Carmel-by-the-Sea City Council
January 9, 2024

Two hearings, minimum (one Concept hearing, one Final hearing) for single-family projects;  City Council review on appeal; and
 Coastal Commission review on appeal (Coastal Zone Appeal jurisdiction only).

In addition, the City’s permit process, which includes a use permit above 22 du /acre and includes both objective and subjective standards, could also pose as a constraint to developers, especially of multi-family affordable housing projects.

City Fees
The City’s design review process may be financially prohibitive for lower income households and likely most affordable housing projects.

Parking Requirements
Parking is limited within Carmel-by-the-Sea. Off-street parking requirements can be prohibitive to building multi-family and affordable housing.

Commercial Overnight Visitor Accommodation
The Municipal Code Section 17.56.060 limits the total number of overnight visitor accommodations (hotel/motel/inn) units which increases the value of the use and acts as a disincentive to redevelop existing older non-conforming overnight visitor accommodations to refurbished permanent multifamily residences. The limit also acts as a disincentive to add on-site employee housing because scarce square footage is more valuable as an overnight visitor accommodation use rather than a residential use that serves lower-income employees.

The City will explore the development of a program to allow the transfer of development rights of overnight visitor accommodation located in key areas of the City and, the City will develop an Employee Housing Program.

Accessory Dwelling Units
The City of Carmel-by-the-Sea last updated it ADU ordinance in 2017, and therefore the City’s regulations addressing ADUs are out of date. The City has included a new program in this 6th Cycle Housing Element to revise its Municipal Code to be consistent with ADU and JADU state law, and develop standardized ADU plans. The City is currently updating their ADU Ordinance to comply with recent changes to state law.

Attachment 1
Appendix B – Housing Constraints B-37 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 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.

Use Permits
There are opportunities to reduce redundancies and facilitate residential construction while still enabling development to meet City regulations. Taking an overall critical look at the application of use permits, including application to increased densities for affordable multi-family residential projects, and removing this permit requirement where it does not add any necessary regulations will remove a regulatory constraint that adds to residential developer uncertainty, extends the permit entitlement process, and overall residential development costs. The 6th Cycle Housing Element includes a program to eliminate unnecessary use permits.

Transitional and Supportive Housing
The 6th Cycle Housing Element includes a program to update the Municipal Code to further clarify that transitional and supportive housing in the R-1 and R-4 zoning district are permitted uses.

Low Barrier Navigation Centers
A program has been included in the element to develop by-right procedures for processing lowbarrier navigation centers.

Development Standards for Senior Housing
A program is included to address the lack of development standards in the A-2 zone in order to provide greater clarity and certainty to guide and future development design.

The primary governmental constraints and the 6th Cycle Housing Element programs to address them, are shown in Table B-9 on the following page.

The City’s development regulations are consistent with California housing law, and the Zoning Code enables development of affordable housing. However, because housing production has been limited in Carmel-by-the-Sea, primarily due to lack of potable water, the Housing Element Update includes programs to further incentivize development activity. Depending on site-specific conditions - such as the presence of significant trees or historic resources and degree of incompleteness of submitted plans, some applicants may find the City’s design review process to be lengthy. The City’s review fees, while comparable with those of surrounding jurisdictions, can pose a barrier for applicants without sufficient financial resources.

Attachment 1
Appendix B – Housing Constraints B-38 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Table B-9 Summary of Governmental Constraints
Governmental Constraint Programmatic Action
Lack of Water Resources
The primary infrastructure constraint to the development of housing in Carmel is the lack of potable water.

Program 1.2.A: Water Distribution
Program 4.1.A: Water Conservation
Location in the Coastal Zone
Carmel-by-the-Sea is located in the California Coastal Zone and is therefore subject to a host of regulations that are not present in communities outside the Coastal Zone.

Program 3.1.G: Housing Priority Overlay Zoning District City Design Review and Permit Processing
The historic character of Carmel’s built environment has been shaped by decades of careful and deliberative design review (referred to as “design study” in Carmel) that addresses such features as site design, architectural style, building materials, color palettes, fenestration, tree placement and landscaping.

The City’s design review (design study) process can be lengthy, impacting the City’s ability to provide housing for lower-income households.

Program 3.1.F: Expedited Processing Procedures
Program 1.3.E: Amend A-2 Zoning District.

Program 1.4.B: Objective Design Standards
Program 2.2.A: Historic Preservation Educational Program Program 3.1.G: Housing Priority Overlay Zoning District Program 1.4.A: Eliminate Unnecessary Use Permits
Program 1.3.C: Accessory Dwelling Units
Program 1.3.F: Manufactured Homes on a Foundation System Program 3.1.B: Housing for Extremely-Low Income Households Program 3.3.B: Low-Barrier Navigation Centers
City Fees
The City’s design review and permitting process may be financially prohibitive for lower income households and likely most affordable housing projects.

Program 3.1.D: Reduced Entitlement and Development Fees Program 3.1.E: Reduced Parking Requirements
Parking Requirements
Parking is limited within Carmel-by-the-Sea. Off-street parking requirements can be prohibitive to building multi-family and affordable housing.

Program 3.1.E: Reduced Parking Requirements
Commercial Overnight Visitor Accommodation Program 1.3.B: Overnight Visitor Accommodation (Conversion) Development Transfer Rights
Program 1.2.D: Overnight Visitor Accommodation – Employee Housing Program
B.3 Non-Governmental Constraints
State law (Government Code Section 65583(a)(6)) requires an analysis of potential and actual governmental and non-governmental constraints to the maintenance, improvement, and development of housing for all income levels. The Housing Element must identify ways, if any, to reduce or overcome these constraints in order to meet the City’s housing needs.

Land Availability and Cost
Three primary factors contribute to high land costs on the Monterey Peninsula, and in Carmel-bythe-Sea in particular: 1) the area is considered a desirable place to live, 2) available land is in short supply and 3) land costs vary both between and within jurisdictions based on factors such as the Attachment 1
Appendix B – Housing Constraints B-39 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 desirability of the location and the permitted density. According to the real estate website, Zillow, the typical land value for a single-family home is between $800,000 and $1.2 million in the city of Monterey, but between $1.5 million and $5 million in Carmel-by-the-Sea.

Due to the fact that land availability is limited within Carmel-by-the Sea and the City is largely built out, a number of programs have been created to creatively increase density and affordable housing potential within the City.

Construction Costs
Construction costs associated with housing development are generally comprised of both soft and hard costs. Soft costs for housing development include the cost of architectural, engineering, accounting, legal and other professional services, as well as the cost of obtaining permits and paying governmentimposed fees. Carrying costs and the cost of construction financing can also be considered soft costs.

Hard costs include the costs of labor and materials and can also include costs accumulated through permitting
delays.

Hard costs are very high in Carmel-by-the-Sea, and both the high cost of labor and the high cost of materials
could be considered constraints on housing
development. Hard construction costs can vary
significantly based on the varied and unique geographic conditions throughout the City. Hard costs can be
higher than average in Carmel-by-the-Sea compared to
Monterey County.

Hard and soft costs contribute significantly to the overall cost of developing new housing. High hard costs are difficult for an individual jurisdiction to mitigate.

Availability of Financing
As a stable and affluent community, private housing mortgage financing is readily available in Carmel-by-the-Sea. There are no mortgage-deficient areas in the City and no identifiable underserved groups in need of financing assistance. At the time this Housing Element was drafted, interest rates for homebuyers were increasing from a low of 2.75 percent in 2020 to almost 7 percent in 2023 for a fixed rate, 30-year mortgage. The current economic climate is uncertain and still affected by increasing inflation, the possibility of a recession, geopolitical tensions, businesses rebounding and responding to changes brought on by the COVID-19 pandemic, and ongoing supply chain disruptions; however, there are a number of ways to finance residential development in the City, some of which are outlined below.

We’re going to have to tell marketrate builders they’re going to have to provide more money for our
affordable housing quotient…we
have got to subsidize it...take the
people paying market rate and
say, I’m sorry, if you want to live
here you got to pay to play, and
we put that money towards our
affordable housing quotient and
build something that makes sense
November 17, 2022 Housing Ad Hoc
Committee Community Meeting
Attendee
Attachment 1
Appendix B – Housing Constraints B-40 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Banks, Community Development Financial Institutions Fund (CDFIs), and state housing agencies
Banks, Community Development Financial Institutions Fund (CDFIs), and state housing agencies all play a role in providing affordable housing.
 Banks are regulated by the Community Reinvestment Act (CRA), which requires them to provide lending and services to all segments of their communities, including low-and moderate-income borrowers. Banks can meet their CRA requirements through a variety of activities, including making loans to affordable housing developers, providing grants to community development organizations, and investing in CDFIs.  CDFIs are specialized financial institutions that provide loans, investments, and other financial services to low-income communities and individuals. CDFIs are often more flexible than traditional banks, and they can provide loans to borrowers who may not be able to qualify for financing from other sources.
 State housing agencies(SHAs) are government agencies that provide financial assistance for affordable housing development. SHAs can provide loans, grants, and tax credits to developers, and they can also help to promote affordable housing through public education and outreach programs.

Together, banks, CDFIs, and SHAs play a vital role in providing affordable housing. These organizations work to ensure that everyone has access to safe, decent, and affordable housing, regardless of their income. The California Housing Finance Agency (CalHFA) is a SHA that provides financing for affordable housing development in California. These organizations are essential partners in the fight to ensure that everyone has access to safe, decent, and affordable housing.

Housing Credits
Federal
The 4% and 9% LIHTC (Low-Income Housing Tax Credit) are federal tax credits that can be used to finance the construction or rehabilitation of affordable housing. The 4% credit is for the acquisition of existing buildings for rehabilitation and new construction financed by tax-exempt bonds. The 9% credit is generally for new construction and substantial rehabilitation with no federal subsidies. The amount of the credit is equal to 4% or 9% of the project's qualified basis, and it can be used to offset federal income taxes. The credit is claimed over a 10-year period.

The 9% LIHTC is more valuable than the 4% LIHTC, so it is typically used for larger projects. The 9% LIHTC is also more competitive, as there is a limited amount of 9% credits available each year.

Both the 4% and 9% LIHTCs are important tools for financing affordable housing. They have helped to create millions of affordable housing units across the country.

Attachment 1
Appendix B – Housing Constraints B-41 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 State
State housing credit is a state-level program that provides tax credits to developers who build or rehabilitate affordable housing. The credits are similar to the federal Low Income Housing Tax Credit (LIHTC), but they are administered by state housing finance agencies (HFAs).

State HFAs allocate tax credits to developers through a competitive process. The credits are then sold to investors, who use them to offset their state income tax liability. The proceeds from the sale of the credits are used to finance the construction or rehabilitation of affordable housing.

State housing credit benefits both developers and low-income households. For developers, the credits provide a valuable source of financing that can help them make affordable housing projects financially feasible. For low-income households, the credits help to keep rents affordable.

Federal Home Loan Bank System
The Federal Home Loan Banks (FHLBs) are 11 regional banks that provide funding to financial institutions in all 50 states and U.S. territories. They were created by Congress in 1932 to help revitalize the housing market during the Great Depression.

FHLBs are cooperatively owned by their member institutions, which include community banks, credit unions, commercial banks, savings institutions, and insurance companies. These member institutions can borrow money from FHLBs at a discounted rate, which helps them to offer lower interest rates on mortgages and other loans to their customers.

In addition to providing funding, FHLBs also offer a variety of other services to their members, such as:
 Technical assistance on housing and community development  Affordable housing programs
 Letters of credit
 Mortgage purchase programs
FHLBs play an important role in the U.S. housing market. They help to ensure that there is a steady supply of affordable mortgage credit available to borrowers, and they also support community development efforts.

Federal Home Loan Bank and Affordable Housing Program
The Federal Home Loan Bank (FHLB) Affordable Housing Program (AHP) is a grant program that provides funding for the creation and preservation of affordable housing. The AHP is funded by a 10% contribution from each FHLB's earnings.

Attachment 1
Appendix B – Housing Constraints B-42 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 The AHP can be used to finance the following types of affordable housing projects:
 Owner-occupied housing: The AHP can be used to finance the purchase, construction, or rehabilitation of owner-occupied housing for low-or moderate-income households.  Rental housing: The AHP can be used to finance the purchase, construction, or rehabilitation of rental housing where at least 20% of the units are affordable for and occupied by very low-income households.
 Mixed-income housing: The AHP can be used to finance the purchase, construction, or rehabilitation of mixed-income housing where a portion of the units are affordable for lowor moderate-income households.

The AHP is a competitive program, and applications are typically reviewed on a quarterly basis. To be eligible for an AHP grant, a project must meet the following criteria:
 The project must be located in a low-or moderate-income census tract.  The project must be affordable to low-or moderate-income households.  The project must be developed by a qualified project sponsor.

The AHP is a valuable resource for developers of affordable housing. The program provides muchneeded funding for the creation and preservation of affordable housing, and it helps to ensure that low-and moderate-income households have access to safe and affordable housing.

Housing First
Supportive housing is a type of housing that provides permanent, affordable housing with on-site supportive services to help people who are homeless or at risk of homelessness. The supportive services can vary depending on the needs of the individual or family, but they may include case management, mental health services, substance abuse treatment, job training, and education.

There are a variety of supportive housing subsidy programs available in the United States. Some of the most common programs include:
 Housing Choice Vouchers (HCVs): HCVs are a federal program that provides rental assistance to low-income households. HCVs can be used to rent apartments on the private market, and they can also be used to pay for supportive housing.  Veterans Affairs Supportive Housing (VASH): VASH is a federal program that provides rental assistance and case management services to homeless veterans.  Rapid Re-housing: Rapid Re-housing is a short-term program that provides rental assistance and case management services to help people who are homeless quickly find and maintain housing.

Attachment 1
Appendix B – Housing Constraints B-43 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 The Housing First approach to homelessness is a philosophy that emphasizes providing permanent housing to people who are homeless, regardless of their other needs. The Housing First approach has been shown to be effective in reducing homelessness and improving the lives of people who are homeless.

The supportive housing subsidy system in the United States is a complex system, but it is an important part of the Housing First approach to homelessness. The subsidy programs help to make supportive housing affordable for people who are homeless, and they help to ensure that people who are homeless have access to the supportive services they need to succeed.

Requests to Develop at Densities Below Those Permitted
New State Housing Element law now requires the non-governmental constraints analysis to evaluate developer requests to build at densities below the density identified in the Housing Element sites inventory. Carmel-by-the-Sea does not receive requests to develop below densities and this is not a constraint to development.

Small Lots and Large Units
Property within Carmel-by-the-Sea is typically smaller than a half-acre, which can be a constraint for housing production. Lot consolidation incentives may be a solution. Large multi-family units have become commonplace with recent housing proposals. Large units reduce the number of multifamily units overall, which decreases the housing variety available, and increases the number of expensive luxury housing options. A minimum density requirement is being proposed within the Housing Priority Overlay Zoning District for sites in the Central Commercial (CC), Service Commercial (SC), Residential and Limited Commercial (RC), and R-4 District.

Seasonal Vacancies
Carmel-by-the-Sea has a 50% vacancy rate of which 80% is attributed to seasonal vacancies, given the community’s strong tourism industry. Second homeowners seeking seasonal homes skews the demand for housing, driving up rents and home prices and making it challenging for those working in Carmel-by-the-Sea to find available housing. Rising housing prices decrease the stock of housing affordable to those living or working in and around Carmel-by-the-Sea, further spurring the statewide housing shortage. Programs to address this issue are incorporated in the 6th cycle Housing Element and include encouraging Accessory Dwelling Units and establishing of an Affordable Housing Trust Fund which could be funded in part by a vacancy tax.

Length of Time between Application Approval and Building Permit Issuance
New Housing Element law now also requires an examination of the length of time between receiving approval for a housing development and submittal of an application for building permits.

The time between application approval and building permit issuance is influenced by a number of Attachment 1
Appendix B – Housing Constraints B-44 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 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 a low-income area that is disproportionately affected by environmental pollution and other hazards that can lead to negative health effects, exposure, or environmental degradation.

Environmental Constraints
Environmental constraints affecting housing include geologic and seismic conditions and fire hazards, which are a threat to the built environment. These constraints are discussed in detail below.

However, the primary environmental constraint to the development of housing in Carmel-by-theSea is the limited water supply, as already discussed.

Fire Hazards
Carmel-by-the-Sea is often referred to as a “Village in the Forest,” due to its extensive urban forest.

The high density of structures within the Carmel residential areas and business district among numerous trees increases the fire hazard. In addition, the Pescadero Canyon, Del Monte Forest, and Mission Trails Nature Preserve, located adjacent to the City, introduce the possibility of a wildland fire. The currently adopted (October 2008) California Department of Forestry and Fire Protection (CAL FIRE) Very High Fire Hazard Severity Zones in Local Responsibility Areas (LRA) map for Carmelby-the-Sea identifies a large area encompassing northern and eastern portions of the City as a Very High Fire Hazard Severity Zone. In such zones, roofs and exterior walls of new buildings must be made of noncombustible materials. It should be noted that all LRA maps across the state of California are undergoing updates and according to CAL FIRE are anticipated to be released sometime in 2024.

Obtaining insurance for structures is increasingly difficult given the Very High Fire Hazard Severity Zone, posing a constraint to residential development.

The City of Carmel-by-the-Sea is part of a regional coordination effort with other Monterey County cities, including Pacific Grove and Monterey. These neighboring agencies provide aid to each other on an as-needed basis. Fire protection for the City is provided by the City of Monterey Fire Department based out of the Carmel Fire Station located on 6th Avenue.

Attachment 1
Appendix B – Housing Constraints B-45 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Emergency and Evacuation Planning
Emergency response is provided through coordinated efforts by the cities of Monterey, Pacific Grove, and Carmel. Emergency planning and evacuation pose many challenges for the City due to the precarious topography and narrow City roads. The General Plan Safety Element (both the currently adopted version and the updated Safety Element being prepared in conjunction with the 6th Cycle Housing Element) provides an in-depth analysis of emergency and evacuation planning and protocols, as well as scenario mapping and evacuation route mapping. City staff generally note that particularly in Carmel, where small lots make meeting egress requirements difficult at higher densities, incentivizing lot mergers in the commercial district will help address concerns and challenges associated with emergency and evacuation planning across the City.

Seismic
The entire California Coast and Coast Range area is prone to earthquakes. Based on history, the probability of a moderate or high magnitude earthquake occurring in the greater Monterey region in the next few decades is quite likely. Faults that could present hazards to Carmel-by-the-Sea during an earthquake event include the following active or potentially active faults: San Andreas, San GregorioPalo Colorado, Chupines, Navy, and Cypress Point. The San Andreas and San Gregorio faults are two dominant faults within the Monterey County region that are considered active with evidence of historic or recent movement.

While the seismic hazards cannot be eliminated, there are a number of regulations that reduce the impact of these hazards. The Alquist-Priolo Earthquake Fault Zoning Act was passed in 1972 to mitigate the hazard of surface faulting to structures for human occupancy, by preventing the construction of buildings used for human occupancy on the surface trace of active faults. The California Building Code includes provisions associated with engineering design and building requirements that address seismic hazards. In addition, the City of Carmel-by-the-Sea General Plan includes policies addressing hazards from seismic activity.

Tsunami
The City would be minimally affected by a moderate to extreme tsunami event. This can be accredited to coastal topography along Carmel’s western boundary. The steep cliff, or a step-down in elevation between the Scenic Road and the beach, acts as a protective boundary during a tsunami event. However, low lying portions of Carmel-by-the-Sea are susceptible to inundation from tsunami, known as waves produced from a seismic event. Only the southern-most portion of the City and the low-lying Carmel Lagoon neighborhood (within unincorporated Monterey County) could be impacted if a 21-foot-high tsunami wave were to enter the Carmel River lagoon. Impacts from tsunami could include damage to improvements from wave inundation and from wave-carried debris.

Attachment 1
Appendix B – Housing Constraints B-46 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Tsunami is a potential safety hazard as well as a hazard to property. The actual areas that will be impacted from a tsunami will vary depending on factors such as the size of the tsunami wave, tide level at the time of the tsunami, the wave source location and the wave direction. In general, areas adjacent to the shoreline that are below an elevation of approximately 15 to 20 feet above mean sea level appear to have a higher level of risk.

Flooding
Carmel is located on a sloping terrain that offers good storm water runoff into both the Pacific Ocean and the Carmel River. Only a small portion of the City’s southern tip is designated as a FEMA 100- year Flood Zone. Carmel Beach is subject to flooding during high tide and beach sand is lost yearly during winter storms. The beach is clearly separated from adjacent roads and houses by a moderately steep hill. Due to that topographical feature, the coastal flooding rarely extends past the beach. There are several areas of the City, which have been identified in the City’s general plan as being prone to localized flooding. The main area subject to localized flooding is located within the Mission Trail Nature Preserve. The Mission Trail site is owned by the City and used as a park, and the City recently approved a CDP to correct flooding issues within Mission Trails Nature Preserve.

This use mitigates some of the damage that would normally result from the retention of water on the site and the City recently approved a Coastal Development permit to correct some flooding issues in this area.

The City’s General Plan includes a Safety Element with policies and programs which address flooding (see policies P8-27 through P8-31). The Safety Element Update will also include and update where necessary the City’s policies and programs related to flooding. The City’s Municipal Code (Chapter 15.56 Community Floodplain) further addresses flood risks and hazards found in the City as well as identifying methods for reducing flood losses. In order to accomplish its purposes, this chapter of the municipal code includes regulations to:
1) Restrict or prohibit uses which are dangerous to health, safety, and property due to water or erosion hazards, or which result in damaging increases in erosion or flood heights or velocities; 2) Require that uses vulnerable to floods, including facilities which serve such uses, be protected against flood damage at the time of initial construction; 3) Control the alteration of natural floodplains, stream channels, and natural protective barriers, which help accommodate or channel floodwaters;
4) Control filling, grading, dredging, and other development which may increase flood damage; and 5) Prevent or regulate the construction of flood barriers which will unnaturally divert floodwaters or which may increase flood hazards in other areas. (Ord. 2018-03 § 1 (Exh. A § 4), 2018).

Attachment 1
Appendix B – Housing Constraints B-47 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Coastal Erosion and Landslides
Erosion on sloped inland areas and at the shoreline (beach) has been a problem for much of Monterey County, including Carmel. The hazards due to erosion are difficult to separate from those due to flooding and landsliding. In some cases, erosion is a result of flood and landslide conditions; in others, rapid water runoff and landsliding can occur in areas subject to prolonged erosion. The preventive costs of erosion are generally included within flood control measures and the overall costs of hillside development. Adoption of the present state of the art procedures for erosion prevention in hillside areas will, in most cases, eliminate losses.

Losses due to coastal erosion can be reduced most economically by avoiding construction in areas subject to severe erosion. Erosion of the beach bluffs is addressed in the City's Shoreline Management and Emergency Operations plans.

Summary of Non-Governmental Constraints
In summary, while Carmel-by-the-Sea is subject to the environmental constraints described above, the City’s General Plan sets forth a series of actions to minimize these constraints. Carmel-by-theSea incorporates this information into its land use planning and development review processes. In an effort to continue to reduce constraints to housing development, the Housing Element Update includes specific policies and programs in Chapter 2 to reduce or eliminate non-governmental constraints to the extent feasible and practical.

The primary non-governmental constraints and the 6th Cycle Housing Element programs to address them are shown in Table B-10 below:

Table B-10 Summary of Non-Governmental Constraints
Non-Governmental Constraint Programmatic Action
Land Availability and Cost
Carmel-by-the-Sea’s limited availability of land coupled with its desirable coastal location and world-renowned architecture has resulted in high cost of land and a lack of affordable housing.

Some of the primary factors that have contributed to high land costs in Carmel-by-the-Sea are its, and limited availably of land.

Program 3.1.A: Mixed Use Affordable Housing
Program 3.1.B: Overnight Visitor Accommodation (Conversion) Transfer of Development Rights.

Program 1.1.C: Development on Small Sites
Program 3.1.C: Density Bonus
Construction Costs
Costs of labor and materials are very high in Carmel-by-the-Sea and could be considered constraints on housing development.

Program 3.1.C: Density Bonus
Availability of Financing Program 2.1.D: Establish Affordable Housing Trust Fund Program 5.1.C: Shared Housing Information
Program 5.1.B: Housing Choice Voucher Program
Program 5.2.A: Support Community Organizations
Small Lots and Large Units Program 3.1.G: Housing Priority Overlay Zoning District Seasonal Vacancies Program 2.1.D: Establish Affordable Housing Trust Fund Attachment 1
Appendix B – Housing Constraints B-48 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 This side intentionally left blank.

Attachment 1
Vacant and Available Sites C

APPENDIX
Attachment 1
Attachment 1
Table of Contents
APPENDIX C HOUSING SITES INVENTORY ANALYSIS .................................................... C-1 C.1 Introduction ........................................................................................................................... C-1 C.2 Regional Housing Needs Allocation ................................................................................... C-1 C.3 Sites Inventory ....................................................................................................................... C-3 C.4 AFFH Sites Analysis........................................................................................................... C-41 C.5 Conclusion ............................................................................................................................ C-48 C.6 Overnight Visitor Accommodation Reference List ....................................................... C-50 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-37 Table C-4 AFFH Indicators Analysis Overview ................................................................... C-42 Table C-5 Existing Overnight Visitor Accommodation Locations .................................... C-50 Figures
Figure C-1 Sites Inventory Map .................................................................................................. C-4 Figure C-2 Sunset Center Lots Site (Site #1) ............................................................................ C-6 Figure C-3 Sunset Center South Lot (Site #2) .......................................................................... C-7 Figure C-4 Ulrika Plaza Site (Site #3)......................................................................................... C-8 Figure C-5 City Public Works (Vista Lobos) Site (Site #4)..................................................... C-9 Figure C-6 Bruno’s Market Site (Site #5) ................................................................................ C-10 Figure C-7 First Church of Christ Parking Lot Site (Site #6)............................................... C-11 Figure C-8 Red Cross Site (Site #7).......................................................................................... C-12 Figure C-9 JB Pastor Site (Site #8) ........................................................................................... C-13 Figure C-10 Girl Boy Girl Site (Site #9) .................................................................................... C-14 Attachment 1
Figure C-11 Carmel Foundation Site (Site #10)....................................................................... C-15 Figure C-12 American Legion Site (Site #11) .......................................................................... C-16 Figure C-13 AT&T Building Site (Site #12)............................................................................. C-17 Figure C-14 Carmel Resort Inn Site (Site #13)........................................................................ C-18 Figure C-15 Forest Cottages Specific Plan (Site #14)............................................................. C-19 Figure C-16 NW Corner Mission & 7th Site (Site #15) ......................................................... C-20 Figure C-17 7th 2 SW of Mission Site (Site #16)...................................................................... C-21 Figure C-18 NE Corner Monte Verde & 7th Site (Site #17) .................................................. C-22 Figure C-19 Yafa Building Site (Site #18)................................................................................. C-23 Figure C-20 Three Garages Site (Site #19)............................................................................... C-24 Figure C-21 Carmel Realty Office Site (Site #20).................................................................... C-25 Figure C-22 Parashis Building Site (Site #21) ......................................................................... C-26 Figure C-23 The Agency Site (Site #22).................................................................................... C-27 Figure C-24 Sunset Terrace Site (Site #23)............................................................................... C-28 Figure C-25 Enzo’s Site (Site #24)............................................................................................. C-29 Figure C-26 Doud Arcade Site (Site #25)................................................................................. C-30 Figure C-27 Paseo San Carlos Square Site (Site #26).............................................................. C-31 Figure C-28 Paseo San Carlos Square Site 2 (Site #27) .......................................................... C-32 Figure C-29 Carmel Office Supply & Business Center (Site #28) ........................................ C-33 Figure C-30 Anticipated Development Types .......................................................................... C-35 Figure C-31 Housing Priority Overlay and Zoning ................................................................. C-40 Figure C-32 AFFH Sites Analysis: Cost Burdened Home Owners....................................... C-46 Figure C-33 Sites and Carmel-by-the-Sea Median Income..................................................... C-47 Figure C-34 Example Development Map................................................................................. C-49 Attachment 1
Appendix C – Housing Sites Inventory Analysis C-1 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Appendix C
Housing Sites Inventory Analysis
C.1 Introduction
The Association of Monterey Bay Area Governments (AMBAG) forecasts that the two-county (Monterey and Santa Cruz) Monterey Bay Area will add 32,867 new households between 2020 and 20451. For the eight-year time frame covered by this 6th Cycle Housing Element Update, the State Department of Housing and Community Development (HCD) has identified the region’s housing need as 33,274 units. The total number of housing units assigned by HCD is separated into four income categories that cover housing types for all income levels, from very low-income households to above-moderate (market rate) housing. This calculation, known as the Regional Housing Needs Allocation (RHNA), is based on population projections produced by the California Department of Finance (DOF) as well as adjustments that incorporate the region’s existing housing need. The adjustments result from recent legislation requiring HCD to apply additional adjustment factors to the baseline growth projection from the California Department of Finance, in order for the regions to get closer to healthy housing markets. To this end, adjustments focus on the region’s vacancy rate, level of overcrowding and the share of cost burdened households, and seek to bring the region more in line with comparable ones. These new laws governing the methodology for how HCD calculates the RHNA resulted in a significantly higher number of housing units for which the Monterey Bay Area must plan compared to previous cycles.

C.2 Regional Housing Needs Allocation
AMBAG adopted its Final 6th Cycle Regional Housing Needs Allocation Plan 2023-2031 on October 12, 2022. The plan was approved by HCD on November 8, 2022. For Carmel-by-the-Sea, the RHNA to be planned for this cycle is 349 units. Details are provided below.

RHNA Summary
Carmel-by-the-Sea’s share of the regional housing need for the eight-year period from 2023 to 2031 is 349 units, which is a 1,125 percent increase over the 31 units required by the 2014 to 2023 RHNA.

The housing need is divided into the four income categories of housing affordability. Table C-1 shows Carmel-by-the-Sea’s RHNA for the planning period 2023 – 2031. 1 Final 2022 Regional Growth Forecast, AMBAG, November 18, 2020 Attachment 1
Appendix C – Housing Sites Inventory Analysis C-2 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Table C-1 Carmel-by-the-Sea’s Regional Housing Needs Allocation – 2023–2031 Income Group
Carmelby-theSea Units
Percent Monterey
County Units Percent
Monterey
Bay Area
Units
Percent
Extremely Low Income
(<30% of AMI) 57 16.3% 2,206 10.9% 3,934 11.8%
Very Low Income
(30% - 50% of AMI) 56 16.0% 2,206 10.9% 3,934 11.8%
Low Income (50%-
80% of AMI) 74 21.2% 2,883 14.2% 5,146 15.5%
Moderate Income
(80%-120% of AMI) 44 12.6% 4,028 19.8% 6,167 18.5%
Above Moderate
Income
(>120% of AMI)
118 33.9% 8,972 44.2% 14,093 42.4%
Total 349 100.0% 20,295 100.0% 33,274 100.0%
SOURCE: AMBAG 2021
NOTE: The Association of Monterey Bay Area Governments (AMBAG) Executive Board adopted the 2023-2031 Regional Housing Needs Allocation Plan (RHNA) on October 12, 2022 (Resolution No. 2022-24). The plan was approved by the California Housing and Community Development on November 8, 2022.

Progress to Date
The RHNA planning period for the 2023-2031 Housing Element (6th Cycle) is June 30, 2023 through December 15, 2031. The statutory adoption date for the 6th Cycle Housing Element is December 15, 2023—a full six months after the beginning of the planning period. To account for this discrepancy, the City of Carmel-by-the-Sea must account for the number of housing units permitted prior to adoption of the 6th Cycle Housing Element and apply these to the 2023-2031 RHNA. Accordingly, the units permitted in this period count toward the 2023-2031 planning period RHNA and are subtracted from the 6th Cycle RHNA. Table C-2 shows the City of Carmel-by-theSea’s adjusted RHNA, which accounts for progress made prior to the adoption of the updated Housing Element document.

Table C-2 Carmel-by-the-Sea’s Adjusted RHNA
Very LowIncome
Units
LowIncome
Units
ModerateIncome
Units
Above
ModerateIncome Units
Total
Units
2023–2031 RHNA 113 74 44 118 349
Units permitted between June 30,
2023 and December 31, 2023

TBD TBD TBD TBD TBD
Remaining RHNA
SOURCE: City of Carmel-by-the-Sea, Community Planning & Building Department Attachment 1
Appendix C – Housing Sites Inventory Analysis C-3 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 C.3 Sites Inventory
The purpose of the sites inventory is to identify and analyze specific sites that are available and suitable for residential development in order to accommodate Carmel-by-the-Sea’s assigned 349 housing units. The City isn’t responsible for building the housing but creates the programs and policies to plan for where it should go and how many units could be on potential sites.

Figure C-1 shows an overview of the Sites Inventory Map that has been developed for Carmel-bythe-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 31 hotel owners in the community to provide on-site housing for lower-income hospitality employees. Finally, the City has an active accessory dwelling unit program capable of providing additional lower-income housing.

Altogether, these housing resources have the potential to accommodate approximately 115 percent of Carmel’s RHNA. Each of these opportunities is discussed in more detail below.

The City’s estimate of the number of housing units that can realistically be developed on key housing opportunity sites is considered conservative. Beyond what is included with this list are 43 vacant single-family sites, zoned R-1 capable of accommodating 43 market-rate housing units, all of which were previously identified in Carmel’s 5th Cycle Housing Element. These sites will act as an additional buffer of potential housing unit capacity.

Primary Underutilized Sites
The City has identified 21 underutilized sites capable of accommodating 248 lower-income and market-rate housing units. Eight of the total 21 primary underutilized sites were identified in the 5th Cycle Housing Element, all of which were identified at the time as having the highest probability of developing should adequate water resources become available during the planning period. Achieving this level of construction on the sites identified as primary underutilized sites would be dependent on a number of factors, including an adequate water supply, market conditions, construction costs, etc. The City has recognized that certain factors are beyond its control, however the permit review process can be improved. Therefore, new programs have been included in this 6th Cycle Housing Element update to permit redevelopment of all of underutilized sites identified herein. Examples include removing the need for a conditional use permit and establishing a minimum density for multi-family housing.

Attachment 1
Junipero St.

Mountain View Ave.

Ocean Ave.

Carpenter St.

San Carlos St.

Monte Verde St.

Guadalupe St.

Santa Rita St.

Santa Fe St.
1st Ave.
2nd Ave.
3rd Ave.
4th Ave.
5th Ave.Torres St.

Dolores St.

Lincoln St.

Camino RealCasanova St.
6th Ave.
7th Ave.
9th Ave.
10th Ave.
1 2
3 4
5 6
7 8
9 10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 8th Ave.

Site Inventory Map
Carmel Housing & Safety Element Update
0 550 feet
Figure C-1
Source: ESRI 2023, Google Earth 2023 City Limit
Site Inventory Parcel
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-5 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 The capacity estimate for these primary underutilized sites is supported, in part, by a 2023 housing feasibility study undertaken by the City in preparation for the City’s 6th Cycle Housing Element update.2
This study provided an in-depth analysis of the redevelopment potential for the first 16 primary underutilized sites (the January 2023 feasibility study is attached in its entirety as Appendix F).

A one-page description of each primary underutilized site, including a photograph of the site, is presented in the following section. The information provided for sites 1 through 16 has been excerpted directly from the 2023 feasibility study.
2 ECO Northwest, January 27, 2023. “Housing Element Analysis for the City of Carmel by-the-Sea.” Attachment 1
Appendix C – Housing Sites Inventory Analysis C-6 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #1: Sunset Center North & South Lots Site
Location: East Side of San Carlos between 8th & 10th Avenues (APN: 010-143-001) Number of Housing Units: 33
Description: The north lot at Sunset Center is a large
(1.02 acre) parking lot with no improvements other
than paving. The south lot is 1.84 acres. Both sites are City-owned. The City has expressed interest in
redevelopment of the parking lots so long as parking
needs for Sunset Center could be accommodated in
the development program. A design competition
could be one way to entice local architects to partner
with non-profit affordable housing developers.

Figure C-2 shows a photograph of the north parking
lot at the Sunset Center.

Figure C-2 Sunset Center Lots Site (Site #1)
“I live near the Sunset
Center. I would love to
see that made into a
usable space, and will
completely support your
efforts to do that. So, go
for it. Have courage and
get this work done.”
May 24, 2023 Housing Ad Hoc
Committee Community
Meeting Attendee
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-7 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #2: Sunset Center South Lot Site
Location: East Side of San Carlos between 8th & 10th Avenues (APN: 010-143-001) Number of Housing Units: 33
Description: The north lot at Sunset Center is a large (1.02 acre) parking lot with no improvements other than paving. The south lot is 1.84 acres. Both sites are City-owned. The City has expressed interest in redevelopment of the parking lots so long as parking needs for Sunset Center could be accommodated in the development program. A design competition could be one way to entice local architects to partner with non-profit affordable housing developers.

Figure C-2 shows a photograph of the north parking lot at the Sunset Center.

Figure C-3 Sunset Center South Lot (Site #2)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-8 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #3: Ulrika Plaza Site
Location: Southwest Corner of Dolores Street & 5th Avenue (APN: 010-138-003, -021) Number of Housing Units: 12
Description: The 0.37-acre Ulrika Plaza site, was previously entitled as a mixed-use building.

The initial developer lost the project for financial reasons and it was acquired by another developer. This developer is in the process of obtaining entitlements for a new mixed-use development program that includes 12 market-rate apartment units. The site is a case study of a development not building to maximum density, and not including affordable units.

Figure C-4 Ulrika Plaza Site (Site #3)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-9 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #4: City Public Works (Vista Lobos) Site
Location: West Side of Torres Street between 4th & 5th Avenues (APN: 010-104-001, -004) Number of Housing Units: 42
Description: This is a City-owned site totaling 1.28 acres at the northeast end of the commercial district. The site is a large parking lot with low value improvement used for public parking. The City has expressed interest in using the site for housing if feasible. Potential height restrictions due to a protected viewshed to Point Lobos (see CMC 17.12.050) could limit achievable density and feasibility, though opportunities exist to cut into the slope at street grade.

Figure C-5 City Public Works (Vista Lobos) Site (Site #4) Attachment 1
Appendix C – Housing Sites Inventory Analysis C-10 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #5: Bruno’s Market Site
Location: North Side of 6th Avenue between Junipero Avenue and Torres Street (APN:
010-095-012, -013)
Number of Housing Units: 17
Description: This site is two adjacent parcels totaling over 0.53 acres under the same ownership. The site includes a parking lot that leads to low lot coverage. It also scores in the top tier for land-to-improvement ratio.

Figure C-6 Bruno’s Market Site (Site #5)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-11 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #6: First Church of Christ Parking Lot Site
Location: Lincoln Street 2 Northwest of 6th Avenue (APN: 010-212-026, -027, -004) Number of Housing Units: 9
Description: This site is a parking lot used by the First Church of Christ. It is three separate parcels totaling 0.28 acres. In 2020, the State of California passed AB 1851. This bill makes it easier for religious institutions to convert excess parking to affordable housing by prohibiting a local agency from requiring the replacement of religious-use parking spaces that a developer of a religious institution affiliated housing development project proposes to eliminate as part of that housing development project. Because the current owner is a mission-driven organization, it’s possible they may subsidize affordable housing construction and management. The City intends to implement SB-10 for this site (see Program 1.3.I in Chapter 2).

Figure C-7 First Church of Christ Parking Lot Site (Site #6) Attachment 1
Appendix C – Housing Sites Inventory Analysis C-12 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #7: Red Cross Site
Location: Southeast Corner of Dolores Street & 8th Avenue (APN: 010-144-015, -016) Number of Housing Units: 6
Description: This site includes two adjacent parcels owned and used by the American Red Cross. Collectively the site is 0.18 acres. Because the site is owned by a nonprofit organization it does not have Assessor’s values to calculate redevelopment metrics. However, site inspection confirms a low intensity use. It’s possible that this site could be combined with the American Legion site (#11) to yield a larger affordable housing project. Because the current owner is a mission-driven organization, it’s possible they may be a willing partner if they can find an alternative for their current operations. The City intends to implement SB-10 for this site (see Program 1.3.I in Chapter 2).

Figure C-8 Red Cross Site (Site #7)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-13 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #8: JB Pastor Building
Location: Southeast Corner of Dolores Street & 8th Avenue (APN: 010-145-012, -023, -024) Number of Housing Units: 8
Description: This site includes three adjacent parcels in single-ownership (Esperanza Carmel).

Collectively the site is 0.27 acres. Esperanza has presented a development proposal on the site for eight (8) market-rate apartment units.

Figure C-9 JB Pastor Site (Site #8)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-14 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #9: Girl Boy Girl
Location: Southwest Corner of Mission & 7th Avenue (APN: 010-420-010) Number of Housing Units: 5
Description: This 0.18-acre site currently accommodates a clothing boutique in a single-story commercial building. Half of the site is comprised of a parking lot, which leads to low lot coverage and a land-to-improvement ratio above 1.5. The property owner has indicated interest in developing housing to replace the underutilized parking lot and to retain existing mixed-use brick building.

Figure C-10 Girl Boy Girl Site (Site #9)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-15 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #10: Carmel Foundation Site
Location: Northeast corner Lincoln & 8th (APN: 010-149-001, -010, -011, -012) Number of Housing Units: 20
Description: The Carmel Foundation is the primary provider of affordable housing in Carmel.

Their administrative offices/campus headquarters include four parcels totaling 0.62 acres. This site does not score high on land-to-improvement ratio but scores in the top tier of value persquare-foot. This site is being considered as a candidate because the Carmel Foundation is a mission-driven organization and interviews with leadership indicate that if they can accommodate their administrative functions and programming off-site, they would consider redeveloping their property for affordable housing. Senior housing is a permitted use in this zone. The City may otherwise implement SB-10 for this site (see Program 1.3.I in Chapter 2).

Figure C-11 Carmel Foundation Site (Site #10)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-16 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #11: American Legion Site
Location: Dolores Street 2 Southeast of 8th Avenue (APN: 010-144-014) Number of Housing Units: 5
Description: This American Legion site is approximately 0.18 acres that is immediately south of and adjacent to the Red Cross Site (Site #7). This site was not included in the RHNA 5 inventory. City staff have identified this site because it is underutilized and owned by a quasipublic organization. The mission driven organization has indicated an interest in developing affordable veteran’s housing. It’s possible that this site could be combined with the Red Cross site to yield a larger affordable housing project. The City intends to implement SB-10 for this site (see Program 1.3.I in Chapter 2).

Figure C-12 American Legion Site (Site #11)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-17 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #12: AT&T Building
Location: Southwest corner of Junipero & 7th (APN: 010-087-012) Number of Housing Units: 11
Description: This site is approximately 0.35 acres and consists of a single building. The existing owner is AT&T, and the use is unknown. The site was not included in the RHNA 5 inventory.

This R-C zoned site could be fully redeveloped to accommodate at least 11 housing units with a minimum density of 33 dwelling units per acre, within the housing overlay zone (see Program

3.1.G in Chapter 2).

Figure C-13 AT&T Building Site (Site #12)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-18 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #13: Carmel Resort Inn Site
Location: East Side of Guadalupe Street between 1st & 2nd Avenues (APN: 010-021-014, - 013, -012, -011, -030, -031, -032, -033)
Number of Housing Units: 8
Description: This site is approximately 0.74 acres and consists of 8 single-family lots of record.

The existing use is the Carmel Resort Inn. The site was not included in the RHNA 5 inventory.

The current ownership has expressed interest to the City in reducing the footprint of this R-1 District hotel to accommodate the construction of 8 new single-family homes. Two of the eight homes were recently entitled and two additional homes are currently under review.

Figure C-14 Carmel Resort Inn Site (Site #13)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-19 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #14: Forest Cottages Specific Plan
Location: Northeast corner of Ocean & Mountain View (APN: 010-085-003, -004, -005) Number of Housing Units: 6
Description: This site is approximately 0.30 acres and has an adopted Specific Plan to enable a total of 6 units within this R-1 zone, which includes two low-income units.

Figure C-15 Forest Cottages Specific Plan (Site #14)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-20 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #15: NW Corner Mission & 7th Site
Location: Northwest Corner of Mission Street & 7th Avenue (APN: 010-141-003) Number of Housing Units: 12
Description: This site is approximately 0.37 acres. The existing uses include multi-tenant retail shops and a restaurant across multiple single-story commercial buildings. The site was included in the RHNA 5 inventory. The property owner has expressed interest to add second-story residential uses to the site. Inclusion with the housing overlay zone (see Program 3.1.G in Chapter 2) would support twelve (12) units at this site. The site was previously used in the RHNA 5 inventory. Lower-income units are not assumed for this site because it is less than a half-acre in size.

Figure C-16 NW Corner Mission & 7th Site (Site #15)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-21 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #16: First American Title Site
Location: 7th Avenue 2 Southwest of Mission Street (APN: 010-142-013) Number of Housing Units: 2
Description: This small site is approximately 0.07 acres, currently underdeveloped with a small commercial building. A second-story addition with a minimum of two (2) units could be built at 33 dwelling units per acre, as supported with the housing overlay zone (see Program 3.1.G in Chapter 2). The site was previously used in the RHNA 5 inventory. Lower-income units are not assumed for this site because it is less than a half-acre in size.

Figure C-17 7th 2 SW of Mission Site (Site #16)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-22 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #17: NE Corner Monte Verde & 7th Site
Location: Northeast Corner of Monte Verde Street & 7th Avenue (APN: 010-191-004 ) Number of Housing Units: 2
Description: This small site is approximately 0.07 acres. The property is currently significantly underdeveloped. The building is currently used as office space. A second-story addition or full redevelopment could result in a minimum of two (2) units at 33 dwelling units per acre, as supported with the housing overlay zone (see Program 3.1.G in Chapter 2). The site is in a transition zone from Central Commercial to Single-Family Residential with a hotel to the north (that was originally constructed as apartments) and an apartment complex to the south. The site was previously used in the RHNA 5 inventory. Lower-income units are not assumed for this site because it is less than a half-acre in size.

Figure C-18 NE Corner Monte Verde & 7th Site (Site #17) Attachment 1
Appendix C – Housing Sites Inventory Analysis C-23 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #18: Yafa Building Site
Location: Northwest Corner of Junipero & 5th Avenues (APN: 010-097-007) Number of Housing Units: 5
Description: This is a corner lot site totaling 0.18 acres. The existing use is a parking lot and single-story commercial building. A second-floor addition or full redevelopment could yield five (5) units at 33 dwelling units per acre, as supported with the housing overlay zone (see Program

3.1.G in Chapter 2). The site was included in the RHNA 5 inventory. Lower-income units are not assumed for this site because it is less than a half-acre in size.

Figure C-19 Yafa Building Site (Site #18)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-24 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #19: Three Garages Site
Location: Southwest of Junipero between 5th & 6th (APN: 010-098-004) Number of Housing Units: 3
Description: This site equals 0.11 acres and was previously used in the RHNA 5 inventory. The site is currently used for parking, including three attached garages. Neighboring structures are multi-story. A minimum of 3 units could be built at 33 dwelling units per acre, as supported with the housing overlay zone (see Program 3.1.G in Chapter 2). Lower-income units are not assumed for this site because it is less than a half-acre in size.

Figure C-20 Three Garages Site (Site #19)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-25 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #20: Carmel Realty Office Site
Location: Northeast Corner of Dolores Street & 8th Avenue (APN: 010-145-008) Number of Housing Units: 6
Description: This site is a 0.18-acre corner-lot parcel that is currently owned and used for office space by Carmel Realty. It is a single-story structure with low lot coverage and is surrounded by two-story structures to the north and east. Six (6) units could be built at 33 dwelling units per acre, as supported with the housing overlay zone (see Program 3.1.G in Chapter 2). The site was previously used in the RHNA 5 inventory. Lower-income units are not assumed for this site because it is less than a half-acre in size.

Figure C-21 Carmel Realty Office Site (Site #20)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-26 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #21: Parashis Building
Location: NW Corner Dolores & 6th (APN: 010-138-006)
Number of Housing Units: 4
Description: This site is a 0.13-acre parcel that the property owner has indicated an intention to fully redevelop. It is a single-story structure that neighbors a two-story structure to the west.

Four (4) units could be built at 33 dwelling units per acre, as supported with the housing overlay zone (see Program 3.1.G in Chapter 2). The site was previously used in the RHNA 5 inventory.

Lower-income units are not assumed for this site because it is less than a half-acre in size.

Figure C-22 Parashis Building Site (Site #21)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-27 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #22: The Agency Site
Location: NW Corner Ocean & Dolores (APN: 010-139-001)
Number of Housing Units: 2
Description: This site is a 0.09-acre corner-lot parcel that is currently used as retail space by the property owner. It has low lot coverage and is a single-story structure that is surrounded by twostory structures to the west, and across the street to the east. The site was previously used in the RHNA 5 inventory. Lower-income units are not assumed for this site because it is less than a half-acre in size.

Figure C-23 The Agency Site (Site #22)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-28 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #23: Sunset Terrace Site
Location: NW Corner Mission & 8th (APN: 010-142-006)
Number of Housing Units: 6
Description: This site is a 0.19-acre corner-lot parcel and the property owner has indicated an intention to convert the existing office space into housing units. The site includes both a singlestory and a two-story structure. A minimum of six (6) units could be built at 33 dwelling units per acre, as supported with the housing overlay zone (see Program 3.1.G in Chapter 2). The site was previously used in the RHNA 5 inventory. Lower-income units are not assumed for this site because it is less than a half-acre in size.

Figure C-24 Sunset Terrace Site (Site #23)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-29 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #24: Enzo’s Site
Location: San Carlos 2 SW of Ocean (APN: 010-146-001)
Number of Housing Units: 4
Description: This site is a 0.15-acre corner-lot parcel adjacent to the Doud Arcade site (#25) and includes frontage on Ocean. It is a single-story structure that could either be fully redeveloped or receive a second-floor addition. Four (4) units could be built at 33 dwelling units per acre, as supported with the housing overlay zone (see Program 3.1.G in Chapter 2). The site was previously used in the RHNA 5 inventory. Lower-income units are not assumed for this site because it is less than a half-acre in size.

Figure C-25 Enzo’s Site (Site #24)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-30 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #25: Doud Arcade Site
Location: San Carlos 2 SW of Ocean (APN: 010-146-002)
Number of Housing Units: 5
Description: This site is a 0.13-acre mid-block parcel that the property owner has indicated an intention to construct housing as a second-story addition to the site. The Doud Arcade is a single-story structure. A minimum of five (5) units could be built at 33 dwelling units per acre, as supported with the housing overlay zone (see Program 3.1.G in Chapter 2). The existing building would likely remain on the site. The site was previously used in the RHNA 5 inventory.

Lower-income units are not assumed for this site because it is less than a half-acre in size.

Figure C-26 Doud Arcade Site (Site #25)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-31 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #26: Paseo San Carlos Square Site 1
Location: San Carlos 2 NW of 7th Ave (APN: 010-146-003) Number of Housing Units: 5
Description: This site is a 0.18-acre It has low lot coverage and is a single-story structure that is surrounded on by two-story structures to the west, and across the street to the east. The existing building would likely remain on the site. A minimum of five (5) units could be built at 33 dwelling units per acre, as supported with the housing overlay zone (see Program 3.1.G in Chapter 2). The site was previously used in the RHNA 5 inventory. Lower-income units are not assumed for this site because it is less than a half-acre in size.

Figure C-27 Paseo San Carlos Square Site (Site #26)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-32 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #27: Paseo San Carlos Square Site 2
Location: San Carlos 2 NW of 7th Ave (APN: 010-146-004) Number of Housing Units: 2
Description: This site is a 0.09-acre mid-block narrow site with a single-story structure. The existing building could remain with a second-story addition, or full redevelopment may occur. A minimum of two (2) units could be built at 33 dwelling units per acre, as supported with the housing overlay zone (see Program 3.1.G in Chapter 2). The site was previously used in the RHNA 5 inventory. Lower-income units are not assumed for this site because it is less than a half-acre in size.

Figure C-28 Paseo San Carlos Square Site 2 (Site #27)
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-33 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site #28: Carmel Office Supply & Business Center
Location: Lincoln SE of Ocean (APN: 010-147-010)
Number of Housing Units: 2
Description: This site is a 0.09-acre parcel that the property owner has indicated an intention to add a second story. It is a single-story structure that neighbors a two-structure to the south. A minimum of two (2) units could be built at 33 dwelling units per acre, as supported with the housing overlay zone (see Program 3.1.G in Chapter 2). The site was previously used in the RHNA 5 inventory. Lower-income units are not assumed for this site because it is less than a half-acre in size.

Figure C-29 Carmel Office Supply & Business Center (Site #28) Attachment 1
Appendix C – Housing Sites Inventory Analysis C-34 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Housing Variety
In compliance with Government Code Section 65583 and 65583.2, which require the Housing Element to provide for a variety of housing types including multifamily rental housing, factory-built housing, mobile homes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing, the City has expanded possible options for property owners to develop housing units.

For instance, the following approaches will enable a variety of housing to be constructed, rehabilitated, converted, or added to an existing single-story structure:
 Zoning changes included with programs in Chapter 2 incentivizes existing overnight visitor accommodation sites to be converted into multi-family housing units.  City property, which has the highest likelihood of including lower-income units, will provide additional multi-family opportunities.
 By exercising Senate Bill (SB) 10, the City will enable multi-family units within otherwise singlefamily zoned neighborhoods. Figure C-30 demonstrates a variety of housing typologies anticipated with the narrative description of the Sites Inventory described in Section C-3.

Employee Housing at Local Hotels
As mentioned above, the City of Carmel-by-the-Sea has included a new program in this 6th Cycle Housing Element update to incentivize hotels to provide on-site affordable housing for hospitality employees in exchange for an additional hotel unit. As there are 46 hotels in the City, this program has the potential to add at least 31 moderate- and lower-income units to the City’s housing stock.

Accessory Dwelling Units (ADUs and Junior ADUs)
Based on HCD’s Annual Progress Report Dashboard, between 2018 and 2022, Carmel received 33 permit applications for new ADUs, approved/entitled 30 applications, issued building permits for 13 ADUs, and finaled 1 ADU. However, the Community Planning & Building Department reports that over the 5.5-year period between 2017 and June 2023, 7 permit applications for ADUs are actively in review, 11 permits have been approved but have not yet started construction, and 33 ADUs are currently under construction. Since 2017, 24 ADUs have completed construction. Based on the number of ADUs approved and under construction (44 total) plus the number that have completed construction (24), the City has averaged 12 ADUs per year over the last 5.5 years. Using the 30 ADU number of units permitted between 2018 and 2022, extrapolated to the eight-year planning period for the 6th Cycle Housing Element update, this equates to 48 units.

Additionally, property owners with existing ADUs constructed between the 1920s and 1980s have received building permits for remodeling of their ADUs, bringing them up to current building code standards. The City is also seeing new ADUs combined with new home construction.

Lastly, the Community Planning & Building Department actively encourages property owners with existing guest houses to convert them into ADUs by adding a kitchen.

Attachment 1
Junipero St.

Mountain View Ave.

Ocean Ave.

Carpenter St.

San Carlos St.

Monte Verde St.

Guadalupe St.

Santa Fe St.

Santa Rita St.
1st Ave.
2nd Ave.
3rd Ave.
4th Ave.
5th Ave.

Torres St.

Dolores St.

Lincoln St.

Camino Real
Casanova St.
6th Ave.
7th Ave.
9th Ave.
10th Ave.
8th Ave.

Housing Types and Affordability
Carmel Housing & Safety Element Update
0 550 feet
Figure C-30
Source: Monterey County GIS 2023,
Google Earth 2023
Second floor addition or full
redevelopment of commercial sites
Overnight Visitor Accommodation
conversion to housing units (proposal received)
Affordable multi-family
for seniors
NGO sites, SB-10
multi-family new construction
Mixed-income multi-family Office conversion
Adopted specific plan,
cottages
Affordable
multi-family
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-36 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Based on the City’s permit history and active support for ADUs, as well as the continued interest by property owners in rehabilitating existing ADUs and constructing new ADUs, it is reasonable to estimate a potential capacity of 34 ADUs over the 8 year Planning period. Following the rule of thumb recommended by HCD, these 34 units have been distributed to very low-, low-, moderate-, and above moderate-income households as follows: 30 percent, 30 percent, 30 percent, 10 percent, respectively.

Table of Housing Resources
This section provides the formal inventory table of sites that the City of Carmel-by-the-Sea will rely on in the 6th Housing Element planning cycle. Per state law and Housing Program 3.3 (see Chapter 2 of this 6th Cycle Housing Element), the City is required to maintain “no net loss” of the housing capacity represented by this list of parcels and the sites they comprise. To facilitate this, the inventory presented below has been designed with 33 percent buffer, not including opportunities for Overnight Visitor Accommodation sites and vacant single-family sites. This allows some degree of flexibility in decision making for individual development projects as they come forward for approval by the Planning Commission.

In short, with some limited flexibility, the City is committed to permitting housing on each of the parcels listed in the table below, and in doing so, ensuring that the number of units listed for each parcel in the table--“planned capacity”—is achieved. Should the City approve development that is below the parcel’s planned capacity, it is then required as part of that approval to:
 Find, based on quantitative evidence, that the remaining inventory of housing sites is still sufficient to meet the City’s 6th Cycle RHNA; or
 Identify one or more available sites with the realistic development capacity to replace the housing that would have otherwise been developed had consistency with planned capacity been achieved.

Table C-3, Housing Sites Inventory, provides details and capacity estimates for each of the parcels that comprise the 33 housing sites identified in the sections above. Figure C-31, Housing Priority Overlay and Zoning shows the diversity of the Housing Sites’ source zoning that has been assembled into the Overlay. Regulations included with the Overlay supersede the underlying zoning.

Attachment 1
Appendix C – Housing Sites Inventory Analysis C-37 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Table C-3 Housing Sites Inventory
Site # Location
(Reference to ECO NW Study) APN Zoning General Plan Acreage Applied
Density
(DU/AC)
Total
Realistic
Capacity
Very Low Low Moderate Above
Moderate
Primary Underutilized Sites
1 Sunset Center Lots Site (#1),
NE Corner of San Carlos & 8th 010143001000 A-2 OS/ Rec
Cultural 1.02 33 33 -- 17 16 --
2 Sunset Center Lots Site (#1),
NE Corner of San Carlos & 8th 010143001000 A-2 OS/ Rec
Cultural 1.02 33 33 -- 17 16 --
3 Ulrika Plaza Site (#2),
SW Corner of Dolores & 5th
010138003000
SC CC 0.37 33 12 -- -- -- 12
010138021000
4 City Public Works Site (Vista Lobos) (#3),
W/S Torres between 3rd & 4th, and
E/S Junipero between 3rd & 4th
010104001000
R-4 MFR 1.28 33 42 35 -- -- 7
010104004000
5 Bruno's Market Site (#6)
NE Corner of Junipero & 6th, and
NW Corner of Torres & 6th
010095013000
RC RC 0.53 33 17 12 5 -- -- 010095012000
6 First Church of Christ Parking Lot (#8),
Lincoln 2-4 NW of 6th
010212027000
010212004000 SB-10 SFR 0.28 33 9 -- 9 -- --
010212026000
7 Red Cross Site (#9),
SE Corner of Dolores & 8th
010144015000
SB-10 SFR 0.18 33 5 -- -- -- 5
010144016000
8 JB Pastor Building,
Dolores 2-4 SE of 7th (#12)
010145012000
010145024000 SC CC 0.46 33 11 -- -- -- 11
010145023000
9 Girl Boy Girl,
SW Corner of Mission & 7th (#13) 010142001000 SC CC 0.18 33 5 -- -- -- 5 10 Carmel Foundation Site (#14),
NE Corner of Lincoln & 8th
010149012000
A-3 SFR 0.62 33 20 10 10 -- -- 010149010000
010149011000
010149001000
Appendix C – Housing Sites Inventory Analysis C-38 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site # Location
(Reference to ECO NW Study) APN Zoning General Plan Acreage Applied
Density
(DU/AC)
Total
Realistic
Capacity
Very Low Low Moderate Above
Moderate
11 American Legion Site,
Dolores 2 SE 8th 010144014000 SB-10 SFR 0.18 33 5 -- -- -- 5 12 AT&T Building
SW Corner of Junipero & 7th 010087012000 RC RC 0.35 33 11 -- -- -- 11 13 Carmel Resort Inn,
SE Corner of Guadalupe & 1st,
Guadalupe 2-8 SE of 1st
010021014000
R-1 SFR 0.74 20 8 -- -- -- 8
010021013000
010021012000
010021011000
010021030000
010021031000
010021032000
010021033000
14 Forest Cottages Specific Plan,
NE Corner of Ocean & Mountain View
010085004000
010085005000 R-1 SFR 0.30 20 6 2 4
010085003000
Subtotal Primary Underutilized Sites 8.16 242 98 54 16 74 Sites Recycled from 5th Cycle
15 Court of the Fountains
NW Corner Mission & 7th 010141003000 CC CC 0.37 33 12 -- -- -- 12 16 First American Title
7th 2 SW of Mission 010142013000 SC CC 0.07 33 2 -- -- -- 2 17 Office building
NE Corner Monte Verde & 7th 010191004000 RC RC 0.07 33 2 -- -- -- 2 18 Yafa
NW Corner Junipero & 5th 010097007000 SC CC 0.18 33 5 -- -- -- 5 19 Three Garages Site (#7) 010098004000 SC CC 0.33 33 3 -- -- -- 3 Appendix C – Housing Sites Inventory Analysis C-39 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Site # Location
(Reference to ECO NW Study) APN Zoning General Plan Acreage Applied
Density
(DU/AC)
Total
Realistic
Capacity
Very Low Low Moderate Above
Moderate
20 Carmel Realty Office Site (#4)
NE Corner 8th & Delores
010145008000 RC RC 0.19 33 6 -- -- -- 6
21 Parashis Building
NW Corner Dolores & 6th 010138006000 CC CC 0.13 33 4 -- -- -- 4 22 The Agency
NW Corner Ocean & Dolores 010139001000 CC CC 0.09 33 2 -- -- -- 2 23 Sunset Terrace
NW Corner Mission & 8th 010142006000 RC RC 0.19 33 6 -- -- -- 6 24 Enzo's
San Carlos 2 SW of Ocean 010146001000 CC CC 0.15 33 4 -- -- -- 4 25 Doud Arcade
San Carlos 2 SW of Ocean 010146002000 CC CC 0.18 33 5 -- -- -- 5 26 Paseo San Carlos Square
San Carlos 2 NW of 7th Ave 010146003000 CC CC 0.18 33 5 -- -- -- 5 27 Paseo San Carlos Square
San Carlos 2 NW of 7th Ave 010146004000 CC CC 0.09 33 2 -- -- -- 2 28 Carmel Office Supply & Business Center
Lincoln SE of Ocean 010147010000 CC CC 0.09 33 2 -- -- -- 2 Subtotal Recycled Sites 60 60
TOTAL 302 98 54 16 134
Hospitality Employee Housing 31 8 12 11 0
Overnight Visitor Accommodation Transfer of Development 33 8 0 0 25 ADUs 34 11 11 11 3
Subtotal Other 82 19 23 22 20
GRAND TOTAL 400 117 92 68 182
RHNA 349 113 74 44 118
Difference 51 15 18 24 64
Difference (Percent) 115% 113% 124% 154% 154%
SOURCE: City of Carmel-by-the-Sea; EMC Planning Group Inc.

Junipero St.

Mountain View Ave.

Ocean Ave.

Carpenter St.

San Carlos St.

Monte Verde St.

Santa Rita St.

Guadalupe St.

Santa Fe St.
1st Ave.
2nd Ave.
3rd Ave.
4th Ave.
5th Ave.

Torres St.

Dolores St.

Lincoln St.

Camino Real
Casanova St.

Carmelo St.
6th Ave.
7th Ave.
8th Ave.
9th Ave.
10th Ave.
1 2
7 10 11
20 23
12 16 9
8 17
28 15
24 25
26 27
14 21 5
22 6
3 18
19 4
13 Housing Priority Overlay and Zoning
Carmel Housing & Safety Element Update
0 550 feet
Figure C-31
Source: Monterey County GIS 2023,
Google Earth 2023
Single-Family
Residential (R-1)
Multi-Family
Residential (R-4)
Service
Commercial (SC)
Residential and
Limited Commercial (RC)
Central
Commercial (CC)
Community and
Cultural District (A-2)
Senior Citizen
Facility District (A-3)
City Limit
Overlay District
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-41 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 C.4 AFFH Sites Analysis
Per AB 686, Housing Elements are required to analyze the location of lower-income sites in relation to high opportunity areas. This comes as a result of the inextricable link between the location of housing and access to resources and opportunities such as employment, schools, basic needs suppliers, etc. Disparities in housing needs and access to opportunities is most common among lower-income households. In an effort to affirmatively further fair housing in Carmel-by-the-Sea, the sites inventory has been analyzed in relation to access to resources, overcrowding, cost burden, environmental pollution burden, social vulnerability, displacement risk, and fair housing and equal opportunity cases.

According to the HCD AFFH Data Viewer,
3 Carmel-by-the-Sea is largely homogeneous when
analyzing levels of diversity, access to opportunity, overcrowding, cost burden, environmental pollution burden, social vulnerability, displacement risk, and fair housing and equal opportunity cases. However, the AFFH Data Viewer reveals two areas of analysis, cost burden by home owners and median income, which show geographic concentrations in particular areas of the City. Table C-4 provides an overview of the AFFH indicators described above, as they relate to Carmel-by-the-Sea, and Figures 32 and 33 express how the Sites Inventory correlate with the two AFFH indicators that exhibit variable information across the city.
3 https://affh-data-and-mapping-resources-v-2-0-cahcd.hub.arcgis.com/ Attachment 1
Appendix C – Housing Sites Inventory Analysis C-42 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Table C-4 AFFH Indicators Analysis Overview
AFFH Category Legend Category Surrounding Area Analysis Fig. A-6 Diversity Index, 2018
Carmel-by-the-Sea has a low level of diversity with no geographic variation across the City. To the north of Carmel-by-the-Sea, diversity levels are higher ranging from 55-<85. Del Rey Oaks, Seaside, and Sand City have the highest diversity levels in the surrounding region.

Fig. A-7 R/ECAP, 2009-2013 Carmel-by-the-Sea has no R/ECAPs in the City. There are no R/ECAPs in the surrounding region.

Fig. A-8 RCAA, 2015-2019
Carmel-by-the-Sea has no RCAAs in the City. The majority of surrounding areas have at least one RCAA. This may be due to a decade long high vacancy trend as a result of being a second home destination.

Fig. A-9 Percent Non-White
Population, 2018
Carmel-by-the-Sea has a non-White population of less than or equal to 20% with no geographic variation across the City. The majority of the surrounding region falls between <20-40% non-White. Pacific Grove and Monterey show small concentrations of higher diversity, but Del Rey Oaks, Seaside, and Sand City have the highest diversity in the region (41-80%).

Fig. A-15 Median Income,
2015-2019
Carmel-by-the-Sea has a concentration of households earning less than $87,100 in the central region of the City, while the northern and southern regions show concentrations of households earning between $87,100- $125,000. Nearby cities also show geographic variation in median income.

Monterey, Seaside, and Sand City show the greatest concentrations of households earning less than $55,000.

Appendix C – Housing Sites Inventory Analysis C-43 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 AFFH Category Legend Category Surrounding Area Analysis Fig. A-22 Overcrowded
Households
Carmel-by-the-Sea and the majority of the surrounding region have less than

8.2% overcrowded households. However, to the northeast, Seaside and Sand City have overcrowding rates of more than 20%.

Fig. A-25 Cost Burden by
Home Owners, 2015-2019
Carmel-by-the-Sea shows geographic variations in cost burden rates by home owners. 40-60% of owner households northern region of the City experience cost burden and more than 80% of owner households in the southern region. The majority of the surrounding region fall within 20-60% concentrations of cost burdened owner households. To the north, Del Rey Oaks shows the lowest concentration of cost burdened owner households (<20%).

Fig. A-26 Cost Burden by
Renters, 2015-2019
40-60% of Carmel-by-the-Sea renter households experience cost burden with no geographic variation. Much of the surrounding area has similar rates of cost burden among renters. However, regions to the south of Carmel-by-the-Sea have higher rates of cost burden by renters at 60-80% of households. To the north, Seaside and Del Rey Oaks also show higher levels of cost burden (60- 80%).

Pacific Grove shows geographic variation in cost burden rates among renters with a 20-40% concentration in the southern region of the City.

Fig. A-35 TCAC Opportunity
Composite Score, 2022
Carmel-by-the-Sea is a highest resource area with no geographic variation. The majority of surrounding regions to the north of Carmel-by-the-Sea are also highest resource areas with the exception of Seaside and Del Rey Oaks.

Seaside is a moderate resource area and Del Rey Oaks is a high resource area.

Appendix C – Housing Sites Inventory Analysis C-44 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 AFFH Category Legend Category Surrounding Area Analysis Fig. A-36 TCAC Opportunity
Economic Score, 2022 Carmel-by-the-Sea scores high (0.75-1.0) on economic outcomes. Surrounding regions mostly score high with the exception of Seaside and Del Rey Oaks.

Seaside shows concentrations of <0.25 in the western portion of the City and concentrations of 0.25-0.5 in the eastern portion.

Fig. A-37 TCAC Opportunity
Education Score, 2022
Carmel-by-the-Sea scores high (0.75-1.0) on positive education outcomes.

Surrounding regions show lower education outcomes ranging from 0.5-<0.25.

Fig. A-38 TCAC Opportunity
Environmental Score, 2022
Carmel-by-the-Sea scores high (0.75-1.0) on positive environmental outcomes.

Surrounding regions to the north of Carmel-by-the-Sea show more geographic variation in environmental outcomes. Monterey and Del Rey Oaks score low on environmental outcomes (0.25-0.5). Seaside scores lowest with a score of less than 0.25.

Fig. A-39 Social Vulnerability
Index, 2018
Carmel-by-the-Sea households are at a lower vulnerability level than surrounding regions. To the south of Carmel-by-the-Sea, households are at a

0.25-0.5001 level of vulnerability. Similarly, in Pacific Grove, Monterey, Del Rey Oaks, Seaside, and Sand City also fall into this vulnerability category. Seaside has concentrations of higher vulnerability in the northeastern region of the City.

Fig. A-44 Displacement Risk,
2022
Majority of surrounding region households are at lower displacement risk, including the northern region of Carmel-by-the-Sea. The Southern region of the City reports low data quality. The Cities of Monterey, Del Rey Oaks, Seaside, and Sand City show higher levels of displacement risk with geographic variation. Displacement risk in Seaside specifically, is highest among two (2) income groups with concentrations in the northeastern region of the City.

Appendix C – Housing Sites Inventory Analysis C-45 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 AFFH Category Legend Category Surrounding Area Analysis Fig. A-46 FHEO Cases Total,
Monterey County, 2020
Surrounding Monterey County region shows no variation in total fair housing cases. Carmel-by-the-Sea and region falls within 0.01-0.025 cases.

Fig. A-47 FHEO Cases,
Disability Bias, Monterey
County, 2020
Surrounding Monterey County region shows no variation in disability bias cases; Carmel-by-the-Sea and region falls within 40.01%-65%.

SOURCE: California Department of Housing and Urban Development, AFFH Data Viewer NOTES: Blue boxes in “Legend Category” column indicate which category Carmel-by-the-Sea falls within.

Red box outlining all three columns indicate geographic variation or concentrations present.

Appendix C – Housing Sites Inventory Analysis C-46 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Figure C-32 illustrates geographic concentrations of cost burden by home owners in Carmel-by-theSea, in addition to the sites inventory. In the northern region of the City, approximately 40 to 60 percent of home owner households experience cost burden. However, in the southern region of the City, more than 80 percent of owner households experience cost burden. Comparatively, the majority of surrounding regions fall within the 20 to 60 percent range of home owners experiencing cost burden.

Figure C-32 AFFH Sites Analysis: Cost Burdened Home Owners Attachment 1
Appendix C – Housing Sites Inventory Analysis C-47 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Figure C-33 illustrates geographic variation in median income in Carmel-by-the-Sea, in addition to the sites inventory. In the central region of the City, there is a concentration of households earning less than $87,100, while in the northern and southern regions there are concentrations of households earning between $87,100 and $125,000. Comparatively, the majority of surrounding regions also show some degree of geographic variation in median income.

Figure C-33 Sites and Carmel-by-the-Sea Median Income
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-48 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 C.5 Conclusion
The vacant and underutilized sites, on-site hospitality employee housing, and accessory dwelling units identified in this report are sufficient to accommodate approximately 115 percent of the City of Carmel-by-the-Sea’s Regional Housing Needs Allocation for the 6th Cycle planning period. This 15 percent “buffer” is highly recommended because of the state’s no-net-loss policy, which precludes jurisdictions from approving development that results in an overall housing site deficit.

The “buffer” essentially provides a degree of flexibility for policy makers as they make development decisions. Many of the sites identified in this report have existing uses that would need to be temporarily relocated, remodeled, or replaced before new housing could be constructed.

Carmel-by-the-Sea has successfully produced the variety of housing types projected to meet RHNA with this 6th Cycle Housing Element update. Examples can be found with Figure C-34, Example Development Map. Further, the incumbent staff, Marnie Waffle, has led four out of the five example projects shared with this image.

Nonetheless, for communities like Carmel-by-the-Sea that are largely built out and surrounded on all sides by other communities, redevelopment and densification is the only practical solution to providing its share of housing for the Monterey Bay Area RHNA. By its nature, such redevelopment is more costly and more time consuming than building new units on vacant land. To offset these constraints, a Housing Priority Overlay Zoning District will be established to facilitate redevelopment and/or intensification of uses on sites included in the City’s housing sites inventory (see Program 3.1.G in Chapter 2). This overlay zone implements a minimum density and clarifies permitting and incentives for affordable housing within the Municipal Code.

Attachment 1
0 250 feet
Brigantino Apartments -
Rehabilitation of existing
residential units.

Fink Condominium -
New residential addition to
existing commercial use.

Brosche Apartments -
Conversion of office to
residential use.

Der Ling Apartment -
Conversion of commercial to
residential use.

Clark Apartments -
New residential construction and
demolition of prior commercial use.
0 250 feet
5th Ave.
6th Ave.

Ocean Ave.
7th Ave.
8th Ave.

Junipero St.

Dolores St.

Lincoln St.

Monte Verde St.

Torres St.

Source: Monterey County GIS 2023
Carmel Housing & Safety Element Update
Figure C-34
Example Development Map
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-50 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 C.6 Overnight Visitor Accommodation Reference List
Two programs incentivize consideration of housing production by the Overnight Visitor Accommodation property owners. Program 1.3.B initiates a transfer of development rights and Program 1.3.D encourages employee housing to be constructed within existing sites for Overnight Visitor Accommodations. Table C-5 includes known properties that fit the Overnight Visitor Accommodation and would therefore be candidates for these incentive programs.

Table C-5 Existing Overnight Visitor Accommodation Locations APN Address Overnight Visitor Accommodation
Establishment Name
010148015000 Dolores & 8th Adobe Inn
010095010000 Junipero between 5th & 6th Best Western Carmel Bay View Inn 010136023000 5th & San Carlos BestWestern Carmel's Townhouse Lodge 010131011000 San Carlos between 4th & 5th Briarwood Inn 010131013000 E/S San Carlos between 4th & 5th Briarwood Inn II/Holland Court Inn 010136022000 San Carlos between 4th & 5th Candle Light Inn 010268008000 San Antonio & 8th Carmel Cottage Inn LLC
010124009000 SE Dolores & 3rd Carmel Country Inn LLC
010136021000 San Carlos @ 4th Carmel Fireplace Inn
010104002000 4th & Torres Carmel Garden Inn
010195501500 7th & Casanova Carmel Green Lantern Inn
010097007000 Junipero & 5th Carmel Inn & Suites
010131025000 San Carlos at 5th Carmel Lodge
010097018000 Mission & 5th Carmel Oaks
010021024000
010021025000
010021002000
010021003000
010021026000
010021027000
010021028000
010021029000
Carpenter between 1st & 2nd Carmel Resort Inn
010094002000 Ocean & Junipero Carmel Village Inn
010123005000 4th @ Mission Street Carmel Wayfarer Inn
010087002000 Junipero between 7th & 8th Carriage House Inn 010142002000 San Carlos @ 7th Coachman's Inn
010286015000 San Antonio & 13th Colonial Terrace
010094001000 Torres & Ocean Ave Comfort Inn Carmel by the Sea 010147008000 7th & Lincoln Ave Cypress Inn
010287008000 San Antonio, 4 SE of 13th Edgemere Cottages Attachment 1
Appendix C – Housing Sites Inventory Analysis C-51 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 APN Address Overnight Visitor Accommodation
Establishment Name
010085005000 SW Ocean/Torres Forest Lodge
010124001000
010124014000 2 NW of 4th on San Carlos Hofsas House
010109015000 SWC 3rd & Junipero Horizon Inn
010123014000 4th & San Carlos Hotel Carmel
010264006000 8th & Camino Real La Playa Hotel
010261014000 SE Camino Real & Ocean Lamplighter Inn
010191005000 Monte Verde @ 7th L'Auberge Carmel
010214032000 Ocean @ Monte Verde Lobos Lodge
010196027000 Monte Verde & 7th Monte Verde Inn
010201013000 Monte Verde @ 7th Monte Verde Inn East
010019061000 Ocean & Monte Verde Normandy Inn
010104005000 SEC 3rd & Junipero Ocean View Lodge
010273014000 Camino Real between 11th & 12th Sea View Inn 010194018000 SS 8th between Monte Verde & Casanova Stonehouse Inn c/o Carmel Realty 010261015000 Camino Real 2 SE of Ocean Sunset House
010124012000 4th & San Carlos Svensgaard's Inn
010214029000 Monte Verde & 6th Tally-Ho Inn
010087003000 Junipero between 7th & 8th The Hideaway
010148007000 NE Corner Lincoln & 8th The Homestead
010213003000 Ocean between Lincoln/Monte Verde The Pine Inn 010109016000 Mission @ 3rd Ave Tradewinds Carmel
010136016000 Dolores & 7th Vagabond House
010087013000 7th & Mission Wayside Inn
Attachment 1
Appendix C – Housing Sites Inventory Analysis C-52 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 This side intentionally left blank.

Attachment 1
Review of Previous Housing Element D

APPENDIX
Attachment 1
Attachment 1
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-13 Tables
Table D-1 Overview of Adopted Programs ............................................................................ D-3 Table D-2 Housing Units Produced, 2015-2023................................................................... D-13

Attachment 1
Attachment 1
Appendix D – Review of Previous Housing Element D-1 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Appendix D
Review of Previous Housing Element
D.1 Introduction
In order to effectively plan for the future, it is important to reflect back on the goals of the previous Housing Element and to identify those areas where progress was made and those areas where continued effort is needed. State Housing Element guidelines require communities to evaluate their previous Housing Element according to the following criteria:
 Effectiveness of the Element;
 Progress in Implementation; and
 Appropriateness in Goals, Objectives and Policies.

D.2 Effectiveness of the Element
The City’s 2015 Housing Element identified the following goals:

Goal G3-1 Preserve the existing housing stock;
Goal G3-2 Preserve existing residential units and encourage the development of new multifamily housing in the Commercial and R-4 Districts; Goal G3-3 Provide adequate sites for the development of a wide range of housing types for all citizens;
Goal G3-4 Protect the stability of residential neighborhoods by promoting year-round occupancy and neighborhood enhancement; and
Goal G3-5 Preserve and increase the supply of housing for lower- and moderate-income households, senior citizens and other special needs groups. Prohibit discrimination in the sale or rental of housing.

In order to achieve these goals, the 2015 Housing Element listed a series of policies and actions. The policies covered a range of actions, including (but not limited to): development of mixed-use projects with high-density housing; preserving existing second-floor housing over first-floor commercial uses; converting R-1 hotels to housing; enforcing the City’s prohibition on short-term rentals; reviewing requirements for conditional use permits on multi-family developments with Attachment 1
Appendix D – Review of Previous Housing Element D-2 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 densities greater than 22 du/ac; using City-owned surplus sites for affordable housing; and granting water priority to affordable housing projects. The 2015 policies and programs complied with State Housing Law guidelines in effect at the time.

D.3 Progress in Implementation
To assess the City’s progress in implementing the 2015 Housing Element, the following key areas were reviewed:
 Adopted Programs;
 Production of Housing;
 Preservation of “At Risk” Units; and
 Rehabilitation of Existing Units.

Each of these areas is discussed in detail below.

Overview of Adopted Programs
Table D-1, Overview of Adopted Programs, identifies all of the actions the City committed to in the 2015 Housing Element. The table also includes a description of the progress that was made during the 2015–2023 planning period.

Production of Housing
The 2015 Housing Element identified a Regional Housing Needs Allocation of 31 housing units in the City of Carmel-by-the-Sea between January 1, 2015 and June 30, 2023. The RHNA was divided into the following income categories:
 7 units affordable to extremely low- and very low-income households;  5 units affordable to low-income households;
 6 units affordable to moderate-income households; and  13 units affordable to above moderate-income households.

Attachment 1
Appendix D – Review of Previous Housing Element D-3 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Table D-1 Overview of Adopted Programs
Program
Number
Programs/Actions
[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element] Achievements/Effectiveness
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Goal G3-1: Preserve the existing housing stock.

Program 3-1.1.a
Housing Rehabilitation Information. Distribute information on the Inspection Services and Housing Rehabilitation programs available through Monterey County, and alternative ways of financing home repairs.

During the planning period, the City provided information on rehabilitation programs, inspection services, and home repair financing at City Hall and on the City’s website. During the Planning period, the City’s website was redesigned with new features that make navigation easier.

Dissemination of information at City Hall and on the City’s website is a passive activity that can effectively educate and inform the public.

Modify to improve
effectiveness by
taking a more active
role in disseminating
information at
established venues
such as the Farmer’s
Market, Library
programming and
local service
organizations.

Program 3-1.1.b
Residential Inspection Services. Inspect residences in the community for structural deficiencies and repair needs at the request of the property owner.

Throughout the Planning period, the City provided residential inspection services to residents as part of Code Enforcement complaints and during the building permit process. However, the City is not staffed to provide inspections outside of the building permit process and does not maintain the required certifications to identify structural deficiencies.

Delete
Program 3-1.1.c
Housing Maintenance Information. Disseminate informational materials identifying techniques used to upgrade property consistent with health and safety standards. The informational materials will continue to be disseminated at public buildings, through the City’s website, and in conjunction with Program 3-1.1.a.

During the planning period, the City provided housing maintenance information at City Hall and on the City website to facilitate the preservation of the existing housing stock. During the Planning period, the City’s website was redesigned with new features that make navigation easier.

Dissemination of information at City Hall and on the City’s website is a passive activity that can effectively educate and inform the public. To improve program effectiveness, capture a broader audience, and take a more active role in disseminating information, the City will take advantage of established venues such as the Farmer’s Market, Library programming, and local service organizations to promote available resources.

Modify and Combine
with 3-1.1.a.

Appendix D – Review of Previous Housing Element D-4 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program
Number
Programs/Actions
[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element] Achievements/Effectiveness
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Goal G3-2: Preserve existing residential units and encourage the development of new multi-family housing in the Commercial and R-4 Districts.

Program 3-2.1.a
Incentives for Mixed-Use Development. Provide floor area bonuses of up to 15 percent for projects that include housing for Moderate-, Low- and Very-Low-income households. Distribute informational materials outlining the floor area and other applicable incentives.

The City continues to encourage affordable housing in mixed-use development. No development participated in this program and it was not effective in generating additional new units.

Modify to improve the
incentive
Program 3-2.1.b
Preserve and Increase Second Floor Residential Uses. Prohibit the conversion of existing second-floor residential floor space to commercial use. Require newly constructed floor space at the second floor to be used as residential units.

The City continues to preserve existing second floor residential uses and encourages the conversion of second floor commercial space to residential use. This was a successful program that resulted in protection of existing units and construction of new units.

Continue.

Program 3-2.1.c
Incentives for Mixed Use Affordable Housing. Explore options to further incentivize upper-story housing opportunities, such as the potential of allowing a third story when devoted to affordable housing subject to appropriate design standards, including the City’s 30-foot height limit.

The City continues to look for ways to increase affordable housing opportunities. The City approved the Del Dono I and Del Dono II projects which included Moderate income units and a 3rd floor mezzanine.

Modify to specify 3rd
floor mezzanine.

Program 3-2.1.d
Multi-Family Residential Development Review. Monitor multifamily residential development applications to assess whether the CUP requirement (CUP for MFDs at densities 22 du/ac +) is posing an unreasonable development constraint. If it is determined that the CUP requirement is negatively affecting the cost and supply of housing, the City will initiate Zoning Code and LCP amendments to revise permit requirements for residential projects with densities greater than 22 du/ac to ensure permits are granted based on objective criteria.

The City monitored the review process for multi-family residential development and found that the Use Permit requirement for multi-family projects at densities between 23 and 33 dwelling units per acre was not a deterrent to development. The primary constraint to increased density remains a lack of water resources. However, the City remains open to eliminating the Use Permit requirement for all densities greater than 22 dwelling units per acre.

While the monitoring of multi-family residential development applications did not reveal an unreasonable development constraint, the elimination of the Use Permit requirement would result in cost savings for applicants who would no longer have to pay the Use Permit application fee. Additionally, the application processing time would be reduced by eliminating one of the permit entitlements.

Modify to remove the
CUP requirement for
densities up to 33
du/ac.

Appendix D – Review of Previous Housing Element D-5 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program
Number
Programs/Actions
[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element] Achievements/Effectiveness
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Goal G3-3: Provide adequate sites for the development of a wide range of housing types for all citizens.

Program 3-3.1.a
Adequate Sites. The City will encourage and facilitate the development of new dwelling units consistent with the RHNA need by continuing to work with housing providers such as the Carmel Foundation. The City will also encourage development of new affordable units through incentives and concessions outlined in Programs 3-5.4.a, 3-5.4.b, 3-5.5.a, 3-5.5.b, and 3-5.5.c of this Housing Element.

The City encouraged the construction of new dwelling units to meet the City's RHNA requirements and promoted incentives and concessions to facilitate new construction. A lack of water resources continues to be the largest constraint to developing high-density housing.

The Carmel Foundation manages 50 affordable senior housing units in Carmel. While the City has a long-standing relationship with the Foundation, they do not accept government funding, and the operating costs of the housing units result in an annual deficit. Identification of additional funding sources and housing providers should be considered while maintaining a strong relationship with the Foundation.

City staff regularly promotes the incentives available for developing new affordable units when meeting with prospective developers and processing new development applications. The primary constraint to increased density remains a lack of water resources.

Modify. The City will
craft a policy
requiring minimum
densities.

Program 3-3.1.b
Surplus Sites. Investigate the feasibility of utilizing surplus sites for housing development and partnering with housing providers to develop housing for lower-income households and/or senior housing on appropriate surplus sites.

The City continues to evaluate the feasibility of constructing new housing on surplus land, specifically the Sunset Center parking lots (north and south). No development partners emerged during this Housing Element cycle; however, discussions remain ongoing.

Modify to identify
underutilized Cityowned sites including
Flanders Mansion,
Sunset Center
parking lots, Post
Office parking lot and
Vista Lobos.

Program 3-3.1.c
Development on Small Sites. The City will continue incentives and provisions that facilitate development on small sites including reduced parking requirements for affordable housing projects (0.5 parking spaces per unit), density bonuses that allow for development up to 88 du/ac, flexible or in some cases no required During the planning period, the City maintained reduced parking requirements for affordable housing projects and the density bonus provisions allowing high-density housing development of up to 88 dwelling units per acre. A lack of water resources continues to be the largest constraint to developing high-density housing.

Modify to continue lot
merger approval by
Director, simplify
parking requirement
reductions,
Appendix D – Review of Previous Housing Element D-6 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program
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setbacks in the R-4 zone, and lot mergers. The City will review its Lot Merger Program to determine if any refinements should be made, including a requirement that mergers be approved by the Planning Commission rather than the Director. The City may also consider incentives for commercial lot mergers when lower-income units are provided, and eliminating any provisions of this program that have the unintended effect of restricting housing opportunities.

The City continued to promote incentives associated with lot mergers in the single-family district, including additional floor area for the primary dwelling and accessory dwelling units, additional site coverage, and an additional accessory structure. Lot merger applications continue to be approved by the Community Planning & Building Director.

No development participated in the density bonus or setback incentive in the commercial or multi-family districts.

The City did not pursue a lot merger incentive program for the commercial districts. Density bonus regulations continue to provide the greatest incentive.

Most lot merger applications were for single building sites comprised of multiple legal lots of record. Merging these sites did result in the granting of incentives
reevaluate the
density bonus and
setback incentives.

Program 3-3.2
Address Infrastructure Constraints. Work cooperatively with the Monterey Peninsula Water Management District (MPWMD) and other regional agencies to address infrastructure limitations (e.g. sewer, water, roads) that affect the ability to serve new housing development. Grant water allocation priority to those projects that assist the City in meeting its share of the regional housing need for lower- and moderate-income households.

During the planning period, the City continued to work with regional agencies such as the Monterey Peninsula Water Management District (MPWMD) and the Carmel Area Wastewater District (CAWD) to ensure adequate infrastructure is in place to accommodate new housing and maintenance of existing residential units. Additionally, the City focused on stormwater drainage improvements to reduce flooding. The City’s Public Works Department continues to improve City infrastructure related to road maintenance and storm drains. The City continued prioritizing water allocation for lower-income units; however, no development applications were received for lower-income housing.

Lack of water resources continues to be a significant constraint to housing development. The City will establish a formal policy to prioritize water allocations to affordable housing projects.

Modify to further
prioritize water
allocation for lower
income units by
developing a new
City policy.

Appendix D – Review of Previous Housing Element D-7 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program
Number
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[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element] Achievements/Effectiveness
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Goal G3-4: Protect the stability of residential neighborhoods by promoting year-round occupancy and neighborhood enhancement.

Program 3-4.1.a
Permanent Housing. Continue to implement the ordinance
adopted in 1988 prohibiting short-term, transient rentals and timeshares of residential dwellings in the R-1 District.

The City continued to enforce the prohibition of short-term rentals in the single-family residential district. The City continues to use Host Compliance as part of the ongoing enforcement. On average, 27 violation letters were mailed annually during the planning period.

A significant percentage of single-family homes continue to remain vacant for part of the year due to second home ownership.

During the planning period, the City enforced the provisions of the Timeshare Ordinance and made minor updates to the Ordinance to increase clarity. One enforcement action was taken against a timeshare company during the planning period.

Modify to explore
methods to raise
funds including
establishing an
Affordable Housing
Trust Fund, , property
tax reduction or ADU
incentive program.

Program 3-4.1.b
Conversion of R-1 Motels. Continue to allow conversion of R-1 motel units into permanent residences with the transfer of vacated rooms to the commercial district.

During the planning period, the City allowed the conversion of R-1 motels to permanent residences. Specifically, the Happy Landing Inn was converted to a permanent residence during the planning period.

Additionally, a change in ownership of the Carmel Resort Inn resulted in a development application to downsize the footprint of the hotel property and construct 8 new single-family dwellings. Two of the 8 homes have been approved by the Planning Commission.

Modify to better
incentivize the
program to
encourage MFD.

Program 3-4.2.a
Neighborhood Compatibility. Continue to enforce height, coverage and floor area standards to ensure that new construction and remodels do not present excess visual mass or bulk to public view or to adjoining properties. Continue to enforce design standards which ensure that buildings relate to a human scale and that they avoid use of oversize design elements that make them appear dominating or monumental. Continue to require that projects not meeting adopted design guidelines be reviewed by the Planning Commission.

The City continues to review new construction for compatibility with the existing neighborhood. In 2021, the City received 26 new Track 2 Design Study planning applications for single-family units which required Planning Commission hearings.

Delete.

Appendix D – Review of Previous Housing Element D-8 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program
Number
Programs/Actions
[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element] Achievements/Effectiveness
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Program 3-4.2.b
Support Community Organizations. Continue to support
neighborhood organizations that promote neighborhood
involvement, safety and improvement. When appropriate, develop partnerships with these organizations to promote neighborhood enhancement programs, conduct outreach, and solicit community input.

The City continues to support and partner with neighborhood organizations such as the Carmel Residents Association and the Carmel Foundation and the more recently formed Carmel Cares. These community organizations are an effective means to provide a wide variety of services to residents including meal programs, mobility equipment loans, caregiver support and general information and resources to help navigate the complex world of services and resources.

Modify to further
support outreach and
education.

Program 3-4.3.a
Neighborhood Preservation Educational Programs. Continue to use education programs to improve public understanding of the City’s rich cultural and design heritage as a means of encouraging compatible housing design within existing neighborhoods, and provide zoning flexibility and incentives to facilitate rehabilitation of historic resources.

The City continues to implement the Historic Preservation Ordinance and the review of properties for historical significance upon submittal of a planning application. In 2021, the City reviewed 75 residential properties for historical significance and property improvements. The City uses the Historic Building Code to facilitate residential rehabilitation.

Continue.

Goal G3-5: Preserve and increase the supply of housing for lower- and moderate-income households, senior citizens and other special needs groups. Prohibit discrimination in the sale or rental of housing.

Program 3-5.1
Reasonable Accommodation Procedures. Continue to
implement Policy C11-01, which describes procedures to provide reasonable accommodation for persons with disabilities in compliance with the provisions of SB 520. Information on reasonable accommodation procedures shall be provided at City Hall and on the City’s website.

The City continues to promote the reasonable accommodation process to residents on a project specific basis. A number of inquiries were received throughout the planning period; however, few applications were received. All applications were approved. The City is currently evaluating the application fee to ensure it does not discourage the use of the policy.

Modify to reduce
permit fee.

Program 3-5.2
Shared Housing Information. Distribute informational materials from the Monterey County Housing Authority to the Carmel Foundation and display information at City Hall and other public buildings and posted on the City’s website.

The City continues to provide information related to shared housing information at City Hall and on the City’s website. This program has generally been effective and the Carmel Foundation has over 2,600 members, many of whom live in Carmel and the surrounding region.

Modify to clarify
intent and enhance
education and
outreach.

Appendix D – Review of Previous Housing Element D-9 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program
Number
Programs/Actions
[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element] Achievements/Effectiveness
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Program 3-5.3a
Condominium Conversions. Continue to implement
condominium conversion policy, which restricts the conversion of apartments to condominiums to preserve the lower-cost rental housing options, typical of apartments, within the City. Apartments cannot be converted to condominiums unless a new apartment is being created to offset the conversion.

The City continues to implement the Condominium Conversion Ordinance to actively preserve and protect existing apartments. No formal applications for condominium conversions were submitted during the planning period and the Ordinance appears to be effective in halting conversions.

Continue.

Program 3-5.3.b
Section 8 Rental Assistance. Continue to facilitate use of the Section 8 program in the community by distributing information for the program at City Hall and the Library.

The City continues to provide information regarding Housing Choice Voucher (Section 8) rental assistance at City Hall, on the City’s website, and through the library.

Continue.

Program 3-5.3.c
Subordinate Units. The City's Municipal Code allows construction of new subordinate units as a permitted use on lots of 8,000 square feet or greater to provide additional rental housing in the R1 District to lower-income households. To further encourage the creation of subordinate units, the City will investigate potential amendments such as permitting subordinate units on smaller lots.

In addition, the City will implement incentives which may include waiver/reduction of certain fees, priority processing, and reduced parking and setback requirements. The City will provide informational materials on incentives and technical assistance to property owners. The informational materials will be available at City Hall and on the City’s website.

The City has a long history of permitting Subordinate Units (now called Accessory Dwelling Units). The City reviewed the subordinate unit regulations during the planning period and adopted updated regulations to facilitate new dwelling units. The amended regulations were approved by the California Coastal Commission and incorporated into the City’s Local Coastal Plan. The City is currently working on additional amendments to the regulations in accordance with State law.

During the planning period 36 applications (in 2021, the City received 18 new applications) for Accessory Dwelling Units (ADUs) were received and continues to issue building permits for ADUs. This program was effective and will be modified to further encourage ADUs and Junior ADUs.

Modify to reflect
State Laws governing
ADUs and combine
regulations for
Subordinate Units
and Guest Houses to
clarify regulations.

Allow the use of
ADUs at existing
hotels as a means of
employee housing.

Program 3-5.3.d
Monitor Affordable Housing Stock. Continue to monitor
affordable housing projects and work with the owners to preserve affordability through identification of funding sources and/or opportunities for partnerships with other housing providers.

Annually monitor the affordable housing stock in the coastal zone to ensure the affordable housing within the coastal zone is being protected and provided as required by Government Code Section 65590. The City will track data on the new construction, demolition, conversion and replacements housing units for low- and moderateincome households within the coastal zone including the following:

The City continued to monitor the existing affordable housing stock in partnership with the Carmel Foundation. Other than the defunct Del Dono I and II projects, no new affordable housing units were approved in the Coastal Zone during the planning period. Additionally, no existing affordable units were demolished or converted.

Modify to update the
City database to
better track
affordable housing
and facilitate
monitoring.

Appendix D – Review of Previous Housing Element D-10 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program
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[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element] Achievements/Effectiveness
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• The number of new housing units approved for construction within the coastal zone;
• The number of housing units for persons and families of lowand 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 moderateincome persons and families that have been required for replacement (of those units being demolished or converted) within or three miles of the coastal zone.

Program 3-5.4.a Density Bonus. Review and revise applicable density bonus ordinances to comply with State law.

The City adopted a new density bonus ordinance in conformance with State requirements. No development took advantage of the density bonus ordinance during the planning period possibly because the regulations are confusing and difficult to apply.

Modify to clarify
regulations.

Program 3-5.4.b
Housing for Extremely-Low Income Households. Encourage
the development of housing units for households earning 30 percent or less of the Median Family Income (MFI) for Monterey County. Specific emphasis shall be placed on the provision of family housing and non-traditional housing types such as singleroom-occupancy units and transitional housing. Encourage development of housing for extremely-low-income 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 The City continued to work with developers and promote the construction of affordable housing. Projects that included affordable housing units received expedited review. These included Del Dono I and Del Dono II.

However, no applications for lower-income households were submitted during the planning period.

During the planning period, the construction of Accessory Dwelling Units (ADUs) provided housing opportunities for extremely low-income households.

Group Residential facilities are permitted with the approval of a Use Permit in the R-4 district. Group Residential is defined as Shared living quarters without separate kitchens or bathrooms for each room or unit, including boarding houses, dormitories, and private residential clubs, but excluding guesthouses.

Continue.

Appendix D – Review of Previous Housing Element D-11 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program
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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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offering additional incentives to supplement the density bonus provisions in State law.

Program 3-5.5.a
Reduced Entitlement and Development Fees. Continue to
reduce the amount of fees required for projects that provide affordable housing to the extent feasible.

The City continued to waive parking requirements for apartments in the Central Commercial (CC) District. The City also provides reduced parking in-lieu fees for constructing new residential units in other commercial zones.

Fee studies are conducted every 3 years. Fees are based on staff processing time. Other than the parking in-lieu fee (which has not been collected in years), the City does not impose impact fees.

Modify to reduce fees
for affordable
residential projects.

Program 3-5.5.b
Reduced Parking Requirements. Continue to offer reduced parking requirements for affordable housing developments.

In addition, investigate the feasibility and effectiveness of further reducing existing in-lieu fees and amending the existing shared parking program to include housing units in affordable housing projects.

The City continued to offer reduced parking standards for affordable housing and senior housing units. The City also waived on-site parking requirements and payment of parking in-lieu fees for new apartments in the Central Commercial (CC) zoning district. Additionally, the City passed an Ordinance fixing the parking in-lieu fee at the 2003 rate until further notice. The regulations can be confusing and the City will work to better clarify the program.

Modify.

Program 3-5.5.c
Expedited Processing Procedures. Continue to offer expedited review procedures for residential projects that include affordable housing units.

The City continues to expedite the review of projects that include an affordable housing component. Specifically, the City expedited the review of two housing projects, Del Dono I and Del Dono II, which included 16 residential units with 2 deed-restricted moderate-income units. Unfortunately, a lack of construction funding halted the project's construction, and the properties are now under new ownership. A revised housing proposal that includes 12 apartments is under review and does not currently include any affordable housing and therefore does not qualify for expedited processing. The expedited regulations can be confusing and the City will work to better clarify the program.

Modify to clarify and
refine expedited
processing
procedures.

Program 3-5.6.a
Energy Conservation and Green Building. Continue to review applications for new construction and substantial alterations taking into consideration solar orientation and access to sunlight.

Additionally, continue to require compliance with current state building standards for energy efficiency in all new homes.

The City continues to promote energy conservation through the building plan check review process. The City will continue to implement the energy conservation requirements set forth in the Building Code and look for opportunities to promote energy conservation at City Hall and on the City website.

Modify to enhance
outreach efforts.

Appendix D – Review of Previous Housing Element D-12 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Program
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Programs/Actions
[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element] Achievements/Effectiveness
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Program 3-5.6.b
Water Conservation. Enforce the Water Management Program and provide information to the community on water conservation retrofits and best practices. In addition, provide information on and promote water conservation education and retrofit rebates provided by the Monterey Peninsula Water Management District.

The City continues to promote water conservation in coordination with the Monterey Peninsula Water Management District. The City will continue these efforts and look for opportunities to further promote water conservation measures.

Modify to enhance
outreach efforts.

Program 3-5.7
Fair Housing Services. The California Department of Fair Employment and Housing and the Conflict Resolution and
Mediation Center of Monterey County provide fair housing services and information. These agencies advise persons in need of information on housing and employment, mediate landlord/tenant disputes and research complaints about discriminatory housing practices. The City shall coordinate with these agencies to provide printed information about fair housing services at City Hall, on the City’s website, and in other public buildings. The City shall also refer inquiries related to fair housing to these agencies.

The City provides fair housing information to the public at City Hall and on the City website and will continue to maintain and update the information. The City will continue to maintain, update and look for opportunities to expand the information available to the public.

Modify to enhance
outreach efforts.

Program 3-5.8
Zoning for Transitional and Supportive Housing. In compliance with SB 2, the City will continue to allow transitional/supportive housing as a residential use, subject only to those requirements of other residential dwellings of the same type in the same zone.

The City did not receive any inquiries regarding transitional or supportive housing during this planning period.

Continue and update
the Municipal Code.

SOURCE: City of Carmel-by-the-Sea
Appendix D – Review of Previous Housing Element D-13 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Table D-2 provides a summary of housing units produced in the city from 2015-2023. During the 2015–2023 planning period, 18 new units were added to the City’s housing stock, achieving approximately 58 percent of the City’s RHNA. This indicates that residential growth was slower than anticipated, likely due to the lack of available water, the COVID pandemic, the cost of land, and the overall lack of support for new housing development in the community. All 18 units produced were affordable to households with above-moderate incomes.

Table D-2 Housing Units Produced, 2015-2023
Affordability New Construction
Need
Housing Units
Produced Percent Achieved
Very Low 7 0 0.0%
Low 5 0 0.0%
Moderate 6 0 0.0%
Above Moderate 13 18 100.0%
Total 31 18 58%
SOURCE: HCD Annual Progress Report Dashboard (as of May 19, 2023).

NOTE: This table should be updated prior to finalization to account for units through January 1, 2024.

Preservation of “At Risk” Units
The California Housing Partnership Preservation Database is the state’s most comprehensive source of information on subsidized affordable housing at risk of losing its affordable status and converting to market-rate housing.1 According to the database, there are no federal or state assisted units in Carmel-by-the-Sea. Currently, there are no affordable housing units at risk of conversion to market rate.

Rehabilitation of Existing Units
The 2015 Housing Element identified an objective of rehabilitating a total of 16 affordable units and 784 above-moderate-income units in the 2015–2023 planning period. The City issued over 250 building permits on average each year that permitted re-roofs, water heater upgrades and replacement, electrical upgrades, window repairs and replacements, and remodels.

D.4 Summary
Like many communities, the City of City of Carmel-by-the-Sea experienced strong development of single-family homes, Accessory Dwelling Units and conversion of second-floor commercial space to residential units during the 2015–2023 planning period. Of the 31 units identified in the City’s 1 This database does not include all deed-restricted affordable units in the state, so there may be at-risk assisted units in a jurisdiction that are not captured.

Attachment 1
Appendix D – Review of Previous Housing Element D-14 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 RHNA, the City permitted 18 units (approximately 58 percent of the total), all of them for above moderate-income households; however, some of these units are ADUs which represent housing opportunities for lower-income housing.

The goals, objectives, and policies identified in the 2015 Housing Element were appropriate for the 2015-2023 timeframe because they complied with the program requirements mandated by State law at the time. The 6th Cycle Housing Element will be revised to address new state mandates and to put the City of Carmel-by-the-Sea on track to fully meet its housing obligations.

Attachment 1
List of Contacted Organizations E

APPENDIX
Attachment 1
Attachment 1
Table of Contents
APPENDIX E LIST OF CONTACTED ORGANIZATIONS ....................................................E-1 E.1 Introduction ........................................................................................................................... E-1 E.2 List of Contacted Organizations ......................................................................................... E-1 E.3 City Contact List.................................................................................................................... E-4 E.4 Tribal Consultation................................................................................................................ E-5 E.5 Service Organizations ........................................................................................................... E-7 E.6 Additional Outreach .............................................................................................................. E-9 Attachment 1
Attachment 1
Appendix E- List of Contact Organizations E-1 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Appendix E
List of Contacted Organizations
E.1 Introduction
This Appendix provides the names of organizations, tribal units, and other stakeholders that were contacted during the preparation of Carmel-by-the-Sea’s 6th Cycle Housing Element. In addition to these contacts, the City created a dedicated website called: “HOME Carmel-by-the-Sea” which can be found at https://homecarmelbythesea.com. This website provides a portal to all of the Housing Element-related community engagement activities that were available to members of the public during the update process. This includes information on Housing Element basics, site surveys, stakeholder surveys, and materials from community workshops.

E.2 List of Contacted Organizations
This section provides contact information for organizations and agencies in the Monterey Bay Area, stakeholder property owners, and interested parties that were contacted during the Housing Element preparation.

Organizations and Agencies
Association of Monterey Bay Area Governments
24580 Silver Cloud Court
Monterey, CA 93940
T: (831) 883-3750
Heather Adamson
Association of Monterey Bay Area Governments (ambag.org) Monterey Peninsula Water Management District
5 Harris Court, Building G
Monterey, CA 93940
T: (831) 658-5601
Stephanie Locke
Monterey Peninsula Water Management District (mpwmd.net) Carmel Area Wastewater District
3945 Rio Rd.

Carmel, CA 93922
T: (831) 624-1248
Carmel Area WasteWater District (cawd.org)
Attachment 1
Appendix E – List of Contacted Organizations E-2 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Carmel Chamber of Commerce
Ocean Ave. between Junipero and Mission
Inside Carmel Plaza 3rd Floor
Carmel, CA 93921
(831) 624-3877
Carmel Chamber of Commerce
Carmel Foundation
SE Corner of 8th Ave. and Lincoln St.

Carmel, CA 93923
T: (831) 624-1588
Holly Zoller
www.carmelfoundation.org
Landwatch Monterey County
306 Capitol Street #101
Salinas, CA 93901
T: (831) 759-2824
Jose Torres
Monterey County - LandWatch
Stakeholder Property Owners
 Esperanza Carmel, Christopher Mitchell;
 Carmel Realty, Bill Mitchell;
 Pine Inn, Richard Gunner & Dave Tipton;
 Bruno’s, Thomas Sweeney;
 3 Garages, Judie Profeta;
 First Church of Christ, Kent Wadsworth;
 Café Carmel, Greg Kraft and Kim Marie Archer;
 Wells Fargo, Brian Buhowsky;
 GBG, Montag Ivestor;
 Carmel Presbyterian, Bob Spencer;
 Yafa Property, Sandy Freschi;
 Levett Properties, Denny Levett & Jeanne Cox Levett;
 Doud Arcade, John Plastini; and
 Linggi Building / Flaherty's, Alan Buchwald.

Attachment 1
Appendix E – List of Contacted Organizations E-3 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Interested Parties
 Eric Miller Architects, Eric Miller;
 Silverie Properties, Dan Silverie III;
 Silcon Constructors, Dan Silverie IV;
 Winter & Co, Nore Winter;
 Carmel Plaza, Kristin Torrice;
 Carmel Residents Association, Nancy Twomey;
 Carmel Preservation Association;
 Carmel Heritage Society;
 Monterey Bay AIA, Executive Director;
 Builders Exchange, Sandy Steele;
 Christ Tescher Construction, Chris Tescher;
 Carmel Boutique Inns/Vagabond House Inn, Amanda Levett;  Jody LeTout;
 Walker and Reed, Jim Heisinger;
 American Legion, Gerry Paratore;
 Cal-Clark Farms, Stu Clark;
 Bennett Sculpture Carmel, Ashley Stoddard;
 Sue McCloud;
 Su Vecino, Shari Polovneff;
 Vesuvio, Little Napoli, Carmel Bakery, Rich Pepe;
 Luca/L’auberge/Carmel Beach Hotel, David Fink;
 Hakim, Jack Hakim;
 Mandurrago & Associates, John Mandurrago;
 Forge in the Forest, Greg Profeta;
 Classic Hotels, Mary Crowe;
 Carmel Lodge, Mark Stilwell;
 Dyar Architects, Erik Dyar;
 Thomas Bateman Hood Architects, Thomas Hood;
Attachment 1
Appendix E – List of Contacted Organizations E-4 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023  Justin Pauly Architects, Justin Pauly;
 Cushman Wakefield Properties, Michael Schoeder;
 Fred Kern;
 Lewis Builders, Scott Julian;
 Beesley Realty, Ben Beesley;
 Visit Carmel, Amy Herzog;
 Jeanne Cox Levett;
 Gerard Rose;
 Franklin Williams; and
 Catherine and John Compango.

E.3 City Contact List
This section provides contact information for City officials that were involved with Housing Element preparation.

Elected and Appointed Officials
City Council
 Dave Potter, Mayor;
 Payor ProTem/Housing Ad Hoc Member, Bobby Richards;
 City Councilmember/Housing Ad Hoc Member, Karen Ferlito;  City Councilmember Jeff Baron; and
 City Councilmember, Alissandra Dramov.

Planning Commission
 Michael LePage;
 Stephanie Locke;
 Chris Bolton;
 Robert Delves; and
 Erin Allen.

Attachment 1
Appendix E – List of Contacted Organizations E-5 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Historic Resources Board
 Eric Dyar;
 Karyl Hall;
 Jordan Chroman;
 Kathy Pomeroy; and
 Esther Goodhue.

City Staff
 Brandon Swanson, Director of Community Planning & Building;  Marnie Waffle, AICP, Principal Planner;
 Katherine Wallace, AICP, Associate Planner;
 Chip Rerig, City Administrator;
 Robert Harary, Public Works Director;
 Gaudenz Panholzer, Fire Chief; and
 Ashlee Wright, Library and Community Activities Director.

E.4 Tribal Consultation
This section provides contact information for all tribal consultation during Housing Element preparation.

Irene Zwierlein, Chairperson
Amah Mutsun Tribal Band of Mission San Juan Bautista
3030 Soda Bay Road
Lakeport, CA, 95453
Valentin Lopez, Chairperson
Amah Mutsun Tribal Band
P.O. Box 5272
Galt, CA 95632
Tony Cerda, Chairperson
Costanoan Rumsen Carmel Tribe
244 E. 1st Street
Pomona, CA, 91766
Attachment 1
Appendix E – List of Contacted Organizations E-6 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Rudolph Rosales (Ulax Huchumas)
Indigenous Peoples Consultant
Esselen Nation
P.O. Box 647
Monterey, CA 93942
Susan Morley, Cultural Resources
Esselen Tribe of Monterey County
3059 Bostick Avenue
Marina, CA 93933
Tom Little Bear Nason, Chairman
Esselen Tribe of Monterey County
P. O. Box 95
Carmel Valley, CA, 93924
Ann Marie Sayers, Chairperson
Indian Canyon Mutsun Band of Costanoan
P.O. Box 28
Hollister, CA, 95024
Kanyon Sayers-Roods, MLD Contact
Indian Canyon Mutsun Band of Costanoan
1615 Pearson Court
San Jose, CA, 95122
Isaac Bojorquez, Chairman
Kakoon Ta Ruk Band of Ohlone-Costanoan Indians of the Big Sur Rancheria PO Box 8355
Woodland, CA, 95776
Christanne Arias, Vice Chairperson
Ohlone/Costanoan-Esselen Nation
519 Viejo Gabriel
Soledad, CA, 93960
Louise Miranda-Ramirez, Chairperson
Ohlone/Costanoan-Esselen Nation
P.O. Box 1301
Monterey, CA, 93942
Dee Dee Ybarra, Chairperson
Rumsen Am:a Tur:ataj Ohlone
14671 Farmington Street
Hesperia, CA, 92345
Attachment 1
Appendix E – List of Contacted Organizations E-7 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Kenneth Woodrow, Chairperson
Wuksache Indian Tribe/Eshom Valley Band
1179 Rock Haven Ct.

Salinas, CA, 93906
E.5 Service Organizations
Housing Authority of the County of Monterey
123 Rico Street
Salinas, CA 93907
(831) 775-5000
Monterey County Department of Social Services
1000 South Main Street
Salinas, CA 93901
(831) 755-4448
Catholic Charities Dioceses of Monterey
922 Hilby Avenue, Suite C.

Seaside, CA 93955
Monterey Peninsula (831) 393-3110
Salinas Valley (831) 422-0602
United Way Monterey County
232 Monterey Street
Suite 200
Salinas, CA 93901
(831) 372-8026
CHISPA, Inc.
295 Main St. #100
Salinas, CA 93901
(831) 757-6251
Mid-Peninsula Housing Coalition
303 Vintage Park Drive
Suite 250
Foster City, CA 94404
(650) 356-2900
[email protected]
Habitat for Humanity Monterey Bay
108 Magnolia Street
Santa Cruz, CA 95062
(831) 469-4663
www.habitatmontereybay.com

Attachment 1
Appendix E – List of Contacted Organizations E-8 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 ECHO Fair Housing Services
580 Pacific Street
Monterey, CA 93940
(831) 566-0824
https://www.echofairhousing.org/fair-housing-services.html Central Coast Center for Independent Living
318 Cayuga Street
Suite 208
Salinas, CA 93901
(831) 757-2968
https://www.cccil.org/
Center for Community Advocacy
22 West Gabilan Street
Salinas, CA 93901
(831) 753-2324
https://cca-viva.org/
The Salvation Army Good Samaritan Center
1491 Contra Costa
Seaside, CA 93955
(831) 899-4911
https://montereypeninsula.salvationarmy.org/
Hope Services
1144 Fremont Blvd.,
Suite D
Seaside, CA 93955
(831) 393-1575
https://www.hopeservices.org/
Coalition of Homeless Service Providers
1942 Fremont Boulevard
Seaside, CA 93955
(831) 883-3080
https://chsp.org/
Monterey County Stand Down for Homeless Veterans
https://www.montereystanddown.org/
Diocese of Monterey
425 Church Street
Monterey, CA 93940
(831) 373-4345
https://dioceseofmonterey.org/
Attachment 1
Appendix E – List of Contacted Organizations E-9 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 E.6 Additional Outreach  Website: “Housing Opportunities Made Easier (H.O.M.E.) Carmel-by-the-Sea” (homecarmelbythesea.com) launched April 5, 2023. The website is presented in English with surveys in English and in Spanish. Information continues to be posted on this website;  Housing Element Website Information Published: April 2023, May 2023, June 2023;  April, 2023 – ongoing: E-Notification informing the public to, “Visit our Dedicated Housing Element Website” was sent in April 2023 and included in subsequent “City Administrator Friday Letter” e-notifications on a near-weekly basis;
 November 17, 2022: Housing Ad Hoc Committee Community Meeting provided a Housing Element Introduction and Overview;
 February 7, 2023: City Council meeting to review the Housing Feasibility Study by ECONorthwest and enter into contract with EMC Planning Group for Housing and Safety Element updates;
 March 28, 2023: Housing Ad Hoc Committee Community Meeting provided an overview of the housing feasibility study authored by ECONorthwest and constraints that limit housing production;
 April 6, 2023: Housing Ad Hoc Committee Community Meeting addressed 5th Cycle accomplishments and goals, programs, and policies;
 May 24, 2023: Housing Ad Hoc Committee Community Meeting discussed the importance of equity, housing needs assessment information, and potential 6th Cycle programs, and provided some strategies for sites and ways to provide feedback throughout this process;  June 15, 2023: Joint City Council and Planning Commission Special Meeting hosted by the Housing Ad Hoc Committee was held to discuss the draft Housing Element and the 30-day public comment period and to provide an opportunity for the public to give verbal feedback/comments on the draft Housing Element;
 July 11, 2023: City Council to provide strategic direction related to public comment received;  August 1, 2023: City Council to review revised draft Housing Element before submittal to HCD;  Advance (10-day minimum) public notice of all scheduled Housing Ad Hoc and Council meetings published in the local newspaper, The Carmel Pine Cone;  City staff have notified all property owners of identified sites via U.S. mail and - where e-mail addresses were known - have e-mailed property owners to encourage potential redevelopment of private property; and
Attachment 1
Appendix E – List of Contacted Organizations E-10 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023  The City has implemented varied methods of involvement for community members, including:
the HOME Carmel-by-the-Sea website, the Carmel-by-the-Sea City website/Long-Range Planning page, “Housing” email Listserv, “City Council” email listserv, announcements published in the City Administrator’s “Friday Letter” and vlog, public notices in The Carmel Pine Cone, a staffed table at the local Farmer’s Market; a Community Housing Stakeholder Survey made available in both English and Spanish, and seven (5) community meetings specific to the Housing Element topic and three (3) regular City Council meetings with an agendized Housing Element topic completed prior to submission of the Draft Housing Element to HCD.

Attachment 1
ECONorthwest Feasibility Study

APPENDIX
F
Attachment 1
Attachment 1
ECONorthwest Study Background
On May 20, 2022, the City of Carmel-by-the-Sea entered into a professional services agreement with ECONorthwest to prepare a housing feasibility study. The study informs the analysis required as part of the 6th Cycle Housing Element update. The feasibility study evaluated current market conditions, the City’s development standards related to housing, and potential opportunities for housing development. The study was not meant to be exhaustive. Instead, it starts the conversation about development opportunities and constraints within the City of Carmel-by-the-Sea.

Attachment 1
Attachment 1
ECONorthwest | Portland | Seattle | Los Angeles | Eugene | Bend | Boise | econw.com 1 DATE: January 27, 2023
TO: Brandon Swanson, City of Carmel-by-the-Sea
FROM: Chris Blakney, ECONorthwest
SUBJECT: Housing Element Analysis for the City of Carmel-by-the-Sea Introduction
In the State of California, local jurisdictions maintain a General Plan that serves as a blueprint for its long-term vision. Among the required “elements” of a general plan is the Housing Element. The Housing Element is the only element that state law requires be updated on a periodic cycle. The California Department of Housing and Community Development (HCD) is responsible for overseeing Housing Element updates. Every eight years, HCD allocates a share of projected statewide housing need to regions across the state. This is called the Regional Housing Need Allocation (RHNA). The state is currently in the sixth of these cycles. The sixth cycle will cover the June 30, 2023 to December 15, 2031 planning period for the City of Carmelby-the-Sea [Carmel].

The City is a part of the Association of Monterey Bay Area Governments (AMBAG). AMBAG is responsible for developing a methodology for allocating its regional share of housing need to its individual jurisdictions. The Final Sixth Cycle (2023-2031) Regional Housing Needs Allocation plan, completed in October 2022, determined that Carmel’s share of regional housing need is 349 units; 187 of these units must be suitable to accommodate lower income households. It is important to note that RHNA targets reflect zoned capacity, not a construction quota.

Figure 1: Regional Housing Needs Allocation, Fifth and Sixth Cycle Source: California Department of Housing and Community Development1 Cycle Income Level Total
Very Low Low Moderate Above Mod.

RHNA5 (2015-2023) 11 5 6 13 31
RHNA6 (2023-2031) 113 74 44 118 349
Sixth Cycle Income and Rent Ranges (County of Monterey) Income Levels $0 -
$45,050
$45,050 -
$72,080
$72,080 -
$108,120 $108,120 +
Rent Level/mo $0 -
$1,126
$1,126 -
$1,802
$1,802 -
$2,703 $2,703 +
While the City satisfied its Fifth Cycle RHNA planning target and received a certification for the 2015-2023 planning period, the market did not produce all 31 planned units. This underscores a considerable hurdle for the City in the Sixth Cycle which represents a 1,000% increase in its housing target for the cycle. This capacity is particularly challenging because Carmel does not have a deep supply of vacant land and presently lacks water resources to accommodate significant growth. This is further complicated by a parcelization pattern that includes many 1 https://www.hcd.ca.gov/docs/grants-and-funding/inc2k22.pdf Attachment 1
ECONorthwest 2
small taxlots and market conditions that support high values for existing structures, making redevelopment improbable.

Executive Summary
As City officials begin to prepare for the Housing Element Update, they want to better understand some of the challenges to development and opportunities for adding housing capacity. This analysis summarizes our work exploring market conditions, observations in the City’s zoning code, and sites/locations that are most likely to have development potential.

While this report does not constitute a site alternatives analysis suitable for the City’s Housing Element Update, it may provide insights into the development challenges, opportunities, and candidate sites for meeting the City’s RHNA obligation in the Sixth Cycle.

Although renovation and replacement construction is common in Carmel, the City has had very limited net-new residential development during the Fifth Cycle (2015-2023) RHNA planning period2. This has been in part a function of barriers in the current zoning code, access to water rights, market conditions, and the existing development pattern in the City’s commercial core.

In this work, we have found that existing development standards, such as a two-story heigh limit, effectively prohibit achieving maximum allowed residential densities. Another challenge is a parcelization pattern of smaller lots with existing moderate scale commercial development with well-performing tenants. Despite these challenges, our analysis identified 17 sites in or adjacent to the commercial core that could be viable candidates for redevelopment or densification. To be sure, for development to occur on these sites—specifically development serving lower income households—the City will need to take action to remove barriers and identify resources to support financial feasibility. Actions recommended for consideration include financial subsidies, disposition of City-owned land, targeted rezoning of specific sites adjacent to the existing commercial zones, and amendments to development standards to remove development constraints.

Local Context
Carmel-by-the-Sea is a small coastal community located on the Monterey Peninsula.

Incorporated in 1916, the City is among the most affluent communities in California. The City has a strong residential character and a centralized business district. Carmel’s architecture in its business district has a distinct character, having been built out during the 1920s and 1930s. Over 45 properties in the commercial district are considered historical resources.

Carmel is also a popular coastal tourism and second home destination. There are over three dozen hotels in Carmel and roughly 40 percent of all housing units are for seasonal, recreational, or occasional use—a rate ten times the national average. 3 This dynamic has created
a housing market that severely lacks affordability. Forty-seven percent of all households that 2 According to Carmel’s most recent Annual Progress Report to HCD. 3 U.S. Census Bureau. American Community Survey 5-Year Estimates (2016-2020); Table B2004. (See https://data.census.gov/)
Attachment 1
ECONorthwest 3
rent (vs. own) their homes in Carmel are cost burdened, spending greater than 20 percent of their income on housing. Among these, a full 25 percent of renter households are severely cost burdened, spending 50 percent or more of their income on housing. 2,102 individuals work in Carmel, of whom only 2.6 percent live in Carmel.4
4 U.S. Census Bureau Longitudinal Employer-Household Dynamics Data (See https://lehd.ces.census.gov/) Attachment 1
ECONorthwest 4
Figure 2: Carmel-by-the-Sea Zoning Map on Original Plat Source: City of Carmel-by-the-Sea (see https://planningsites.org/CarmelPlanning/) 8TH AVE
7TH AVE

VISTA AVE

ALTA AVE
1ST AVE
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CARPENTER ST

GUADALUPE ST

SANTA RITA ST

SANTA FE ST

TORRES ST

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MISSION ST

SAN CARLOS ST

DOLORES ST

LINCOLN ST

MONTE VERDE ST

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VISCAINO

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LOPEZ AVE

PALOU AVE
2ND AVE

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LORCA LANE

PERRY NEWBERRY WAY STERLING WAY

ESCOLLE WAY

FOREST ROAD OAKNOLL WAY
7TH AVE

OCEAN AVE

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TORRES ST

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MISSON ST

SAN CARLOS ST

DOLORES ST

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TRAIL VIEW
ACACIA

CASANOVA ST

CAMINO REAL

CARMELO ST

SAN ANTONIO AVE

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SANTALUC AI AVE

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LASUEN DR

LADERA DRIVE

RIDGEWOOD ROAD

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RIO ROAD

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SCENIC ROAD

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8 6
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6 6
2 7
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3 4
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6 8
4 8
7 3
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5 7
8 6
6 4
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9 8
4 4
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6 8
6 4
5 6
4 4
1 3
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7 6
7 8
7 6
3 8
5 7
13 5
6 8
4 8
3 7
4 2
4 1 9
19 2
5 6
6 8
4 3
5 4
4 8
6 5
8 4
4 9
5 9
6 8
2 9
4 2
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6 6
18 6
8 7
7 2
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7 4
8 5
6 7
6 1
3 36
8 4
4 14
10 6
6 8
9 8
13 20
10 28
32 8
4 15 34
4 6
1 1
2 9
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11 2
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11 22
11 14
1 1
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18 24
11 15
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1 34
9 12
21 13
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1 12
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19 13
1 31
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8 31
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1 7
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28 15
13 3
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2 7
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3 9 1 7
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7 8
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43 1
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3 75
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33 11
12 12
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16 18
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38 12
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10 23
19 22
11 13
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30 15
12 20
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10 13
10 11
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14 12
18 20
20 16
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11 11
2 13
15 12
11 20
21 11
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11 19
29 10
11 11
19 17
20 14
34 11
13 17
11 14
13 11
21 20
19 11
11 11
10 13
20 28
10 23
12 20
10 16
35 11
11 31
12 31
17 23
11 16
11 22
11 11 11
11 11
18 11
23 17
10 10
10 22
17 12
17 19
11 11
19 12
22 18
15 25
11 11
18 11
11 19
12 22
32 10
11 13
11 14
13 31
41 19
20 24
17 35
13 11
15 11
20 10
11 11 11
11 11
17 19
27 14
20 10
11 18
11 12
13 11
10 19
11 16
20 16
36 17
19 14
11 20
22 14
19 10
11 32
20 17
20 11
19 15
13 11
23 11 11
14 10
12 13
11 11
33 21
10 18
17 13
15 22
13 11
11 19
11 27
17 13
26 27
19 20
13 27
20 20
11 12
13 13
20 19
21 19
29 14
13 13
11 10
19 16
13 14
11 15
17 19
10 17
20 12
15 13 13
11 23
15 15
20 11
19 15
17 12
19 11
10 21
13 18
25 19
15 20
16 14
10 11
14 19
13 17
17 19
15 19
11 14
10 11
10 11
13 15
22 21
14 19
15 14
18 11
16 11
13 15
15 11
10 26
19 14
12 13
27 20 13
11 24
17 24
24 14
14 11
14 18
20 11
10 28
18 13
20 11
19 20
18 14
10 17
15 28
18 15
18 17
23 19
22 11 20
20 13
20 16
11 18
11 13
20 19
14 17
18 17
26 13
13 11
19 23
19 12
13 11
20 17
17 10
12 20
15 16 16
10 18
20 20
19 18
16 14
18 13
37 19
11 12
17 19
16 22
11 11
20 13
14 16
10 19
14 29
18 13
25 20
14 18
19 14
11 18
13 17
16 35
19 10
19 14
15 32
20 15
19 16
18 19
23 14
10 10
14 25
10 11
7 10
13 12
12 13
13 10
20 17
13 14
29 20
20 19
18 28
13 16
17 20
10 10 12
18 10
17 10
15 21
36 12
18 19
19 23
15 24
12 10
10 21
17 21
17 13
18 18
17 17
11 28
10 19
14 10
16 12
11 14
21 28
11 20
18 12
14 24
20 14
40 17
21 13
21 26
32 22
19 13
11 33
13 14
18 20
12 14
13 10
11 28
19 14 8
20 10
23 18
18 16
11 19
10 11
25 10
23 15
14 18
14 15
15 24
27 17
16 20
19 12
16 20
10 14
18 16
15 18
11 12
13 13
13 14
13 13
12 14
17 16
13 17
36 13
15 20
14 17
11 18
13 14
13 19
14 14
25 22
11 22
20 13
20 33
14 13
13 12
15 13
14 15
33 12
19 10
27 19
25 17
14 16
25 19
14 10
22 16
10 10
14 16
12 10
16 17
13 13
12 11
13 16
20 17
16 11
12 10
17 14
20 31
11 27
26 20
27 18
12 13
10 28
17 23
20 17
15 26
10 17
20 10
13 14
19 22 18
10 16
28 12 30
28 34
12 15
34 16
12 18
20 35
16 27
22 19
13 10
17 13
26 16
10 14
12 17
12 14
11 13
10 17
27 33
16 13
11 19
10 17
15 15
20 18
21 14
15 14
19 13
13 13
20 20
15 20
17 17
13 17
15 14
14 19
16 13
25 18
25 19
22 19
23 13
10 15
18 21
18 12
13 17
10 13
13 12
17 19
14 17
19 10
10 14
14 10
11 16
14 11
12 30
15 13
14 14
18 12
13 25
18 15
14 22
13 27
19 10
12 15
13 14
35 18
24 13 11
14 13
19 11
13 17
17 17
20 16
19 13
14 14
19 20
15 12
16 15
15 28
12 28
38 20
26 14
20 37
16 20 14
18 18
28 19
13 18
12 18
14 30
25 13
13 14
15 14
24 15
21 14
10 10 12
20 11
15 18
21 12
16 17
18 17
10 20
19 15
20 14
20 25
10 10
10 10
15 18
12 15
18 10
20 16
18 11
12 19
21 16
14 14
17 17
16 19
14 13
16 12
17 16
29 10
17 15
17 17
17 12
19 10
15 15
17 25
24 39
13 18
20 13
22 14
29 19
15 15
21 16
18 20
15 20
13 13
15 10
29 13
18 16
16 17
14 16
23 13
34 17
17 15
19 10
19 16
30 15
18 15
16 12
10 10
20 18
13 10
16 19
26 17
18 17
20 15
16 34
23 16
10 12
20 10
11 12
12 16
15 12
11 15
18 19
16 16
16 18
19 19 20 14
16 23
30 17
16 13
15 32
14 13
24 14
17 21
13 10
10 10
20 15
14 18
20 12
15 15
16 15
12 17
14 22
20 10
20 10
20 15
15 16
13 18
12 12
12 22
17 14
12 10
13 14
16 15
16 18
10 24
16 18
23 23
20 16
15 23
16 17
15 14
19 16
12 23
14 33
13 16
11 12
18 12
12 14
12 14
17 18
14 16
18 18
17 16
24 14
17 19
12 14
13 17
13 12
21 30
15 13
15 10
10 10
13 12
10 12
13 29
22 18
17 17
16 19 15
16 16
15 15
10 15
24 14
13 17
12 19
18 22
14 15
15 19
17 12
16 17
18 15
14 20
15 17
17 18
15 28
17 15
17 12
16 13
14 21
13 17
32 20
13 14
18 10
16 18
14 16
12 18
22 10
25 10
31 10
16 15
15 12
12 23
30 15 18
19 10
10 18
15 20
13 31
20 12
10 12
18 24
12 10
18 17
18 16
14 18
15 18
14 18
19 26
12 13
16 18
14 18
17 15
16 14
16 12
20 14
13 23
18 15
12 19
10 12
15 12
10 18
18 18
13 15
19 17
30 14
13 16
27 25
29 12
16 13
10 17
14 24
12 19
20 15
14 25
24 23
15 15
10 12
18 15
12 16
14 18
18 20
27 19
17 16
34 17
19 14
15 32
20 23
14 16
25 14
10 18 12
19 13
14 20 12
20 12
18 16
17 14
29 15
18 14
12 20
14 18
19 26
18 23
15 12
18 15
16 15
20 25
17 16
10 10
10 12
20 12
10 19
15 16
19 19
19 19
15 23
15 18
15 17
25 26
13 18
16 12
16 17
10 10 16
27 12
20 16
17 15
12 10
17 20
16 16
25 20
12 12
13 15
20 14
15 17
17 10
15 16
10 12
20 19
16 16
18 18
12 17
13 12
21 12
15 31
18 25
39 18
25 10
14 35
16 24
12 17
10 10
14 16
12 19
18 17
22 18
10 16
18 17
16 12
18 19
26 16
5 17
12 24
25 32
15 23
13 26
20 18
20 12
6 20
18 20
16 17
13 19
24 20
19 15
33 14 15
26 20
14 18
14 19
16 15
29 15
38 16
17 12
17 13
10 17
16 19
30 24
15 23
20 18
10 19
12 16
13 18
31 13
14 20
20 12
16 13
16 12
17 15
16 16
15 12
10 11
12 17
10 18
12 15
12 12
32 16
16 17
14 10
12 27
15 17
26 10
17 12
20 19
13 10
16 17
16 21
15 15
18 16 16
19 26
29 17
20 15
29 12
23 12
34 14
19 11
19 12
18 14
31 19
21 13
15 2
18 12
12 16
10 18
18 17
19 33
16 19
20 18
15 15
25 30
14 20
20 12
11 16
21 22
16 16
16 18
18 22
10 26
19 11
22 18
26 20
19 19
27 12
20 12
10 20
25 20
10 10
21 32
10 16
11 16
21 20
25 18
17 12
11 17
13 18
20 10
12 10
12 19
20 13
10 12
14 12
10 10
10 19
10 2
42 10
10 10
39 10
21 10
2 15
18 14
14 13 5 7
3 5
2 2
7 1
12 5
4 1
2 7
3 1
2 7
3 3
4 8
8 6
6 4
4 5
17 3
4 8
6 2
7 8
6 9
16 7
5 5
2 2
2 8
9 5
9 5
2 4
2 20
5 6
8 2
4 4
6 3
3 3
9 4
7 5
2 5
4 5
4 3
7 4
4 8
6 3
8 7
6 2
7 7
9 9
9 8
8 8
8 5
3 3
7 5
6 3
4 9
6 6
2 7
8 3
18 12 17
8 10
26 25
6 19 26
10 15
17 11
15 14 11
3 17
11 10
21 19
26 11
18 17
26 24
25 14
15 15 13 26
19 10 18 16
12 11
24 26
22 11
24 22
11 17
21 21 11 24 25 11
26 11 22
22 10
19 19 13
21 11
21 11
23 23
23 18 22
17 21 23
22 24 13 24 25
20 16
24 23
16 22 26
22 18
13 21 16
14 11
20 23 17
12 13
22 20
25 25 15
10 24
24 16
16 23
13 13 15
21 24
22 25
21 13
26 15 26
22 10
19 11
26 12 10
25 26
17 15
10 20
22 12
24 14
24 15
21 19
18 26
10 25
14 20 24
26 17 19/21 13
22 23
21 17
12 4
11 17
19 5
16 1 inch equals 300 feet
Revised: August 21, 2008
Prepared June 25, 2008 for the City of Carmel by TriAxial Data Systems • Watsonville, CA 95076 • Phone (831) 763-3697 This is a graphic representation only of data provided by the City of Carmel and the County of Monterey. The author assumes no responsibility nor liability for errors or omissions. 0 300 600 900 1,200Feet
The City of Carmel-by-the-Sea makes no representations or warranties regarding the accuracy or completeness of this map. This map is intended to reflect the boundaries established by the Carmel Municipal Code, the California Coastal Commission, and California law. These sources take precedence over this map.

Carmel-by-the-Sea
City Zoning Map
Current Zoning Designations on Original Lots
Carmel Bay
Legend
Overlay Districts and Community Plans
Base Zoning Districts
City Limits
R-1 Single-Family Residential
R-1-C-6 Single-Family (6,000 sf min.)
R-1-C-10 Single-Family (10,000 sf min.)
R-1-C-20 Single-Family (20,000 sf min.)
R-4 Multi-Family Residential
RC Residential and Limited Commercial
CC Central Commercial
SC Service Commercial
P-1 Natural Parklands and Preserves
P-2 Improved Parklands
A-1 Theatrical
A-2 Community and Cultural
A-3 Senior Citizen Facility
AS Archaeological Significance Overlay
P Park Overlay
CP Community Plan Area
ESHA* Environmentally Sensitive Habitat Area - Overlay
*Note: The ESHA Overlay applies to all land within an identified ESHA and to all land within 30 feet of an ESHA. Please see General Plan for identified ESHA's in Mission Trail Nature Preserve, Pescadero Canyon, and at locations along Carmel Beach.

The Appeal Jurisdiction is a representation of the certified Appeal Jurisdiction layer from the coastal zone. Please see Certified Post LCP Map or Current Zoning for parcels in contact with this boundary.

Parcel Boundaries
Permanent Street Closures
AB* Appeal Juristiction / Beach Overlay
Revised: February 18, 2009
Prepared June 25, 2008 for the City of Carmel by TriAxial Data Systems • Watsonville, CA 95076 • Phone (831) 763-3697 This is a graphic representation only of data provided by the City of Carmel and the County of Monterey. The author assumes no responsibility nor liability for errors or omissions.

ECONorthwest 5
Site Visit
In June 2022, City staff hosted a walking tour of the village. The purpose of this exercise was to observe the characteristics of the built environment and evaluate the potential of City-owned sites to accommodate development of housing. Key themes from this visit include:

Height. The City’s current code has a two-story height limit. However, there are many older structures throughout the commercial core that are taller than two stories and are adjacent to single- or two-story buildings.

Interior Courtyards. One of the unique characteristics of Carmel’s built environment is the network of interior courtyards and intra-block passageways that connect businesses. Residents and visitors are encouraged to explore these interior areas behind business frontages and facades.

City-Owned Sites. The City owns several sites across the village. In addition to larger and potentially underutilized sites in the downtown core, it owns a series of sites that are unimproved street rights-of-way.

Sunset Center North and South Lots. If on-site parking could be accommodated, the north lot of the Sunset Center could be a redevelopment candidate. The South Lot may also be explored for development potential.

Topography. Some areas within and on the periphery of the commercial district have steep slopes. These areas could be opportunities for development with tuck-under parking.

Attachment 1
ECONorthwest 6
Low density retail in commercial district Example of interior courtyard Ulrika Plaza at 5th and Dolores Example of City-owned ROW site Sunset Center North Lot Example of underutilized parking Attachment 1
ECONorthwest 7
Market Overview
The ability of the market to deliver housing production in the future is largely a function of existing market conditions. An observation of socioeconomic conditions also informs housing need in the community.

For-Sale Market
Following several years of relative stability, the price of homeownership in Carmel has accelerated rapidly in recent years. Since 2019, the median home price in Carmel has jumped from $1.6 million to $2.95 million, an increase of 84 percent.5 Price increases are being driven by demand-side forces.

Figure 3: Median Home Price
Source: Property Radar6
Over this same period, there has been an acceleration of both sales volume and the share of homes that are purchased all cash or with mostly cash. For example, in 2020 and 2021 sales volumes were 50 percent higher than the previous five-year average. Moreover, the percentage of home sales with 75 percent to 100 percent cash down increased from 53 percent to 61 percent through the first half of 2022. This is indicative of a market that is attracting outside capital from other high-value markets. In the context of observed migration patterns in Northern California because of the COVID-19 pandemic, we suspect that much of the movement in the market is being driven by migration of high-net-worth households out of the Bay Area. This is observed 5 Property Radar. (See https://www.propertyradar.com/) Data reported through most recent period available 6 Property Radar. (See https://www.propertyradar.com/) Data reported through most recent period available $1,562,500
$2,950,000
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
2014 2015 2016 2017 2018 2019 2020 2021 2022
Median Home Sales Price
Attachment 1
ECONorthwest 8
in migration data from the U.S. Postal Service that shows that since March 2020 Carmel has seen a migration-driven increase of 552 households.
7 Figure 4: Sales Volume and Percent of Purchase Price in Cash Source: Property Radar8
Second-Home Market
Tourism and the impacts of second homes and long-term rentals are also having an observed impact on affordability in Carmel.9 Data from the U.S. Census Bureau shows that nearly 40 percent of all housing units are used for seasonal, recreational, or occasional use. This rate is ten times the national average.

Figure 5: Share of Housing Units that are Second Homes
Source: U.S. Census American Community Survey (2016-2020 estimates); Table B2500410 Nation Carmel
Total housing units 138,432,751 3,731
For seasonal, recreational, or occasional use 5,303,302 1,479 Share of housing units that are second homes 3.8% 39.6% 7 USPS Change-of-Address Migration Data
https://www.arcgis.com/apps/dashboards/951428e32723456c879d0966af4baa8a 8 Property Radar. (See https://www.propertyradar.com/)
9 Short-term rentals are not permissible as per CMC 17.08.060 and CMC 17.14.040. (See https://www.codepublishing.com/CA/CarmelbytheSea/html/Carmel17/Carmel1708.html) 10 U.S. Census American Community Survey (2016-2020 estimates); Table B25004. (See https://data.census.gov/) 0 20
40 60
80 100
120
140
2014 2015 2016 2017 2018 2019 2020 2021 2022
Home Sales Volume
75% to 100%
Down
50% to 74.9%
Down
25% to 49.9%
Down
< 25% Down
Attachment 1
ECONorthwest 9
Renter Market
Reliable real-time market data on the local rental market is challenging to obtain because the majority of the rental market is organized through individual transactions, small property management firms, and in some cases informal agreements. Figure 6 below demonstrates that tenure split (owner vs. renter-occupied) in Carmel is roughly equal. However, a full 78 percent of the rental market is being met by single-family housing units (rather than apartment buildings), typically rented out by individuals as opposed to large property management firms.

Figure 6: Tenure (Rent vs. Own) by Units in Structure in Structure Source: U.S. Census American Community Survey (ACS) (2016-2020 estimates)11 Note: Tenure refers to whether a unit is occupied by someone who owns the unit (owner-occupied) or rents the unit (renteroccupied).

Unit Type Owner-Occupied Renter-Occupied Total
Single-family Detached 993 694 1,687
Single-family Attached 0 19 19
Duplex 0 0 0
Triplex/Quadplex 0 22 22
Small Multifamily (5-19 units) 0 162 162
Large Multifamily (20+ units) 0 0 0
Mobile Homes12 0 19 19
Total 993 916 1,909
Tenure Split 52.0% 48.0%
In Figure 7 below, we report annual contract rent reported for the market by the U.S. Census Bureau’s American Community Survey. We consider “average” rent levels reported in the survey to be considerably lower than where rental properties transact at in the market based on observations of current rent levels. However, this data is showing the expected trend of accelerated rent growth over the last two observation years. 11 U.S. Census American Community Survey (2016-2020 estimates). (See https://data.census.gov/) 12 The U.S. Census uses survey data across a five-year period to produce estimates across a broad range of demographic and socioeconomic variables in the American Community Survey (ACS). Because the ACS uses survey data to develop estimates, results can be unintuitive and have larger margins of error in smaller geographies. See https://www.census.gov/programs-surveys/acs/methodology.html for a review of the Census Bureau’s methodology for the ACS.

Attachment 1
ECONorthwest 10
Figure 7: Annual Contract Rent
Source: U.S. Census American Community Survey (5-year estimates from 2015-2020)13 Cost Burden
State and federal standards specify that households spending more than 30% of gross annual income on housing experience a housing cost burden. Housing cost burdens occur when housing costs increase faster than household income. When a household spends more than 30% of its income on housing costs, it has less disposable income for other necessities, including health care, food, education, and clothing. In the event of unexpected circumstances such as the loss of employment or serious health problems, lower-income households with a burdensome housing cost are more likely to become homeless or be forced to double-up with other households. Homeowners with a housing cost burden have the option of selling their homes and becoming renters. Renters, on the other hand, are vulnerable and subject to constant changes in the housing market.

In Carmel, 47 percent of all households that rent their homes are cost burdened, spending greater than 30 percent of their income on housing. Among these, a full 25 percent of renter households are severely cost burdened, spending 50 percent or more of their income on housing.

Figure 8: Percent of Income Spent on Rent, City of Carmel-by-the-Sea (2020) Source: American Community Survey 2016-2020 Five-Year Estimate (Table B25070)14 Income on Rent Households Share
13 U.S. Census American Community Survey (5-year estimates from 2015-2020). (See https://data.census.gov/) 14 American Community Survey 2016-2020 Five-Year Estimate (Table B25070). (See https://data.census.gov/) 0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
$0
$500
$1,000
$1,500
$2,000
$2,500
2015 2016 2017 2018 2019 2020
Annual Rent Growth
Contract Rent
Contract Rent Annual Growth
Attachment 1
ECONorthwest 11
Less than 10.0 percent 153 16.7%

10.0 to 14.9 percent 49 5.3%

15.0 to 19.9 percent 182 19.9%

20.0 to 24.9 percent 63 6.9%

25.0 to 29.9 percent 39 4.3%

30.0 to 34.9 percent 61 6.7%

35.0 to 39.9 percent 70 7.6%

40.0 to 49.9 percent 70 7.6%

50.0 percent or more 229 25.0%
Total: 916 100.0%
Commute Patterns
It is hypothesized that Carmel’s concentration of jobs in the leisure and hospitality sector creates challenges for local workers who do not have sufficient incomes to afford housing in the community. This imbalance of jobs to housing impacts quality of life including how far workers must travel for work, increasing transportation costs, and reducing individual productivity. In general, a good balance of jobs to housing would occur where the jobs available in a community match the labor force skills, and where housing is available at prices, sizes, and locations suited to workers who wish to live in the area.

In Carmel, roughly half of all workers live within 10 miles of the city. Primary areas where workers live include Seaside, Monterey, Salinas, and Pacific Grove. A full 26 percent of workers commute from greater than 25 miles away. Only 2.6 percent of workers live and work in Carmel.15
15 U.S. Census Bureau Longitudinal Employer-Household Dynamics Data (See https://lehd.ces.census.gov/) Attachment 1
ECONorthwest 12
Figure 9: Commute Patterns, Where Employees in Carmel Live (2019) Source: U.S. Census Bureau Longitudinal Employer-Household Dynamics Data. (See https://data.census.gov/) ECONorthwest 13
Code Review
As part of our scope, we conducted a code review to identify potential issues and barriers that could limit housing production in the Multifamily Residential (R-4) district and the commercial zones; Residential and Limited Commercial (RC) Central Commercial (CC), and Service Commercial (SC).

General Notes
§ The pattern of existing development is small lot (3,800-6,000), detached single-family.

Most new development will be infill.
§ Multifamily is defined as any development with two of more units on the same lot.

Building Height in All Zones
Building height throughout the city is limited to two stories, with maximum heights established for each zone. CMC 17.14.150.B-C establishes maximum building heights for the R-416, RC, SC, and CC zones. Structures in R-4 and RC zones are limited to 26 feet and structures in the CC and SC zones are limited to 30 feet. Building sites which face, abut or adjoin any property in the R-1 district are limited to a height of 24 feet. Building height may also be determined by compatibility with nearby structures facing the same street or intersection and within the same pedestrian field of view (i.e., generally, within 100 feet to either side of, or across the street from the proposed structure).

Given the existing small lot sizes observed throughout the city and off-street parking requirements (discussed in more detail below for the R-4 zone), a two-story maximum height will likely prohibit many multifamily projects from achieving base density allowances in the R4 zone. Building height limitations, maximum building coverage, and floor area ratio (F.A.R) limitations (discussed in more detail below) will even more severely limit multifamily projects from achieving base density allowances in commercial zones, even if parking requirements are lower than in residential zones.

R-4 Development Standards
Density
CMC 17.12.020.B establishes a maximum base density of 33 du/ac, and CMC 17.12.020.C offers a density bonus of 44 du/ac in exchange for affordable units. While these density thresholds are relatively high, they are difficult to achieve given the City’s inventory of small lots between roughly 3,800-6000 square feet, with lot widths around 50-60 feet and two-story building height maximum. Off-street parking requirements will further limit the ability to achieve base density.

Given the site constraints and a need for many developments to achieve base density for financial reasons, it is unlikely developers will be able to take advantage of the density bonus 16 Underground parking does not count as a story in the R-4 zone.

Attachment 1
ECONorthwest 14
since their ability to achieve the base density is already constrained. If the density bonus was offered in another story, rather than du/ac, it could help reduce barriers and allow more housing production on smaller sites.

Parking
CMC 17.38.020 requires 1.5 parking spaces per residential dwelling unit and offers reduced parking standards for affordable units (0.5 spaces per unit) in the R-4 zone. CMC 17.12.020.F.1 prohibits parking requirements in the R-4 zone to be met on-street or through a fee-in-lieu.

Providing parking onsite while achieving the allowed density will be a challenge for many development sites given that many of the existing lots in the city are only 50-60 feet wide. While underground parking is allowed and does not count against the maximum building height, underground parking is far more expensive to construct. Reducing parking standards for certain areas (i.e. areas with access to transit or walkable to commercial districts) or for unit types (i.e. studios and one-bedrooms) may help developments achieve base densities.

Unit Distribution
CMC 17.12.020 requires that on sites larger than 4,000 sf, 50 percent of all units must be provided as rental apartments.

CMC 17.08.050.F. requires at least 25 percent of all units in a multifamily project containing more than two units be between 400-650 square feet. While this provision on its own is not necessarily a barrier to housing development, parking standards for these small units are the same as a single-family home. Reducing the parking standard for smaller multifamily units will help developments to achieve density more easily.

Commercial Zone Development Standards
Building Coverage
CMC 17.14.130.A. limits building coverage to 80 percent in the CC and SC zones. 17 The existing
pattern of development in these two zones appears to exceed 80 percent building coverage on many parcels. Additionally, the code prohibits the removal of existing courtyard or intra-block walkways, which will further limit the amount of allowable building coverage on some sites.

Since the land costs in Carmel-by-the-Sea are exceptionally high, these maximum building coverage requirements will likely act as a development barrier. This becomes even more of a challenge in the context of redevelopment where the existing structure exceeds 80 percent building coverage. New developments may be required to build a smaller building than previously existed.
17 Exceptions are granted up to 95 percent.

Attachment 1
ECONorthwest 15
Floor Area Ratio
CMC 17.14.140.A-B establish F.A.R limits for the commercial zones. One-story buildings in the CC and SC zones are allowed to achieve an F.A.R equal to 95 percent of the site area. However, this contradicts the allowed building coverage discussed above (80 percent), excluding the exceptions. Two-story buildings can obtain an F.A.R equal to 135 percent of the site area, which further limits the allowed square footage outside of the building coverage maximums, as either the first or second story would need to be smaller than the other to meet this F.A.R. For example:
§ A 5,000 square foot lot is allowed a maximum of 4,000 square feet in building coverage, which could translate to about an 8,000 square foot building if the two stories were of equal size. However, two-story buildings are limited to 135 percent of the total site area. § 135 percent of the total site area is 6,750 square feet. The F.A.R requirements reduces the potential square footage by approximately 1,250. This lost square footage could translate into roughly two additional apartment units.
§ However, if using a density bonus the limit would be 150% of the total site area, reducing the amount of lost square footage for project utilizing a density bonus.

The restriction is even more severe in the RC zone adjacent to the Single Family Residential (R1) zone, where F.A.R requirements limit two-story buildings to 80 percent of the total site area.

For example:
§ A 5,000 square foot lot could result in a maximum building coverage of 3,500 (70 percent), so two stories of the same size could render a 7,000 square foot building. § With F.A.R. limited to 80 percent of the total site area for two-story structures, this limits the building to 4,000 square feet. This represents a loss of about 3,000 square feet.
§ Like the example above, the loss of square footage is reduced if a project can capitalize on a bonus.

F.A.R. bonuses are available for projects that include affordable housing, courtyards, and/or intra-block walkways.

Review Processes and Additional Studies
The City should be mindful of how additional procedures and studies can add time and cost to projects that are facing unprecedented cost escalations in the current economic environment.

For example, CMC 17.08.050.F.1 requires all multifamily projects to prepare an acoustical analysis and the implementation of acoustical design treatments to meet noise standards contained in Title 25 of the California Government Code. While this is not a barrier to development on its own, it does require a small amount of time and cost to the development process. Cumulatively, review processes can add up to be a significant barrier to development and the City should endeavor to streamline review and approvals wherever possible.

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ECONorthwest 16
The City also requires conditional use permits for certain residential developments in all zones (i.e. developments over 22 du/ac). The City’s standard practice is to process approvals concurrently where possible; but removing this additional process could reduce extra steps and cost in the development process for both City staff and applicants, while eliminating the additional cost of preparing a conditional use application.

High-Level Sites Analysis
In its forthcoming update to the Housing Element of the General Plan, the City will be required to identify physical sites that have the zoned capacity to accommodate its share of regional housing need (349 units). The State agency (Housing and Community Development “HCD”) responsible for oversight and certification of the Housing Element has specific requirements for this analysis. It is beyond the scope of this project to conduct a full HCD compliant alternative sites analysis. And the sites included in this review is unlikely to be an exhaustive list of candidates. It likely also includes candidates that future study my find less viable. However, as a precursor to the Housing Element Update, we provide a high-level overview of potential candidate sites. In our methodology we combine anecdotal context through conversations with local developers and property owners alongside a range of variables that are theoretically indicative of redevelopment potential. These include:
§ Historic resources § Total value per-square-foot
§ Sites with adjacent ownerships § Sites with high value uses § Sites identified in RHNA5 § Discussions with developers § Land-to-improvement ratio § Site visit and spot checking Defining a Study Area
Housing redevelopment generally requires scale to be financially feasible because the value of the new use must be measurably higher than the existing use. Scale is a function of site size and allowed density. Under the existing zoning code, only the R-4 and commercial zones allow multifamily development. For this reason, the focus of this work is on the commercial core, defined in Figure 11.

Conservation District
The purpose of the Conservation District (codified in 2004) is to “recognize that Ocean Avenue and the commercial properties that surround this corridor contain some of the most memorable and important commercial buildings in Carmel”.18 The district includes special procedures that influence the development and design context for properties in the district. While we did not consider all properties in the district to be infeasible, the additional development and design standards add an additional layer of complexity to redevelopment potential. 18 Carmel Municipal Code § 17.20.260. (See
https://www.codepublishing.com/CA/CarmelbytheSea/html/Carmel17/Carmel1720.html) Attachment 1
ECONorthwest 17
Figure 10: Zoning Map; Carmel-by-the-Sea
Source: City of Carmel-by-the-Sea
Carmel_Zoning
A-1
A-2
A-3
CC
P-1
P-2
R-1
R-1-C-10
R-1-C-20
R-1-C-6
R-4
RC
SC
City Limits
Conservation District
Legend
ECONorthwest 18
Figure 11: Commercial Core Study Area Definition
Source: ECONorthwest
Downtown Study Area
Conservation District
Legend
ECONorthwest 19
Historic Resource Properties
The project study area includes 45 properties that are identified as historic. All but seven of these are in the Conservation District (see Figure 12). While we did not omit historic resource sites from being considered redevelopment candidates outright, redevelopment or renovation of historic resource sites will have an additional layer of complexity, as projects will need to meet the Secretary of the Interior’s Standards for Rehabilitation.19 Properties Omitted Due to Existing Use
In this step we removed properties from consideration that have clear uses that would be a barrier to redevelopment, regardless of the redevelopment economics of the physical sites (see Figure 13). This included a removal of civic and institutional uses such as City Hall, libraries, parks, and open space. It also removed all attached ownership sites (such as condominiums) because assembling ownerships of these properties is nearly impossible. Lastly, we removed sites with businesses where the likely income generating potential of the use was high relative to the real estate asset (such as hotel properties). Due to Carmel’s tourism draw, even a 2-star hotel commands room rates well above average for the class. Conversations with City staff and local developers further suggested that it would be highly unlikely that any hotel property in the commercial core would fully redevelop or reposition to permanent housing. However, there is opportunity to add workforce housing capacity through programs that convert a single hotel room to an on-site managers uint.

Fifth Cycle (RHNA5) Housing Element Sites
Carmel’s Fifth Cycle Housing Element was adopted in 2015. This document includes an inventory of sites that were identified at the time as the most likely to accommodate future housing need (see Figure 14). The analytical process to identify these sites is established and findings certified by the State Department of Housing and Community Development (HCD).

Adjacent Ownerships
Sites that can obtain scale through size and density generally have a higher likelihood of redevelopment. Larger sites offer greater flexibility and fewer barriers. Often, two or more sites adjacent to each other that are both underutilized can be combined to make more feasible development site. However, assemblage of multiple ownerships can be a barrier. In this step we used ownership data in Assessor’s records to identify properties that are adjacent to each other but have the same owner (see Figure 15). If they meet other redevelopment criteria, these sites are more likely to redevelop.
19 Secretary of the Interior’s Standards for Rehabilitation. (See https://www.nps.gov/subjects/taxincentives/secretarysstandards-rehabilitation.htm) Attachment 1
ECONorthwest 20
Figure 12: Historic Resource Properties
Source: City of Carmel-by-the-Sea.

CarmelHistoricProperties
Downtown Study Area
Conservation District
Legend
ECONorthwest 21
Figure 13: Omitted Properties do to Existing Use
Source: ECONorthwest
Downtown Study Area
Conservation District
Not Viable
Legend
Hotel
Hotel
Hotel
Hotel
Condo
Condo
Condo
Condo
Condo
Condo
Hotel Hotel Hotel
Hotel
Hotel
Hotel
Hotel
Hotel
Library
Library Park
Hotel
Hotel
Condo
Condo
City Hall
CityHall
Hotel
Park
Hotel
Hotel
Hotel
Hotel
Hotel
ECONorthwest 22
Figure 14: RHNA5 Sites in the Commercial Core
Source: Carmel-by-the-Sea Fifth Cycle Housing Element, Digitized by ECONorthwest Downtown Study Area
Conservation District
Not Viable
RHNA5 Inventory
Legend
ECONorthwest 23
Figure 15: Sites with Adjacent Ownerships
Source: ECONorthwest
Downtown Study Area
Conservation District
Not Viable
Adjacent Ownerships
Legend
ECONorthwest 24
Land-to-Improvement Ratio
Land-to-Improvement ratio is a metric that compares the value of an improvement on a property to the value of the land using data from the Monterey County Assessor’s Office.

Theoretically, the more valuable land is compared to improvements on a site, the more likely the site is to redevelop (see Figure 16).

Data Limitations
The land-to-improvement metric and the value per-square-foot metric (below) use assessed value as reported by the Assessor. Assessor’s data can deviate broadly from real market value in California due to Proposition 13 which limits the annual increase in assessed value to 2 percent until a property transacts. While the ratio of improvement and land value should be more stable, properties that have not transacted for a long time could provide misleading results. For this reason, we consider these metrics alongside all other variables and in conjunction with site/spot checks.

Total Value Per-Square-Foot
In development economics the term “residual land value” is defined as the maximum value that a developer can pay for a site for a given development program. It is influenced by a range of factors including construction costs, development form, market conditions, and the developer’s threshold for rate of return, among other factors. It was beyond the scope of this work to do feasibility testing that would calculate actual residual land values. However, we know that the more expensive it is to acquire sites, the less likely development is to be feasible. Therefore, identifying sites in the study area with the lowest combined value (land plus improvements) relative to the size of the site can be an indicator of redevelopment potential (see Figure 17).

Candidate Site List
We combined the analysis above with an in-person site visit, visual assessment using aerial and streetscape photography, and conversations with local representative to develop an inventory of candidate sites that could have redevelopment potential. In addition to properties within the study area, we also evaluated sites adjacent to the commercial core that could be candidates for future rezoning to allow more housing density. Each site is briefly discussed below Figure 18.20 20 Sites are not listed in any particular order of prioritization Attachment 1
ECONorthwest 25
Figure 16: Land-to-Improvement Ratio
Source: ECONorthwest using Monterey County Assessor’s Data Downtown Study Area
Conservation District
Not Viable
Land to Improvement Ratio
< 1.0

1.0 - 1.5

1.5 - 2.0
> 2.0
No Improvement Value
No Data
Legend
ECONorthwest 26
Figure 17: Total Value Per-Square-Foot
Source: ECONorthwest using Monterey County Assessor’s Data Downtown Study Area
Conservation District
Not Viable
Value PSF
No Data
< $100
$100 - $175
$175 - $250
> $250
Legend
ECONorthwest 27
Figure 18: Candidate Site List
Source: ECONorthwest
Downtown Study Area
Conservation District
Legend
ECONorthwest 28
Figure 19: Data Table of Candidate Sites
Source: City of Carmel-by-the Sea Planning Department
Site
ID APN Zoning Lot Size Acres Max units @ 22 DUA21
Max Units @
44 DUA22
Max Units @
88 DUA23
#1 10143001000 A-2 90,084 1.02 22 45 90
#2
10138003000 SC 7,913

0.37 8 17 33
10138021000 SC 7,949
#3
10104001000 R-4 32,136

1.28 28 57 113
10104004000 R-4 21,576
#4 10145008000 RC 7,878 0.18 3 8 16
#5 10212010000 R-1 7,637 0.18 3 8 16
#6
10095013000 RC 15,313

0.53 11 24 47
10095012000 RC 8,027
#7
10098005000 SC 4,871
10098004000 SC 4,676 0.33 7 15 30
10098006000 SC 4,901
#8
10212027000 R-1 4,014
10212004000 R-1 4,004 0.28 6 13 25
10212026000 R-1 3,994
#10
10144015000 R-1 4,155

0.18 3 8 16
10144016000 R-1 3,738
#11 10133004000
(Example) CC 6,398 0.14 3 7 13
#12
10141006000 CC 12,520

0.38 8 17 34
10141011000 CC 4,377
#13
10145012000 SC 3,632
10145024000 SC 4,030 0.30 6 14 27
10145023000 SC 4,118
#14 10142001000 SC 8,009 0.18 3 8 16
#15
10149012000 A-3 7,435

0.62 13 28 55
10149010000 A-3 7,964
10149011000 A-3 7,985
10149001000 A-3 3,615
#16
10084030000 R-1 26,874

1.10 24 49 97
10084023000 R-1 5,822
10084024000 R-1 6,016
10084022000 R-1 4,496
10084003000 R-1 3,856
#17 10097007000 8,534 .020 4 9 18
TOTAL: 7.27 acres 152 units 327 units 646 units
21 Permitted by-right. No affordable requirements
22 20% of units must be for low-income households OR 10% must be for very low-income households OR 50% must be for seniors. All units must be deed restricted for a minimum of 30 years. 23 All units must be deed restricted affordable for a minimum of 30 years.

Attachment 1
ECONorthwest 29
Site 1: Sunset Center Lots Site
The north lot at Sunset Center is a large (1.02
acre) parking lot with no improvements other
than paving. It is a City-owned site. The City has
expressed interest in redeveloping the site for
housing so long as parking needs for Sunset
Center could be accommodated in the
development program. A zone change from
Theatrical District (A-2) to Multifamily
Residential (R-4) would be required to facilitate
development of the site. The south lot could also
be viable, but larger scale development may not
be as compatible with existing residential
development scale this far removed from the
commercial core.

Site 2: Ulrika Plaza Site
The 0.37-acre Ulrika Plaza site previously entitled
as a mixed-use building. The initial developer
lost the project for financial reasons, and it was
acquired by another developer. This developer
has been working to get a development program
for 12 market-rate apartment units approved on
the site for several years. The site is a case study
of a development not building to maximum
density.

Site 3: City Public Works (Vista Lobos) Site
This is a City-owned site totaling 1.28 acres at the
north end of the study area. The site is a large
parking lot with low value improvement used for
public parking. The City has expressed interest in
using the site for housing if feasible. Potential
height restrictions due to a protected viewshed to
Point Lobos (see CMC 17.12.050) could limit
achievable density and feasibility.

Attachment 1
ECONorthwest 30
Site 4: Carmel Realty Office Site
This site is a 0.18-acre corner-lot parcel that is
currently owned and used for office space by
Carmel Realty. It has low lot coverage and scores
well with a land-to-improvement ratio. It is a
single-story structure that is surrounded on all
sides by structures that are at least two stories
tall. The site was previously used in the RHNA5
inventory.

Site 5: Pine Inn Parking Lot
This 0.18-acre site is the parking lot for the Pine
Inn. The site is not attached or adjacent to the inn,
it is a separate parcel across the street. As driving
patterns and parking needs change, this site
could be a future candidate for redevelopment.

Site 6: Bruno’s Market Site
This site is two adjacent parcels totaling over 0.53
acres under the same ownership. The site
includes a parking lot that leads to low lot
coverage. It also scores in the top tier for land-toimprovement ratio. It could be a potential redevelopment candidate.

Attachment 1
ECONorthwest 31
Site 7: Three Garages Site
This site would be an assemblage of three equal
sized parcels totaling 0.33 acres. Two of the
parcels are under the same ownership, and one
was previously used in the RHNA5 inventory.

Existing uses include a site with parking and
three attached garages, and a commercial
building used for real estate sales. Combined the
site scores in the top tier for land-to-improvement
ratio and in the mid-tier for value per-squarefoot.

Site 8: First Church of Christ Parking Lot
This site is a parking lot used by the First Church
of Christ. It is three separate taxlots totaling 0.28
acres. Assessor’s records have missing values for
ownership on the two southern parcels but given
its existing use we assume that all three parcels
are owned by the Church. In 2020, the State of
California passed AB185124, commonly referred
to as the “yes in God’s backyard” bill. This bill
makes it easier for religious institutions to
convert excess parking to affordable housing by
prohibiting a local agency from requiring the
replacement of religious-use parking spaces that a developer of a religious institution affiliated housing development project proposes to eliminate as part of that housing development project.

Redevelopment of the site would require a zone change.

Site 9: Misc. City-Owned Sites (Not Mapped)
The City owns a series of miscellaneous small
vacant sites in the R-1 zone. These sites are legacy
right-of-way that were not developed for streets.

Some of these sites may have development
potential. However, our site visit identified that
barriers were common, including mature trees,
topography, and use for primary access for
existing homes.
24 California Assembly Bill. 2020. “Religious institution affiliated housing development projects: parking requirements.” 2019-2020 Regular Session. AB 1851. (See https://openstates.org/ca/bills/20192020/AB1851/) Attachment 1
ECONorthwest 32
Site 10: Red Cross Site
This site is two adjacent parcels owned and used
by the American Red Cross. Collectively the site
is 0.18 acres. Because the site is owned by a nonprofit organization it does not have Assessor’s values to calculate redevelopment metrics.

However, site inspection confirms a low intensity
use. Because the owner is a mission-driven
organization, it’s possible they may be a willing
partner if they can find an alternative for their
current operations.

Site 11: Café Carmel Site (Representing ALL
single-story downtown buildings)
All single-story downtown buildings can be
explored as opportunities for densification. Site
orientation, existing and surrounding uses, and
access are contributing factors to feasibility. The
Café Carmel site pictured is one example of a
single-story commercial property with two-story
building on either side. The Café Carmel site
specifically scores in the top tier for land-toimprovement ratio and has a land value around $100 per-square-foot. The site was previously
used in the RHNA5 inventory.

Site 12: Wells Fargo Site
This site is two adjacent parcels comprised of the
existing Wells Fargo building and associated
parking lot. Combined the site is 0.38 acres. The
site was identified as a candidate site in the
RHNA5 Housing Element inventory. It scores in
the top tier for land-to-improvement ratio. It is
owned by an institutional entity (Wells Fargo).

However, conversations with City staff indicate
that it could be a candidate for inclusion as a
historic property which would complicate
redevelopment.

Attachment 1
ECONorthwest 33
Site 13: Esperanza 7th and Dolores Site
This site is three adjacent parcels owned by
Esperanza Carmel. The site totals roughly 0.30
acres. Esperanza has a development proposal on
the site for eight market rate apartment units.

Site 14: 7th and Mission Site
This 0.18-acre site currently accommodates a
clothing boutique in a single-story commercial
building. Half of the site is comprised of a
parking lot, which leads to low lot coverage and a
land-to-improvement ratio above 1.5. However,
it’s value per-square-foot is high at nearly $500
per-square-foot, making acquisition of the
property less likely.

Site 15: Carmel Foundation Site
The Carmel Foundation is the only provider of
deed-restricted affordable housing in Carmel.

Their administrative offices include four parcels
totaling 0.62 acres. This site does not score high
on land-to-improvement ratio but scores in the
top tier of value per-square-foot. This site is being
considered as a candidate because the Carmel
Foundation is a mission-driven organization and
interviews with leadership indicated that if they
can accommodate their administrative functions
off-site, they would consider redeveloping their
property for affordable housing. Redeveloping
this site would require rezoning.

Attachment 1
ECONorthwest 34
Site 16: Carmel Presbyterian Site
This site is five adjacent parcels totaling almost

1.1 acres. Over a third of the site is a parking lot.

See previous comments about AB1851. The site is
outside of the commercial core and would
require a zone change to facilitate
redevelopment.

Site 17: 5th and Junipero Site
This is a corner lot site totaling just under 0.20
acres. The existing use is a parking lot and singlestory commercial building. The site was included in the RHNA5 inventory. It scores in the mid-tier
for both redevelopment metrics.

Housing Capacity Opportunities
Based on our review of market conditions, the character of existing development, and potential needs in the community, we see opportunities to add housing capacity in the following ways:

Promote Accessory Dwelling Units
Accessory dwelling units are commonly built as
additional structures on lots with an existing home
or are created through garage conversions. Lots that
are conducive to accommodating ADUs have
common characteristics including larger lot sizes,
detached garages, and low lot coverage ratios. In
Carmel over 87 percent of parcels are zoned for
single-family residential uses (R-1), totaling nearly
2,900 lots. Carmel has also had growing interest in
ADU development, receiving 13 applications for
ADUs in 2021, up from 8 in 2020.

Attachment 1
ECONorthwest 35
Infill Capacity
There are several sites, including City-owned
properties, where infill could be possible.

Development of these sites would require careful
consideration of existing adjacent uses. Depending
on the scale of the site, this redevelopment could be
small-scale plex (duplex, triplex, quadplex) infill or
relatively large-scale development. The City should
consider amendments to development standards
and design guidelines to facilitate achieving the
maximum allowed densities. This would result in a
greater likelihood of development feasibility for
low-to-mid-rise multifamily development forms
ranging from three to four stories.

Encourage adding residential units above
commercial uses
Carmel’s business district has many properties that
are single-story low-intensity commercial uses.

Some of these properties may be candidates to add
an additional story of housing above the existing
commercial. There is existing and recent
development precedent that this densification is
feasible, even for historic properties. The best
candidates would be properties where the scale of
adjacent properties is two-stories or greater.

Full Redevelopment
There may be opportunities in the commercial
district where the value of housing may be higher
than the existing commercial use. These sites would
be candidates for razing the existing structure and
building maximum feasible density. To be feasible
the scale of development would have to maximize
the development potential of the site through larger
massing and maximum height.

Attachment 1
ECONorthwest 36
Recommended Actions and Potential Incentives
Based on the preceding analysis, we offer the following recommendations for further consideration as the City progresses to an update of its Housing Element.

Explore changes to development standards. Our review of Carmel’s zoning code found that overly restrictive development standards, such as the two-story heigh limit are not likely to facilitate maximum allowed densities. The City should explore options to remove these barriers consistent with the findings above.

Adopt objective design standards. Local developers indicate that the review and approval process in Carmel is overly restrictive. Senate Bill 35 and the Housing Accountability Act also require the use of objective standards. The City’s code currently includes subjective standards.

The City should analyze its current code language and develop recommendations for objective criteria and opportunities for a streamlined review process.

Create an accessory dwelling unit program. An accessory dwelling unit program could range broadly from creating promotional materials and informational outreach to an aggressive program that could project subsidies, development of pre-approved plans, assisting with allocating water credits (for deed-restricted units only), and technical assistance with planning and building staff navigating the planning and permitting process for property owners.

Create a preservation and monitoring program. The City should take action to understand its inventory of existing deed-restricted units and understand the risk of them converting to market rate.

Consider expanding the R-C and/or R-4 zone. Our analysis identified areas south and west of the commercial core that have opportunity sites and/or concentrations of parcels that could be candidates for redevelopment based on common metrics. The City should explore rezoning opportunities in these areas.

Inventory and incentivize properties with opportunities for densification. The City should consider at a minimum creating an inventory of single-story commercial properties with opportunities for densification and conducting property owner outreach. Other alternatives would be to establish flexible development standards like parking waivers and height limit adjustments, or to assist with water credits.

Explore solutions to water credit barriers to development. The water supply conditions on the Monterey Peninsula are a significant barrier to development. To add units to an existing structure or develop/redevelop a property, a developer must obtain water credits to accommodate the net change in fixtures. However, there are a finite number of credits available and no secondary market for transfer. To accommodate future development, the City should play an active role in regional efforts to improve access to water resources and water credits and facilitate prioritizing water credits for affordable housing.

Attachment 1
Energy Conservation and Reduction of
Greenhouse Gas Emissions G

APPENDIX
Attachment 1
Attachment 1
Table of Contents

APPENDIX G ENERGY CONSERVATION AND REDUCTION OF GREENHOUSE GAS EMISSIONS................................................................................................................ G-1 G.1 Introduction ........................................................................................................................... G-1 G.2 Opportunities for Energy Conservation and Reducing Greenhouse Gas Emissions................................................................................................................................ G-1 Tables
Table G-1 PG&E Programs and Incentives for Residential Properties .............................. G-3 Attachment 1
Attachment 1
Appendix G – Energy Conservation G-1 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Appendix G
Energy Conservation and Reduction of
Greenhouse Gas Emissions
G.1 Introduction
This chapter summarizes opportunities for energy conservation and the reduction of greenhouse gas emissions in the construction of housing in the City of Carmel-by-the-Sea.

G.2 Opportunities for Energy Conservation and Reducing
Greenhouse Gas Emissions
The city adopted a Climate Adaption Plan (CAP) and Climate Action Plan on August 2, 2022. The documents identify goals, policies, and actions that seek to increase resilience to climate change in Carmel. The CAP policy to minimize health impacts of climate change includes the following actions that address energy conservation and reduction of greenhouse gases:
 Invest in Improving Resilience in Critical Facilities. Invest in sustainable backup power sources to provide redundancy and continued services for critical facilities, including City Hall, Carmel Police Department, Carmel Fire Department, the Libraries, and assisted living facilities in the event of a power outage.
 Conduct a Feasibility Study for Existing Building Electrification and Back-up Power.

Perform an electrification feasibility study/existing building analysis in order to understand the potential for, and associated costs of, electrification retrofitting. Needs may include new heat pumps, on-site energy generation, and battery storage to provide more resilient back-up power supply. Establish a plan for reducing or eliminating natural gas from existing buildings, potentially through a reach code, and building resilience to potential electrical grid shutoffs.  Improve Resilience in Existing Building Stock. Develop a program for identifying funding and incentives to weatherize residential and commercial buildings. The program will address severe weather protection, energy efficiency, indoor air quality improvements, and other housing improvements. Include an outreach campaign as part of this program to advertise the benefits of weatherizing and electrifying buildings.

Attachment 1
Appendix G – Energy Conservation G-2 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023  Promote Funding Opportunities. Work with partners like 3CE and PG&E to identify and promote potential resilience opportunities and accessible funding and financing mechanisms to pay for building electrification, weatherization, and battery backups.

State Regulations
The City requires compliance with Title 24 of the California Code of Regulations on the use of energy efficient appliances and insulation. Through compliance with Title 24, new residential development has reduced energy demand particularly when contrasted with older building stock.

Providing energy conservation opportunities to residents who reside in less energy efficient residential units can ultimately lead to a reduction in utility-related housing costs for many households. The City processes in excess of 500 building permits per year for remodels, additions and other construction which rehabilitates the existing housing stock, increases energy efficiencies, and improves water conservation.

Central Coast Community Energy
Central Coast Community Energy (3CE) is the community electricity provider for 33 Central Coast communities in Monterey, San Benito, Santa Cruz, San Luis Obispo, and Santa Barbara counties and is governed by local elected officials serving on the Board of Directors. 3CE was formed with the mission to reduce dependence on fossil fuels by providing carbon-free, affordable, and reliable electricity, and innovative programs within the community. 3CE is on a path to sourcing 100 percent clean and renewable energy by 2030. In collaboration with regional and statewide partners, 3CE provides customers with access to energy program rebates and incentives to electrify the region’s transportation, buildings, and agricultural sector. Carmel-by-the-Sea is a member of 3CE.

Pacific Gas & Electric
Pacific Gas and Electric Company (PG&E), which provides energy efficiency services in Carmel-bythe-Sea, offers public information and technical assistance to homeowners regarding energy conservation. PG&E also provides numerous incentives for energy efficiency in new construction and home remodeling. For example, remodeling rebates exist for projects installing three or more upgrades from a flexible menu of options that earn points towards incentives and rebates. This program’s incentives range between $1,000 and $4,500.

Additionally, PG&E provides residents with information regarding energy saving measures including various incentives and programs available to developers and residential property owners. Table G-1, PG&E Programs and Incentives for Residential Properties, includes a description of the various types of financial and energy-related assistance that PG&E offers low-income customers.

Attachment 1
Appendix G – Energy Conservation G-3 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Table G-1 PG&E Programs and Incentives for Residential Properties Program Description
Energy Savings Assistance
Program
PG&E’s Energy Savings Assistance program offers free weatherization measures and energy-efficient appliances to qualified low-income households. PG&E determines qualified households through the same sliding income scale used for CARE. The program includes measures such as attic insulation, weather stripping, caulking, and minor home repairs. Some customers qualify for replacement of appliances including refrigerators, air conditioners, and evaporative coolers.

Energy Efficiency for Multifamily
Properties
The Energy Efficiency for Multi-Family Properties program is available to owners and managers of existing multi-family residential dwellings containing five or more units.

Multifamily Properties The Energy Efficiency for Multifamily Properties program is available to owners and managers of existing multifamily residential dwellings containing five or more units.

The program encourages energy efficiency by providing rebates for the installation of certain energy-saving products.

California Alternate Rates for
Energy (Care)
PG&E offers this rate reduction program for low-income households. PG&E determines qualified households by a sliding income scale based on the number of household members. The CARE program provides a discount of 20 percent or more on monthly energy bills.

Reach (Relief for Energy
Assistance Through Community
Help)
The REACH program is sponsored by PG&E and administered through a non-profit organization. PG&E customers can enroll to give monthly donations to the REACH program. Qualified low-income customers who have experienced uncontrollable or unforeseen hardships, which prohibit them from paying their utility bills may receive an energy credit. Eligibility is determined by a sliding income scale based on the number of household members. To qualify for the program, the applicant’s income cannot exceed 200 percent of the Federal poverty guidelines.

Medical Baseline Allowance The Medical Baseline Allowance program is available to households with certain disabilities or medical needs. The program allows customers to get additional quantities of energy at the lowest or baseline price for residential customers.

SOURCE: PG&E, 2022.

Monterey Peninsula Water Management District (MPWMD)
The Monterey Peninsula Water Management District (MPWMD) was formed on June 6, 1978 under the enabling legislation found in West’s Annotated California Water Code. District functions include:
 Augmenting the water supply through integrated management of ground and surface water;  Promoting water conservation;
 Promoting water reuse and reclamation of storm and wastewater; and  Fostering the scenic values, environmental qualities, native vegetation, fish and wildlife, and recreation on the Monterey Peninsula and in the Carmel River Basin.

Attachment 1
Appendix G – Energy Conservation G-4 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 The Water Management District serves approximately 105,911 people within the cities of Carmelby-the-Sea, Del Rey Oaks, Monterey, Pacific Grove, Seaside, Sand City, Monterey Peninsula Airport District, and portions of unincorporated Monterey County including Pebble Beach, Carmel Highlands, and Carmel Valley. The District has established five main goals:

1. Increase the water supply to meet community and environmental needs;

2. Assist California American (Cal-Am) Water in developing a legal water supply;

3. Protect the quality of surface and groundwater resources and continue the restoration of the Carmel River environment;

4. Instill public trust and confidence; and

5. Manage and allocate available water supplies and promote water conservation.

Rebates are available for water saving fixtures and appliances for homes and businesses. California American Water (Cal-Am), Seaside Municipal Water District, and other system customers within the District are eligible for a rebate when purchasing and installing water saving devices. Residential rebates are available for purchase of Qualifying Devices when funding is available. The following are residential rebates:
 High Efficiency Toilet — $75;
 Ultra High Efficiency Toilet — $125;
 Toilet Flapper — $15;
 Pint Urinal — $250;
 High Efficiency Residential Dishwasher (Maximum of 3.5 gallons per cycle and has Energy Star certification) — $125;
 High Efficiency Residential Clothes Washer (Water Factor of 4.3 and Energy Star Certification) — $500;
 A second or subsequent rebate for replacing a High Efficiency Clothes Washer is available after 8 years;
 Instant-Access Hot Water System — $200 per Qualifying Property;  On-demand pump or point-of source water heater as part of an Instant-Access Hot Water System — $100 per component, to a maximum of two components per Qualifying Property;  Multi-Family Dwelling Meter Split — $100/dwelling unit;  Smart Irrigation Controller — $100 with four stations. Additional $10 available per station up to twenty (20) stations;
Attachment 1
Appendix G – Energy Conservation G-5 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023  One or more Soil Moisture Sensor(s) on a conventional automatic Irrigation System — $25 per sensor;
 Cistern water tanks — $50 per 100 gallons of water storage capacity (up to 500 gallons) in a Cistern, then $25 per 100 gallons of water storage capacity up to a maximum storage capacity of 25,000 gallons per Qualifying Property. Sites must have sufficient roof area to fill Cistern and may require an inspection;
 Lawn removal and replacement with low water use plants or permeable surfaces — $1.00 per square-foot to a maximum of 2,500 square-feet per Qualifying Property. Pre-qualification, inspections and deed restrictions are required;
 Rotating Sprinkler Nozzles (minimum purchase and installation of ten) — $4.00 per nozzle;  Graywater Irrigation System supplied by one Clothes Washer for irrigation — $100. A site inspection is required by Building Inspector and/or MPWMD; and  Graywater Irrigation System supplied by one or more Bathrooms that have a Bathtub/Shower connected to a Graywater Irrigation System — $100 per Bathroom. (Residential limit: 4) A site inspection is required by Building Inspector and/or MPWMD.

As part of the 6th Cycle Housing Element Update process, the City of Carmel-by-the-Sea will continue to implement a Water Conservation program that supports the MPWMD and also provides information to the community on water conservation retrofits and best practices.

Federal and State Programs
The Low-Income Home Energy Assistance Program (LIHEAP) is a federally funded program to assist low-income households that pay a high portion of their income on energy needs. LIHEAP is funded by the U.S. Department of Health and Human Services, Administration for Children and Families, Office of Community Services.
 The Home Energy Assistance Program (HEAP) provides one-time financial assistance to help balance an eligible household's utility bill;
 The Energy Crisis Intervention Program (ECIP) provides assistance to low-income households that are in a crisis situation. Such an example would be a household receiving a 24-48 hour disconnect notice or service termination by their utility company. Another example would be a household facing an energy-related crisis that could be deemed potentially life-threatening in the household, such as a combustible appliance;
 LIHEAP Weatherization provides free energy efficiency upgrades to low-income households to lower their monthly utility bills while also improving the health and safety of the household's occupants;
Attachment 1
Appendix G – Energy Conservation G-6 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023  Education on basic energy efficiency practices and instruction on the proper use and maintenance of installed weatherization measures; and
 Energy budget counseling.

The Inflation Reduction Act (IRA) has provided significant federal funding to support electrification of new construction, renovations, and existing buildings over the next ten years. Enhanced amounts are provided for income-qualified residents. Support provided by IRA includes:

New Home Construction Tax Credits (single family or multi-unit)  Up to $2,500 tax credit if meets Energy Star certification requirements;  Up to $5,000 tax credit if meets Zero Energy Ready Homes certification requirements; and  Tax credit is "per unit" for multifamily developments; maximum tax credit requires conformance with prevailing wage requirements.

Home Improvement Tax Credits (for households with tax liability)  30 percent of project cost, capped at $2,000 for heat pump installation and $1,200 for other energy efficiency appliances and improvements; and
 Available January 2023 through 2032; tax credits can be claimed on a per year basis.

Home Improvement Tax Rebates (for low and moderate-income households)  Rebates up to $14,000 depending on income for heat pumps, induction and electric ranges, and other energy efficient improvements; and
 Available Fall 2023 through 2032.

Home Renewable Power Tax Credits
 30 percent of project cost for installation of solar panels, battery storage, and any other renewable power source on property;
 Example: $19,000 to install rooftop solar panels generates $5,700 tax credit; and  Retroactive to 2022, full credit sunsets in 2032; then 22 percent credit expires in 2035.

The Property Assessed Clean Energy (PACE) Financing program enables property owners to secure upfront funding for energy efficiency, water efficiency, renewable energy, and seismic improvement projects. These improvements are repaid through an up to 20-year special line item on their property taxes instead of traditional consumer credit.

The City includes programs in the 6th Cycle Housing Element to promote energy conservation and green building and to actively disseminate information about State and Federal programs.

Attachment 1
Appendix G – Energy Conservation G-7 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 Energy and Resource Conservation
Need
Programmatic Action
Energy Efficiency Program 2.4.A: Housing Rehabilitation and Maintenance Information Program 4.1.B: Energy Conservation and Green Building
Water Conservation Program 4.1.A: Water Conservation
Attachment 1
Appendix G – Energy Conservation G-8 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Initial Draft August 2023 This side intentionally left blank.

Attachment 1
Stakeholder Survey H

APPENDIX
Attachment 1
Attachment 1
Table of Contents
APPENDIX H STAKEHOLDER SURVEY ............................................................................. H-1 H.1 Stakeholder Survey ................................................................................................................ H-1 Attachments
Attachement A Stakeholder Survey Questions
Attachment B Open-ended Responses
Attachment 1
Attachment 1
Appendix H -- Stakeholder Survey H-1 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Appendix H
Stakeholder Survey
H.1 Stakeholder Survey
The Housing Element Stakeholder Survey was conducted from May 24, 2023 to July 6, 2023 to provide residents, business owners, visitors, and people working in Carmel-by-the-Sea with an opportunity to share input on what housing needs exist in Carmel-by-the-Sea and to share ideas on how the City can achieve its Regional Housing Needs Allocation (RHNA). The survey consisted of 21 questions designed to inform the City of what demographics exist in the City, what the affordable housing needs are, and how the 6th Cycle Housing Element can best meet these affordable housing needs. The survey was conducted in both English and Spanish. The survey was available online at the Carmel-by-the-Sea Housing Element page (homecarmelbythesea.com).

City of Carmel-by-the-Sea staff shared information about how to take the survey during the June 15, 2023 joint City Council and Planning Commission meeting. The survey was also distributed throughout town to local businesses in an effort to reach groups who are not typically represented, including people who work in Carmel-by-the-Sea. A total of 156 survey responses were received in English and 1 response was received in Spanish.

The survey responses discussed below represent responses from an uncontrolled sample size of selfselected community members who are considered to be motivated and interested in the 6th Cycle Housing Element. This can make it difficult to draw conclusions based on the responses received.

The following serves as a brief summary of the responses received.

Online Survey Results
Respondent Demographics
The City collected a total of 157 responses to the survey. As shown in Figure 1 below, survey respondent ages range from 18 to 75 years and older. The fewest survey responses were collected from respondents ages 18-34 (3 percent) and the majority of the survey responses collected were from respondents ages 55-74 (87 percent). This indicates an underrepresentation of younger community members in the survey results, and indicates a need for additional future outreach to target these groups.

Attachment 1
Appendix H -- Stakeholder Survey H-2 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Of the respondents, 74 percent identified as non-Hispanic White and 50 percent of the respondents identified as earning above $100,000. Thirty-one percent of survey respondents preferred not to disclose their annual income. In general, the majority of survey respondents are between the ages of 55-74, are non-Hispanic White, and earn over $100,000.
1%
2%
8%
8%
24%
26%
31%
0% 5% 10% 15% 20% 25% 30% 35%
$0-$25,000
$25,001-$50,000
$75,001-$100,000
$50,001-$75,000
$200,000 or more
$100,001-$200,000
Prefer not to say
Figure 2: "What is your annual household income?"
1%
3%
4%
16%
22%
55%
0% 10% 20% 30% 40% 50% 60%
35-54, 55-74
Prefer not to say.
18-34
75+
35-54
55-74
Figure 1: "How old are you?"
Attachment 1
Appendix H -- Stakeholder Survey H-3 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Figure 4 below demonstrates the majority of respondents identified themselves as Carmel residents owning their home (61 percent) compared to 14 percent of survey respondents indicating they rent their homes. Twenty-two percent of respondents identified as working in Carmel-by-the-Sea, 8 percent identified as business owners in Carmel-by-the-Sea, and one respondent identified as being unhoused or lacking permanent housing.
1%
8%
14%
17%
22%
61%
0% 10% 20% 30% 40% 50% 60% 70%
I am unhoused/do not have permanent housing
I own a business in Carmel-by-the-Sea
I live in Carmel-by-the-Sea and rent my home.

Other
I work in Carmel-by-the-Sea
I live in Carmel-by-the-Sea and own my home
Figure 4: "Describe your role in the community."
0%
1%
1%
1%
1%
3%
8%
18%
75%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Native Hawaiian or Pacific Islander
Blended
Middle Eastern
Black or African American
Asian or Asian American
Native American
Hispanic, Latino, or Spanish origin
Prefer not to say
White (non-Hispanic)
Figure 3: "Which racial or ethnic group(s) do you identify as?" Attachment 1
Appendix H -- Stakeholder Survey H-4 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Figure 5 below demonstrates that the majority of survey respondents live in Carmel-by-the-Sea fulltime, and Figure 6 below demonstrates that 68 percent of survey respondents are 55 years or older followed by 16 percent being female-headed households. This demographic data suggests that respondents are likely more established community members in the City. 15%
20%
65%
0% 10% 20% 30% 40% 50% 60% 70%
Part-time
Not applicable
Full-time
Figure 5: "If you are a current resident of Carmel-by-the-Sea, do you live here full-time or part-time?"
1%
1%
3%
16%
26%
68%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Unhoused
Single-Parent Household
Differently Abled / Disabled
Female Headed Household
None of the above apply
Senior (55+)
Figure 6: "Do you identify with any of the following?"
Attachment 1
Appendix H -- Stakeholder Survey H-5 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Desired Housing Types
Survey respondents were asked to identify which housing types they would prefer to live in, of which approximately 83 percent identified single-family homes, followed by 6 percent identifying condominiums, 5 percent identifying apartments, and 3 percent identifying ADUs (Figure 7).

Note: See Attachment B for a full list of “other” responses received.

Respondents were asked to explain why they would prefer to live in ADUs. The following 5 responses were received:
 Privacy;
 Aesthetic (assuming newer prefabricated ADU), privacy and affordability;  Privacy & more quiet than apartment;
 I only need space for a single bed, table & chair, toilet sink, shower. I work 7 days a week. I just need 800 square feet; and
 Affordable housing.

Respondents were asked to explain why they would prefer to live in an Apartment. The following 7 responses were received:
 I have little time for motivation for the upkeep of a whole house; 3%
3%
5%
6%
83%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
ADU
Other
Apartment
Condominium
Single-Family home
Figure 7: "In which of these housing types would/do you prefer to live in?"
Attachment 1
Appendix H -- Stakeholder Survey H-6 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023  I am at the stage in my life where I am seeking to maximize my financial solvency through steady accrual of work skills/experience and high willingness to relocate for greater chances of quality employment. I will not seek any living place requiring greater commitment until I have found the community most suited to sustaining both my professional growth and my standard of living;
 Affordability and community living opportunities. Apartments are like little families. Single family homes are like balkanized islands, with little communion;  Affordable and give the freedom to move quickly;
 Most affordable option;
 Convenience; and
 Single; No maintenance; Safety/Security.

Respondents were asked to explain why they would prefer to live in a Condominium. The following 10 responses were received:
 It's the right amount of space I'd need and likely more affordable and feasible than a singlefamily home;  Pride of ownership, take better care of community and more involved;  Makes better use of land without the problems associated with high density rental properties;  Easy maintenance;
 Maintenance lower;
 Less maintenance;
 Less expensive alternative to single-family housing;
 Amenities;
 Would rather own than rent; and
 No maintenance
In the next survey question, respondents were asked to identify the types of housing they would like to see constructed in Carmel-by-the-Sea. A list of options was provided and respondents were asked to select all that applied (they could select more than one choice). Figure 8 below demonstrates the most common housing types respondents would like to see built are: Condominiums (50 percent); ADUs (49 percent); Apartment rentals (47 percent); and Senior Housing (44 percent). Seventeen percent of respondents shared their own ideas, which are captured as “other” in Figure 8, and can be found under Question #10 in Attachment B where all “free responses” are listed.

Attachment 1
Appendix H -- Stakeholder Survey H-7 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Note: See Attachment B for a full list of “other” responses received.

Affordable Housing in Carmel-by-the-Sea
Survey respondents were asked how the supply of affordable housing could be increased to meet the needs of the community. A list of options was provided and respondents were asked to select all that applied, with many respondents selecting more than one choice.

The majority of respondents (55 percent) selected “second-story additions to single story buildings could provide affordable housing downtown,” followed by 52 percent of respondents selecting “guesthouses could be converted to Accessory Dwelling Units,” and 36 percent selecting “set a maximum square footage limit on housing units downtown as a means to create more small units.” Thirty-two percent of respondents shared their own ideas, which are captured as “other” in Figure 9, and can be found under Question #11 in Attachment B where all free responses are listed.
17%
20%
22%
34%
39%
44%
47%
49%
50%
0% 10% 20% 30% 40% 50% 60%
Other
Triplex
Fourplex
Duplex
Single-Family Home
Senior Housing
Apartment
Accessory Dwelling Unit
Condominium (owned)
Figure 8: "What type of housing would you like to see constructed in Carmel-by-the-Sea?"
Attachment 1
Appendix H -- Stakeholder Survey H-8 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Note: See Attachment B for a full list of the “other” responses received. The “other” responses are the open-ended responses that were received.

Respondents were asked what affordable housing resources should be provided in the City of Carmel-by-the-Sea (Figure 10). Out of 157 responses, the majority of respondents (69 percent) selected “information about affordable units,” followed by 33 percent selecting “tenant assistance resources,” and 32 percent of respondents selecting “down payment assistance.” Nineteen percent of respondents shared their own ideas, which are captured as “other” in Figure 10, and can be found under Question #12 in Attachment B where all free responses received in the survey are listed.
26%
30%
32%
34%
36%
52%
55%
0% 10% 20% 30% 40% 50% 60%
Change the zoning code to allow 3-story buildings
downtown specifically for affordable housing.

Fund the creation of affordable housing through a housing vacancy tax or bond funding.

Other
Create objective (yes/no checklist-style) design standards for new housing projects that include affordable units.

Set a maximum square footage limit on housing units in
downtown to spur the creation of more small units…
Encourage property owners to convert existing
guesthouses and studios to legal Accessory Dwelling…
Encourage second-story additions to single-story buildings downtown specifically for affordable housing.

Figure 9: "How can the supply of affordable housing be increased to meet the needs of our community?"
Attachment 1
Appendix H -- Stakeholder Survey H-9 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Note: See Attachment B for a full list of the “other” responses received. The “other” responses are the open-ended responses that were received.

Increased Housing and Local Businesses
Survey respondents were asked what effect providing more housing units would have on local businesses in Carmel-by-the-Sea, of which 39 percent indicated more customers, 21 percent indicated no change, and 7 percent indicated fewer customers. Thirty-two percent of respondents shared their own ideas, which are captured as “other” in Figure 11, and can be found under Question #15 in Attachment B where all free responses received in the survey are listed.

Note: See Attachment B for a full list of the “other” responses received. The “other” responses are the open-ended responses that were received. 5%
19%
26%
28%
32%
33%
69%
0% 10% 20% 30% 40% 50% 60% 70% 80%
None
Other
Housing Choice Voucher program (federal)
Information on Fair Housing/ How to file discrimination claims
Down payment assistance
Tenant assistance resources
Information about affordable units
Figure 10: "What affordable housing resources do you feel should be provided in Carmel-by-the-Sea?"
7%
21%
32%
39%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Fewer customers
No Change
Other
More customers
Figure 11: "What effect would providing more housing units in Carmel-by-the-Sea have on local businesses?"
Attachment 1
Appendix H -- Stakeholder Survey H-10 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Benefits of Living in Carmel
Survey respondents were asked what the most appealing elements about life in Carmel-by-the-Sea is.

The most common response was Parks/Beach/Recreation (89 percent), followed by Architectural Aesthetic (67 percent), and Public Engagement/Community (50 percent). Eighteen percent of respondents shared their own ideas, which are captured as “other” in Figure 12, and can be found under Question #7 in Attachment B where all free responses are listed.

Note: See Attachment B for a full list of the “other” responses received. The “other” responses are the open-ended responses that were received.

Discussion of Results
The majority of respondents were between the ages of 55 and 75, earned more than $100,000 year, and owned homes in Carmel-by-the-Sea. This indicates responses from a group who is generally well established in the City and may not adequately capture community-wide ideas towards housing needs, for example from a younger renter or worker in the community.

Although respondents indicated their preferred housing type to live in is a single-family dwelling, many respondents indicated a need for more diverse housing types within the City, such as condominiums, apartments, and ADUs which could help to provide more affordable housing options in the City. The 6th Cycle Housing Element includes programs to increase these housing types. Program 1.3.C (Accessory Dwelling Units) will streamline ADU permitting, Program 1.4.A (Eliminate Unnecessary Use Permits) will incentive multi-family type housing by removing permitting barriers, and Program 3.1.G (A Housing Priority Overlay Zoning District) encourages a higher unit yield within the commercial and multi-family zoning districts. 10%
17%
18%
24%
43%
50%
68%
89%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Employment opprotunities
Housing investment property
Other
The school district
Amenities (shopping,services).

Public engagement/community
Architectural Aesthetic of the housing
Parks/Beach/Recreation
Figure 12: "What are the most appealing elements about life in Carmel-by-the-Sea?"
Attachment 1
Appendix H -- Stakeholder Survey H-11 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 A number of respondents did indicate a preference for constructing condominiums, apartments, and ADUs.

When asked how the supply of affordable housing could be increased within Carmel-by-the-Sea, the most common selected responses out of provided options were: 1) encourage second-story additions to single-story buildings downtown, 2) convert guesthouses to ADUs, and 3) set a maximum square footage limit on housing units downtown. Number one will be addressed via Program 2.3.A (Preserve and Increase Upper Floor Residential Uses), number two will be addressed via Program 1.3.C (Accessory Dwelling Units), and number three will be addressed via Program

3.1.G (A Housing Priority Overlay Zoning District). For this question, respondents were also given the opportunity to provide their own response. Themes from these free responses include: utilize empty or underutilized parking lots for housing, turn Flanders Mansion into housing, and sentiment that there is not enough space in Carmel for additional housing. Program 1.1.B (Underutilized Sites) addresses exploring underutilized sites, with the City committed to actively investigate underutilized publicly owned sites such as parking lots.

When asked what affordable housing resources should be provided in Carmel-by-the-Sea, the overwhelming majority of respondents selected “information about affordable units.” The 6th Cycle Housing Element includes a Program 5.1.A in which the City will work with fair housing organizations and increase outreach efforts to connect community members to affordable housing opportunities.

Most property owners indicate they are not interested in re-developing their property to include more housing, such as ADUs. However, there were a handful of property owners that did indicate interest. Property owners indicated interest in building additional housing on their property if parking requirements were waived, permitting fees lowered, and water credits made available.

The last two survey questions focused on life in Carmel-by-the-Sea. The majority of respondents believe more housing would result in more customers for local businesses. A handful of respondents said that more housing would result in fewer customers, which appears to be an assumption based on the concern that more housing would result in less parking available for visitors. While the 6th Cycle Housing Element does allow for parking reductions for affordable housing projects, it also requires that all existing parking be integrated into the new housing development, if for example a parking lot is converted.

Finally, respondents were asked about the most appealing aspects about living in Carmel-by-the-Sea.

The most popular response was “Parks/Beach/Recreation,” followed by “Architectural Aesthetic of the Housing,” followed by “Public Engagement/Community.” It is clear that the architectural character and charm of Carmel-by-the-Sea is a major reason people choose to live in Carmel-by-theSea. It is evident that a number of community members fear that meeting the RHNA will disrupt this charm they love. Program 1.4.B (Objective Design Standards) will allow the City to retain their Attachment 1
Appendix H -- Stakeholder Survey H-12 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 design aesthetic while streamlining the permit process. Additionally, based on the survey results, community is also an important aspect of living in Carmel-by-the-Sea. With a current vacancy rate of 51 percent, more market rate and affordable units will result in more full-time community members, which will enrich the community of Carmel-by-the-Sea.

Attachment 1
Stakeholder Survey Questions A

ATTACHMENT
Attachment 1
Attachment 1
Appendix H -- Stakeholder Survey 1 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023

1. How old are you?
<18
18-34
35-54
55-74
75+
Prefer not to say

2. Which racial or ethnic group(s) do you identify as?
Black or African American
White (non-Hispanic)
Asian or Asian American
Hispanic, Latino, or Spanish Origin
Native American
Native Hawaiian or Pacific Islander
Prefer not to say
Other: _____

3. Do you identify with any of the following? Select all that apply.

Senior (55+)
Female-Headed Household
Differently Abled/Disabled
Unhoused
Single-Parent Household
None of the above apply

4. What is your annual household income?
$0 - $25,000
$25,001 - $50,000
$50,001 - $75,000
$75,001 - $100,000
$100,001 - $200,000
$200,000 or more
Prefer not to say

5. Describe your role in the Community. Select all that apply.

I live in Carmel-by-the-Sea and rent my home.

I live in Carmel-by-the-Sea and own my home.

I represent a community organization (please specify): ______ I am unhoused/do not have permanent housing.

I own a business in Carmel-by-the-Sea.

I work in Carmel-by-the-Sea.

I visit the City but live elsewhere (please specify): ______ Other: _____
Attachment 1
Appendix H -- Stakeholder Survey 2 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023

6. If you are a current resident of Carmel-by-the-Sea, do you live here full-time or part-time?
Full-time.

Part-time.

Not applicable.

General Survey Questions

7. Residents and non-residents, what are the most appealing elements about life in Carmel-by-the-Sea? Select all that apply.
a. The school district.
b. Parks/Beach/Recreation.
c. Employment opportunities
d. Housing (please specify, i.e. “investment property” or “architectural aesthetic,” etc.):
_____
e. Amenities (Shopping, Services).
f. Public engagement/community.
g. Other: _____

8. When considering housing affordability and availability, what factors might influence your decision to reside in Carmel-by-the-Sea or outside of the City? Select all that apply.
a. Limited supply/availability of housing.
b. High cost of housing.
c. Limited employment opportunities.
d. Limited variety of housing options (limited multi-family options, micro-unit options, etc). e. Small lot sizes.
f. Lack of demographic diversity.
g. Other: _____

9. In which of these housing types would/do you prefer to live, and why? a. Accessory Dwelling Unit, because:
b. Single-Family Home, because:
c. Apartment, because:
d. Condominium, because:
e. Other, because:

Attachment 1
Appendix H -- Stakeholder Survey 3 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023

10. The State housing goal for Carmel-by-the-Sea is 349 new housing units (market rate and affordable) between 2023 and 2031. What type of housing would you like to see constructed in Carmel-by-the-Sea? Select all that apply. a. Apartment (rental).
b. Condominium (owned).
c. Single-family home.
d. Duplex.
e. Triplex.
f. Fourplex.
g. Accessory Dwelling Unit (ADU)/Junior Accessory Dwelling Unit (JADU). h. Senior Housing.
i. Other: _____

11. How can the supply of affordable housing be increased to meet the needs of our community? Select all that apply. Note: The following are examples and not the only options available. Use “Other” to suggest additional options. a. Encourage property owners to convert existing guesthouses and studios to legal Accessory Dwelling Units (ADUs) or construct new ADUs.
b. Encourage second-story additions to single-story buildings downtown specifically for affordable housing.
c. Change the zoning code to allow 3-story buildings downtown specifically for affordable housing.
d. Set a maximum square footage limit on housing units in downtown to spur the creation of more small units rather than just a few large units. e. Create objective (yes/no checklist-style) design standards for new housing projects that include affordable units.
f. Fund the creation of affordable housing through a housing vacancy tax or bond funding. g. Other: _____

12. What affordable housing resources do you feel should be provided in Carmel-bythe-Sea? Select all that apply. a. Tenant assistance resources.
b. Information about affordable units.
c. Information on Fair Housing/how to file discrimination claims. d. Down payment assistance.
e. Housing Choice Voucher Program (Federal).
f. Other: _____
Attachment 1
Appendix H -- Stakeholder Survey 4 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023

13. If you own property, what would it take for you to consider adding a housing unit(s) on your property, such as an accessory dwelling unit? a. Answer:
b. Not applicable because:

14. If you own property, would you consider redeveloping your property to include new housing? Examples include building an ADU/JADU, converting commercial office space to an apartment, or constructing a second-floor addition with apartments.
a. Yes, because:
b. No, because:
c. Not applicable because:

15. What effect would providing more housing units in Carmel-by-the-Sea have on local businesses?
a. More customers.
b. Fewer customers.
c. No change.
d. Other: _____

16. How does, or how would, living in Carmel-by-the-Sea benefit you? (Quality of life question). Answer:

Attachment 1
Appendix H -- Stakeholder Survey 5 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Open-ended Responses B

ATTACHMENT
Attachment 1
Attachment 1
Appendix H -- Stakeholder Survey 6 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 The following lists the open-ended responses received for survey questions 7, 10, 11, 12, 13, 14 ,15, and 16. These responses are indicated as “other” in the figures.

Question 7: “What are the most appealing elements about life in Carmel-by-the-Sea? Select all that apply.” See corresponding Figure 12.

A forest with a village and a beach!
Our neighbors are kind and we help one another.
2 hour commute from home
The natural beauty of the setting on the California coastline.

Trees, scenic pathway, ocean views, sunsets, walking town, dog friendly Volunteer opportunities
The natural beauty of the Forest and beach, etc.

The peninsula provides most big city benefits without the downside beauty of our area and lack of traffic and homeless
garage bands
No streetlight, quiet, good air quality
Weather/climate
Mainly small unostentatious but unique homes on small lots in natural settings.

Serenity, beauty, simple life
Weather, mountains, beach
Question 10: “The State housing goal for Carmel-by-the-Sea is 349 new housing units (market rate and affordable) between 2023 and 2031. What type of housing would you like to see constructed in Carmel-by-the-Sea? Select all that apply.” See corresponding Figure 8.

Condominium (owned), *Must say, unless you convert a hotel I don’t know how you will nicely achieve this. I don’t think anyone wants to see high rises.

Housing that naturally flows from a century of local control I appreciate the efforts of the city to meet the State's dictates, but I do not believe adequate thought has been placed on the implications of additional housing on the natural setting of Carmel, as well as traffic, parking, services, etc. Once built, who will be responsible for maintenance? And who will fairly determine who is allowed to live in these 350 units? I also do not believe that the longer-term has been considered. If 350 units are added in this round will more units be required in the future? There are many more people who work in Carmel's low paying service sector than can ever be accommodated in the surrounding residential area, and the existing residential area should not be expected to serve Carmel's commercial sector.

Also, if changes are made to accommodate development of affordable housing, won't some of these changes also be used by clever developers of luxury housing to build larger, more ostentatious housing?
I don't think it is feasible to build affordable housing given the value of the property and cost of building.

Attachment 1
Appendix H -- Stakeholder Survey 7 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Less housing. Isn’t 3,000 homes in one square mile enough? I’m not pro-densification. 4,000 square foot lots are already small. We already have small setbacks.

Minimally invasive to character of Carmel.

No additional housing
no more new housing
None
None — Carmel should determine what is right for its citizens not bow to government bureaucrats
None It is too crowded already. Parking is already a problem None - this needs to be a local decision - not mandated by the state None.
none. we have no space. how about building housing at fort ord area None. Ridiculous amount of homes being required by the State. Will destroy Carmel by the Sea.

Resistance/Reduction of State housing goal
We should fight this ridiculous "mandate" from on high! Would like to see use of second story condos over downtown business only. Against removing Sunset Center parking unless able to dig subterranean parking. Do not think there is space for 349 homes without razing the character of Carmel. Eastwood and others improved water availability and do not believe there is sustainable possibility here--instead, build up city portions in other portions of Monterey county. If would be more efficient and better for the environment
Question 11: How can the supply of affordable housing be increased to meet the needs of our community? Select all that apply. Note: The following are examples and not the only options available. Use “Other” to suggest additional options. See corresponding Figure 9. “Affordable housing” is not a right. Supply and demand is the driver of market rates for housing and all other products and services. Work with builders and developers to find solutions and don’t make everything so arduous and difficult and fee intensive. There is no “one size fits all solution”. Each neighborhood, street and property presents its own problems and solutions.

Affordable housing directives aren’t necessary.

Aggressively tax homes that are NOT primary residences. Anyone using Carmel as their vacation home is contributing to the housing problem. Let’s make all of Carmel primary residences or full time rentals!
allow free market forces to guide the housing in the community Annex land outside city for affordable housing
Build housing on the outskirts and empty parking lots
Carmel should not be forced to change its look, feel and style! CBTS is nearly fully built out and highly desirable and therefor expensive. Adding housing will only ruin the quality of life in the city. Build the additional housing out in the Fort Ord area.
encourage landowners to build on empty lots, fast-track building permits Attachment 1
Appendix H -- Stakeholder Survey 8 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Fight back. There’s no land here for development.

First define "our community." Whose needs are being met? Service workers in the business district? Teachers? Artists? Seniors? If racial/ethnic diversity is a goal, then make sure these people are included in the discussion. Then ask what sort of housing these people wish to have - do not dictate this for them. Keeping in mind that at this point only 350 units would be available, then do what it appears the planning office is recommending. Focus on areas in the central business district that could be enhanced by development and that will not encroach upon residential areas that are already built out with small homes on small lots.

Prioritize opportunities for purchasing versus renting so people can benefit from investment and not simply pay rent to a landlord. Any building should require attention to parking availability, increased traffic, environmental impact, and potential increased commercial needs (grocery stores, etc.). I also believe that an argument can and should be made that areas beyond the tiny jurisdiction of Carmel by the Sea can do more to accommodate affordable housing needs, and provide people with larger dwellings and ownership opportunities. Senator Laird seems to be leaning this way.

Hospitality requires workers who aren't paid enough to live here. Hospitality should bear the cost of providing housing for their workers; it is not the responsibility of residents I did not think that there is a good reason to change the town as we are too small and do not have the availability of land to do this
I do not believe CBTS should be required to provide "affordable housing". I believe in the free market factors.

It is absolutely ridiculous to plan affordable housing in a community the size of Carmel Bythe-Sea.

Less short term rental places, more long term rental options Limit the number of the short term vacation rentals of houses MAKE CERTAIN THE NEED EXISTS. Ask those who work in Carmel if they & their families are willing to give up the square footage they now enjoy to live in Carmel in half the space.

N/A. How will you address the issue of water & parking? Not everyone can live in the Carmel area. Not enough room! Small lots. Neighbors too close!

OPPOSE THE MANDATE
Press upon our representatives the lack of space in our tiny village and encourage housing in other parts of the county
Push back on State mandate
Reaching the state mandated goal will destroy the character and charm of Carmel There is no space for this in Carmel - but our state is huge - build housing elsewhere. Anyone who thinks Carmel can accommodate “affordable” housing hasn’t built here! Utilize empty lots for single family housing.

Where is the Water going to come from for any of this?
work with our neighboring communities that have land/water available for housing Attachment 1
Appendix H -- Stakeholder Survey 9 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Question 12: “What affordable housing resources do you feel should be provided in Carmel-by-theSea? Select all that apply.” See corresponding Figure 10.

A map of someplace else
affordability is the main factor. No gov. assistance should be involved Affordable housing outside city limits.

I don’t know.

I don't care for any of the choices
I’m not sure.

Limit to that which is currently available
N/A. The city is not obligated to provide affordable housing None
None
None
None
NONE
None
none
NONE
None
None of the above
None. Carmel is NOT affordable for everyone. No one would want to help me if I wanted to live in the first arrondisement in Paris!
None. “Affordable housing” is a result of market demand.

Not for the City to get involved in.

Nothing.

Provide a gig economy type resource such as Airbnb or Neighborhood Storage to allow owners to rent out rooms
Rental agencies
Simplify the building code. Reduce the planning commission to 3, There is smooch open ground within 1/2 hour of Carmel why would anyone in their right mind try to jam affordable housing in a community as small and as expensive as Carmel? Unknown
Attachment 1
Appendix H -- Stakeholder Survey 10 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Question 14: “If you own property, would you consider redeveloping your property to include new housing? Examples include building an ADU/JADU, converting commercial office space to an apartment, or constructing a second-floor addition with apartments.” Note: There is no corresponding figure for this question.

No
yes I would consider
No
More space
no
I would, if I had more space.

No
No
No way
No. don’t be ridiculous
No
No
NOT
Our lot is too small and we’re already right on top of our neighbors No
ADU
No
I am not interested at this time to increase the density of my property No
I would consider an ADU. CTBS is not an apartment community. no
Absolutely not.

Not possible. No.

N/A, but no
No
The lots are too small
I would consider adding a second floor condo unit but not an apartment.

No
no
Yah, would like to build condominium to retain pride of ownership in community No
No. My house is already two stories. A third story would destroy the character of the neighborhood. I value the forest-like nature of the neighborhood and am not willing to remove the trees on the property to make space for an ADU. no
No
Attachment 1
Appendix H -- Stakeholder Survey 11 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 No
No
No
No, all the options above make a community a less desirable place to live.

No because the state is on the path to more rent control. How would I recoup my costs unless I sell.

No
n/a
Yes, converting second floor office space to apartments.

No
Yes
No
yes
No - My house location relative to the lot and steep hillside won't support an ADU.

Otherwise I would explore this.

Yes an ADU.

No
No. ly have to pay more property taxes than I do now
no
NO
Yes
Not enough space
No…see above
No.

N/A see above
I cannot afford to “redevelop” my 4,000 sf residential lot. if properly stimulated financially
We live in a modest 100 year old house. Altering it would be a travesty No
no
Yes, if lot would permit addition
Absolutely NOT!!
We already have a second story. I suspect many homeowners have similar situations. You might do better filling vacant commercial properties as there are quite a few. only a JDU is possible...but not of interest.

No, don't have the space or floorplan for an addition.

I believe that SFD zoning laws should be respected and followed; so I would not consider an ADU. ADU's as now allowed increase the density of our village without any other requirements to offset the impact: no parking, setbacks, no requirement to even rent at below market rate. Nothing gained and much loss to the community.

Heritage oak in the way.

No.

Attachment 1
Appendix H -- Stakeholder Survey 12 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 NA
Yes, all of the above
No
Only with some protection to me as an owner as mentioned above.

No
No
No
I could not afford to build anything. Fixed income senior No
I would consider it, but we cannot afford to do this.

No
No, my property is too small.

Too small
No
Build ADUs not encourage STRs
no (see above)
Not a property owner
Yes
Yes
I already have a legal subordinate unit.

No, see above
No
No. Already 2 story.

Since I live in a quiet neighborhood, I believe the best option for us is to build an ADU/JADU. The city should evaluate the house size to lot size ratio. With that houses can go to a second level without restrictions.

NA
yes
All of the above.

Yes - I am currently considering this.

N/A
Not at this time.

Yes
Yes.

N/A
No.

No
No, it's a single family home that I plan to live in.

Not sure. It’s a complex question.
na
Attachment 1
Appendix H -- Stakeholder Survey 13 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Yes, but the city makes the permitting very difficult and the county does not have the water.

Yes
No
No
Question 13: “If you own property, what would it take for you to consider adding a housing unit(s) on your property, such as an accessory dwelling unit?” Note: There is no corresponding figure for this question.

Extra housing on a 4000 sqft lot? No thanks
ability to pay for development and increased property taxes. ADUs appear the most realistic way approach to meet our 349 housing unit goals.

I wouldn’t
More space
My property is historic.

More land, more financial resources. All other existing elements are acceptable.

Untenable request due to lot limitations
There isn't space on my property to add an ADU
Wouldn’t happen
I would move out of the city if affordable housing continues to be forced on Carmel, and if it indeed comes to fruition
Guidelines to keep the charm and permit process loosened.

Never
I would NOT consider adding a unit to house somebody else We have a tiny lot and there is no room
We are content with our property just the way it is
HIghly cooperative City regulations and water
No
It should be my choice and not mandated by the State
I would not build an ADU on a 40x100 lot. My poor neighbors! Nothing
If CTBS changed the access to water and limits on lot coverage, many owners would build ADU's because they would like to have more space available. I would build an ADU and put a relative in it.

There isn't enough room and there isn't enough water
Absolutely not. The city won't even let me build a car port let alone another dwelling! We do not have room so we could not consider it.

N/A, but if I owned, I would build an ADU for my aging parents I wouldn’t consider it.

More land
Less restrictions on adding units and off street parking.

Attachment 1
Appendix H -- Stakeholder Survey 14 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 No
I live on a 4000 sqft lot - cant imagine having additional people on the lot.

Upzoning to allow for condominiums
Nothing would convince me
Waive lot coverage limits to permit ADUs on small lots
My lot is fully built out. I would have to remove trees in order to add an ADU. no
Not enough space to build an ADU
No room to do so. Nothing could convince me to build a unit I would only consider housing unit for family members
How would we possibly fit an extra unit on our small lot and where is the water going to come from?????
Nothing would ever entice me to add an ADU to my Pebble Beach property.

Lower the cost of fees, lot coverage, water demand and red tape No
own property in another county but purchase in Carmel not affordable n/a
Waive or lower permit fees and improve the building permit process so it is quicker.

Not relevant
Change in Building Codes
Tax break
Not much as have considered.

The position of my house on the lot and the steepness of my backyard won't support an ADU
Currently have an ADU. Have rented it in the past.

I would not consider adding housing to my property. Parking is an issue as is noise and congestion.
a larger lot!
In 4,000 sq. ft and a 1600 sq. ft. hour, where would I put it and would the city allow my extra water rights?
more space
Would never do this the lots are already tiny and this would look horrible it would also eliminate trees which is no good
Significant tax credits
Not enough space
No room for an additional unit.
streamlined, affordable, planning and design services
No incentive would encourage me to add housing to my property. there is not enough space on our property to add an ADU I would be happy to convert my 250 sf garage to an ADU. It’s on the lot line so the city will have to give on that, and it’s my only off-street parking, so the city will have to give on that as well. Also, I’d need more water credits.

Attachment 1
Appendix H -- Stakeholder Survey 15 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 financial stimuli
Not possible. Lot already too small
Lot us too small
Nothing
nothing
Planning Commission objections to design elements they do not like. lower permit fees Already have an ADU on the property.

I am not at all interested.

My house already occupies most of the lot.

No - There is no viable space on our corner lot
Don't have the space for separate structure but might consider roommate if had the space A much bigger parcel of land so that the ADU structure did not impact my privacy or that of my neighbors. It would have to be in compliance with existing SFD zoning. It would have to have room for off street parking and room to create a lovely landscaped setting for the occupant.

Water available and space to put one. Tree in the way now.

My lot is too small to add an ADU
NA
Eliminate fees, fast track permitting, have the City maintain a renter registry so that recreation rentals are prohibited.

No space for anything
Make the permitting process easier. Fine citizens who weaponize archaic zoning laws for NIMBYism. Make being a NIMBY uncool.

Some way to positively prevent irresponsible people renting it. CA rental laws are so biased against the property owners it's nearly impossible to evict deadbeats or creeps.

Parking plan
Water allocation and change of building codes
N/A live outside of CBTS, but still in surrounding area.

Market rent
I don’t have room on my lot to add a unit
Not possible on our small lot
I would need financial assistance to do that.

Increase the size of the lot. Already built out to allowable size on lot.

Decreased red tape and incentives.

I wouldn’t do it. Too small.

Nothing
Reducing the county fees for permits and facilitate the programs to encourage ADUs.

Essentially incentivize efforts to do ADUs.
would depend on what kitchen facilities would qualify (we have a guest house but no room for another structure)
Not a property owner
Financial assistance to build an ADU
Attachment 1
Appendix H -- Stakeholder Survey 16 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Permit streamlining and financial assistance
I already have a legal subordinate unit. I may want to convert it to an ADU.

I wouldn't because I would have to build such a unit from scratch and the return of investment probably would be low, and the reduction in privacy and yard space.

Functional need arising internally
We would have to be allowed to cut down a large, healthy tree.

For the city to allow me to have different set backs, expedite approval process, maybe provide incentives for quick/economical building, and for the county to increase my water credits. I will be delighted to build an ADU in my property. Additionally, the city may consider making the size on the house bigger than the current 40% of the lot size. An option will be to expand to 50 or 60% of the lot.

Adding a kitchen to existing guest house (need water credits) NA
I own property in another county, but funding would be the primary requirement.

Reduced/eliminated planning and building fees. Real property tax assessment deferral.

More clarity on rules.

N/A
Have not considered it..mmm
Help with water restrictions, subsidy, low interest loan, clear regulations, reasonable standards and explanations for license and permits and building codes and inspection Low interest loan and property tax reduction incentive.

N/A
We would have no interest in doing this. Our home is already on a typical small lot. We have little to no backyard. There would be no parking for a tenant/tenants.

We have a gust house already
There is no room for that on my property.

Zoning changes, property tax breaks, neutral to positive cash flow model. na
Easier building laws and permit allocations.

Limitations on allowed max size of ADU
Question 15: “What effect would providing more housing units in Carmel-by-the-Sea have on local businesses?” See corresponding Figure 11.
“Affordable Housing” would not affect the businesses, because if people need help with housing costs, they cannot afford to support the local business. These people who need financial help with housing will probably add burden to public services such as police, schools, fire, paramedics, and infrastructure such as water and electrical.

Adverse affect since Carmel businesses wants to attract affluent visitors not workers in their own stores/restaurants
Affordable housing would not improve local business revenue Anything that hurts the livability here will hurt the businesses.

Carmel shops and restaurants are too expensive if on a low income Attachment 1
Appendix H -- Stakeholder Survey 17 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Crowds, parking, traffic, crime, pollution—air and noise Depends on the disposable income of the new residents.

Depends on the type of shops .. overall could be more customers if service business and affordable goods
Destroy the look and feel of Carmel by the Sea.

Even more congestion , traffic, lack of parking. Remember- let's not kill our Golden Goose.

Fewer customers. It's already hard to get to places due to lack of parking. Hills make it hard to walk with seniors and disabled and losing more spots to younger people would discriminate against aged and disabled
I am not sure, but can offer some thoughts. Residents in affordable housing will likely not be frequenting the tourist venues: the proliferating wine tasting rooms, high end clothing shops, art galleries, restaurants, etc. They will likely need different options that are not available in town. So either these are added (which means even more commercial activity paying low wages), or more people will be travelling to shop/eat out, etc in the surrounding areas. This implies that there are either even more cars on the roads or that mass transit will need to be enhanced so people can travel beyond town. Ideally, the local businesses would feel responsibility for making affordable housing available to the lower wage workers they hire, wherever possible. The idea that hotels would provide living quarters is a good one. Thought should also be put into reducing the number of business licenses in Careml by the Sea. As businesses move or close, these spaces could be made into housing. More service businesses simply means more lower paid workers who are unable to afford housing.

If below market, it would assist with employee housing and retention. increase in available workforce
Increased diversity; less traffic
It depends if the businesses provide some reasonably priced options It will be a traffic/parking nightmare. You can’t add 300+ Apartments and assume all those people are going to take the bus? The city spent more time actually keeping the city clean (and not rely on Carmel Cares) I think more people would frequent downtown CBTS.

It will compound the parking issues. PACT as now proposed: no time limit on parking and residents park free.

It would bring in more traffic and make the parking situation worse. This would drive away the tourists who are willing and able to spend money in the shops and restaurants here.

It would make parking even worse than it already is.

It would probably change the character of the town to some degree Less parking for visitors. Congestion
less tourists, less income
Like a lot of locals, other than Safeway, they wouldn't shop at local business Locals do not shop downtown, well except for the cheese shop.

Loss of parking spaces
loss of prestige and distinction -Carmel would no long be a worldwide magnet once the character and charm is destroyed by over development
Low income people will not shop in Carmel
maybe new residents but could they afford the shops and restaurant prices in Carmel? Attachment 1
Appendix H -- Stakeholder Survey 18 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 More clients
More congestion and less parking
More crowded, less appealing to shop
More customers, as long as the units are for permanent renters and not visitors.

More employees/employers and City employees living in Carmel will increase demand for services of local businesses. It will also allow city employees to engage with the community and be part of local activities at their backyards.

More housing likely means more illegal short term rentals and vacation rentals - so I suppose business would go up.

More potential employees.

More traffic and no place to park!
More traffic. Less parking.

More workers that could live near their work.

Most would become vacation units of some kind.

Of course more people theoretically would would help local business I doubt that the high end stores will see any increase from the new medium and low income residences. I doubt that many of the high end shops in town will see any increase in buisness from the new medium and low income
Offer housing opportunities of housing for people that also work in Carmel! Only more customers, if the new residents could afford to shop locally.

Overcrowding and more traffic.

Overcrowding of parking spaces for shoppers.

Parking would be important. More housing comes with more cars.

Simply more congestion
They would probably recognize a need to carry more generally affordable options for lowerpaid residents This will cause a detrimental impact on the desirability just look at San Francisco fewer customers
Traffic congestion. If this town was 100% occupied our neighborhoods and roads could not manage the modern day traffic with most owning 2-3 cars.

Ugly buildings. No parking. Loss of charm of Carmel
Very little as parking is already a problem.

Attachment 1
Appendix H -- Stakeholder Survey 19 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Question 16: “How does, or how would, living in Carmel-by-the-Sea benefit you? (Quality of life question)” Note: There is no corresponding figure for this question.

How does, or how would, living in Carmel-by-the-Sea benefit you? (Quality of life question) Financially and also scholastically.

Pretty incredible year round weather and ease of access to shops / services / restsurants.

Less traffic congestion would be a plus
394 units in this small area is ridiculous as the traffic and infrastructure not to mention water supply can’t handle it
Fresh air.

The physical benefits of walking the scenic pathway ir ti tien to town, scenic vistas, the architecture and trees are what we like best. We hope we can continue to live here. The expense is a huge sacrifice.

It’s a peaceful oasis from the busyness of our “regular” lives threatened by poorly designed and ridiculous government policies. The state owns most of the land in the state. They can and should be building affordable housing in less populous, not necessarily remote, locations of our state
Peace and quiet provided that the city doesn’t get more crowded.

Like the small scale community and peacefulness
N/A
Sense of community, cultural and out door events
Living in Carmel is a positive experience for the soul, whether to live or visit. Most people are fantastic. Nature, fresh air, and fairy tale esthetics are refreshing and inspiring. This is not a thriving metropolis by design and I appreciate that. There are different times for different places.

We live here and, once again, appreciate the small, unostentatious homes on small lots embedded in natural surroundings. Nature supersedes housing in Carmel. We appreciate our neighbors. We appreciate living on a street that does not have a lot of traffic, although this has increased. We appreciate being able to hike from our home in most directions and experience beauty.

Access to nature. Walkable town.

Carmel is my haven
Incredible schools, safe, beautiful place to raise my family What a beautiful place to live. I benefit by being so close to nature, knowing that there is a good school district. Glad I live near cities with more ex and social diversity and would like to see more here in Carmel.

We walk ‘into town’ everyday to support the local coffee shops and eat at least once a month at one of the restaurants. We rarely drive i to town unless we have an oversized package at the PO. I can tell you having lived here 25+ years we have watched it ‘slide’ like much of the rest of CA which was/is not only preventable, but sad.

Does not apply since I already live in Carmel-by-the-Sea. I am concerned that there is no work in Carmel requirement for those potential occupants of the new housing. Aren't we trying to eliminate the commute and the environmental impact of such traffic? I already live in Carmel-by-the-Sea and love it. If we add 349 units of affordable housing, there will be more traffic and overcrowding, which will diminish my property value. Please Attachment 1
Appendix H -- Stakeholder Survey 20 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 reject the state's misguided demands. Instead of wasting tax dollars to come up with a plan, we should be fighting the state with a lawsuit.

It's a great little community with a very low crime rate.

We have worked hard to be able to afford to live in this gem of a place. It is perfect the way it is. Affordable housing outside our tiny city would be my preference.

Beach walks and biking encourages my soul. Love the quiet. Value the Safety. greatly
Our current quality of life is excellent.

I live in Carmel because I can handle the weather, walking to town, close by groceries and medical facilities. I am old and cannot take care of too much anymore. I would hate to see town broken up by little ADU buildings where there used to be a pretty little flower gardens.

This town is already crowded. Whoever decided to break up town into 4000 square feet lots was not thinking.

Charming atmosphere… Beautiful views
In an earlier question, you asked what is attractive about living in Carmel - beauty of the landscape, the architecture and the urban forest - destroy that and you've destroyed Carmel Safe, clean, cool weather, golf, mountains, beach
love being able to walk most everywhere I go and not step over homeless on the sidewalks and have to deal with bay area type traffic
It's a peaceful city with a lot to do
We already live in Carmel-by-the-Sea and enjoy a nice quality of life just the way it is.

It is a tranquil, unique place to spend time. Cramming more housing into limited space will make it less appealing.

Living in downtown Carmel allows me to be a pedestrian, which increases my personal traffic through town. I am more likely to buy something when it catches my eye in the window. Also, walking like a pedestrian decreases my carbon foot print.

I already live here! Our quality of life is good -- walk daily, enjoy restaurants and events, and have developed a very nice community of friends. We like to live here and plan to do so for many years to come.

We would have loved to keep the parklets at all the restaurants since that made the city more friendly, encouraged walkability, and community. It gave the city a sense of vibrancy, excitement and camaraderie.

Already do - it is wonderful.

This has been my home for 23 years. I don’t want to have to leave.

I enjoy and treasure every moment of living in Carmel. Adding more housing is going to increase traffic, parking problems and congestion which are BIG negatives to the current quality of life here in Carmel. I suggest that a survey with the target audience be done to see who would be interested in living these proposed changes and could they even afford those! It’s a safe place.

There is abundant opportunity to enjoy the beach and MTNP.

Attachment 1
Appendix H -- Stakeholder Survey 21 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Walkable life and friendly people with nice weather.

It is a beautiful town the way it is. Don't over develop it. If you cant afford to live in CBTS then you can always visit it. I am 100% against the changes proposed! Walk to work, walk to eat, walk to beach! It’s obvious a quality of life issue.

Social activities, restaurants, clean air, beautiful nature, lovely architecture, walkable community, less stress.

It would be more crowded.

Reduce my quality. If moving into town from Carmel Woods with larger lots, ocean and forest views, space between houses, wildlife and a large garden and small house, I would feel cramped. When I grew up in Carmel, our house was small, but there were undeveloped lots between houses, so we had places to play and our neighbors weren't right next to us.

I live here now.

Dog friendly
Being close to Carmel Foundation for services allowing us to walk most places, & to shop, bank, eat out, go to the Sunset Center, the theatre etc.

The addition of so many units will be detrimental to the desirability of Carmel…..

I live here full time-adding additional housing is only going to decrease my quality of life as this village is not made for big city congestion.

Encouragement to walk to the beach and into town
Simple answer; I can live anywhere in the world I want to live and I choose Carmel for a myriad of reasons of which affordable housing is certainly not one! Carmel-by-the-Sea is special and it shouldn't be forced to provide affordable housing, it's a short commute to nearby towns that are more equipped to add housing.

Small town feel/friendliness; less worry about crime, drugs, vagrancy; strong pride in cleanliness, safety, livability of community; wonderful shops and eateries.

I would not live in a City that cratered to ridiculous demands from State government. If 349 units even begin to be sandwiched in Carmel- I move
CTBS is a very special place and it is no business of the government to change our community in any way. Our community is our decision, not up to the "State". We are not yet a communist county.

I like small town living.

If Carmel-by-the-Sea is required to build all these affordable units, the residential density will lower the quality of life and make it a much less desirable city for residents and tourists.

Safety
I like be able to walk everywhere, limited amount of noise pollution, access to events at the Sunset Center - and parking there for patrons.

Wonderful retreat. I appreciate the need to make it affordable for people who work there but do not ruin the charm of Carmel. Can these units be outside of the golden rectangle and be by the crossroads or somewhere else where there is space
Negative.

Sense of community.

It is relatively peaceful, but every holiday and weekend and special event bring hundreds or thousands of visitors. We don’t need to Manhattanize Carmel Great place to retire.

Attachment 1
Appendix H -- Stakeholder Survey 22 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Because every restaurant and business is within walking distance, we are active and healthy.

Walking around also results in more friends and that makes a better community.

Love it! Need more more condominiums
Presently living in Carmel offers a unique experience with a peaceful, healthy way of life.

I would be able to live closer to work and in the CUSD school district for my kids No commuting so more time spent with family.

More active neighborhoods. It would likely result in more traffic, noise and possibly a slight uptick in crime. However, the town has lost ~20% of it's full time population in the 20+ years I've liked here. It can grow by 1000 residents without much pain.

Great weather, small community, friendly residents.

I love the small town feel, clean air, and quiet.

I live in Carmel now
I lke living here.

The same as now, as many homes empty.

I live here and value every aspect of it's beauty, people, nature, charm etc.

Actively involved community
Enjoy hiking in the community and visiting the beach.

Excellent walking and running without having to drive. Quiet forested neighborhoods. Good stuff.

Best Quality of Life experience, lived here 70 years.

High quality of retired lifestyle
I love living here...the beauty of the beach and forest is incredible, and I love the small-town feel of the village and the fact that I can walk everywhere.

Lifestyle
I love easy access to forest, beach, Sunset Center, downtown Small town life, running into people I know, clean air, pretty surroundings, peace and quiet, community engagement activities.

Low stress environment, nature, low crime
Active lifestyle, great school district, amenities, etc.

Diversity of every kind is good for everyone
I live here full time. I love the quiet atmosphere outside of the downtown district and the charming homes.

I love the way Carmel by the Sea integrates city living with the natural environment.

Living in Carmel by the Sea is a wonderful experience. I chose to live here so i can walk the streets and get to know my neighbors. I wish there were more apartments in the village center and less parking lots. I would recommend having tourist parking at cross roads and provide free electric shuttles to Ocean Avenue and the beaches to cut down on single car traffic.

It would be able to walk or bike to work. I would also be an integral part of the community I serve.

I love living in Carmel. I am incredibly blessed to have a home here and there are wonderful benefits. Strong community connections, peaceful and tranquil lifestyle, safety and security, opportunities for leadership, close to downtown where I can walk, and much more. Great presentation, great work and thank you!
Attachment 1
Appendix H -- Stakeholder Survey 23 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 I live and work in Carmel-by-the-Sea, so I rarely drive my car during the week. I feel safe where I live; it is a quiet street. I have access to multiple great restaurants and other small businesses, and I can walk to the beach. My family and friends can stay with me when they come to visit, and we can all enjoy the City together.

Would enjoy greater diversity
Great school district for my kids, the beauty and charm of the area makes me happy Proximity to outdoor activities.
for affordable housing it would allow a senior artist like myself to create art here and sell it in the shops instead of having to live outside of town.

Living in Carmel would reduce my daily commute time by three hours Living in Carmel immerses me in natural beauty and allows me to walk rather than take my car for many errands and services. I wish we had a few more of these services in the village these days.

Daily walks to beach, fresh air, minimal traffic; do not see any congestion.

Access to natural resources is incredible.
closer proximity to ocean/beach
Dream location.
peaceful, clean, healthy living, quiet during the non-touristy times of the year.

Peaceful. Friendly. Beautiful.

We have built our lives here, and are deeply involved in the community.

Quality of life
I would live where I work and drive less or not need to drive at all Shorter commute, and being part of the community I work in.

Easy lifestyle
Allowing my family to be fully emersed with the community that they go to school in and work in. Currently having to commute from another city to be able to attend work and school doesn't allow for a well-rounded lifestyle. Providing housing in Carmel for the people who teach and support Carmel students/children, should be a big factor in this decision.

I grew up here, but without changes to the local real estate market I cannot foresee ever owning a home here. Being able to support my aging parents in the area and maintain my ties to the community mean a great deal to me.
would love to be closer to my job at Library and walk everywhere.

I lose two hours a day of my life to drive here, from Salinas, which is also barely affordable Closer to work
The daily way of life here has been greatly improved for me and my dogs. The ability to walk every where, rarely drive, and have a more active life while feeling safe is a dream.

Would be closer to work.

I would be closer to work and the Carmel community.

Living close to beautiful natural resources of ocean and forest- soul-sustaining. Opportunities for outdoor exercise.

Breathable air
More engagement with the community that sustains my employment, extremely high standard of living.

Attachment 1
Appendix H -- Stakeholder Survey 24 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Surrounded by my current age group and scenic beauty; Monterey Salinas Transit Bus #5 to my place of employment in Carmel by the Sea.

We could absorb these additional homes with no change of quality of life.

Quality would deteriorate if you cram extra housing into our limited space People are happy here. Happiness is good!
Clean air, low crime

FEWER PEOPLE ARE BETTER FOR THE ENVIRONMENT
Small town
It’s safe
I like it as it it. If you start stuffing hundreds of extra units into this town I might actually sell and leave.

We love it here and want to preserve it in its current state before it gets over built Bonding with community and nature
Great Quiet lifestyle
Quiet Lifestyle
I love living in a safe and small village that is easy to walk where ever I want to go. I rarely need to use my car here. Carmel is quiet and has a high quality of life, unlike Texas where I moved here from almost twenty years ago. I am very much against state control and unfunded mandates. Local control is where we need to concentrate our efforts. There is plenty of land a short drive from Carmel by-the-Sea that can easily accommodate the houses the state is mandating. I do not think it is fair that those who bought houses here under certain conditions such as view shed or single family ownership should have to now live where they would not have bought had they known of the development required by the state. beautiful surroundings
I live here - not looking forward to have this housing mandate from the state impacting our quality of life
It’s a nice, sleepy little town and I like the weather. I don’t patronize many local businesses because I don’t buy the sorts of things they sell. I do patronize some local restaurants, but my go-to places for dining out are mostly in PG and Monterey as they are more reasonably priced. It’s hard to compete with all the tourists who have deep pockets.

Can walk most places
I've traveled the world and can live anywhere. I choose here for its unique culture, weather and natural beauty. I would welcome more residents to share it with.

Fulfills a decades long dream to have a home in one of our favorite places Peace and quiet, proximity to beauty of the area
Access to CUSD, access to more open/transparent government, access to outdoor opportunities.

I enjoy the beautiful environment and community engagement.

Enjoy current QofL in Carmel
Vastly improved over city living. Very happy to be here full time. Do not lose the charm that is Carmel.

No change to current benefits.

Too expensive for what you get
Attachment 1
Appendix H -- Stakeholder Survey 25 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Initial Draft August 2023 Carmel is safe and close to my work.

Safety and being in a small community.

CBTS is a small and safe community with lots of culture and entertainment options.

Lower commute times, using less gas, less crime.

Tranquil, beautiful setting, safety and quiet
The feel of being safe. And being able to walk everywhere Peace of mind from safety
Clean air, can walk to the beach and to town. Local events and outings. Carmelites care about each other. Feel safe, not as safe as before.

Attachment 1
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
November 1, 2023
Brandon Swanson, Planning Director
Community Planning and Building Department
City of Carmel
P.O Box CC
Carmel-by-the-Sea, CA 93921
Dear Brandon Swanson:

RE: City of Carmel-by-the-Sea’s 6th Cycle (2023-2031) Draft Housing Element Thank you for submitting the City of Carmel-by-the-Sea’s draft housing element received for review on August 3, 2023, along with revisions that were received on October 17, 2023. Our review was facilitated by a conversation on October 10, 2023 with Marnie Waffle and Katherine Wallace. In addition, the California Department of Housing and Community Development (HCD) considered comments from David Kellogg and Brian Wilke, pursuant to Government Code section 65585, subdivision (c).

Pursuant to Government Code section 65585, HCD is reporting the results of its review.

The draft element addresses many statutory requirements; however, revisions will be necessary to substantially comply with State Housing Element Law (Gov. Code, § 65580 et seq). The enclosed Appendix describes the revisions needed to comply with State Housing Element Law.

Public participation in the development, adoption, and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate. Please be aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD.

For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if a local government fails to adopt a compliant housing element within 120 days of the statutory deadline (December 15, 2023), then any rezoning to make prior identified sites available or accommodate the regional housing needs allocation (RHNA) shall be completed no later than one year from the statutory deadline pursuant to Government Attachment 2
Brandon Swanson, Planning Director