel are renters (as of 2019). Renters have always been and continue to be a valued segment of our community.
Reference in document: Program 1.3.A
Comment #3, HOME Main Page
Draft is very well prepared but I am concerned that we are making commitments we cannot achieve.
The major properties identified such as the church parking lots and Bruno's parking lots and the small city area which serve as parks do not seem as practical areas for development. The following are some general thoughts/suggestions.
We, the citizens of Carmel-by-the-Sea, understand the need for more housing and have come up with formal responses to the state’s request for plans to meet the housing goals. We are also suggesting the following ground rules and recommendation to increase the probabilities that these plans will be successful over the defined period.
Ground Rules
1. Any new properties or housing units developed by the state’s requirement be required to fit into the charm and quaintness of the Village so that this charm and quaintness is not dissipated.
Attachment 3
Public Comment Report 2-7 EMC Planning Group
City of Carmel-by-the-Sea 6th Cycle Housing Element August 2023
2. Changes made to meet the challenges proposed by the state to increase the housing units in Carmel should not impact the current parking situation which is dire due to the number of daily tourists. Any parking spaces/areas lost by a change should be offset by the addition of 1.5 parking spaces/areas within the village. The added 0.5 space would be a step toward reducing the major parking issue in the Village.
3. Additional staff not be required by the city to implement the states directives. If additional staff is required, funding for this staffing will be provided by the state.
Recommendations for State and Federal Government to Aid the Process The underlying issue preventing additional persons/families living in Carmel-by-the-Sea is economic. Housing is very expensive and there is not a large supply in the almost 100% built out 1- mile by 1-mile area of the village. Carmel has a very large percentage of second homes which have very low occupancy rate and incentives that would make economic sense to sell some of these properties would increase available housing units.
1. Modifying properties for additional housing units will impact the tax basis of the property. It is recommended that the current tax basis of the property be maintained if the property is modified to provided added housing. Property costs, as noted, are very high in Carmel-by-the-Sea due to inflation and desirability. Proposition 13 fixes the taxes of property at the time of safe or major improvement to the property. Under current law, adding additional floors or spaces to an existing building or replacing the building to provide addition housing units would cause the property to be reassessed which in many cases would double or even quadruple the property taxes. Most leased commercial property in Carmel has the business leasing the property responsible for the property taxes including increases. A five million-dollar building reworked to provide a second or third level would probably have a property tax impact of at least $5,000/mo. which unless offset will drive out many small businesses. The Village downtown is almost all small businesses.
2. Persons selling their property to agencies such as Carmel Foundation which provide low-cost housing could be given a State and Federal capital gains tax break to make the sale more desirable and increase the amount of property available for persons/families with limited means.
3. Double the deduction from selling your home from the current $500,000 per family to $1,000,000 to make it less costly to sell your home. This deduction also be applied to second homes but should be limited to a single transaction on a second home in an impacted area per person/family if the result of the sale was a permanent resident in the Village.
4. Revenue from added low-cost housing be tax free so that the cost to the renter can be minimized.
Crazy Thoughts
Attachment 3
Public Comment Report 2-8 EMC Planning Group
City of Carmel-by-the-Sea 6th Cycle Housing Element August 2023
1. State allow/help Carmel to sell off Flanders Mansion. This property is not within Carmel-by-theSea proper but is adjacent and would provide additional housing for the area. Carmel has been trying to rid itself of this property for years but has repeatedly been stopped by what many would consider frivolous issues. Selling this property potentially would allow the Village to make early contributions to the Trust Fund envisioned.
2. The vast majority of low-cost housing in the area is provided by the surrounding communities of Monterey, Pacific Grove, Seaside, Marina and Seaside. Potentially Carmel-by-the-Sea could procure property in these adjacent areas and designate it for low-cost housing if this would meet the State’s requirements.
Question
1. What would happen to the current major water issue if all the homes in Carmel-by-the-Sea were occupied rather than the current situation of ≈50% occupancy?
2. Does state want more housing units or more people living in Carmel. Is it less expensive and more practical for city to buy housing that is not being used and then manage it to meet state goals of more affordable housing?
Response: Comments noted. Program 1.1.C speaks to parking; the City will offer waived or reduced parking requirements for affordable housing projects. Alternate parking programs such as bike and/or car share or free or discounted bus passes will be evaluated to offset reduced parking.
Existing parking would be integrated into new housing, not eliminated.
New housing units will still be built to mirror the charm and architecture of the village, whether they are reviewed under the City's existing design guidelines or the (not yet crafted, not yet implemented) Objective Design Standards.
Response to Q1: The City does not manage the supply of water credits. Carmel is under the jurisdiction of the Monterey Peninsula Water Management District (water district) and receives its water from the California-American Water Company (Cal-Am). The water district 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.
Response to Q2. The State (HCD) requires Carmel's Housing Element to plan for 349 housing units.
Reference in document: Program 1.1.C
Attachment 3
Public Comment Report 2-9 EMC Planning Group
City of Carmel-by-the-Sea 6th Cycle Housing Element August 2023 Comment #4, HOME Main Page
Has a combined community effort, Carmel and Carmel Valley, been explored to be sited at Fort Ord? Seems like having enough space for a planned community would be beneficial to all. And would be a better use of time and resources.
I understand we need to respond to state requirements, but sometimes having a plan B to propose can go a long way.
Response: Comment noted. State law requires each jurisdiction to plan for affordable housing within their own community.
Reference in document: Not applicable.
Comment #5, HOME Main Page
The county owns many acres of land adjacent to CBTS. They should sell a portion of these properties to developers and require them to build a percentage or these be condos or other moderate income building types. There should be incentives for any new units to be primary residences.
Response: Comment noted. State law requires each jurisdiction to plan for affordable housing within their own community.
Reference in document: Not applicable.
Comment #6, HOME Main Page
An excellent job in looking for places to comply with the new law! My suggestions
1. If feasible, dig 4 floors at the Sunset Center current parking lot. The creates parking for the residents and the public. Ground level and two floors up, more floors new housing.
2. If feasible at the Pit, do the same thing, except ground level for businesses. Quit delaying this project for personal reasons of taste.
3. If feasible, do the same as #1 to the public parking lot near the police station.
Stay out of the parking lots of businesses
Attachment 3
Public Comment Report 2-10 EMC Planning Group
City of Carmel-by-the-Sea 6th Cycle Housing Element August 2023 #1and #2 and #3 will also provide needed parking. Adding parking meters won’t solve parking problems because drivers with money will use the good spots, sending more vehicles with out the dough into residential areas.
4 Add a third floor to buildings where owners agree so long as nobody’s view is totally blocked
5. See if city can purchase the very few vacant lots or partner with owners to construct any single Or duplex rentals or sales.
6. Amend city laws to get this done to provide needed housing for workers.
My two cents worth!
Response: Comments noted, with responses below.
Some sites with parking lots have been retained on the sites inventory list on the condition that existing parking spaces will be incorporated into the design of any future housing project.
1. Comment about underground parking with housing above at Sunset Center noted. Sunset Center is identified as a site in the Sites Inventory.
2. There are currently 28 parking spaces proposed for the Pit, with mixed use (businesses and housing) above. The revised project will return to the Planning Commission in August. The applicant has not included any affordable housing units in the project; all units will be market-rate.
3. Vista Lobos is also an identified site in the Sites Inventory. Private property owners will not be forced to redevelop their properties even if the sites are included on the Sites Inventory; the City can only incentivize redevelopment, not require it. Where existing parking exists, new projects will need to include the same amount of parking (either through an underground garage, parking at-grade with housing above, or re-organized site design.
4. The City is not proposing to increase the height limits to 3-stories. The RHNA can be achieved in the 6th cycle through more efficient use of existing building sites such as conversion of 2nd floor office space to residential, second floor additions to one-story buildings, and redevelopment of parking lots. Additionally, the City is proposing a third-floor mezzanine to further incentivize affordable housing.
5. The Sites Inventory includes the Sunset Center north and south parking lots, and the Vista Lobos parking lot which are owned by the City. The Norton Court senior housing development is an example of an on-going public-private partnership between the City and the Carmel Foundation whereby the City retains ownership of the land and the housing is managed by the Foundation. The City looks forward to entering into new public-private partnerships to advance our housing goals.
Attachment 3
Public Comment Report 2-11 EMC Planning Group
City of Carmel-by-the-Sea 6th Cycle Housing Element August 2023
6. Please review Chapter 2 for proposed programs to meet the RHNA goal.
Reference in document: Appendix C; Program 3.1.A
Comment #7, HOME Chapter 1
This is a bad result. The City built 18 housing units and none were affordable to lower and moderate income households! Why not, and what's the plan to address the 187 affordable units by 2031?
Response: Comment noted. The City is revising programs and policies to ensure the RHNA is met in 6th Cycle. While the City continues to rely on the private development market, and outside organizations (such as the Carmel Foundation) to create and maintain affordable housing projects, the City has committed to exploring an Affordable Housing Trust Fund (see Program 2.1.D) in the 6th Cycle. The Fund would be dedicated to the creation, maintenance, and rehabilitation of affordable units. Please review Chapter 2 which includes goals, policies, and programs aimed at meeting the City's RHNA at all income levels: very low, low, moderate, and above-moderate.
Reference in document: Program 2.1.D
Comment #8, HOME Chapter 1
Very thoughtful and balanced approach. Greatly appreciate the effort going into this importance process.
Response: Comment noted.
Reference in document: Not applicable.
Comment #9, HOME Questions and Answers Page
More studios and 1 bedroom please the more you make the more prices will go down.
Response: Comment noted. The City is exploring a "minimum density" to encourage the creation of more small units, as opposed to fewer large units. See Chapter 2, Goals, Policies, and Programs, specifically, Program 3.1.G.
Reference in document: Program 3.1.G.
Attachment 3
Public Comment Report 2-12 EMC Planning Group
City of Carmel-by-the-Sea 6th Cycle Housing Element August 2023 Comment #10, HOME Questions and Answers Page
Please eliminate all the vacation homes. Require properties to be lived in by the owner a majority of the year. The housing costs would plummet, which everyone will complain about in the short term.
The long term benefit to the community immediately outweighs any of that Start with simply putting your feet down on the short term rentals.
Response: Comment noted. Program 2.1.D involves the establishment of an Affordable Housing Trust Fund. Sources of funding identified include a possible vacancy tax, which will be explored during the 6th Cycle.
Reference in document: Program 2.1.D
Comment #11, HOME Questions and Answers Page
I appreciated Chapter 2 on goals of the effort but it seems these goals were written to help explain why we need 349 units, a target mandated by the state but not really something that our community has taken ownership of. I suggest we step back and really look at the kind of community we want to be in the future and how housing can make that happen. What kind of demographic do we need to attract to stay vibrant and relevant? Where do those people want to live and work and what are their housing needs and how do we attract them? What trade-offs are we willing to make to achieve whatever goal we prioritize? Knowing the "why" will make the "what" and "how" much easier to achieve. Let's paint a picture of what the Carmel of the future can be with new energy and a longterm, sustainable future. The housing costs would plummet, which everyone will complain about in the short term. The long-term benefit to the community immediately outweighs any of that. Start with simply putting your feet down on the short term rentals." Response: See Appendix H - Stakeholder Survey Results. This survey includes community members responses about what types of housing they would like to see built in Carmel-by-the-Sea.
Reference in document: Appendix H.
Comment #12, HOME Questions and Answers Page
2.2 of the Initial Public Review Draft of the 6th Cycle Housing Element Update RE: Program 2.2.A:
Historic Preservation Educational Programs: “…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 residential rehabilitation of historic resources.” It is unfair, discriminatory, and segregating to give zoning flexibility and incentives to a certain style house, but not to other style houses. The term, “historic resources,” refers to a certain style house Attachment 3
Public Comment Report 2-13 EMC Planning Group
City of Carmel-by-the-Sea 6th Cycle Housing Element August 2023 that is not historic, so is a confusing and deceptive term. The Historic Resources Board was instructed by the city that the proposed program to give zone flexibility and incentives to a certain style house must NOT be combined with the National Registry of historic houses and must be completely separate and have nothing to do with it. The city told it to change the name of the proposed program to make it clear it was not part of the National Registry of historic houses.
Therefore, it cannot be combined in the draft either. “Educational Programs” cannot enforce or endorse any style house and can’t “educate” as to what style house is or isn’t acceptable.
Response: The historic preservation ordinance already provides zoning flexibility and incentives for all buildings on the historic inventory regardless of style. No changes are proposed to these provisions. The Housing Element program reinforces these existing provisions and commits to promoting them over the next 8 years. The Housing Element program is independent of the recent discussions of the Level 2/Notable Homes proposal being discussed with the Historic Resources Board.
Reference in document: Not applicable.
Comment #13, HOME Potential Sites Inventory Page
Forest Cottages Specific Plan: 4 single-family residences on a 9,892 SF lot and 2 multi-family deedrestricted in perpetuity very low/low-income residences on a 3,019 SF lot Response: The Forest Cottages site has been added to the Sites Inventory.
Reference in document: Appendix C.
Comment #14, HOME Potential Sites Inventory Page
I think we are at our max of housing in this small village. consider, traffic, pollution,water etc.
Response: The City has identified potential sites to accommodate the City's 349-unit RHNA goal.
The environmental impact of these units will be described and evaluated in the CEQA analysis under development in the Fall of 2023.
Reference in document: Not applicable.
Attachment 3
Public Comment Report 2-14 EMC Planning Group
City of Carmel-by-the-Sea 6th Cycle Housing Element August 2023 Comment #15, HOME Potential Sites Inventory Page
The property currently for sale at 24744 Dolores Street would be an excellent development site for multi-family housing. It's 1.57 acres, walking distance to downtown, next door to Stevenson school, set back from the neighboring homes. I suggest you form a private/public partnership to purchase the property, prepare it for low-income, multi-family development, then sell it at a profit to a developer. (I have no relationship whatsoever to the property, the owners of the realtors involved.) Just seems like a really rare opportunity.
Response: This site is outside CBTS City limits in County jurisdiction.
Reference in document: Not applicable.
Comment #16, HOME Potential Sites Inventory Page
[Sunset center is an] ideal place for multiple family housing and studio apartments over parking.
Response: Sunset Center has been identified in the Sites Inventory for housing over parking.
Reference in document: Appendix C.
Comment #17, HOME Potential Sites Inventory Page
The Sunset Center plays a prominent role in the downtown parking plan. Please don't add to the parking and congestion problem by eliminating this parking area and bringing in more people.
Response: Program 1.1.C: The City will offer waived or reduced parking requirements for affordable housing projects. Alternate parking programs such as bike and/or car share or free or discounted bus passes will be evaluated to offset reduced parking. If an existing parking lot is redeveloped, the same number of those existing spaces will be integrated into the design of the new housing development, not eliminated. This can be accomplished through the incorporation of underground parking lots, housing above at-grade parking, or simply re-organizing site plan design for more efficient accommodation of both parking and housing. In the case of Sunset Center, the existing topography lends well to parking with housing above.
Reference in document: Program 1.1.C
Attachment 3
Public Comment Report 2-15 EMC Planning Group
City of Carmel-by-the-Sea 6th Cycle Housing Element August 2023 Comment #18, HOME Potential Sites Inventory Page
Redevelop the pottery and yoga studios on the Southern side of the [Sunset Center] property, in addition to the parking lots. There's a lot of under-utilized space on this lot.
Response: The Sunset Center south parking lot as well as the north lot have been added to the Sites Inventory list. Because the yoga and pottery studios at the south lot are Inventory-listed historic resources, they would remain and be incorporated into the design of any new development.
Reference in document: Appendix C
Comment #19, HOME Potential Sites Inventory Page
This is a prime spot for more density. Rethink how this property can be used and find a way to get it usable again by a new owner.
Response: It appears as though this comment is in reference to Flanders Mansion. The City has not included Flanders Mansion in the 6th Cycle Sites Inventory. However, the City has identified other City-owned sites (Sunset Center north and south lots and Vista Lobos) as viable sites for redevelopment.
Reference in document: Not applicable.
2.3 Email Comments
Twelve comments were submitted by email to the City and/or the Housing Consultant at [email protected]. Due to length, responses received via email are included as an attachment to this document labeled: Attachment A – Email Comments and Responses.
1. Cynthia Wagner Weick, email dated June 11, 2023;
2. Nancy and Tim Twomey, email dated June 14, 2023;
3. Sam Farr, email dated June 15, 2023;
4. Karen Wood, email dated June 24, 2023;
5. Leslie Williamson, email dated June 26, 2023;
6. Erin Allen, email dated June 29, 2023;
7. Stephen Engblom, email dated June 30 2023;
8. Michael DeLapa, email dated July 6, 2023;
9. Shannon Hughes, email dated July 6, 2023;
10. Stephanie Locke, email dated July 6, 2023;
Attachment 3
Public Comment Report 2-16 EMC Planning Group
City of Carmel-by-the-Sea 6th Cycle Housing Element August 2023
11. Monterey Bay Economic Partnership, email dated July 6, 2023; and
12. Esther Goodhue, email dated July 5, 2023.
Attachment 3
Email Comments and Responses
ATTACHMENT
A
Attachment 3
Attachment 3
Email Comment #1
Received from Cynthia Weick
Thank you for making available the Initial Public Review Draft 6th Cycle Housing Element Update (2023-2031) for the City of Carmel-by-the-Sea, June 5, 2023. As full-time residents of Carmel-by-the-Sea my husband and I have followed the development of this document by reading prior reports, attending meetings and researching other related materials from across the state.
Below are three general comments/suggestions, followed by specific comments/suggestions. • Please create an executive summary at the start of the draft that succinctly details what is being proposed in terms of policy/program/code changes and specific sites. As is, the reader is expected to piece together the various recommendations to create a full picture of the changes recommended and their implications. This is not the same as the mostly topical summary provided on the HOME website – the information at the bottom of page 1 and top of page 2 in this summary is a start but needs to be enhanced to create a fuller picture. Comment noted.
• The document needs to be proofread. Comment noted.
• Quotes derived from public meetings are highlighted in the draft, and imply strong and unanimous community support of the plan that has been crafted. From other sources, the Pine Cone for example, there is a good deal of dissonance within the community over the housing issue. Moreover, a positive comment from a community member does not necessarily imply support for the entire plan, although this is the impression given in the draft. Comment noted.
My specific comments (in bold) follow passages from the draft (italicized).