Carmel-by-the-Sea is a community with a high quality of life, a healthy environment, and renowned architecture. The long-term vitality of Carmel-by-the-Sea and the local economy depend upon the availability of various types of housing to satisfy the community’s local housing needs while continuing to be a vacation destination for all. As Carmel-by-the-Sea looks towards the future, increasing the range and diversity of housing options is integral to the City’s success.
This Housing Element serves as a continuation of the City’s commitment to ensuring new opportunities for residential development, as well as preserving and enhancing existing neighborhoods.
This paragraph sets the stage for many of my comments below. Most regard the need to explicate more fully how the changes proposed demonstrate “the City’s commitment to ensuring new opportunities for residential development, as well as preserving and enhancing existing neighborhoods.”
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The Carmel-by-the-Sea 6th Cycle Housing Element represents a sincere and creative effort to meet State housing mandates within the constraints of a fully established built-out community, limited land availability, coastal hazards, and extraordinarily high costs of land and housing. … “the need to protect the natural environment” should be added here. This is seminal value of the community and should be among the criteria used for developing new opportunities.
Response: Comment noted. Added to page 1-1 and A-92.
The City has a higher share of white residents than other jurisdictions in the Monterey Bay Area as a whole, a lower share of Latinx residents, a lower share of Black residents, and a lower share of Asian/Pacific Islander residents.
This is clearly and unfortunately true. The City and Chamber of Commerce should study why Carmel by the Sea is not viewed as a desirable area by LatinX, Black and Asian/Pacific Islanders who do indeed have the financial means to afford market-rate homes here. Are current residents unwelcoming? And how many of Carmel’s businesses are owned by LatinX, Black and Asian/Pacific Islanders? What is deterring this? If increasing racial/ethnic diversity is accomplished only through offering “affordable housing,” incorrect stereotypes that associate race/ethnicity and economic status will simply be reinforced. Not all non-white people are low income, and a truly diverse community should reflect this fact.
Response: Comment noted; the City will partner with the Chamber on this issue.
The City will continue incentives and provisions that facilitate development on small sites, including waived or 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 also further evaluate the parking ratio and/or reducing parking requirements in the SC and RC zoning districts to help facilitate market rate housing. Alternative parking programs such as car share will also be considered to offset reduced parking.
While this clause appears to regard 20 units in this plan, it seems to have repercussions for additional current and future development. Parking for residents, employees and visitors is already problematic in Carmel. If affordable housing replaces parking lots in the City, and only 0.5 parking spaces are allocated for new units (some of which will have multiple new residents), the plan needs to specify where parking opportunities will be expanded to accommodate additional cars. If the intention is to expand parking along residential streets A-2
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this needs to made explicit. This will have a deleterious impact on the aesthetics of the residential community – current and potential residents need to know about it.
Response: Existing parking would be integrated into new housing, not eliminated.
Carmel Municipal Code Section 17.14.060 (Central Commercial (CC) District Regulations Applicable) waives off-street parking entirely for apartments. 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. Alternative modes of transportation will also be explored.
Pursuant to coastal zone requirements, the City has recognized existing R-1 motels as an important coastal visitor asset and economic base in the community and there are a number of older non-conforming motels and hotels in the R-1 residential zoning district. These commercial establishments can be encouraged to transition out of residential areas and be rehabilitated as multifamily residences. These properties are located in key residential areas and this policy would diversify the housing stock through a more affordable means of rehabilitating and refurbishing existing buildings. In order to encourage these properties to transition into permanent multi-family residences and to retain the same number of motel rooms to accommodate coastal visitor access in the City, the City will develop a program to incentivize the transfer of development rights of motels located in the R-1 zoning district to the commercial district.
It is concerning that the City is prioritizing visitors and the local economic base over the residential community of Carmel. It is also concerning that additional commercial zoning will be added to the R-1 residential zone. In the future will this be expanded such that developers can covert properties in other R-1 zones to commercial uses, affordable or not? What will prevent this? This should be made explicit.
Response: There will not be additional commercial zoning in the R-1 district. Existing R-1 hotels (a commercial activity) would be encouraged to relocate to the commercial zones to make more housing available in the residential zone (i.e. motel converted to multi-family housing).
Additionally, the City has number of motel units that would greatly benefit from having an affordable on-site employee housing. These units would alleviate the current lack of housing that many employees in Carmel face.
This is a great example of how businesses in Carmel can and should support the employees who make them successful. Carmel is a small jurisdiction that has a disproportionately large and dense commercial sector that mainly serves the tourist industry. This appears to be driving much of the additional housing needs. The commercial sector should take more responsibility for making sure its employees are adequately compensated and can achieve an acceptable standard of living.
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Response: Comment noted.
Program 1.3.E: Amend the A-2 Zoning District - AFFH
The Community and Cultural Center Zoning District, A-2, allows senior housing (55+) as a permitted use in addition to uses that provide cultural and community activities associated with the arts, education and recreation; however, development standards are not specified for the A-2 district and design review is required. The lack of development and design standards adds uncertainty and can significantly lengthen the development process. Amending the A-2 zoning district with clear setbacks, height, and objective design standards will add clarity and remove a development constraint. The City will amend the Municipal Code to include clear development standards for the A-2 zoning district to encourage affordable senior housing.
It is wise to delineate development and design standards. Failing to do so for any and all new opportunities will transgress the introductory statement on page 1-1 in which the City commits to “preserving and enhancing existing neighborhoods.” Moreover, if affordable housing is of lesser quality than market rate housing, lower income residents will be treated unfairly. If the goal is to create a cohesive community within Carmel, low-income residents should not be relegated to substandard housing and thus be stigmatized.
Response: Comment noted.
Program 1.3.F: Manufactured Homes on a Foundation System.
The City current permits manufactured homes on a foundation system on lots zoned for conventional single-family residential dwellings pursuant to State law Government Code 65852.3. Manufactured homes represent an affordable and cost-effective form of housing. The City will amend the Municipal Code to include manufactured homes as a permitted use in the R 1 zoning district subject to the same development standards to which a conventional single family residential dwelling on the same lot would be subject This passage appears to make sure that manufactured homes would have to meet similar standards as any single-family dwelling in Carmel. In the last sentence, however, the wording should be changed to “development AND DESIGN standards.” Response: Comment noted.
Program 2.3.A: Preserve and Increase Second and Existing Third Floor Residential Uses - AFFH The retail and office landscape is shifting and the City continues to experience retail and office vacancies. This shift represents an opportunity to the increase supply of housing including but not limited to housing over first-floor commercial uses, as a preferred development form in all Commercial Districts. The City will proactively work with property owners to encourage conversion of vacant existing second and third stories to affordable residential uses. The City will continue to prohibit the conversion of existing second-floor residential floor space to commercial use and will require newly constructed floor space at the second floor to be used as A-4
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residential units.
Consideration should be given to converting any and all vacancies in retail and office buildings to housing, including the first floors. Business to residential conversions should be made whenever possible as this will open up opportunities for housing.
Response: Comment noted. Carmel Municipal Code (CMC) Chapter 17.14 (Commercial Zoning Districts) encourages residential uses in all three commercial zoning districts (CC, SC, & RC). CMC Section 17.14.040.N.5 prohibits new residential units on the first story of any building in the CC district IF the units would front directly on a public street. Ground floor commercial space that does NOT front on a public street can be converted to residential use. Additionally, ground floor commercial space in the SC and RC could also be converted to residential use. The City will include this information in educational materials that promote the creation of new housing through conversion of existing commercial space.
Program 3.1.B: Housing for Extremely-Low Income Households - AFFH Providing housing units for Extremely-Low Income Households earning 30 percent or less of the Area Median Income (AMI) for Monterey County has proved challenging for the City. The City will continue to place specific emphasis on the provision of family housing and non-traditional housing types such as single-roomoccupancy units and transitional housing.
The plan needs to explicitly address how parking will be made available to these sorts of households, and how residents in these households will be provided with needed services, as well as access to affordable groceries and other necessities.
Response: Comment noted. 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. Car share and bus passes will also be explored. The City’s “Housing Resources” webpage will provide information about City and County housing programs and services.
Program 3.1.G: Affordable Housing Overlay Zoning District - AFFH Overlay districts are zoning districts established by the City to carry out specific purposes. Overlay districts can be constraints to development, or they can be used as a tool to encourage certain types of development. Currently, the city does not have an overlay district to encourage affordable housing. An overlay that requires a minimum density of 33 du/ac for specific sites, including but not limited to, identified in the Site Inventory encourages a higher unit yield and improves the financially viability of the project by increasing the unit count. Minimum density is also a tool that works to ensure the limited available land in the City is used in an efficient manner and A-5
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lower densities are avoided. The City will craft an affordable housing overlay zone with a minimum density of 33 du/ac.
In order to make sure current residents in the R-1 zones - and potential buyers in R-1 zones - are fully informed, the plan should explicitly address whether or not this overlay district may be expanded in the future into R-1 areas.
Response: No, the overlay district would not include the R-1 area. There are no plans to expand it into the R-1 area.
According to U.S. Census Bureau data reported in a Housing Feasibility Study for the City of Carmel-by-the-Sea by ECONorthwest,1 a mere 2.6 percent of workers live and work in Carmel by-the-Sea, while approximately half of all workers live within 10 miles of the City and 26 percent commute from more than 25 miles away.2 Concentrations in hospitality and leisure services may create obstacles for local workers that earn lower-incomes and cannot afford to live in the community. Such imbalances of jobs to housing impacts an individual’s ability to integrate into the community due to long distance travel, excessive costs of travel, and reduced personal time.
The low percentage of workers who actually live in Carmel by the Sea should come as no surprise.
One, as stated in this report (Table 3-2) Carmel has a large number of people who are seniors, most of whom are retired and are not in the workforce.
Two, Carmel has a high proportion of retail operations, restaurants, etc. whose owners do not typically pay their employees wages or benefits that meet basic needs period, much less allow them to afford a home in Carmel.
Three, employees who have families and wish to live in, and ideally own, homes of a size larger than Carmel offers will choose to live elsewhere.
The argument that affordable housing will accommodate workers in Carmel is questionable and concerning given that prior reports estimate the number of employees in Carmel’s central business district at 2,100, and the number of residents in the surrounding community at 3,200, living mostly in relatively small homes on small lots.
Thought should be put into ways in which employees can be better paid and provided with benefits – a mandated higher minimum wage is a start, followed by mandated benefits. If a business has to pay substandard wages and benefits to employees to survive, then it is not a viable business. Consideration should be given to ways in which Carmel can attract businesses that offer higher and fair compensation to employees.
Response: Comment noted.
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According to the AMBAG 2022 Regional Growth Forecast, Carmel-by-the-Sea was projected to experience an employment growth of 17 percent (562 new jobs) between 2015-2045. This projected employment growth mirrors the County (17 percent) and is 4 percent higher than A-6
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Pacific Grove (13 percent), but reflects 1 percent lower than Del Rey Oaks (18 percent). This projected increase in job growth presents an opportunity for cities to construct additional housing options for the existing and future workforce.
This is a good example of how the City is showing preference for the commercial sector and tourism over the residential sector, and also demonstrates the vicious cycle created by increased commercial activity, especially low wage commercial activity. Why does the one mile by one mile City of Carmel need additional employment in the future? And why should any city be proud of creating jobs that pay substandard wages and benefits to people? Won’t the “additional housing options” associated with even more employment further transgress the commitment stated on page 1-1 to “preserving and enhancing existing neighborhoods”?
Response: Comment noted.
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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.
Is this consistent with the statement on page 2-8 Program 1.3.F: (above)? If so, add verbiage that indicates how this “new program” makes sure that manufactured homes would have to meet similar development and design standards as any single-family dwelling in Carmel. If not, indicate what this “new program” entails.
Response: This program ensures that the Carmel Municipal Code remains in compliance with state law.
Multi-Family Housing
Currently, the City allows multi-family housing without a conditional use permit (CUP) at densities up to 22 dwelling units per acre. In order to provide additional incentive to build multi family housing, the City will amend the Code to remove the CUP for multi-family developments up to 33 du/ac.
Clarify in this statement where this muti-family housing can be built. Is this allowed in R-1 zones or only in the Overlay District? (See p 2-16 Program 3.1.G: Affordable Housing Overlay Zoning District – AFFH, above).
Response: Multi-family housing is currently allowed in all commercial districts (CC, SC, & RC) and the multi-family district (R-4). It is not currently allowed in the single-family (R-1) district. This program would eliminate the requirement for a use permit in the existing districts where multi-family is currently allowed. Is it not allowed in the R-1 district.
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Email Comment #2
Received from Nancy and Tim Twomey
Thanks to all for all of your work on behalf of our Village. Great stuff.
General terminology confusion needing clarification. What is the difference between Design Standards versus Design Guidelines? If they are synonymous – please stay with Design Guidelines. If Design Standards are what is in code – then please call this out.
Response: Design Standards (if adopted after development and review by the public, the Planning Commission and City Council) would apply to specific projects downtown that include at least 20% affordable units. Applicants of such qualifying projects would be eligible for “By Right” project approval if all design standards are met. “By Right” would mean the applicant could bypass public hearings and have the project approved at the staff level. Think of design standards as “yes/no” checklist-style requirements. If not all design standards are met, the application would be processed through the City’s typical review process which involves public hearing(s) and compliance with the Design Guidelines, which include a mix of objective and subjective principles.
1. Page 21 – Program 1.1.B – Underutilized Sites – there are additional locations that should be considered outside of core listings provided. Why are they not on this listing? Response: The initial sites listed were selected based on the likelihood of redevelopment based on opportunities such as low land-to-improvement ratios, property owner interest, and/or current planning applications. Refer to Section C.3 Site Inventory, for more information on sites.
2. Page 22 – Program 1.1.C – Development on Small Sites – concerned about decreasing parking requirements (mentioned again below) and very concerned about removing any requirements for setbacks, etc.
Response: Comment noted. Carmel Municipal Code Section 17.14.060 (Central Commercial (CC) District Regulations Applicable) waives off-street parking entirely for apartments. 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. With regards to setbacks, there are no setback requirements in the CC or SC districts. These provisions are already in place.
3. Page 26 – Program 1.3.E – Amend the A-2 Zoning District – AFFH. Does this item require alignment inside the Design Guidelines/Design Traditions Project underway – or will it be resolved by City Staff?
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Response: Through a public process, development standards (i.e. parking, setbacks, height, floor area, open space, landscaping, etc.) and design guidelines will be developed that are appropriate for the A-2 district (which is limited to the Sunset Center property). Other options include a Community Plan District or a design competition with prospective developers.
The Design Traditions project thus far has focused on updating the design guidelines for the R-1 district. The in-progress update to the commercial design guidelines could also include multi-family housing.
4. Page 26 Program 1.3.F – Manufactured Homes on a Foundation - Concerned about embracing any "manufactured" homes, as they may not comply with factors in our Design Guidelines. This topic is also mentioned on page 191.
Response: State law requires that manufactured homes be a permitted use in the R-1 district (i.e., no use permit required). In the R-1 district, they are still subject to the residential design guidelines.
5. Page 26 – Program 1.4.A – Remove Use Permit requirement for multi-family development - AFFH. Please explain what is proposed here. Can you provide an example? Response: A use permit is another entitlement (at additional cost) that a developer must secure to obtain approval of a project. For multi-family projects, the use permit is a tool to require affordable housing when the density is greater than 33 dwelling units to the acre.
For projects with a density of 0-33 dwelling units per acre, the use permit provides little to no value as the code does not require any affordable housing at that density. This program removes a regulatory requirement that adds cost and uncertainty to a housing developer.
6. Page 27 - Objective Design Standards....The wording here is concerning. This program states that we lack objective Design Guidelines. Some of our current Design Guidelines ARE objective. And with Design Traditions 1.5, there is significant work to clarify what is Required/Objective vs Subjective/Recommended. Please consider acknowledging this in words used before final submittal.
Response: While some of the current design guidelines are objective, most are not. The effort to create additional objective design standards specific to multi-family housing will help streamline the review process and create more clarity and certainty for housing developers. These standards will be developed through a public process in collaboration with the community.
7. Page 28 Program 2.1.B Permanent Housing -AND- Page 29 Program 2.1.D Establish Affordable Housing Trust Fund – Please confirm yes or no, that our Village could consider funding a proposed Trust Fund via a vacancy tax ONLY if we became a Charter City – which is A-9
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a separate, involved, multi-year project if it was deemed beneficial or required.
Response: General law cities are authorized to enact a vacancy tax as a parcel tax pursuant to Article XIIIA, Sec. 4 of the California Constitution. A vacancy tax is only one potential option to fund an Affordable Housing Trust Fund. Including it in a menu of options does not commit the City to adopting such a tax but rather exploring the possibility during the 8-year Housing Element cycle. Based on policy direction received from the City Council on July 11, 2023, a vacancy tax will remain “on the menu” for now.
8. Page 30 Program 2.3.A Preserve and Increase 2nd and Existing 3rdFloor Residential Uses -AND- Page 32 Program 3.1.A Mixed Use Affordable Housing – Today’s Carmel Downtown look and feel is critical to the visitor and residential experience. And each business benefits from the charm and attraction that it’s next-door business bring to all passersby.
Encouraging property owners to add 2 or 3rd floors to 1 story buildings can negatively impact the Village charm and its overall livelihood. Caution and care must be applied to this recommended expansion.
Response: Two-story buildings have always been allowed in Carmel. Restricting two-story buildings downtown would require changing the Zoning Code and General Plan; this is not under consideration. In the Draft 2023-2031 Housing Element, the City identifies one-story buildings as an existing opportunity to meet the RHNA without resorting to more drastic measures. Further, increasing existing one-story buildings to two-stories may be an opportunity to actually improve the aesthetics of the downtown. This is particularly true of one-story buildings presently topped with unsightly mechanical equipment visible from the public right-of-way, and surrounded by blank walls of adjacent two-story buildings that contribute nothing in the way of architectural interest.
Another creative option to accommodate housing is to encourage third-floor mezzanines within two-story buildings. This would allow for additional living space within the building while maintaining the appearance of a two-story building from the exterior. As outlined in the Carmel Municipal Code, in the CC and SC districts, building height is limited to a maximum of 30 feet. In the RC and R-4 districts, building height is limited to a maximum of 26 feet. Building sites which face, abut, or adjoin any property in the R-1 district are limited to a height of 24 feet. Current height limits are not proposed to be changed.
9. Page 33 – Density Bonus – what is envisioned here? Can you provide potential examples?
Response: This is State law. The Carmel Municipal Code details both the State Density Bonus law and a local Carmel-specific Bonus Density provision in a manner that can be confusing and difficult to navigate. The intent is to review and simplify these regulations.
Refer to Appendix B for more information.
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10. Page 33 - Program 3.1.D Facilitate Housing Construction - all these Programs say the funding is from the General Fund.
o Let's say we get a housing boom and they comply with lower cost units - our city Income will decrease due to decrease in fees paid (should this decrease in fees be considered in future budget planning cycles?
Response: The General Fund will not be used to construct housing. However, the costs in staff time associated with amending the code, developing new policies, revising fee schedules, etc. would be covered by the General Fund. Additionally, offering reduced permit fees would require use of the General Fund to cover staff time processing applications. It is a policy decision (offering reduced permit fees to encourage development of affordable housing) that the City Council would need to consider. If, after appropriate consideration, the Council determines it is not financially feasible, the City does not have to adopt reduced permit fees. It is simply one of many potential incentives that the City can propose to encourage development of affordable housing. Lastly, another way to reduce costs to the developer is through streamlining the permitting process and prioritizing affordable housing applications.
o The North Lot of Sunset Center is a targeted site for housing. But the process of construction will severely impact the functionality of this major Event Center for 1-3 years...which is unfortunate and must be minimized.
Response: Comment noted.
11. Page 33-34 – Program Reduced Parking Requirements – AFFH. Anyone that knows, lives in and visit our Village – knows that parking can be a challenge. Waiving or decreasing parking requirements as we increase occupancy will only elevate these challenges. Are we prepared and do we understand the impact of reduced parking as a benefit to affordable housing? And - In the proposal to shift from 22 du/ar to 33 du/ar....this likely increases the need for parking spaces...which are waived in most of these projects.
Response: When evaluating parking reductions or waivers, it is prudent to also consider alternative parking models to offset the reduction in parking while still providing viable transportation alternatives. See also response to comment #2.
12. Page 34 Program 3.1.F Expedited Processing Procedures - AFFH Concerned about bypassing or respecting the requirements in our Design Guidelines in any major new/remodel building in our village.
Response: Comment noted.
13. Page 34 Program Expedited Processing Procedures – AFFH. What is the general A-11
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direction or thoughts for this item?
Response: Granting priority processing to applications that include affordable housing.
14. Page 34-35 Program 3.1.G Affordable Housing Overlay Zoning District What is meant by “Design review other than Objective Development and Design Standards” We cannot have AFFH housing negatively impact the character of our Downtown.
Response: It means we can only apply objective design and development standards as part of our Design Review process.
15. Page 54 – Vacant Housing by Type - Where does the data in Table 3-10 come from? Response: The source for data presented in Table 3-10 (pg. 3-14 of the Draft Housing Element) is the U.S. Census Bureau ACS 5-Year Estimate, 2019, Vacancy Status, Table ID:
B25004.
16. Page 69-148 – Fair Housing Recommendations – Not unlike other cities - economic factors are the only factors limiting diversity in our housing stock. There must not/should not be any other diversity or fairness barriers in our Village. We are one contiguous square mile, with no intentional or unintentional points of separation. It seems odd that this much content is needed in our Housing Element.
Response: Comment noted. State law establishes the required contents of a Housing Element. More information can be found at:
https://www.hcd.ca.gov/planning-and-community-development/housing-elements/buildingblocks
17. Page 157 - Section B - The Constraints to me, other than what is stated, are poor programs designed and funding by the state that enables low-cost housing for more than the FIRST buyer and giving control of what's best per jurisdiction to that jurisdiction.
Response: Comment noted.
18. Page 164 Development Standards – Open item “Lack of development standards for A2” should this be a topic to be considered inside the Design Traditions 1.5 project scope? Or would this be done by City Staff?
Response: See response to comment #3.
19. Page 168 – Commercial Design Review Process – shouldn’t there be a mention that any RC and R4 projects should algin with the Residential Design Guidelines and possibly also processes?
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Response: The residential design guidelines were developed with single family homes in mind. While there are certainly elements of the residential design guidelines that are appropriate for multi-family housing, more work should be done with multi-family housing in mind.
20. Page 172 – top of page 2
nd paragraph – regarding “pre-approved plans” This
recommendation is not supported by the Design Traditions 1.5 project. Any “cookie cutter” housing is NOT recommended.
Response: Agreed. The preapproved ADU plans would be building permit ready construction drawings. A variety of pre approved floor plans could be developed. The exterior colors, materials, and finishes would be site specific depending on the architectural style of the primary residence thereby aligning with our unique residential design guidelines.
21. Page 172 – Objective Design and Development Standards- Here again, is the mention of “lack” of adopted design guidelines. Our Design Guidelines today have both objective & subjective standards today. And the Design Traditions 1.5 effort is working on revisions that increase the objective terminology. This section also calls out that there are no objective standards for multi-family – when this work too is incorporated into the Design Traditions 1.5 effort. These must be indicated here.
Response: The intent is to create objective design and development standards for multi-family affordable housing to streamline the review and approval process. Adding in elements of subjectivity creates less certainty for a housing developer and adds time and cost to the review process. Adoption of any new standards would be part of a public process in collaboration with the community.
22. Page 181 – in Processing & Permit Procedures – in the second paragraph, you call out that ADU’s are exempt from the Design Review Ordinance. ADU’s really must align with requirements in our Design Guidelines wherever possible…even if ministerial.
Response: Objective Design Standards would accomplish this.
23. Page 189 – Summary of Governmental Constraints – PLEASE include mention that these “constraints” are in place to protect the charm and character of our Village in the Forest by the Sea. These factors are what provides the economic engine for our community and make it a wonderful place to live and visit. We cannot risk a slippery slope of lessening these review steps.
Response: Comment noted.
The programs in the Housing Element are specifically designed to encourage A-13
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development of affordable housing. No procedural changes would occur with the development of market rate single family homes.
24. Page 190 – bullet 5. This wording acknowledges that our Design Guidelines include both objective and subjective standards. They propose a new version of just objective guidelines – this separate version would cause significant version control issues and usability confusion points.
Please do not accept this recommendation.
Response: Objective Design Standards for affordable multi-family housing projects would be based on the core design principles of the village. The City currently has design guidelines for single family residential and commercial storefronts. The City has a separate set of design guidelines specific to commercial storefronts at Carmel Plaza. The proposed set of Objective Design Standards would focus on affordable multi-family housing.
25. Page 191 – ADUs & Manufactured Homes - Our upcoming ADU ordinance must embrace alignment with our (current or future) Design Guidelines – that are critical to maintaining the character of our Village in the Forest by the Sea.
Response: Comment noted. Objective design guidelines for ADUs are being considered.
26. Page 219 Carmel Foundation Site – Although I do not believe the Foundation is receptive to building housing in their primary location – this targeted site would require rezoning. It was our understanding that rezoning was not going to be required to meet our RHNA mandated requirements.
Response: The Carmel Foundation property is zoned A-3 and senior housing is currently allowed as a permitted use.
27. Page 245 – Program 3-4. 1.a Permanent Housing – I understand that we can’t consider vacant unit tax unless we are a charter city. So why is this even mentioned as a possibility? Response: General law cities are authorized to enact a vacancy tax as a parcel tax pursuant to Article XIIIA, Sec. 4 of the California Constitution.
28. Page 246 – Program 3-4 2.a Neighborhood Compatibility. I do not understand why this building bulk item should be marked as “Deleted” this is a critical requirement in the current and future Design Guidelines.
Response: Comment noted. This will continue whether or not it is a program in the Housing Element. The thought in deleting it is that doing what we have always done isn’t producing affordable housing, and we need to focus the Housing Element document on that goal. Market rate development will continue to be evaluated against the City’s current A-14
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Design Guidelines.
29. Page 247 – Program 3-5.3.c Subordinate Units – There is no mention of ADU alignment with any of the Design Guidelines and there must be. At least to indicate the strong desire for ADU’s to support the Guidelines especially tied to usable space, landscape, siting, finishes….
Response: Comment noted. This will be accomplished with the ADU ordinance.
30. Page 248 – Program 3-5.4.a Density Bonus – I’ve scanned our City Municipal Code and don’t get any real clarification on what this could entail. It doesn’t look to specify if it could include waiving requirements, or waiving fees or ????? Is this what you expect to “clarify”? Response: See response to comment #9.
31. Page 249 – Program 3-5.5.a & b Reduced Fees, Entitlement, Parking. These two descriptions mention “reduced parking in-lieu” fees….when in our FY2022/23 and upcoming FY2023/2024 budgets and prior years too – there is NO NET NEW inbound parking in-lieu fees being added. So, it is a real program or not???
Response: On June 2, 2020, the City Council adopted Urgency Ordinance 2020-003 waiving the “annual setting of the value of improved off-street parking facilities” (i.e. updating the parking in-lieu fee) until further notice. This Ordinance remains in effect until rescinded by the Council. The parking in-lieu fee of $54,080 per parking space was last adopted by Resolution 2003-72 and remains in effect. The City Council chose to hold the fee at the 2003 rate and not increase it.
32. Page 265 begins the ECONorthwest Feasibility Study – that likely shouldn’t be included in our final HDC submission. Or I question why it should be included.
Response: It must be included because it provides critical analysis of some of the sites that have the potential for housing development over the next 8 years. The revised draft will include an introduction to the ECONW Appendix to better describe the Feasibility Study and how it ties into the analysis within the full Housing Element draft.
33. Page 302 – Recommendations – These three items need edits and/or more discussion…as below….(below is copy/paste from current draft – and this is the EcoNorthwest report – that may or may not be applicable)
o Explore changes to development standards. Our review of Carmel’s zoning code found that overly restrictive development standards, such as the two-story height limit are not likely to facilitate maximum allowed densities. The City should explore options to remove these barriers A-15
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consistent with the findings above.
Response: This is a recommendation for the City to consider when updating the Housing Element and it is being explored in the proposed Housing Element programs. Rather than increase the two-story height limit, the City is proposing to establish a minimum density of 33 du/acre to encourage the development of affordable housing. o 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.
Response: Comment noted.
o 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.
Response: Comment noted.
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Email Comment #3
Received from Sam Farr.
For decades City and County General Plans have had to have approved Housing Elements indicating the numbers of units, their rents or costs and quality of the housing stock. They also have to use census data to inventory the residents as to age groups, income groups and ethnicity.
The goal is to sustain opportunity for all. You can’t export poverty.
Response: Comment noted.
Carmel has had a Housing Element for decades, but never enforced its responsibilities. Neither have most Cities and Counties in California, that’s why the Legislature is putting pressure on local governments to implement their own plans. The State doesn’t tell us where, when and how to make good on our promises to follow our General Plan, just insisting we get started after all these years. Just do it!
Response: Comment noted.
Carmel originated as a middle class town. Everyone who worked in the town lived here. It was a working class community. They built it, maintained it, and improved it. Tourism was an add on, not the primary purpose of Carmel. So strongly did our City Fathers feel this way they enshrined it in the preamble hanging in the Council Chambers. “Carmel is a Residential Community”. Q.
At what point do the empty houses no longer make it residential? If too few people are here to run Little League, volunteer for the Library Board, vote in elections do we lose being “a Community”?
Response: Comment noted.
Carmel, the School District, even the Regional Park district and the unincorporated lands around us have under utilized space to accommodate additional units for those that work here, or as limited income Seniors want to stay here.
Response: Comment noted.
Working with architects we can maintain our aesthetic beauty though spacial planning. As Citizens of this great town, that is famous for finding solutions to problems through design, we should help the electeds solve a problem that we created by pushing our historic workforce out of town. Welcome to the hot seat. Go Padres!
Response: Comment noted.
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Email Comment #4
Received from Karen Wood.
I understand we need more affordable housing for workers to live in the Peninsula but don't understand where the water is coming from. I know development has been stymied for decades due to our water issue. Also the infrastructure in Carmel Valley will be hard pressed to accommodate all the new housing planned out this way, especially Carmel Valley Road. I hope thought is given to building with this in mind. Just frustrating to see that while building affordable housing (which I'm all for), the majority of housing is moderate and above. I understand developers need to make a profit but perhaps our state could consider other ways which could enable much more affordable housing for many more people. Might this be up for discussion please read how Vienna has tackled this.
https://reasonstobecheerful.world/100-years-of-urban
housing-success/?utm_source=Reasons+to+be+Cheerful&utm_campaign=6f09839892- EMAIL_CAMPAIGN_2021_11_22_04_40_COPY_01&utm_medium=email&utm_term=0_89 fb038efe 6f09839892-389536856
Response: Comment noted. A City policy to clearly reflect water allocation priority and incentives for Extremely Low, Very Low, Low and Moderate-Income households will be adopted (see Program 1.2.A). In the 6th Cycle Housing Element, 57 extremely low, 56 very low, 74 low, and 44 moderate income units are required to be constructed. The City will continue to work cooperatively with the Monterey Peninsula Water Management District (MPWMD) to address water availability and infrastructure limitations that affect the ability to serve new housing development.
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Email Comment #5
Received from Leslie Williamson
Hello,
I know this is a bit down the road, but I think the point needs to be made very clear to property owners. In parts of Oregon, the entire property is reassessed when an ADU is added. I’m not sure how the County of Monterey handles property taxes in a similar situation.
Response: Comment noted.
Thanks for listening,
Lesli Williamson
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Email Comment #6
Received from Planning Commissioner Allen
Dear Brandon and Marnie,
After reading the Pine Cone on Saturday- I realized that I did not do a good job of explaining myself in regards to the Housing Element in our joint Council/Commission meeting. So I feel the need to expand on my answer.
After hearing my fellow Commissioners concerns- it made me think…..who are we targeting? And are we aligned on who we will attract to our village with affordable housing? I’d like to offer low income housing and set people up for success- I’m concerned about how they afford our restaurants? ($30 hamburgers) Our village markets? And services? (typically 100% more here than other areas) So they have to leave town for everything? Not able to wrap my head around that one.
Response: Comment noted.
So then are we trying to attract a young worker? I’m trying to visualize what would be appealing to a single 30 year old in our quiet town? Aside from beauty! Or is it the family with small kids? As addressed by Commissioner Delves in his comment around Halloween and the vibrance of a community. These folks are going to need financial support and a plan to home ownership.
Response: We received 154 Stakeholder Survey responses. These responses helped inform the demographics of the City as well as what types of housing community members are interested in. See Appendix H for an analysis of the Stakeholder Surveys.
I stated that I don’t want to make changes in our guidelines or offer incentives. I believe we won’t need to. Your plan is really good- and I think it will be well received during the State review process.
Response: Comment noted.
Somethings that I want to propose:
● An aligned “Vision of the Future” and how we see our community changing…..growing number of single people, Baby Boomers still owning the majority of housing and aging in place, Millennials unable to purchase homes, GenZers facing an unprecedented behavioral health crisis, home ownership at its lowest rate in five decades.
Response: Comment noted.
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● Expand 5.2.A for more connectivity with Not For Profit, Non Profit, Foundations and Charities from across the country and around the world. Residents want to help- they just need to know how.
Response: Comment noted.
● Utilizing our “prestige” to attract the right investors and create our future vs. waiting for a proposal. Collaborate with developers that share our vision and purpose. We don’t have to do this in a vacuum or silo- I’m sure plenty of influential people would help.
Response: Comment noted.
● Hold an annual “Design Competition” that would bring architects and designers from around the world to provide solutions to 1.4.B for housing in a village that is creative and innovative.
Response: Comment noted. The City will look into this option further. ● Then provide financial options (from investors and residents) that could be offered to new home buyers- potentially new home buyers that would renovate or build a “cottage” that has a proposed plan from the design competition for 2.4.B then potentially offer financial assistance through a rent to own program. A “Return to the Cottage” campaign.
Response: Comment noted.
● Rally volunteers to help in the rehabilitation of historic units in 2.2.A Response: Comment noted.
● Work with local architects to provide pro bono services to low income home buyers or owners wanting to add an additional housing option.
Response: Comment noted.
● Most of all- creation of a plan that doesn’t take the standard path. A plan that can really shape a positive future for our community.
Response: Comment noted.
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Email Comment #7
Received from Stephen Engblom
To the Carmel by the Sea Planning Staff and Housing Element team of consultants, I really appreciate the thorough work done to date. I am very proud to be part of a community that is taking the responsibility of being a good steward of our town while balancing the need to address our housing attainability crisis and environmental crisis. There is no better way to address our environmental crisis and add charm to our town than to find context appropriate ways of removing the eyesore of parking lots from our town and replacing them with well designed residences.
The Carmel-by-the-Sea Housing Element draft provides a comprehensive and well-thought-out plan for addressing the housing needs of the community while considering the unique characteristics of the city. Carmel-by-the-Sea is renowned for its high quality of life, beautiful environment, and distinctive architecture, and it is important to preserve and enhance these aspects while ensuring housing options for both residents and visitors.
The draft acknowledges the challenges faced by the city, such as limited land availability, coastal hazards, and high costs of land and housing. Despite these constraints, the Housing Element demonstrates a sincere and creative effort to meet the state's housing mandates and provide a suitable living environment for all residents.
By outlining housing production objectives consistent with state and regional growth projections, the Housing Element aligns with the broader goals of California's housing policies. It also focuses on special needs populations, ensuring that the housing plan addresses the specific requirements of vulnerable groups within the community.
Moreover, the draft identifies adequate sites for housing development catering to various income levels, thus promoting inclusivity and affordability. The analysis of potential constraints to new housing production demonstrates a thorough understanding of the local context and the need to balance development with environmental considerations.
Importantly, the Housing Element is evaluated for consistency with other General Plan elements, ensuring that it aligns with the broader vision and goals of the city. Additionally, the evaluation of Affirmatively Furthering Fair Housing highlights a commitment to equity and non-discrimination in housing practices.
Overall, the Carmel-by-the-Sea Housing Element draft represents a forward-thinking and comprehensive approach to addressing the community's housing needs. It balances the preservation of the city's unique character with the necessity of providing diverse housing options. By embracing creativity and considering the challenges specific to Carmel-by-the-Sea, this plan sets the stage for the city's long-term vitality and success.
I have a questions/suggestions.
Response: Comments noted.
Allow for future consideration of three stories
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While I think the site inventory is well thought out, limiting the study to current two story limitation across the board seems to all but ensure a problem in the following decade. Has the city looked at how the site inventory could yield more if zoning change in Commercial districts were allowed for three stories in select sites within Carmel-by-the-Sea. There is historic precedent for thee stories in the historic core (hotels: Cypress Inn, La Playa, Auberge), and given the topography of some of the biggest sites – three stories could be accommodated without disturbing view sheds. This could offer several benefits to the overall housing process. By increasing the building height limit in specific locations, it can help generate more market interest in these sites and ultimately yield more housing units – thereby easing pressure on future generations. Here are some reasons why three stories can be advantageous:
1. Increased Housing Capacity: By allowing taller buildings, there is an opportunity to maximize the use of available land and increase the number of housing units that can be accommodated on a given site. This is particularly valuable in areas where land is limited, and it becomes challenging to create housing options that meet the demand.
2. Diverse Housing Options: By introducing one extra floor on key sites / special buildings, it becomes possible to diversify the architecture and types of housing available. Three-story structures can create visual interest at key corners. And accommodate a mix of apartment-style units, townhouses, or even live-work spaces. This variety attracts a wider range of residents, including families, professionals, and individuals with different housing preferences and needs.
3. Increased Affordability Potential: With greater housing capacity, there is an opportunity to include a mix of market-rate and affordable housing units within the three-story buildings. This can help address affordability concerns and provide housing options for a broader range of income levels, ensuring a more inclusive and diverse community.
4. Improved Market Interest: Increasing the building height limit can make certain sites more appealing to developers, investors, and potential homeowners. The additional building stories can enhance the return on investment by allowing for a greater number of housing units, which can attract developers who are looking to maximize their investment in the area.
5. Preserving Open Space: By allowing an additional floor in specific areas, it may be possible to concentrate development in selected corners or centers of site, thus allowing a design the ability to accommodate more open space into their design concepts, like courtyards, or paseos, and the community to have the ability to consider some of the sites as open space in other parts of the community. This helps strike a balance between urban development and maintaining the natural and aesthetic appeal of Carmel-by-the-Sea.
Response: Comments noted.
However, it is essential to approach the implementation of a zoning change to allow for an additional floor carefully, considering the existing architectural character and context of the surrounding area.
Adequate urban planning, design guidelines, and community input should be incorporated to ensure that the increased building height complements the existing aesthetic and does not detract from the unique charm of Carmel-by-the-Sea.
By exploring the possibility of three stories in select sites, Carmel-by-the-Sea can potentially unlock more housing opportunities, accelerate the eradication of ugly parking lots in the village center, cater to a A-24
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broader range of residents, and create a sustainable and vibrant community for the future.
Thank You for the opportunity to comment.
Stephen Engblom and Lance Relicke
Monte Verde 3SW 12
Carmel By The Sea, CA 93921
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Email Comment #8
Received from Michael DeLapa
July 6, 2023
City of Carmel-by-the-Sea
P.O. Box CC
Carmel-by-the-Sea, CA 93921
RE: Carmel-by-the-Sea Public Review Draft Housing Element City of Carmel Housing Team:
LandWatch has reviewed Carmel-by-the-Sea Public Review Draft Housing Element. We support the goals to eliminate constraints and make it easier to build housing consistent with Regional Housing Needs Assessment (RHNA). Set forth below are specific comments on the site inventory and the proposed policies and programs. Monterey County residents need multifamily housing, not more single-family homes, especially in Carmel.
Response: Comment noted.
Monterey County has a housing problem: the housing local governments have approved is misaligned with the housing needs of local working families and individuals, especially those who work in Carmel. According to the U.S. Census Monterey County’s median household income is $82,000. A rule of thumb is that for a home to be affordable it should cost 2.5-3 times your annual income. For the average family in our county, they can afford a $250,000 home.
However, the median price of a home in Monterey County is almost $900,000 and in Carmel $1.9 million— impossibly expensive for most working families. Census data shows that almost 1,600 people commute daily into Carmel, likely to work. Those daily trips generate very significant greenhouse gas emissions.
Response: Comment noted.
For both equity and environmental reasons, LandWatch and others have advocated for more multifamily housing, which by its design is far more affordable than single family housing.
Single family homes by and large serve the needs of investors, 2nd home owners, and Bay Area commuters, not local working families and individuals. Indeed, it’s been reported that more than 40% of the homes in Carmel are vacant.
Response: Comment noted.
Unfortunately, Monterey County and its 12 cities have consistently approved single-family rather than multifamily housing. See Monterey County Housing Pipeline, which documents more than A-26
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21,000 residential housing units that have been entitled (approved) but not yet been built. Almost all of the approved units are single family homes. There are another 13,000 units for which entitlements are being sought, and most of these are also single-family homes. The data show a dire shortage of multifamily rentals, the costs (rents) of which align much more closely with median incomes in the County than the costs (mortgages) of single-family homes.
Response: Comment noted.
A. Housing constraints
Density: We encourage any program that will result in higher densities, such as the following:
• Program 2.3.A: Preserve and Increase Second and Existing Third Floor Residential Uses; • Program 3.1.A: Mixed Use Affordable Housing – AFFH;
• Program 3.1.G: Affordable Housing Overlay Zoning District – AFFH; and • Program 3.1.C: Density Bonus - AFFH. Increased densities are essential to enable projects that provide affordable units or mixed uses to pencil out. The City can unlock value by upzoning, and the City can require that some portion of that value be dedicated to provision of affordable units.
Response: Comment noted.
We believe these programs can be bolstered by providing for a local density bonus in addition to the bonus required by the State Density Bonus law. Program 3.1.C, calling for the City to “further review and revise” density bonus ordinances should be revised to provide a meaningful standard for that revision. For example, the City could provide a local density bonus equal to 150% of the state minimum. Such an approach is being taken by Sand City, which is proposing a 250 percent density bonus as long as 15% of the units are affordable to lower income households. In addition, the City could encourage density by providing one more concession than required by the State Density Bonus law at specified levels of affordability.
Response: Carmel Municipal Code Section 17.12.020.C (Bonus Density) offers a local density bonus of up to 44 dwelling units per acre in the R-4 Multi-Family District. In the Central Commercial (CC), Service Commercial (SC), and Residential and Limited Commercial (RC), the City proposes to increase the floor area bonus incentive from 15% to 25%. Additionally, the City will continue to offer incentives and concessions that facilitate development on small sites in the commercial and multi-family districts, including waived or reduced parking requirements for affordable housing projects, and density bonuses that allow for development up to 88 du/ac.
Program 2.1.A to create incentives for mixed use housing would provide a FAR bonus from 15 to 25% for projects that include affordable units. The program should make it clear that the increase in FAR is not simply the specified concession or waiver the City has decided to make for projects that qualify under the State Density Bonus law but that it represents an additional A-27
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concession for projects with affordable units or that it independently permits an increase in density.
Response: Comment noted. The FAR bonus is not tied to State Density Bonus law.
Program 1.4.A: Remove Use Permit requirement for multi-family development - AFFH. We support the removal of Conditional Use Permit (CUP) requirements for the R-1 (Single-Family Residential) and R-4 (Multifamily Residential), RC (Residential and Limited Commercial), CC (Central Commercial), SC (Service Commercial) and including the 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). Removal of the Use Permit Requirement will still leave projects encumbered by unnecessary discretionary review of site plans and design. Elimination of a CUP requirement should be coupled with adoption of objective standards for both site plan and design review, as discussed below.
Response: Comment noted. The City proposes to remove the requirement for a Use Permit(s) to streamline the entitlement process and facilitate affordable housing development. Currently, for projects with a density greater than 33 du/acre, the Use Permit is the instrument by which affordable housing is required. The City does not have an Inclusionary Housing ordinance. See program 3.1.A: Mixed Use Affordable Housing and program 1.4.B: Objective Design Standards.
Program 1.4.B: Objective Design Standards - AFFH. The program provides that the City will create Objective Design standards for multi-family affordable developments. The objective standards should apply to both site plan review (i.e., review to determine whether the project meets development standards such as height, setback, FAR, and density) and design review so that approval of MFR projects can be entirely objective.
Response: Comment noted. The City will develop Objective Design Standards that can be applied to both site plan review and design review.
With or without ministerial by-right approval processes, objective standards accelerate permitting and increase certainty. Development of objective standards should be required for development in residential zones R-1 (Single-Family Residential) and R-4 (Multifamily Residential), RC (Residential and Limited Commercial), CC (Central Commercial), SC (Service Commercial) and including the 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).
Response: Comment noted. The City proposes Objective Design Standards for multi-family affordable housing to further incentivize and diversify the housing stock.
Objective design standards are also being considered for Accessory Dwelling Units.
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By-Right Ministerial Permitting of MFR Infill Housing: In addition to provision of objective standards, the Housing Element should require provision of by-right, ministerial permitting for all infill multi-family residential projects. The adoption of objective development and design review standards can eliminate the need for discretionary review and obviate the redundant project-level CEQA review for urban infill projects in areas already subjected to program level CEQA review. CEQA review should take place when the City amends its General Plan or zoning code, not when a developer comes to the City with a conforming project.
Response: Comment noted. Due to small lot sizes in Carmel, housing projects are typically categorically exempt from CEQA.
Ministerial by-right approval should be applicable to MFR projects on an infill site as defined by the language from SB 35 or the CEQA infill exemption. (Government Code Section 65913.4(a)(2) [SB 35] or Public Resources Code Section 21094.5(e)(1)(B) [CEQA infill exemption].)
Response: Comment noted.
The ministerial permitting program should not apply to projects on environmentally sensitive sites, e.g., habitat for endangered, rare or threatened species; farmland of statewide and local importance; wetlands; earthquake/seismic hazard zones; federal, state, and local preserved lands, NCCP and HCP plan areas, and conservation easements; riparian areas; Department of Toxic Substances Control (DTSC) facilities and sites; landslide hazard, flood plains and, floodways; and wildfire hazard as determined by the Department of Forestry and Fire Protection. (See Gov.
Code 65913.4(6)(B) through (K) [sites excluded from ministerial permitting in SB 35].) Response: Comment noted.
Concerns for gentrification and loss of historic resources could be addressed by continuing to require discretionary review for projects on existing affordable housing sites, mobile home sites, or historic resources sites. (See Gov. Code 65913.4(a)(7), (10) [SB 35].) Response: Comment noted.
By-right ministerial permitting for all infill MFR units is not a stretch. Program 3.1.G will already require that the City provide by-right ministerial permitting based on objective standards for sites identified in prior housing elements that have not been developed and are proposed for at least 20% affordable housing. (Gov. Code, § 65583.1(c).) Response: Comment noted.
The Draft Housing Element mentions, but does not explain, a “Housing Priority Overlay Zone” in
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which by-right development would be permitted. City Officials have proposed a “Housing Priority Overlay Zone” to facilitate redevelopment and/or intensification of uses on sites included in the City’s housing sites inventory (see Table C-3, Appendix C). This overlay zone allows for housing development by right (objective design and development standards apply), minimum density, and otherwise overrides the development standards of the base district to ensure that the number and types of units identified in the housing sites inventory can be achieved. (Housing Element, p. 4-3.)
Response: Comment noted. Refer to revised Program 3.1.G.
The Housing Element does not identify the area subject to this Housing Priority Overlay Zone and none of the programs uses the term. Nor is it clear whether this Housing Priority Overlay Zone is to be adopted in the Housing element or is merely something being “proposed” by “City Officials” in some other context. The Housing Priority Overlay Zone should not be limited to the sites in Table C-3 identified in prior housing elements that are now subject to by-right permitting under Government Code Section 65583.1(c) as referenced in Program 3.1.G. All infill MFR sites should be included in the Housing Priority Overlay Zone.
Response: Comment noted. Refer to revised Program 3.1.G. Additionally, a map has been added to the draft Housing Element delineating the proposed boundary of the overlay district. The overlay zone is not proposed to be limited to the sites identified in Table C-3.
Program 2.1.D – Affordable Housing Trust Fund. The program is intended to raise $1 million for affordable housing through a vacancy tax, hotel tax, or transfer tax. We encourage the City to pursue a vacancy tax, which will have the dual benefit of raising funds and encouraging use of existing properties for primary residential use rather than vacation or second home use.
Response: Comment noted.
Program 3.1.E: Reduced Parking Requirements - AFFH. The city should consider reduction of parking requirements, by either eliminating parking requirements entirely or by setting lower requirements. This strategy is being used by hundreds of cities now to reduce the cost of housing and to increase effective density. (See https://parkingreform.org/resources/mandates-map/.) Response: Carmel Municipal Code Section 17.14.060 (Central Commercial (CC) District Regulations Applicable) waives off-street parking entirely for apartments. 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. The City will continue to offer waived or reduced parking requirements for affordable housing projects. Additionally, alternate parking programs such as bike and/or car share or free or discounted bus passes will A-30
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be evaluated to offset reduced parking.
Another strategy that should be adopted is to unbundle parking from rental units. The City should require that parking be separately priced in all rental unit contracts and that tenants be free to decline that parking.
Response: Comment noted.
Program 3.1.F: Expedited Processing Procedures - AFFH . This program needs to specify measurable objectives or objective standards. The program should be revised to specify a time period in which ministerial permit would be granted or the application deemed approved.
Specific fee waivers should be identified.
Response: Comment noted.
Program 3.1.A – Mixed Use Affordable Housing. This program is intended to create incentives for upper-story housing but it is insufficiently ambitious because it lacks mandates and reinforces an unworkable height limit. Instead of merely mentioning the “potential of allowing a third story when devoted to affordable housing subject to appropriate objective design standards, including the City’s 30-foot height limit,” the program should require the City to permit a third story for any kind of housing, subject to a workable height limit. A three-story building with typical 14-foot ground floor retail ceilings would require a height limit of at least 35 to 40 feet. The Appendix F ECO Northwest Feasibility Study makes it clear that the existing two-story height limit is the most significant limitation on achieving higher density. (Appendix F, pp. 13-14.) Response: Comment noted. The City is not proposing to increase the height limits to 3-stories. The RHNA can be achieved in the 6th Cycle Housing Element 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.
B. Housing resources - site inventory
Overall, we support the selection of sites which show the most potential for mixed use and multifamily development, such as Site #2, #4, #6, #9, #10, #14, #15, #16, #17 #18 and #21. There are 7 out of 21 sites (Site #1, #3, #5, #7, #8, #12, and #13) that are either primarily used as parking lots or which have an excess of parking area. The city has proposed Program 3.1.E: Reduced Parking Requirements - AFFH, but its policy could further remove development barriers by significantly reducing parking by setting maximum parking requirements for new developments or completely eliminating parking requirements.
Response: Comment noted. Table C-3 has been revised based on public comment and policy direction from the City Council. The City will evaluate alternative parking programs to offset reduced or waived parking requirements. Alternative modes of A-31
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transportation must be considered when evaluating the elimination of parking in Carmel due to limited access to public transit.
Thank you for this opportunity to comment.
Regards,
Michael DeLapa
Executive Director
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Email Comment #9
Received from Shannon Hughes
Here are comments on the plan for 349 units in Carmel.
Nice job involving the community through the public meetings and providing documents for us to react to.
I've reviewed the site inventory list and have concerns about many of them:
Public parking lots: Parking is already very limited in town and we have a separate parking effort that will likely require change, cost and communication. I support incentives to private property owners to open up their limited parking for the general public or to get them re-imagining their lots for an alternate use but I'm doubtful that will bring about many new housing units.
Response: Comment noted. If a parking lot is redeveloped, existing parking will be integrated into the new housing development, not eliminated.
Small lots: Even if half of these were redeveloped (and that's a huge stretch goal), it won't bring about the big changes that will be required to get to 349. I'd focus on bigger lots that have more of an opportunity to impact our total goal. Those include Flanders Mansion (how can this expansive property be better utilized with more density?) and Sunset Center (how expand development opportunities to the SE and SW corners to include the pottery and yoga studios?) Response: Program 1.1.B: Underutilized Sites. The City commits to actively investigate the feasibility of developing publicly owned sites. Table C-3 Sites Inventory includes the north and south parking lots at Sunset Center as well as the Vista Lobos site, all of which are owned by the City.
Privately owned property: While including these private lots shows a valiant effort, I doubt the incentives would be great enough to have many of these property owners redevelop/reimagine their space. I suggest a low probability factor on these options.
Response: Comment noted.
The committee has done a thorough job looking at the supply side but what about the demand side? What understanding do we have of the needs of the people who would be moving into these units in terms of location, desired configuration/size/type, timing...and can we work with other organizations (non-profit and otherwise) who specialize in understand the needs of future residents and getting affordable units built in communities?
Response: See Appendix H (Stakeholder Survey Response) for a summary of community member responses to questions about desired housing types.
Again, thanks for the opportunity to review.
Shannon Hughes
3017 Lasuen Drive, Carmel
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[email protected]
206-548-8329
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Email Comment #10
Received from Stephanie Locke
SUBJECT: Initial Public Review Draft Housing Element Update for Carmel-by-the-Sea Dear Ms. Wahl:
Thank you for the opportunity to review and comment on the City of Carmel-by-the-Sea’s draft housing element update. I am a resident of Carmel-by-the-Sea, serve the City of Carmel as a Planning Commissioner, and I work for the Monterey Peninsula Water Management District. It is from these perspectives that I offer the following comments on the draft document.
SECTION 1.6 PUBLIC PARTICIPATION
First, I’d like to compliment the City and EMC for setting up a user-friendly website (htps://homecarmelbythesea.com/housing-element-updates) that provides the resources necessary to review the housing element update. In the bulleted key components and interactive engagement plan, please be sure to include the public meeting held with the Planning Commission and the City Council at Sunset Center on June 15, 2023, that was also well-attended by the public.
Response: Comment noted. This meeting as well as the meetings of July 11, 2023 and August 1st, 2023 will be added.
SECTION 2.4 GOALS, POLICIES AND PROGRAMS
With the need to accommodate 113 Low- and Very Low-Income households, the City must do everything it can to incentivize development of these types of units. As I mentioned during the June 15thmeeting, the City should partner with local housing organizations such as the Carmel Foundation, Mid-Pen Housing, GLC Foothill Partners LLC, Ascent, and others. Perhaps the proposed Affordable Housing Trust Fund (Program 2.1.D) could be funded by donations, endowments, etc. in addition to General Fund monies to be used to reduce costs to developers of restricted Low- and Very Low-Income housing.
Response: Comment noted. The City will engage the public in the development of an affordable housing trust fund, and explore all available funding options including donations and endowments.
Program 1.1.A: Adequate Sites. There is a typo in the third sentence: “…new units consistent with RHNA be (should be “by”) continuing…”
Response: Comment noted.
Program 1.2.B: Address Infrastructure Constraints -- It is discouraging to read about Program
1.2.B, Address Infrastructure Constraints. The City must prioritize maintenance of infrastructure to ensure that existing and future residents and businesses occupy a safe and stable community.
Response: Comment noted.
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Program 1.3.B, R-1 Motel (Conversion) Development Transfer Rights -- AFFH is an interesting concept that should be pursued.
Response: Comment noted.
Program 1.3.C: Accessory Dwelling Units – AFFH is challenging given the Design Guidelines.
Standardized pre-approved ADU plans have worked very well for the City of Seaside, which is the only Peninsula city that has this program to date. I agree that this would reduce costs for some people who want to build an ADU.
Response: Pre-approved ADU plans will be explored via this program. Objective design standards can also be explored in conjunction with pre-approved construction plans.
Under this same heading is a proposal to incentivize owners of lodging facilities to provide on-site affordable employee housing in exchange for approval of an additional room. This is a great idea to facilitate workforce housing, although the site may or may not be able to accommodate new hotel rooms that might be offered as an incentive to convert one or two existing rooms into a living unit for an employee.
Response: Comment noted. This is an opportunity to create a housing opportunity for employees similar to the “manager’s unit” concept that was common in the past. The City looks forward to exploring the feasibility of this concept over the next 8 years.
Program 1.3.F: Manufactured Homes on a Foundation System – There is a typo in the third word:
It should probably read “currently” not “current.”
Response: Comment noted.
Program 1.4.B: Objective Design Standards – AFFH – Objective multi-family housing affordable design standards would certainly reduce the cost and uncertainty/risk of these developments, but the concept of standardization will run into objections from various residents and community groups.
Response: Comment noted. Preservation of the village character remains a top priority while the City looks for innovative solutions to diversify the housing stock.
Program 2.1.C: Monitor Affordable Housing Stock – AFFH – There are two typos on page 2-11 in the first paragraph under this heading. “The City will updated (should be update) its databases to better track data on the new construction demolition, conversion and replacements (should be replacement)…”
Response: Comment noted.
Program 2.3.A: Preserve and Increase Second and Existing Third Floor Residential Uses – AFFH. There is a comma after “commercial uses” that shouldn’t be there.
Response: Comment noted.
SECTION 5.0 ENERGY CONSERVATION AND REDUCTION OF GREENHOUSE GAS
EMISSIONS
A-36
Attachment 3
Monterey Peninsula Water Management District: I’m not sure that the inclusion of the list of rebates is necessary for the topic of furthering conservation in the construction of housing, but the one included in the draft document is out of date. The current version can be found at htps://www.mpwmd.net/rules/Rule141-TableXIV-1.pdf.
Response: Comment noted. The list of rebates has been updated.
More importantly and directly related to conservation in the construction of housing in Carmel-by-the-Sea are the water efficiency requirements for new construction and landscaping, remodels/additions, and changes in use (commercial to residential). MPWMD Rule 142 Water Efficiency Standards and Rule 142.1 Water Efficient Landscape Requirements codify these MPWMD requirements and should be included in the final document. In addition, the MPWMD enforces Rule 162 Stage 1 Water Conservation: Prohibition on Water Waste which is always in effect.
Response: Comment noted.
Program 2.4.B: Residential Inspection Services – The program speaks to maintaining property and identifying necessary repairs. The City inspects properties through the building permit process, but why not offer annual inspection services if requested? This should be focused on multi-family housing in the Village.
Response: This program has been removed due to lack of City resources.
GOAL H3: PROVIDE OPPORTUNITIES FOR NEW AFFORDABLE AND OTHER SPECIAL
NEEDS HOUSING
Policy 3.1: Incentivize affordable housing development, with an emphasis on affordable housing built to accommodate Extremely Low-Income residents [hyphenation changed]. Encourage the private sector to produce affordable housing – Shouldn’t this title include both Extremely Lowand Low-income housing levels? Response: Comment noted.
Program 3.1.B: Housing for Extremely Low Income Households – AFFH – The second paragraph of this program seems to suggest that of the ADUs being developed recently, there is “a portion of which are affordable to Extremely Low Income Households.” However, at the June 15, 2023, joint meeting of the City Council and the Planning Commission, I asked if there are any deed restricted affordable ADUs in Carmel, and I believe the answer was “no.” Without income restrictions, there is no way to know that an ADU is affordable to the occupant. Along this line, I’d like to see a requirement for more affordable units in multi- family housing. The current trigger is set too high, and there should also be incentives to make the inclusion of these units viable.
Response: Comment noted. Based on research conducted in the San Francisco Bay Area, ADUs can be affordable without the use of deed restrictions (which is currently prohibited under State law). When considered along with pre-approved construction drawings, fee A-37
Attachment 3
reductions/waivers, or other incentives, ADUs become more widely available to households with more modest incomes which increases the potential of an ADU being utilized for rental income. Additionally, while an ADU may not be used as rental housing today, it becomes part of the permanent housing stock, increasing the availability of housing well into the future as properties are sold to new owners or life circumstances change.
Program 4.1.A: Water Conservation – AFFH – See previous comment about Section 5.0.
Response: Comment noted.
Program 5.1.C: Shared Housing Information – AFFH – Consider using the HOME website or similar as a community bulletin board to announce housing opportunities.
Response: Comment noted. The HOME website will sunset at the end of the project.
However, the City has created a new Housing webpage
(https://ci.carmel.ca.us/post/housing-resources) which will be maintained and enhanced throughout the next 8 years.
To conclude my comments, I want to commend you for the extensive effort undertaken to compile this draft document. I am very concerned about the aging population in our community and the ability of those residents to continue to live in our village without experiencing housing insecurity. I am also concerned about the number of part-time/second/short-term rental homes and the rising cost of renting here without the addition of new restricted income housing opportunities.
As I stated at the joint City Council/Planning Commission meeting in June 2023, I moved to Carmel-by-the Sea as a newly-single mother of a 6th grader, and we had a big dog. I was fortunate to find a rental that was barely affordable to me and lived there until my son completed high school. However, the house was sold shortly after graduation, and I was forced to find replacement housing. I’ve been in that “housing insecurity” position and don’t wish it upon anyone, especially someone on a fixed income who is older with challenges. I encourage the City of Carmel-by-the-Sea to prioritize housing for its workforce and for its elder population.
Sincerely,
Stephanie Locke
A-38
Attachment 3
Email Comment #11
Received from Monterey Bay Economic Partnership
July 6, 2023
Carmel-By-The-Sea City Council and Staff
Monte Verde St.
Carmel-By-The-Sea, CA 93923
Subject: Support 6th Cycle Housing Element Draft
Dear Mayor Potter, City Councilmembers, and City Staff, Monterey Bay Economic Partnership (MBEP) supports draft recommendations for the 6th Cycle Housing Element made available to the public June 2023. The City of Carmel-By-The-Sea’s Draft Housing Element incorporates policies in alignment with recommendations from MBEP’s white paper Practical Housing Policy: Increasing Supply and Affordability, which include:
1. Streamline permitting and reduce discretionary reviews
2. Increase allowable densities
3. Reform impact fees
4. Increase funding sources for affordable housing
5. Optimize inclusionary housing ordinances
Specific comments on Draft Housing Element:
Program 1.1.B: Underutilized Sites - AFFH
MBEP supports the City’s planned use of publicly owned sites for housing development and recommends seeking innovative models for private developers – including for-profit organizations – to construct affordable housing. Availing of property tax exemptions through retained public ownership can increase financial viability for development of affordable housing under thoughtfully executed public-private partnerships.
Response: Comment noted. The draft 6th Cycle Housing Element 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 A-39
Attachment 3
forward to entering into new public-private partnerships to advance our housing goals.
Program 1.1.C: Development on Small Sites
The combination of reduced or waived parking requirements and setbacks along with density bonuses increases housing development viability and MBEP supports implementation of such incentives, especially in the high value and high cost downtown area. Integrating such incentives – including the 88 du/acre density potential – into the Affordable Housing Overlay Zoning District (Program 3.1G) will maximize development potential, especially for affordable homes.
Response: Comment noted. Carmel Municipal Code Section 17.14.060 (Central Commercial (CC) District Regulations Applicable) waives off-street parking entirely for apartments. 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. With regards to setbacks, there are no setback requirements in the CC or SC districts. The City will ensure these development incentives are incorporated into the housing overlay district. Additionally, the City is proposing a third-floor mezzanine as an additional incentive for affordable housing.
Program 1.3.E: Amend the A-2 Zoning District
MBEP applauds the City for planning the creation of clear and objective design guidelines for developers to use in advance of permit applications. Integrating these guidelines with the By Right approval processes guaranteed for projects including 20% affordable units in the Affordable Housing Overlay program will only further strengthen development potential for affordable homes.
Response: Comment noted.
Policy 1.4: Improve Development Review and Approvals Processes MBEP supports implementation of the programs entailed in this policy to their fullest extent. Removing the conditional use permitting (CUP) process for multifamily development (1.4A) is an excellent start for streamlining development and MBEP recommends maximizing impact of this policy by increasing the exemption from CUP for density up to 88 du/acre or higher, consistent with Program 1.1C.
Response: Comment noted. The City does not currently have an inclusionary housing ordinance and instead relies on the use permit process to ensure that housing projects between 34 and 88 dwelling units per acre contain affordable housing units. The City is open to exploring alternatives to the use permit process in order to obtain affordable housing.
Additionally, the City is proposing to remove the use permit requirement for other project components such as underground parking.
Program 1.4.B: Objective Design Standards - AFFH
MBEP supports the program for creating objective design guidelines for projects including affordable units, as mentioned in our support for Program 1.3E. Ensuring minimal discretionary review following objective design approval only further maximizes development potential for affordable units.
Response: Comment noted.
A-40
Attachment 3
Program 2.1.A: Incentives for Mixed-Use Development - AFFH MBEP agrees strongly with the assertion that granting floor area ratio (FAR) bonuses for affordable units only compounds affordability potential and project feasibility. We support offering the maximum FAR for affordable units within health and safety code requirements, which in some cases could exceed the 15-25% bonus offered in this program.
Response: Comment noted. The City is proposing to increase the floor area bonus from 15% to 25% to encourage the development of affordable housing.
Program 2.3.A: Preserve and Increase Second and Existing Third Floor Residential Uses - AFFH MBEP supports this policy and recommends expanding to allow for development of residential uses on the first floor of parcels otherwise in commercial use – such as behind the existing the commercial establishment – to maximize affordable development potential.
Response: Comment noted. Carmel Municipal Code (CMC) Chapter 17.14 (Commercial Zoning Districts) encourages residential uses in all three commercial zoning districts (CC, SC, & RC). CMC Section 17.14.040.N.5 prohibits new residential units on the first story of any building in the CC district IF the units would front directly on a public street. Ground floor commercial space that does NOT front on a public street can be converted to residential use. Additionally, ground floor commercial space in the SC and RC could also be converted to residential use. The City will include this information in educational materials that promote the creation of new housing through conversion of existing commercial space. Please note this program has been refocused on underutilized upper floors.
Policy 3.1.: Programs A-G:
MBEP strongly supports Programs A-G under Policy 3.1 with special emphasis on 3.1G which would create an Affordable Housing Overlay Zoning District. Offering as many incentives as possible and guaranteeing By Right approval for developments that meet objective design guidelines creates an optimal environment for much-needed affordable housing.
Response: Comment noted. The City is proposing a housing overlay district that combines development standards, Objective Design Standards, and incentives in a cohesive ordinance providing clear information to prospective housing developers.
In conclusion, MBEP supports the Draft 6th Cycle Housing Element set forth by the City of Carmel-By-The-Sea with some qualified recommendations. This first draft represents an affirmative and encouraging step toward progress on affordability. You can find more recommendations in our housing white paper at https://mbep.biz/initiatives/housing. Please contact Gabriel Sanders, Director of Housing and Community Development Policy, at [email protected] with any questions or concerns.
Sincerely,
Tahra Goraya, MA, MPA
President & CEO
A-41
Attachment 3
A-42
Attachment 3
Email Comment #12
Received from Esther Goodhue
What a huge accomplishment - I learned so much about Carmel. My only addition would be the possible use of ground floor commercial space for residences for people with special needs. These empty spaces don’t appear to be marketable any longer.
Response: Comment noted. Carmel Municipal Code (CMC) Chapter 17.14 (Commercial Zoning Districts) encourages residential uses in all three commercial zoning districts (CC, SC, & RC). CMC Section 17.14.040.N.5 prohibits new residential units on the first story of any building in the CC district IF the units would front directly on a public street. Ground floor commercial space that does NOT front on a public street can be converted to residential use. Additionally, ground floor commercial space in the SC and RC could also be converted to residential use. The City will include this information in educational materials that promote the creation of new housing through conversion of existing commercial space.
Thank you for the educational experience.
Best,
Esther
A-43
Attachment 3
6th Cycle 2023-2031 Housing Element Update
Draft Summary / Reader’s Guide
August 1, 2023
The City is progressing with its Housing Element update project, with a Draft 6th Cycle 2023- 2031 Housing Element presented to the City Council on August 1, 2023. Below you will find key project dates and a high-level overview of the Draft document, which responds to public comments received on the previously released Public Review Draft during the 30-day review period (June 5th to July 6th).
Key Project Dates (updated)
Aug 1st: City Council meeting to review revised Draft Housing Element Aug 2nd: Submit Draft Housing Element to the State Department of Housing and Community Development (HCD) for a 90-day review period
Sept 15th: 45-day check-in with HCD for a status update Oct 31st: 90-day review by HCD complete
Overview of the Draft 6th Cycle 2023-2031 Housing Element Chapter 1 - Introduction - Minor Revisions
● Added section on the Public Review Draft and Stakeholder Survey.
Chapter 2 - Goals, Policies, and Programs - Notable revisions below ● Added maps as Figures throughout the chapter.
● Clarified timeframes throughout the chapter.
● Added Program 1.3.D specific to Overnight Visitor Accommodation - Employee Housing Program (program language previously included within Program 1.3.C Accessory Dwelling Units).
● Added Program 1.3.H: Prepare Checklist and Procedures for SB35 (State requirement). ● Added Program 1.3.I: Implement State law SB-10 opportunities on three R-1 sites (Red Cross, American Legion, and First Church of Christ Scientist) per Council direction received on July 11, 2023.
● Substantially revised Program 1.4.A: Eliminate Unnecessary Use Permit Requirements. ● Removed Program 2.4.B: Residential Inspection Services. ● Substantially revised Program 3.1.G: Housing Priority Overlay District.
Chapter 3 - Housing Needs and Constraints (20 pages) has been eliminated as the information was duplicative of Appendix B.
Chapter 4 - Sites Inventory (6 pages) has been eliminated as the information was duplicative of Appendix C.
Chapter 5 - Energy and Resource Conservation (9 pages) has become Appendix G.
Appendix A - Housing Needs and Fair Housing Report - No substantive changes ● Expanded on the history of segregation.
Attachment 4
● Expanded the summary of population, employment, household, and housing stock characteristics.
● Added Table A-11 with data on special needs groups.
● Added discussion and Figure A-32 on persons with disabilities. ● Added discussion on male-headed single-parent households. ● Added discussion on existing assisted housing developments. ● Deleted and reorganized text regarding fair housing issues.
Appendix B - Housing Constraints
● Reorganized discussion on infrastructure constraints (water and sewer). ● Expanded discussion on use permits.
● Expanded discussion on overnight visitor accommodations. ● Included additional quotes from the community meetings. ● Expanded discussion on development fees imposed by other agencies. ● Added discussion of SB-10.
● Expanded the summary of governmental constraints and added Table B-9. ● Added Table B-9, summary of non-governmental constraints. ● Expanded the discussion on affordable housing financing.
Appendix C - Vacant and Available Sites
● Updated description of RHNA sites (Primary Underutilized Sites). ● Updated description of Accessory Dwelling Units (ADUs). ● Updated Table C-3, housing sites inventory.
● Added discussion of Affirmatively Furthering Fair Housing (AFFH).
Appendix D - Review of Previous Housing Element - No substantive changes ● Effectiveness of 5th Cycle (2015-2023) Housing Element; progress in implementation; and appropriateness of Goals, Objectives, and Policies.
Appendix E - List of Contacted Organizations - Updated
● Summary of outreach efforts to date.
Appendix F - ECONorthwest Feasibility Study - No Changes ● Feasibility Study prepared by consultant ECONorthwest and received by the City Council on February 7, 2023.
Appendix G - Energy and Resource Conservation (formerly Chapter 5) Appendix H - Stakeholder Survey - NEW
● 157 survey responses to the online stakeholder survey.
Attachment 4
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Attachment 5
Housing Element Update 2023-2031
Public Review Draft Summary / Reader’s Guide
June 9, 2023
The City is progressing with its 2023-2031 Housing Element update project, with a public review draft released on June 5, 2023. Below you will find key project dates and a high-level overview of the 5 chapters plus appendices A-F that comprise the 2023-2031 Draft Housing Element.
Key Project Dates (updated)
June 5th: Public Review Draft published on H.O.M.E. website (“Housing Opportunities Made Easier”)
June 6th: Draft release advertised via City’s Constant Contact Listserv and on the City website homepage
June 15th: Joint City Council/Planning Commission Workshop (Sunset Center, Carpenter Hall @ 5:30 pm and via Zoom) to discuss the Public Review Draft July 6th: Public comment period closes
July 11th: City Council meeting to review public comments Aug 1st: City Council meeting to review revised draft Housing Element (NEW) Aug 2nd: Submit draft Housing Element to the State Department of Housing and Community Development (HCD) for a 90-day review period (updated) Oct 31st: Receive comments from HCD (updated)
Overview of Draft 2023-2031 Housing Element (6th cycle) Chapter 1 - Introduction (15 pages)
● 5th Cycle: 18 above moderate (market-rate) housing units were constructed during the eight-year 2015-2023 5th cycle Regional Housing Needs Allocation (RHNA), which equals 58% of the 5th cycle RHNA goal of 31 units.
● 6th Cycle: The 6th cycle RHNA goal is 349 units constructed over the eight-year period from July 2023 to June 2031.
Chapter 2 - Goals, Policies, and Programs (25 pages)
● State law requires that each program have a “quantified objective.” This is a goal for the City to work towards and a metric to report annually to HCD on progress. ● At this time, there are no penalties for not reaching the objective. Programs that are unsuccessful in reaching the objective will be re-evaluated in the 7th cycle. ● Each program description is followed by a note specifying if the program is new or carried over from the 5th cycle.
● Some of the proposed programs would require a Zoning Code Amendment if adopted.
The proposed amendments are summarized below.
○ Revise existing parking standards for new housing units; ○ Establish a 33 dwelling unit per acre (du/ac) minimum density for new housing projects (Note: This results in 3 units on a 4,000-square-foot lot); ○ Adopt a housing overlay zoning district with objective design and development standards for qualifying projects;
Attachment 5 Attachment 1
○ Adopt an Accessory Dwelling Unit (ADU) ordinance (in progress); ○ Incentivize onsite hotel employee housing;
○ Establish design and development standards for the A-2 zoning district (Sunset Center) for senior housing, which is already a permitted use; ○ Allow manufactured homes in the R-1 district (required per State law); ○ Eliminate the Use Permit requirement for multi-family development; ○ Increase the floor area bonus from 15% to 25% for projects that include affordable housing; and
○ Allow a low-barrier navigation center (required per state law). ● Establish an Affordable Housing Trust Fund (funding and use to be determined by City Council): goal to raise $1 million in 8 years
Chapter 3 - Housing Needs and Constraints (20 pages)
● Summary of Carmel-by-the-Sea demographic data (population, employment, housing, etc.); note that Pacific Grove and Del Rey Oaks were used as a comparison to Carmel. ● Overview of governmental constraints affecting housing production. For details, see Appendix B.
Chapter 4 - Sites Inventory (6 pages)
● High-level Sites Inventory summary. For details, see Appendix C.
Chapter 5 - Energy and Resource Conservation (9 pages)
● Incorporates information from the City’s Climate Action & Adaptation Plans. ● PG&E Programs and Incentives for energy efficiency.
● MPWMD rebates for water conservation.
● Federal and State financial assistance programs.
Appendix A - Housing Needs and Fair Housing Report (89 pages) ● Introduction with an explanation of “Affirmatively Furthering Fair Housing” or “AFFH” requirements per Gov. Code, § 8899.50, subd. (a)(1).
● Population, employment, and household characteristics. ● Disproportionate housing needs.
● Special needs groups.
● Access to opportunity.
● Housing stock characteristics.
● Fair housing enforcement and outreach capacity.
● Fair housing recommendations.
Appendix B - Housing Constraints (47 pages)
● Overview of Governmental and Non-Governmental constraints to housing development, including but not limited to:
○ Lengthy design review process;
○ Fees are financially prohibitive to lower-income households; ○ Two-story building height limit;
Attachment 5 Attachment 1
○ Use Permit requirements for new residential projects; ○ Subjective design standards which create uncertainty for developers; ○ Protection of historic resources;
○ Coastal Zone regulations;
○ Outdated Accessory Dwelling Unit (ADU) ordinance;
○ Lack of development standards in the A-2 district (Sunset Center); and ○ Lack of water due to State Water Resources Control Board Order 95-10 and the 2008 Cease-and-Desist Order.
AppendixC-Vacant and Available Sites (38 pages)
● 35 identified sites that could accommodate 283 housing units. ○ Sites zoned R-1 that would require a rezone if retained in the sites inventory list:
■ Pine Inn parking lot (6 units)
■ First Church of Christ (9 units)
■ Red Cross (6 units)
■ American Legion (5 units)
■ Carmel Presbyterian (36 units)
○ Options for rezoning could include A-2 (senior housing) or R-4 (multi-family). ○ An alternative to rezoning (open for discussion): eliminate one or more of these sites and replace them with other properties that do not require rezoning. ● 46 units attributed to potential onsite hotel employee housing units ● 72 units attributed to potential accessory dwelling units ● Grand Total: 401 units (52 surplus units over our 349 RHNA goal = 15% buffer) Note: A buffer is necessary due to the likelihood HCD will reject some of our proposed sites.
Appendix D - Review of Previous Housing Element (9 pages) ● Effectiveness of 5th cycle (2015-2023) Housing Element; progress in implementation; and appropriateness of Goals, Objectives, and Polices.
Appendix E - List of Contacted Organizations (11 pages) ● Summary of outreach efforts to date.
Appendix F - ECONorthwest Feasibility Study (37 pages)
● Feasibility Study prepared by consultant ECONorthwest and received by the City Council on February 7, 2023.
Attachment 5 Attachment 1
Initial Public Review Draft
6th Cycle Housing Element Update
(2023-2031)
CITY OF CARMEL-BY-THE-SEA
June 5, 2023
Prepared by
EMC Planning Group
Attachment 5 Attachment 2
Attachment 5 Attachment 2
This document was produced on recycled paper.
INITIAL PUBLIC REVIEW DRAFT
6TH CYCLE HOUSING ELEMENT UPDATE
(2023-2031)
CITY OF CARMEL-BY-THE-SEA
PREPARED FOR
City of Carmel-by-the-Sea
Marnie Waffle, AICP, Principal Planner
City of Carmel-by-the-Sea
P.O. Box CC
Carmel-by-the-Sea, CA 93921
Tel 831.620.2000
PREPARED BY
EMC Planning Group Inc.
601 Abrego Street
Monterey, CA 93940
Tel 831.649.1799
Fax 831.649.8399
Ande Flower, MUP, AICP, Principal Planner
[email protected]
www.emcplanning.com
June 5, 2023
Attachment 5 Attachment 2
Attachment 5 Attachment 2
EMC Planning Group Inc.
Table of Contents
1.1 INTRODUCTION.................................................................................................... 1-1
1.2 California’s Housing Crisis .............................................................................................. 1-2
1.3 Regional Housing Needs Allocation .............................................................................. 1-3
1.4 Affirmatively Furthering Fair Housing.......................................................................... 1-4
1.5 Overview of Planning Efforts ........................................................................................ 1-7
1.6 Public Participation ........................................................................................................ 1-10
2.0 GOALS, POLICIES, AND PROGRAMS ................................................................... 2-1
2.1 Introduction ...................................................................................................................... 2-1
2.2 What’s New ....................................................................................................................... 2-1
2.3 Program Overview and Quantified Objectives ............................................................ 2-2
2.4 Goals, Policies and Programs ......................................................................................... 2-3
3.0 OVERVIEW OF HOUSING NEEDS AND CONSTRAINTS ..................................... 3-1
3.1 Introduction ...................................................................................................................... 3-1
3.2 Overview of Housing Needs .......................................................................................... 3-1
3.3 Governmental and Non-Governmental Constraints ................................................ 3-16
4.0 +286,1*6,7(6,19(1725<........................................................................ 4-1
4.1 Introduction ...................................................................................................................... 4-1
4.2 Regional Housing Needs Allocation .............................................................................. 4-1
4.3 Site Inventory .................................................................................................................... 4-2
4.4 Summary and Conclusions .............................................................................................. 4-3
5.0 ENERGY CONSERVATION AND REDUCTION OF GREENHOUSE GAS EMISSIONS ............................................................................................................ 5-1
5.1 Introduction ...................................................................................................................... 5-1
5.2 Opportunities for Energy Conservation and Reducing Greenhouse Gas Emissions ........................................................................................................................... 5-1 Attachment 5 Attachment 2
EMC Planning Group Inc.
Appendices
Appendix A Housing Needs & Fair Housing Report
Appendix B Housing Constraints
Appendix C Housing Sites Inventory Analysis
Appendix D Review of Previous Housing Element
Appendix E List of Contacted Organizations
Appendix F ECONorthwest Feasibility Study
Tables
Table 1-1 Regional Housing Needs Allocation ........................................................................... 1-3 Table 2-1 Quantified Objectives Summary ................................................................................. 2-2 Table 3-1 Population Growth Forecast by Jurisdiction, 2015-2045 ........................................ 3-1 Table 3-2 Population Age Distribution by Jurisdiction, 2019 .................................................. 3-2 Table 3-3 Population by Race by Jurisdiction, 2019 .................................................................. 3-3 Table 3-4 Employment Growth Forecast by Jurisdiction, 2015-2045 .................................... 3-4 Table 3-5 Unemployment Rate, Carmel-by-the-Sea, 2019 ........................................................ 3-5 Table 3-6 Housing Forecast by Jurisdiction, 2015-2045............................................................ 3-5 Table 3-7 Households by Income Category, Carmel-by-the-Sea, 2019................................... 3-6 Table 3-8 Housing Units by Type and Tenure, Carmel-by-the-Sea, 2019 .............................. 3-7 Table 3-9 Housing Permits by Income Group, Carmel-by-the-Sea, 2015-2021 .................. 3-13 Table 3-10 Vacant Housing Units by Type, Carmel-by-the-Sea, 2019 .................................... 3-14 Table 3-11 Housing Affordability, Carmel-by-the-Sea, 2022 .................................................... 3-15 Table 4-1 Carmel-by-the-Sea-by-the-Sea’s Regional Housing Needs Allocation 2023–2031 ....................................................................................................................... 4-2 Table 4-2 Overview of Housing Sites Inventory Sites ............................................................... 4-3 Table 5-1 PG&E Programs and Incentives for Residential Properties ................................... 5-3 Attachment 5 Attachment 2
Chapter 1.0 – Introduction 1-1 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023
1.0 Introduction
1.1 Introduction
Carmel-by-the-Sea is a community with a high quality of life, a healthy environment, and renowned architecture. The long-term vitality of Carmel-by-the-Sea and the local economy depend upon the availability of various types of housing to satisfy the community’s local housing needs while continuing to be a vacation destination for all. As Carmel-by-the-Sea looks towards the future, increasing the range and diversity of housing options is integral to the City’s success. This Housing Element serves as a continuation of the City’s commitment to ensuring new opportunities for residential development, as well as preserving and enhancing existing neighborhoods.
Located on the Monterey Peninsula, Carmel-by-the-Sea is a bijou coastal community boasting sweeping views of the Pacific Ocean, acclaimed architecture, and a strong residential character. The City was incorporated in 1916, lending to its 1920-1930s architectural charm that is weaved throughout the City’s centralized business district and commercial district. The City has nearly 50 properties within the commercial district that are regarded as historical resources. As a result of its beauty, the City is a popular tourism and second-home destination. Approximately 51 percent of housing units are for seasonal, recreational, or occasional use, creating high barriers of entry to the housing market for locals.
This 2023-2031 Housing Element represents the City of Carmel-by-the-Sea’s intent to plan for the housing needs of the community while meeting the State's housing goals as set forth in Article 10.6 of the California Government Code. The California State Legislature has identified the attainment of a decent home and a suitable living environment for every Californian as the State's major housing goal. The Carmel-by-the-Sea 6th Cycle Housing Element represents a sincere and creative effort to meet State housing mandates within the constraints of a fully established built-out community, limited land availability, coastal hazards, and extraordinarily high costs of land and housing.
Pursuant to State law, the Housing Element must be updated periodically according to statutory deadlines. This 6th Cycle Housing Element covers the planning period 2023 through 2031 and replaces the City's 5th Cycle Housing Element that covered the period 2015 through 2023.
Per State Housing Element law, the document must be periodically updated to:
Outline the community’s housing production objectives consistent with State and regional growth projections;
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Chapter 1.0 – Introduction 1-2 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Describe goals, policies and implementation strategies to achieve local housing objectives; Examine the local need for housing with a focus on special needs populations; Identify adequate sites for the production of housing serving various income levels; Analyze potential constraints to new housing production; Evaluate the Housing Element for consistency with other General Plan elements; and Evaluate Affirmatively Furthering Fair Housing.
1.2 California’s Housing Crisis
The 6th Cycle Housing Element update comes at a critical time because California is experiencing a housing crisis, and as is the case for all jurisdictions in California, Carmel-by-the-Sea is committed to playing its part in meeting the growing demand for housing. In the period 2020 through 2045, the AMBAG region is projected to add 36,544 jobs,1
which represents a nine (9) percent increase. These
changes will increase demand for housing across all income levels, and if the region can’t identify ways to significantly increase housing production, it risks worsening the burden for existing lowerincome households, many of whom do not have the luxury or skill set to move to new a job center but that are nonetheless faced with unsustainable increases in housing cost.
If the region become less competitive in attracting workers and increasingly unaffordable to lower-income workers and seniors, then social and economic segregation will worsen, only
exacerbating historic patterns of housing discrimination, racial bias, and segregation. This potentiality has become so acute in recent years that the California Legislature addressed the issue with new legislation in 2018. SB 686 requires all state and local agencies to explicitly address, combat, and relieve disparities resulting from past patterns of housing segregation to foster more inclusive communities. This is commonly referred to as Affirmative Furthering Fair Housing, or AFFH (more on this below).
Carmel-by-the-Sea has had moderate success in meeting its housing needs. In the last housing element cycle (2015 to 2022 – 2023 pending), for example, the City built 18 housing units, which represented 58 percent of its Regional Housing Needs Allocation (RHNA) of 31 new housing units.
Of the units built, none were affordable to lower- and moderate-income households,2 and 100
percent were affordable to above moderate-income households. 1 Source: AMBAG, November 18, 2022. “Final 2022 Regional Growth Forecast” 2 Source: City of Carmel-by-the-Sea HCD Annual Reports and City staff. “There's a movement in
California now called 'Yes, In
My Backyard,' and I'd love to
see us join that.”
May 24, 2023 Ad Hoc Committee
Community Meeting Attendee
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Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023
1.3 Regional Housing Needs Allocation
For the eight-year time frame covered by this Housing Element Update, the Department of Housing and Community Development (HCD) has identified the region’s housing need as 33,274 units. The total number of housing units assigned by HCD is separated into four income categories that cover housing types for all income levels, from very low-income households to market rate housing.3 This
calculation is based on population projections produced by the California Department of Finance as well as adjustments that incorporate the region’s existing housing need. Per Government Code Section 65583(a), the Housing Element must also provide quantification and analysis of projected housing needs for extremely low-income households. The number of units for the extremely lowincome level is not assigned by HCD, but is left for quantification by the local jurisdiction. This calculation is based on the HCD approved methodology4
, assuming that 50 percent of very lowincome households qualify as extremely low-income households.
Almost all jurisdictions in the Monterey Bay Area received a larger RHNA this cycle compared to the last cycle, primarily due to changes in state law that led to a considerably higher Regional Housing Needs Determination (RHND) compared to previous cycles.
On November 8, 2022, AMBAG’s adopted RHNA Methodology, was approved by HCD. For Carmel-by-the-Sea, the RHNA to be planned for this cycle is 349 units, a substantial increase from the last cycle. Table 1-1 Regional Housing Needs Allocation shows the RHNA for Carmel-by-theSea for the period 2023 through 2031.
Table 1-1 Regional Housing Needs Allocation
Income Group Percentage of AMI Share
Extremely Low Income5 <30 57
Very Low Income <50 56
Low Income 51-80 74
Moderate Income 81-120 44
Above Moderate Income 121 + 118
Total 349
SOURCE: AMBAG
3 HCD divides the RHND into the following four income categories:
Very Low income: 0-50% of Area Median Income
Low income: 50-80% of Area Median Income
Moderate income: 80-120% of Area Median Income
Above Moderate income: 120% or more of Area Median Income 4 https://www.hcd.ca.gov/planning-and-community-development/housing-elements/building-blocks/extremely-lowincome-housing-needs 5 Extremely low-income RHNA is found as a subset within the very low-income category for all other tables in this document
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1.4 Affirmatively Furthering Fair Housing
In 2018, Assembly Bill 686 (AB 686), signed in 2018, established an independent state mandate to affirmatively furthering fair housing (AFFH). AB 686 extends requirements for federal grantees and contractors to “affirmatively further fair housing,” including requirements in the federal Fair Housing Act, to public agencies in California. Affirmatively furthering fair housing is defined specifically as taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity by replacing segregated living patterns with truly integrated and balanced living patterns; transforming racially and ethnically concentrated areas of poverty into areas of opportunity; and fostering and maintaining compliance with civil rights and fair housing laws.
AB 686 requires public agencies to:
Administer their programs and activities relating to housing and community development in a manner to affirmatively further fair housing;
Not take any action that is materially inconsistent with the obligation to affirmatively further fair housing;
Ensure that the program and actions to achieve the goals and objectives of the Housing Element affirmatively further fair housing; and
Include an assessment of fair housing in the Housing Element.
The requirement to Affirmatively Further Fair Housing (AFFH) is derived from The Fair Housing Act of 1968, which prohibited discrimination concerning the sale, rental, and financing of housing based on race, color, religion, national origin, or sex—and was later amended to include familial status and disability. The 2015 U.S. Department of Housing and Urban Development (HUD) Rule to Affirmatively Further Fair Housing and California Assembly Bill 686 (2018) mandate that each jurisdiction takes meaningful action to address significant disparities in housing needs and access to opportunity. AB 686 requires that jurisdictions incorporate AFFH into their Housing Elements, which includes inclusive community participation, an assessment of fair housing, a site inventory reflective of AFFH, and the development of goals, policies, and programs to meaningfully address local fair housing issues.
An AFFH analysis was prepared and is included as an appendix to this housing element (see Appendix A).
Defining Segregation
Segregation is the separation of different demographic groups into different geographic locations or communities, meaning that groups are unevenly distributed across geographic space. This report examines two spatial forms of segregation: neighborhood level segregation within a local jurisdiction and city level segregation between jurisdictions in the Bay Area.
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Chapter 1.0 – Introduction 1-5 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Neighborhood level segregation (within a jurisdiction, or intra-city): Segregation of race and income groups can occur from neighborhood to neighborhood within a city. For example, if a local jurisdiction has a population that is 20 percent Latinx, but some neighborhoods are 80 percent Latinx while others have nearly no Latinx residents, that jurisdiction would have segregated neighborhoods.
City level segregation (between jurisdictions in a region, or inter-city): Race and income divides also occur between jurisdictions in a region. A region could be very diverse with equal numbers of white, Asian, Black, and Latinx residents, but the region could also be highly segregated with each city comprised solely of one racial group.
There are many factors that have contributed to the generation and maintenance of segregation.
Historically, racial segregation stemmed from explicit discrimination against people of color, such as restrictive covenants, redlining, and discrimination in mortgage lending. This history includes many overtly discriminatory policies made by federal, state, and local governments (Rothstein 2017).
Segregation patterns are also affected by policies that appear race-neutral, such as land use decisions and the regulation of housing development.
Segregation has resulted in vastly unequal access to public goods such as quality schools, neighborhood services and amenities, parks and playgrounds, clean air and water, and public safety (Trounstine 2015). This generational lack of access for many communities, particularly people of color and lower income residents, has often resulted in poor life outcomes, including lower educational attainment, higher morbidity rates, and higher mortality rates (Chetty and Hendren 2018, Ananat 2011, Burch 2014, Cutler and Glaeser 1997, Sampson 2012, Sharkey 2013).
Segregation Patterns in the Monterey Bay Area
Across the Monterey Bay Area, Hispanic and Black residents are significantly more segregated from other racial and income groups. The highest levels of racial segregation occur between the Hispanic and Black populations. The analysis completed for this report indicates that the amount of racial segregation both within Monterey Bay Area cities and across jurisdictions in the region has slightly increased since the year 2010.
Segregation and Land Use
It is difficult to address segregation patterns without an analysis of both historical and existing land use policies that impact segregation patterns. Land use regulations influence what kind of housing is built in a city or neighborhood (Lens and Monkkonen 2016, Pendall 2000). These land use regulations in turn impact demographics: they can be used to affect the number of houses in a community, the number of people who live in the community, the wealth of the people who live in the community, and where within the community they reside (Trounstine 2018). Given disparities in Attachment 5 Attachment 2
Chapter 1.0 – Introduction 1-6 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 wealth by race and ethnicity, the ability to afford housing in different neighborhoods, as influenced by land use regulations, is highly differentiated across racial and ethnic groups (Bayer, McMillan, and Reuben 2004).6
Segregation in the Carmel-by-the-Sea
The following are highlights of demographics as they apply to Carmel-by-the-Sea. For further information regarding the history of racial segregation, please refer to Appendix A. As of 2019, white residents are the most segregated compared to other racial groups as measured by the isolation index. White residents live in neighborhoods where they are less likely to come into contact with other racial groups;
As of 2019, Non-Hispanic White individuals comprise 87 percent of Carmel-by-the-Sea’s population followed by Hispanic or Latino (8 percent) and Asian populations (5 percent); The City has no populations identifying as American Indian, Alaska Native, Native Hawaiian or Other Pacific Islander; and
Black or African American non-Hispanic individuals represent less than 1 percent of the City’s population.
Carmel-by-the-Sea’s General Plan and Municipal Code
historically emphasized single-family residential
development patterns and consequently, the City offers a limited variety of housing types with 87 percent single family detached units. Historically, this type of
development contributed to segregation patterns,
including in Carmel-by-the-Sea, due to, among other
factors, the higher purchase costs that accompany singlefamily homes. Financing for single-family properties favored educated higher income earners and as a result
purchasing property in the City remained out of reach for many lower income households and lead to the
demographics seen in the City today. Though Carmel-bythe-Sea’s population demographics are not as diverse as other jurisdictions within Monterey County and restrictive covenants were not enacted specifically in the City,
enacting policies and programs that promote AFFH and highlight the community’s assets could attract individuals to the area, and encourage those that work in the City to live there as well. 6For the source data, see U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B19013B, Table B19013D, B19013H, and B19013I.
"I urge you to enthusiastically
embrace this opportunity to
do exactly what you've come
up with because Carmel really
needs it, and it didn't happen
that Carmel turned out to be
a wealthy white exclusive
community by accident. It was
purposeful. “
May 24, 2023 Ad Hoc
Committee Community
Meeting Attendee
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Chapter 1.0 – Introduction 1-7 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Regional Segregation
The following are highlights of regional segregation metrics as they apply to Carmel-by-the-Sea. The City has a higher share of white residents than other jurisdictions in the Monterey Bay Area as a whole, a lower share of Latinx residents, a lower share of Black residents, and a lower share of Asian/Pacific Islander residents; and
Regarding income groups, the City has a lower share of very low-income residents than other jurisdictions in the Monterey Bay Area as a whole, a lower share of low-income residents, a lower share of moderate-income residents, and a higher share of above moderate-income residents.
1.5 Overview of Planning Efforts
This section provides an overview of planning and legislative efforts that provide the context for development of the 6th Cycle Housing Element.
Effectiveness of Previous Housing Element
The 2015 Housing Element identified a Regional Housing Needs Allocation of 31 housing units in Carmel-by-the-Sea between 2015 and 2023. The RHNA was divided into the following income categories:
11 units affordable to extremely low- and very low-income households; 5 units affordable to low-income households;
6 units affordable to moderate-income households; and 13 units affordable to above moderate-income households.
During the 2015–2023 planning period, 18 new units were added to the City’s housing stock, none were low or very low income7
. This indicates that residential growth for extremely and very lowincome households was slower than anticipated, which may be in part due to the COVID pandemic, the cost of land and construction, and the overall lack of interest to develop affordable housing in the community. As a result, housing costs continued to increase substantially due to low supply, and affordability became more elusive.
The goals, objectives, policies, and actions in the 2015 Housing Element complied with State Housing Law and provided proper guidance for housing development in the City. In the 2023 Housing Element update, objectives for each of the goals will be modified as appropriate to more specifically respond to the housing environment in Carmel-by-the-Sea from 2023-2031. Policies will 7 RHNA Progress Report - 5th Cycle RHNA Progress Report - California Open Data Attachment 5 Attachment 2
Chapter 1.0 – Introduction 1-8 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 also be modified as needed to respond to current Housing Element Law and existing and anticipated residential development conditions. See Appendix E for a complete review and analysis of Carmelby-the-Sea’s 5th Cycle Housing Element (2015-2023).
New State Laws Affecting Housing
While the City has taken steps throughout the 5th cycle to increase housing production locally, the State passed numerous laws to address California’s housing crisis during the same period. As the State passes new legislation in the remainder of the 5th cycle and during the 6th cycle, the City will continue to amend the Municipal Code; to monitor and evaluate policies and programs designed to meet State requirements; and to proactively implement new policies and programs to help increase housing production citywide.
In 2019, several bills were signed into law that include requirements for local density bonus programs, the Housing Element, surplus lands, accessory dwelling unit (ADU) streamlining, and removing local barriers to housing production. The City implemented changes required by State law, likely through amendments to the Municipal Code. The following is a summary of recent legislation and proposed City activities that will further the City’s efforts to increase housing production during the 6th cycle. Please see the section above for a discussion of AB 686 (Affirmatively Furthering Fair Housing).
Climate Change and RHNA Methodology
Per statute, AB 1445 amends California Government Code Section 65584.04 and would require Councils of Governments to consider including the impacts of climate change as a factor when developing the methodology for allocating regional housing need. Regions would specifically need to consider emergency evacuation route capacity, wildfire risk, and sea level rise, but could also consider any other climate change-related factor. Although this does not apply to the current RHNA, it could affect the 7th cycle allocation.
Incentives for Accessory Dwelling Units
In 2020, AB 686, AB 587, AB 671, AB 881, and SB 13 further incentivize the development of accessory dwelling units (ADUs), through streamlined permits, reduced setback requirements, increased allowable square footage, reduced parking requirements, and reduced fees. The City last amended the Municipal Code in 2017 to address ADUs and currently follows State law.
The City also continues to monitor the existence of unauthorized second units. The City's zoning ordinance facilitates the legalization of unauthorized second units through the zoning clearance/building permit process. In 2023, the City intends to further amend the standards for ADUs and JADUs, consistent with State Law, to facilitate legalization of unauthorized living units and promote construction of new units.
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Chapter 1.0 – Introduction 1-9 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Low-Barrier Navigation Centers
AB 101 (2019) requires jurisdictions to allow “low-barrier navigation centers” by-right in areas zoned for mixed uses and in nonresidential zones permitting multifamily uses, if the center meets specified requirements. A low-barrier navigation center is a service-enriched shelter focused on moving unhoused people into permanent housing. The center provides temporary living facilities while case-managers connect individuals to public benefits, health services, and housing. The City’s Municipal Code will be amended to comply with State law.
Surplus Public Land
AB 1255 and AB 1486 (2020) seek to identify and prioritize state and local surplus lands available for housing development affordable to lower-income households. City-owned land was considered through preparation of the adequate sites inventory of the 6th Cycle Housing Element. These sites may be developed over time or possibly leased for development.
In 2019, Governor Gavin Newsom signed an executive order to identify State owned sites to help address the California housing crisis.
Accelerated Housing Production
AB 2162 (2018) and SB 2 (2019) address various methods and funding sources that jurisdictions may use to accelerate housing production.
Priority Processing
SB 330 (2019) enacts changes to local development policies, permitting, and processes that will be in effect through January 1, 2025. SB 330 places new criteria on the application requirements and processing times for housing developments; prevents localities from decreasing the housing capacity of any site, such as through downzoning or increasing open space requirements, if such a decrease would preclude the jurisdiction from meeting its RHNA housing targets; prevents localities from establishing non-objective standards; and requires that any proposed demolition of housing units be accompanied by a project that would replace or exceed the total number of units demolished.
Additionally, any demolished units that were occupied by lower-income households must be replaced with new units affordable to households with those same income levels.
Housing and Public Safety
In response to SB 379 (2015) and other recent state legislation, local jurisdictions must update their safety element to comprehensively address climate adaptation and resilience (SB 379 and SB 1035, 2018) and identify evacuation routes (SB 99 and AB 747, both 2019). These updates are triggered by the 6th Cycle housing element update. This housing element will contain an evaluation of the existing safety element and programming actions to update the safety element to satisfy the new state requirements. Also, as sites are identified and analyzed for inclusion in the City’s housing site inventory, special attention will be paid to the risk of wildfire and the need for evacuation routes. In Attachment 5 Attachment 2
Chapter 1.0 – Introduction 1-10 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 this way, the City will coordinate updates between the elements, so that future development is directed into areas that avoid or reduce unreasonable risks while also providing needed housing and maintaining other community planning goals.
Disadvantaged Communities
In 2011, the Governor signed SB 244 which requires local governments to make determinations regarding “disadvantaged unincorporated communities,” defined as a community with an annual median income that is less than 80 percent of the statewide annual median household income. The City has determined that there are no unincorporated islands or fringe or legacy communities that qualify as disadvantaged communities inside or near its boundaries.
Consistency with General Plan
The City of Carmel-by-the-Sea last adopted it general plan in 1988. The general plan is a long-range planning document that serves as the “blueprint” for development for local jurisdictions in California. All development-related decisions in the City must be consistent with the General Plan, and if a development proposal is not consistent with the plan, then it must be revised or the plan itself must be amended.
State law requires a community’s general plan to be internally consistent. This means that the housing element, although subject to special requirements and a different schedule of updates, must function as an integral part of the overall general plan, with consistency between it and the other general plan elements. From an overall standpoint, the development projected under this housing element is consistent with the other elements in the City’s current general plan.
Many housing needs can only be addressed on a comprehensive basis in concert with other community concerns such as infill development or mixed-use incentives, for example, which must consider land use, traffic, parking, design and other concerns as well.
The City’s housing element is being updated at this time in conformance with the 2023-2031 update cycle for jurisdictions in the Association of Monterey Bay Area Governments (AMBAG) region.
The housing element builds upon the other general plan elements and contains policies to ensure that it is consistent with other elements of the general plan. As portions of the general plan are amended in the future, the plan (including the housing element) will be reviewed to ensure that internal consistency is maintained.
1.6 Public Participation
The primary purpose of this chapter is to describe the effort made by the City of Carmel-by-the Sea to engage all economic segments of the community (including residents and/or their representatives) in the development and update of the housing element. This public participation effort also includes formal consultation, pursuant to Government Code §65352.3, with Attachment 5 Attachment 2
Chapter 1.0 – Introduction 1-11 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 representatives from the Tribal Nations that are present and active in Monterey County. It is also responsive to AB 686 (Affirmatively Furthering Fair Housing), which requires local jurisdictions, as they update their housing elements, to conduct public outreach to equitably include all stakeholders in the housing element public participation program.
The 6th cycle RHNA numbers are a monumental change for all California communities, and the success of the update process hinged in part on a community outreach and engagement program that was robust, inclusive, and meaningful. The City’s community engagement program has included an initial presentation to City Council, a series of Housing Ad Hoc Committee community meetings, stakeholder outreach, direct contact with interested residents and property owners, and online/virtual participation. Key components of the interactive engagement plan include:
Website. Housing Opportunities Made Easier (HOME) at HOMECarmel (homecarmelbythesea.com) is a dedicated website that provides portal to all of the housingelement-related public engagement activities that are available to members of the public. This includes information on housing element basics, community ideas board, property owner interest forms, site surveys, site selection details, and materials from community workshops; Q&A. Received questions in a managed space that accommodated messages through the iterative brainstorming process; and
Surveys. Encouraged community-members to voice their opinions in a convenient way that also helped City staff understand what areas of the city need more encouragement to participate.
Aggregate data also helped the city understand generally who is participating with the outreach tools.
x Stakeholder Survey. Released for public engagement on May 24, 2023 to solicit input from Carmel-by-the-Sea residents, property owners, business owners, employees, community activists, and visitors. The survey is currently ongoing. The housing element will contain updated policies and programs as guided by the public’s perspective. x Property Owner Interest Form. Released for public engagement on April 6, 2023 to develop a list of property owners interested in building an accessory dwelling unit (ADU) or junior accessory dwelling unit (JADU). The survey is currently ongoing. A list of interested property owners will be added to Appendix C – Sites Inventory when the survey is closed. Community Meetings. Hosted to inform and educate the public on the 2023-2031 6th Cycle Housing Element Update planning process. These meetings are ongoing and continue to guide the policies and programs to ensure Carmel-by-the-Sea’s character and values are upheld. x November 17, 2022 Housing Ad Hoc Committee Community Meeting. Hosted to introduce the 2023-2031 6th Cycle Housing Element Update to community residents.
Attachment 5 Attachment 2
Chapter 1.0 – Introduction 1-12 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 x February 28, 2023 Housing Ad Hoc Committee Community Meeting. Hosted to discuss development constraints and potential incentives. x April 6, 2023 Housing Ad Hoc Committee Community Meeting. Hosted to discuss current 5th Cycle Housing Element policies and programs, HOMECarmel unveiling and walk through, and introduction to AFFH.
x May 24, 2023 Housing Ad Hoc Committee Community Meeting. Hosted to discuss housing needs, fair housing, sites inventory, and policies and programs to address the needs.
Public Participation to Affirmatively Furthering Fair Housing The Carmel-by-the-Sea public participation program was also responsive to AFFH, which requires local jurisdictions to conduct public outreach to equitably include all stakeholders in the housing element public participation program (see the discussion above for more complete information on AFFH).
The organizations listed in Appendix E were contacted initially with an invitation to further connect.
There were more opportunities for deeper connection with some of the Community Based Organizations (CBOs) included with the list.
The City emphasized the power of public participation during the public draft 30-day review period.
City messaging expressed the power of public comment during this 30-day period to have the community’s voice included with the public record that will be read by decision-makers and the HCD reviewer, with transparent obligation to be responsive to comments as part of the preliminary draft submittal to HCD.
Tribal Consultation
This public participation effort also includes formal consultation, pursuant to Government Code §65352.3, with representatives from the Esselen Nation that is present and active in Monterey County. Consultation is in process.
Public Review of Draft and Final Housing Element
(To be completed following the Public Review Draft comment period).
Attachment 5 Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-1 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023
2.0 Goals, Policies, and Programs
2.1 Introduction
The City is responsible for enabling the production of housing by reducing regulatory barriers, providing incentives, and supporting programs that create or preserve housing, especially for vulnerable populations. To enable the construction of quality housing, the City has identified the following goals:
Goal HE-1 Facilitate Housing Construction
Goal HE-2 Protect Affordable Housing and Improve the Housing Stock Goal HE-3 Provide Opportunities for New Affordable and Other Special Needs Housing Goal HE-4 Exemplify Sustainable Development and Energy Conservation Goal HE-5 Publicize Housing Needs and Resources
2.2 What’s New
This section provides an overview of significant new policy and program directions being taken by the City of Carmel-by-the-Sea to address housing issues in the community and the larger Monterey Bay Area.
Affirmatively Furthering Fair Housing
The new policy direction that the City will undergo during the 6th Cycle Housing Element Update involves addressing historic economic and racial segregation patterns. In 2018, the California Legislature established an independent state mandate to affirmatively furthering fair housing (AFFH). Affirmatively furthering fair housing is defined specifically as taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity by replacing segregated living patterns with truly integrated and balanced living patterns; transforming racially and ethnically concentrated areas of poverty into areas of opportunity; and fostering and maintaining compliance with civil rights and fair housing laws.
Attachment 5 Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-2 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 The City of Carmel-by-the-Sea is adopting new policies and programs through the update of this 6th Cycle Housing Element, to align with the state’s new AFFH mandate. Policies and programs that support this alignment are identified with the letters “AFFH.”
2.3 Program Overview and Quantified Objectives
Quantified Objectives estimate the number of units likely to be constructed, rehabilitated, or conserved/preserved by income level during the planning period. The Quantified Objectives do not represent a ceiling on development, but rather set a target goal for the jurisdiction to achieve, based on needs, resources, and constraints. These objectives will focus communication between the City and HCD with future Annual Progress Reports (APRs). HCD does not demand that all objectives must be met, rather, it is a goal that enables objective assessments about program effectiveness so that the City may make informed determinations to continue, modify, or delete programs with the next Housing Element update Cycle. Table 2-1, Quantified Objectives, provides an estimate of the number of units likely to be constructed, rehabilitated or conserved/preserved in Carmel-by-the-Sea.
Table 2-1 Quantified Objectives Summary
Income Category New Construction Rehabilitation* Conservation/ Preservation**
Extremely Low 57 0 0
Very Low 56 5 0
Low 74 5 50
Moderate 44 6 0
Above Moderate 118 784 0
Total 349 800 0
SOURCE: City of Carmel-by-the-Sea 2023
NOTES: *The City has approximately 3,800 residential units, 50 (or about one percent) of which are affordable units. Each year the City processes approximately 100 building permits for remodels, additions, and other construction, which rehabilitates the existing housing stock. For the lower-income categories rehabilitation goals, the City assumes that one percent of the total permits processed will be for affordable units. Under these assumptions, the City would rehabilitate two units of affordable housing a year or approximately 16 units throughout the 2023-2031 planning cycle. This represents approximately 30 percent of the City’s existing affordable housing inventory. **The City has no units at risk of converting to market rate during this planning cycle.
Attachment 5 Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-3 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023
2.4 Goals, Policies and Programs
Community input has been and continues to be an
integral part of the development of policies and programs for the 6th Cycle Housing Element. The purpose of this
section is to set forth goals, policies, and programs to further the development of housing for all income levels in the community. The Implementation Programs listed
below provide a workplan for programs to ensure timely
implementation and tracking.
GOAL H1 FACILITATE HOUSING
CONSTRUCTION
Policy 1.1: Ensure adequate sites are available to
meet the City’s projected housing
growth needs.
Program 1.1.A: Adequate Sites
The City has a RHNA or growth need of 113 units
affordable to Extremely Low- and Very Low-Income
households. The City’s General Plan and Zoning
Ordinances provide for housing types at appropriate densities to accommodate the RHNA. The City will encourage and facilitate the development of new units consistent with the RHNA be continuing to work with housing providers such as the Carmel Foundation and will actively find new organizations to partner with. The City also includes incentives and concessions outlined in Programs listed below including an Affordable Housing Overlay district outlined below.
Quantified Objective: 113 Extremely Low and Very Low-income housing units Timeframe: June 2031
Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Program 3-3.1.a: Adequate Sites)
Program 1.1.B: Underutilized Sites - AFFH
Publicly owned sites represent an opportunity to partner with a non-profit or developer to build affordable units. The City may enter into an agreement with a development partner that makes development of affordable units more financially feasible because the cost of the land is under City ownership. The City will actively investigate the feasibility of utilizing underutilized publicly owned "... The land as it exists
now, the way it's zoned,
could support the 349
units, plus the buffer. So,
the question then is how do
we get people excited
about developing some of
those units?
That's where these
programs and processes
come in to play and that's
why we need to amend the
municipal code, to codify
those things..."
May 24, 2023 Ad Hoc
Committee Community
Meeting Attendee
Attachment 5 Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-4 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 sites (including Flanders Mansion, Sunset Center parking lots, Post Office parking lot, Vista Lobos, and surplus right-of-way) for housing development and partnering with housing providers to develop housing for lower-income households and/or senior housing on appropriate underutilized sites.
Quantified Objective: 50 affordable units
Timeframe: June 2029
Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly 3-3.1.b: Surplus Sites)
Program 1.1.C: Development on Small Sites
Small sites can be difficult to develop particularly when development standards don’t adequately take into account small lot dimensions. The City will continue incentives and provisions that facilitate development on small sites, including waived or 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 also further evaluate the parking ratio and/or reducing parking requirements in the SC and RC zoning districts to help facilitate market rate housing. Alternative parking programs such as car share will also be considered to offset reduced parking.
Quantified Objective: 20 units
Timeframe: December 2024
Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly 3-3.1.c: Development on Small Sites)
Policy 1.2: Continue to monitor and work cooperatively with regional agencies to augment infrastructure in a manner that provides adequate capacity for existing and new housing needs while preserving and improving the unique visual character of the City.
Program 1.2.A: Water Distribution Policy - AFFH
One of the major constraints to housing production in Carmel-by-the-Sea is the lack of water.
Potable water is a fundamental infrastructure need for housing and is a limited resource in CarmelAttachment 5 Attachment 2 Chapter 2.0 – Goals, Policies, and Programs 2-5 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 by-the-Sea. Water is regulated by the State Water Resources Board (SWRB) and the Monterey Peninsula Water Management District (MPWMD). Few sites have available water credits sufficient to accommodate construction of additional residential units, and the City’s water allocation is limited as is the ability to service vacant sites with water service. The City will continue to work cooperatively with MPWMD to address water infrastructure limitations that affect the ability to serve new housing development.
The City will grant water allocation priority to those projects that assist the City in meeting its share of the regional housing need for lower- and moderate-income households and will adopt City policy to clearly reflect water allocation priority and incentives for extremely low and very low-income households.
Quantified Objective: 187 units
Timeframe: June 2025
Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Program 3-3.2: Address Infrastructure Constraints) Program 1.2.B: Address Infrastructure Constraints
Ensuring the City’s infrastructure is modernized and can accommodate future growth is a critical charge of local governments. Much of the City’s infrastructure is nearing the end of its lifecycle and crafting Capital Improvement Programs that effectively manage infrastructure is imperative.
Additionally, the City experienced significant power outages during the 2022-2023 winter season that negatively impacted the City at large. The City’s Public Works Department continues to improve City infrastructure including road maintenance and storm drains, through the City’s 6-Year Capital Improvement Plan process. The City will continue to work cooperatively with outside agencies, including the Pacific Gas and Electric Company, the Carmel Area Wastewater District, and California American Water, to continue to maintain and upgrade the City’s infrastructure.
Quantified Objective: N/A
Timeframe: 2030
Responsible Party: Public Works Department
Funding Source: General Fund
(Formerly Program 3-3.2: Address Infrastructure Constraints) Attachment 5 Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-6 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Policy 1.3: Reduce or eliminate governmental constraints on the provision of affordable housing. Direct public funding resources to the conservation of existing housing units in neighborhoods where continued residential use is appropriate.
Program 1.3.A: Condominium Conversions - AFFH
The City will continue to implement 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.
Quantified Objective: Preserve rental units
Timeframe: June 2031
Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Program 3-5.3.a: Condominium Conversions)
Program 1.3.B: R-1 Motel (Conversion) Development Transfer Rights - AFFH Pursuant to coastal zone requirements, the City has recognized existing R-1 motels as an important coastal visitor asset and economic base in the community and there are a number of older nonconforming motels and hotels in the R-1 residential zoning district. These commercial establishments can be encouraged to transition out of residential areas and be rehabilitated as multifamily residences. These properties are located in key residential areas and this policy would diversify the housing stock through a more affordable means of rehabilitating and refurbishing existing buildings. In order to encourage these properties to transition into permanent multi-family residences and to retain the same number of motel rooms to accommodate coastal visitor access in the City, the City will develop a program to incentivize the transfer of development rights of motels located in the R-1 zoning district to the commercial district.
Quantified Objective: 15 units converted from motel rooms to housing units Timeframe: December 2028
Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Program 3-4.1.b Conversion of R-1 Motels)
Attachment 5 Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-7 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Program 1.3.C: Accessory Dwelling Units - AFFH
Accessory Dwelling Units (ADUs) and Junior ADUs (JADUs) provide affordable housing options for family members, seniors, students, in-home health care providers, and other small household types. ADUs can also be useful to generate additional rental income for the homeowner, making homeownership more financially feasible. It’s also important to note that 80% percent of Carmelby-the-Sea’s vacant units are for seasonal, recreation, or occasional (second home) use. ADU and JADU development on properties used for occasional use adds to the permanent housing stock and provides on-site oversight for second home properties.
Additionally, the City has number of motel units that would greatly benefit from having an affordable on-site employee housing. These units would alleviate the current lack of housing that many employees in Carmel face.
Pre-approved, standardized plans can eliminate the costs of designing a custom ADU, and assures property owners the unit type and size is already approved by the City. Pre-approved plans can also make construction more affordable if the designs are using materials that are easily sourced and standard sizes.
As an incentive to motel and hotel owners to provide on-site affordable employee housing, the City will offer an additional motel/hotel room to offset loss of revenues for the business owners and to maintain visitor-serving coastal access.
The City will amend the Code as follows:
Reflect current State ADU law in a timely manners as new relevant State laws are adopted during the planning cycle;
x Timeframe December 2024
Allow at least one on-site affordable employee housing unit in conjunction with one new hotel room per unit;
x Timeframe: December 2026
Develop pre-approved, standardized ADU plans.
x Timeframe: December 2028
Quantified Objective: 36
Timeframe: December 2024-2028
Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Program 3-5.3.c: Subordinate Units)
Attachment 5 Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-8 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Program 1.3.E: Amend the A-2 Zoning District - AFFH
The Community and Cultural Center Zoning District, A-2, allows senior housing (55+) as a permitted use in addition to uses that provide cultural and community activities associated with the arts, education and recreation; however, development standards are not specified for the A-2 district and design review is required. The lack of development and design standards adds uncertainty and can significantly lengthen the development process. Amending the A-2 zoning district with clear setbacks, height, and objective design standards will add clarity and remove a development constraint. The City will amend the Municipal Code to include clear development standards for the A-2 zoning district to encourage affordable senior housing.
Quantified Objective: 33 senior housing units
Timeframe: December 2024
Responsible Party: Community Planning and Building Department Funding Source: General Fund
(NEW)
Program 1.3.F: Manufactured Homes on a Foundation System The City current permits manufactured homes on a foundation system on lots zoned for conventional single-family residential dwellings pursuant to State law Government Code 65852.3.
Manufactured homes represent an affordable and cost-effective form of housing. The City will amend the Municipal Code to include manufactured homes as a permitted use in the R-1 zoning district subject to the same development standards to which a conventional single-family residential dwelling on the same lot would be subject.
Quantified Objective: 8 units
Timeframe: December 2024
Responsible Party: Community Planning and Building Department Funding Source: General Fund
(NEW)
Policy 1.4: Improve Development Review and Approvals Processes
Program 1.4.A: Remove Use Permit requirement for multi-family development - AFFH 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.
The Conditional Use Permit (CUP) for residential developments greater than 22 du/ac is a multifamily residential unit is a development constraint. Site design review is required for multi-family Attachment 5 Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-9 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 projects and the CUP process adds 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 remove the CUP for multi-family developments up to 33 du/ac.
Quantified Objective: 50
Timeframe: December 2024
Responsible Party: Community Development Department
Funding Source: General Fund
(Formerly Program 3-2.1.d: Multi-Family Residential Development Review) Program 1.4.B: Objective Design Standards - AFFH
The City currently lacks any adopted objective design guidelines. Detailed subjective design guidelines for single family residences and less detailed subjective design guidelines for commercial zones are in place. While the City’s single-family design guidelines are being updated this year, objective design standards are not currently being developed. The less detailed design guidelines for the commercial zones creates a higher level of subjectivity for multi-family affordable projects.
The lack of Objective Design Standards poses a constraint to residential development. Guidelines that are subjective increase uncertainty and risk for housing developers. Objective Design Standards provide a measure of clarity that proposed developments will be measured against, and provide the community with assurance that developments will conform with measurable objective standards.
The City will create Objective Design standards for multi-family affordable developments.
Quantified Objective: 50
Timeframe: December 2025
Responsible Party: Community Planning and Building Department Funding Source: General Fund
(NEW)
GOAL H2 PROTECT AFFORDABLE HOUSING AND IMPROVE THE
HOUSING STOCK
Policy 2.1: Maintain and encourage expansion of permanent residential housing stock in the Commercial, R-1, and R-4 Districts.
Program 2.1.A: Incentives for Mixed-Use Development - AFFH Providing additional development capacity of any type, increases project feasibility. In order to better incentivize affordable residential development, the City will amend the Municipal Code to Attachment 5 Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-10 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 increase the provide floor area bonuses from 15 to up to 25 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.
Quantified Objective: 20 moderate units
Timeframe: December 2024
Responsible Party: Community Planning and Building
Funding Source:
(Formerly Program 3-2.1.a)
Program 2.1.B: Permanent Housing - AFFH
Short-term rentals can provide valuable coastal visitor-serving access; however, units used as shortterm rentals remove permanent housing from the City’s housing stock. The City also has a significant percentage of the housing stock that remains vacant for part of the year due to second home ownership. This creates a significant barrier for current and potential residents to enter the local housing market and squanders opportunities to correct the housing crisis, address diversity, and provide inclusive housing options to promote a vibrant and active community.
The City’s ordinance prohibiting short-term, transient rentals and timeshares of residential dwellings in the R-1 District and allowing a limited number in commercial areas has successfully limited these uses and the City will continue to implement the ordinance. In an effort to address the high rate of second home ownership, the City will promote ADUs and JADUs on properties and will establish an Affordable Housing Trust Fund (see Program below).
Quantified Objective: 25 affordable units
Timeframe: June 2026
Responsible Party: Community Planning and Building and City Administrator Funding Source: General Fund
(Formerly Program 3-4.1.a)
Program 2.1.C: Monitor Affordable Housing Stock - AFFH
The City will develop a City-managed Affordable Housing Oversight Program and continue to monitor affordable housing projects and work with the owners to preserve affordability through identification of funding sources and/or opportunities for partnerships with other housing providers. The program will formalize annual monitoring of the affordable housing stock throughout the city including in the coastal zone to ensure the affordable housing with the coastal Attachment 5 Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-11 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 zone is being protected and provided as required by Government Code Section 65590. The City will updated its databases to better track data on the new construction, demolition, conversion and replacements housing units for low- and moderate-income households including the following:
The number of new housing units approved for construction within the coastal zone; The number of housing units for persons and families of low- and moderate-income required to be provided in new housing developments either within or within three miles of the coastal zone;
The number of existing residential dwelling units occupied by low- and moderate-income households required either within or three miles of the coastal zone that have been authorized to be demolished or converted; and
The number of residential dwelling units for low- and moderate-income persons and families that have been
required for replacement (of those units being
demolished or converted) within or three miles of the
coastal zone.
Quantified Objective: Monitor 60 housing units
Timeframe: June 2025
Responsible Party: Community Planning and
Building
Funding Source: General Fund
(Formerly Program 3-5.3.d: Monitor Affordable Housing Stock) Program 2.1.D: Establish Affordable Housing Trust Fund - AFFH The City currently relies on outside agencies and organizations to fund affordable housing projects which severely limits the City’s ability to proactively fund affordable residential units or provide rehabilitation funds. In an effort to establish a funding source dedicated to affordability, the City will establish an Affordable Housing Trust Fund. Sources of funding could include a vacancy tax, Transit Occupancy Tax and/or transfer tax.
Quantified Objective: $1,000,000
Timeframe: June 2031
Responsible Party: City Administrator
Funding Source: General Fund
(NEW)
“I believe a vacancy tax
should be proposed to the
voters, which can go toward
funding affordable housing.
The City needs to frame
affordable housing in a
positive way. I feel like
people's aversion to
affordable housing in their
communities is just a public
relations failure."
May 24, 2023 Ad Hoc Committee
Community Meeting Attendee
Attachment 5 Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-12 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Policy 2.2: Preserve and protect the scale of established neighborhoods while encouraging property improvement.
Program 2.2.A: Historic Preservation Educational Programs Cities have unique characteristics that develop over time. Carmel-by-the-Sea has a distinctive building style and form that existing residents cherish and serves to attract new residents and visitors. In an effort to continue to encourage improvements to the existing housing stock, the City will continue to promote education programs that improve public understanding of the City’s rich cultural and design heritage, and provide zoning flexibility and incentives to facilitate rehabilitation of historic resources. The City will continue to use the Historic Building Code to facilitate residential rehabilitation of historic residences.
Quantified Objective: 50 rehabilitated historic units
Timeframe: December 2024
Responsible Party: Community Planning and Building
Funding Source: General Fund
(Formerly Program 3-4.3.a: Neighborhood Preservation Educational Programs) Policy 2.3: Preserve and expand affordable and rental housing opportunities to enable local employees to live in the community where they work.
Program 2.3.A: Preserve and Increase Second and Existing Third Floor Residential Uses - AFFH
The retail and office landscape is shifting and the City continues to experience retail and office vacancies. This shift represents an opportunity to the increase supply of housing including but not limited to housing over first-floor commercial uses, as a preferred development form in all Commercial Districts. The City will proactively work with property owners to encourage conversion of vacant existing second and third stories to affordable residential uses.
The City will continue to prohibit the conversion of existing second-floor residential floor space to commercial use and will require newly constructed floor space at the second floor to be used as residential units.
Quantified Objective: 10
Timeframe: December 2031
Responsible Party: Community Planning and Building Department Funding Source: General Fund
(Formerly Program 3-2.1.b)
Attachment 5 Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-13 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Policy 2.4: Preserve the existing housing stock
Program 2.4.A: Housing Rehabilitation and Maintenance Information - AFFH In order to stay habitable and energy efficient, all buildings need maintenance and when buildings fall into an extreme state of disrepair, a more comprehensive housing rehabilitation procedure is needed. Over the past few years, inflation and building supply chain issues have dramatically increased the cost of building materials. Labor costs have also risen significantly due to a shortage of skilled construction workers and ongoing cost-of-living increases. This results in very costly rehabilitation projects. In order to assist lower income property owners, the City will distribute information on the Inspection Services and Housing Rehabilitation programs and alternative ways of financing home repairs.
Quantified Objective: 5 rehabilitated units
Timeframe: June 3031
Responsible Party: Community Planning and Building
Funding Source: General Fund
(Formerly Programs 3-1.1.a and 3-1.1.c Housing Rehabilitation and Housing Maintenance) Program 2.4.B: Residential Inspection Services
Many times, property owners do not have the knowledge to identify structural deficiencies and repair needs. Updates and repairs to properties are imperative to maintain the City’s housing stock in good condition. This is particularly important given the age of the City’s housing. The City will continue to inspect residences in the community for structural deficiencies and repair needs through the building permit process.
Quantified Objective: 50 units inspected
Timeframe: June 2031
Responsible Party: Community Planning and Building
Funding Source: General Fund
(Formerly Program 3-1.1.b: Residential Inspection Services) GOAL H3 PROVIDE OPORTUNITIES FOR NEW AFFORDABLE AND
OTHER SPECIAL NEEDS HOUSING
Policy 3.1: Incentivize affordable housing development, with an emphasis on affordable housing built to accommodate Extremely-Low Income residents. Encourage the private sector to produce affordable housing.
Attachment 5 Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-14 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Program 3.1.A: Mixed Use Affordable Housing - AFFH
The retail and office landscapes are shifting and this change represents an opportunity to encourage mixed-use developments (housing over first-floor commercial uses) as a preferred development form. The City will proactively work with property owners to incentivize upper-story housing opportunities, including the potential of allowing a third story when devoted to affordable housing subject to appropriate objective design standards, including the City’s 30-foot height limit.
Quantified Objective: 10 upper-story housing project additions Timeframe: June 2030
Responsible Party: Planning and Building Department
Funding Source: General Fund
Formerly 3-2.1.c: Incentives for Mixed Use Affordable Housing) Program 3.1.B: Housing for Extremely-Low Income Households - AFFH Providing housing units for Extremely-Low Income
Households earning 30 percent or less of the Area Median Income (AMI) for Monterey County has proved
challenging for the City. The City will continue to place specific emphasis on the provision of family housing and non-traditional housing types such as single-roomoccupancy units and transitional housing. The City will encourage development of housing for extremely-lowincome households through a variety of activities such as targeted outreach to for-profit and non-profit housing
developers on at least an annual basis, providing in-kind technical assistance, fee deferrals, expedited/priority processing, identifying grant and funding opportunities, applying for or supporting applications for funding on an ongoing basis, reviewing and prioritizing local funding for developments that include housing for ELI households
and/or offering additional incentives to supplement the density bonus provisions in State law.
The City also has programs to encourage the development of Accessory Dwelling Units, a portion of which are affordable to Extremely-Low Income Households and the City has funded a position through the General Fund to focus on long-range planning and housing needs.
Quantified Objective: 113
Timeframe: December 2031
“I'm pretty passionate about
affordable housing and
diversity. I think that's what
makes a community, and we
do lack it. I have kids that
live in the community and
go to Carmel High School,
and I would like to see more
of a social, economic, and
age difference in our
community, personally."
May 24, 2023 Ad Hoc Committee
Community Meeting Attendee
Attachment 5 Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-15 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Responsible Party: Planning and Building Department
Funding Source: General Fund
(Formerly Program 3-5.4.b)
Program 3.1.C: Density Bonus - AFFH
Density bonuses can provide a significant incentive to build affordable housing units. By increasing the number of units permitted to be built on a property, the financial investment required to bring the development to fruition has a higher likelihood of a return. Given the high cost of materials, labor and borrowing costs, increasing the number of units can make the housing project financially feasible. The City will further review and revise applicable density bonus and bonus density ordinances to clarify the regulations and increase certainty of applicability.
Quantified Objective: 25
Timeframe: December 2024
Responsible Party: Planning and Building Department
Funding Source: General Fund
(Formerly Program 3-5.4.a: Density Bonus)
Program 3.1.D: Reduced Entitlement and Development Fees - AFFH Entitlement and development fees paid by project applicants assist in the City’s ability to recover administrative and operating costs; however, these fees may have the unintended consequence of increasing the cost of housing. To encourage the development of affordable housing, the City will waive the parking in-lieu fees and reduce the planning entitlement fees by 25% for projects that provide affordable housing in commercial areas.
Quantified Objective: 25
Timeframe: December 2024
Responsible Party: Planning and Building Department
Funding Source: General Fund
(Formerly Program 3-5.5.a: Reduced Entitlement and Development Fees) Program 3.1.E: Reduced Parking Requirements - AFFH
Parking requirements increase costs to residential development and take up valuable space that can be used for housing. The City will continue to offer reduced parking requirements for affordable Attachment 5 Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-16 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 housing developments. Additionally, the City will waive the in-lieu fees for projects with affordable units, clarify the program requirements in the Central Commercial zoning district, and reduce parking requirements in the R-4 and RC zoning districts
Quantified Objective: 25 units
Timeframe: December 2024
Responsible Party: Planning and Building Department
Funding Source: General Fund
(Formerly Program 3-5.5.b: Reduced Parking Requirements) Program 3.1.F: Expedited Processing Procedures - AFFH
Faster permit processing times reduce overall project timelines and allow a project to get to the construction stage in a timely manner. Reducing overall project timelines is critical during this inflationary period where materials and labor costs continue to rise. Additionally, supply chains still have not recovered to pre-pandemic levels and delays in processing can also result in delays in placing orders and receiving materials and securing labor. The City will continue to offer expedited review procedures for residential projects that include affordable housing units and will clarify and refine permit processing procedures for affordable housing to shorten processing procedures.
Quantified Objective: 187 affordable units
Timeframe: December 2024
Responsible Party: Planning and Building Department
Funding Source: General Fund
(Formerly Program 3-5.5.c: Expedited Processing Procedures) Program 3.1.G: Affordable Housing Overlay Zoning District - AFFH Overlay districts are zoning districts established by the City to carry out specific purposes. Overlay districts can be constraints to development, or they can be used as a tool to encourage certain types of development. Currently, the city does not have an overlay district to encourage affordable housing. An overlay that requires a minimum density of 33 du/ac for specific sites, including but not limited to, identified in the Site Inventory encourages a higher unit yield and improves the financially viability of the project by increasing the unit count. Minimum density is also a tool that works to ensure the limited available land in the City is used in an efficient manner and lower densities are avoided.
The City will craft an affordable housing overlay zone with a minimum density of 33 du/ac.
Attachment 5 Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-17 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Additionally, sites listed in the Sites Inventory Appendix C, that were identified in the previous 5th cycle, and provide a minimum of 20% affordable units will be subject to an Overlay District enabling a By Right approval process per Government Code 65583.2(c). By Right means a jurisdiction shall not require:
A Conditional Use Permit;
A Planned Unit Development Permit;
Design review other than Objective Development and Design Standards; or Other discretionary, local-government review or approval that would constitute a “project” as defined in Section 21100 of the Public Resources Code (California Environmental Quality Act “CEQA”).
Quantified Objective 100 units
Timeframe: December 2024
Responsible Party: Community Planning and Development Department Funding Source: General Fund
(NEW)
Policy 3.2: Recognize the special needs of persons with disabilities and the need to retain flexibility in the design review process to accommodate these needs.
Program 3.2.A: Reasonable Accommodation Procedures - AFFH A reasonable accommodation is any change, exception or adjustment to a rule, policy, practice or service that allows a person with a disability to have an equal opportunity to participate. Information on reasonable accommodation procedures will continue to be provided at City Hall and on the City’s website. The City will evaluate and revise Policy C11-01, which describes procedures to provide reasonable accommodation and reduce permit fees for persons with disabilities in compliance with the provisions of SB 520, in an effort to remove any additional barriers and encourage those with disabilities to apply.
Quantified Objective: 8 applications
Timeframe: June 2031
Responsible Party: Community Planning and Building
Funding Source: General Fund
(Formerly Program 3-5.1: Reasonable Accommodation Procedures) Attachment 5 Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-18 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Policy 3.3: Facilitate the provision of transitional and supportive housing in appropriate districts in the community.
Program 3.3.A: Zoning for Transitional and Supportive Housing - AFFH State Bill 2, passed in 2007, revised housing element law requiring that transitional and supportive housing be permitted as a residential use, subject only to restrictions that apply to other residential dwellings of the same type in the same zone. In compliance with SB 2, the City will continue to allow transitional/supportive housing as a residential use, subject only to those requirements of other residential dwellings of the same type in the same zone. The City will also amend the Municipal Code to clarify transitional and supportive housing is a permitted use in zoning districts that allow residential uses.
Quantified Objective: N/A
Timeframe: December 2024
Responsible Party: Community Planning and Building
Funding Source: General Fund
(Formerly Program 3-5.8: Zoning for Transitional and Supportive Housing) Program 3.3.B: Low-Barrier Navigation Centers - AFFH
AB101 (2019) provides a pathway to permanent housing for people experiencing homelessness. A “Low Barrier Navigation Center” is a housing first, low-barrier, service-enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. In order to comply with State law, the City will amend the Zoning Ordinance to include the definition for “Low Barrier Navigation Center” and will develop by right procedures for processing low barrier navigation centers.
Quantified Objective: N/A
Timeframe: December 2024
Responsible Party: Community Planning and Development
Funding Source: General Fund
(NEW)
Attachment 5 Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-19 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 GOAL H4 EXEMPLIFY SUSTAINABLE DEVELOPMENT AND ENERGY
CONSERVATION
Policy 4.1: Support energy and water conservation programs to reduce the consumption of these resources in housing and to reduce housing costs.
Program 4.1.A: Water Conservation - AFFH
Potable water remains scarce and highly regulated in the City and continues to be a limiting constraint to new development. In order to preserve the City’s limited water allocation for new residential units, the City will continue to Enforce the Water Management Program, enhance the Water Distribution Policy, and provide information to the community on water conservation retrofits and best practices. In addition, provide information on and promote water conservation education through outreach and community engagement, and retrofit rebates provided by the Monterey Peninsula Water Management District.
Quantified Objective: Conserve water
Timeframe: June 2031
Responsible Party: Community Development and Building
Funding Source: General Fund
(Formerly 3-5.6.b Water Conservation)
Program 4.1.B: Energy Conservation and Green Building
Conserving energy to reduce stress on the electrical grid and reduce the effects of climate change, including increased wildfire risk and flooding to the community, is more evident than before. The city experienced significant power outages during the 2022-23 storms, adjacent areas were flooded, and the past few wildfire seasons have significantly impacted air quality and resulted in evacuations of neighboring communities. The City will continue to review applications for new construction and substantial alterations taking into consideration solar orientation and access to sunlight and will continue to require compliance with current state building standards for energy efficiency in all new homes. The City will update the website annually with related energy conservation and green buildings information to further disseminate information. The City also participates in the Community Wildfire Protection Program and is committed to implementing Program recommendations.
Quantified Objective: 100 units
Timeframe: June 2031
Responsible Party: Community Planning and Building
Funding Source: General Fund
(Formerly Program 3-5.6.a: Energy Conservation and Green Building) Attachment 5 Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-20 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 GOAL H5 PUBLICIZE HOUSING NEEDS AND RESOURCES
Policy 5.1: Support and enforce fair housing laws. Expand fair housing choice by promoting housing opportunities and removing impediments to fair housing.
Program 5.1.A: Fair Housing Services - AFFH
The Fair Housing Act protects people from discrimination when they are renting or buying a home, getting a mortgage, seeking housing assistance, or engaging in other housing-related activities. The California Department of Fair Employment and Housing and the Conflict Resolution and Mediation Center of Monterey County provide fair housing services and information. These agencies advise persons in need of information on housing and employment, mediate landlord/tenant disputes and research complaints about discriminatory housing practices. The City shall coordinate with these agencies to provide printed information about fair housing services at City Hall, on the City’s website, and in other public buildings such as the City’s two libraries. The City shall also refer inquiries related to fair housing to these agencies and provide fair housing resources at outreach events.
Quantified Objective: 25 referrals/materials distributed Timeframe: June 2031
Responsible Party: Community Planning and Development
Funding Source: General Fund
(Formerly Program 3-5.7)
Program 5.1.B: Section 8 Rental Assistance - AFFH
Created by the Housing and Community Development Act of 1978, the Housing Choice Voucher program, also known as Section 8, provides assistance to eligible low- and moderate-income families to rent housing in the private market. Eligibility for this program is based on the family’s gross annual income and family size. The Section 8 rental assistance program is administered by the Housing Authority of Monterey County. The City will continue to facilitate use of the Section 8 program in the community by distributing information for the program at City Hall and the Library and making referrals to the Housing Authority.
Quantified Objective: 40 referrals/materials distributed Timeframe: June 2031
Responsible Party: Community Planning and Building
Funding Source: General Fund
(Formerly Program 3-5.3.b Section 8 Rental Assistance)
Attachment 5 Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-21 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Program 5.1.C: Shared Housing Information - AFFH
Shared housing is another important tool to provide affordable housing units. Shared housing is generally more affordable because a portion of a residence is rented as opposed to an entire unit.
Shared housing can also financially help low-income individuals who own their homes and alleviate loneliness. Benefits to low-income individuals include provision of safe and secure affordable housing in a high-cost market. The City will continue to distribute informational materials from the Monterey County Housing Authority and the Carmel Foundation, display information at City Hall and other public buildings and posted on the City’s website. The City will also seek out other Shared Housing providers and resources to expand this housing option.
Quantified Objective: 80 referrals/website visits
Timeframe: June 2031
Responsible Party: Community Planning and Building
Funding Source: General Fund
(Formerly Program 3-5.2: Shared Housing Information)
Policy 5.2: Promote public awareness and foster pride in the history of the village.
Program 5.2.A: Support Community Organizations - AFFH
Community organizations play a pivotal role to provide outreach and services to those facing housing issues. The City will continue to support neighborhood organizations that promote neighborhood involvement, safety and improvement including but not limited to the Carmel Residents Association, the Carmel Foundation and Carmel Cares. The City will develop partnerships with these organizations to promote neighborhood enhancement programs, conduct and improve outreach and education, and solicit community input.
Quantified Objective: N/A
Timeframe: June 2031
Responsible Party: Community Planning and Building
Funding Source: General Fund
(Formerly Program 3-4.2.b)
Attachment 5 Attachment 2
Chapter 2.0 – Goals, Policies, and Programs 2-22 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 This side intentionally left blank.
Attachment 5 Attachment 2
Chapter 3.0 – Overview of Housing Needs and Constraints 3-1 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023
3.0 Overview of Housing Needs and Constraints
3.1 Introduction
This chapter summarizes housing needs and constraints in the City of Carmel-by-the-Sea. The analysis of housing needs primarily utilizes U.S. Census, ACS 5-Year 2019 Estimate data. For a detailed analysis of housing needs, please see Appendix A— Housing Needs & Fair Housing Report. Also, for a detailed analysis of governmental and non-governmental constraints, please see Appendix B—Housing Constraints.
3.2 Overview of Housing Needs
The following section provides an overview of demographic information, household and housing stock characteristics, and special housing needs in Carmel-by-the-Sea.
Population Growth
Table 3-1 shows the population projections between 2015 and 2045 according to the Association of Monterey Bay Area Governments (AMBAG) 2022 Regional Growth Forecast. In Carmel-by-theSea, the population is forecast to grow by approximately three (3) percent between 2015 to 2045.
This reflects 11 percent less than the County, one (1) percent more than Pacific Grove, and 56 percent less than Del Rey Oaks. Population growth forecasts provide critical insight to the future demands of communities in terms of housing needs, employment, and more.
Table 3-1 Population Growth Forecast by Jurisdiction, 2015-2045 Jurisdictions Population Change 2015-2045
2015 2020 2025* 2030* 2035* 2040* 2045* Numeric %
Monterey County 430,310 441,143 452,761 467,068 476,028 483,884 491,443 61,133 14% Carmel-by-the-Sea 3,854 3,949 3,946 3,954 3,964 3,974 3,984 130 3% Del Rey Oaks 1,663 1,662 1,693 1,734 1,859 2,330 2,650 987 59% Pacific Grove 15,460 15,265 15,290 15,395 15,530 15,676 15,817 357 2% SOURCE: AMBAG Regional Growth Forecast, 2022
NOTE: *Projected growth values
Attachment 5 Attachment 2
Chapter 3.0 – Overview of Housing Needs and Constraints 3-2 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Age Characteristics
In 2010, Carmel-by-the-Sea’s predominant age group was individuals between 65 and 74 years of age (19 percent). Between 2010 and 2019, the general age of the population began slowly increasing, with the most populous age groups in the City being individuals between 55 and 84 years of age.
The City’s median age has changed little since 2010, ranging from 56 in 2010, 54 in 2015, and 59 in 2019. Overall, the City’s aging trend suggests a demand for housing geared toward middle-aged to senior groups.
Table 3-2 shows that Carmel-by-the-Sea’s most populous age group in 2019 was individuals 65 to 74 years of age (21 percent). Compared to the County and neighboring cities, Carmel-by-the-Sea has the largest 55 to 85+ age group (43 percent) followed by Pacific Grove (27 percent), Del Rey Oaks (23 percent), and the County (13 percent).
Table 3-2 Population Age Distribution by Jurisdiction, 2019 Jurisdiction Population Age
0-4 5-14 15-24 25-34 35-44 45-54 55-64 65-74 75-84 85+
Monterey County 7.3% 14.8% 14.3% 14.4% 13.0% 11.8% 11.1% 7.7% 3.6% 1.9% Carmel-by-the-Sea 1.4% 9.7% 1.4% 8.1% 10.6% 11.4% 14.3% 21.3% 14.9% 7% Del Rey Oaks 5.7% 8.3% 5.7% 12.6% 12.5% 13% 18.9% 15.9% 4.4% 2.9% Pacific Grove 3.5% 12.2% 8.5% 10.0% 10.4% 13.3% 14.7% 16.5% 6.6% 4.3% SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
Race and Ethnicity Characteristics
When comparing the City and the County, non-Hispanic White and Hispanic or Latino populations are the most represented; however, the County presents more diversity than Carmel-by-the-Sea.
Non-Hispanic White individuals comprise 87 percent of Carmel-by-the-Sea’s population followed by Hispanic or Latino (8 percent) and Asian populations (5 percent). In contrast, the County’s largest population is Hispanic or Latino individuals (60 percent) followed by non-Hispanic White (31 percent). The City has no populations identifying as American Indian or Alaska Native or Native Hawaiian or Other Pacific Islander. Black or African American non-Hispanic individuals represent less than 1 percent of the City’s population.
Table 3-3 provides a comparison of racial and ethnic composition by jurisdiction. In 2019, Carmelby-the-Sea (87 percent) and the neighboring City of Pacific Grove (83 percent) had the largest nonHispanic White populations compared to Del Rey Oaks (75.5 percent) and the County (30.8 percent). Compared to surrounding cities and the County, Carmel-by-the-Sea had the lowest Asian population (5 percent). Overall, Carmel-by-the-Sea is the least diverse when compared to the County and the neighboring cities of Del Rey Oaks and Pacific Grove.
Attachment 5 Attachment 2
Chapter 3.0 – Overview of Housing Needs and Constraints 3-3 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Table 3-3 Population by Race by Jurisdiction, 2019
Jurisdiction
American
Indian or
Alaska
Native
Asian,
alone
Black or
African
American,
NonHispanic
White, NonHispanic
Some
Other
Race
Hispanic
or Latino
Native
Hawaiian
and Other
Pacific
Islander
Monterey County 0.2% 5.5% 2.5% 30.8% 0.1% 60.3% 0.5%
Carmel-by-the-Sea 0.0% 5.2% 0.1% 86.5% 0.0% 8.2% 0.0%
Del Rey Oaks 0.0% 7.1% 2.5% 75.5% 0.0% 13% 0.3%
Pacific Grove 0.2% 5.8% 1.0% 82.8% 0.0% 10.3% 0.1%
SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019, ACS 5-Year Estimates, 2019 Between 2010-2019, Carmel-by-the-Sea’s population composition experienced fluctuations in nearly all populations, and by 2019 saw a decline in each population except non-Hispanic White. In 2015, the non-Hispanic White population experienced a two (2) percent decrease in size, while the Asian and Hispanic or Latino populations increased two (2) percent and three (3) percent, respectively. In 2019, Carmel-by-the-Sea experienced a seven (7) percent increase in the non-Hispanic White population, and a decline in both the Asian and Hispanic or Latino populations by four (4) percent and three (3) percent, respectively. Since 2015, population levels have remained less than one (1) percent for Black or African American, American Indian or Alaska Native, Native Hawaiian and Other Pacific Islander populations in Carmel-by-the-Sea.
Racially or Ethnically Concentrated Areas of Poverty and Affluence A Racially Concentrated Area of Poverty or an Ethnically Concentrated Area of Poverty (R/ECAP) and a Racially Concentrated Area of Affluence (RCAAs) represent opposing ends of the segregation spectrum from racially or ethnically segregated areas with high poverty rates to affluent predominantly White neighborhoods.
The City of Carmel-by-the-Sea is not considered a R/ECAP nor is the City considered an RCAA.
As highlighted previously, Carmel-by-the-Sea does not have a majority-minority population and thus cannot be labelled as a R/ECAP. According to the HCD AFFH Data Viewer, less than or equal to 20 percent of the City’s population is non-White. Though Carmel-by-the-Sea’s percentage of exclusively White population and AMI are higher than the county-wide average, the median income in the City is not high enough for the jurisdiction to be considered an RCAA. This could be a reflection of the high vacancy rate (over 50%) which could be explained by the high rate of second home (seasonal use) homeownership in the City.
Employment
According to the AMBAG 2022 Regional Growth Forecast, Carmel-by-the-Sea was projected to experience an employment growth of 17 percent (562 new jobs) between 2015-2045. Table 3-4 Attachment 5 Attachment 2
Chapter 3.0 – Overview of Housing Needs and Constraints 3-4 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 shows the employment growth forecast for Carmel-by-the-Sea, the County, and neighboring cities.
This projected employment growth mirrors the County (17 percent) and is 4 percent higher than Pacific Grove (13 percent), but reflects one (1) percent lower than Del Rey Oaks (18 percent). This projected increase in job growth presents an opportunity for cities to construct additional housing options for the existing and future workforce.
Table 3-4 Employment Growth Forecast by Jurisdiction, 2015-2045 Jurisdictions Population Change
2015 - 2045
2015 2020 2025* 2030* 2035* 2040* 2045* Numeric Percent Monterey County 225,268 243,015 245,054 249,613 253,918 258,553 263,437 38,169 17% Carmel-by-the-Sea 3,353 3,566 3,593 3,674 3,752 3,833 3,915 562 17% Del Rey Oaks 705 748 753 774 794 815 834 129 18%
Pacific Grove 7,470 8,016 8,061 8,152 8,244 8,343 8,445 975 13% SOURCE: AMBAG Regional Growth Forecast, 2022
NOTE: *Projected growth values
According to U.S. Census Bureau data reported in a Housing Feasibility Study for the City of Carmel-by-the-Sea by ECONorthwest,1
a mere 2.6 percent of workers live and work in Carmel-bythe-Sea, while approximately half of all workers live within 10 miles of the City and 26 percent commute from more than 25 miles away.2
Concentrations in hospitality and leisure services may
create obstacles for local workers that earn lower-incomes and cannot afford to live in the community. Such imbalances of jobs to housing impacts
an individual’s ability to integrate into the community due to long distance travel, excessive costs of travel, and reduced personal time.
Table 3-5 provides a breakdown of unemployment rates
for Carmel-by-the-Sea, the County, and neighboring
cities. Compared to the County and neighboring cities,
Carmel-by-the-Sea has the lowest unemployment rate
with less than 1 percent of unemployed residents. This
indicates an approximate 4.8 percent less than the
County, 5 percent less than the Del Rey Oaks, and 3.8
percent less than Pacific Grove.
1 ECONorthwest, Housing Feasibility Study, 2023
2 U.S. Census Bureau Longitudinal Employer-Household Dynamics Data (See https://lehd.ces.census.gov/) "I know, being an artist in this
town and a gallery owner,
that many of our artists
cannot afford to live in
Carmel. And that is the very
heartbeat of where this town
was really rooted from."
May 24, 2023 Ad Hoc
Committee Community
Meeting Attendee
Attachment 5 Attachment 2
Chapter 3.0 – Overview of Housing Needs and Constraints 3-5 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Table 3-5 Unemployment Rate, Carmel-by-the-Sea, 2019
Jurisdictions Unemployment Rate
Monterey County 4.9%
Carmel-by-the-Sea 0.1%
Del Rey Oaks 5.1%
Pacific Grove 3.9%
SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
Household Characteristics
Table 3-6 provides an overview of the projected housing units needed in Monterey County, Carmelby-the-Sea, and neighboring cities, Del Rey Oaks and Pacific Grove.3 Carmel-by-the-Sea is forecast
to have a household growth of approximately one (1) percent by 2045 – an increase of 42 housing units. Compared to the County, this reflects 18 percent less projected growth and two (2) percent less growth than Pacific Grove. Of the neighboring cities, the City of Del Rey Oaks has the highest projected increase in housing unit growth at 61 percent.
Table 3-6 Housing Forecast by Jurisdiction, 2015-2045
Jurisdictions Population Change
2015 - 2045
2015 2020 2025* 2030* 2035* 2040* 2045* Numeric Percent Monterey County 139,177 141,764 146,716 153,852 159,100 162,612 165,328 26,151 19% Carmel-by-the-Sea 3,417 3,437 3,437 3,442 3,450 3,453 3,459 42 1% Del Rey Oaks 741 741 762 809 848 1,052 1,195 454 61%
Pacific Grove 8,184 8,201 8,214 8,267 8,336 8,400 8,463 279 3% SOURCE: AMBAG Regional Growth Forecast, 2022
NOTE: *Projected growth values
Household Type and Size
In Carmel-by-the-Sea, the largest household type was married-couple family households (47 percent) followed by single-person households (40 percent). This is consistent with the County and neighboring cities. Carmel-by-the-Sea has the lowest percentage of female-headed households (6 percent) compared to the County (13 percent), Del Rey Oaks (7 percent), and Pacific Grove (9 percent).
3 Source: AMBAG Regional Growth Forecast, 2022
Attachment 5 Attachment 2
Chapter 3.0 – Overview of Housing Needs and Constraints 3-6 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Carmel-by-the-Sea’s largest household type according to size is two-person households (42 percent) followed by one-person households (40 percent). This is consistent with married-couple family households remaining the largest household type since 2010 followed by single-person households.
This reflects a demand for affordable housing units appealing to married-couple and single-person households.
Household Income
In Carmel-by-the-Sea, above moderate-income households make up the majority of households in the City (62 percent) followed by lower-income households (28 percent). Table 3-7 shows households by income category in Carmel-by-the-Sea. Approximately seven (7) percent of households in Carmel-by-the-Sea identify as extremely low-income.
Table 3-7 Households by Income Category, Carmel-by-the-Sea, 2019 Income Category (% of County MFI) Households Percent
Extremely Low-Income (30% MFI or less) 140 7%
Very Low-Income (30-50% MFI) 170 9%
Low-Income (50-80% MFI) 235 12%
Moderate-Income (80-100% MFI) 185 10%
Above Moderate-Income (>100% MFI) 1,200 62%
Total 1,930 100%
SOURCE: Department of Housing and Urban Development (HUD) Comprehensive Housing Affordability Strategy (CHAS), 2015-2019 In 2019, Carmel-by-the-Sea’s median household income was $98,188 – approximately $27,173 higher than the County ($71,015)4. The City of Del Rey Oaks had the second highest median household income at $95,000 followed by Pacific Grove at $88,250. Understanding Carmel-by-theSea’s median household income determines what income category households identify with and what affordability levels look like for the community.
The household income characteristics in Carmel-by-the-Sea reveal a demand for the development of more affordable housing options that appeal to both lower-income and above-moderate households.
Tenure
The number of residents who own their homes compared to those who rent their homes can help identify the level of housing insecurity (i.e., ability for individuals to stay in their homes) in a City and region. Generally, renters may be displaced more quickly if prices increase. 4 U.S. Census Bureau ACS 5-Year Estimate, 2019
Attachment 5 Attachment 2
Chapter 3.0 – Overview of Housing Needs and Constraints 3-7 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 In Carmel-by-the-Sea, the housing stock includes 828 renter-occupied housing units and 1,099 owner-occupied housing units. Table 3-8 shows housing units by type and tenure in Carmel-by-theSea. When analyzing housing unit type in tandem with tenure, the majority of all housing units are single-family detached (87 percent), of which 17 percent are renter-occupied and 32 percent are owner-occupied.
Table 3-8 Housing Units by Type and Tenure, Carmel-by-the-Sea, 2019 Tenure
Single-Family
Detached
Single-Family
Attached Multifamily Mobile Homes Total
Units
Count Percent Count Percent Count Percent Count Percent Renter-Occupied 568 69% 19 2% 221 27% 20 2% 828
Owner-Occupied 1,076 98% 0 0% 23 2% 0 0% 1,099
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
Homeownership rates often vary considerably across race/ethnicity in the Monterey Bay Area and throughout the country. These disparities not only reflect differences in income and wealth but also stem from federal, state, and local policies that limited access to homeownership for communities of color while facilitating homebuying for White residents. While many of these policies, such as redlining, have been formally disbanded, the impacts of race-based policy are still evident across Monterey Bay Area communities.
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 renterhouseholds. Hispanic or Latino households (8 percent) makeup the second largest population in Carmel-by-the-Sea, of which 72 percent are owner-households and 28 percent are renterhouseholds. 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.
In many cities, homeownership rates for households in single-family homes are substantially higher than the rates for households in multi-family housing. In Carmel-by-the-Sea, 98 percent of households in detached single-family homes are homeowners, while 2 percent of households in multifamily housing are homeowners.
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.
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Chapter 3.0 – Overview of Housing Needs and Constraints 3-8 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 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.
Disproportionate Housing Needs
Overcrowding
Understanding the prevalence of overcrowded households within a community helps determine the need for affordable and adequately sized housing units for the community. Overcrowding is defined as a household with more than one occupant per room excluding bathrooms and kitchens. Units with more than 1.5 persons per room are considered severely overcrowded. Overcrowding may occur due to a lack of available affordable and/or adequately sized housing units. Cultural norms and customs combined with low-income or lack of adequately size housing units can result in overcrowding too.
In Carmel-by-the-Sea, the majority of households (94 percent) do not experience overcrowding. Six (6) percent of households in Carmel-by-the-Sea are severely overcrowded and zero percent are moderately overcrowded. When analyzing overcrowding by tenure, 10 percent of renter-occupied households experience severe overcrowding compared to two (2) percent of owner-occupied households. Monterey County has an eight (8) percent higher rate of overcrowding than Carmel-bythe-Sea.
Cost Burden
According to HCD, overpayment or cost burden is measured as households spending more than 30 percent of their gross income including utilities for housing; severe overpayment or severe cost burden is measured as households spending 50 percent or more of their gross income for housing.
The cost burden rates of owners and renters in a community provide insight to housing needs such as, the affordability of the local housing market and the availability of housing units that accommodate household needs like size and housing type. Additionally, federal and state agencies examine cost burden to determine a community’s need for housing assistance.
In Carmel-by-the-Sea, 23 percent of households are cost burdened and 23 percent are severely cost burdened, while the County has a cost burden rate of 22 percent and a severe cost burden rate of 18 percent. It is important to relate Carmel-by-the-Sea’s 46 percent total cost burden to the 10 percent of renter households experiencing overcrowding, as these may be indicators of an unaffordable and homogenous local housing market.
When analyzing cost burden by tenure, renter and owner households experience similar levels of cost burden. Renter-occupied households experience 24 percent cost burden and 23 percent severe cost burden (47 percent total), whereas owner-occupied households experience 23 percent cost burden and 22 percent severe cost burden (45 percent total).
Attachment 5 Attachment 2
Chapter 3.0 – Overview of Housing Needs and Constraints 3-9 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Neighborhoods
All Carmel-by-the-Sea residents live in neighborhoods identified as “Highest Resource” areas by State-commissioned research, while none live in areas identified by this research as “Low Resource” or “High Segregation and Poverty” areas. These neighborhood designations are based on a range of indicators covering areas such as education, poverty, proximity to jobs and economic opportunities, low pollution levels, and other factors.5
Special Needs Groups
Extremely Low-Income Households and Poverty Status
Extremely low-income households are those that earn less than 30 percent of the median family income (MFI). Very low-income households are those that earn 50 percent of less of the MFI.
The 2015-2019 Comprehensive Housing Affordability Strategy (CHAS) data indicates there were approximately 310 extremely low- and very low-income households living in Carmel-by-the-Sea.
There are approximately 140 extremely low-income households in Carmel-by-the-Sea, 100 of which are owner-occupied households and 40 extremely low-income renter-occupied households.
In Carmel-by-the-Sea, 62 percent of households make more than 100 percent of the Area Median Income (AMI),6
compared to 7 percent making less than 30 percent of AMI, which is considered extremely low income. In Monterey County, 30 percent AMI is the equivalent to the annual income of $21,305. Many households with multiple wage earners, including food service workers, full-time students, teachers, farmworkers and healthcare professionals, can fall into lower AMI categories due to relatively stagnant wages in many industries.
Throughout the region, there are disparities between
the incomes of homeowners and renters. Typically,
the number of low-income renters greatly outpaces
the amount of housing available that is affordable for
these households. In Carmel-by-the-Sea, the largest
proportion of both renters and homeowners fall in
the Greater than 100 percent of AMI group. Lowerincome owner-occupied households as a whole (0-80 percent of AMI), makeup 16 percent of households
and renter-occupied households makeup 13 percent
of households.
5 For more information on the “opportunity area” categories developed by HCD and the California Tax Credit Allocation Committee, see this website: https://www.treasurer.ca.gov/ctcac/opportunity.asp. The degree to which different jurisdictions and neighborhoods have access to opportunity will likely need to be analyzed as part of new Housing Element requirements related to affirmatively furthering fair housing. “We can’t allow cities and counties
to export their poverty. Every
community has to be responsible
for the sum total of its parts and
every community has low-income
people.”
May 24, 2023 Ad Hoc Committee
Community Meeting Attendee
Attachment 5 Attachment 2
Chapter 3.0 – Overview of Housing Needs and Constraints 3-10 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Currently, people of color are more likely to experience poverty and financial instability as a result of federal and local housing policies that have historically excluded them from the same opportunities extended to white residents.7 These economic disparities also leave communities of color at higher risk for housing insecurity, displacement or homelessness. In Carmel-by-the-Sea, Black or African American residents experience the highest rates of poverty (50 percent), followed by Hispanic or Latinx residents (13 percent).
Seniors
Seniors are identified as individuals 65 years and older. Senior households often experience a combination of factors that can make accessing or keeping affordable housing a challenge. They often live on fixed incomes and are more likely to have disabilities, chronic health conditions and/or reduced mobility. Seniors who rent may be at even greater risk for housing challenges than those who own, due to income differences between these groups.
In Carmel-by-the-Sea, senior households makeup 43 percent of all households, of which 15 percent rent their homes. Similarly, the County and neighboring cities’ senior households primarily own their homes. The majority of Carmel-by-the-Sea senior households earn a yearly income of $200,000 or more (14 percent). However, an estimated 61 percent of senior households earn less than the City’s median household income ($98,188).
People with Disabilities
Developmental disabilities are defined as severe, chronic, and attributed to a mental or physical impairment that begins before a person turns 18 years old. This can include Down’s Syndrome, autism, epilepsy, cerebral palsy, and mild to severe mental retardation. Some people with developmental disabilities are unable to work, rely on Supplemental Security Income, and live with family members. In addition to their specific housing needs, they are at increased risk of housing insecurity after an aging parent or family member is no longer able to care for them.
Overall, 12 percent of people in Carmel-by-the-Sea have a disability of some kind. Of the 12 percent of people with a disability, approximately less than 70 individuals have a developmental disability.8 Of the individuals in Carmel-by-the-Sea with a developmental disability, less than 31 are children (i.e., under the age of 18) and less than 36 are adults. The most common living arrangement for individuals with disabilities in Carmel-by-the-Sea is the home of a parent/family/guardian.9 7 Moore, E., Montojo, N. and Mauri, N., 2019. Roots, Race & Place: A History of Racially Exclusionary Housing the San Francisco Bay Area. Hass Institute. 8 California Department of Developmental Services, Consumer Count by California ZIP Code and Age Group (2021). 9 California Department of Developmental Services, Consumer Count by California ZIP Code and Residence Type (2021).
Attachment 5 Attachment 2
Chapter 3.0 – Overview of Housing Needs and Constraints 3-11 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Large Households
Large households are defined as households of five (5) or more individuals. Large households often have different housing needs than smaller households. Household income and local housing markets can greatly impact a household’s ability to afford adequately sized housing. If a city’s rental housing stock does not include larger apartments, large households who rent could end up living in overcrowded conditions. Similarly, large households may experience overpayment as a result of a high housing market and limited availability.
Carmel-by-the-Sea has 70 large households of which 57 percent are renter-occupied households.
Renter-occupied households makeup the majority of all 3-5+ person households. This combined with a total cost burden rate of 46 percent for renter-occupied households, suggests it is likely that large households in Carmel-by-the-Sea may experience overcrowding and/or overpayment.
Single-Parent Households
Households headed by one person are often at greater risk of housing insecurity, particularly femaleheaded households, who may be supporting children or a family with only one income. Femaleheaded households with children may face particular housing challenges, with pervasive gender inequality resulting in lower wages for women. Moreover, the added need for childcare can make finding a home that is affordable more challenging.
In Carmel-by-the-Sea, female-headed family households make up 75 percent of single-parent households and male-headed households makeup 25 percent. This is consistent with the County and neighboring cities. In 2019, there were no single-parent households that fell in the Below Poverty Level category in Carmel-by-the-Sea.
Farmworkers
Across the state, housing for farmworkers has been recognized as an important and unique concern.
Farmworkers generally receive wages that are considerably lower than other jobs and may have temporary housing needs. Finding decent and affordable housing can be challenging, particularly in the current housing market.
According to the California Employment Development Department, the average farm worker (Farming, Fishing, and Forestry Occupation) in Monterey County earned a median annual income of $29,901. This annual income places each individual or household in the very low-income bracket for Carmel-by-the-Sea. Additionally, this limited income may be significantly impacted by employment status (permanent or seasonal).
There are no agriculture uses within the City of Carmel-by-the-Sea. Nonetheless, Carmel-by-the-Sea shares the responsibility for farmworker housing as farmworkers may work within 75 miles of agricultural land uses (including dairy, vineyards and produce) and the City is within 75 miles of these uses.
Attachment 5 Attachment 2
Chapter 3.0 – Overview of Housing Needs and Constraints 3-12 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Persons Experiencing Homelessness
Homelessness remains an urgent challenge in many communities across the state, reflecting a range of social, economic, and psychological factors. Rising housing costs result in increased risks of community members experiencing homelessness. Far too many residents who have found themselves housing insecure have ended up homeless in recent years, either temporarily or longer term. Addressing the specific housing needs for the unhoused population remains a priority throughout the region, particularly since homelessness is disproportionately experienced by people of color, people with disabilities, those struggling with addiction and those dealing with traumatic life circumstances.
In Monterey County, the most common type of household experiencing homelessness is those without children in their care. Among households experiencing homelessness that do not have children, 83 percent are unsheltered. Forty-five (45) percent of homeless households with children are unsheltered. In Carmel-by-the-Sea, the number of households experiencing homelessness has decreased between 2017 to 2022 from 16 persons to one (1), respectively.
Housing Stock Characteristics
Housing Growth
The number of new homes built in the Monterey Bay Area has not kept pace with the demand, resulting in longer commutes, increasing prices, and exacerbating issues of displacement and homelessness. In 2019, Carmel-by-the-Sea had 3,832 housing units, an approximate 6 percent increase from the 3,606 units that existed in 2010. This reflects 4 percent more growth than Monterey County during the same period.
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.
Housing Type
In recent years, most housing produced in the region and across the state consisted of single-family homes and larger multi-unit buildings. However, some households are increasingly interested in “missing middle housing,” including duplexes, triplexes, townhomes, cottage clusters and accessory dwelling units. These housing types may open up more options across incomes and tenure, from young households seeking homeownership options to seniors looking to downsize and age-in-place.
Attachment 5 Attachment 2
Chapter 3.0 – Overview of Housing Needs and Constraints 3-13 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Table 3-9 Housing Permits by Income Group, Carmel-by-the-Sea, 2015-2021 Income Group Number Percent of RHNA
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 2022. 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.
It is important to have a variety of housing types to meet the needs of a community today and in the future. In 2019 Carmel-by-the-Sea’s mix of housing types was as follows:
87 percent of homes were single-family detached;
10 percent were multifamily;
2 percent were mobile homes; and
1 percent were single-family attached.
Chapter 2 of the Housing Element includes programs to expand the variety of housing types available in Carmel-by-the-Sea.
Housing Availability
Compared to the County and neighboring cities, Carmel-by-the-Sea has the highest vacancy rates at 50 percent. Table 3-10 shows vacant housing units by type in Carmel-by-the-Sea. From 2010 to 2019, the City has experienced a stable vacancy average of 51 percent as a result of tourism and second-home
ownership. Eighty (80) percent of Carmel-by-the-Sea’s
vacant units are for seasonal, recreations, or occasional (second home) use, aligning with the 51 percent average vacancy trends. This creates a significant barrier for current and potential residents to enter the local housing market and squanders opportunities to correct the housing crisis, address diversity, and provide inclusive housing options to promote a vibrant and active community.
“One way to increase the stock of
people living here is to rent out
empty houses and put
disincentives on them for not
renting.”
May 24, 2023 Ad Hoc Committee
Community Meeting Attendee
Attachment 5 Attachment 2
Chapter 3.0 – Overview of Housing Needs and Constraints 3-14 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 The House Element includes programs to address the high vacancy rate related to occasional (second home) use. All policies and programs can be found in Chapter 2 of the Housing Element.
Table 3-10 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
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. Displacement risk data is insufficient for the central and southern regions of the City.
Housing Costs and Affordability
Housing costs reflect a complex mix of supply and demand factors, including an area’s demographic profile, labor market, prevailing wages and job outlook, coupled with land and construction costs. In the Monterey Bay Area, the costs of housing have been steadily increasing since 2000, besides a decrease during the Great Recession.
A diversity of homes at all income levels creates opportunities for all Carmel-by-the-Sea residents to live and thrive in the community. The following represent current housing costs in Carmel-by-theSea:
Attachment 5 Attachment 2
Chapter 3.0 – Overview of Housing Needs and Constraints 3-15 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Ownership: The median home value was estimated to be $2,070,835 in 2022. Home prices increased by 59 percent from 2019 to 2022 This reflects a 20 percent higher increase than the County, which is similar to neighboring cities.10
Rental Prices: As of 2023, the average rent for an apartment in Carmel-by-the-Sea ranged from $2,200 (studio) to $5,459 (three bedrooms).11
Table 3-11 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.
Table 3-11 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 10 Zillow Home Value Index, December 2019-2022
11 Zillow Rental Price Index, March 2023
Attachment 5 Attachment 2
Chapter 3.0 – Overview of Housing Needs and Constraints 3-16 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 As discussed earlier, 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 annually or more (62 percent of Carmel-by-the-Sea households are categorized as above moderateincome).
3.3 Governmental and Non-Governmental Constraints
Housing development is affected by government regulations and other non-governmental forces, such as the cost of land and building materials and the availability and cost of housing loans.
Housing elements are required to investigate the impact of these constraints as they present themselves in the city for which the housing element is being prepared. This subsection provides a brief overview of governmental and non-governmental constraints in the City. Please see Appendix B for a full discussion of housing constraints.
Summary of Governmental Constraints
The governmental constraints to the development of affordable housing in Carmel-by-the-Sea are summarized below.
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 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).
Conversion of Motels for Multi-Family Housing (Opportunity) The City will explore the development of a program to allow the transfer of development rights of hotels and motels located in the R-1 zoning district to the commercial zoning district. This might allow older motels to convert to multi-family housing and thereby provide a new source of affordable housing in the community.
Accessory Dwelling Units
The City of Carmel-by-the-Sea last updated it ADU ordinance in 2017, and therefore the City’s regulations addressing ADUs are out of date. The City has included a new program in this 6th Cycle Housing Element to revise its Zoning Code to be consistent with ADU and JADU state law, incentivize manager’s units in existing hotels and motels and develop standardized ADU plans.
Attachment 5 Attachment 2
Chapter 3.0 – Overview of Housing Needs and Constraints 3-17 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 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.
Multi-Family Housing
Currently, the City allows multi-family housing without a conditional use permit (CUP) at densities up to 22 dwelling units per acre. In order to provide additional incentive to build multi-family housing, the City will amend the Code to remove the CUP for multi-family developments up to 33 du/ac.
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 byright procedures for processing low-barrier 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.
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.
Non-Governmental Constraints
In terms of non-governmental constraints, the availability of land and land costs will remain a constraint to affordable housing, and programs to use publicly-owned lands—such as City-owned land—can make a difference. The cost of construction and construction materials is also a constraint, and to the degree that the City can subsidize affordable housing projects with available funds dedicated to housing, this too can make a difference. "You have a water allocation
from the Water Management
District. You also have a record
from Cal-Am of uses, and all
these absentee houses are not
using any water.
So, that difference could be
used for affordable housing."
May 24, 2023 Ad Hoc Committee
Community Meeting Attendee
Attachment 5 Attachment 2
Chapter 3.0 – Overview of Housing Needs and Constraints 3-18 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 This side intentionally left blank.
Attachment 5 Attachment 2
Chapter 4.0 – Housing Site Inventory 4-1 EMC Planning Group Carmel-by-the-Sea-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023
4.0 Housing SiteV Inventory
4.1 Introduction
The Association of Monterey Bay Area Governments’ forecasts that the two-county Monterey Bay Area will add 32,867 new households between 2020 and 20451. For the eight-year time frame covered by this Housing Element Update, HCD has identified the region’s housing need as 33,274 units. The total number of housing units assigned by HCD is separated into four income categories that cover housing types for all income levels, from very low-income households to market rate housing. This calculation, known as the Regional Housing Needs Allocation (RHNA), is based on population projections produced by the California Department of Finance 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.
4.2 Regional Housing Needs Allocation
AMBAG adopted its Final 6th Cycle Regional Housing Needs Allocation Plan 2023-2031 in October 2022.
Carmel-by-the-Sea-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 4-1 shows Carmel-by-the-Sea-by-the-Sea’s RHNA for the planning period 2023 – 2031. 1 Final 2022 Regional Growth Forecast, AMBAG, November 18, 2020 Attachment 5 Attachment 2
Chapter 4.0 – Housing Site Inventory 4-2 EMC Planning Group Carmel-by-the-Sea-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Table 4-1 Carmel-by-the-Sea-by-the-Sea’s Regional Housing Needs Allocation 2023–2031 Income Group
Carmel-bythe-SeaUnits
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
(<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.
4.3 Site Inventory
The purpose of the sites inventory is to identify and analyze specific sites that are available and suitable for residential development from 2023-2031 in order to accommodate Carmel-by-the-Seaby-the-Sea’s remaining RHNA of 349 units. The City doesn’t build the housing but creates the programs and policies within its control to plan for where housing can be developed and how many units can be on the sites. This inventory only lists sites that are likely to be developed during this housing element period.
The City has identified 35 sites capable of accommodating 283 housing units. In addition, the City has developed a program of new incentives for the 46 hotel owners in the community to house lower-income employees in existing hotel rooms. Finally, the City has an active accessory dwelling unit program that is capable of providing additional lower-income housing. Together, these housing resources have the potential to accommodate 401 housing units across all income levels (approximately 115 percent of Carmel-by-the-Sea’s RHNA). Table 4-2 provides an overview of Carmel-by-the-Sea’s housing resources for the 2023-2031 planning period. For a detailed analysis of Carmel-by-the-Sea’s housing resources, please see Appendix C.
Attachment 5 Attachment 2
Chapter 4.0 – Housing Site Inventory 4-3 EMC Planning Group Carmel-by-the-Sea-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Table 4-2 Overview of Housing Sites Inventory Sites
Housing
Resource
Very LowIncome
Capacity
Lower
Income
Capacity
Moderate
Income
Capacity
Above
ModerateIncome Capacity
Total
Capacity
Total 115 84 75 127 401
RHNA* 113 74 44 118 349
Difference 2 10 31 9 52
Percent of RHNA 101% 113% 170% 108% 115%
SOURCE: City of Carmel-by-the-Sea-by-the-Sea; EMC Planning Group Inc.
NOTE: *Adjusted as shown in Table 4-2, above.
4.4 Summary and Conclusions
The vacant and underutilized sites, converted hotel rooms, and accessory dwelling units identified in this report are sufficient to accommodate approximately 115 percent of the City of Carmel-by-theSea-by-the-Sea’s Regional Housing Needs Allocation for the 6th Cycle planning period. This 15 percent “cushion” 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 “cushion” 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 demolished or remodeled to accommodate new housing.
Nonetheless, for communities like Carmel-by-the-Sea-by-the-Sea that are largely built out and surrounded on all sides by other communities, redevelopment and densification is the only practical solution to providing its share of housing for the Monterey Bay Area RHNA. By its nature, such redevelopment is more costly and more time consuming than building new units on vacant land. To offset these constraints, City Officials have proposed a “Housing Priority Overlay Zone” to facilitate redevelopment and/or intensification of uses on sites included in the City’s housing sites inventory (see Table C-3, Appendix C). This overlay zone allows for housing development by right (objective design and development standards apply), minimum density, and otherwise overrides the development standards of the base district to ensure that the number and types of units identified in the housing sites inventory can be achieved.
Attachment 5 Attachment 2
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Attachment 5 Attachment 2
Chapter 5.0 – Energy Conservation 5-1 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023
5.0 Energy Conservation and Reduction of
Greenhouse Gas Emissions
5.1 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.
5.2 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 which identify goals, policies and actions that seek to contribute to increasing resilience to climate change in Carmel. The CAP includes a policy to minimize health impacts of climate change that includes the following actions that address energy conservation and reducing 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 triggered by a climate event. 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, including heat pumps, along with on-site energy generation and battery storage to provide a 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 that addresses 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 5 Attachment 2
Chapter 5.0 – Energy Conservation 5-2 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 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 and 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. CCCE 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 5-1, 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.
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Chapter 5.0 – Energy Conservation 5-3 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Table 5-1 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 Water Management District
The Monterey Peninsula Water Management District was formed on June 6, 1978 under the enabling legislation found in West’s California Water Code. District functions include:
Augmenting the water supply through integrated management of ground and surface water; Promote water conservation;
Promote water reuse and reclamation of storm and wastewater; and Foster the scenic values, environmental qualities, native vegetation, fish and wildlife, and recreation on the Monterey Peninsula and in the Carmel River Basin.
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Chapter 5.0 – Energy Conservation 5-4 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 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 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 the 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 Controller — $100 with four stations. Additional $10 available per station up to twenty (20) stations;
One or more Soil Moisture Sensor(s) on a conventional automatic Irrigation System — $25 per sensor;
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Chapter 5.0 – Energy Conservation 5-5 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 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 aimed at assisting low-income households that pay a high portion of their income to meet their 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;
Education on basic energy efficiency practices and instruction on the proper use and maintenance of installed weatherization measures; and
Energy budget counseling.
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Chapter 5.0 – Energy Conservation 5-6 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 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 efficiency improvements; and
Available Fall 2023 through 2032.
Home Renewable Power Tax Credits
30 percent of project cost for installation of solar panels, battery storage, and any other renewable power source on property;
Example: $19,000 to install rooftop solar panels generates $5,700 tax credit; and Retroactive to 2022, full credit sunsets in 2032; then 22 percent credit expires in 2035.
The Property Assessed Clean Energy (PACE) Financing program enables property owners to secure upfront funding for energy efficiency, water efficiency, renewable energy, and seismic improvement projects. These improvements are repaid through an up to 20-year special line item on their property taxes instead of traditional consumer credit.
The City includes a program in the 6th cycle Housing Element to promote energy conservation and green building and to actively disseminate information about State and Federal programs.
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Housing Needs & Fair Housing Report A
APPENDIX
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Table of Contents
APPENDIX A HOUSING NEEDS & FAIR HOUSING REPORT ........................................... A-1 A.1 Introduction ........................................................................................................................... A-1 A.2 Population, Employment, and Household Characteristics ............................................. A-7 A.3 Disproportionate Housing Needs ..................................................................................... A-30 A.4 Special Needs Groups ......................................................................................................... A-39 A.5 Access to Opportunity ........................................................................................................ A-50 A.6 Housing Stock Characteristics ........................................................................................... A-58 A.7 Fair Housing Enforcement and Outreach Capacity ....................................................... A-68 A.8 Fair Housing Recommendations ....................................................................................... A-74 A.9 Conclusion ............................................................................................................................ A-77 Tables
Table A-1 Population Growth Forecast by Jurisdiction, 2015-2045 ................................... A-7 Table A-2 Population Age Distribution by Jurisdiction, 2019 .............................................. A-9 Table A-3 Population by Race by Jurisdiction, 2019 ............................................................ A-11 Table A-4 Employment Growth Forecast by Jurisdiction, 2015-2045 ............................. A-18 Table A-5 Employment by Sector, Carmel-by-the-Sea, 2010 and 2019 ............................ A-19 Table A-6 Unemployment Rate, Carmel-by-the-Sea, 2019 ................................................. A-21 Table A-7 Regional Housing Needs Allocation .................................................................... A-22 Table A-8 Occupations by Mean Salary, Monterey County, 2019 ..................................... A-22 Table A-9 Housing Forecast by Jurisdiction, 2015-2045 ..................................................... A-24 Table A-10 Households by Income Category, Carmel-by-the-Sea, 2019 ............................ A-27 Table A-11 Extremely Low-Income Households, Carmel-by-the-Sea, 2015-2019 ........... A-40 Table A-12 Disability Status by Age, Carmel-by-the-Sea, 2021 ............................................ A-44 Table A-13 Population with Developmental Disabilities by Age, Carmel-by-the-Sea, 2021 .......................................................................................................................... A-45 Attachment 5 Attachment 2
Table A-14 Population with Developmental Disabilities by Residence, Carmel-by-the-Sea, 2021 ........................................................................................ A-45 Table A-15 Homeless Population by Jurisdiction, 2017-2022 .............................................. A-49 Table A-16 Homelessness by Household Type and Shelter Status, Monterey County, 2019 .......................................................................................................................... A-49 Table A-17 Housing Unit Growth Trends by Jurisdiction, 2010-2019 ............................... A-58 Table A-18 Housing Units by Type by Jurisdiction, 2019 ..................................................... A-59 Table A-19 Housing Units by Type and Tenure, Carmel-by-the-Sea, 2019 ....................... A-60 Table A-20 Household Size by Tenure by Jurisdiction, 2019 ............................................... A-60 Table A-21 Vacant Housing Units by Type, Carmel-by-the-Sea, 2019 ............................... A-63 Table A-22 Housing Permits by Income Group, Carmel-by-the-Sea, 2015-2021 ............. A-63 Table A-23 Median Home Value by Jurisdiction, 2019-2022 ............................................... A-66 Table A-24 Average Rent by Number of Bedrooms, Carmel-by-the-Sea, 2023 ................ A-67 Table A-25 Housing Affordability, Carmel-by-the-Sea, 2022 ............................................... A-68 Figures
Figure A-1 Major Public and Legal Actions that Influence Fair Access to Housing ..........A-5 Figure A-2 Population Growth, Carmel-by-the-Sea, 2010-2019 ............................................A-8 Figure A-3 Population Distribution by Age, Carmel-by-the-Sea, 2010-2019 .......................A-9 Figure A-4 Population by Race Compared to the County, 2019 ......................................... A-10 Figure A-5 Population by Race, Carmel-by-the-Sea, 2010-2019 ......................................... A-12 Figure A-6 Diversity Index, Carmel-by-the-Sea, 2018 .......................................................... A-13 Figure A-7 R/ECAP by Census Tract, Carmel-by-the-Sea, 2009-2013 ............................. A-15 Figure A-8 RCAAs by Census Tract, Carmel-by-the-Sea, 2015-2019 ................................ A-16 Figure A-9 Percent Non-White by Block Group, Carmel-by-the-Sea, 2018 ..................... A-17 Figure A-10 Worker Earnings by Place of Residence & Place of Work, Carmel-by-the-Sea, 2019 ........................................................................................ A-20 Figure A-11 Household by Type by Jurisdiction, 2019 ........................................................... A-24 Figure A-12 Changes in Household Type, Carmel-by-the-Sea, 2010-2019.......................... A-25 Attachment 5 Attachment 2
Figure A-13 Households by Household Size by Jurisdiction, 2019 ...................................... A-26 Figure A-14 Median Household Income by Jurisdiction, 2019 ............................................. A-27 Figure A-15 Median Income by Block Group, Carmel-by-the-Sea, 2015-2019 .................. A-28 Figure A-16 Income by Category, Carmel-by-the-Sea, 2019 .................................................. A-29 Figure A-17 Housing Tenure by Jurisdiction, 2019 ................................................................. A-30 Figure A-18 Housing Problems by Tenure, Carmel-by-the-Sea, 2015-2019 ........................ A-31 Figure A-19 Severe Housing Problems by Tenure, Carmel-by-the-Sea, 2015-2019 ........... A-32 Figure A-20 Overcrowding by Severity by Jurisdiction, 2019 ................................................ A-33 Figure A-21 Overcrowding by Tenure and Severity, Carmel-by-the-Sea, 2019 .................. A-33 Figure A-22 Overcrowded Households, Carmel-by-the-Sea .................................................. A-34 Figure A-23 Cost Burden Severity by Jurisdiction, 2015-2019 .............................................. A-35 Figure A-24 Cost Burden by Tenure, Carmel-by-the-Sea, 2015-2019 .................................. A-36 Figure A-25 Cost Burden by Home Owners, Carmel-by-the-Sea, 2015-2019 ..................... A-37 Figure A-26 Cost Burden by Renter Households, Carmel-by-the-Sea, 2015-2019 ............. A-38 Figure A-27 Percent Living Below the Poverty Line by Race and Ethnicity, Carmel-by-the-Sea, 2019 ........................................................................................ A-41 Figure A-28 Senior Population by Jurisdiction, 2019 .............................................................. A-42 Figure A-29 Senior Housing by Tenure, Carmel-by-the-Sea, 2019 ....................................... A-42 Figure A-30 Senior Households by Income, Carmel-by-the-Sea, 2019 ................................ A-43 Figure A-31 Population by Disability Status by Jurisdiction, 2021 ........................................ A-44 Figure A-32 Households by Size and Tenure, Carmel-by-the-Sea, 2019 .............................. A-46 Figure A-33 Single-Parent Households by Jurisdiction, 2019 ................................................ A-47 Figure A-34 Hired Farm Labor, Monterey County, 2002-2017 ............................................. A-48 Figure A-35 TCAC Opportunity Composite Score, Carmel-by-the-Sea, 2022 ................... A-51 Figure A-36 TCAC Opportunity Economic Score, Carmel-by-the-Sea, 2022 .................... A-52 Figure A-37 TCAC Opportunity Education Score, Carmel-by-the-Sea, 2022 .................... A-54 Figure A-38 TCAC Opportunity Environmental Score, Carmel-by-the-Sea, 2022 ............ A-55 Figure A-39 Social Vulnerability Index, Carmel-by-the-Sea, 2018 ........................................ A-57 Attachment 5 Attachment 2
Figure A-40 Housing by Type in Carmel-by-the-Sea, 2010-2019 .......................................... A-59 Figure A-41 Household Tenure by Race, Carmel-by-the-Sea, 2019 ..................................... A-61 Figure A-42 Vacancy Rates by Jurisdiction, 2019 .................................................................... A-61 Figure A-43 Vacancy Trends, Carmel-by-the-Sea, 2010-2019 ............................................... A-62 Figure A-44 Displacement Risk, Carmel-by-the-Sea, 2022 ..................................................... A-65 Figure A-45 Housing Stock by Age, Carmel-by-the-Sea, 2019 .............................................. A-66 Figure A-46 FHEO Cases Total, Monterey County, 2020 ..................................................... A-71 Figure A-47 FHEO Cases, Disability Bias, Monterey County, 2020 .................................... A-72 Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-1 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Appendix A
Housing Needs & Fair Housing Report
A.1 Introduction
The following report provides both the City of Carmel-by-the-Sea Housing Needs Assessment and Fair Housing Assessment. This analysis primarily utilizes U.S. Census Bureau American Community Survey (ACS) 5-Year Estimate data and California Department of Housing and Community Development (HCD) data. It is important to note, there are discrepancies between U.S. Census Bureau ACS data and HCD data, specifically when analyzing Carmel-by-the-Sea at a regional scale.
Housing Needs Assessment
The Housing Needs Assessment for the City of Carmel-by-the-Sea provides and in-depth analysis of the City’s housing and population conditions including population, employment, economics, household and housing stock characteristics. This assessment develops context for the City’s goals, programs, and policies for the 6th Cycle Housing Element.
Fair Housing Assessment
In 2018, Governor Brown signed Assembly Bill (AB 686) requiring all public agencies in the state to affirmatively requirements went into effect on January 1, 2019 and required all public agencies to “administer programs and activities relating to housing further fair housing (AFFH) beginning January 1, 2019.1
The new and community development in a manner that
affirmatively furthers fair housing, and take no action inconsistent with this obligation”2 AB 686
also made changes to Housing Element Law to incorporate requirements to AFFH as part of the housing element and general plan to include an analysis of fair housing outreach and capacity, integration and segregation, access to opportunity, disparate housing needs, and current fair housing practices.
1 Public agencies receiving funding from the U.S. Department of Housing and Urban Development (HUD) are also required to demonstrate their commitment to AFFH. The federal obligation stems from the fair housing component of the federal Civil Rights Act mandating federal fund recipients to take “meaningful actions” to address segregation and related barriers to fair housing choice. 2 California Department of Housing and Community Development Guidance, 2021, page 9.
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Appendix A – Housing Needs & Fair Housing Report A-2 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Affirmatively Furthering Fair Housing
“Affirmatively furthering fair housing” means taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. Specifically, affirmatively furthering fair housing means taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws.
The duty to affirmatively further fair housing extends to all of a public agency’s activities and programs relating to housing and community development. (Gov. Code, § 8899.50, subd. (a)(1).)”
SOURCE: California Department of Housing and Community Development Guidance, 2021, page 14.
History of segregation in the region
The United States’ oldest cities have a history of
mandating segregated living patterns—and cities south
of Monterey Bay are no exception. Monterey County
and the Monterey Bay region have an interesting past,
as far as the fight to end racial segregation is
concerned. Some of the segregation in the Monterey
Bay area can be attributed to historically discriminatory practices, such as: redlining and discriminatory
mortgage approvals—as well as “structural inequities”
in society, and “self-segregation” (i.e., preferences to live near similar people).
Kent Seavey’s 2007 book Carmel: A History in
Architecture details the history of Carmel-by-the-Sea and adjacent cities, from its early settlement by Spanish
explorers to its marketing as a “seaside resort for
Catholics” in the 1880s to the development of the
City’s more contemporary history and architectural
design. Similar to other jurisdictions within Monterey
County, Carmel-by-the-Sea does not have a high level of diversity.
Ann Marie Shambaugh, in a contribution to a “Current in Carmel” news article, further states:
“…for much of Carmel’s Black community, which makes up less than 3 percent of the This history of segregation
in the region is important
not only to understand how
residential settlement
patterns came about—but,
more importantly, to
explain differences in
housing opportunity among
residents today.
In sum, not all residents had
the ability to build housing
wealth or achieve economic
opportunity.
This historically unequal
playing field in part
determines why residents
have different housing
needs today.
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Appendix A – Housing Needs & Fair Housing Report A-3 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 population, choosing to live here leads to certain burdens not faced — or often even realized — by the city’s 84-percent white majority. Frequent misunderstandings. Being stereotyped.
Battle fatigue. Not likely to help any city achieve a top ranking, these are scenarios many of Carmel’s Black residents often face in their hometown, a place some moved to despite advice from friends against it”.3
In addition to historical discriminatory practices that embedded segregation into living patterns throughout the Monterey Bay area, it’s also necessary to recognize the historical impacts of colonization and genocide on Indigenous populations and how the effects of those atrocities are still being felt today. Historically, the Monterey Peninsula had been home to indigenous populations for more than 10,000 years. The original inhabitants of present-day Monterey County were the Ohlone (Costanoan), Salinan, and Esselen tribes who have “…lived in communities related by language, family, and custom.”4
However, “[d]ue to the devastating
policies and practices of a succession of explorers, missionaries, settlers, and various levels of government over the centuries since European expansion, these tribes have lost the vast majority of their population as well as their land.”5
The lasting influence of these policies and
practices have contributed directly to the disparate housing and economic outcomes collectively experienced by Native populations today.6
The Monterey County Weekly news outlet highlights the past and present effects of restrictive covenants, along with other housing issues such as “the lack of affordable housing, generational wealth inequities and zoning issues,” as contributing factors to the higher levels of segregation within the county.7
Carmel-by-the-Sea’s General Plan and Municipal Code historically emphasized single-family residential patterns and consequently, the City offers a limited variety of housing types with 87 percent single family detached units. Historically, this type of development contributed to segregation patterns, including in Carmel-by-the-Sea, due to, among other factors, the higher purchase costs that accompany single-family homes. Financing for single-family properties favored educated higher income earners and as a result purchasing property in the City remained out of reach for many lower income households and lead to the demographics seen in the City today.
3 https://www.youarecurrent.com/2020/10/13/the-best-place-for-all-to-live-black-carmel-residents-speak-out-onfrustrations-building-more-inclusive-community/ 4 From Racial Beachhead: Diversity and Democracy in a Military Town, by Carol Lynn McKibben, 2012, Stanford University Press.
5 https://www.smcoe.org/for-communities/indigenous-people-of-san-mateo-county.html 6 https://www.americanprogress.org/article/systemic-inequality-displacement-exclusion-segregation/ 7 A new group sets out to explore the history of racist housing covenants in Monterey County. | News | montereycountyweekly.com
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Appendix A – Housing Needs & Fair Housing Report A-4 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Though Carmel-by-the-Sea’s population demographics are not as diverse as other jurisdictions within Monterey County and restrictive covenants were not enacted specifically in the City, enacting policies and programs that promote AFFH and highlight the community’s assets could attract individuals to the area, and encourage those that work in the City to live there as well.
The timeline of major Federal Acts and court decisions related to fair housing choice and zoning and land use appears on the following page.
As shown in the timeline, exclusive zoning practices were common in the early 1900s. Courts struck down only the most discriminatory and allowed those that would be considered today to have a “disparate impact” on classes protected by the Fair Housing Act. For example, the 1926 case Village of Euclid v. Amber Realty Co. (272 U.S. 365) supported the segregation of residential, business, and industrial uses, justifying separation by characterizing apartment buildings as “mere parasite(s)” with the potential to “utterly destroy” the character and desirability of neighborhoods. At that time, multifamily apartments were the only housing options for people of color, including immigrants.
The Federal Fair Housing Act was not enacted until nearly 60 years after the first racial zoning ordinances appeared in U.S. cities. This coincided with a shift away from federal control over low-income housing toward locally-tailored approaches (block grants) and market-oriented choice (Section 8 subsidies)—the latter of which is only effective when adequate affordable rental units are available.
Figure A-1 below provides a timeline of major legal and public actions that have influenced fair access to housing beginning in 1910.
Carmel-by-the-Sea has been and will continue to be
enriched and enhanced in its cultural fabric, economic
prosperity and personal understanding of others by
having a principled and respectful community standard
towards all people,
July 5, 2021
Proclamation of the City
Council of Carmel-By-The-Sea
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Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-1 Major Public and Legal Actions that Influence Fair Access to HousingSOURCE: Root Policy Research Attachment 5
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Appendix A – Housing Needs & Fair Housing Report A-7 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Overview of Carmel-by-the-Sea
Over the past 20 years, Carmel-by-the-Sea has experienced growth in both population and jobs, which means more housing of various types and sizes is needed to ensure that residents across all income levels, ages, and abilities have a place to call home. While the number of people drawn to the City has steadily increased, housing production has stalled, contributing to the housing shortage that communities are experiencing today. In many cities within Monterey County, this has resulted in residents being priced out, increased traffic congestion caused by longer commutes, and fewer people across incomes being able to purchase homes or meet surging rents. Additionally, with increasing population and economic pressures comes the space for inequitable housing practices.
The following Housing Needs and Fair Housing Assessment develops context for the goals, programs, and policies that Carmel-by-the-Sea will implement to address inequities in the 6th Cycle Housing Element.
A.2 Population, Employment, and Household Characteristics Population characteristics impact current and future housing needs in a community. A city’s population growth, age composition and race and ethnicity composition determine the type and extent of housing needed. The following section provides analysis of population characteristics and local trends that affect housing demand in Carmel-by-the-Sea.
Population Growth
Table A-1 shows the population projections through 2045 according to the Association of Monterey Bay Area Governments (AMBAG) 2022 Regional Growth Forecast. In Carmel-by-the-Sea, the population is forecast to grow approximately 3 percent between 2015 to 2045. This reflects 11 percent less than the County, 1 percent more than Pacific Grove, and 56 percent less than Del Rey Oaks. Population growth forecasts provide critical insight to the future demands of communities in terms of housing needs, employment, and more.
Table A-1 Population Growth Forecast by Jurisdiction, 2015-2045 Jurisdictions Population Change 2015-
2045
2015 2020 2025* 2030* 2035* 2040* 2045* Numeric %
Monterey County 430,310 441,143 452,761 467,068 476,028 483,884 491,443 61,133 14% Carmel-by-theSea 3,854 3,949 3,946 3,954 3,964 3,974 3,984 130 3% Del Rey Oaks 1,663 1,662 1,693 1,734 1,859 2,330 2,650 987 59% Pacific Grove 15,460 15,265 15,290 15,395 15,530 15,676 15,817 357 2% SOURCE: AMBAG Regional Growth Forecast, 2022
NOTE: *Projected growth values
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Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-2 illustrates population growth in Carmel-by-the-Sea between 2010-2019. Carmel-by-theSea’s population increased by 2.8 percent from 2010 to 2019. The City’s population steadily increased from 2010 to 2017 before experiencing a sharp decline through 2019.
Figure A-2 Population Growth, Carmel-by-the-Sea, 2010-2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2010-2019 Age Characteristics
A community’s housing needs are partly determined by
preferences of age groups and household types (age,
family/non-family, presence of children, female-headed, etc.). When seeking housing, households may prioritize
factors such as size, accessibility, and price. For
instance, younger and middle-aged households may
seek homes that can accommodate a growing
household size, whereas older adults may seek to
downsize to an apartment with assistive care services or a smaller more affordable single-family home. Disabled
persons may seek homes that are accessible and include
universal design or visitability features. Overall, the life stages of a population determine the housing stock that is needed in a community.
In 2010, Carmel-by-the-Sea’s predominant age group was individuals between 65 and 74 years of age (19 percent). Figure A-3 shows that between 2010 and 2019, the general age of the population has been slowly increasing, with the most populous age groups in the City being individuals between 55 3600
3650
3700
3750
3800
3850
3900
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Population
Year
“When I grew up, this was
a town of children. All the
property owners were
parents. All the
employees in the stores
were parents. So,
everything in this town
was about children, and
we don't have children
anymore.”
May 24, 2023 Ad Hoc
Committee Community
Meeting Attendee
Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-9 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 and 84 years of age. The City’s median age has changed little since 2010, ranging from 56 in 2010, 54 in 2015, and 59 in 2019. Overall, the City’s aging trend suggests a demand for housing geared toward middle-aged to senior groups.
Figure A-3 Population Distribution by Age, Carmel-by-the-Sea, 2010-2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2010, 2015, 2019 Table A-2 shows population age distribution revealing that Carmel-by-the-Sea’s most populous age group in 2019 was individuals 65 to 74 years of age (21 percent). Compared to the County and neighboring cities, Carmel-by-the-Sea has the largest 55 to 85+ age group (43 percent) followed by Pacific Grove (27 percent), Del Rey Oaks (23 percent), and the County (13 percent). Since 2010, Carmel-by-the-Sea’s smallest age demographic are those aged 0-14.
Table A-2 Population Age Distribution by Jurisdiction, 2019 Jurisdiction Population Age
0-4 5-14 15-24 25-34 35-44 45-54 55-64 65-74 75-84 85+
Monterey County 7.3% 14.8% 14.3% 14.4% 13.0% 11.8% 11.1% 7.7% 3.6% 1.9% Carmel-by-the-Sea 1.4% 9.7% 1.4% 8.1% 10.6% 11.4% 14.3% 21.3% 14.9% 7% Del Rey Oaks 5.7% 8.3% 5.7% 12.6% 12.5% 13% 18.9% 15.9% 4.4% 2.9% Pacific Grove 3.5% 12.2% 8.5% 10.0% 10.4% 13.3% 14.7% 16.5% 6.6% 4.3% SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
Age 0-4 Age 5-14 Age 15-24 Age 25-34 Age 35-44 Age 45-54 Age 55-64 Age 65-74 Age 75-84 Age 85+ 2010 3% 8% 4% 8% 10% 17% 12% 19% 12% 5%
2015 6% 11% 6% 6% 11% 11% 16% 20% 8% 6%
2019 1% 10% 1% 8% 11% 11% 14% 21% 15% 7%
0%
5%
10%
15%
20%
25%
Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-10 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Race and Ethnicity Characteristics
Understanding the racial and ethnic composition of a city is vital to ensuring equal opportunity to housing for all groups, inclusive of cultural norms and preferences. An in-depth analysis of race and ethnicity is provided in the Fair Housing Report in Appendix A. Figure A-4 illustrates the racial and ethnic composition of Carmel-by-the-Sea compared to the County.
Figure A-4 Population by Race Compared to the County, 2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
When comparing the City and the County, non-Hispanic White and Hispanic or Latino populations are the most represented; however, the County presents more diversity than Carmel-by-the-Sea.
Non-Hispanic White individuals comprise 87 percent of Carmel-by-the-Sea’s population followed by Hispanic or Latino (8 percent) and Asian populations (5 percent). In contrast, the County’s largest population is Hispanic or Latino individuals (60 percent) followed by non-Hispanic White (31 percent). The City has no populations identifying as American Indian or Alaska Native or Native Hawaiian or Other Pacific Islander. Black or African American non-Hispanic individuals represent less than 1 percent of the City’s population.
Table A-3 provides a comparison of racial and ethnic composition by jurisdiction. In 2019, Carmelby-the-Sea (87 percent) and the neighboring City of Pacific Grove (83 percent) had the largest nonHispanic White populations compared to Del Rey Oaks (75.5 percent) and the County (30.8 percent). Compared to surrounding cities and the County, Carmel-by-the-Sea had the lowest Asian population (5 percent). Overall, Carmel-by-the-Sea is the least diverse when compared to the County and the neighboring cities of Del Rey Oaks and Pacific Grove.
American
Indian or
Alaska
Native
Asian
Black or
African
American,
NonHispanic
White,
NonHispanic
Some
other race
Hispanic
or Latino
Native
Hawaiian
and Other
Pacific
Islander
Carmel-by-the-Sea 0.0% 5.2% 0.1% 86.5% 0.0% 8.2% 0.0%
Monterey County 0.2% 5.5% 2.5% 30.8% 0.1% 60.3% 0.5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
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Appendix A – Housing Needs & Fair Housing Report A-11 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Table A-3 Population by Race by Jurisdiction, 2019
Jurisdiction
American
Indian or
Alaska
Native
Asian,
alone
Black or
African
American,
NonHispanic
White, NonHispanic
Some
Other
Race
Hispanic
or Latino
Native
Hawaiian
and Other
Pacific
Islander
Monterey County 0.2% 5.5% 2.5% 30.8% 0.1% 60.3% 0.5%
Carmel-by-the-Sea 0.0% 5.2% 0.1% 86.5% 0.0% 8.2% 0.0%
Del Rey Oaks 0.0% 7.1% 2.5% 75.5% 0.0% 13% 0.3%
Pacific Grove 0.2% 5.8% 1.0% 82.8% 0.0% 10.3% 0.1%
SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
When analyzing race and ethnicity in a city, it’s important to understand how demographics have changed over time. Figure A-5 illustrates changes in population by race between 2010-2019 in Carmel-by-the-Sea. During this time frame, Carmel-by-the-Sea’s population composition experienced fluctuations in nearly all populations, and by 2019 saw a decline in each population except non-Hispanic White. In 2015, the non-Hispanic White population experienced a 2 percent decrease in size, while the Asian and Hispanic or Latino populations increased 2 percent and 3 percent, respectively. In 2019, Carmel-by-the-Sea experienced a 7 percent increase in the nonHispanic White population, and a decline in both the Asian and Hispanic or Latino populations by 4 percent and 3 percent, respectively. Since 2015, population levels have remained less than 1 percent for Black or African American, American Indian or Alaska Native, Native Hawaiian and Other Pacific Islander populations in Carmel-by-the-Sea.
Demographic characteristics such as the racial and ethnic composition of a city are necessary to inform the housing needs of a community inclusive of cultural norms and preferences.
Diversity Index
The Diversity Index measures the degree to which the five major ethnic populations (non-Hispanic White, non-Hispanic Black, Asian and Pacific Islander, Hispanic, and Two or more races) are evenly distributed across a geographic area. The index ranges from 0 to 1 – where 0 is low diversity, meaning only one group is present and 1 is high diversity, meaning an equal proportion of all five groups is present).
Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-12 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-5 Population by Race, Carmel-by-the-Sea, 2010-2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2010, 2015, 2019 Integration and Segregation
“Integration generally means a condition in which there is not a high concentration of persons of a particular race, color, religion, sex, familial status, national origin, or having a disability or a particular type of disability when compared to a broader geographic area.
Segregation generally means a condition in which there is a high concentration of persons of a particular race, color, religion, sex, familial status, national origin, or having a disability or a type of disability in a particular geographic area when compared to a broader geographic area.” SOURCE: California Department of Housing and Community Development Guidance, 2021, page 31.
Figure A-6 below depicts the level of diversity within the City. Carmel-by-the-Sea, along with neighboring jurisdictions have the lowest levels of diversity within the region. Carmel-by-the-Sea has a low level of diversity with 86.5 percent of the population identifying as non-Hispanic White.
Racially or Ethnically Concentrated Areas of Poverty and Affluence A Racially Concentrated Area of Poverty or an Ethnically Concentrated Area of Poverty (R/ECAP) and a Racially Concentrated Area of Affluence (RCAAs) represent opposing ends of the segregation spectrum from racially or ethnically segregated areas with high poverty rates to affluent predominantly White neighborhoods. Historically, HUD has paid particular attention to R/ECAPs as a focus of policy and obligations to AFFH. Recent research out of the University of Minnesota Humphrey School of Public Affairs argues for the inclusion of RCAAs to acknowledge current and past policies that created and perpetuate these areas of high opportunity and exclusion.8 8 Goetz, E. G., Damiano, A., & Williams, R. A. (2019). Racially Concentrated Areas of Affluence: A Preliminary Investigation. Cityscape: A Journal of Policy Development and Research, 21(1), 99–124 American
Indian or
Alaska Native
Asian
Black or
African
American,
Non-Hispanic
White, NonHispanicSome other
race
Hispanic or
Latino
Native
Hawaiian and
Other Pacific
Islander
2010 0.0% 8.6% 1.4% 81.5% 0.0% 8.5% 0.0%
2015 0.3% 9.0% 0.0% 79.6% 0.0% 11.1% 0.0%
2019 0.0% 5.2% 0.1% 86.5% 0.0% 8.2% 0.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
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Appendix A – Housing Needs & Fair Housing Report A-13 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-6 Diversity Index, Carmel-by-the-Sea, 2018
SOURCE: California Department of Housing and Community Development, AFFH Data Viewer Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-14 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 R/ECAPs
HCD and HUD’s definition of a Racially/Ethnically Concentrated Area of Poverty is:
A census tract that has a non-White population of 50 percent or more (majority-minority) or, for non-urban areas, 20 percent, AND a poverty rate of 40 percent or more; OR A census tract that has a non-white population of 50 percent or more (majority-minority) AND the poverty rate is three times the average tract poverty rate for the County, whichever is lower.
SOURCE: California Department of Housing and Community Development Guidance, 2021.
It is important to note that R/ECAPs and RCAAs are not areas of focus because of racial and ethnic concentrations alone. This study recognizes that racial and ethnic clusters can be a part of fair housing choice if they occur in a non-discriminatory market. Rather, R/ECAPs are meant to identify areas where residents may have historically faced discrimination and continue to be challenged by limited economic opportunity, and conversely, RCAAs are meant to identify areas of particular advantage and exclusion.
RCAAs
HCD and HUD’s definition of an RCAA is a census tract 1) with a percentage of its total White population that is 1.25 times higher than the average percentage of the COG region’s White population; and 2) has a median income that is 2 times higher than the COG Area Median Income (AMI). Generally, these are understood to be neighborhoods in which there are both high concentrations of non-Hispanic White households and high household income rates.
SOURCE: California Department of Housing and Community Development Guidance, 2023 As can be seen in the Figure A-7 and Figure A-8, the City of Carmel-by-the-Sea is not considered a R/ECAP; nor, is the City considered an RCAA. As highlighted previously, Carmel-by-the-Sea does not have a majority-minority population and thus cannot be labelled as a R/ECAP. Figure A-9 shows that less than or equal to 20 percent of the City’s population is non-White. Though Carmelby-the-Sea’s percentage of exclusively White population and AMI are higher than the county-wide average, the median income in the City is not high enough for the jurisdiction to be considered an RCAA. This could be a reflection of the high vacancy rate (over 50%) which could be explained by the high rate of second home (seasonal use) homeownership in the City.
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Appendix A – Housing Needs & Fair Housing Report A-15 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-7 R/ECAP by Census Tract, Carmel-by-the-Sea, 2009-2013 SOURCE: California Department of Housing and Community Development, AFFH Data Viewer Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-16 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-8 RCAAs by Census Tract, Carmel-by-the-Sea, 2015-2019 SOURCE: California Department of Housing and Community Development, AFFH Data Viewer Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-17 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-9 Percent Non-White by Block Group, Carmel-by-the-Sea, 2018 SOURCE: California Department of Housing and Community Development, AFFH Data Viewer Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-18 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Employment
Employment characteristics can significantly impact the housing needs and trends of a community from income and wage scale to job location and industry. Employment and income are determinates of a population’s ability to purchase housing including the type of housing and size, both of which can induce negative effects such as overpayment and overcrowding. Table A-4 summarizes projected employment growth for Carmel-by-the-Sea, the County, and neighboring cities from 2015- 2045.
Table A-4 Employment Growth Forecast by Jurisdiction, 2015-2045 Jurisdictions Population Change
2015 - 2045
2015 2020 2025* 2030 2035* 2040* 2045* Numeric Percent
Monterey County 225,268 243,015 245,054 249,613 253,918 258,553 263,437 38,169 17% Carmel-by-the-Sea 3,353 3,566 3,593 3,674 3,752 3,833 3,915 562 17% Del Rey Oaks 705 748 753 774 794 815 834 129 18%
Pacific Grove 7,470 8,016 8,061 8,152 8,244 8,343 8,445 975 13% SOURCE: AMBAG Regional Growth Forecast, 2022
NOTE: *Projected growth values
According to the AMBAG 2022 Regional Growth Forecast, Carmel-by-the-Sea was projected to experience an employment growth of 17 percent (562 new jobs) between 2015-2045. This projected employment growth mirrors the County (17 percent) and is 4 percent higher than Pacific Grove (13 percent), but reflects 1 percent lower than Del Rey Oaks (18 percent). This projected increase in job growth presents an opportunity for cities to construct additional housing options for the existing and future workforce.
Table A-5 shows 2010 and 2019 employment data for Carmel-by-the-Sea by sector. Key findings in employment data include the following:
Education services, healthcare, and social assistance industries were the largest employers of Carmel-by-the-Sea (28 percent) in both 2010 and 2019, followed by arts, entertainment, recreation, accommodation, and food services (19 percent and 15 percent, respectively); Information industries experienced the greatest increase between 2010 and 2019 (585 percent), followed by construction (276 percent);
Five sectors experienced drastic declines in employment between 2010 and 2019 including finance and insurance, real estate, and rental leasing (137 percent), professional, scientific, management, and administrative services (61 percent), public administration (54 percent), arts, entertainment, recreation, accommodation, and food services (35 percent), and education services, healthcare, and social assistance (20 percent); Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-19 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Wholesale trade (2 percent) and agriculture, forestry, fishing and hunting, and mining (0 percent) industries experienced the least amount of growth; and
Overall, there was a 19 percent decrease in employment for Carmel-by-the-Sea residents between 2010 and 2019.
Table A-5 Employment by Sector, Carmel-by-the-Sea, 2010 and 2019 Industry Sector
2010 2019 Percent
Change
2010-2019 People
Employed
Percent of City
Employment
People
Employed
Percent of City
Employed
Agriculture, forestry, fishing and
hunting, and mining 0 0% 0 0% 0%
Construction 25 1% 94 7% 276%
Manufacturing 40 2% 67 5% 68%
Wholesale Trade 0 0% 26 2% 2%
Retail Trade 247 14% 213 15% 14%
Transportation and warehousing,
and utilities 63 4% 95 7% 51%
Information 14 1% 96 7% 585%
Finance and insurance, real
estate, and rental leasing 172 10% 73 5% -137%
Professional, scientific,
management, and administrative
services
273 15% 106 7% -61%
Education services, healthcare,
and social assistance 493 28% 394 28% -20%
Arts, entertainment, recreation,
accommodation, and food services 330 19% 216 15% -35%
Public Administration 112 6% 52 4% -54%
Total Employment 1,769 100% 1,432 100% -19%
SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2010, 2019 Balance of Jobs to Workers
A city houses employed residents who either work in the community where they live or work elsewhere in the region. Conversely, a city may have job sites that employ residents from the same city but more often employ workers commuting from outside of it. Smaller cities will typically have more employed residents than jobs and export workers, while larger cities tend to have a surplus of jobs and import workers. To some extent, the regional transportation system is set up for this flow of workers to the region’s core job centers. At the same time, as the housing affordability crisis has illustrated, local imbalances may be severe, where local jobs and worker populations are out of sync at a sub-regional scale.
Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-20 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 One measure of local imbalance is the relationship between workers and jobs. A city with a surplus of workers, “exports” workers to other parts of the region, while a city with a surplus of jobs must conversely “import” them.
A community may offer employment for relatively low-income workers but have relatively few housing options for those workers. Conversely, it may house residents who are low-wage workers but offer few employment opportunities for them. Such relationships may cast extra light on potentially pent-up demand for housing in particular price categories. A relative surplus of jobs relative to residents in a given wage category suggests the need to import those workers, while conversely, surpluses of workers mean the community will export those workers to other jurisdictions. Such flows are not inherently bad, though over time, sub-regional imbalances may appear.
Figure A-10 illustrates earnings of workers in comparison to worker place of residence and place of work in Carmel-by-the-Sea. In 2019, Carmel-by-the-Sea had more low-wage jobs than low-wage residents (where low-wage refers to jobs paying less than $25,000). At the high end of the wage spectrum (i.e., wages over $75,000 per year), the City had more high-wage jobs than high-wage residents.9 This indicates the City is a net-importer of workers.
Figure A-10 Worker Earnings by Place of Residence & Place of Work, Carmel-by-the-Sea, 2019
SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
9 The source table is top-coded at $75,000, precluding more fine-grained analysis at the higher end of the wage spectrum. 48 148 213
328
621
457
1,108
1,226
509
703
0 200
400
600
800
1,000
1,200
1,400
Less than
$9,999
$10,000 to
$24,999
$25,000 to
$49,999
$50,000 to
$74,999
$75,000 or
more
Workers
Wage Group
Place of Residence
Place of Work
Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-21 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 According to U.S. Census Bureau data reported in a Housing Feasibility Study for the City of Carmel-by-the-Sea by ECONorthwest,10 a mere 2.6 percent of workers live and work in Carmel-bythe-Sea, while approximately half of all workers live within 10 miles of the City and 26 percent commute from more than 25 miles away.11 Concentrations in hospitality and leisure services may create obstacles for local workers that earn lower-incomes and cannot afford to live in the community. Such imbalances of jobs to housing impacts an individual’s ability to integrate into the community due to long distance travel, excessive costs of travel, and reduced personal time.
Unemployment rates are essential to understanding the affordability needs of a community when determining housing options. Table A-6 provides a breakdown of unemployment rates for Carmelby-the-Sea, the County, and neighboring cities. Compared to the County and neighboring cities, Carmel-by-the-Sea has the lowest unemployment rate with less than 1 percent of unemployed residents. This indicates an approximate 4.8 percent less than the County, 5 percent less than the Del Rey Oaks, and 3.8 percent less than Pacific Grove.
Table A-6 Unemployment Rate, Carmel-by-the-Sea, 2019
Jurisdictions Unemployment Rate
Monterey County 4.9%
Carmel-by-the-Sea 0.1%
Del Rey Oaks 5.1%
Pacific Grove 3.9%
SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
The Monterey Bay Area approved Regional Housing Needs Assessment (RHNA) Methodology is broken down into four income levels:
Very Low Income (50 percent or less of the County’s median income); Low Income (50-80 percent of the County’s median income); Moderate Income (80-120 percent of the County’s median income); and Above moderate Income (120 and above the County’s median income).
Carmel-by-the-Sea’s RHNA allocation is presented below in Table A-7. 10 ECONorthwest, Housing Feasibility Study, 2023
11 U.S. Census Bureau Longitudinal Employer-Household Dynamics Data (See https://lehd.ces.census.gov/) Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-22 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Table A-7 Regional Housing Needs Allocation
Income Group Percentage of AMI Share
Extremely Low-Income12 <30 57
Very Low-Income <50 56
Low-Income 50-80 74
Moderate-Income 80-120 44
Above Moderate-Income 120+ 118
Total 349
SOURCE: City of Carmel-by-the-Sea, 2023
In Monterey County, the median household income in 2019 was an estimated $71,015 compared to Carmel-by-the-Sea at $98,188. Table A-8 lists occupations by mean salary in Monterey County.
According to Table A-8, the occupations that fall below 50 percent of the median income are Food Preparation and Serving-Related Occupations; Personal Care and Services Occupations; and Farming, Fishing, and Forestry Occupations. The majority of occupations in Monterey County have an average income that is low (50-80 percent AMI) or very low (<50 percent AMI). If applied to Carmel-by-the-Sea, it should be anticipated that affordable housing is needed to accommodate potential low- and very low-income households.
Table A-8 Occupations by Mean Salary, Monterey County, 2019 Occupation Salary
Management Occupations $117,738
Business and Financial Operations Occupations $78,900
Computer and Mathematical Occupations $96,980
Architecture and Engineering Occupations $92,554
Life, Physical, and Social Science Occupations $84,516
Community and Social Services Occupations $59,549
Legal Occupations $103,094
Education, Training, and Library Occupations $69,296
Arts, Design, Entertainment, Sports, and Media Occupations $56,599 Healthcare Practitioners and Technical Occupations $115,486 Healthcare Support Occupations $42,625
Protective Service Occupations $70,161
12 Extremely low-income RHNA is found as a subset within the very low-income category for all other tables in this document.
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Appendix A – Housing Needs & Fair Housing Report A-23 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Occupation Salary
Food Preparation and Serving-Related Occupations $30,127 Building and Grounds Cleaning and Maintenance Occupations $36,330 Personal Care and Service Occupations $31,984
Sales and Related Occupations $42,099
Office and Administrative Support Occupations $44,239
Farming, Fishing, and Forestry Occupations $29,901
Construction and Extraction Occupations $60,870
Installation, Maintenance, and Repair Occupations $54,180 Production Occupations $41,905
Transportation and Material Moving Occupations $37,144
SOURCE: California Employment Development Division, Occupational Wage data, 2019 Household Characteristics
Characteristics of a household include household type and size, income, affordability, and special needs groups. According to HCD, a household is defined as “All persons who occupy a housing unit. The occupants may be a single family, on person living alone, two or more families living together, or any groups of related or unrelated persons who share living arrangements.” Large families, single parent households, female-headed households, or extremely low- and low-income households may be classified as Special Needs groups. Special Needs groups are identified due to the unique nature of household characteristics and potential housing challenges faced. The following section examines household characteristics trends in Carmel-by-the-Sea and the region.
Table A-9 provides an overview of the projected housing units needed in Monterey County, Carmelby-the-Sea, and neighboring cities, Del Rey Oaks and Pacific Grove.13 Carmel-by-the-Sea is forecast to have a household growth of approximately 1 percent by 2045 – an increase of 42 housing units.
Compared to the County, this reflects 18 percent less projected growth and 2 percent less growth than Pacific Grove. Of the neighboring cities, the City of Del Rey Oaks has the highest projected increase in housing unit growth at 61 percent.
13 Source: AMBAG Regional Growth Forecast, 2022
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Appendix A – Housing Needs & Fair Housing Report A-24 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Table A-9 Housing Forecast by Jurisdiction, 2015-2045
Jurisdictions Population Change
2015 - 2045
2015 2020 2025* 2030* 2035* 2040* 2045* Numeric Percent Monterey County 139,177 141,764 146,716 153,852 159,100 162,612 165,328 26,151 19% Carmel-by-the-Sea 3,417 3,437 3,437 3,442 3,450 3,453 3,459 42 1% Del Rey Oaks 741 741 762 809 848 1,052 1,195 454 61%
Pacific Grove 8,184 8,201 8,214 8,267 8,336 8,400 8,463 279 3% SOURCE: AMBAG Regional Growth Forecast, 2022
NOTE: *Projected growth values
Household Type and Size
Figure A-11 illustrates household characteristics by type in 2019 for Carmel-by-the-Sea, the County, and neighboring cities, Del Rey Oaks and Pacific Grove. In Carmel-by-the-Sea, the largest household type was married-couple family households (47 percent) followed by single-person households (40 percent). This is consistent with the County and neighboring cities. Carmel-by-theSea has the lowest percentage of female-headed households (6 percent) compared to the County (13 percent), Del Rey Oaks (7 percent), and Pacific Grove (9 percent).
Figure A-11 Household by Type by Jurisdiction, 2019
SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
13.3%
5.9% 6.9% 8.8%
6.5%
2.0% 4.5% 2.8%
52.5%
46.9%
51.4% 45.9%
6.1%
5.2%
3.7%
6.4%
21.6%
40.0%
33.5% 36.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Monterey County Carmel-by-the-Sea Del Rey Oaks Pacific Grove Single-person Households
Other Non-Family Households
Married-couple Family Households
Male-headed Households
Female-Headed Households
Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-25 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-12 illustrates household changes between 2010-2019 in Carmel-by-the-Sea. Over the last decade, married-couple family households have remained the largest household type in the City followed by single-person households. Since 2015, married-couple family households have begun declining, while single-person households have increased. Female-headed households experienced the most fluctuation between 2010-2019, showing a steady increase between 2010-2013, then slowly decreasing through 2019 to 6 percent (7 percent decrease between 2013-2019). Male-headed households have slightly increased since 2010 from zero to 2 percent in 2019. These changes in household type over time indicate a need for housing options that appeal to both family-sized and smaller-sized households (keeping affordability in mind).
Figure A-12 Changes in Household Type, Carmel-by-the-Sea, 2010-2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2010-2019 NOTE: Non-family households include unrelated persons living in one housing unit.
Figure A-13 illustrates households by household size for Carmel-by-the-Sea, the County, and neighboring cities. Carmel-by-the-Sea’s largest household type according to size is 2-person households (42 percent) followed by 1-person households (40 percent). This is consistent with findings in Figure A-12, with married-couple family households remaining the largest household type since 2010 followed by single-person households. This reflects a demand for affordable housing units appealing to married-couple and single-person households.
8.8% 10.5% 11.9% 13.0% 11.0% 11.1% 11.0% 10.7% 6.8% 5.9%
0.0% 1.3% 1.5% 1.1% 1.1% 2.1% 1.2% 1.3%
0.9% 2.0%
43.6%
44.4% 46.4%
50.9% 50.9% 52.4% 49.3% 46.7% 49.9% 46.9%
3.6%
2.5%
3.8%
3.7% 2.6% 2.0%
2.8% 3.6% 3.8% 5.2%
44.0% 41.3% 36.4% 31.3% 34.5% 32.4% 35.7% 37.6% 38.5% 40.0% 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Single-person Households
Other Non-Family Households
Married-couple Family Households
Male-headed Family Households
Female-Headed Family Households
Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-26 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-13 Households by Household Size by Jurisdiction, 2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
Household Income
Affordability is a key component in determining the housing needs of a community. Household income determines the ability of a household to purchase or rent a housing unit. However, fluctuating household incomes may result in the need to spend disproportionate amounts of income on housing costs, referred to as overpayment or cost burden. As a result, this may also lead to overcrowding and/or substandard living conditions.
The following are income categories based on area median income (AMI) according to HCD:
Extremely low-income: households earning 0-30 percent of AMI; Very low-income: households earning 30-50 percent of AMI; Low-income: households earning 50-80 percent of AMI;
Moderate-income: households earning 80-100 percent of AMI; and Above-moderate income: households earning 100-120 percent of AMI.
Government Code Section 65583(a) defines extremely low-income households as earning 30 percent or below area median income, and considers them as a subset of the very low-income category. The extremely low-, very low-, and low-income groups are referred to as lower-income.
Table A-10 summarizes households by income category in Carmel-by-the-Sea in 2019. Above moderate-income households makeup the majority of households in the City (62 percent) followed by lower-income households (28 percent). Approximately 7 percent of households in Carmel-bythe-Sea identify as extremely low-income. This reflects a need for more affordable housing in the City, and in tandem with Figure A-12 and Figure A-13 findings, it is likely the demand for singleperson households is accompanied by a need for affordable options.
40.0%
23.9%
33.5% 36.0%
41.5%
31.1%
38.2% 36.2%
14.8%
34.0%
21.4% 22.2%
3.6%
11.0% 6.9% 5.5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Carmel-by-the-Sea Monterey County Del Rey Oaks Pacific Grove 5-Person or More Household
3-4-Person Household
2-Person Household
1-Person Household
Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-27 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Table A-10 Households by Income Category, Carmel-by-the-Sea, 2019 Income Category (% of County MFI) Households Percent
Extremely Low-Income (30% MFI or less) 140 7%
Very Low-Income (30-50% MFI) 170 9%
Low-Income (50-80% MFI) 235 12%
Moderate-Income (80-100% MFI) 185 10%
Above Moderate-Income (>100% MFI) 1,200 62%
Total 1,930 100%
SOURCE: Department of Housing and Urban Development (HUD) Comprehensive Housing Affordability Strategy (CHAS), 2015-2019 Figure A-14 illustrates the median household income in Carmel-by-the-Sea, the County, and neighboring cities in 2019. Carmel-by-the-Sea’s median household income was $98,188 – approximately $27,173 higher than the County ($71,015). The City of Del Rey Oaks had the second highest median household income at $95,000 followed by Pacific Grove at $88,250. Understanding Carmel-by-the-Sea’s median household income determines what income category households identify with and what affordability levels look like for the community.
Figure A-14 Median Household Income by Jurisdiction, 2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
Figure A-15 illustrates median household income across Carmel-by-the-Sea. According to the HCD AFFH Data Viewer, Carmel-by-the-Sea households experience variation in median household income based on location. Households located in the center of the City reportedly earn less than the City’s annual median income ($98,188) and households located in the north and south earn more (>$87,100 - <125,000).
$71,015.00
$98,188.00 $95,000.00
$88,250.00
$-
$20,000.00
$40,000.00
$60,000.00
$80,000.00
$100,000.00
$120,000.00
Monterey County Carmel-by-the-Sea Del Rey Oaks Pacific Grove Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-28 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-15 Median Income by Block Group, Carmel-by-the-Sea, 2015-2019 SOURCE: California Department of Housing and Community Development, AFFH Data Viewer Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-29 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-16 provides a breakdown of 2019 incomes by category in Carmel-by-the-Sea.
Approximately 43 percent of households are earning $100,000 or more (more than the City’s annual median income). Conversely, 26 percent households earn an annual income less than $50,000 ($48,188 less than the City’s annual median income). Approximately 41 percent of households are earning below the City’s annual median income, of which 10 percent earn less than $25,000.
Figure A-16 Income by Category, Carmel-by-the-Sea, 2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2019
The household income characteristics in Carmel-by-the-Sea reveal a demand for the development of more affordable housing options that appeal to both lower-income and above-moderate households.
Carmel-by-the-Sea is comprised primarily of above moderate-income households (62 percent), most of which identify as married-couple families (47 percent). Nonetheless, 28 percent of households are lower-income and 40 percent of households identify as single-persons. Affordable housing in Carmel-by-the-Sea must accommodate these households as well despite their non-majority makeup.
Figure A-17 illustrates housing by tenure in Carmel-by-the-Sea, the County, and neighboring cities.
Fifty-seven (57) percent of households in Carmel-by-the-Sea are owners and 43 percent are renters.
This reflects an approximate 6 percent higher owner household population than the County (51 percent), 11 percent higher than Pacific Grove (46 percent), and 14 percent lower than Del Rey Oaks (71 percent).
10%
8%
8%
15%
11%
12%
11%
20% Less than $25,000
$25,000 - $34,999
$35,000 - $49,999
$50,000 - $74,999
$75,000 - $99,999
$100,000 - $149,999
$150,000 - $199,999
$200,000 or more
Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-30 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-17 Housing Tenure by Jurisdiction, 2019
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
A.3 Disproportionate Housing Needs
Housing Problems and Severe Housing Problems
The following section details housing problems and severe housing problems in Carmel-by-the-Sea according to the Census Bureau Comprehensive Housing Affordability Strategy (CHAS).
Disproportionate Housing Needs
“Disproportionate housing needs generally refers to a condition in which there are significant disparities in the proportion of members of a protected class experiencing a category of housing need when compared to the proportion of members of any other relevant groups, or the total population experiencing that category of housing need in the applicable geographic area. For purposes of this definition, categories of housing need are based on such factors as cost burden and severe cost burden, overcrowding, homelessness, and substandard housing conditions.”
SOURCE: California Department of Housing and Community Development Guidance, 2021, page 39.
The CHAS data set provides in-depth analysis on housing needs by income level according to types of households. According the CHAS, housing problems are defined as having one or more of the following variables:
Incomplete kitchen facilities;
Incomplete plumbing facilities;
More than one person per room; and
Cost burden greater than 30 percent.
57% 51%
71%
46%
43% 49%
29%
54%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Carmel-by-the-Sea Monterey County Del Rey Oaks Pacifc Groves Renter Occupied
Owner Occupied
Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-31 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Severe housing problems are defined as having one or more of the following variables:
Incomplete kitchen facilities;
Incomplete plumbing facilities;
More than 1.5 persons per room; and
Cost burden greater than 50 percent.
Additionally, CHAS defines cost burden as the ratio of housing costs to household income. The following defines cost burden by renter and owner:
Renter Cost Burden: gross rent (contract rent plus utilities); and Owner Cost Burden: select monthly owner costs including mortgage payment, utilities, association fees, insurance, and real estate taxes.
Figure A-18 and Figure A-19 illustrate housing problems by tenure and severe housing problems by tenure in Carmel-by-the-Sea during 2019. Approximately 60 percent of renter households have at least one of four housing problems and 36 percent have at least one of four severe housing problems. In contrast, 47 percent of owner households experience at least one housing problem and 25 percent have at least one severe housing problem.
Figure A-18 Housing Problems by Tenure, Carmel-by-the-Sea, 2015-2019 SOURCE: U.S. Census Bureau, CHAS Data, 2015-2019
NOTE: The four housing problems are: incomplete kitchen facilities, incomplete plumbing facilities, more than 1 person per room, and cost burden greater than 30%.
47%
60%
53%
40%
0% 20% 40% 60% 80% 100%
Owner %
Renter %
Household has at least 1 of 4
Housing Problems
Household has none of 4 Housing
Problems OR cost burden not
available, no other problems
Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-32 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-19 Severe Housing Problems by Tenure, Carmel-by-the-Sea, 2015-2019 SOURCE: U.S. Census Bureau, CHAS Data, 2015-2019
NOTE: The four housing problems are: incomplete kitchen facilities, incomplete plumbing facilities, more than 1.5 person per room, and cost burden greater than 50%.
Overcrowding
Understanding the prevalence of overcrowded households within a community helps determine the need for affordable and adequately sized housing units for the community. Overcrowding is defined as a household with more than one occupant per room excluding bathrooms and kitchens. Units with more than 1.5 persons per room are considered severely overcrowded. Overcrowding may occur due to a lack of available affordable and/or adequately sized housing units. Cultural norms and customs combined with low-income or lack of adequately size housing units can result in overcrowding too. For example, in Asian culture, households are often comprised of multigenerations. If this custom is also compounded by low-income or lack of adequately sized housing units overcrowding may occur.
Figure A-20 illustrates overcrowding by severity in Carmel-by-the-Sea, the County, and neighboring cities in 2019. The City of Del Rey Oaks households experience the least amount of overcrowding (0.8 percent) and no severe overcrowding, compared to Carmel-by-the-Sea households that experience zero percent moderate overcrowding, but 6 percent severe overcrowding. Monterey County has a higher overall percentage of households that experience overcrowding (9 percent) and severe overcrowding (5 percent) compared to Carmel-by-the-Sea. 25%
36%
75%
64%
0% 20% 40% 60% 80% 100%
Owner %
Renter %
Household has at least 1 of 4
Housing Problems
Household has none of 4 Housing
Problems OR cost burden not
available, no other problems
Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-33 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-20 Overcrowding by Severity by Jurisdiction, 2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
Figure A-21 illustrates overcrowding by tenure and severity in Carmel-by-the-Sea during 2019.
Renter households in Carmel-by-the-Sea experience 8 percent more overcrowding than owner households. While renter households do not experience overcrowding (more than 1-person per room), 10 percent experience severe overcrowding (more 1.5-persons per room). Similarly, owner households in Carmel-by-the-Sea do not experience overcrowding, but 2 percent do experience severe overcrowding.
Figure A-21 Overcrowding by Tenure and Severity, Carmel-by-the-Sea, 2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
94%
86%
99%
92%
0%
9%
1%
3%
6% 5%
0%
5%
75%
80%
85%
90%
95%
100%
Carmel-by-the-Sea Monterey County Del Rey Oaks Pacific Grove More than 1.5 Occupants per Room
1.0 to 1.5 Occupants per Room
1.0 or Less Occupants per Room
98%
90%
0%
0%
2%
10%
84%
86%
88%
90%
92%
94%
96%
98%
100%
Owner Occupied Renter Occupied
More than 1.5 Occupants
per Room
1.01 to 1.5 Occupants per
Room
1.0 or Less Occupant per
Room
Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-34 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-22 illustrates overcrowded households in Carmel-by-the-Sea. According to the HCD AFFH Data Viewer, Carmel-by-the-Sea households experience no variation in overcrowding based on location. In the City, overcrowding rates are less than 8.2 percent.
Figure A-22 Overcrowded Households, Carmel-by-the-Sea
SOURCE: California Department of Housing and Community Development, AFFH Data Viewer Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-35 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Cost Burden
According to HCD, overpayment or cost burden is measured as households spending more than 30 percent of their gross income including utilities for housing; severe overpayment or severe cost burden is measured as households spending 50 percent or more of their gross income for housing.
For the duration of this report, overpayment will be referred to as cost burden.
The cost burden rates of owners and renters in a community provide insight to housing needs such as, the affordability of the local housing market and the availability of housing units that accommodate household needs like size and housing type. Additionally, federal and state agencies examine cost burden to determine a community’s need for housing assistance.
Figure A-23 illustrates cost burden severity in Carmel-by-the-Sea, the County, and neighboring cities.
Carmel-by-the-Sea household cost burden rates are similar to the County. In Carmel-by-the-Sea, 46 percent of households experience some level of cost burdened, of which 23 percent are severely cost burdened, while the County has a cost burden rate of 22 percent and a severe cost burden rate of 18 percent. The cities of Del Rey Oaks and Pacific Grove have slightly lower rates of cost burden overall with 67 percent and 61 percent of households experiencing no cost burden, respectively.
Overall, the City of Del Rey Oaks has the lowest percent of households experiencing any type of cost burden. It is important to relate Carmel-by-the-Sea’s approximate 46 percent cost burden with its 10 percent population of overcrowded renter households, as these may be indicators of an unaffordable and homogenous local housing market.
Figure A-23 Cost Burden Severity by Jurisdiction, 2015-2019 SOURCE: U.S. Census Bureau, CHAS Data, 2015-2019
54% 59%
67% 61%
23%
22%
21%
21%
23% 18%
11%
16%
0% 1% 1% 2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Carmel-by-the-Sea Monterey County Del Rey Oaks Pacific Grove 0%-30% of Income Used for Housing 30%-50% of Income Used for Housing 50%+ of Income Used for Housing Not Computed
Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-36 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-24 illustrates cost burden by tenure in Carmel-by-the-Sea. Renter and owner households experience similar levels of cost burden. Renter households experience 24 percent cost burden and 23 percent severe cost burden (47 percent total), whereas owner households experience 23 percent cost burden and 22 percent severe cost burden (45 percent total). This reflects a 1 percent difference between cost burden and severe cost burden for renter and owner households, respectively.
Figure A-24 Cost Burden by Tenure, Carmel-by-the-Sea, 2015-2019 SOURCE: U.S. Census Bureau, CHAS Data, 2015-2019
Figure A-25 illustrates cost burden of home owners in Carmel-by-the-Sea. According to the HCD AFFH Data Viewer, the highest rates of cost burden among home owners in Carmel-by-the-Sea are concentrated in the central and southern regions of the City. In these regions, 80 percent of households experience cost burden. In the northern region of the City, 40-60 percent of households experience cost burden.
55% 52%
23% 24%
22% 23%
0% 0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Owner Occupied Renter Occupied
Not Computed
50%+ of Income Used for
Housing
30%-50% of Income Used for
Housing
0%-30% of Income Used for
Housing
Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-37 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-25 Cost Burden by Home Owners, Carmel-by-the-Sea, 2015-2019 SOURCE: California Department of Housing and Community Development, AFFH Data Viewer Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-38 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-26 illustrates cost burden of renters in Carmel-by-the-Sea. When analyzing concentrations of cost burden among renter-occupied households in Carmel-by-the-Sea, there is no variation based on location. Between 40-60 percent of renter-households experience cost burden across the City.
Figure A-26 Cost Burden by Renter Households, Carmel-by-the-Sea, 2015-2019 SOURCE: California Department of Housing and Community Development, AFFH Data Viewer Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-39 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 A.4 Special Needs Groups
Special needs groups are those that may face particular challenges in obtaining adequate housing due to inherent circumstances such as age, disabilities, household size, income level, age, and occupation.
Large families, single parent households, female-headed households, or extremely low- and lowincome households, and homeless persons may be classified as Special Needs groups. Special Needs groups are identified due to the unique nature of household characteristics and potential housing challenges faced.
Extremely Low-Income Households and Poverty Status
Extremely low-income (ELI) households are those that earn less than 30 percent of the median family income (MFI). Very low-income households are those that earn 50 percent of less of the MFI. Extremely low-income households typically face a combination of housing challenges related to income status, family size/type, disability status, access to housing opportunities and other household characteristics. Additionally, ELI households are more likely to experience overcrowding, cost burden, and substandard housing conditions. Extremely low-income households are typically minimum-wage workers, disabled persons, farmworkers, and seniors on fixed incomes.
Table A-11 provides a breakdown of extremely low-income households in Carmel-by-the-Sea. The 2015-2019 Comprehensive Housing Affordability Strategy (CHAS) data indicates there were approximately 140 ELI households (7 percent of total households) in Carmel-by-the-Sea. Of the extremely low-income households in Carmel-by-the-Sea, 29 percent are renter-occupied households and 71 percent are owner-occupied households, or 2 percent and 5 percent of all households, respectively.
When analyzing cost burden of ELI households, approximately 120 ELI households experience severe cost burden (paying more than 50 percent of median gross income on housing) and 140 experience moderate cost burden (paying more than 30 percent of median gross income on housing). Of the ELI households experiencing some form of cost burden, the majority are owneroccupied households.
Data for overcrowding by income level is not available for Carmel-by-the-Sea. However, because owner-occupied households represent the majority of ELI households and experience higher rates of cost burden, overcrowding, substandard housing issues it may be assumed that ELI households experience overcrowding.
The projected RHNA for ELI households was based on the assumption that 50 percent of very lowincome households qualify as extremely low-income households. The very low-income housing need is 113 housing units, of which the City estimates 57 housing units will accommodate the extremely low-income housing need.
Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-40 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Table A-11 Extremely Low-Income Households, Carmel-by-the-Sea, 2015-2019 Households Number Percentage of Total
Households
Total occupied units (households) 1,925 100%
Total Lower-income (0-80% of HAMFI) households 545 28%
Extremely Low-income (0-30% of HAMFI) households 140 7% Extremely Low-income renters 40 2%
Extremely Low-income owners 100 5%
Lower-income households paying more than 50% 270 14%
Extremely Low-income paying more than 50% 120 6%
ELI Renter HH severely cost burdened 20 1%
ELI Owner HH severely cost burdened 100 5%
Lower-income households paying more than 30% 430 22%
Extremely Low-income paying more than 30% 140 7%
ELI Renter HH moderately cost burdened 40 2%
ELI Owner HH moderately cost burdened 100 5%
Lower-income households experiencing 1 of 4 Housing Problems 450 23% Extremely Low-income households experiencing 1 of 4 Housing Problems 140 7% ELI Renter HH experiencing 1 of 4 Housing Problems 40 2% ELI Owner HH experiencing 1 of 4 Housing Problems 100 5% SOURCE: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) 2015-2019.
NOTE: MFI = HUD Median Family Income, this is the median family income calculated by HUD for each jurisdiction, to determine Fair Market Rents (FMRs) and income limits for HUD programs. MFI will not necessary be the same as other calculations of median incomes (such as Census number), due to a series of adjustments that are made.
The four housing problems are: incomplete kitchen facilities, incomplete plumbing facilities, more than 1 person per room, and cost burden greater than 30%. ***Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities). For owners, housing cost is "select monthly owner costs", which includes mortgage payment, utilities, association fees, insurance, and real estate taxes.
Figure A-27 illustrates the percent of the population in Carmel-by-the-Sea living below the poverty line in 2019 by race and ethnicity. Despite being the smallest population in the City, the Black or African American population is estimated to have the highest rate of poverty (50 percent). In contrast, the non-Hispanic White population represents 87 percent of the total population and only 2 percent is living below the poverty line. The Hispanic or Latinx population experiences the second highest rate of poverty with 13 percent living below the poverty line.
Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-41 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-27 Percent Living Below the Poverty Line by Race and Ethnicity, Carmel-by-theSea, 2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
NOTE: Race/Ethnicity represents percentage of the total population* To address the needs of ELI households, the City will adopt housing programs to facilitate the construction of affordable and supportive housing for ELI households. Programs that will directly impact ELI households in Carmel-by-the-Sea include:
Policy 3.1: Incentivize affordable housing development, with an emphasis on affordable housing built to accommodate Extremely Low-Income residents. Encourage the private sector to produce affordable housing; and
Policy 4.1: Support energy and water conservation programs to reduce the consumption of these resources in housing and to reduce housing costs.
All housing policies and programs can be found in full detail in Chapter 2 of the Housing Element.
Seniors
Seniors are identified as individuals 65 years and older. Senior households often experience a combination of factors that can make accessing or keeping affordable housing a challenge. They often live on fixed incomes and are more likely to have disabilities, chronic health conditions and/or reduced mobility. Seniors who rent may be at even greater risk for housing challenges than those who own, due to income differences between these groups.
Hispanic or
Latinx
Other Race
or Multiple
Races
(Hispanic
and NonHispanic)
White,
NonHispanic
Asian
alone
Native
Hawaiian
and Other
Pacific
Islander
Black or
African
American
(Hispanic
and NonHispanic)
American
Indian or
Alaska
Native
(Hispanic
and NonHispanic)
Below Poverty Line 13.4% 0.0% 2.1% 0.0% 0.0% 50.0% 0.0% Race/Ethnicity* 8.2% 0.0% 86.5% 5.2% 0.0% 0.1% 0.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-42 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-28 illustrates the senior population in Carmel-by-the-Sea, the County, and neighboring cities. Compared to the County and neighboring cities, Carmel-by-the-Sea has the highest senior population (43 percent), approximately 30 percent more than the County and 16 percent more than Pacific Grove.
Figure A-28 Senior Population by Jurisdiction, 2019
SOURCE: U.S. Census Bureau, 2019
NOTE: Senior population is defined as persons 65 years and older.
Figure A-29 illustrates senior housing by tenure in Carmel-by-the-Sea during 2019. Senior households in Carmel-by-the-Sea are primarily owners (85 percent). Similarly, the senior households of the County (73 percent) and neighboring cities of Del Rey Oaks (91 percent) and Pacific Grove (68 percent) are majority owners.
Figure A-29 Senior Housing by Tenure, Carmel-by-the-Sea, 2019 SOURCE: U.S. Census Bureau, 2019
NOTE: Senior population is identified as persons 65 years and older. 43%
13%
23%
27%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Carmel-by-the-Sea Monterey County Del Rey Oaks Pacific Grove 85%
73%
91%
68%
15%
27%
9%
32%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Carmel-by-the-Sea Monterey County Del Rey Oaks Pacific Grove Renter
Owner
Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-43 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-30 illustrates senior households by their income. The majority of Carmel-by-the-Sea senior households earn a yearly income of $200,000 or more (14 percent). However, an estimated 61 percent of senior households earn less than the City’s median household income ($98,188).
Figure A-30 Senior Households by Income, Carmel-by-the-Sea, 2019 SOURCE: U.S. Census Bureau, 2019
NOTE: Senior population is identified as persons 65 years and older.
People with Disabilities
People with disabilities face additional housing challenges. Encompassing a broad group of individuals living with a variety of physical, cognitive and sensory impairments, many people with disabilities live on fixed incomes and are in need of specialized care, yet often rely on family members for assistance due to the high cost of care. When it comes to housing, people with disabilities are not only in need of affordable housing but accessibly designed housing, which offers greater mobility and opportunity for independence. Unfortunately, the need typically outweighs what is available, particularly in a housing market with such high demand. People with disabilities are at a high risk for housing insecurity, homelessness and institutionalization, particularly when they lose aging caregivers.
Figure A-31 illustrates population by disability status in Carmel-by-the-Sea, the County, and neighboring cities in 2021. Twelve (12) percent of the population in Carmel-by-the-Sea has some form of disability, which is on par with neighboring cities. The cities of Del Rey Oaks and Pacific Grove each have a population of 13 percent and 12 percent, respectively, with a disability. The County has the lowest percentage of persons with a disability at 9 percent.
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Appendix A – Housing Needs & Fair Housing Report A-44 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-31 Population by Disability Status by Jurisdiction, 2021 SOURCE: U.S. Census Bureau, 2021
Table A-12 provides an overview of disability by type and age in Carmel-by-the-Sea during 2021.
Hearing difficulty is the most widespread disability in Carmel-by-the-Sea (41 percent) with the highest concentration in persons 65 years of age and older. Self-care difficulty is the least common disability with 2 percent experiencing this in Carmel-by-the-Sea. Overall, seniors (persons aged 65+) makeup the largest demographic with a disability (50 percent).
Table A-12 Disability Status by Age, Carmel-by-the-Sea, 2021 Disability Type Under 18 18-64 65 and Over Total
Percent of
Population with
a Disability
Hearing Difficulty 20 0 305 325 41%
Vision Difficulty 20 0 50 70 9%
Cognitive Difficulty 0 29 46 75 9%
Ambulatory Difficulty 0 0 142 142 18%
Self-care Difficulty 0 0 56 56 7%
Independent Living Difficulty 0 0 130 130 16%
Total 40 29 729 798 100%
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2021
NOTE: These disabilities are counted separately and are not mutually exclusive, as an individual may report more than one disability. These counts should not be summed.
State law also requires Housing Elements to examine the housing needs of people with developmental disabilities. Developmental disabilities are defined as severe, chronic, and attributed 88% 91% 87% 88%
12% 9% 13% 12%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Carmel-by-the-Sea Monterey County Del Rey Oaks Pacific Grove With a disability
No disability
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Appendix A – Housing Needs & Fair Housing Report A-45 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 to a mental or physical impairment that begins before a person turns 18 years old. This can include Down’s Syndrome, autism, epilepsy, cerebral palsy, and mild to severe mental retardation. Some people with developmental disabilities are unable to work, rely on Supplemental Security Income, and live with family members. In addition to their specific housing needs, they are at increased risk of housing insecurity after an aging parent or family member is no longer able to care for them.
Table A-13 shows the population with developmental disabilities by age in Carmel-by-the-Sea. In Carmel-by-the-Sea, of the 798 persons with a disability, approximately less than 70 have a developmental disability. Of these, less than 31 are children (I.e., under the age of 18) and less than 36 are adults.
Table A-13 Population with Developmental Disabilities by Age, Carmel-by-the-Sea, 2021 Age Group Number
Age Under 18 <31
Age 18+ <36
SOURCE: California Department of Developmental Services, Consumer Count by California ZIP Code and Age Group (2021).
NOTE: Universe: Population with developmental disabilities. Notes: The California Department of Developmental Services is responsible for overseeing the coordination and delivery of services to more than 330,000 Californians with developmental disabilities including cerebral palsy, intellectual disability, Down syndrome, autism, epilepsy, and related conditions. The California Department of Developmental Services provides ZIP code level counts. To get jurisdiction-level estimates, ZIP code counts were crosswalked to jurisdictions using census block population counts from Census 2010 SF1 to determine the share of a ZIP code to assign to a given jurisdiction.
Table A-14 shows the population with developmental disabilities by residence in Carmel-by-the-Sea.
The most common living arrangement for individuals with developmental disabilities in Carmel-bythe-Sea is the home of parent/family/guardian.
Table A-14 Population with Developmental Disabilities by Residence, Carmel-by-the-Sea, 2021
Residence Type Number
Home of Parent/Family/Guardian <38
Foster/Family Home 0
Independent/Supported Living <11
Other 0
Community Care Facility <11
Intermediate Care Facility 0
SOURCE: California Department of Developmental Services, Consumer Count by California ZIP Code and Residence Type (2021).
NOTE: Universe: Population with developmental disabilities. Notes: The California Department of Developmental Services is responsible for overseeing the coordination and delivery of services to more than 330,000 Californians with developmental disabilities including cerebral palsy, intellectual disability, Down syndrome, autism, epilepsy, and related conditions. The California Department of Developmental Services provides ZIP code level counts. To get jurisdiction-level estimates, ZIP code counts were crosswalked to jurisdictions using census block population counts from Census 2010 SF1 to determine the share of a ZIP code to assign to a given jurisdiction.
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Appendix A – Housing Needs & Fair Housing Report A-46 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Large Households
Large households are defined as households of five or more individuals. Large households often have different housing needs than smaller households. Household income and local housing markets can greatly impact a household’s ability to afford adequately sized housing. If a city’s rental housing stock does not include larger apartments, large households who rent could end up living in overcrowded conditions. Similarly, large households may experience overpayment as a result of a high housing market and limited availability.
Figure B-32 illustrates 2019 households by size and tenure in Carmel-by-the-Sea. The City has 70 large households, of which 57 percent are renter-occupied households. Owner-occupied households makeup the majority of 1-person and 2-person households, whereas renter-occupied households makeup the majority of all 3-5 person households. This combined with a total cost burden rate of 46 percent for renter households (Figure A-24), suggests it is likely that large households in Carmel-bythe-Sea may experience overcrowding and/or overpayment.
Figure A-32 Households by Size and Tenure, Carmel-by-the-Sea, 2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
Single-Parent Households
Households headed by one person are often at greater risk of housing insecurity, particularly femaleheaded households, who may be supporting children or a family with only one income.
In Carmel-by-the-Sea, the largest proportion of households are married-couple family households at 47 percent, while female-headed households make up 6 percent and male-headed households make up 2 percent of all households (Figure A-11). Figure A-33 shows single-parent households in Carmel-by-the-Sea, the County, and neighboring cities. Compared to the County and neighboring 59% 63%
43%
28%
43% 41% 37%
57%
72%
57%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1 Person
Household
2 Person
Household
3 Person
Household
4 Person
Household
5 Or More
Person
Household
Owner Occupied
Renter Occupied
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Appendix A – Housing Needs & Fair Housing Report A-47 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 cities, Carmel-by-the-Sea’s ratio of single-parent households is on par. Carmel-by-the-Sea’s singleparent households are predominantly female-headed family households (75 percent). Male-headed family households makeup 25 percent.
Figure A-33 Single-Parent Households by Jurisdiction, 2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
Female-headed households with children may face particular housing challenges, with pervasive gender inequality resulting in lower wages for women. Moreover, the added need for childcare can make finding a home that is affordable more challenging. In 2019, there were no single-parent households that fell in the Below Poverty Level category in Carmel-by-the-Sea.
Farmworkers
Across the state, housing for farmworkers has been recognized as an important and unique concern.
Farmworkers generally receive wages that are considerably lower than other jobs and may have temporary housing needs. Finding decent and affordable housing can be challenging, particularly in the current housing market.
According to the U.S. Department of Agriculture Census of Farmworkers, the number of permanent farm workers in Monterey County has decreased since 2002, totaling 14,806 in 2017, and the number of seasonal farm workers has also decreased, totaling 12,123 in 2017. Figure A-34 shows hired farm labor in Monterey County between 2002-2017.
79% 75% 79% 73%
21% 25% 21% 27%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Monterey County Carmel-by-the-Sea Del Rey Oaks Pacific Grove Male-headed Family Households
Female-Headed Family Households
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Appendix A – Housing Needs & Fair Housing Report A-48 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-34 Hired Farm Labor, Monterey County, 2002-2017 SOURCE: U.S. Department of Agriculture, Census of Farmworkers (2002, 2007, 2012, 2017), Table 7: Hired Farm Labor.
NOTES: Universe: Hired farm workers (including direct hires and agricultural service workers who are often hired through labor contractors). Farm workers are considered seasonal if they work on a farm less than 150 days in a year, while farm workers who work on a farm more than 150 days are considered to be permanent workers for that farm.
There are no agriculture uses within the City of Carmel-by-the-Sea. However, Carmel-by-the-Sea shares the responsibility for farmworker housing as farmworkers may work within 75 miles of agricultural land uses (including dairy, vineyards and produce) and the City is within 75 miles of these uses.
Persons Experiencing Homelessness
Homelessness remains an urgent challenge in many communities across the state, reflecting a range of social, economic, and psychological factors. Rising housing costs result in increased risks of community members experiencing homelessness. Addressing the specific housing needs for the unhoused population remains a priority throughout the region, particularly since homelessness is disproportionately experienced by people of color, people with disabilities, those struggling with addiction and those dealing with traumatic life circumstances.
Table A-15 show changes in the homeless population between 2017-2022 in Carmel-by-the-Sea, the County and neighboring jurisdictions. According to the 2022 Monterey Homeless Count and Survey Comprehensive Report, Carmel-by-the-Sea has seen a decrease in homeless persons since 2017, totaling one person in 2019. Similarly, the Monterey Bay Area overall has seen a decrease in homeless populations with the exception of Seaside.
17,538
13,564
12,306
13,875
16,159 16,713
14,806
12,123
0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
Permanent Seasonal
Farm Workers
2002
2007
2012
2017
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Appendix A – Housing Needs & Fair Housing Report A-49 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Table A-15 Homeless Population by Jurisdiction, 2017-2022 Jurisdiction
Unsheltered Sheltered Total
2019-2022 % Change 2017 2019 2022 2017 2019 2022 2017 2019 2022 Monterey (city) 292 167 74 46 37 27 338 204 101 -50%
Carmel-by-the-Sea 16 6 1 0 0 0 16 6 1 *
Del Rey Oaks 111 0 2 0 0 0 111 0 2 *
Seaside 40 126 90 58 56 62 98 182 152 -16%
Pacific Grove 35 14 29 0 0 0 35 14 29 *
Total 509 315 198 104 93 89 613 408 287 -66%
SOURCE: 2022 Monterey Homeless Count and Survey Comprehensive Report NOTE: % change was not calculated when jurisdiction was below 25 individuals.
Table A-16, shows household type and shelter status in Monterey County in 2019. In Monterey County, the most common type of household experiencing homelessness are those without children in their care. Among households experiencing homelessness that do not have children, 83 percent are unsheltered. Similarly, the majority of homeless households with children are unsheltered (45 percent).
Table A-16 Homelessness by Household Type and Shelter Status, Monterey County, 2019 Jurisdiction
People in
Households
Composed Solely of
Children Under 18
People in Households
with Adults and Children
People in Households
without Children Under
18 Total
Count Percent Count Percent Count Percent
Sheltered –
Emergency Shelter 0 0% 146 22% 218 11% 364
Sheltered –
Transitional
Housing
0 0% 218 33% 124 6% 342
Unsheltered 10 100% 303 45% 1,685 83% 2,340
Total 10 100% 667 100% 2,027 100% 2,704
SOURCE: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations Reports (2019).
For the data table behind this figure, please refer to the Data Packet Workbook, Table HOMELS-01.
NOTES: Universe: Population experiencing homelessness. This data is based on Point-in-Time (PIT) information provided to HUD by CoCs in the application for CoC Homeless Assistance Programs. The PIT Count provides a count of sheltered and unsheltered homeless persons on a single night during the last ten days in January. Each Bay Area County is its own CoC, and so the data for this table is provided at the county-level. Per HCD’s requirements, jurisdictions will need to supplement this county-level data with local estimates of people experiencing homelessness.
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Appendix A – Housing Needs & Fair Housing Report A-50 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 A.5 Access to Opportunity
This section discusses disparities in access to opportunity among protected classes including access to quality education, employment, transportation, and environment. The California Tax Credit Allocation Committee (TCAC) in collaboration with HCD developed a series of opportunity maps that help to identify areas of the community with good or poor access to opportunity for residents.
These maps were developed to align funding allocations with the goal of improving outcomes for low-income residents—particularly children.
Access to Opportunity
“Access to opportunity is a concept to approximate place-based characteristics linked to critical life outcomes. Access to opportunity oftentimes means both improving the quality of life for residents of low-income communities, as well as supporting mobility and access to ‘high resource’ neighborhoods. This encompasses education, employment, economic development, safe and decent housing, low rates of violent crime, transportation, and other opportunities, including recreation, food and healthy environment (air, water, safe neighborhood, safety from environmental hazards, social services, and cultural institutions).” SOURCE: California Department of Housing and Community Development Guidance, 2021, page 34.
The opportunity maps highlight areas of highest resource, high resource, moderate resource, moderate resource (rapidly changing), low resource and high segregation and poverty. TCAC provides opportunity maps for access to opportunity in quality education, employment, transportation, and environment. Opportunity scores are presented on a scale from zero to one and the higher the number, the more positive the outcomes.
Disparities in Access to Opportunity
As can be seen in Figure A-35, TCAC Opportunity Composite Score, Carmel-by-the-Sea is considered a highest resource area as is much of western Monterey County. According to the HCD AFFH Data Viewer TCAC Opportunity Map, there are no areas of variation in access to opportunity across the City.
Economic
TCAC’s economic opportunity score is comprised of poverty, adult educational attainment, employment, job proximity, and median home value. Figure A-36 shows concentrations of economic outcomes in Carmel-by-the-Sea. According the HCD AFFH Data Viewer TCAC Economic Opportunity Map, all areas of Carmel-by-the-Sea have a high economic opportunity score of 0.75-1.0. This reflects a high level of opportunity for economic advancement for residents in Carmel-by-the-Sea.
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Appendix A – Housing Needs & Fair Housing Report A-51 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-35 TCAC Opportunity Composite Score, Carmel-by-the-Sea, 2022 SOURCE: California Department of Housing and Community Development AFFH Data Viewer Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-52 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-36 TCAC Opportunity Economic Score, Carmel-by-the-Sea, 2022 SOURCE: California Department of Housing and Community Development AFFH Data Viewer Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-53 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Education
TCAC’s education score is based on math proficiency, reading proficiency, high school graduation rates, and the student poverty rate. Opportunity scores are presented on a scale from zero to one and the higher the number, the more positive the outcomes.
Figure A-37 shows the level of TCAC educational opportunity across Carmel-by-the-Sea. According to TCAC’s Educational Opportunity Map, Carmel-by-the-Sea scores between 0.75-1.0 indicating a high level of positive educational outcomes for residents in Carmel-by-the-Sea.
Carmel-by-the-Sea is served by the Carmel Unified School District (CUSD), along with elementary, middle, and high schools within the City and school district. As of 2022, the State of California School Dashboard highlights a 97.9 percent graduation rate among all students enrolled in Carmel High School, which is higher than the statewide average (87.4 percent) and county average (88.5 percent).
When broken down by race/ethnicity, Hispanic and White students graduated at a high rate (97.4 percent for both groups). There is no performance data available for the graduation rates of African American, Asian, Filipino, and American Indian students at Carmel High.
Additionally, there is no performance data available for the graduation rates of students with a disability within Carmel High.
Environment
TCAC’s opportunity areas environmental scores are based on the CalEnviroScreen 4.0 indicators, which identify areas disproportionately vulnerable to pollution sources such as ozone, PM2.5, diesel PM, pesticides, toxic release, traffic, cleanup sites, groundwater threats, hazardous waste, impaired water bodies, and solid waste sites.
Figure A-38 shows TCAC environmental outcomes across Carmel-by-the-Sea. According to the HCD AFFH Data Viewer TCAC Environmental Opportunity Map, Carmel-by-the-Sea scores between 0.75-1.0 indicating a low level of environmental pollution burden and positive outcomes for residents in Carmel-by-the-Sea.
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Appendix A – Housing Needs & Fair Housing Report A-54 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-37 TCAC Opportunity Education Score, Carmel-by-the-Sea, 2022 SOURCE: California Department of Housing and Community Development AFFH Data Viewer Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-55 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-38 TCAC Opportunity Environmental Score, Carmel-by-the-Sea, 2022 SOURCE: California Department of Housing and Community Development AFFH Data Viewer Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-56 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 The Social Vulnerability Index (SVI) provided by the Center for Disease Control (CDC)—ranks census tracts based on their ability to respond to a disaster—includes four themes of socioeconomic status, household composition, race or ethnicity, and housing and transportation.
Figure A-39 shows SVI levels across Carmel-by-the-Sea. Carmel-by-the-Sea scores low on the SVI (less than 0.25) indicating that the City is slightly vulnerable to disasters, but highly equipped to respond to them. Just outside of the City’s borders however, vulnerability levels increase to 0.25-0.5.
This is likely due to a difference in jurisdictional resources.
Disparities Specific to the Population Living with a Disability In Carmel-by-the-Sea, 12.3 percent of the population is living with at least one disability, compared to 8.8 percent in Monterey County. The most common disabilities in the City are: hearing difficulty (9.9 percent), ambulatory difficulty (4.4 percent), and independent living difficulty (4.3 percent). For the population 65 and over, the share of the population with hearing difficulties increases to 19.3 percent.
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Appendix A – Housing Needs & Fair Housing Report A-57 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-39 Social Vulnerability Index, Carmel-by-the-Sea, 2018 SOURCE: California Department of Housing and Community Development AFFH Data Viewer Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-58 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 A.6 Housing Stock Characteristics
Carmel-by-the-Sea’s housing stock is defined as all housing units within its jurisdiction.
Characteristics of housing stock include housing type, age, condition, tenure, vacancy rates, costs, affordability, and growth. The following section provides an in-depth analysis of the housing stock in Carmel-by-the-Sea to determine how/if the current the housing stock meets the needs of existing and future residents.
Housing Growth
Table A-17 provides an overview of housing growth trends between 2010-2019 in Carmel-by-theSea, the County, and neighboring cities. Between 2010-2019, Carmel-by-the-Sea housing unit estimates grew approximately 6 percent, more than the County and Del Rey Oaks, but 2 percent less than Pacific Grove. These estimates show the majority of housing growth in Carmel-by-the-Sea occurred between 2015-2019 (8 percent).
Table A-17 Housing Unit Growth Trends by Jurisdiction, 2010-2019 Jurisdiction 2010 2015 2019 Percent Change
2010-2015
Percent Change
2015-2019
Monterey County 138,833 139,794 141,820 1% 1%
Carmel-by-the-Sea 3,606 3,532 3,832 -2% 8%
Del Rey Oaks 752 733 745 -3% 2%
Pacific Grove 7,723 8,411 8,347 9% -1%
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2010-2019 Housing Type
Table A-18 provides a comparison of housing unit types in Carmel-by-the-Sea, the County, and neighboring cities. In Carmel-by-the-Sea, single-family detached units are the most common housing type (87 percent). This aligns with the County (63 percent), Del Rey Oaks (76 percent) and Pacific Grove (60 percent) having majority single-family detached units. Overall, Carmel-by-the-Sea has the highest percentage of single-family detached units compared to the County and neighboring cities, but the lowest percentage of multifamily housing units (10 percent).
Figure A-40 illustrates housing type trends in Carmel-by-the-Sea between 2010-2019. In 2010, the majority of housing types were single-family detached homes (82 percent); this has since increased to 87 percent in 2019. Multifamily housing (2+ units) has decreased by 3 percent since 2010 accounting for only 10 percent of housing types in 2019. In 2010, mobile homes comprised the smallest percentage of housing type in Carmel-by-the-Sea, and have since slightly increased to 2 percent in 2019.
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Appendix A – Housing Needs & Fair Housing Report A-59 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Table A-18 Housing Units by Type by Jurisdiction, 2019
Jurisdiction
SingleFamily
Detached
SingleFamily
Attached
Multifamily Mobile
Homes Total Units
Count Percent Count Percent Count Percent Count Percent Monterey County 88,721 63% 8,796 6% 37,734 27% 6,529 5% 141,820 Carmel-by-the-Sea 3,319 87% 54 1% 367 10% 92 2% 3,832
Del Rey Oaks 567 76% 49 7% 118 16% 11 2% 745
Pacific Grove 5,023 60% 497 6% 2,668 32% 159 2% 8,347
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
NOTE: Table indicates total housing units.
Figure A-40 Housing by Type in Carmel-by-the-Sea, 2010-2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2010-2019 Housing Availability and Tenure
Housing tenure refers to individuals who own or rent a housing unit. The number of residents who own their homes compared to those who rent their homes can help identify the level of housing insecurity (i.e., ability for individuals to stay in their homes) in a city and region. Generally, renters may be displaced more quickly if prices increase. Additionally, housing tenure may be an indicator of housing affordability (i.e., if the local housing market has high barriers to entry, there may be more renter households than owner households).
Single-Family
Home:
Attached
Single-Family
Home:
Detached
Multifamily
Housing: Two
to Four Units
Multifamily
Housing: Fiveplus UnitsMobile Homes
2010 5% 82% 6% 7% 0%
2015 2% 87% 3% 7% 2%
2019 1% 87% 3% 7% 2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
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Appendix A – Housing Needs & Fair Housing Report A-60 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 In Carmel-by-the-Sea, the housing stock includes 828 renter-occupied housing units and 1,099 owner-occupied housing units (Table A-19). When analyzing housing unit type in tandem with tenure, the majority of all housing units are single-family detached (87 percent), of which 17 percent are renter-occupied and 32 percent are owner-occupied (Figure A-17; Table A-19).
Table A-19 Housing Units by Type and Tenure, Carmel-by-the-Sea, 2019 Tenure
SingleFamily
Detached
SingleFamily
Attached
Multifamily Mobile
Homes Total Units
Count Percent Count Percent Count Percent Count Percent Renter-Occupied 568 69% 19 2% 221 27% 20 2% 828
Owner-Occupied 1,076 98% 0 0% 23 2% 0 0% 1,099
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
NOTE: Table indicates total occupied housing units.
Table A-20 provides an overview of household size by tenure for Carmel-by-the-Sea, the County, and neighboring 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 smaller housing units. This aligns with 82 percent of Carmel-by-the-Sea’s population being comprised of 1-2 person households (Figure A-13).
Compared to the County and neighboring 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-20 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
Figure A-41 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 Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-61 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 A-41). 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-41 Household Tenure by Race, Carmel-by-the-Sea, 2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
Figure A-42 illustrates vacancy rates in Carmel-by-the-Sea, the County neighboring cities. Carmelby-the-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). The City of Seaside has the lowest vacancy rate at 8 percent (9 percent below Sand City).
Figure A-42 Vacancy Rates by Jurisdiction, 2019
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
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/Mult
iple 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%
50%
10% 13%
18%
0%
10%
20%
30%
40%
50%
60%
Carmel-by-the-Sea Monterey County Del Rey Oaks Pacific Grove Attachment 5 Attachment 2
Appendix A – Housing Needs & Fair Housing Report A-62 EMC Planning Group Inc.
Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-43 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-43 Vacancy Trends, Carmel-by-the-Sea, 2010-2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
Table A-21 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-43). The high percentage of vacant housing units is largely impacted by tourism and second-home ownership. This creates a significant barrier for current and potential residents to enter the local housing market and squanders opportunities to correct the housing crisis, address diversity, and provide inclusive housing options to promote a vibrant and active community.
Table A-22 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.
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
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Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Table A-21 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-22 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.
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.14 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.
14 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.
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Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 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-44 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-45 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.
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.
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Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-44 Displacement Risk, Carmel-by-the-Sea, 2022
SOURCE: California Department of Housing and Community Development AFFH Data Viewer Attachment 5 Attachment 2
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Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-45 Housing Stock by Age, Carmel-by-the-Sea, 2019 SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
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-23 show changes in median home values between 2019-2022 in Carmel-by-the-Sea, the County and neighboring cities. According to Zillow Home Value Index data, the median home value in 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-233 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. 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
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Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 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-24 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-24 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 Table A-25 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-25, maximum affordable sales prices are based on the following assumptions: 6.42 percent interest rate,15 30-year fixed loan, and a 5 percent down payment.
As mentioned in Table A-23, 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).
15 Interest rate based on December 29, 2022 interest rate according to Freddie Mac Primary Mortgage Market Survey Attachment 5 Attachment 2
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Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Table A-255 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 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).
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Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 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”.16
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.17 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;
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. 16 https://www.dfeh.ca.gov/aboutdfeh/ 17 https://www.dfeh.ca.gov/complaintprocess/ Attachment 5 Attachment 2
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Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 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.18
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-46 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.19 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-47 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.
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.20
18 Source: California Department of Fair Employment & Housing, 2018; Monterey County Regional Analysis of Impediments to Fair Housing Choice, 2019
19 City of Carmel-by-the-Sea, 2023
20 https://nationalfairhousing.org/2021/07/29/annual-fair-housing-report-shows-increase-in-housing-harassment/ Attachment 5 Attachment 2
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Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-46 FHEO Cases Total, Monterey County, 2020
SOURCE: California Department of Housing and Community Development AFFH Data Viewer Attachment 5 Attachment 2
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Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure A-47 FHEO Cases, Disability Bias, Monterey County, 2020 SOURCE: California Department of Housing and Community Development AFFH Data Viewer Attachment 5 Attachment 2
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Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Outreach and Capacity
Currently, Carmel-by-the-Sea’s website is being updated to contain outright information about local fair housing ordinances. The website will transparently 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 will also reference 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;
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.
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Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 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.
FAIR HOUSING ISSUE: Household Characteristics
Carmel-by-the-Sea has significantly lower proportions of racial and ethnic minorities compared to Monterey County and the AMBAG region. The absences of protected classes and housing options suitable to them may indicate exclusionary behavior.
CONTRIBUTING FACTORS
Lack of racial and ethnic diversity within the City;
Lack of adequate affordable housing options.
FAIR HOUSING ISSUE: 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 owner-occupied.
CONTRIBUTING FACTORS
Lack of affordable housing;
Lack of adequate housing stock that meets the needs of residents; and Jobs-worker imbalance.
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Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 FAIR HOUSING ISSUE: Special Needs Groups
In Carmel-by-the-Sea, extremely low-income and special needs groups experience disproportionate impacts of poverty, increasing the challenge of obtaining adequate housing in the City.
CONTRIBUTING FACTORS
Lack of affordable housing;
Jobs-worker imbalance;
Lack of accessible units for individuals with disabilities; and Lack of Transitional and Supportive Housing/Emergency Shelters.
FAIR HOUSING ISSUE: 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.
CONTRIBUTING FACTORS
Since 2015, there have been 18 housing permits in the City for only above moderate-income households; and
Lack of developable land, due to coastal zoning ordinances.
FAIR HOUSING ISSUE: 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.
CONTRIBUTING FACTORS
Of the 18 housing permits issued in Carmel-by-the-Sea since 2015, zero were issued for lower-income households; and
Costs of land, materials, and labor which limit profitability of affordable housing.
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Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 FAIR HOUSING ISSUE: Fair Housing Enforcement
No residents filed fair housing complaints in Carmel-by-the-Sea, indicating a potential lack of awareness about fair housing rights.
CONTRIBUTING FACTORS
Lack of access to information about fair housing rights; and Limited knowledge of fair housing by residents.
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 prompts the input of the public. All responses will be taken into consideration for incorporation into the Housing Element to guide policies and programs that address the housing needs of existing and future residents.
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?
Priority Contributing Factors
The City of Carmel-by-the-Sea has prioritized the following contributing factors to the Fair Housing issues mentioned above:
Lack of diverse housing stock;
Lack of affordable housing overall;
Lack of access to information about Fair Housing rights; Lack of Transitional and Supportive Housing/Emergency Shelters; and Lack of accessible units for individuals with disabilities.
Recommended Fair Housing Programs and Policies
The following are recommended policies that are intended to address the City’s fair housing issues and contributing factors:
Lack of diverse housing stock
x Program 1.3.A: Condominium Conversions;
x Program 1.3.B: R-1 Motel Development Rights Transfer; x Program 1.3.C: Accessory Dwelling Units; and
x Program 1.3.E: Amend the A-2 Zoning District.
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Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Lack of Affordable Housing overall
x Program 3.1.B: Housing for Extremely-Low Income Households; x Program 3.1.C: Density Bonus; and
x Program 3.1.G: Affordable Housing Overlay Zoning District. Lack of accessible units for individuals with disabilities x Program 3.2.A: Reasonable Accommodation Procedures.
Lack of Transitional and Supportive Housing/Emergency Shelters x Program 3.3.A: Zoning for Transitional and Supportive Housing; and x Program 3.3.B: Low-Barrier Navigation Centers.
Lack of access to information about Fair Housing rights x Program 5.1.A: Fair Housing Services;
x Program 5.1.B: Section 8 Rental Assistance; and
x Program 5.2.A: Shared Housing Information.
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.
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Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023
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Housing Constraints B
APPENDIX
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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-35 Tables
Table B-1 Residential Land Use Designations ............................................................................. 2 Table B-2 Residential Uses Permitted by Zone ........................................................................... 5 Table B-3 Residential Development Standards ........................................................................... 9 Table B-4 Summary of Community Planning & Building Fees (2022-2023) ........................ 21 Table B-5 Comparison of the City of Carmel-by-the-Sea and the City of Pacific Grove Average Design Review Fees ........................................................................ 24 Table B-6 Review/Approval Requirements and Processing Times ....................................... 28 Table B-7 Minimum Off-Street Parking Requirements ........................................................... 32
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Appendix B – Housing Constraints B-1 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 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 and housing ownership and development. In addition to local standards, the City follows building and design requirements put forth by State laws, the Uniform 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 and 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 could impact housing and support, or change additions to existing legislation. The City will update the Planning Regulations, 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)
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.
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Appendix B – Housing Constraints B-2 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 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.
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 Housing Element identifies permitted land uses and development intensities for all land within City boundaries. Permitted uses within the City include “Single-Family Residential” and “Multi-Family Residential.” The “Commercial/Residential” designation also permits mixed use building designations under Commercial Zoning 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/ac
Multi-Family Residential 33 du/ac 44 du/ac (with affordable housing) Commercial/Residential 33 du/ac
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 and it 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 east to California State Route 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 allows the City to process development applications more quickly than would occur without this certification and direct Attachment 5 Attachment 2
Appendix B – Housing Constraints B-3 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 permitting authority and oversight from the Coastal Commission. The LCP includes the following General Plan Elements: Land Use, Circulation, Coastal Access and Recreation, and Coastal Resource Management; Carmel Municipal Code Chapter 17 (Implementation Plan); and, the General Plan and Zoning Code.
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 two 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 districts provide for some residential uses above commercial uses or on ground floor after review and approval of a conditional uses permit. CC Central Commercial District;
SC Service Commercial; 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.
Attachment 5 Attachment 2
Appendix B – Housing Constraints B-4 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Commercial zoning districts that permit some residential uses include: Central Commercial District (CC), 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. Service Commercial (SC) 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. “Improved Parklands” (P-2) zoned areas permit single-family, senior citizen, 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) and “Senior Citizen Facility” (A-3) districts 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/).
Zoning regulations do not appear to pose any serious problems to the development of the remaining undeveloped residential sites. Rather, the challenges to developing the remaining sites have more to do with the design review and non-governmental constraints such as: site topography, available land, and construction costs. Regulations concerning building setbacks and open space are not unusually restrictive, and on-site parking is not required to be covered by a carport or garage.
The City’s zoning standards have been written with the unique aspects of the community in mind and have attempted to mitigate the issues of topographic and other environmental constraints.
Attachment 5 Attachment 2
Appendix B – Housing Constraints B-5 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 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 UnitsAccessory 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 Dwellings0-22 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 CareSmall Family R-L-5 P - P P-L-1 - - Large Family - C-4 - C C P-L-1 - - Group Residential - C - - - - - - Attachment 5
Appendix B – Housing Constraints B-6 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 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 2023NOTE: 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.
Attachment 5
Appendix B – Housing Constraints B-7 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Commercial Motel Uses in R-1 Residential Areas
Pursuant to coastal zone requirements, the City has recognized existing R-1 motels as an important coastal visitor asset and economic base in the community and there are a number of older nonconforming motels in the R-1 residential zoning district. These commercial establishments can be targeted to transition out of residential areas and be rehabilitated as multi-family residences. The properties are located in key prime residential areas. Enabling commercial uses to relocate to commercial zoning districts would diversify the housing stock by allowing the existing motels and hotels to be rehabilitated and refurbished into multi-family units. In order to encourage these properties to transition into permanent multi-family residences, and to retain the same number of hotel and motel rooms for the current businesses, the City will develop a program to allow the transfer of development rights of hotels and motels located in the R-1 zoning district to the commercial zoning district.
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 archaeological significant resources or environmentally sensitive habitat areas. The City current 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. An overlay district crafted to require a minimum density of 33 du/ac for specific sites identified in the Site Inventory would be another tool to encourage efficient use of property by requiring a minimum density that a project would need to achieve if in the affordable housing overlay zone. The City will craft an affordable housing overlay zone with a minimum density of 33 du/ac.
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 and 30 feet or less, which can render higher allowable densities (up to 44 du/ac with affordable Attachment 5 Attachment 2
Appendix B – Housing Constraints B-8 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 housing) unachievable. The City has discussed the possibility of increasing height limits, but community resistance to increasing the height limit has been consistent (e.g., damaging to the character of the downtown). Some community members have supported the allowance of 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.
The Community and Cultural Center Zoning 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 Zoning District to include clear development standards as a means to encourage affordable senior citizen 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 bonus for affordable units. Additionally, the existing floor area bonus for affordable units really only incentivizes creation of moderate units, not low or very low (see CMC 17.14.140.D.1).
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Appendix B – Housing Constraints B-9 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 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/acre 44 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 2023NOTE: 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.
Attachment 5
Appendix B – Housing Constraints B-10 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Site Plan and Design Review
Architectural design is important to 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 pallets, window treatments, 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 it ability to provide housing for lower-income households and by extension housing for a less affluent and racially 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 have made Carmel their home over the decades came from modest beginnings and travelled to the area not to live in multi-million-dollar 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. All of which leads back, in this instance, to the City’s design study process, which involves multiple layers of overly exhaustive, and depending on the scale and size of the project, prohibitively time-consuming and expensive review components.
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% 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 of 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.
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Appendix B – Housing Constraints B-11 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 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. Planning staff will review the application for completeness and provide early feedback.
2. Staff Review and Decision – Staff will review the application for completeness and consistency with the Residential Design Guidelines. If the application is incomplete or inconsistent with 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 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, and (4) an Affidavit of Posting of the Notice of Approval.
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 will also be mailed 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 Notice of Authorized Work. The approval packet will inform the applicant if a Building Permit or Notice of Authorized Work is required.
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 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 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 Attachment 5 Attachment 2
Appendix B – Housing Constraints B-12 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 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 Database) – Projects on historic sites are subject to additional review from a city-retained 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.
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. The Planning Division 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.
9. Final Approval and Appeal Period – The Planning Commission’s approval is subject to a 10- working day appeal period. Story poles must remain 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.
Commercial Design Review Process
In addition, 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.
Attachment 5 Attachment 2
Appendix B – Housing Constraints B-13 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Commercial Track Two Design Review
The Planning Commission shall review and approve Track Two applications. This is a discretionary process for reviewing substantial design changes in commercial zoning districts and the R-4 district.
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 (last updated in 2022). 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.
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.
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.
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.
Attachment 5 Attachment 2
Appendix B – Housing Constraints B-14 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 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 (50%) 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 fire sprinklers and presents 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.
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.
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Appendix B – Housing Constraints B-15 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 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 provide a higher level of security to the property if there is a full-time resident, add an income stream to a property that lies vacant for a high proportion of the year and will 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 which can add to confusion and lack of clarity to property owners interested in construction ADUs and is in the process of updating the ADU Ordinance to incorporate state laws that have expanded since 2017.
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 850 square feet for a one-bedroom and 1,000 square feet for a two-bedroom unit. 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 represent a costeffective method requiring a building permit to increase the City’s housing stock. These opportunities could be strong candidates for prioritization of the City’s limited water distribution.
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Appendix B – Housing Constraints B-16 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 The City has number of hotel and motel units that would greatly benefit from having an affordable on-site manager’s unit. These units would alleviate the current lack of housing that many employees in Carmel face. As an incentive, the City can offer an additional bonus hotel room to offset loss of revenues for the business owners.
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 sizes.
The City of Carmel-by-the-Sea has included a new program in this 6th Cycle Housing Element to revise its Zoning Code to be consistent with ADU and JADU state law, incentivize manager’s units in existing hotels and motels 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 wood-frame housing. 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.
Multi-Family Rental Housing
Multi-family and duplex housing units constituted 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 remove the CUP for multi-family developments up to 33 du/ac.
Objective Design and Development Standards
The City currently lacks any adopted objective design guidelines. Detailed subjective design guidelines for R-1 and high-level subjective design guidelines for commercial zones are in place.
While the City’s single-family design guidelines are being updated this year, the City is not incorporating objective standards for multi-family affordable projects.
Attachment 5 Attachment 2
Appendix B – Housing Constraints B-17 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 The lack of Objective Design Standards could pose 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 would provide a measure of clarity that proposed developments will be measured against and provides the community with assurance that developments will conform with measurable objective standards.
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 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 Zoning Ordinance 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 Attachment 5 Attachment 2
Appendix B – Housing Constraints B-18 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 families. Pursuant to State law (Senate Bill 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.
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 Citizen Housing
As previously noted, several zoning districts within the City already permit and accommodate for senior citizen housing. The A-2 zoning district (Cultural and Community Center, i.e., the Sunset Center) and the A-3 zoning district (Senior Citizen Housing) permits by-right housing for senior citizens. 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.
Attachment 5 Attachment 2
Appendix B – Housing Constraints B-19 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 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 permit 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 permit residential care facilities within certain zoning districts. Residential care facilities include facilities that are licensed by the State of California to provide living 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:
Attachment 5 Attachment 2
Appendix B – Housing Constraints B-20 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 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.
Short-Term Rentals
In order to preserve Carmel-by-the-Sea’s residential character, no home or subordinate 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).
Attachment 5 Attachment 2
Appendix B – Housing Constraints B-21 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 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
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 Attachment 5 Attachment 2
Appendix B – Housing Constraints B-22 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Application/Permit Type Fee
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 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
Attachment 5 Attachment 2
Appendix B – Housing Constraints B-23 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Application/Permit Type Fee
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 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.
Attachment 5 Attachment 2
Appendix B – Housing Constraints B-24 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 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:
Carmel Unified School District;
California American Water (Cal-Am);
Carmel Area Wastewater District;
Monterey Peninsula Water Management District; and
Carmel Fire Department.
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). 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. According to the water district, the City, as of March 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.
Attachment 5 Attachment 2
Appendix B – Housing Constraints B-25 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 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.
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.
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 a second 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 and Public Works Departments 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 construction of new single-family homes, duplexes or multi-family developments. However, accessory dwelling units are exempt from the Design Review Ordinance and must only meet the location and development standards outlined in the Accessory Dwelling Unit Ordinance (Chapter
17.08.050 of the municipal code).
Applications for building and related permits are generally processed in as an efficient manner as practical in Carmel-by-the-Sea. Although the Historic Resources Board, the City Council and the Planning Commission only meet once a month, determination on a project is usually reached in one meeting or two (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 consideration. There is no separate Design Review Board in City/Jurisdiction, with the Planning Commission conducting design review. The typical processing time for discretionary review is therefore four to six months, depending on the level of design study required (Track 1 or Track 2), 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 Attachment 5 Attachment 2
Appendix B – Housing Constraints B-26 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 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 or property owner (Project Applicant) submits a development application, required fees, and application materials. Often times the developer will have met informally with the Planning Department 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 through the relevant City Departments, including Building, Fire, and Public Works. A planner is assigned to serve as the developer’s liaison, helping to expedite the permit process and coordinating the department reviews. During a 30-day review period for completeness, individual departments assess the appropriate Design Study track (Track 1 or Track 2), 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 and 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 or replace any significant trees, 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.
Attachment 5 Attachment 2
Appendix B – Housing Constraints B-27 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023
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. In some instances (for example, a property rezoning), the project will require City Council approval. After projects receive approval by the Planning Commission there is a tenဨday appeal period during which the project may be appealed to the City Council. The City Council decision is final. There are different levels of planning review/approval depending on the scope of work proposed.
7. Plan Check - After the project receives any required approvals, the full plans may be submitted to the Building Department for a plan check for building permits. The plans will be routed to the City’s Public Works and Planning Departments. 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 Department 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 project plans receive approval from the relevant departments, the Building Department 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.
Table B-6 shows the typical processing time for a residential development application.
Both 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.
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Appendix B – Housing Constraints B-28 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Table B-6 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
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 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 yet received an application under these provisions.
As previously noted, the portion of the City located within the California Coastal Zone is not subject to SB 35 (see Government Code Section 65913.4(6)).
SB 9 California Housing Opportunity and More Efficiency (HOME) Act SB 9, also known as the California Housing Opportunity and More Efficiency (HOME) Act, is a state bill that requires cities to allow one additional residential unit onto parcels zoned for singleAttachment 5 Attachment 2 Appendix B – Housing Constraints B-29 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 dwelling units. Since the adoption of this section of the Government Code, the City has adopted an urgency ordinance in January 2022 and will update its SB 9 Ordinance for formal adoption by early 2023 to facilitate subdivision under SB 9. The City has not received any inquiries of interest for SB 9 lot splits and is not currently processing any SB 9 application.
Infrastructure Constraints
Water Supply
The primary infrastructure constraint to the development of housing in Carmel is the lack of potable water. The lack of a reliable available water supply continues to limit growth in Carmel and throughout the Monterey Peninsula region.
Carmel is under the jurisdiction of the Monterey Peninsula Water Management District (MPWMD) and receives its water from the California-American Water Company (Cal-Am). The MPWMD has permit authority over the production and distribution of all water supplies within the Monterey Peninsula region, and allocates water supplies to cities and County areas within its jurisdiction. Water service by Cal-Am is constrained by State Water Resources Control Board (SWRCB) Order WR 95- 10, which determined that approximately 70 percent of Cal-Am supply is based on unlawful diversion from the Carmel River. Order 95-10 requires that any new water supply be used to reduce diversions from the Carmel River prior to allowing new users. Furthermore, SWRCB issued a Ceaseand-Desist order to Cal-Am in 2008 to further restrict water use which limits the placement of new water meters to service new development.
The City has approximately 2.661 acre-feet of available water1. This is the only water available until the District supplies increase and new allocations are made to each city in the District. Based on current supplies, sufficient water may not be available to fully accommodate additional development commensurate with the City’s total RHNA (349 units). The City will continue to work with local and regional agencies to explore options for additional water supplies during the 6th cycle Housing Element planning period.
The City includes a program to work with local and regional agencies to pursue new water supplies and includes prioritizing water allocation for affordable housing through the development of a water distribution policy.
Wastewater
The Carmel Area Wastewater District (CAWD) collects and conveys wastewater from a business or residence to the wastewater treatment plant using underground pipes and lift stations. The CAWD collection system is comprised of approximately 81 miles of gravity sewers ranging in size from 6 inches to 27 inches in diameter together with nearly four (4) miles of force mains, seven (7) pump stations, and over 1,500 manholes.
1 March 2023 MPWMD Monthly Allocation Report
Attachment 5 Attachment 2
Appendix B – Housing Constraints B-30 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 The major trunk sewers include the Carmel Valley Interim Trunk Sewer which serves Rancho Rio Vista, portions of Carmel Views, the Carmel Rancho Shopping Center, Hacienda Carmel, Del Mesa Carmel, Quail Meadows and outlying areas at the mouth of the Carmel Valley; the Hatton Canyon Sewer (which joins the Carmel Valley Trunk sewer at the intersection of State Route 1 and Rio Road) serves the High Meadows, Carmel Knolls and portions of the Carmel Hills subdivisions; two trunk sewers serve the city of Carmel and the Hatton Fields areas.
Pump stations are located at (1) the westerly boundary of Hacienda Carmel, (2) the westerly terminus of 8th Avenue (at Scenic Drive), (3) the intersection of Monte Verde Street and Sixteenth Avenue, (4) west side of Scenic Road approximately 200 feet north of Ocean View Avenue, (5) the end of Calle La Cruz (Carmel Meadows) (6) at the westerly boundary of the Carmel Meadows subdivision approximately 750 feet southwesterly of the Calle La Cruz pump station and (7) on the West side of Highlands Drive approximately 100 yards from Highway 1. All pump stations have been upgraded to allow remote monitoring and have capabilities for standby power and emergency bypass.
The Districts’ 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 units2.
On and Off-Site Improvement Standards
Since the City is built-out, all infrastructure, including curbs, gutters, sidewalks, streets and utilities are in place. Development of residential units involves hooking up to the existing utilities, which already exist in the right-of-way. All electrical distribution lines, telephone, cable television, and similar service wires or cables, which provide services to new development, are to be installed underground. Typical infrastructure costs in the CC, SC, RC, and R-4 districts are limited to sidewalk, curb, and gutter improvements, undergrounding of utility wires, stormwater drainage improvements, and landscaping. The City’s Municipal Code does not contain requirements for subdivision off-site improvements. However, the Code includes a chapter on requirements related to streets, sidewalks, and public places.
Sidewalks
Construction of sidewalks is not required in residential areas of the City. If sidewalk construction is proposed, a permit is required. The proposal must show that the construction of the sidewalk or walkway will preserve public safety, health or welfare, resolve a serious drainage problem, or that it would otherwise benefit the general public. The construction of the sidewalk or walkway must 2 May 17, 2023 email correspondence with CAWD
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Appendix B – Housing Constraints B-31 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 follow the natural contours of the land, and no less than 50 percent of the sidewalk area in front of any building site must be retained in planting. There are no specific requirements regarding the width of the sidewalks.
Driveways
Construction of a driveway requires a permit from the Department of Community Planning and Building in conjunction with the Director of Public Works and the Director of Forest, Parks and Beach.
Landscaping
Sidewalk street trees are encouraged by the City, with the City Forester determining 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. All new mini-park installations require a review by the Staff Traffic Committee and approval by the Planning Commission.
Streets
The 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 (with the exception of some of the downtown thoroughfares) has been a conscious effort on the part of residents to maintain a “village in a forest” atmosphere. The City has not established standardized street widths requirements. As Carmel is a built-out city and new development will occur as infill or redevelopment on parcels within the established street grid, construction of new streets is not anticipated. Therefore, street standards will have no impact on the cost and supply of housing.
Parking Requirements
The City’s parking requirements are generally in line with typical parking requirements. In the R-1 District, one (1) on-site parking space per dwelling must be provided on sites of 8,000 square feet or less in area and two (2) on-site parking spaces per dwelling on sites larger than 8,000 square feet in area. One (1) parking space must also be provided for each guesthouse. (CMC 17.10.030(F)(1)). R-1 zone sites with Class II accessory dwelling units are required provide a minimum of one (1) parking space on-site at the time of approval. Upon enlargement or improvement of a Class II unit, one (1) parking space each for the primary dwelling on the site and for the accessory dwelling unit are required. Improvements to accessory dwelling units are allowed even if one or both parking spaces Attachment 5 Attachment 2
Appendix B – Housing Constraints B-32 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 encroaches into a setback. Sites with Class III or IV accessory dwelling units are required to provide one parking space behind all setbacks for the accessory dwelling unit and are required to comply with all parking requirements established in Chapter 17.38 CMC, Off-Street Parking Requirements, for other development on the site. These parking standards are low enough to avoid posing a constraint to development. To the degree that these standards conflict with new state law regarding accessory dwelling units, they will be corrected as the City brings its ADU regulations into line with the most recent changes in state law (see the discussion above under the heading “Special Housing Topics”).
Table B-7, summarizes off-street parking requirements as shown in Table A of 17.38.020, for all uses, projects, developments and redevelopments. New projects or developments shall only be allowed when meeting all parking requirements of this chapter and the requirements of any 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-7 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 5 Attachment 2
Appendix B – Housing Constraints B-33 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 The City has adopted a reduced parking requirement 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.
The City’s development regulations are consistent with California housing law, and the Zoning Code does not pose an unnecessary constraint to the development of affordable housing. However, because housing production has been limited in Carmel-by-the-Sea, the Housing Element Update includes programs to further incentivize development activity. Depending on site-specific conditions - such as the presence of significant trees or historic resources and degree of incompleteness of submitted plans, some applicants may find the City’s design review process to be lengthy. The City’s review fees, while comparable with those of surrounding jurisdictions, can pose a barrier for applicants without sufficient financial resources.
The existing development constraints attributable to governmental (City) processes, and with possible solutions where feasible, are summarized below:
1. The City’s design review (design study) process may be lengthy for projects involving significant trees, historic resources, and/or underdeveloped plans. Following are governmental bodies responsible for decision-making through the course of development review:
Forest and Beach Commission (if significant tree removal is proposed); Historic Resources Board for historic properties and also for non-historic properties in the Conservation District (one hearing to ensure development is compatible with neighborhood context);
Planning Commission: One hearing, minimum, for commercial and multi-family residential projects. Preliminary hearing/review for commercial/multi-family is optional but encouraged. Two hearings, minimum (one Concept hearing, one Final hearing) for single-family projects;
City Council review on appeal; and
Coastal Commission review on appeal (Coastal Zone Appeal jurisdiction only).
2. The City’s design review process may be financially prohibitive for lower income households and likely most affordable housing projects. Carmel does not charge impact fees. Therefore, waiving impact fees are not a viable solution to incentivize affordable units.
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Appendix B – Housing Constraints B-34 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023
3. There is community concern that increasing the existing two-story height limit (24-feet in R-1 and 24-30 feet in commercial zones depending on adjacent land uses) would negatively impact the unique character of Carmel.
Solution: Encourage mezzanines as a third story at the building interior (if it can be accomplished without appearing as a three-story building); and Solution: Consider a third story setback as an incentive for fully affordable housing projects.
4. The City does not have an inclusionary housing ordinance, but a density bonus is available via a conditional use permit which may allow up to 44 du/acre as long as the project includes 100% affordable units.
Solution: Consider replacing the use permit requirement at 34+ du/acre currently used as the mechanism to require the construction of affordable housing and instead consider an inclusionary ordinance that encourages special needs housing.
5. The City’s existing residential and commercial design guidelines include both objective and subjective standards.
Solution: Consider developing a set of strictly objective design standards to be used for affordable housing projects.
6. Many properties are listed on City’s Inventory of Historic Resources, which may limit the scope of possible alterations or additions and use flexibility. Solution: Educate the community about how to appropriately design projects that meet the Secretary of the Interior’s Standards, as required by local/state/federal law.
Location in the Coastal Zone
Carmel-by-the-Sea is located in the California Coastal Zone and is therefore subject to a host of regulations that are not present in communities outside the Coastal Zone. The presence of additional land use regulation via the Local Coastal Program, in general, means that housing development in Carmel-by-the-Sea faces a high bar to succeed. The additional hurdles presented by Coastal Zone regulations represent an additional layer of complexity to the City’s already timeconsuming review process.
Conversion of Motels for Multi-Family Housing (Opportunity) The City will explore the development of a program to allow the transfer of development rights of hotels and motels located in the R-1 zoning district to the commercial zoning district. This might allow older motels to convert to multi-family housing and thereby provide a new source of affordable housing in the community.
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Appendix B – Housing Constraints B-35 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Accessory Dwelling Units
The City of Carmel-by-the-Sea last updated it ADU ordinance in 2017, and therefore the City’s regulations addressing ADUs are out of date. The City has included a new program in this 6th Cycle Housing Element to revise its Zoning Code to be consistent with ADU and JADU state law, incentivize manager’s units in existing hotels and motels and develop standardized ADU plans.
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.
Multi-Family Housing
Currently, the City allows multi-family housing without a conditional use permit (CUP) at densities up to 22 dwelling units per acre. In order to provide additional incentive to build multi-family housing, the City will amend the Code to remove the CUP for multi-family developments up to 33 du/ac.
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.
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.
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 5 Attachment 2
Appendix B – Housing Constraints B-36 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 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 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 a jurisdiction like Carmel-by-the-Sea.
Construction Costs
Construction costs associated with housing development are generally comprised of both soft and hard costs. Soft costs for housing development include the cost of architectural, engineering, accounting, legal and other professional services, as well as the cost of obtaining permits and paying government-imposed fees. Carrying costs and the cost of construction financing can also be considered soft costs. Hard costs include the costs of labor and materials and can also include impact fees and costs accumulated through permitting delays.
Hard costs are very high in Carmel-by-the-Sea, and both the high cost of labor and the high cost of materials could be considered constraints on housing development. Hard construction costs can vary significantly across the City based on the varied and unique geographic conditions throughout the county. Hard costs can be higher than average in Carmel-by-the-Sea.
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 the increasing inflation, the possibility of recession, geopolitical tensions, businesses rebounding and responding to changes brought on by the COVID-19 pandemic, and ongoing supply chain disruptions.
Requests to Develop at Densities Below Those Permitted
New State Housing Element law now requires the non-governmental constraints analysis to evaluate developer requests to build at densities below the density identified in the Housing Element sites inventory. Carmel-by-the-Sea does not receive requests to develop below densities and this is not a constraint to development.
Attachment 5 Attachment 2
Appendix B – Housing Constraints B-37 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Small Lots and Large Units
Property within Carmel-by-the-Sea is typically smaller than a half-acre, which can be a constraint for housing production. Lot consolidation incentivization 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 luxury expensive housing options. A minimum density requirement is being considered with the Housing Priority Overlay Zone for sites included with the Sites Inventory.
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. Tourists seeking seasonal homes skews the demand for housing, making it challenging for Carmel-by-the-Sea employees to find available housing and driving up rents and home prices. Rising housing prices decrease the stock of housing affordable to Carmel-by-the-Sea residents, further spurring the statewide housing shortage. Programs to address this issue are included in the 6th cycle Housing Element including encouraging Accessory Dwelling Units and the establishment of an Affordable Housing Trust Fund which could be funded by a vacancy tax.
Length of Time between Application Approval and Building Permit Issuance
New Housing Element law now also requires an examination of the length of time between receiving approval for a housing development and submittal of an application for building permits.
The time between application approval and building permit issuance is influenced by a number of factors, none of which are directly impacted by the City. Factors that may impact the timing of building permit issuance include: required technical or engineering studies; completion of construction drawings and detailed site and landscape design; securing construction and permanent financing; and retention of a building contractor and subcontractors. Generally, building permits are submitted in a timely manner after planning entitlements; however larger projects have experienced longer timeframes given supply chain issues and labor shortages, neither of which the City controls.
Environmental Justice Element Requirement
An Environmental Justice Element or equivalent is not required for Carmel-by-the-Sea because no disadvantaged communities exist within the city’s boundaries (as defined in Gov. Code, § 65302, (h)(4)(A)). “Disadvantaged communities” means an area identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code or an area that is a lowincome area that is disproportionately affected by environmental pollution and other hazards that can lead to negative health effects, exposure, or environmental degradation.
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Appendix B – Housing Constraints B-38 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Environmental Constraints
Environmental constraints affecting housing include geologic and seismic conditions and fire hazards, which are a threat to the built environment. However, the primary environmental constraint to the development of housing in Carmel-by-the-Sea is the limited water supply as discussed above.
These constraints are discussed in detail below.
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 increase the fire hazard. In addition, the Pescadero Canyon, Del Monte Forest, and Mission Trails Park located adjacent to the City, introduces 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 Carmel-by-theSea, identifies a large area encompassing northern and eastern portions of the City as a Very High Fire Hazard Severity Zone. In such zones, roofs and exterior walls of new buildings must be made of noncombustible materials. It should be noted that all LRA maps across the state of California are undergoing updates and according to CAL FIRE are anticipated to be released sometime in 2024.
Obtaining insurance for structures is increasingly difficult given the Very High Fire Hazard Severity Zone which poses a constraint to residential development.
The City of Carmel-by-the-Sea is part of a regional coordination effort with other Monterey County cities, including Pacific Grove and Monterey. These neighboring agencies provide aid to each other on an as-needed basis. Fire protection for the City is provided by the City of Monterey Fire Department based out of the Carmel Fire Station located on 6th Avenue.
Emergency and Evacuation Planning
Emergency response is provided through coordinated efforts by the cities of Monterey, Pacific Grove, and Carmel. Emergency planning and evacuation pose many challenges for the City due to the precarious topography and narrow City roads. The General Plan Safety Element (both the currently adopted version and the updated Safety Element being prepared in conjunction with the 6th Cycle Housing Element) provides an in-depth analysis of emergency and evacuation planning and protocols, as well as scenario mapping and evacuation route mapping. City staff generally note that particularly in Carmel, where small lots make meeting egress requirements difficult at higher densities, incentivizing lot mergers in the commercial district will help address concerns and challenges associated with emergency and evacuation planning across the City.
Seismic
The entire California Coast and Coast Range area is prone to earthquakes. Based on history, the probability of a moderate or high magnitude earthquake occurring in the greater Monterey region in Attachment 5 Attachment 2
Appendix B – Housing Constraints B-39 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 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.
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. Mission Fields, a residential area, is within the 100-year floodplain, as are the Carmel Center/Carmel Rancho shopping centers (though each of these areas are outside of the City limits). Carmel Beach is subject to flooding during high tide and beach sand is lost yearly during winter storms. The beach is a 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 Attachment 5 Attachment 2
Appendix B – Housing Constraints B-40 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 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. This use mitigates some of the damage that would normally result from the retention of water on the site.
The City’s general plan, via the current Safety Element includes 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 Cit 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).
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.
Attachment 5 Attachment 2
Housing Sites Inventory Analysis C
APPENDIX
Attachment 5 Attachment 2
Attachment 5 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 Site Inventory ......................................................................................................................... C-3 D.4 Conclusion ............................................................................................................................ C-33 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-29 Figures
Figure C-1 Potential Sites Inventory Map .................................................................................. C-4 Figure C-2 Sunset Center Lots Site (Site #1) ............................................................................ C-6 Figure C-3 Ulrika Plaza Site (Site #2) ......................................................................................... C-7 Figure C-4 City Public Works (Vista Lobos) Site (Site #3) ..................................................... C-8 Figure C-5 Carmel Realty Office Site (Site #4) ......................................................................... C-9 Figure C-6 Pine Inn Parking Lot Site (Site #5) ...................................................................... C-10 Figure C-7 Bruno’s Market Site (Site #6)................................................................................ C-11 Figure C-8 Three Garages Site (Site #7) ................................................................................. C-12 Figure C-9 First Church of Christ Parking Lot Site (Site #8) .............................................. C-13 Figure C-10 Red Cross Site (Site #9) ......................................................................................... C-14 Figure C-11 Café Carmel Site (Site #10) ................................................................................... C-15 Figure C-12 Wells Fargo Site (Site #11) .................................................................................... C-16 Figure C-13 Esperanza 7th and Dolores Site (Site #12) .......................................................... C-17 Figure C-14 7th and Mission Site (Site #13) .............................................................................. C-18 Attachment 5 Attachment 2
Figure C-15 Carmel Foundation Site (Site #14) ....................................................................... C-19 Figure C-16 Carmel Presbyterian Site (Site #15) ...................................................................... C-20 Figure C-17 5th and Juniper Site (Site #16) ................................................................................ C-21 Figure C-18 American Legion Site (Site #17) ........................................................................... C-22 Figure C-19 NW Corner Mission & 7th Site (Site #18) .......................................................... C-23 Figure C-20 7th 2 SW of Mission Site (Site #19) ....................................................................... C-24 Figure C-21 NE Corner Monte Verde & 7th Site (Site #20) ................................................... C-25 Figure C-22 Carmel Resort Inn Site (Site #21) ......................................................................... C-26 Attachment 5 Attachment 2
Appendix C – Housing Sites Inventory Analysis C-1 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Appendix C
Housing Sites Inventory Analysis
C.1 Introduction
The Association of Monterey Bay Area Governments’ forecasts that the two-county Monterey Bay Area will add 32,867 new households between 2020 and 20451 . For the eight-year time frame
covered by this Housing Element Update, HCD has identified the region’s housing need as 33,274 units. The total number of housing units assigned by HCD is separated into four income categories that cover housing types for all income levels, from very low-income households to market rate housing. This calculation, known as the Regional Housing Needs Allocation (RHNA), is based on population projections produced by the California Department of Finance as well as adjustments that incorporate the region’s existing housing need. The adjustments result from recent legislation requiring HCD to apply additional adjustment factors to the baseline growth projection from the California Department of Finance, in order for the regions to get closer to healthy housing markets.
To this end, adjustments focus on the region’s vacancy rate, level of overcrowding and the share of cost burdened households, and seek to bring the region more in line with comparable ones. These new laws governing the methodology for how HCD calculates the RHNA resulted in a significantly higher number of housing units for which the Monterey Bay Area must plan compared to previous cycles.
C.2 Regional Housing Needs Allocation
AMBAG adopted its Final 6th Cycle Regional Housing Needs Allocation Plan 2023-2031 in October 2022.
For Carmel-by-the-Sea, the proposed RHNA to be planned for this cycle is 349 units. Details are provided below.
RHNA Summary
Carmel-by-the-Sea’s share of the regional housing need for the eight-year period from 2023 to 2031 is 349 units, which is a 1,125 percent increase over the 31 units required by the 2014 to 2023 RHNA.
The housing need is divided into the four income categories of housing affordability. Table C-1 shows Carmel-by-the-Sea’s RHNA for the planning period 2023 – 2031. 1 Final 2022 Regional Growth Forecast, AMBAG, November 18, 2020 Attachment 5 Attachment 2
Appendix C – Housing Sites Inventory Analysis C-2 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 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 31, 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
Attachment 5 Attachment 2
Appendix C – Housing Sites Inventory Analysis C-3 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 C.3 Site Inventory
The purpose of the sites inventory is to identify and analyze specific sites that are available and suitable for residential development from 2023-2031 in order to accommodate Carmel-by-the-Sea’s assigned 349 housing units. The City doesn’t build the housing but creates the programs and policies to plan for where it should go and how many units could be on potential sites.
Overview of Selected Sites
This section provides information on the current list of potential sites under consideration for determining how the City will accommodate the State’s required minimum of 349 housing units.
Figure C-1 shows an overview of the potential sites inventory map that has been developed for Carmel-by-the-Sea’s 6th Cycle Housing Element Update.
Key Housing Opportunities
This section provides details on vacant and underutilized sites that are available for housing development in the city. The City has identified 35 sites capable of accommodating 283 housing units. In addition, the City has developed a program of new incentives for 46 hotel owners in the community to house lower-income employees in existing hotel rooms. Finally, the City has an active accessory dwelling unit program that is capable of providing additional lower-income housing.
Altogether, these housing resources have the potential to accommodate approximately 115 percent of Carmel’s RHNA. Each of these opportunities is discussed in more detail below.
The City’s estimate of number of housing units that can realistically be developed on key housing opportunity sites is considered conservative. What has been omitted from this list are 43 vacant sites capable of accommodating 43 market-rate housing units, all of which were previously identified in Carmel’s 5th Cycle Housing Element.
Attachment 5 Attachment 2
Appendix C – Housing Sites Inventory Analysis C-4 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Figure C-1 Potential Sites Inventory Map
Attachment 5 Attachment 2
Appendix C – Housing Sites Inventory Analysis C-5 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 The capacity estimate for these primary underutilized sites is supported, in part, by a recent 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.
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. Achieving this level of construction on the sites identified as primary underutilized sites would be dependent on a number of factors, not the least of which would be Carmel’s discretionary development review process. The City has recognized this factor and has included a new program in this 6th Cycle Housing Element update to permit redevelopment of all of underutilized sites identified herein without the need for a conditional use permit (i.e., “by right”). While significant hurdles remain—construction costs, design review, etc.—this new program removes the single greatest obstacle to achieving the City’s housing objectives for these underutilized sites. 2 ECO Northwest, January 27, 2023. “Housing Element Analysis for the City of Carmel by-the-Sea.” Attachment 5 Attachment 2
Appendix C – Housing Sites Inventory Analysis C-6 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Site #1: Sunset Center Lots Site
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. 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 design
competition could be a program to incentivize local
architects to partner with non-profit affordable
housing developers.
The south lot could also be a viable housing
development site. Figure C-2 shows a photograph of
the North Sunset Center Lots Site.
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 Ad Hoc
Committee Community
Meeting Attendee
Attachment 5 Attachment 2
Appendix C – Housing Sites Inventory Analysis C-7 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Site #2: Ulrika Plaza Site
Number of Housing Units: 12
Description: 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.
Figure C-3 Ulrika Plaza Site (Site #2)
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Appendix C – Housing Sites Inventory Analysis C-8 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Site #3: City Public Works (Vista Lobos) Site
Number of Housing Units: 42
Description: 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, though opportunities exist to cut into the slope at street grade.
Figure C-4 City Public Works (Vista Lobos) Site (Site #3) Attachment 5 Attachment 2
Appendix C – Housing Sites Inventory Analysis C-9 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Site #4: Carmel Realty Office Site
Number of Housing Units: 4
Description: This site is a 0.18-acre corner-lot parcel that is currently owned and used for office space by Carmel Realty. It has low lot coverage and scores well with a land-to-improvement ratio. It is a single-story structure that is surrounded on all sides by structures that are at least two stories tall. The site was previously used in the RHNA 5 inventory.
Figure C-5 Carmel Realty Office Site (Site #4)
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Appendix C – Housing Sites Inventory Analysis C-10 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Site #5: Pine Inn Parking Lot Site
Number of Housing Units: 5
Description: This 0.18-acre site is the parking lot for the Pine Inn. The site is not attached or adjacent to the inn, it is a separate parcel across the street. As driving patterns and parking needs change, this site could be a future candidate for redevelopment.
Figure C-6 Pine Inn Parking Lot Site (Site #5)
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Appendix C – Housing Sites Inventory Analysis C-11 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Site #6: Bruno’s Market Site
Number of Housing Units: 17
Description: This site is two adjacent parcels totaling over 0.53 acres under the same ownership. The site includes a parking lot that leads to low lot coverage. It also scores in the top tier for land-to-improvement ratio. It could be a potential redevelopment candidate.
Figure C-7 Bruno’s Market Site (Site #6)
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Appendix C – Housing Sites Inventory Analysis C-12 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Site #7: Three Garages Site
Number of Housing Units: 7
Description: This site would be an assemblage of three equal sized parcels totaling 0.33 acres.
Two of the parcels are under the same ownership, and one was previously used in the RHNA 5 inventory. Existing uses include a site with parking and three attached garages, and a commercial building used for real estate sales. Combined the site scores in the top tier for land-toimprovement ratio and in the mid-tier for value per square foot.
Figure C-8 Three Garages Site (Site #7)
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Appendix C – Housing Sites Inventory Analysis C-13 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Site #8: First Church of Christ Parking Lot Site
Number of Housing Units: 9
Description: This site is a parking lot used by the First Church of Christ. It is three separate tax lots totaling 0.28 acres. Assessor’s records have missing values for ownership on the two southern parcels but given its existing use we assume that all three parcels are owned by the Church. In 2020, the State of California passed AB 1851, commonly referred to as the “yes in God’s backyard” bill. This bill makes it easier for religious institutions to convert excess parking to affordable housing by prohibiting a local agency from requiring the replacement of religioususe parking spaces that a developer of a religious institution affiliated housing development project proposes to eliminate as part of that housing development project. Redevelopment of the structures on the site would require a zone change.
Figure C-9 First Church of Christ Parking Lot Site (Site #8) Attachment 5 Attachment 2
Appendix C – Housing Sites Inventory Analysis C-14 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Site #9: Red Cross Site
Number of Housing Units: 5
Description: This site includes two adjacent parcels owned and used by the American Red Cross. Collectively the site is 0.18 acres. Because the site is owned by a nonprofit organization it does not have Assessor’s values to calculate redevelopment metrics. However, site inspection confirms a low intensity use. Because the 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.
Figure C-10 Red Cross Site (Site #9)
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Appendix C – Housing Sites Inventory Analysis C-15 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Site #10: Café Carmel Site
Number of Housing Units: 3
Description: All single-story downtown buildings can be explored as opportunities for densification. Site orientation, existing and surrounding uses, and access are contributing factors to feasibility. The Café Carmel site pictured is one example of a single-story commercial property with two-story building on either side. The Café Carmel site specifically scores in the top tier for land-to-improvement ratio and has a land value around $100 per-square-foot. The site was previously used in the RHNA 5 inventory.
Figure C-11 Café Carmel Site (Site #10)
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Appendix C – Housing Sites Inventory Analysis C-16 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Site #11: Wells Fargo Site
Number of Housing Units: 8
Description: 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 RHNA 5 Housing Element inventory. It scores in the top tier for land-toimprovement 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.
Figure C-12 Wells Fargo Site (Site #11)
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Appendix C – Housing Sites Inventory Analysis C-17 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Site #12: Esperanza 7th and Dolores Site
Number of Housing Units: 15
Description: 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 (8) market-rate apartment units.
Figure C-13 Esperanza 7th and Dolores Site (Site #12)
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Appendix C – Housing Sites Inventory Analysis C-18 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Site #13: 7th and Mission Site
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. However, it’s value per-square-foot is high at nearly $500 per-square-foot, making acquisition of the property less likely.
Figure C-14 7th and Mission Site (Site #13)
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Appendix C – Housing Sites Inventory Analysis C-19 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Site #14: Carmel Foundation Site
Number of Housing Units: 20
Description: 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 indicate 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.
Figure C-15 Carmel Foundation Site (Site #14)
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Appendix C – Housing Sites Inventory Analysis C-20 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Site #15: Carmel Presbyterian Site
Number of Housing Units: 36
Description: This site is five adjacent parcels totaling almost 1.1 acres. Over a third of the site is a parking lot. See previous comments about AB 1851. The site is outside of the commercial core and would require a zone change to facilitate redevelopment beyond housing construction within the existing parking lot area.
Figure C-16 Carmel Presbyterian Site (Site #15)
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Appendix C – Housing Sites Inventory Analysis C-21 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Site #16: NW Corner Juniper & 5th Site
Number of Housing Units: 3
Description: This is a corner lot site totaling 0.18 acres. The existing use is a parking lot and single-story commercial building. The site was included in the RHNA 5 inventory. It scores in the mid-tier for both redevelopment metrics.
Figure C-17 5th and Juniper Site (Site #16)
Attachment 5 Attachment 2
Appendix C – Housing Sites Inventory Analysis C-22 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Site #17: American Legion Site
Number of Housing Units: 5
Description: This site is approximately 0.18 acres that is immediately adjacent to the Red Cross Site (Site #9). This site was not included in the RHNA 5 inventory. The existing use is the American Legion building. City staff have identified this site because it is underutilized and owned by a quasi-public organization. It’s possible that this site could be combined with the Red Cross site to yield a larger affordable housing project.
Figure C-18 American Legion Site (Site #17)
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Appendix C – Housing Sites Inventory Analysis C-23 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Site #18: NW Corner Mission & 7th Site
Number of Housing Units: 8
Description: This site is approximately 0.37 acres. The existing use is single-story commercial building. The site was included in the RHNA 5 inventory. NW Corner of Mission & 7th (APN 010-141-003). The property owner has expressed interest to add second-story residential uses to the site. At 33 units per acres, 12 units could be constructed.
Figure C-19 NW Corner Mission & 7th Site (Site #18)
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Appendix C – Housing Sites Inventory Analysis C-24 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Site #19: 7th 2 SW of Mission Site
Number of Housing Units: 2
Description: This small site is approximately 0.07 acres. The existing use is a small commercial building. The site was included in the RHNA 5 inventory. Property is currently underdeveloped and contains a building originally constructed in 1937. The property owner has had discussions with the City about adding at least two apartments on the second-story. The City has had recent experience facilitating this kind of housing development addition to an existing building.
Figure C-20 7th 2 SW of Mission Site (Site #19)
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Appendix C – Housing Sites Inventory Analysis C-25 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Site #20: NE Corner Monte Verde & 7th Site
Number of Housing Units: 1
Description: This small site is approximately 0.07 acres. The site was included in the RHNA 5 inventory. The property is currently significantly underdeveloped. The building was originally constructed in 1950 (approximately 60 years old) and has a floor area ratio of approximately 47 percent, compared to the maximum allowed of 80 percent. The building is currently used as an office space, but as there is little demand for commercial space in Carmel it is likely that the site will be redeveloped with stand-alone housing as opposed to mixed-use.
Figure C-21 NE Corner Monte Verde & 7th Site (Site #20) Attachment 5 Attachment 2
Appendix C – Housing Sites Inventory Analysis C-26 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Site #21: Carmel Resort Inn Site
Number of Housing Units: 8
Description: This small site is approximately 0.74 acres. The existing use is the Carmel Resort Inn. The site was not included in the RHNA 5 inventory.
Figure C-22 Carmel Resort Inn Site (Site #21)
Attachment 5 Attachment 2
Appendix C – Housing Sites Inventory Analysis C-27 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Sites Recycled from 5th Cycle
To ensure the City has a buffer of housing sites for lower income housing, the City has included 14 additional sites, each of which was previously included in Carmel’s 5th Cycle Housing Element.
These sites are capable of accommodating an additional 35 units, all of which have been assigned to the above-moderate-income category. As with the other underutilized sites, the likelihood of successfully developing these other sites is improved the City’s proposed new program that would permit redevelopment of all underutilized sites without the need for a conditional use permit (i.e., “by right”). No additional discussion of these sites is provided.
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 the dedication of a minimum of one hotel room to house lower-income employees. As there are 46 hotels in the City, this program has the potential to add at least 46 moderate- and lower-income units to the City’s housing stock.
Accessory Dwelling Units (ADUs and Junior ADUs)
Based on HCD’s Annual Progress Report Dashboard, 18 ADUs were constructed in Carmel in the four-year period between 2018 and 2021. This averages 4.5 ADUs per year, which when extrapolated to the eight-year planning period for the 6th Cycle Housing Element update, equates to a total of 36 units. Because the State of California has recently adopted a host of new rules easing the construction of ADUs, the City has doubled its estimate of potential ADUs to a total of 72 units. Following the rule of thumb recommended by HCD, these 72 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 3 of this 6th Cycle Housing Element), the City is required to maintain “no net loss” of the housing capacity represented by this list of parcels and the sites they comprise. To facilitate this, the inventory presented below has been designed with excess capacity. This allows some degree of flexibility in decision making for individual development projects as they come forward for approval by City Council.
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Appendix C – Housing Sites Inventory Analysis C-28 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 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 inconsistent with 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 35 housing sites identified in the sections above.
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Appendix C – Housing Sites Inventory Analysis C-29 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Table C-3 Housing Sites Inventory
Site # Location 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) 010143001000 A-2 1.02 33 33 17 162 Ulrika Plaza Site (#2) 010138003000
SC 0.37 33 12 12
010138021000
3 City Public Works Site (Vista Lobos) (#3)
010104001000
R-4 1.28 33 42 35 7
010104004000
4 Carmel Realty Office Site (#4) 010145008000 RC RC 0.19 33 4 4 5 Pine Inn Parking Lot (#5) 010212010000 R-1 0.18 33 5 5 6 Bruno's Market Site (#6) 010095013000
RC 0.53 33 17 12 5
010095012000
7 Three Garages Site (#7)
010098004000
SC CC 0.33 33 7 7 010098005000
010098006000
8 First Church of Christ Parking Lot (#8)
010212027000
R-1 SFR 0.28 33 9 9 010212004000
010212026000
9 Red Cross Site (#9)
010144015000
R-1 SFR 0.18 33 5 5
010144016000
10 Café Carmel Site (#10) 010133004000 CC CC 0.15 33 3 3 11 Wells Fargo Site (#11) 010141006000
CC CC 0.36 33 8 8
010141011000
12 Esperanza 7th and Dolores Site (#12)
010145012000
SC 0.46 33 15 15
010145020000
13 7th and Mission Site (#13) 010142001000 SC 0.18 33 5 5 Attachment 5
Appendix C – Housing Sites Inventory Analysis C-30 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Site # Location APN Zoning General Plan Acreage Applied Density (DU/AC) Total Realistic Capacity Very Low Low Moderate Above Moderate 14 Carmel Foundation Site (#14)
010149012000
A-3 0.62 33 20 10 10
010149010000010149011000010149001000
15 Carmel Presbyterian Site (#15)
010084030000
R-1 1.10 33 36 36
010084023000010084024000010084022000010084003000
16 NW Corner Junipero & 5th (#16) 010097007000 SC CC 0.18 33 3 317 American Legion Site 010144014000 R-1 SFR 0.18 33 5 5 18 NW Corner Mission & 7th 010141003000 CC CC 0.37 33 8 819 7th 2 SW of Mission 010142013000 SC CC 0.07 33 2 220 NE Corner Monte Verde & 7th 010191004000 RC RC 0.07 33 1 1 21 Carmel Resort Inn 010021014000
R-1 SFR 0.74 33 8 8
010021013000010021012000010021011000010021030000010021031000010021032000010021033000 Subtotal Primary Underutilized Sites 8.84 248 93 46 16 93 Sites Recycled from 5th Cycle
22 San Carlos 2 NE of 6th 010132009000 CC CC 0.09 33 1 -- -- -- 1 23 Ocean 4 NW of San Carlos 010134005000 CC CC 0.08 33 1 -- -- -- 1 24 NW Corner Dolores & 6th 010138006000 CC CC 0.13 33 2 -- -- -- 2 Attachment 5
Appendix C – Housing Sites Inventory Analysis C-31 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Site # Location APN Zoning General Plan Acreage Applied Density (DU/AC) Total Realistic Capacity Very Low Low Moderate Above Moderate 25 NW Corner Ocean & Dolores 010139001000 CC CC 0.09 33 1 -- -- -- 126 SE Corner Ocean & San Carlos 010141007000 CC CC 0.28 33 6 -- -- -- 6 27 Ocean 2 SE of Mission 010141009000 CC CC 0.07 33 1 -- -- -- 1 28 NW Corner Mission & 8th 010142006000 RC RC 0.19 33 4 -- -- -- 4 29 SE Corner of San Carlos & 7th 010142012000 SC CC 0.12 33 2 -- -- -- 230 San Carlos 2 SW of Ocean 010146001000 CC CC 0.15 33 3 -- -- -- 3 31 San Carlos 2 SW of Ocean 010146002000 CC CC 0.18 33 3 -- -- -- 3 32 San Carlos 2 NW of 7th Ave 010146003000 CC CC 0.18 33 3 -- -- -- 333 San Carlos 2 NW of 7th Ave 010146004000 CC CC 0.09 33 1 -- -- -- 134 Lincoln SE of Ocean 010147010000 CC CC 0.09 33 1 -- -- -- 1 35 SW Corner Ocean & Dolores 010147018000 CC CC 0.31 33 6 -- -- -- 6 Subtotal Recycled Sites 35 0 0 0 35
TOTAL 283 93 46 23 121Potential Converted Hotel Units 46 0 16 30 0 ADUs 72 22 22 22 6GRAND TOTAL 401 115 84 75 127RHNA 349 113 74 44 118Difference 52 2 6 24 17Difference (Percent) 115% 101% 113% 170% 108% SOURCE: City of Carmel-by-the-Sea; EMC Planning Group Inc.
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Appendix C – Housing Sites Inventory Analysis C-33 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 D.4 Conclusion
The vacant and underutilized sites, converted hotel rooms, and accessory dwelling units identified in this report are sufficient to accommodate approximately 115 percent of the City of Carmel-by-theSea’s Regional Housing Needs Allocation for the 6th Cycle planning period. This 15 percent “cushion” 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 “cushion” 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 demolished before new housing could be constructed.
Nonetheless, for communities like Carmel-by-the-Sea that are largely built out and surrounded on all sides by other communities, redevelopment and densification is the only practical solution to providing its share of housing for the Monterey Bay Area RHNA. By its nature, such redevelopment is more costly and more time consuming than building new units on vacant land. To offset these constraints, City Officials have proposed a “Housing Priority Overlay Zone” to facilitate redevelopment and/or intensification of uses on sites included in the City’s housing sites inventory.
This overlay zone allows for housing development by right (objective design and development standards apply), minimum density, and otherwise overrides the development standards of the base district to ensure that the number and types of units identified in the housing sites inventory can be achieved.
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Appendix C – Housing Sites Inventory Analysis C-34 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 This side intentionally left blank.
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Review of Previous Housing Element D
APPENDIX
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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-13 Attachment 5 Attachment 2
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Appendix D – Review of Previous Housing Element D-1 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 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 condition use permits on multi-family developments with Attachment 5 Attachment 2
Appendix D – Review of Previous Housing Element D-2 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 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.
Attachment 5 Attachment 2
Appendix D – Review of Previous Housing Element D-3 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Table D-1 Overview of Adopted Programs
Program
Number
Programs/Actions
[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element] Achievements/Effectiveness
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Goal G3-1: Preserve the existing housing stockProgram 3-1.1.a Housing Rehabilitation Information. Distribute information on the Inspection Services and Housing Rehabilitation programs available through Monterey County, and alternative ways of financing home repairs During the planning period, the City provided information on rehabilitation programs, inspection services, and home repair financing at City Hall and on the City’s website. During the Planning period, the City’s website was redesigned with new features that make navigation easier. Dissemination of information at City Hall and on the City’s website is a passive activity that can effectively educate and inform the public. To capture a broader audience and take a more active role in disseminating information, the City will take advantage of established venues such as the Farmer’s Market, Library programming, and local service organizations to promote available resources.
Continue
Program 3-1.1.b
Residential Inspection Services. Inspect residences in the community for structural deficiencies and repair needs at the request of the property owner The City continues to provide residential inspection services to residents as part of Code Enforcement complaints and during the building permit process.
Continue
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 capture a broader audience and take a more active role in disseminating information, the City will take advantage of established venues such as the Farmer’s Market, Library programming, and local service organizations to promote available resources.
Modify and Combine
with 3-1.1.a
Attachment 5
Appendix D – Review of Previous Housing Element D-4 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update Public Review Draft June 2023 Program
Number
Programs/Actions
[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element] Achievements/Effectiveness
Continue/
Modify/
Delete
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 verylow-income households. Distribute informational materials outlining the floor area and other applicable incentives.