Agenda packet — Carmel-by-the-Sea City Council, April 8, 2024 (part 2 of 5)

R-L-2. Allowed only on existing quasi-public use sites established prior to December 1, 1980, or added as an accessory use to such existing uses.

R-L-3. Limited to existing units established prior to January 1, 1967, and/or authorized by a use permit issued between 1967 and 1990. *Note: These provisions approved by voter referendum.

R-L-4. Limited to existing commercial spaces established prior to 1993 and occupied by commercial uses continuously since that time.

R-L-5. Limited to occupancy within a single-family residence.

R-L-6. Limited to permits approved prior to the adoption of Ordinance 2019-03.

R-L-7. Limited to transient rental units approved through the issuance of a conditional use permit as an incentive for the creation of new housing units. See CMC 17.14.040(W)(2)(b).

Commercial Districts Specific Limitations and Conditions C-L-1. Limited to advertising, consumer credit reporting, secretarial court reporting, equipment maintenance and repair, personnel supply services, and nonretail computer services and repair.

C-L-2. Allowed only as accessory use to gasoline stations and limited to a maximum of 300 square feet. No sales of alcohol are permitted. See CMC 17.14.040(D)(2) and (J)(2).

C-L-3. Any establishments with activities generating noise, odors, deliveries by large vehicles, high traffic by customers, or requiring large storage needs are not permitted.

C-L-4. Limited to offices for the following categories: operators of nonresidential buildings, apartment buildings, dwellings, real estate agents and managers, and title companies.

C-L-5. Limited to sites that are already developed with a single-family dwelling, or that were originally developed as, or used as, a single-family dwelling but have since been converted to another use. Existing single-family dwellings can be maintained, altered, repaired and/or redeveloped. R-1 district floor area ratio standards shall apply to these sites.

C-L-6. Subject to the same regulations as apply to other family residential dwellings in the same zone.

C-L-7. Limited to permits approved prior to the adoption of Ordinance 2019-03.

C-L-8. Limited to transient rental units approved through the issuance of a conditional use permit as an incentive for the creation of new housing units. See CMC 17.14.040(W)(2)(b).

Public and Quasi-Public Districts Specific Limitations and Conditions P-L-1: Limited to the use and maintenance of existing buildings for nonprofit organizations, governmental buildings and uses, and residential use.

P-L-2: Limited to facilities serving only park visitors and/or tenants of park buildings.

P-L-3: Limited to schools for theater arts.

P-L-4: Limited to workshops and classes connected with the arts.

P-L-5: Only as an accessory use, when in connection with any other authorized use.

Appendix B – Housing Constraints B-9 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Use Permits
The use permit (UP) (or conditional use permit (CUP)) requirement is implemented as an additional regulatory tool and adds extra regulations, review, and required findings, to a variety of development standards that affect multi-family development. The UP requirement for residential developments between 23 and 33 du/acre does not have specific findings creating uncertainty for developers of housing projects. Densities between 34 and 44 du/acre also require a UP and special findings are outlined in Municipal Code Section 17.64.190 (Residential Construction at Densities Between 33 and 44 Units Per Acre). Because the City does not have an inclusionary zoning ordinance, the UP findings are used as a tool to require affordable housing within this density range. For example, in the R-4 District, residential projects with densities between 33 and 44 du/acre must provide at least 20 percent of all units for lower-income households, 10 percent of all units for very low-income households, or 50 percent of all units for senior housing. In the CC, SC, and RC Districts, residential projects with densities between 33 and 44 du/acre are eligible for State Density Bonus Law as set forth in Government Code Section 65915 et seq.

Residential projects with densities between 45 and 88 du/acre are also subject to a UP and special findings that require the project to be 100 percent affordable to lower-income households.

Municipal Code Section 17.14.150 Building Height requires a use permit for additional underground floors used for parking vehicles, storage and mechanical equipment. The additional use permit requirement can affect how much parking can be accommodated which limits the number of units, particularly for smaller projects, and affects the financial feasibility of the proposed development.

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

Commercial Overnight Visitor Accommodation
Pursuant to Coastal Zone requirements, the City has recognized existing overnight visitor accommodation (hotel/motel/inn) as an important coastal visitor asset and economic base in the community. There are a number of older (some non-conforming) hotels/motels/inns in the R-1, CC, RC, and SC zoning districts, located in key areas of the City. These commercial establishments can be targeted for transition and the existing buildings rehabilitated converted to permanent multifamily residences.

In an effort to maintain a strong residential component within the City, the Municipal Code Section

17.56.060 includes numerical limits on the total number of hotel/motel/inn units; however, the numerical limits increase the value of the existing commercial units and act as a disincentive for Attachment 2
Appendix B – Housing Constraints B-10 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 older establishments to be refurbished into multi-family units. The limit also acts as a disincentive to add on-site employee housing because scarce square footage is more valuable as an overnight visitor accommodation use rather than a residential use that serves lower-income employees.

Enabling older overnight visitor accommodation commercial uses to relocate to more appropriate commercial sites while allowing the establishments to retain the current number of hotel/motel/inn rooms, would facilitate continued overnight tourism while diversify the housing stock by requiring the refurbishment of existing buildings to permanent rental housing. In order to encourage these properties to transition into permanent multi-family residences, and to retain the same number of existing overnight visitor accommodation rooms for coastal visitor access (as desired by the California Coastal Commission), the City will develop program 1.3.B to incentivize both the transfer of development rights of overnight visitor accommodations to other appropriate commercial sites while requiring the conversion of existing overnight visitor accommodation properties to permanent rental multi-family residences.

Additionally, the City has a number of overnight visitor accommodation properties that would greatly benefit from incorporating affordable on-site employee housing. These new rental permanent residential units would alleviate the current lack of housing options that many lower income employees that work at hotels/motels/inns in Carmel face. As an incentive to commercial overnight visitor accommodation property owners to provide on-site affordable employee housing, the City will offer an additional overnight accommodation room for every onsite housing unit created. This incentive will serve to increase affordable rental housing, offset the loss of revenues for the business owners, and maintain visitor-serving coastal access.

Overlay Zoning Districts
Overlay districts are zoning districts established by the City to carry out specific purposes. They are governed by a set of regulations that address specific subjects such as archaeologically significant resources or environmentally sensitive habitat areas. The City currently has overlay districts that address the following:
 Archeological significance;
 Parks;
 Beach and Riparian areas;
 Environmentally Sensitive Habitats;
 Annexed County Lots; and
 Downtown Conservation District.

Overlay districts can be constraints to development, or they can be used as a tool to encourage certain types of development. The existing overlays do not function as constraints to development.

Attachment 2
Appendix B – Housing Constraints B-11 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Development Standards
With the exception of building heights, development
standards in Carmel-by-the-Sea are typical for a small
residential community. As for building heights, the City limits building heights to two stories above ground and 30 feet or less, which can render higher allowable densities (up to 44 du/ac with affordable housing) unachievable.

The City has discussed the possibility of increasing height limits, but community resistance to increasing the height limit has been consistent and is primarily based on a
desire to protect the historic character of the downtown.

Some community members have suggested allowing
mezzanines as a third interior story, if it could be
accomplished without appearing as a three-story building.

The Zoning Code permits multi-family dwellings in all
commercial districts and existing underutilized commercial spaces can be repurposed for residential uses.

The Community and Cultural Center District (A-2) allows senior citizen housing (55+) as a permitted use in addition to uses that provide cultural and community activities associated with the arts, education and recreation; however, development standards are not specified for the A-2 district and design review is required. The lack of development standards adds uncertainty to the development process. Amending the A-2 zoning district with clear setbacks, height, and landscaping requirements will add clarity and remove a development constraint. The City of Carmel-by-the-Sea has included a new program in this 6th Cycle Housing Element to amend the A-2 District to include clear development standards as a means to encourage affordable senior housing.

Table B-3, Residential Development Standards, summarizes residential development standards in Carmel-by-the-Sea.

Density, Building Intensity, and Height
Density, building intensity or floor area ratio (FAR), and building height are established in the Land Use Element and implemented by the Municipal Code. The following details allowed densities, building intensity, and heights in all residential districts (R-1, R-4, CC, SC, and RC).

I would even venture to say – as an
architect – if we protect the character
of the village and if we do that well, we
will actually be able to create a
planning document that will more
than cover the 349 number...that’s my
professional opinion on what the
power of design can do without an iota
of sacrifice of the character of this
community. It’s a hope, it’s a belief,
and we just need to work towards it
together
November 17, 2022 Housing Ad Hoc
Committee Community Meeting Attendee
Attachment 2
Appendix B – Housing Constraints B-12 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table B-3 Residential Development Standards
Zoning Minimum Lot
Area (sq ft)
Setbacks
Maximum
Height1,2,3
Maximum
Floor Area
(sq ft)
Maximum Lot Coverage
or Density (R-4) Front (in feet) Minimum Side Yard
(in feet) Rear
Residential Districts
R-1 2,5001
4,000 15
Interior Street
Side
15 24 feet
2 stories
Less than 45
percent of the area
of the building site2
2,4003
22% of the base floor area
3 5
R-4 4,000
No setback.
5 – if across from R-4, RC;

7.5 across from R-1
No setback4, 5 N/A
No setback.
10 – if abutting
R-1 or R-4
26 feet
2 stories N/A 33 units/acre44 units/acre with density bonus Commercial Districts
CC N/A
No setback.
5 – if across from R-4, RC;

7.5 across from R-1
No setback4 N/A
No setback
10 – if abutting
R-1 or R-4
30 feet
2 stories
N/A1
One story – 95% of the site area
Two story – 135% of the site area
150% with 15% bonus
SC N/A
No setback.
5 – if across from R-4, RC;

7.5 across from R-1
No setback4 N/A
No setback
10 – if abutting
R-1 or R-4
30 feet
2 stories
N/A
One story – 95% of the site area
Two story – 135% of the site area
150% with 15% bonus
RC N/A
No setback.
5 – if across from R-4, RC;

7.5 across from R-1
No setback4 N/A
No setback
10 – if abutting
R-1 or R-4
26 feet
2 stories
N/A
One story – 70% of the site area
Two story – 80% of the site area
95% with 15% bonus
SOURCE: CMC Title 17 2023
NOTE: 1. Lots of record in existence on February 4, 1948.

2. Applies to sites less than 4,000 square feet.

3. The maximum potential floor area on a site is the sum of the base floor area plus any bonus floor area. The City uses a sliding scale to determine maximum floor area and site coverage.

4. If abutting R-4 or RC district a side yard setback of at least 5 feet along at least 50% of each side property line. The remaining 50% requires no setback unless the faces a public street. Any site abutting R-1 district requires a setback of five feet along entire side yard.

5. Buildings shall not be less than six feet from any other buildings on the same site Appendix B – Housing Constraints B-13 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Floor Area Ratio
Floor Area Ratio (FAR) expresses the ratio of building square footage to land square footage and allows for flexibility in design as long as other development standards (such as height and setbacks) are compliant. The following are floor area ratio standards according to square footage in the R-1 District.
 On sites less than 4,000 square feet, the maximum base floor area cannot not exceed 45 percent of the area of the building site;
 On sites between 4,000 and 10,000 square feet, the base floor area is restricted to less 45 percent of the area of the building site. The following formula applies to calculate the exact allowed base floor area: Building Site Area (0.45 - ((Sq. Ft. Over 4,000) (0.02))/1,000; and  On sites larger than 10,000 square feet, the base floor area is as stated in Table B-4. The maximum allowed floor area on any building site 22,000 square feet or larger cannot exceed 6,000 square feet.

Table B-4 R-1 District Base Floor Area and Bonus Floor Area Standards for Typical Lots Site Area Base Floor Area Maximum Bonus
Floor Area
Maximum Total
Floor Area*
4,000 1,800 600 2,400
5,000 2,150 717 2,867
6,000 2,460 820 3,280
7,000 2,730 910 3,640
8,000 2,960 987 3,947
9,000 3,150 1,050 4,200
10,000 3,300 1,100 4,400
11,000 3,450 1,150 4,600
12,000 3,600 1,200 4,800
13,000 3,735 1,245 4,980
14,000 3,870 1,290 4,160
15,000 4,005 1,335 5,340
16,000 4,140 1,380 5,520
17,000 4,255 1,418 5,673
18,000 4,370 1,457 5,827
19,000 4,485 1,495 5,980
SOURCE: City of Carmel-by-the-Sea Municipal Code Title 17 NOTES *The “maximum total floor area” equals the base floor area plus the bonus floor area. The numbers in this column would require half of the total floor area to be located in a basement.

Attachment 2
Appendix B – Housing Constraints B-14 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 In the Commercial Districts, the maximum floor area ratio is 10,000 square feet. The following are floor area ratio standards according to square footage in the Commercial Districts.  CC and SC Districts: the basic floor area ratio allowed for one-story buildings is 95 percent of the site area and for two-story buildings is 135 percent of the site area. In addition to the basic floor area ratio, two-story buildings may qualify for a maximum 15 percent bonus, which allows a floor area ratio up to 150 percent of the site area.
 RC District: the basic floor area ratio allowed for one-story buildings is 70 percent of the site area and for two-story buildings is 80 percent. In addition to the base floor area ratio, two story buildings may qualify for a bonus of up to 15 percent, which allows a floor area ratio up to 95 percent of the site area.

Additionally, the City allows a floor area bonus for affordable housing projects in all commercial districts and the R-4 District as follows:

A. Moderate Income. Up to five percent for projects if at least 25 percent of the units in a housing project are reserved for persons of moderate income as defined in Chapter 17.70 CMC;
B. Low Income. Up to 10 percent for projects if at least 20 percent of the units in a housing project are reserved for persons of low income as defined in Chapter 17.70 CMC; or C. Very Low Income. Up to 15 percent for projects if at least 10 percent of the units in a housing project are reserved for persons of very low income as defined in Chapter 17.70 CMC.

The City has utilized FAR to restrict the allowed building size of units as a means to retain a villagelike character and as an attempt to yield more affordable residential units. However, despite units being smaller in size, the cost of labor and land value outweighs the potential for affordability.

Restricting the building size also renders larger proportions of lots undevelopable. The City should consider increasing the allowed FAR to increase the developability of land.

Density
As shown in Table B-5, maximum base densities range from 0-22 dwelling units per acre, and when density bonuses are enabled, up to 88 dwelling units per acre. The City’s bonus density and density bonus allow higher densities in the Multi-Family (R-4) and Commercial Districts (CC, SC, and RC).

To enable residential development at higher densities, the City included Program 3.1.G, which establishes a minimum density of 33 dwelling units per acre for the R-4, SC, CC, and RC districts.

This intention is rooted in facilitating a higher yield of units to enable the development of affordable residential units.

Attachment 2
Appendix B – Housing Constraints B-15 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table B-5 Maximum Density Standards
Permitted Base Zoning Bonus Density Density Bonus
R-1 District 2-11 du/ac - -
R-4 District 0-33 du/ac* (up to 44 du/ac when affordable) Up to 44 du/ac - CC District 0-22 du/ac* (up to 88 du/ac when 100 percent affordable) - Up to 88 du/ac SC District 0-22 du/ac* (up to 88 du/ac when 100 percent affordable) - Up to 88 du/ac RC District 0-22 du/ac* (up to 88 du/ac when 100 percent affordable) - Up to 88 du/ac SOURCE: City of Carmel-by-the-Sea Municipal Code 17.08.040; 17.64.190 NOTES: *The City proposes Program 3.1.G to establish a minimum density of 33 dwelling units per acre to enable high densities in the multi-family and commercial districts.

The current maximum density standards for multifamily housing, which is permitted in the R-4, CC, SC, and RC Districts, poses a constraint to the development of affordable rental units due to the limited potential yield of units. This impacts the feasibility of affordable residential projects. To enable the development of affordable residential units at a higher yield, the City proposes to establish a minimum density of 33 dwelling units per acre to the base zoning for the R-4, CC, SC, and RC Districts. This minimum density will eliminate the underutilization of sites, resulting in a higher yield of residential units, which will increase the feasibility to develop affordable units.

Program 3.1.G establishes and monitors the amendment to the Municipal Code to establish the minimum density to the aforementioned Districts.

Lot Coverage
As shown above in Table B-5, maximum lot coverage varies according to zoning district. The R-1 District is the most restrictive in lot coverage, allowing a maximum of 22 percent of the base floor area. The R-4 District does not define lot coverage, rather the City utilizes a maximum density of up to 33 dwelling units per acre, or up to 44 dwelling units per acre when using a density bonus. The CC and SC Districts both allow a maximum lot coverage 95 percent of the site area for one-story buildings; 135 percent of the site area for two-story buildings; and 150 percent of the site area with a 15 percent bonus. The RC District allows a maximum lot coverage of 70 percent of the site area for one-story buildings; 80 percent of the site area for two-story buildings; and 95 percent of the site area with a 15 percent bonus.

The City’s development standards for lot coverage in the R-4 District poses a considerable constraint on the development of affordable residential units. However, the City proposes to establish a minimum density of 33 dwelling units per acre for the base zoning, to increase the density and allowed lot coverage on sites. As previously stated, establishing a minimum density will eliminate the underutilization of sites, resulting in a higher yield of residential units, which will increase the feasibility to develop affordable units. Program 3.1.G establishes and monitors the amendment to the Municipal Code to establish the minimum density to the aforementioned Districts.

Attachment 2
Appendix B – Housing Constraints B-16 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Height
As shown in Table B-6, maximum base height ranges from 18 to 30 feet and a maximum of two stories is allowed in the City’s residential and commercial districts. Maximum height, coupled with FAR, was specifically determined on a neighborhood basis to character and scale, either to preserve existing lower density neighborhoods or encourage medium-density development, such as in the Commercial District.

Table B-6 Maximum Height Standards
R-1
District
R-1-BR
District
R-1-PO
District
R-4
District RC*** CC*** SC***
Number of stories allowed 2 2 1* 2** 2 2 2
Roof height of first story
(ft) 18 18 18 - - - -
Roof height of second
story (ft) 24 18 24* 26 26 30 30
SOURCE: City of Carmel-by-the-Sea Municipal Code Title 17 NOTES: *See CMC 17.20.100, Required Planning Commission Review, and CMC 17.20.110, Review Criteria ** Block 37, Lots 3, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 20, 21, 22 and 24 within R-4 District require development approval by Planning Commission due to potential effects on significant coastal viewshed (CMC 17.12.050). *** Building sites which face, abut or adjoin any property in the R-1 district shall be limited to a height of 24 feet (CMC 17.14.150).

The R-1 District permits a maximum height of 24 feet. The R-1 Park Overlay District has specific development standards for two story developments. The Planning Commission must make the following required findings for approval:

1. That due to the topography of the site relative to the adjoining park or open space land, the proposed building would not exceed the height or bulk of an 18-foot one-story structure built on a site at the same grade as the adjoining park or that topography and height are irrelevant because of the location of the building on the site avoids view of the buildings from the park; and

2. That those portions of the building visible from the park will exhibit a human scale and residential character through the use of simple building forms and natural materials that will not detract from the enjoyment of the park or open space by the public.

These required findings have not been a constraint to development within the City.

The R-1 Beach and Riparian Overlay District has the lowest maximum height standard at 18 feet.

This Overlay District serves to provide review standards applicable to public and private property development located near public beach lands to ensure proposed development is compatible with the City’s coastal resources and the State’s Coastal Act (CMC 17.20.120).

The R-4 District permits a maximum height of 26 feet. Specific requirements pertaining to viewsheds may apply to new developments in the R-4 District (CMC 17.12.050). This is due to the Attachment 2
Appendix B – Housing Constraints B-17 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 City’s proximity to the coast and areas designated with significant coastal views. Development approval by the Planning Commission is required if development is located in Block 37, including Lots 3, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 20, 21, 22, and 24 (CMC 17.12.050). The review process includes the following finding:
 No structure shall be approved for construction and no vegetation shall be planted or maintained within the viewshed at a height that exceeds the 350-foot contour elevation as referenced on the topographic survey dated June 1983 by Clayton B. Neill Jr. (W.O. #6415) (CMC 17.12.050).

The review process and required findings are minimal and developed in accordance with the Local Coastal Program. To ensure height allowance does not impede residential development in the R-4 District in the future, the City should evaluate the impacts of increasing the height allowance.

Currently, the Municipal Code does not pose an undue constraint to the development of multifamily residential units.

The Commercial District (RC, CC, SC) permits a maximum height of 30 feet. All newly constructed second story floor area, including area in new buildings, remodeled buildings and replacement, rebuilt or reconstructed buildings, shall be occupied by residential dwellings only and shall not be used for any commercial land use (CMC 17.14.050F). This requirement for second story development in the Commercial District has resulted in recent residential development and conversations with interested property owners, as many properties within the Commercial District are in need of remodeling. Therefore, the Municipal Code does not pose an undue constraint on residential development in the Commercial District.

Open Space Courtyards and Intra-Block Walkways
The City’s development standards related to open space courtyards and intra-block walkways have been developed to conserve the City’s unique charm and design character. As a result, the City has established regulatory processes for the construction of new and alterations to existing courtyards and intra-block walkways. Courtyards and intra-block walkways are permitted in the Commercial District (CC, SC, RC).

Courtyards are defined as an open space on private property that is linked to an adjoining sidewalk or walkway in such a manner as to encourage public access. Courtyards are required to be enclosed on at least two sides by buildings and must remain open to the sky. The City allows a floor area bonus for courtyards with a minimum width of 20 feet and a minimum area of 400 square feet.

Intra-block walkways are defined as publicly accessible ground level pedestrian paths providing a connecting route between two or more different streets around a block. The City allows a floor area bonus for intra-block walkways with a minimum width of four feet.

Attachment 2
Appendix B – Housing Constraints B-18 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 All proposals to alter the size, location or configuration of a courtyard or intra-block walkway require review by the Planning Commission. Generally, such changes are approved only if the Commission finds that the proposed change would be an improvement over existing conditions such as improving public access, allowing for creation of new or better link with courtyards or walkways nearby or eliminating a safety hazard. Existing courtyards and intra-block walkways not to be removed. This review process includes a single hearing.

The City’s current development standards for courtyards and intra-block walkways may pose some level of constraint to the development of affordable residential units based on the requirement of Planning Commission review. However, with new construction, the development of courtyards and intra-block walkways will likely improve existing conditions and therefore be approved with ease.

Parking Requirements
The City’s parking requirements are generally in line with typical parking requirements. In the R-1 District, one (1) on-site parking space per dwelling must be provided on sites of 8,000 square feet or less in area and two (2) on-site parking spaces per dwelling on sites larger than 8,000 square feet in area. One (1) parking space must also be provided for each guesthouse. (CMC 17.10.030(F)(1)).

Under the current Municipal Code, R-1 zone sites with Class II accessory dwelling units (accessory dwelling units that are legal nonconforming units that were established prior to April 5, 1988) are required to provide a minimum of one (1) parking space on-site at the time of approval. Upon enlargement or improvement of a Class II unit, one (1) parking space each for the primary dwelling on the site and for the accessory dwelling unit are required. Improvements to accessory dwelling units are allowed even if one or both parking spaces encroaches into a setback. Accessory dwelling units built after 1988, or that were improved, are required to provide one parking space behind all setbacks for the accessory dwelling unit and are required to comply with all parking requirements established in Chapter 17.38 CMC, Off-Street Parking Requirements, for other development on the site.

The City’s ADU ordinance was last updated in 2017 (Ord. 2017-10 § 1 (Exh. A), 2017). The City is in the process of updating its ADU Ordinance to incorporate state laws that have expanded since 2017, and to clarify the ADU permitting process for property owners. The City intends to remove all parking requirements for ADUs in the updated ADU Ordinance.

Table B-7, summarizes off-street parking requirements as shown in Table A of CMC 17.38.020, for all uses, projects, developments and redevelopments; note that accessory dwelling units are not included in Table A of CMC 17.38.020 but are included in Table B-7 below. The parking requirements outlined in Table B-7 fully satisfy parking requirements for individual projects.

Attachment 2
Appendix B – Housing Constraints B-19 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table B-7 Minimum Off-Street Parking Requirements
Land Use Basis for Requirement Land Use District Parking Factors CC SC RC R4
Permanent Residential Use Spaces per Dwelling Unit 1 1 1.5 1.5 Accessory Dwelling Units Spaces per Dwelling Unit 0 0 0 0 Affordable Housing for
Moderate-, Low- or Very
Low-Income
Spaces per Dwelling Unit ½ ½ ½ ½
Senior Housing, Cooperative
Housing or Group Care
Facilities
Spaces per Dwelling Unit 1/3 1/3 1/3 1/3
Guest Spaces per Each Four
Full Units 1 1 1 1
Nursing Home or Other
Resident Care Facility
Spaces per Patient or
Resident N/A 1/3 1/3 1/3
Commercial Retail or
Service Uses Not Otherwise
Specified in This Table
Spaces per 600 Square Feet
of Commercial Floor Area or
per Business/Shop Space,
whichever is Greater
1 1 1 1
SIC 701: Hotels and Motels Spaces per Rental Unit,
Including Manager’s Unit 1 1 1 1
SOURCE: CMC 17.38.020(C) Table A: Minimum Parking Requirements NOTE: The City follows State ADU law. When an ADU is created through the conversion of a garage or carport, replacement of the off-street parking space(s) are not required. Additionally, because parking is not required to be provided for ADUs located within one half-mile walking distance of public transit, ADUs in Carmel-by-the-Sea do not require parking.

New projects or developments shall only be allowed when meeting all parking requirements of this chapter and the requirements of any conditional use permit, subdivision approval or specific plan applicable to the property. Proposed uses within existing buildings may replace existing uses as long as any existing parking deficiencies on the property are not increased by the replacement. Proposed additions of floor area, new shops or dwelling units, or other similar changes in land use resulting in a net increase in parking requirements, as set forth in this chapter, shall provide all required parking generated by the new activities on the site. Parking can be provided on-site, off-site, or through payment of in-lieu fees.

Parking costs contribute significantly to the cost of development in Carmel-by-the-Sea and this flexibility often makes affordable housing more feasible. The City has adopted a reduced parking requirement from one space to one-half space per dwelling unit for developments that include affordable housing (Program 1.1.C, see Chapter 2). This program also establishes waived parking requirements for apartments in the CC District and reduced parking standards for senior housing developments. Program 3.1.E establishes reduced parking requirements for affordable residential development, including waiving in-lieu fees for affordable units. As a result of these concessions, potential constraints to development associated with existing parking standards will be reduced.

Attachment 2
Appendix B – Housing Constraints B-20 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Objective Design and Development Standards
The City currently lacks a strictly objective set of design guidelines. Detailed design guidelines for the R-1 District and high-level design guidelines for commercial zones are presently in place; however, the current design guidelines include a mix of objective and subjective criteria. While the City’s existing R-1 design guidelines are being updated this year, the City does not currently have plans to develop a set of strictly objective standards for multi-family or mixed-use projects.

The lack of “Objective Design Standards” currently poses a constraint to residential development.

Guidelines that are subjective, or zoning districts that lack clear development standards, increase uncertainty and risk for housing developers. Objective Design Standards provide a measure of clarity that proposed developments will be measured against and provide the community with assurance that developments will conform with measurable objective standards. The City proposes to develop objective design standards for mixed-use and multi-family residential projects that include affordable housing.

Additionally, the City is proposing to amend the A-2 zoning district which encompasses the Sunset Center, a city-owned property with future housing development potential to establish clear setbacks, height, and objective design standards. This action will add clarity and remove any potential development constraints.

Zoning for a Variety of Housing
California Housing Element Law requires the housing element to provide for a variety of housing types including multi-family rental housing, factory-built housing, mobile homes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing (Government Code Section 65583 and 65583.2). Providing development opportunities for a variety of housing types promotes diversity in housing price, style, and size, and contributes to neighborhood stability by offering more affordable housing and accommodating a diverse income mix. Table B-7 (above) shows the housing types permitted in Carmel-by-the-Sea.

Single-Family Dwelling Units
A single-family dwelling is defined as any building containing or more habitable rooms with facilities for living, sleeping, cooking, and eating and containing no more than one kitchen (CMC 17.70).

Single-family dwelling units are permitted in all residential districts (R-1 and R-4); conditionally permitted in commercial zones (CC, SC, and RC) and public and quasi-public Districts.

Multifamily Dwelling Units
A multifamily dwelling is defined as a building or group of buildings on a single building site that, in whole or in part, is designed for, or occupied by, members of two or more families dwelling independently of each other in separate areas or units.

Attachment 2
Appendix B – Housing Constraints B-21 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Multifamily and duplex housing units constitute approximately 13 percent of Carmel’s housing stock. Multifamily dwelling units between 0-22 dwelling units per acre are permitted in the R-4, CC, SC, and RC Districts. Multifamily dwelling units between 22-44 dwelling units per acre are conditionally allowed in the R-4 District, and up to 88 dwelling units per acre is conditionally allowed in the CC, SC, and RC Districts.

The conditional use permit (CUP) for residential developments greater than 22 dwelling units per acre is a development constraint to higher density development. Site design review is required for multifamily projects and the CUP process adds very limited value to the review process for projects of this size and scale. In order to lessen this regulatory constraint, the City will amend the Code to eliminate unnecessary use permits (Program 1.4.A, see Chapter 2).

Accessory Dwelling Units (ADUs)
An accessory dwelling unit (or ADU) is defined as an attached or detached residential dwelling which provides complete independent living facilities for one or more persons, including permanent provisions for living, sleeping, eating, cooking, and sanitation, which is located on the same parcel as a single-family dwelling (CMC 17.68.030). Based on their relatively small size, and because they do not require paying for land or major new infrastructure, ADUs and Junior ADUs (JADU) are considered affordable by design. ADUs can provide affordable housing options for family members, seniors, students, in-home health care providers, and other small household types. ADUs can also be useful to generate additional rental income for the homeowner, making homeownership more financially feasible. Additionally, the City has a high rate of second home (vacation) ownership.

Encouraging ADUs and JADUs may be appealing to second home owners because ADUs will provide a higher level of security to the property if there is a full-time resident, and will add an income stream to a property that lies vacant for a high proportion of the year. Most importantly, ADUs and JADUs can provide much-needed affordable smaller housing units.

The City’s ADU ordinance was last updated in 2017 (Ord. 2017-10 § 1 (Exh. A), 2017). Carmel-bythe-Sea is currently following the requirements of State law in the review and approval of ADUs and JADUs. The City is in the process of updating its ADU Ordinance to incorporate state laws that have expanded since 2017, and to clarify the ADU permitting process for property owners.

In recent years, the California Legislature has passed a series of bills aimed at encouraging singlefamily homeowners to add ADUs to their property by requiring local jurisdictions to adopt regulations to facilitate their production and streamline their approval. The State passed legislation in 2017, 2019, 2020, and 2021 to further assist and support the development of ADUs, including By Right approval for units less than 800 square feet. ADUs are also permitted in commercial structures per state law.

Attachment 2
Appendix B – Housing Constraints B-22 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 The City permits one guesthouse on sites of 6,000 square feet or greater upon approval of a use permit. Guesthouses shall contain no food preparation facilities of any kind, but are permitted to have a bathroom with a toilet, sink and bathing facility. A guesthouse on any building site may be converted to an accessory dwelling unit, generally requiring the permitting of kitchen sink and facilities. Converting existing guesthouses to fully functional ADUs, or JADUs, represents a costeffective method to increase the City’s housing stock, requiring only a building permit. These opportunities could be strong candidates for prioritization of the City’s limited water distribution.

The City is also exploring the development of standardized pre-approved ADU plans. Standardized plans can eliminate the costs of designing a custom ADU, and assures property owners the unit type and size is already approved by the City. Pre-approved plans can also make construction more affordable if the designs are using materials that are easily sourced and standard-sized.

The City of Carmel-by-the-Sea has included Program 1.3.C to establish and monitor the amendment of its Municipal Code to be consistent with ADU and JADU state law, and develop standardized ADU plans (see Chapter 2).

Manufactured Housing / Mobile Homes
State law requires manufactured homes be permitted equally anywhere that single-family homes are permitted. Mobile homes are an affordable homeownership for farmworkers and other very low-, low-, and moderate-income households.

There are no mobile home parks located in Carmel-by-the-Sea. The City permits mobile homes on a permanent foundation as a single-family residential use, subject only to the design review requirements as any other single-family residential use in the same zone pursuant to state law California Government Code 65852.3. Such housing is subject to the same development standards and design review criteria as traditional forms of housing construction. The City has included Program 1.3.G to establish and monitor the amendment of the Municipal Code to clarify this type of housing as a permitted use in the R-1 District.

Group Homes
The Zoning Code defines group residential as “Shared living quarters without separate kitchens or bathrooms for each room or unit, including boardinghouses, dormitories, and private residential clubs, but excluding guesthouses.” As described above, state-licensed group homes are permitted under the regulations for Community Care Facilities and Residential Care Facilities. Unlicensed group homes are not currently identified as a permitted use in any zoning district.

The City has not identified any zoning or other land-use regulations that could discriminate against persons with disabilities or impede the availability of such housing for these individuals. Examples of the ways in which the City facilitates housing for persons with disabilities through its regulatory and permitting procedures are:

Attachment 2
Appendix B – Housing Constraints B-23 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024  As discussed above, the City Zoning Code allows residential care facilities for six or fewer persons subject to the same standards and procedures as apply to other residential dwellings of the same type in the same zone;
 The City has also adopted reduced parking requirements (0.33-space per unit or bed) for Senior Housing, Cooperative Housing, Group Care Facilities, Nursing Homes and Other Residential Care Facilities. Retrofitting of dwellings to meet the needs of persons with disabilities is also an eligible activity under the City’s Housing Rehabilitation Program. Construction and rehabilitation activities are also subject to the Federal Americans with Disabilities Act requirements and the City is active in promoting ADA compliance; and
 The City defines family as “an individual or two or more persons living together as a single nonprofit housekeeping unit and sharing common living, sleeping, cooking, and eating facilities,” which is consistent with state law.

Single-Room Occupancy (SRO) Units
Single room occupancy (SRO) housing are one-room units intended for occupancy by a single individual. It is distinct from a studio or efficiency unit, in that a studio is a one-room unit that must contain a kitchen and bathroom. Although SRO units are not required to have a kitchen or bathroom, many SROs have one or the other.

The City’s Zoning Code does not explicitly define single room occupancy housing, although CMC

17.08.050(F) allows guesthouses, studios, and multi-family units as small as 400 square feet. The Code also requires that all multi-family projects of three or more units include a mix of unit sizes, and at least 25 percent of all units are required to be 400 to 650 square feet in size. The City has included Program 3.3.D to establish and monitor the amendment of the Municipal Code to codify SROs.

Transitional and Supportive Housing
Transitional housing is generally defined as a facility that provides shelter for homeless individuals, and generally involves integration with other social services and counseling programs to assist in the transition of self-sufficiency through the acquisition of permanent income and housing. Transitional housing is temporary housing (generally six months to two years) for a homeless individual or family who is transitioning to permanent housing. This housing can take several forms, including group housing or multi-family units, and often includes a supportive services component to allow individuals to gain necessary life skills in support of independent living. There are no known transitional housing facilities in the City.

Supportive housing is generally defined as permanent, affordable housing with on-site services that help residents transition into stable, more productive lives. Services may include childcare, afterschool tutoring, career counseling, etc.

Attachment 2
Appendix B – Housing Constraints B-24 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 The City’s Municipal Code permits transitional and supportive housing By Right in all districts that permit residential uses including the CC, SC, RC and R-4 Districts, regardless of the number of persons the facility serves compliant with SB 2 passed in 2007. The City has included Program 3.3.A to establish and monitor the amendment of the Municipal Code to further clarify transitional and supportive housing in the R-1 district as a permitted use.

Emergency Shelters
Emergency shelters are generally defined as a facility which provides immediate short-term housing for homeless individuals.

Emergency shelters for the homeless is defined as a residential facility, lodging house, or dwelling, where no rent is paid, that provides temporary accommodation to homeless persons and/or families. Pursuant to state law (Senate Bill (SB) 2), jurisdictions with an unmet need for emergency shelters are required to identify a zone(s) where emergency shelters will be allowed as a permitted use without a conditional use permit or other discretionary permit. The identified zone must have sufficient capacity to accommodate the shelter need, and at a minimum provide capacity for at least one year-round shelter. Permit processing, development and management standards for emergency shelters must be objective and facilitate the development of, or conversion to, emergency shelters.

There are no emergency shelters or homeless services located in the City. However, the Zoning Code allows siting of emergency shelters as community social service facilities, which are defined in CMC 17.68 as “Any noncommercial housing facility, such as homeless shelters or emergency shelters, which may also provide meals, showers, and/or laundry facilities. Specialized programs and services related to the needs of the residents may also be provided. This classification excludes transitional housing facilities that provide long-term living accommodations.” Community social service facilities are permitted By Right in the CC, SC, and RC districts (CMC 17.14.030, Schedule II-B) as well as with a CUP in the R-1 and R-4 districts (CMC 17.08.040, Schedule II-1) and A-3 District (CMC 17.18.070, Schedule II-D). Residential uses are permitted in all of these Districts.

In addition, shelters for families and single women with children are permitted at all churches in the community as a part of their social outreach functions. Religious facilities are conditionally permitted in the R-1 district (only on existing quasi-public use sites established prior to December 1, 1980, or added as an accessory use to such existing uses) and allowed with a conditional use permit (CUP) in the RC district.

AB 2339 passed in 2022, expands the definition of emergency shelters to include low barrier navigation centers and bridge housing. AB 2339 also requires that the zone(s) permitting emergency shelters by-right be zones that are also suitable for residential uses.

As described in Appendix A – Housing Needs & Fair Housing Report, the 2022 Monterey Homeless Count and Survey Comprehensive Report prepared by Applied Survey Research estimated there was only one transient resident in the City as of 2022 who is presently being sheltered at a local religious Attachment 2
Appendix B – Housing Constraints B-25 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 facility. AB 2339 provides a general guidance of 200 square feet per person. A site area of approximately 2,000 square feet (0.04 acres) would be sufficient to house up to 10 people, and therefore accommodate the City’s homeless population of one person. Overall, a total of 39-acres in the City are zoned for commercial uses (CC, SC, and RC). As later shown in Appendix C – Vacant and Available Sites, the Sites Inventory identifies approximately 3.15 acres of underutilized CC, SC, and RC sites in the Commercial District. Specifically, 12 of these sites are larger than 0.04 acres, which would be appropriate for a small sized shelter facility and adequate to accommodate the City’s one unsheltered homeless resident, and up to a maximum of 10 people.

New shelters are often installed through adaptive reuse of existing buildings rather than through new construction due to costs and funding limitations. The CC, SC, and RC zones contain older commercial uses that may be renovated for other purposes such as emergency shelters. Recently, the City has seen an uptick in renovations and second flood residential additions in the Commercial District. The CC, SC, and RC sites are centrally located along major transportation routes, and therefore have access to public transportation and services in the community, including faith-based organizations that offer assistance to the needy.

To clearly identify emergency shelters as a permitted use in the CC, SC, and RC districts (CMC

17.14.030), the City has included Program 1.3.J to establish and monitor an amendment to the Municipal Code to define emergency shelters in compliance with AB 2339 Statutes of 2022, and to clearly state they are a permitted use by-right, requiring no discretionary review in the CC, SC, and RC commercial districts.

Low Barrier Navigation Centers
Assembly Bill (AB) 101, adopted in 2019, requires approval by-right of low barrier navigation centers that meet the requirements of state law. A “Low Barrier Navigation Center” is a housing first, low-barrier, service-enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. If the City receives applications for these uses, it will process them as required by state law. Program 3.3.B has been included in the element to develop by-right procedures for processing low-barrier navigation centers.

Community Care Facilities
To maintain compliance with the Lanterman Developmental Disabilities Services Act (Lanterman Act), the City currently permits small licensed residential or community care facilities serving six or fewer individuals in all residential zoning districts By Right and licensed facilities serving seven or more individuals in all residential zoning districts with approval of a Conditional Use Permit (CUP).

Larger community care facilities (greater than six (6) persons) may be required to meet certain conditions, including restrictions on hours of operation, security, loading requirements, and Attachment 2
Appendix B – Housing Constraints B-26 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 management. These conditions are comparable to all similar uses within the designated zoning district and would not impose constraints to the development of care facilities. The City will amend the Municipal Code to address unlicensed residential care facilities with seven (7) or more persons.

Senior Housing
As previously noted, several zoning districts within the City already permit and accommodate for senior housing. The A-2 zoning district (Cultural and Community District, i.e., the Sunset Center) and the A-3 zoning district (Senior Citizen Facility District) permits by-right housing for seniors. A program is included to address the lack of development standards in the A-2 zone in order to provide greater clarity and certainty to guide and future development design.

Constraints for People with Disabilities
Both the Federal Fair Housing Act and the California Fair Employment and Housing Act impose an affirmative duty on local governments to make reasonable accommodations (i.e., modifications or exceptions) in their zoning and other land use regulations when such accommodations may be necessary to afford disabled persons an equal opportunity to use and enjoy a dwelling. For example, it may be a reasonable accommodation to allow covered ramps in the setbacks of properties that have already been developed to accommodate residents with mobility impairments. The City adopted a reasonable accommodation policy (City Council Policy C11-01) in July 2011. This policy provides a reasonable accommodation in the land use and zoning context to ensure equal access to housing and facilitate the development of housing for individuals with disabilities. The policy provides individuals with disabilities or developers of housing for people with disabilities flexibility in the application of land use, zoning and building regulations, policies, practices and procedures.

Since 2015, the City has approved seven applications for reasonable accommodations ranging from allowing a pig as a companion animal to a person with a disability, additional site coverage for pathways and driveways, an exterior wheelchair lift, and the provision of a walk-in shower in a detached artist studio. The following findings have not been a constraint to accommodating requests for exceptions to land use, zoning, and building regulations, policies, practices, or procedures.

The City's reasonable accommodation policy contains the following five required findings:

1. That the housing, which is the subject of the request for reasonable accommodation, will be used by an individual with disabilities protected under fair housing laws; and

2. That the requested accommodation is necessary to make housing available to an individual with disabilities protected under the fair housing laws and cannot reasonably be accomplished without special accommodations; and

3. That the requested accommodation will not impose an undue financial or administrative burden on the City;
Attachment 2
Appendix B – Housing Constraints B-27 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024

4. That the requested accommodation will not require a fundamental alteration in the nature of the City's land use, zoning, building or Local Coastal Program; and

5. That the requested accommodation will not result in a significant and unavoidable negative impact on adjacent uses or structures.

The findings requirement, “that the requested accommodation will not result in a significant and unavoidable negative impact on adjacent uses or structures” is a discretionary standard that could impose constraints on improvements to make housing accessible to persons with disabilities. To eliminate subjectivity in the review of requests for reasonable accommodations, the City will amend the Municipal Code to remove the findings requirement for requested accommodations stating, “the requested accommodation will not result in a significant and unavoidable negative impact on adjacent uses or structures.” Program 3.2.A will establish and monitor these amendments to the City’s Municipal Code.

Requests for reasonable accommodation are typically reviewed by the Director of Community Planning and Building. However, if the approval does not require review by a City Board, Commission, or Council, the Director may refer the request to the Planning Commission. As set forth in CMC Chapter 17.54, any decision to approve, deny, or conditionally approve any permit made by the Director, City Forester, Planning Commission, or Historic Resources Board may be appealed by any aggrieved party. However, if the final reviewing authority is the City Council, the decision shall be final.

Community Care Facilities
The City currently permits community care facilities in several zoning districts. Community care facilities refers to facilities providing non-medical care and supervision under license from the California Department of Social Services. This classification excludes hospitals, residential care facilities, family day care homes, day care centers, and transitional housing. Community care facilities are permitted in the CC, SC, and RC districts as well as by conditional use permit in the R-4 district.

To encourage the development of community care facilities, the City has included Program 1.4.A to establish and monitor the elimination of use permit requirements for licensed community care facilities of seven or more persons (see Chapter 2).

Residential Care Facilities
Residential care facilities include facilities that are licensed by the State of California to provide living accommodations and 24-hour, primarily non-medical care and supervision for persons in need of personal services, supervision, protection, or assistance. Living accommodations are shared living quarters with or without separate kitchens or bathrooms for each room or unit. This classification includes facilities that are operated for profit as well as those operated by public or nonprofit institutions.

Attachment 2
Appendix B – Housing Constraints B-28 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 The City defines Residential Care Facilities according to size or age as follows:
 Residential Care, General. A residential care facility providing 24-hour nonmedical care for more than six persons in need of personal services, supervision, protection, or assistance. This classification includes hospices, board and care homes, and similar establishments that are licensed by the State of California. These types of facilities are conditionally permitted in the SC and RC Districts.
 Residential Care, Limited. A residential care facility providing 24-hour nonmedical care for six or fewer persons in need of personal services, supervision, protection, or assistance essential for sustaining the activities of daily living. This classification includes only those facilities licensed for residential care by the State of California. These types of facilities are subject to the same regulations as applied to other family residential dwellings in the CC, SC, and RC Districts. In the R-1 District, they are permitted as single-family homes. In the R-4 District, they are permitted by-right with no restrictions.
 Residential Care, Senior. A residential care facility providing 24-hour medical or nonmedical care for more than six persons 60 years of age or older in need of personal services, supervision, protection, or assistance for sustaining the activities of daily living. This classification includes nursing homes for the elderly, life care or continuing care homes, and similar facilities licensed for residential care by the State of California. These types of facilities are conditionally permitted in the SC, RC, and R-4 Districts.

The following include general findings required for all conditional use permits:

1. That the proposed use will not be in conflict with the City’s General Plan;

2. That the proposed use will comply with all zoning standards applicable to the use and zoning district;

3. That granting the use permit will not set a precedent for the approval of similar uses whose incremental effect will be detrimental to the City, or will be in conflict with the General Plan;

4. That the proposed use will not make excessive demands on the provision of public services, including water supply, sewer capacity, energy supply, communication facilities, police protection, and fire protection;

5. That the proposed use will not be injurious to public health, safety or welfare;

6. That the proposed use will be compatible with surrounding land uses and will not conflict with the purpose established for the district within which it will be located; and

7. That the proposed use will not generate adverse impacts affecting health, safety, or welfare of neighboring properties or uses.

Attachment 2
Appendix B – Housing Constraints B-29 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 In addition to the general findings for all use permits listed above, use permits for commercial uses also require all of the following findings:

1. That allowing the proposed use will not conflict with the City’s goal of achieving and maintaining a balanced mix of uses that serve the needs of both local and nonlocal populations;

2. That proposed use will provide adequate ingress and egress to and from the proposed location; and

3. That the capacity of surrounding streets is adequate to serve the automobile and delivery truck traffic generated by the proposed use. (Ord. 2004-02 § 1, 2004; Ord. 2004-01 § 1, 2004).

The review process for a CUP in the Commercial District includes one hearing of the Planning Commission. The required findings for a CUP in the Commercial District include a total of nine (9) required findings that the Planning Commission must make to determine eligibility. The required findings are objective and do not pose a barrier to the development of licensed residential facilities.

Overall, the City permits licensed Residential Care Facilities in accordance with the requirements of State Law and does not pose constraints to the development of Residential Care Facilities.

Short-Term Rentals
In order to preserve Carmel-by-the-Sea’s residential character, no home or accessory dwelling unit may be rented for less than 30 consecutive days in a residential zoning district. This current restriction is intended to ensure that residential units are available for full-time residential use. The City has a high number of motels and hotels to service the tourism industry and transient guests.

Employee Housing Act
The City does not have any privately-owned or operated employee housing sites that provide housing for five or more employees and thus in compliance with Division 13, Part 1 of the California Health and Safety Code, commencing with Section 17000.

Site Plan and Design Review
Architectural design is important in Carmel-by-the-Sea. The historic character of Carmel’s built environment has been shaped by decades of careful and deliberative design review (referred to as “design study” in Carmel) that addresses such features as site design, architectural style, building materials, color palettes, fenestration, tree placement and landscaping. This attention to detail has resulted in a beautiful, forested village atmosphere that continues to capture the imagination of people from around the world who visit and even choose to make Carmel their home.

The same design review process that has contributed to Carmel becoming a world-famous destination, however, has also impacted its ability to provide housing for lower-income households and by extension housing for a less affluent and diverse population. In this way, Carmel has in some ways become a victim of its own success. Many of the actors, artists, and writers who made Carmel Attachment 2
Appendix B – Housing Constraints B-30 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 their home in the early 20th century came from modest beginnings and travelled to the area not to live in custom luxury homes, but to experience and become part of a “rich” artistic community.

They came for inspiration, not exclusivity.

Part of the challenge, then, is for Carmel to find a way back to its roots—to provide space again for the next generation of the artistically gifted who have yet to make their mark on the world, a space that contains a full mix of incomes and backgrounds within which the artist can find meaning and inspiration.

The following subsection provides a detailed description of Carmel’s design review process.

Residential Design Review Process
The City has two distinct permitting procedures for projects in the R-1 and projects in all other Districts (CC, SC, RC, and R-4). In the R-1 District, development is comprised of single-family residential projects, typically one custom luxury single-family home (as opposed to subdivisions with multiple residences). There are very specific objective and subjective design standards for singlefamily homes. Two public hearings at the Planning Commission are required: a Concept Review hearing and a Final Details hearing. In all other Districts, the permit procedure requires additional entitlements in the form of Use Permits but only one public hearing at the Planning Commission, as opposed to two for single-family residences. Note the following two programs aimed to streamline mixed-use and multi-family residential projects.

Program 1.4.A: Eliminate Unnecessary Use Permits proposes to evaluate the current requirements for Use Permits and eliminate them where feasible to streamline mixed-use and multi-family residential projects in the CC, SC, RC, and R-4 Districts.

Program 1.4.B: Objective Design Standards proposes the creation of objective design standards for mixed-use and multi-family residential projects that include affordable housing. Reducing the number of entitlements required and developing objective design standards are expected to reduce the amount of time required to process housing projects. This is an opportunity for the City to express the design aesthetic that is important to preserving the character of the village while providing clear guidance to developers who desire to build in Carmel.

The typical residential development review process for Carmel-by-the-Sea generally falls under two design study “tracks”: Track 1 and Track 2. A Design Study application is a discretionary review that can include both objective and subjective standards. A hearing is limited to single family projects that qualify as a substantial alteration, or additions greater than 10 percent of the existing floor area, or demolitions and new construction.

Attachment 2
Appendix B – Housing Constraints B-31 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Residential Track 1 Design Study
Track 1 Major Design Study Applications are projects that can be approved at the staff level and typically do not require a public hearing. “Track 1 Major” projects are projects involving additions of less than 10 percent of the existing floor area, or projects with multiple minor components (Track 1 Minor) that together add complexity and require a more detailed review.

The Track 1 Major review is also limited to projects that: 1) do not require significant cuts to the roots/limbs of any “significant” or “moderately significant” trees; 2) do not require the demolition or substantial alteration of any dwelling unit; and 3) are sited and designed to protect public views to and along the ocean and scenic coastal access.

The major steps involved with a Track 1 Design Study Application are as follows:

1. Submit a Design Study Application – This is the formal project application.

2. Staff Review and Decision – Staff will review the application for completeness and consistency with the Zoning Code and the Residential Design Guidelines. The City Planning Division reviews applications for completeness within 30 days to comply with the Permit Streamlining Act. Carmel Municipal Code Section 17.52.020.D codified the Permit Streamlining Act and requires that within 30 days of the date the City receives any application for a development permit as defined by State law, the Department shall review the application to determine if it is complete and provide written notification to the applicant (see CMC 17.52.020.D). If the application is incomplete or inconsistent with the Zoning Code or the Design Guidelines, staff will notify the project applicant of the changes that are required. If the application is complete and approvable, staff will notify the applicant that the application has been approved. If approved, an approval packet is completed and issued. The approval packet consists of (1) an Approval Letter, (2) Conditions of Approval, (3) a Notice of Approval, (4) an Affidavit of Posting of the Notice of Approval, and (5) stamped approved plans. The Approval Letter will inform the applicant if a Building Permit or Notice of Authorized Work is required.

3. Noticing/Appeal Period - The Notice of Approval is required to be posted on-site by the applicant for a 10-calendar day appeal period. For Track 1 Major projects, the approval notice is also mailed by the City to neighbors within 100 feet of the property.

4. Building Permit/Notice of Authorized Work – Following the end of the appeal period, and assuming no appeals are filed, the applicant may apply for either a Building Permit or, if not applicable, will receive a Notice of Authorized Work.

Residential Track 2 Design Study
Track 2 Design Study Applications are for new residential construction, large additions and substantial alterations that require Planning Commission approval. The purpose of the Track 2 Design Study is to promote orderly development, to ensure high quality neighborhood design that is Attachment 2
Appendix B – Housing Constraints B-32 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 harmonious with its surroundings, to implement the General Plan, and to preserve and promote the visual character of the City. The major steps involved with a Track 2 Design Study Application are as follows:

1. Submit a Preliminary Site Assessment Application – This is required for all Track 2 Projects.

After the assessment is completed by Planning and Forestry staff, the applicant will move on to submitting their project application.

2. Submit a Design Study Application – This is the formal project application. Planning staff will review it for completeness and provide early feedback. The City Planning Division reviews applications for completeness within 30 days to comply with the Permit Streamlining Act.

Carmel Municipal Code Section 17.52.020.D codified the Permit Streamlining Act and requires that within 30 days of the date the City receives any application for a development permit as defined by State law, the Department shall review the application to determine if it is complete and provide written notification to the applicant (see CMC 17.52.020.D).

3. Participate in a Forest and Beach Commission Hearing (if tree removal is proposed): A request to remove or prune a significant tree must be approved by the Forest and Beach Commission (FBC) prior to determining completeness of the application. The removal or pruning of any tree will require a separate tree removal application be submitted (Permit Type: Tree with Construction).

4. Install Staking and Flagging (story poles) – “Story poles” provide a visual representation of the proposed project for the public and the Planning Commission. The Coastal Act requires a visual analysis for new development within a coastal zone to ensure significant coastal views are not obstructed– the entire city is within the coastal zone. Story poles not only reflect the scale of a project but also help to identify conflicts with surrounding significant trees, significant view impacts, and solar impacts. Story poles must be installed and heights certified by a California licensed surveyor or civil engineer at least 10 days prior to the scheduled Concept Hearing. To avoid having to relocate or reposition the story poles, it is recommended story poles be installed after the application has been deemed complete.

5. Participate in a Historic Resource Board Hearing (properties located on the City’s Inventory of Historic Resources) – Projects on historic sites are subject to additional review from a cityretained historical consultant and review by the Historic Resources Board (HRB) prior to consideration by the Planning Commission. The historic status of a property will be determined during the Preliminary Site Assessment, if not already documented.

6. Participate in a Concept Hearing – The Concept Review phase by the Planning Commission (PC) will address site planning, access, building massing and neighborhood design issues, such as privacy and view impacts. Projects are evaluated using both the development standards in the Zoning Code and the Residential Design Guidelines – Introduction and Design Concept Review.

Attachment 2
Appendix B – Housing Constraints B-33 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024

7. Obtain a Volume Study – A volume standard was codified c. 2004 as an additional development standard for single-family residential homes to regulate mass and bulk. Each site is permitted a certain amount of exterior volume. Volume is defined as the total space occupied by all structures located above average grade. Following Concept acceptance by the Planning Commission, staff will send the architectural design plans to a City-retained architect/engineer to calculate the volume. A deposit will be collected at the time of application submittal and the unused balance will be returned to the applicant. The cost of a volume study averages $700.

8. Participate in a Final Details Hearing – In this review by the Planning Commission (PC), the project is reviewed for compliance with the City’s Residential Design Guidelines – Final Details Review. Issues such as landscaping, architectural character, and exterior materials are evaluated.

9. Final Approval and Appeal Period – The Planning Commission’s approval is subject to a 10- working day appeal period. Story poles must remain in place until the appeal period has expired.

At the conclusion of the appeal period, and assuming no appeals are filed, the applicant may proceed with submitting an application for a Building Permit. If an appeal is filed, the appeal will be considered by the City Council at the next available council meeting.

10. Decisions of the City Council are final unless the project is located within the Coastal Commission appeal jurisdiction. In such cases, the decision of the City Council can be appealed to the Coastal Commission. In the 5th Cycle, no housing projects were appealed to the Coastal Commission.

Commercial Design Review Process
Per CMC 17.58.030, Commercial Design Review, the City has established two tracks for design review of projects proposing new construction, alterations, rebuilds, additions, demolitions, and other exterior design changes in the Central Commercial (CC), Service Commercial (SC), Residential and Limited Commercial (RC) districts and the Multifamily Residential (R-4) district: Track One and Track Two. Several factors differentiate residential from commercial design review. Unlike residential development in the R-1 District, development in the CC, SC, RC, and R-4 Districts is not subject to a Preliminary Site Assessment, nor a Volume Study, and it is exceptionally rare for a project in the commercial zones to require review by the Forest & Beach Commission. In the 5th Cycle planning period, only one commercial development project (Del Dono II, in 2018) was required to go to the Forest & Beach Commission for a tree removal permit.

Additionally, while commercial development is subject to the City’s Commercial Design Guidelines (2000) and, if located within Carmel Plaza, the Carmel Plaza Storefront Design Guidelines (2001), these guidelines are notably less stringent than the City’s Residential Design Guidelines. As described in CMC

17.14, Commercial Zoning Districts, proposed projects need not strictly comply with every guideline to be approved, but deviations should be minor and reasonably related to good design principles and site conditions. The basic standard of review in the commercial district is whether the project constitutes an improvement over existing conditions.

Attachment 2
Appendix B – Housing Constraints B-34 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Commercial Track One Design Review
The Director may approve Track One applications for design changes in all commercial zoning districts (CC, SC, and RC) and the R-4 district based on a determination that such projects comply with the Zoning Code and all applicable commercial design guidelines.

Commercial Track Two Design Review
The Planning Commission reviews and approves Track Two applications. This is a discretionary process for reviewing substantial design changes in commercial zoning districts and the R-4 district and involves one required public hearing. Substantial changes include but are not limited to the construction of new buildings, additions to existing buildings, new parking facilities, and installation of antennas. The major steps involved with a Commercial Track 2 Design Study Application are as follows:

1. Submit a Design Review Application – This is the formal project application. Planning staff will review it for completeness and provide early feedback. The City Planning Division reviews applications for completeness within 30 days to comply with the Permit Streamlining Act.

2. Install Staking and Flagging (story poles) – “Story poles” provide a visual representation of the proposed project for the public and the Planning Commission. Story poles not only reflect the scale of a project but also help to identify conflicts with surrounding significant trees, significant view impacts, and solar impacts. Story poles must be installed and heights certified by a California licensed surveyor or civil engineer at least 10 days prior to the scheduled Hearing. To avoid having to relocate or reposition the story poles, it is recommended story poles be installed after the application has been deemed complete.

3. Participate in a Historic Resource Board Hearing (properties located on the City’s Inventory of Historic Resources) – Projects on historic sites are subject to additional review from a cityretained historical consultant and review by the Historic Resources Board (HRB) prior to consideration by the Planning Commission. The historic status of a property will be determined as part of a Historic Evaluation application, if not already documented.

4. Participate in one Planning Commission Hearing – The Planning Commission (PC) will evaluate the project using the development standards in the Zoning Code and the Commercial Design Guidelines (2000) and, if located within Carmel Plaza, the Carmel Plaza Storefront Design Guidelines (2001).

5. Final Approval and Appeal Period – The Planning Commission’s approval is subject to a 10- working day appeal period. Story poles must remain in place until the appeal period has expired.

Attachment 2
Appendix B – Housing Constraints B-35 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024

6. Decisions of the City Council are final unless the project is located within the Coastal Commission appeal jurisdiction. In such cases, the decision of the City Council can be appealed to the Coastal Commission. In the 5th Cycle, no housing projects were appealed to the Coastal Commission.

Residential Design Approval Findings
As applicable to the project, the Planning Director, Historic Preservation Board, or the Planning Commission have authority to approve, approve with modifications and/or conditions, or deny an application for design review based on the following findings.

Findings for Design Review Approval
Prior to approving an application for design review in any district, the Planning Director, Historic Preservation Board or the Planning Commission must make the following findings.

1. Conform to the applicable policies of the General Plan and the Local Coastal Program;

2. Comply with all applicable provisions of the Municipal Code; and

3. Are consistent with applicable adopted design review guidelines (CMC 17.58.060).

Additional Findings for Design Review Approval in the R-1 District The Planning Commission shall make all of the following findings before granting design review approval in the R-1 District.

1. The project conforms with all zoning standards applicable to the site, or has received appropriate use permits, variances or exceptions consistent with the Zoning Ordinance.

2. The project contributes to neighborhood character including the type of forest resources present, the character of the street, the response to local topography and the treatment of open space resources such as setbacks and landscaping.

3. The project is compatible with, and sensitive to, the natural features and built environment of the site and of the surrounding area. The project respects the constraints of the site and avoids excessive grading, cuts and fills. Construction on steep slopes is minimized to the extent feasible and abrupt changes in grade is minimized or mitigated.

4. The project maintains the City’s principles of modesty and simplicity and preserves the City’s tradition of simple homes set amidst a forest landscape. The project uses simple building forms and simple roof forms without complexity that would attract undue attention to the site.

5. The project does not present excess visual mass or bulk to public view or to adjoining properties. The project relates to a human scale in form, elements and in the detailing of doors, windows, roofs and walkways.

6. Project details and materials (e.g., windows, doors, chimneys, roofs, and stonework) are fully integrated and consistent throughout the design. Building materials are used in a manner that is visually consistent with the proposed architecture. All fenestration is appropriate in size and consistent with a human scale.

Attachment 2
Appendix B – Housing Constraints B-36 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024

7. The project is consistent with the City’s design objectives for protection and enhancement of the urbanized forest and open space resources. Open space is distributed around buildings to provide visual relief from structural bulk and a distinct separation from buildings on adjacent sites.

8. All demolitions, remodels, and substantial alterations are consistent with the following findings:
a. The design uses simple/modest building forms and a limited number of roof planes, and a restrained employment of offsets and appendages consistent with the City’s design objectives.
b. The mass of the building relates to the context of other homes in the vicinity that are in conformance with the City’s design guidelines related to mass and scale. c. The development is similar in size, scale, and form to buildings on the immediate block and neighborhood.
d. The development does not require removal of any significant trees unless necessary to provide a viable economic use of the property or protect public health and safety. All moderately significant trees have been protected to the maximum extent feasible. All buildings and structures will be set back a minimum of six feet from significant trees.

To eliminate potential subjectivity and provide clarity in the design review and development process, the City intends to adopt Objective Design and Development Standards for multi-family residential developments. Program 1.4.B establishes and monitors the creation and adoption process for the standards.

Forest and Beach Commission Review
Upon submittal of design study, building permit or other application for alteration of a property, the Forest and Beach Commission shall determine if the subject property requires the removal or pruning of a significant tree. A tree removal permit is required for trees on vacant lots or lots planned for new construction, alterations, or rebuilding that meet the following standards (CMC

17.48).

A. Removal, replacement, cutting down, or destruction of any tree identified on the Carmel-bythe-Sea Recommended Tree List (see LUP Appendix G2: Forest Management Plan) having:
i. An average diameter of greater than two inches; or
ii. A circumference greater than six and one-fourth inches, measured at a point four and onehalf feet above the ground level.

B. Any alteration of a tree that would remove:
i. Roots greater than two inches in diameter; or
ii. Live limbs greater than four inches in diameter.

Attachment 2
Appendix B – Housing Constraints B-37 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Removal of Pine, Redwood, Oak, and Cypress Trees When Not Related to Construction. A tree removal permit shall be required for the removal, replacement, cutting down, or destruction of any pine, redwood, oak, or cypress tree having:

A. A diameter equal to or greater than four inches measured at a height 4.5 feet above the ground; or
B. A circumference greater than 19 inches.

Removal of Other Tree Species When Not Related to Construction. A tree removal permit shall be required for the removal, replacement, cutting down, or destruction of any species of tree capable of growing to a minimum of 25 feet in height growing on private property and having:

A. A diameter equal to or greater than 10 inches; or
B. A circumference greater than 32 inches.

City staff are responsible for informing the applicant of the deficiencies in the application within 15 working days of receipt of the application. Once an application is determined to be complete, the application will be scheduled for review. This consists of one (1) public hearing, unless information is received after the Forest and Beach Commission agenda packet has been distributed, which may provide grounds for continuation of the application.

If a subject property is determined to have significant trees, a permit application must be submitted, which the Forest and Beach Commission review and make a determination whether a significant tree is involved. The Forest and Beach Commission must make the following required findings.

1. That removal of the tree is required to protect public health or safety; or

2. That the following four conditions exist:
a. The existing site is vacant or is developed to an extent less than one-third of the base floor area allowed by the zoning applicable to the site; b. The available land area of the site not occupied by significant trees (including land within six feet of the trunk of significant trees) does not adequately and practically provide space for development of at least one-third of the base floor area allowed by the zoning for the site;
c. The issuance of a variance for development in one or more setbacks has been considered and would not provide a remedy or would be inappropriate due to a significant overriding inconsistency with another policy or ordinance of the LCP; and d. Failure to authorize removal of the tree(s) would deprive the owner of all reasonable economic use of the property. (Ord. 2004-02 § 1, 2004; Ord. 2004-01 § 1, 2004).

Attachment 2
Appendix B – Housing Constraints B-38 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 While the findings of approval for removal of trees are objective, the Forest and Beach Commission may condition a permit on replacement of trees planted at a place, of a species, and of a size designated by the City Forester or Forest and Beach Commission. This may pose a constraint on the development of housing, as the person requesting the permit will be required to pay the cost of obtaining and planting the replacement trees.

Historic Resources Review
Upon submittal of a design study, building permit or other application for alteration of a property, the City shall determine if the subject property contains historic
resources and is therefore eligible for the Carmel Inventory of Historic Resources (updated annually). If it is
determined that the property contains historic resources, the applicant shall be required to obtain a determination of consistency with the Secretary of the Interior’s Standards for the Treatment of Historic Properties as part of the project review process, as required by CEQA and state law.

Minor Alterations
Determinations of consistency for minor alterations shall be reviewed by City staff for compliance with the Secretary of the Interior’s Standards for the Treatment of Historic Properties. City staff review times typically take between three to six months. Minor alterations that are found not to comply with the Secretary’s Standards shall be considered and processed as major alterations requiring an evaluation by a qualified professional and final action by the Historic Resources Board.

Decisions of the Board are appealable to the City Council.

Major Alterations
Determinations of consistency for major alterations shall require an evaluation by a qualified professional and shall be reviewed and approved by the Historic Resources Board. Decisions of the Board are appealable to the City Council. Review times by the Historic Resources Board typically take between six to eight months.

The City’s current approach to conserving historic resources does not present a constraint to constructing new residential units. The City values historic resources and has an associate planner on staff that is trained in historic preservation and facilitating rehabilitation of historic properties. The City will ensure that proper record keeping is conducted to track historic resources within the City, and do its due diligence to ensure these resources are utilized efficiently.

Community Planning and Building Fees
The City charges fees and assessments to cover the costs of processing permits. Processing fees are commensurate with the fees for the rest of the County of Monterey. Compared to the high costs of undeveloped, unimproved land and high site development costs in the City, processing and I want to keep the village feel of
the town.

November 17, 2022 Housing Ad
Hoc Committee Community
Meeting Attendee
Attachment 2
Appendix B – Housing Constraints B-39 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 connection fees are negligible and, therefore, do not present a constraint to development. However, the partial waiving of such fees would help reduce the cost of any proposed affordable housing. The City’s current fee schedule is shown below in Table B-8, Summary of Community Planning & Building Fees (2023-2024). Note the summary provided in Table B-8 is a summary, and excludes fees related to commemorative bench dedications, signage, public works/forestry, public safety, administrative services, etc. The full fee schedule is available online at the City’s website.6 Table B-8 Summary of Community Planning & Building Fees (2023-2024) Application/Permit Type Fee
Design Study and Review
Track 1 Design Review/Study - Minor $690 per application Track 1 Design Review/Study - Major $990 per application Track 1 Design Rev/Study-Streamline $355 per application Track 1 Design Rev/Study - Referral to Planning
Commission $1,785 per application in addition to the base Track 1 fee Track 1 Design Rev/Study-Referral to Historic
Resources Board $1,785 per application in addition to the base Track 1 fee Track 2 Design Review - Minor $3,910 per application
Track 2 Design Review - Major $5,935 per application
Track 2 Design Rev - Major New Commercial Building $2,830 per application plus a deposit determined by staff with charges at the fully allocated hourly rates for Project Planner Preliminary Site Assessment $1,495 per application
Volumetric Analysis $135 per application plus $1,500 deposit with charges at the fully allocated hourly rates plus any outside costs.

Use Permit and Other Services
Use Permit $3,060 per application
Use Permit Amendment $2,765 per application
Temporary Use Permit $165 per application
Restricted Comm Use Transfer Request $565 per application Water Credit Transfer Request $3,100 per application
Variance $1,790 per application
Pre-Application Review - Staff $1,365 per application with 50% of this fee credited towards future planning fees for this project.

Preliminary Review - Planning Commission $3,750 per application with 50% of this fee credited towards future planning fees for this project.

Coastal Dev. Permit - Development $175 per application - Added to other Planning fees Coastal Dev. Permit - Event $740 per application
Landscape Plan Check/Inspection $690 per plan/inspection 6 https://ci.carmel.ca.us/sites/main/files/file-attachments/fy_23-24_master_fee_schedule.pdf?1694542754 Attachment 2
Appendix B – Housing Constraints B-40 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Application/Permit Type Fee
Planning Technical Assistance Fully allocated hourly rate after 15 mins Tobacco Retail License Current fee as adopted by the Monterey County Board of Supervisors
Extraordinary Development Deposit amount TBD based on scope of project, with charges at the fully allocated hourly rates plus any outside costs Amendments, Annexations, and Agreements
Specific Plan/Specific Plan Amendment
General Plan Amendment
Sphere Of Influence Amendment
Zoning Code Amendment
$5,000 deposit with charges at the fully allocated hourly rates plus outside costs
Annexation
Development Agreement
$10,000 deposit with charges at the fully allocated hourly rates plus outside costs
Environmental Review, Maps, and Lot Lines
Environmental Review (IS/ND/EIR) Contract cost plus 10% Environmental Notice of Exemption $495 per application plus County fees Mitigation Monitoring $3,000 deposit with charges at the fully allocated hourly rates plus outside costs.

Tentative/Final Map $4,000 deposit with charges at the fully allocated hourly rates plus any outside costs.

Amended Final Map $1,000 deposit with charges at the fully allocated hourly rates plus any outside costs.

Certificate Of Compliance $750 per application plus actual contract cost Lot Line Adjustment/Subdivision - Planning Commission $1,055 per application plus actual contract cost Lot Merger - Staff Review $855 per application plus actual contract cost Historic Evaluation
Prelim (Phase 1) Historical Evaluation - Staff $310 per application Phase 1 Historic Evaluation - Qualified Professional $405 per application plus actual cost for Historian review with $1,500 deposit
Phase 2 Historic Evaluation-Historic Resources Board
Review
$2,040 per application plus actual cost for Historian review with $1,500 deposit
Appeal To Historic Resources Board $1,500 per application plus actual cost for Historian review with $1,500 deposit
Mills Act Contract Processing $3,430 per application
Mills Act Maintenance Plan Review $1,000 deposit
Mills Act 5-Year Inspection $500 deposit
Mills Act 10-Year Maintenance Plan Review $1,000 deposit Determinations, Extensions, and Appeals
Planning Commission Code Determination $1,740 per application Zoning Compliance Determination Fully allocated hourly rates for all personnel involved with a one hour minimum
Time Extension - Staff $400 per application
Attachment 2
Appendix B – Housing Constraints B-41 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Application/Permit Type Fee
Time Extension - Planning Commission $1,080 per application Time Extension - City Council $1,045 per application
Public Hearing Continuance - Planning Commission $830 per continuance Public Hearing Continuance - Council $835 per continuance Appeal To Planning Commission
$1,945 per appeal – No charge for appeals of Coastal
Development Permits (CDPs) in the Coastal Commission
Appeal Jurisdiction (CMC 17.20.140)
Appeal To City Council
$2,085 per appeal - No charge for appeals of Coastal
Development Permits (CDPs) in the Coastal Commission
Appeal Jurisdiction (CMC 17.20.140)
Building Services
Building Relocation Deposit determined by staff with charges at the fully allocated hourly rates for all personnel involved plus any outside costs Large Family Day Care (Residential) $2,320 per application General Plan Update 3.5% of all Building & Safety permits Building Plan Check Based on Building and Safety Construction Valuation Building Inspection Based on Building and Safety Construction Valuation Building Re-Inspection $145 per re-inspection
Permit Application Extension $95 per extension (maximum of 4) Permit Extension $150 per extension (maximum of 2)
Building Permit Pre-Applic. Confer. $340 per application Building Single Trade Permit $165 per permit
On-Site Driveway Permit $395 per permit
Solar Plan Check/Inspection Permit Plan Check and Inspection- $450 plus $15 per kW over 15kW
Re-Roof Permit $260 per permit
Building Board Appeal $1,135 per appeal
Duplicate Inspection Card $60 per card
Building Technical Assistance Charge the fully allocated hourly rate for all personnel involved after 15 minutes.

Stop Work Investigation $620 per investigation plus double the permit fee Temporary Certificate Of Occupancy $225 per application Alternate Materials/Methods Review $220 per application plus actual cost of City Staff for all time over one hour.

Building Phased Work Request $315 per application
Building Technology Surcharge $8 per permit
Attachment 2
Appendix B – Housing Constraints B-42 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Application/Permit Type Fee
Encroachment Permit
Temporary Encroachment Permit $345 per permit
Permanent Encroachment Permit Other - $475 per permit and $4.25/lineal foot or $432 per permit and $2.13/lineal foot (aerial installation) Plus cost of damage to public right-of-way or street as determined by the Public Works Director.

Traffic control plan review/inspection $675 per review plus $405 per each additional review Use of credit card/ debit card 2.5% of charged amount
SOURCE: City of Carmel-by-the-Sea Fee Schedule Effective September 9, 2023 – June 30, 2024 In comparison with other jurisdictions in the County of Monterey, the fees in Carmel-by-the-Sea for new residential projects – both single-family and multi-family units – are generally in line. Table B-9, provides a comparison between the cities of Carmel-by-the-Sea, Pacific Grove, and Monterey, which are geographically, socioeconomically and demographically similar in size and types of residential development. Data for Monterey County has also been provided for context.

Table B-9 Jurisdictional Comparison of Average Design Review/Study Fees Residential
Development
Application Type(s)
Carmel-bythe-Sea Pacific Grove City of Monterey Monterey County Staff/Admin $6901/$9902 $2413/9784 $3625/$1,2986 $5507/$1,6508 Non-Staff/Admin
(i.e. Planning Commission) $3,9109/5,93510 $3,48111/$4,25912 $2,10213/$4,62014 $3,30015 SOURCE: City of Carmel-by-the-Sea Fee Schedule Effective September 9, 2023 – June 30, 2024; City of Pacific Grove Master Fee Schedule Effective July 1, 2023 – June 30, 2024; City of Monterey Master Fee Schedule, Fiscal Year 2024; Monterey County Article IX-Land Use Housing & Community Development Fee Schedule.

NOTE:

1. Track 1 Design Review/Study - Minor

2. Track 1 Design Review/Study – Major

3. Counter Review & Determination – no new square footage

4. Counter Review & Determination - new square footage

5. Architectural Review – Admin Minor

6. Architectural Review – Admin Major

7. Design Approval – Over the Counter

8. Design Approval – Administrative, review & approval required, no hearing required

9. Track 2 Design Review/Study – Minor

10. Track 2 Design Review/Study - Major

11. Architectural Permit – Single Family

12. Architectural Permit – Multifamily four units or less

13. Architectural Review – ARC Minor

14. Architectural Review – ARC Major

15. Design Approval, public hearing required
NOTE: The design study fees provided above do not reflect fees incurred if historic evaluation(s) is required, or a Preliminary Site Assessment, or other potentially relevant fees. See Table B-4 for a Summary of Community Planning & Building Fees, and Table B-6 for Estimate of Total Development Fees Imposed.

Attachment 2
Appendix B – Housing Constraints B-43 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 The City is not a full-service municipality; several agencies and special districts levy fees on new development for the provision of basic urban services. These agencies and special districts include the following:
 California American Water (Cal-Am);
 Monterey Peninsula Water Management District;
 Carmel Unified School District;
 Carmel Area Wastewater District;
 Carmel Fire Department (service provided by contract with Monterey Fire Department; and  Transportation Agency for Monterey County (TAMC).

Special district fees add to development costs in the City. Carmel is under the jurisdiction of the Monterey Peninsula Water Management District (water district) and receives its water from the California-American Water Company (Cal-Am).

Cal-Am charges non-refundable Connection Fees as determined by CPUC guidelines. The fee is based on the meter size which is as follows:

1. 5/8” Meter - $3,000 (single-family)

2. 1” Meter - $5,000 (small multi-family)

3. 1-1/2” Meter - $10,000 (large multi-family

4. 2” Meter - $16,000 (large volume requirement ex. hotel.) The MPWMD has permit authority over the production and distribution of all water supplies within the Monterey Peninsula region, and allocates water supplies to cities and County areas within its jurisdiction. According to the water district, the City, as of June 2023, has a total available water allocation of 2.661-acre feet, which represents only three (3) percent of the water district’s total available allocation across the district, which includes all of the Monterey Peninsula south to Carmel Valley and portions of the Santa Lucia Range. The current MPWMD permit fees are governed by the Fees and Charges Table (effective August 16, 2021) and start at $1,800 plus $90 per hour for more than 20 hours.

The Carmel Unified School District requires the payment of an impact fee of $0.49 per square foot for new residential construction. The school district does not offer any discounts for the payment of impact fees.

The Carmel Area Wastewater District charges a new residential connection fee of $8,242.66 and charges an annual rate of $1,005.94 for residential uses.

Attachment 2
Appendix B – Housing Constraints B-44 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 TAMC established a Regional Impact Fee (RDIF) program to address required mitigation for traffic impacts. Accessory Dwelling Units under 750 square feet are exempt from impact fees. Carmel-bythe-Sea is located with Zone 3: Peninsula/South Coast benefit zone and also subject to additional infill fee. Impact fees are calculated using an online spreadsheet and fees range from $4,599.04 for an Above Moderate single-family home, to $9,313.70 for a 5-unit Low-Income apartment to $28,161 for a 10-unit Above-Moderate condo or townhome. Impact fee discounts are applied to affordable units and are dependent on the affordability level.

Fees charged by these outside agencies vary according to project types and size and increase development costs. The City does not control fees for outside agencies, but outside agency fees are a constraint and add to the overall cost of development. See Table B-10, Estimates of Total Development Fees Imposed, below.

Table B-10 Estimate of Total Development Fees Imposed
Single-Family* Multi-Family (10 units) **
Track 2 Major Design Study $5,935 $5,935
Preliminary Site Assessment (includes
fee for Phase I Historic Evaluation) $1,495 N/A
Phase II Historic Evaluation (applicable
only for existing historic buildings
proposed for expansion)
$2,040 plus $1,500 consultant deposit N/A
Volume Study $135, plus $1,500 consultant deposit N/A
Use Permit N/A $3,060
Building Permit fee $4,872 $9,872
Subtotal $17,477 $18,867
MPWMD $225 $2,250
CUSD $980 $9,800
Cal-Am $3,000 $5,000
CAWD $8,242 $82,426
TAMC $4,036 $17,386
Regional Fees Subtotal $16,483 $116,862
Total Fees $33,960 $135,729
SOURCE: City of Carmel-by-the-Sea Fee Schedule Effective September 9, 2023; MPWMD Fee Schedule, July 2023; CUSD Developer Fees, 2023; Cal-Am Fee Schedule, 2022; CAWD Fee Schedule 2023; TAMC Fee Schedule, 2022.

NOTES: *Assumed $350K valuation and 2,000 sq. ft.
**Assumed $5,000,000 valuation and 20,000 sq. ft.

Attachment 2
Appendix B – Housing Constraints B-45 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 City fees to develop a single-family home roughly equal the regional fees. For multi-family development, regional fees comprise the bulk of the costs. As shown in Table B-10, total development fees for a 10-unit multifamily development would total approximately $135,729, of which regional fees total $116,862 – approximately six times the City fees ($18,867). On a per unit basis, total development fees for a single multifamily unit would total approximately $13,573.

Comparatively, this is significantly less than that of a single-family unit.

While fee types in comparable and neighboring jurisdictions do not precisely align with the fee types in Carmel-by-the-Sea for side-by-side comparison, the total estimated fees as cited in Pacific Grove’s Draft 2023-2031 Housing Element Update (Table 1-42) offer comparative insight. While Carmel estimates a total fee of $33,960 for a single-family home and $135,729 for a 10-unit multi-family home, Pacific Grove estimates $68,928 and $212,350, respectively. This indicates Pacific Grove’s City fees are substantially higher than Carmel-by-the-Sea’s. The City of Monterey’s Draft 2023-2031 Housing Element (Table C-10) does not provide estimated total fees for single-family and a 10-unit multi-family development for an “apples to apples” comparison with Carmel-by-the-Sea and Pacific Grove, however, fees for a four-unit multi-family project in the City of Monterey are estimated at approximately $18,841, which is on par with the City of Carmel-by-the-Sea’s City fees, but no regional fees are included in Monterey’s estimate.

Overall, Carmel-by-the-Sea’s fees are less than neighboring jurisdictions. Regional impact fees pose the greatest constraint to the development of multifamily housing. Despite regional fees being beyond the City’s control, the City is committed to lowering the cost to develop affordable multifamily residential units. Program 3.1.D establishes and monitors the implementation of reduced entitlement and development fees for projects with affordable units (see Chapter 2).

Processing and Permit Procedures
The processing time needed to obtain development permits and required approvals varies depending on the scope of the project. The size of projects in Carmel-by-the-Sea is typically limited to the remodeling or construction of a single-family home, a minor commercial modification, or the construction of an accessory dwelling unit. The City strives to keep its permit procedures streamlined and processing times short. The Planning Division is the lead agency in processing residential development applications and coordinates the processing of those applications with other City departments such as the Building Safety Division and Public Works Department and other outside agencies as deemed appropriate, such as the fire and water districts.

Carmel-by-the-Sea has traditionally encouraged high architectural standards for new development.

City zoning regulations require design review approval for any proposed additions to or the construction of new single-family homes, duplexes or multi-family developments. However, accessory dwelling units are exempt from design review by state law and must only meet the location and development standards outlined by state law (Government Code section 65852.2).

Attachment 2
Appendix B – Housing Constraints B-46 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Permit applications are generally processed in as an efficient manner as practical in Carmel-by-theSea. Although the Historic Resources Board, the Planning Commission, and the City Council only meet once a month, determination on a project is usually reached in one or two meetings. For Track 2 Design Study applications, the City does require applicants to take part in a Forest and Beach Commission if tree removal is proposed, as well as a separate Concept hearing and Final Details hearing with the Planning Commission prior to formal approval. There is no separate Design Review Board in Carmel, with the Planning Commission conducting design review. The typical processing time for Track 2 discretionary review is four to six months, depending on the degree of completeness of submitted plans, whether tree removal or replacement is proposed, whether the property is deemed historic or eligible for historic listing, whether the property falls within the “Beach and Riparian Overlay” (Coastal Commission Appeal Jurisdiction), and whether the project requires a volume study or any other technical study be conducted. While this review procedure assists in achieving project acceptability and allows for neighborhood participation through multiple public hearings, the overall scale and level of complexity of review does provide a barrier to applicants without the financial resources and time to see a residential project through to completion.

However, the City does have a practice of moving projects with affordable housing ahead of other projects in the development processing queue when setting development review agendas. Due to Permit Streamlining law, this incentive is less powerful than it once was. However, it may reduce review time by as much as a month. Even this minor benefit attracts developer attention during preapplication meetings. Projects that include affordable housing are also expedited through the plan check process.

Carmel-by-the-Sea’s development process can be summarized in the following nine steps. All of these steps may not be necessary depending on the nature of a project:

1. Application Submittal - The planning application submittal process begins when a developer, architect, property owner, or other applicant authorized by the property owner (Project Applicant) submits a development application, required fees, and application materials. Often times the developer will have met informally with the Planning Division to review the project and receive preliminary feedback on the proposal in advance of the formal project submittal.

2. Plan Review - After the application is received, it is routed to the relevant City Departments, including the Planning Division, Building Safety Division, Fire Prevention, and Public Works. A planner is assigned to serve as the liaison to the Project Applicant, helping to expedite the permit process and coordinating the department reviews. During a 30-day review period for completeness, individual departments assess the completeness of the application, work with the Project Applicant to correct any project deficiencies, and prepare preliminary Conditions of Approval.

Attachment 2
Appendix B – Housing Constraints B-47 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024

3. Application Assessment - The application is assessed for its compliance with the standards of the Zoning Code (Title 17 of the municipal code) as well as the City’s Residential or Commercial Design Guidelines.

4. Environmental Review - A review of the environmental issues associated with the proposed project (as required by the California Environmental Quality Act) will also be completed during the Plan Review stage of the process.

5. Forest and Beach Commission/Historic Resources Board – If a project proposes to remove a significant tree(s), it will require review by the Forest and Beach Commission. If the property is a listed historic resource or has potential eligibility for listing as a historic resource, the project is required to be reviewed by the Historic Resources Board.

6. Planning Commission/City Council Approval - If a project is determined to require discretionary action, it will be scheduled for review by the Planning Commission. A Public Notice will be provided and all property owners within 300 feet of the project site will be notified by mail. After projects receive approval by the Planning Commission there is a ten‐ working-day appeal period during which the project may be appealed to the City Council. The City Council decision is final, unless the project is located within the Coastal Commission appeal jurisdiction. There are different levels of planning review/approval depending on the scope of work proposed.

7. Plan Check - After the project receives all required approvals, construction plans may be submitted to the Building Safety Division for a plan check for building permits. The plans will be routed to the City’s Planning Division and Public Works Department. The project planner will review the plans for conformance with the Zoning Code, any required Conditions of Approval, and with plans approved by the Planning Commission or City Council. The Building Safety Division will verify that all building, fire, mechanical, plumbing and electrical code requirements are fulfilled in compliance with the California Code and other State requirements.

8. Building Permit - After the construction plans receive approval from the relevant departments, the Building Safety Division issues a building permit. Construction can begin after this point.

Regular inspections are required throughout the construction process. The final inspection requires clearance from all relevant City departments and the Carmel Fire Department.

9. Occupancy Permit - Once the final inspection is complete, the developer needs to secure a certificate of occupancy. New buildings or structures cannot be used or occupied until the Building Official has issued a certificate of occupancy.

Typical Processing Times
Processing times for development review vary based on the size of the project and the extent of environmental review required, and a can range from six months to over a year if an EIR is required.

When an application is submitted, it is reviewed within 30 days to verify that it is complete or the Attachment 2
Appendix B – Housing Constraints B-48 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 applicant is notified that it is incomplete. Once the application is complete, typical processing times are as follows, in line with the requirements of the State Permit Streamlining Act of 1992. Table B-11 shows the typical processing time for a residential development application.

Table B-11 Review/Approval Requirements and Processing Times Development Type Design Study Use Permit CDP1 Typical
Processing Time2
R-1 Single-Family Residential District
Single family residence Yes No Yes 6-9 months
ADU (Subordinate Unit) Yes No Yes
1 month if exempt
from Planning Review
under State Law
Guest house Yes Yes Yes 4-6 months
Building sites exceeding 30 percent slope Yes Yes Yes 6-9 months R-4 Multi-Family Residential District
Single family residences Yes No Yes 6-9 months
Multi-family residences 0-22 units/acre Yes No Yes 8-10 months Multi-family residences 23-44 units/acre Yes Yes Yes 8-10 months Commercial Districts
Multi-family residences 0-22 units/acre Yes No Yes 8-10 months Multi-family residences 23-44 units/acre Yes Yes Yes 8-10 months Public and Quasi-Public Districts (A-2 and A-3)
Senior Citizen Housing Yes Yes Yes 8-10 months
SOURCE: City of Carmel-by-the-Sea Community Planning and Building Department 2023 NOTE:

1. CDP – Coastal Development Permit – required for all projects that increase the height and/or floor area on an existing structure by 10 percent or more.

2. Includes time for building plan check
Single-family homes, duplexes and multi-family projects go through the same zoning compliance and design review process. The review and approval of multi-family projects typically takes longer due to the complexity of a more intense development and the myriad issues that need to be considered including adequate site servicing, design review, potential tentative map review, and the more active involvement of other departments and agencies outside of Planning. Although there is a high level of public input on some planning applications, Carmel-by-the-Sea’s zoning standards and design review ordinance are fairly detailed. There is a level of certainty on behalf of the project applicants that if the project meets the standards and goals of the ordinances, the project will receive City support. Table B-12 shows the reviewing authority and typical processing times, in line with the requirements of the State Permit Streamlining Act of 1992.

Attachment 2
Appendix B – Housing Constraints B-49 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table B-12 Permit Streamlining Act Processing Times
Application Final Authority Typical Processing Time
Subdivision Parcel Map (Tentative) City Council 45-60 days Subdivision Parcel Map (Final) City Council 45 days
Subdivision Tract Map (Tentative) City Council 3-6 months Subdivision Tract Map (Final) City Council 2-4 months
Negative Declaration Planning Commission 3-6 months
Environmental Impact Report Planning Commission 1 year* SOURCE: City of Carmel-by-the-Sea
NOTE: If the applicant modifies the application, or if the applicant submits a written request for a time extension, the maximum time period for review may be extended for up to 90 additional days.
*Upon mutual consent of the Director and the project sponsor, this one-year time limit may be extended once for a period of not more than 90 days pursuant to CEQA Guidelines Section 15108.

Environmental Review
Environmental review is required for all development projects under CEQA. Carmel-by-the-Sea has a number of environmental constraints due to its coastal location and conservative approach to preserving its unique natural surroundings. Because of these environmental constraints, larger residential projects have required preparation of EIRs. An EIR is required of all developments that have the potential of creating significant impacts that cannot be mitigated. Most residential projects in Carmel-by-the-Sea are either Categorically Exempt or require only an Initial Study and Negative Declaration. The Negative Declaration process typically takes four to eight months to complete, depending on staffing levels and workloads. Categorically Exempt developments such as accessory dwelling units require a minimal amount of time. As a result, State-mandated environmental review does not pose a significant constraint to housing development.

SB 35 Streamlining
Government Code section 65913.4 allows qualifying development projects with a specified proportion of affordable housing units to move more quickly through the local government review process and restricts the ability of local governments to reject these proposals. The bill creates a streamlined approval process for qualifying infill developments in localities that have failed to meet their RHNA, requiring a ministerial approval process, removing the requirement for CEQA analysis, and removing the requirement for discretionary entitlements. Since the adoption of this section of the Government Code, the City has not received an application under these provisions.

As previously noted, the entire City is located within the California Coastal Zone and is therefore not subject to SB 35 (see Government Code Section 65913.4(6)). The City has included a program in the 6th Cycle Housing Element to address SB-35 if the law becomes applicable to Coastal Zone areas. The City will create a SB35 checklist and written procedures for processing SB35 applications to ensure efficient and complete application processing.

Attachment 2
Appendix B – Housing Constraints B-50 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 SB 10 Building Opportunities for All
SB 10 makes it easier for cities to zone for smaller, lower-cost housing developments of up to 10 units to address California’s housing crisis. SB 10 provides tools for local governments to zone for up to ten homes per parcel in transit-rich areas, or urban infill sites. SB 10 maintains local control, as a local legislative body must pass a resolution to adopt the plan. The City has included a program in the 6th Cycle Housing Element to address SB-10 and encourage urban infill on large properties zoned single-family (R-1).

SB 9 California Housing Opportunity and More Efficiency (HOME) Act SB 9, also known as the California Housing Opportunity and More Efficiency (HOME) Act, is a state bill that requires cities to allow one additional residential unit on parcels zoned for singledwelling units. The City has not received any inquiries of interest for SB 9 lot splits and is not currently processing any SB 9 application.

Building and Fire Code
Building and safety codes are adopted to preserve public health and safety, and ensure the construction of safe and decent housing. These codes and standards also have the potential to increase the cost of housing construction or maintenance. The City’s Building Code is currently based on the latest, 2022 version of the California Building Code, along with all required updates (City Ordinance No. 2022-004). The City has not made any amendments to the Code that might diminish the ability to accommodate persons with disabilities or other special-needs groups.

The 2022 California Fire Code as adopted by the City and effective January 1, 2023 (found in Chapter 15.55 of the CMC), prescribes the issuance of Fire Code Operational Permits for operations, processes, and/or activities that present higher levels of risk to life and property.

Operational permits allow the City to better track specific hazards and to assure that safeguards for hazardous operations, processes, and activities are maintained in accordance with local, State and Federal Regulations.

Carmel Municipal Code Title 8.32.100, Section 102.1(5) requires new structures, or existing structures to which additions, alterations or repairs are made that involve the addition, removal or replacement of fifty percent or greater of the linear length of the walls of the existing building (exterior plus interior) within a five-year period, are required to be outfitted with an automatic fire sprinkler system. Fire sprinklers shall be addressed as part of the building permit review. It is recognized that the costs of an automatic fire sprinkler system can vary considerably based on various factors including water service capabilities, whether a new meter is required, and the type of fire suppression system required for the application in question. However, it is generally recognized by City staff that installing fire sprinklers can be expensive and can present challenges from a water flow standpoint. Parts of Carmel have low water pressure affecting the ability to install sprinklers, which in-turn significantly increases construction costs if additional on-site infrastructure is needed (water holding tanks, pumps, etc.) to serve the sprinkler system.

Attachment 2
Appendix B – Housing Constraints B-51 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Additionally, vehicular access within the community is affected by steep, hilly terrain and many secondary ridge lines. Many streets are narrow and winding, restricting the speed at which a fire apparatus may safely respond and also increasing the time lapse between fire detection and apparatus arrival, during which a household will face the fire or other emergency on their own.

The State Fire Marshal’s Office, and the City of Carmel-by-the-Sea, have adopted regulations for protection of structures built in areas susceptible to wildland fires under California Building Code Chapter 7A (2019 edition). Exterior wildfire exposure protection within the City of Carmel-by-theSea is prescribed in Municipal Code Title 15, Buildings and Construction. Protective features include such active measures as combustible vegetation management and sprinkler systems; and passive protection features such as fire resistive roofing and building opening protection. The extent of protection is determined by the location of the property. The currently adopted (October 2008) California Department of Forestry and Fire Protection (CAL FIRE) Very High Fire Hazard Severity Zones in Local Responsibility Areas (LRA) map for Carmel-by-the-Sea, identifies a large area encompassing northern and eastern portions of the City as a “Very High Fire Hazard Severity Zone.” It should be noted that all LRA maps across the state of California are undergoing updates and according to CAL FIRE are anticipated to be released sometime in 2024. Within the areas identified in the “Very High Fire Hazard Severity Zone,” additional construction features are mandated. These typically include ignition resistant materials, spark protection for ventilation openings, and exterior window and door protection. Detailed requirements are contained in Chapter 7A of the California Building Code and in Carmel Municipal Code Titles 8 and 15.

Building Code and Zoning Code enforcement activities are undertaken on a proactive and complaint basis. The City finds that the adopted Building Code and Zoning Code and associated enforcement activities are not constraints to the development, maintenance or preservation of housing.

On and Off-Site Improvement Standards
Since the City is largely built-out, all infrastructure, including curbs, gutters, sidewalks, streets and utilities are in place. Development of residential units involves hooking up to the existing utilities, which already exist in the right-of-way. All electrical distribution lines, telephone, cable television, and similar service wires or cables, which provide services to new development, are to be installed underground. Typical infrastructure costs in the CC, SC, RC, and R-4 districts are limited to sidewalk, curb, and gutter improvements, undergrounding of utility wires, stormwater drainage improvements, and landscaping. The City’s Municipal Code does not contain requirements for subdivision off-site improvements. However, the Code includes a chapter on requirements related to streets, sidewalks, and public places.

Sidewalks
Construction of sidewalks is not required in residential areas of the City. If sidewalk construction is proposed, a permit is required. The proposal must show that the construction of the sidewalk or Attachment 2
Appendix B – Housing Constraints B-52 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 walkway will preserve public safety, health or welfare, resolve a serious drainage problem, or that it would otherwise benefit the general public. The construction of the sidewalk or walkway must follow the natural contours of the land, and 50 percent or more of the sidewalk area in front of any building site must be retained in planting. It shall continue to be the policy of the City to avoid formal sidewalks in favor of meandering and unpaved footpaths where possible.

Driveways
Construction of a driveway requires a permit from the Department of Community Planning and Building in conjunction with the Director of Public Works and the Director of Forest, Parks and Beach.

Landscaping
Sidewalk street trees are encouraged by the City, with the City Forester determining the number of trees, species, and exact location. Sidewalk street trees should be located near the head of, and adjacent to, parallel parking spaces with the trunk of the tree located 4.5 feet back from the head of the parking space. For trees at the curb line there should be at least four feet between the trunk and the facing building or planters in front of the building. All tree planters are encouraged to be as large as possible so that additional landscaping can be incorporated into the planters.

The City also encourages including “mini-parks”, which is a park that protrudes into the street from the curb line or is in the street. The design of mini-parks must be consistent with the standards in the Forest and Beach Management Plan.

Streets
The improved portion of residential streets in Carmel are narrow in width, 26 to 34 feet, with no gutters or sidewalks. This lack of formal development of streets throughout Carmel’s residential neighborhoods has been a conscious effort on the part of residents to maintain a “village in a forest” atmosphere. As Carmel is a built-out city and new development will occur as infill or redevelopment on parcels within the established street grid, construction of new streets is not anticipated.

Therefore, street standards will have no impact on the cost and supply of housing.

Summary of Governmental Constraints
The governmental constraints to the development of affordable housing in Carmel-by-the-Sea are summarized below.

Lack of Water Resources
The primary infrastructure constraint to the development of housing in Carmel is the lack of potable water. The lack of a reliable available water supply continues to limit growth in Carmel and throughout the Monterey Peninsula region.

Attachment 2
Appendix B – Housing Constraints B-53 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Location in the Coastal Zone
Carmel-by-the-Sea is located in the California Coastal Zone and is therefore subject to a host of regulations that are not present in communities outside the Coastal Zone. The presence of additional land use regulation via the Local Coastal Program, in general, means that housing development in Carmel-by-the-Sea faces a high bar to succeed. The additional hurdles presented by Coastal Zone regulations represent an additional layer of complexity to the City’s already timeconsuming review process. For example, the Coastal Act requires story poles be installed during the review phase of development to determine if significant coastal views are at risk of being obstructed by proposed development. The City has no control over this development requirement.

City Design Review and Permit Processing
Architectural design is important in Carmel-by-the-Sea. The historic character of Carmel’s built environment has been shaped by decades of careful and deliberative design review (referred to as “design study” in Carmel) that addresses such features as site design, architectural style, building materials, color palettes, fenestration, tree placement and landscaping. This attention to detail has resulted in a beautiful, forested village atmosphere that continues to capture the imagination of people from around the world who visit and even choose to make Carmel their home. The same design review process that has contributed to Carmel becoming a world-famous destination, however, has also impacted its ability to provide housing for lower-income households.

The City’s design review (design study) process may be lengthy for projects involving significant trees, historic resources, and/or underdeveloped plans. The following are governmental bodies responsible for decision-making through the course of development review:
 Forest and Beach Commission if removal of a significant tree is proposed (one hearing);  Historic Resources Board for historic properties and also for non-historic properties in the Conservation District (one hearing to ensure development is compatible with neighborhood context);
 Planning Commission: One hearing, minimum, for commercial and multi-family residential projects. Preliminary hearing/review for commercial/multi-family is optional but encouraged.

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

In addition, the City’s permit process, which includes a use permit above 22 du /acre and includes both objective and subjective standards, could also pose as a constraint to developers, especially of multi-family affordable housing projects. Program 3.1.G has been included in the 6th Cycle Housing Element to establish a minimum density of 33 dwelling units per acre for the base zoning in the CC, Attachment 2
Appendix B – Housing Constraints B-54 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 SC, RC, and R-4 districts (see Chapter 2). Establishing a minimum density will enable the development of residential units at a higher yield, lending to increased feasibility to develop affordable units.

City Fees and Regional Development Fees
The City’s design review process may be financially prohibitive for lower income households and likely most affordable housing projects. Regional development fees are exorbitant and makeup the bulk of costs for multi-family developments.

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.

The City is following State ADU law while the ADU Ordinance is being developed. The State ADU Handbook is posted on the City website and distributed to ADU applicants. ADUs/JADUs that are 800 square feet or less, 16' tall or less, with at least 4' rear and side setbacks bypass review by the Planning Division and are routed straight to the Building Division. ADUs/JADUs that do not meet these standards are subject to a ministerial Planning review to confirm the project meets City floor area standards (1,800 square feet of floor area permitted on a standard 4,000 square-foot-lot) and minimum setbacks (3' side setback, 3' rear setback if less than 15' high, 15' front setback).

ADUs/JADUs are not subject to the City's Residential Design Guidelines, which contain both Attachment 2
Appendix B – Housing Constraints B-55 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 objective and subjective guidelines, nor are they subject to any public hearings. Because parking is not required for ADUs located within one half-mile walking distance of public transit, ADUs in Carmel-by-the-Sea do not require parking.

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 Program 1.4.A to eliminate unnecessary use permits.

Transitional and Supportive Housing
The 6th Cycle Housing Element includes Program 3.3.A 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
The 6th Cycle Housing Element includes Program 3.3.B to develop by-right procedures for processing low-barrier navigation centers.

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

The primary governmental constraints and the 6th Cycle Housing Element programs to address them, are shown in Table B-13 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 2
Appendix B – Housing Constraints B-56 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table B-13 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: Establish Minimum Densities
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: Establish Minimum Densities
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 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.

Attachment 2
Appendix B – Housing Constraints B-57 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 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 2
Appendix B – Housing Constraints B-58 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 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 2
Appendix B – Housing Constraints B-59 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 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 2
Appendix B – Housing Constraints B-60 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 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 2
Appendix B – Housing Constraints B-61 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 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 assumed the base density of 22 dwelling units per acre identified in the Carmel Municipal Code for the CC, SC, and RC Districts for the 5th cycle sites inventory. Due to small lot sizes throughout the commercial districts, this density results in estimates of 1-8 units per site, with the majority of sites accommodating 1-2 units. A total development potential of 78 units was identified for the commercial districts. While a lack of water resources generally precludes higher-density projects, a review of development trends during the 5th cycle showed densities ranging from 7 dwelling units per acre to 44 dwelling units per acre for projects in the CC, SC, and RC Districts. Carmel-by-the-Sea did not receive requests during the 5th cycle to develop below densities identified in the site's inventory therefore this is not a constraint to development. Additionally, the City identified a significant surplus of sites in the 5th cycle Housing Element for a total capacity of 164 housing units (the 2015-2023 RHNA was 31 units), ensuring that any property that developed at a lower density than projected would not adversely impact the City's ability to maintain sufficient sites throughout the planning period to achieve the RHNA.

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. The City has proposed a minimum density requirement for sites in the Central Commercial (CC), Service Commercial (SC), Residential and Limited Commercial (RC), and R-4 District (see Program 3.1.G in Chapter 2).

Seasonal Vacancies
Carmel-by-the-Sea has a 50% vacancy rate of which 80% is attributed to seasonal vacancies, given the community’s strong tourism industry. Second homeowners seeking seasonal homes skews the demand for housing, driving up rents and home prices and making it challenging for those working Attachment 2
Appendix B – Housing Constraints B-62 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 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.

On average (based on City data from seven (7) developments of vacant sites) there are 84 days between approval of a housing development and submittal of a building permit application, and 165 days between submittal of a building permit application and issuance of a building permit. The time between application approval and building permit issuance (249 days on average) is influenced by a number of factors, none of which are directly impacted by the City. Factors that may impact the timing of building permit issuance include: required technical or engineering studies; completion of construction drawings and detailed site and landscape design; securing construction and permanent financing; and retention of a building contractor and subcontractors. Generally, building permits are submitted in a timely manner after planning entitlements; however larger projects have experienced longer timeframes given supply chain issues and labor shortages, neither of which the City controls.

Environmental Justice Element Requirement
An Environmental Justice Element or equivalent is not required for Carmel-by-the-Sea because no disadvantaged communities exist within the city’s boundaries (as defined in Gov. Code, § 65302, (h)(4)(A)). “Disadvantaged communities” means an area identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code or 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 Attachment 2
Appendix B – Housing Constraints B-63 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 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.

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 Attachment 2
Appendix B – Housing Constraints B-64 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 California Building Code includes provisions associated with engineering design and building requirements that address seismic hazards. In addition, the City of Carmel-by-the-Sea General Plan includes policies addressing hazards from seismic activity.

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

Tsunami is a potential safety hazard as well as a hazard to property. The actual areas that will be impacted from a tsunami will vary depending on factors such as the size of the tsunami wave, tide level at the time of the tsunami, the wave source location and the wave direction. In general, areas adjacent to the shoreline that are below an elevation of approximately 15 to 20 feet above mean sea level appear to have a higher level of risk.

Flooding
Carmel is located on a sloping terrain that offers good storm water runoff into both the Pacific Ocean and the Carmel River. Only a small portion of the City’s southern tip is designated as a FEMA 100- year Flood Zone. 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:

Attachment 2
Appendix B – Housing Constraints B-65 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 1) Restrict or prohibit uses which are dangerous to health, safety, and property due to water or erosion hazards, or which result in damaging increases in erosion or flood heights or velocities; 2) Require that uses vulnerable to floods, including facilities which serve such uses, be protected against flood damage at the time of initial construction; 3) Control the alteration of natural floodplains, stream channels, and natural protective barriers, which help accommodate or channel floodwaters;
4) Control filling, grading, dredging, and other development which may increase flood damage; and 5) Prevent or regulate the construction of flood barriers which will unnaturally divert floodwaters or which may increase flood hazards in other areas. (Ord. 2018-03 § 1 (Exh. A § 4), 2018).

Coastal Erosion and Landslides
Erosion on sloped inland areas and at the shoreline (beach) has been a problem for much of Monterey County, including Carmel. The hazards due to erosion are difficult to separate from those due to flooding and landsliding. In some cases, erosion is a result of flood and landslide conditions; in others, rapid water runoff and landsliding can occur in areas subject to prolonged erosion. The preventive costs of erosion are generally included within flood control measures and the overall costs of hillside development. Adoption of the present state of the art procedures for erosion prevention in hillside areas will, in most cases, eliminate losses.

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

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

The primary non-governmental constraints and the 6th Cycle Housing Element programs to address them are shown in Table B-14 on the following page.

Attachment 2
Appendix B – Housing Constraints B-66 EMC Planning Group City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table B-14 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: Establish Minimum Densities Seasonal Vacancies Program 2.1.D: Establish Affordable Housing Trust Fund Attachment 2
Vacant and Available Sites C

APPENDIX
Attachment 2
Attachment 2
Table of Contents
APPENDIX C HOUSING SITES INVENTORY ANALYSIS .................................................... C-1 C.1 Introduction ........................................................................................................................... C-1 C.2 Regional Housing Needs Allocation ................................................................................... C-1 C.3 Overview of Sites Inventory ................................................................................................ C-3 C.4 Capacity Analysis of Sites.................................................................................................. C-20 C.5 Additional Opportunities for Residential Development and Affordable Housing ... C-72 C.6 AFFH Analysis of Sites ...................................................................................................... C-75 C.7 Conclusion .......................................................................................................................... C-102 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-5 Table C-4 Pipeline Projects, 2022-23 ..................................................................................... C-17 Table C-5 Capacity to Accommodate 2023-2031 RHNA................................................... C-20 Table C-6 Site #1 Description ................................................................................................ C-23 Table C-7 Site #1 Capacity Assumptions.............................................................................. C-23 Table C-8 Site #2 Description ................................................................................................ C-25 Table C-9 Site #2 Capacity Assumptions.............................................................................. C-25 Table C-10 Site #3 Description ................................................................................................ C-27 Table C-11 Site #3 Capacity Assumptions.............................................................................. C-27 Table C-12 Site #4 Description ................................................................................................ C-29 Table C-13 Site #4 Capacity Assumptions .............................................................................. C-29 Table C-14 Site #5 Description ................................................................................................ C-31 Table C-15 Site #5 Capacity Assumptions.............................................................................. C-31 Table C-16 Site #6 Description ................................................................................................ C-33 Attachment 2
Table C-17 Site #6 Capacity Assumptions.............................................................................. C-33 Table C-18 Site #7 Description ................................................................................................ C-35 Table C-19 Site #7 Capacity Assumptions.............................................................................. C-35 Table C-20 Site #8 Description ................................................................................................ C-38 Table C-21 Site #8 Capacity Assumptions.............................................................................. C-38 Table C-22 Site #9 Description ................................................................................................ C-40 Table C-23 Site #9 Capacity Assumptions.............................................................................. C-40 Table C-24 Site #10 Description .............................................................................................. C-42 Table C-25 Site #10 Capacity Assumptions............................................................................ C-42 Table C-26 Site #11 Description .............................................................................................. C-43 Table C-27 Site #12 Description .............................................................................................. C-45 Table C-28 Site #12 Capacity Assumptions............................................................................ C-45 Table C-29 Site #13 Description .............................................................................................. C-47 Table C-30 Site #13 Capacity Assumptions............................................................................ C-47 Table C-31 Site #14 Description .............................................................................................. C-49 Table C-32 Site #14 Capacity Assumptions............................................................................ C-49 Table C-33 Site #15 Description .............................................................................................. C-51 Table C-34 Site #15 Capacity Assumptions............................................................................ C-51 Table C-35 Site #16 Description .............................................................................................. C-53 Table C-36 Site #16 Capacity Assumptions............................................................................ C-53 Table C-37 Site #17 Description .............................................................................................. C-55 Table C-38 Site #17 Capacity Assumptions ............................................................................ C-55 Table C-39 Site #18 Description .............................................................................................. C-57 Table C-40 Site #18 Capacity Assumptions............................................................................ C-57 Table C-41 Site #19 Description .............................................................................................. C-59 Table C-42 Site #19 Capacity Assumptions............................................................................ C-59 Table C-43 Site #20 Description .............................................................................................. C-61 Attachment 2
Table C-44 Site #20 Capacity Assumptions............................................................................ C-61 Table C-45 Site #21 Description .............................................................................................. C-63 Table C-46 Site #21 Capacity Assumptions............................................................................ C-63 Table C-47 Site #22 Description .............................................................................................. C-65 Table C-48 Site #22 Capacity Assumptions............................................................................ C-65 Table C-49 Site #23 Description .............................................................................................. C-67 Table C-50 Site #23 Capacity Assumptions............................................................................ C-67 Table C-51 Site #24 Description .............................................................................................. C-69 Table C-52 Site #24 Capacity Assumptions............................................................................ C-69 Table C-53 Site #25 Description .............................................................................................. C-71 Table C-54 Site #25 Capacity Assumptions............................................................................ C-71 Table C-55 Existing Overnight Visitor Accommodation Locations ................................... C-73 Table C-56 Eligible Sites for Transfer of Development Rights........................................... C-74 Table C-57 AFFH Indicators Table ......................................................................................... C-77 Table C-58 Census Tracts by TCAC/HCD Opportunity Area Domains, 2023 ............... C-80 Table C-59 Site Inventory Unit Count by TCAC/HCD Opportunity Area, 2023 ........... C-80 Table C-60 Site Inventory Unit Count by Diversity Index, 2023......................................... C-86 Table C-61 Site Inventory Unit Count by Median Income and Poverty Status, 2021 ...... C-90 Table C-62 Sites Inventory Unit Count by Female-Headed Households, 2021 ................ C-94 Table C-63 Sites Inventory Unit Count by Population with a Disability, 2021 ................. C-95 Table C-64 Sites Inventory Unit Count by Overcrowding, 2021 ......................................... C-97 Table C-65 Site Inventory Unit Count by Cost Burdened Renter Households, 2021 ...... C-99 Figures
Figure C-1 Sites Inventory Map .................................................................................................. C-4 Figure C-2 Anticipated Housing Development Types .......................................................... C-15 Figure C-3 Sites Inventory Analysis by TCAC/HCD Opportunity Areas, 2023 .............. C-81 Figure C-4 Sites Inventory Analysis by TCAC/HCD Education Domain, 2021 ............. C-83 Attachment 2
Figure C-5 Sites Inventory Analysis by TCAC/HCD Economic Domain, 2023 ............. C-84 Figure C-6 Sites Inventory Analysis by CalEnviroScreen 4.0, 2021.................................... C-85 Figure C-7 Sites Inventory Analysis by Predominant Population, 2021 ............................ C-87 Figure C-8 Site Inventory Analysis by Racial Segregation, 2020 ......................................... C-89 Figure C-9 Sites Inventory Analysis by Median Income, 2021............................................ C-91 Figure C-10 Sites Inventory Analysis by Poverty Status, 2021 .............................................. C-92 Figure C-11 Sites Inventory Analysis by Population with a Disability, 2021....................... C-96 Figure C-12 Sites Inventory Analysis by Overcrowding, 2021 .............................................. C-98 Figure C-13 Sites Inventory Analysis by Cost Burdened Renter Households, 2021 ........ C-101 Figure C-14 Example Development Map............................................................................... C-103 Attachment 2
Appendix C – Housing Sites Inventory Analysis C-1 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 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 6th cycle RHNA resulted in a significantly higher number of housing units for which the Monterey Bay Area must plan compared to previous Housing Element 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 plan 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 during the 2014 to 2023 RHNA cycle. The housing need is divided into the four income categories of housing affordability.

Table C-1 shows Carmel-by-the-Sea’s RHNA for the planning period 2023 – 2031. 1 Final 2022 Regional Growth Forecast, AMBAG, November 18, 2020 Attachment 2
Appendix C – Housing Sites Inventory Analysis C-2 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table C-1 Carmel-by-the-Sea’s Regional Housing Needs Allocation – 2023–2031 Income Group
Carmel-bythe-Sea
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 0 0 0 37 37
Remaining RHNA 113 74 44 81 312
SOURCE: City of Carmel-by-the-Sea, Community Planning & Building Department Attachment 2
Appendix C – Housing Sites Inventory Analysis C-3 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 C.3 Overview of 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 accommodated on potential sites.

Per state law and Housing Program 1.1.A (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 includes a 17 percent buffer. 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.

Figure C-1, Housing Sites Inventory, shows an overview of the Sites Inventory Map that has been developed for Carmel-by-the-Sea’s 6th Cycle Housing Element Update. Table C-3, Housing Sites Inventory, provides details and capacity estimates for each of the parcels that comprise the 25 housing sites.

Attachment 2
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 Real
Casanova St.

Carmelo St.

San Antonio Ave.
6th Ave.
7th Ave.
9th Ave.
10th Ave.
11th Ave.
12th Ave.
13th Ave.

Santa Lucia Ave.

Sites Inventory
Carmel Housing & Safety Element Update
0 1050 feet
Figure C-1
Source: Monterey County GIS 2023, Google Earth 2023 Site Inventory Parcels City Limit
7 8
1 2
3 4 5
6 9
10 11
12 13 14
15 16
17 18
19 20
22 21
23 24
25 Attachment 2
Appendix C – Housing Sites Inventory Analysis C-5 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table C-3 Housing Sites Inventory
Site # Location
(Reference to ECO NW Study) APN Zoning General Plan Acreage Applied
Density
(DU/AC)
Minimum
Capacity Very Low Low Moderate Above Moderate
Primary Underutilized Sites
1 Sunset Center North Lot Site (#1),
East Side of San Carlos between 8th & 10th
Avenues
010143001000 A-2 OS/ Rec
Cultural 1.02 33 33 20 10 3 --
2 Sunset Center South Lot Site,
East Side of San Carlos between 8th & 10th
Avenues
010151001000 A-2 OS/ Rec
Cultural 1.84 33 60 30 25 5 --
3 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 44 56 28 11 17 -- 010104004000
4 Bruno's Market Site (#6)
NE Corner of Junipero & 6th, and
NW Corner of Torres & 6th
010095013000
RC RC 0.53 33 17 -- -- 5 12
010095012000
5 First Church of Christ Parking Lot (#8),
Lincoln 2-4 NW of 6th
010212027000
010212004000 SB 10 SB 10 0.28 33 9 2 1 3 3
010212026000
6 Red Cross Site (#10),
SE Corner of Dolores & 8th
010144015000
SB 10 SB 10 0.18 33 5 3 2 -- -- 010144016000
7 Girl Boy Girl,
SW Corner of Mission & 7th (#14) 010142001000 SC CC 0.18 33 5 -- -- -- 5 8 Carmel Foundation Site (#15),
NE Corner of Lincoln & 8th
010149012000
A-3 SFR 0.62 33 21 11 10 -- -- 010149010000
010149011000
010149001000
9 American Legion Site,
Dolores 2 SE 8th 010144014000 SB 10 SB 10 0.18 33 5 2 3 -- -- 10 AT&T Building
SW Corner of Junipero & 7th 010087012000 RC RC 0.35 33 11 -- -- -- 11 Appendix C – Housing Sites Inventory Analysis C-6 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Site # Location
(Reference to ECO NW Study) APN Zoning General Plan Acreage Applied
Density
(DU/AC)
Minimum
Capacity Very Low Low Moderate Above Moderate
11 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 6.78 228 96 64 33 35 Sites Recycled from 5th Cycle
12 Court of the Fountains
NW Corner Mission & 7th 010141003000 CC CC 0.37 33 12 -- -- -- 12 13 First American Title
7th 2 SW of Mission 010142013000 SC CC 0.07 33 2 -- -- -- 2 14 Office building
NE Corner Monte Verde & 7th 010191004000 RC RC 0.07 33 2 -- -- -- 2 15 Yafa
NW Corner Junipero & 5th 010097007000 SC CC 0.18 33 5 -- -- -- 5 16 Three Garages Site (#7) 010098004000 SC CC 0.11 33 3 -- -- -- 3 17 Carmel Realty Office Site (#4)
NE Corner 8th & Delores 010145008000 RC RC 0.19 33 6 -- -- -- 6 18 (Parashis) Millard Building
NW Corner Dolores & 6th 010138006000 CC CC 0.13 33 4 -- -- -- 4 19 The Agency
NW Corner Ocean & Dolores 010139001000 CC CC 0.09 33 2 -- -- -- 2 20 Sunset Terrace
NW Corner Mission & 8th 010142006000 RC RC 0.19 33 6 -- -- -- 6 21 Enzo's
San Carlos 2 SW of Ocean 010146001000 CC CC 0.15 33 4 -- -- -- 4 22 Doud Arcade
San Carlos 2 SW of Ocean 010146002000 CC CC 0.18 33 5 -- -- -- 5 23 Paseo San Carlos Square
San Carlos 2 NW of 7th Ave 010146003000 CC CC 0.18 33 5 -- -- -- 5 24 Paseo San Carlos Square
San Carlos 2 NW of 7th Ave 010146004000 CC CC 0.09 33 2 -- -- -- 2 25 Carmel Office Supply & Business Center
Lincoln SE of Ocean 010147010000 CC CC 0.09 33 2 -- -- -- 2 Appendix C – Housing Sites Inventory Analysis C-7 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Site # Location
(Reference to ECO NW Study) APN Zoning General Plan Acreage Applied
Density
(DU/AC)
Minimum
Capacity Very Low Low Moderate Above Moderate
Subtotal Recycled Sites 2.09 60 0 0 0 60
TOTAL 288 96 64 33 95
Hospitality Employee Housing 31 8 12 11 0
ADUs 34 10 10 10 4
Pipeline Projects 57 7 7 7 36
Subtotal Other 122 25 29 28 40
GRAND TOTAL 410 121 93 61 135
RHNA 349 113 74 44 118
Difference 61 8 19 17 17
Difference (Percent) 117% 107% 126% 139% 114%
SOURCE: City of Carmel-by-the-Sea
Appendix C – Housing Sites Inventory Analysis C-8 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Sites to Accommodate Lower-Income RHNA
Sites Used in Previous Planning Periods Housing Elements Government Code Section 65583.2(c)
Each site includes information about whether it was used in a prior housing element planning period, if it is currently vacant, and the number of anticipated housing units according to income category.

Appropriate Zoning
Government Code Section 65583.2(c)(3)
For suburban jurisdictions such as Carmel-by-the-Sea, sites allowing at least 20 units per acre are appropriate to accommodate lower-income housing. The density range for all parcels that anticipate housing units to meet the lower-income RHNA include the default density. The General Plan designation that meets this prerequisite is Multi-Family Residential (and/or zoning at R-4), with a maximum density of up to 33 dwelling units per acre or 44 dwelling units per acre, when affordable units are provided.

The City is implementing Program 3.1.G to establish a minimum density of 33 dwelling units per acre in the Commercial (SC, RC, and CC) Districts and the Multi-Family Residential (R-4) District, to enable a higher yield of residential units, rather than larger units at a lower yield. Increased unit yield is likely to result in increased feasibility for the development of affordable units.

The City intends to utilize SB 10 to maximize development on one (1) faith-based organization site and two (2) nonprofit mission-oriented sites. All three sites have expressed property owner interest in developing affordable housing. Additionally, the City has included three (3) city-owned sites for the development of affordable housing, which will be noticed and leased in compliance with the Surplus Land Act.

Site Size
Government Code Section 65583.2(c)(2)(A), (B), and (C)
Several factors outside of the City’s control impact the availability and developability of land in the City including, the significant acreage that is within the coastal zone and the City’s built-out nature.

Additionally, the original subdivision maps for the City (1888 and 1902) established commercial parcels between 2,500 square feet (0.057 acres) and 3,000 square feet (0.068 acres), and residential parcels at 4,000 square feet (0.091 acres), many of which remain this size today. As a result, approximately 78 percent of sites included in the housing site inventory are less than 0.5 acres. The sites included in the site inventory have been chosen by the City upon supportive evidence to be the most developable for new housing in the eight-year planning cycle. Several of the sites have property owner interest and the anticipated developments are supported by the City.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-9 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 No Net Loss
Government Code Section 65863
Through the eight-year planning period of the 6th Cycle Housing Element, pursuant to the No Net Loss Law, City staff is required to identify an alternative site(s) if a site is developed at a lesser ratio of lower-income units than anticipated with this Sites Inventory. Program 1.1.A will regulate this requirement of No Net Loss for the 6th cycle (see Chapter 2).

Reliance on Nonvacant Sites to Accommodate More than 50 Percent of the RHNA for LowerIncome Units Government Code Section 65583.2(g)(2)
More than 50 percent of the sites intended to accommodate the RHNA for lower-income households are projected to be developed at nonvacant sites.

As part of the resolution adopting the housing elements, findings stating the uses on nonvacant sites identified in the inventory to accommodate the RHNA for lower-income are likely to be discontinued during the planning period and the factors used to make that determination. The City will include this either in the body or in the recital section of the resolution.

Findings and a description of the substantial evidence can be found within the subsections for each area. The “substantial evidence” indicates that the existing use will not impede further residential development or that the existing use will be discontinued during the planning period.

City-Owned Sites and Surplus Land Act
The Surplus Land Act (SLA) is a “right of first refusal” law that requires all local agencies to offer surplus land for sale or lease to affordable home developers and certain other entities before selling or leasing the land to any other individual or entity (Government Code Sections 54220-54234). Any time a local agency disposes of land, it must follow the SLA unless the land qualifies as exempt surplus land. Dispositions include both sales and leases (unless the lease is less than five years or where no demolition or development will occur during the term of the lease).

The City has identified four (4) underutilized parcels (Sites #1-3) with intentions to make them available through the Surplus Land Act process over the next five years for the potential development of 149 units (124 affordable to lower-income households and 25 for moderate-income households). These sites are planned to remain in City ownership and are anticipated to be made available for development through long-term leases. These sites will be made available for affordable housing consistent with the requirements of the Surplus Land Act.

Specific planned actions by the City include the establishment of development standards (for the Sunset Center site, specifically), development of a project description, publication of an RFP within six months, selection of a development partner, two years to enter into an Exclusive Negotiation Attachment 2
Appendix C – Housing Sites Inventory Analysis C-10 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Agreement, two years for land use entitlements and development agreements, 6-12 months for building permit issuance, and 2-3 years for construction. Council approval is required for each step in this process. The City has included Program 1.1.B to establish and monitor the City’s anticipated timeline and actions for entering into the SLA process.

Vacant and Underutilized Sites
Nonvacant Site Analysis Methodology
Government Code Section 65583.2(g)(2)
Existing Uses
Each site included in the Site Inventory has been selected by the City based on its perceived developability and/or expressed interest by a property owner. Twenty (20) percent of the sites in the Site Inventory are zoned residential including the R-1 and R-4 districts. However, all zoning districts within the city allow residential uses.

Many sites included in the Sites Inventory are zoned commercial. This is in part, a result of the City’s Municipal Code requirement that all newly constructed second-story floor area, including area in new buildings, remodeled buildings and replacement, rebuilt or reconstructed buildings, to be occupied by residential dwellings only and shall not be used for any commercial land use (CMC

17.14.050F). Currently, the Commercial District has a number of vacant space in need of remodeling and building code updates. Timing is ripe for redevelopment and/or second story additions to accommodate residential units, as remodels and repairs are currently being undertaken and are expected to continue.

These residential unit requirements have not been an impediment to development in the commercial district, and have successfully resulted in two-story structures that support residential development on the second floor and commercial on the ground floor. The City has not received applications or requests for single-story developments in the commercial district. This is in part due to land value and the cost of construction, which does not support the development of single-story commercial buildings in Carmel-by-the-Sea. The City’s effort to support mixed-use development has been a strategy to encourage the development of housing, despite its built-out nature. Many commercial property owners have expressed interest in converting underutilized second floor office space to residential use or constructing a second story to accommodate residential units.

A goal in selecting sites has been to minimize displacement. For many sites, intentions for future housing include property owner interest in adding a second story to existing commercial structures to develop residential units. Conversion of motel units is another strategy the City is employing to develop residential units, as well as converting office space, and parking lots.

While the City does not anticipate the displacement of low- or very low-income households, the City is prepared to comply with the requirements of Government Code section 65915, subdivision (c)(3).

Program 2.1.C in Chapter 2 will be in effect to require replacement housing units subject to the Attachment 2
Appendix C – Housing Sites Inventory Analysis C-11 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 requirements of the Government Code. Additionally, CMC 17.14.050.A prohibits the conversion or demolition of an existing residential unit unless replacement housing is provided subject to the findings in 17.64.070.

Development Trends
Historically, residential development in Carmel-by-the-Sea has been most feasible using densities ranging between 22-33 dwelling units per acre. Development trends in the City reveal successful residential development in the commercial district primarily through office conversion and secondstory additions for residential units. In the last 10 years, the City has not had any one-story commercial developments. All new construction in the commercial district has consisted of twostory buildings with second-floor residential use (as required in CMC Section 17.14.050.F).

This has been a successful strategy utilized by the City to enable the development of residential units within the constraints of limited developable land. The following projects are examples of 5th cycle residential development in Carmel-by-the-Sea, which have been considered in determining the realistic capacity of sites identified in the Site Inventory.

Del Dono I: In 2016 the Planning Commission approved the demolition of an 11,000-square-foot two-story commercial building in the Service Commercial (SC) District for the construction of a 11,800-square foot two-story mixed-use building with four (4) condominiums (1,450 square feet to 1,550 square feet) and four (4) low/moderate-income apartments (500 square feet each). The property is 8,000 square feet (0.18 acres). The residential density on this parcel is 44 du/acre.

Del Dono II: In 2018 the Planning Commission approved the demolition of a 3,650-square-foot single-story commercial building in the Service Commercial (SC) District for the construction of a 11,800-square-foot two-story mixed-use building with four (4) condominiums and four (4) apartments. The property is 8,000 square feet (0.18 acres). The residential density on this parcel is 44 du/acre.

Both the Del Dono I and II projects received land use entitlements and building permits. While in the process of constructing the underground parking structure, the developer became financially insolvent and ultimately sold the property. In 2023, the new owner obtained approval from the Planning Commission for a new mixed-use project with 12 market rate apartments. The residential density for the new project is 33 dwelling units/acre.

Fink Condominium: In 2017 the Planning Commission approved the Fink Condominium on November 8, 2017. The 4,000-square-foot site contains a 3,800-square-foot one-story commercial building with two tenants, a full-service restaurant, and a delicatessen. The project consisted of a second-floor addition for a 1,570-square-foot condominium. The ground-floor commercial spaces remained open during construction, experiencing limited closures due to construction activity. The project density is 11 dwelling units per acre. The development consists of one (1) condominium unit for ownership and one commercial unit.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-12 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 This project is an example of a second-floor addition to an existing one-story commercial building in the Central Commercial (CC) District where existing tenants were not displaced. It is also an example of a missed opportunity for more housing if a minimum density existed. No appeals of the project were filed. The project has been constructed and received final occupancy.

Lincoln Lane: In 2018, the Planning Commission approved an extensive remodel and additions to a commercial property. The 8,000-square-foot site contained a 6,700-square-foot multi-tenant commercial building with a central courtyard. The project consisted of extensive remodeling and additions to convert a portion of the commercial square footage into two rental apartment units.

The building was previously occupied by retail and office uses. The project density is 11 dwelling units per acre.

This project is an example of revitalizing an underutilized commercial property with residential uses while preserving the central courtyard in the Service Commercial (SC) District. The project is also an example of a missed opportunity for more housing if a minimum density existed. No appeals of the project were filed. Construction on the project has been completed and received final occupancy.

Marliz Estate: In 2018 the Community Planning & Building Director approved minor exterior modifications to a mixed-use building in the Central Commercial (CC) District to facilitate the rehabilitation of a 1,000-square-foot apartment. The property is 2,750 square feet (0.06 acres). The residential density on this mixed-use parcel is 17 du/acre.

Brigantino: In 2018 the Community Planning & Building Director approve an interior and exterior remodel of a duplex in the Residential & Limited Commercial (RC) District. The property is 3,500- square-feet (0.08 acres). The residential density on this two-unit parcel is 25 du/acre.

MDC Real Estate: In 2018 a building permit was approved to convert a second-floor office in a two-story commercial building in the Central Commercial (CC) District to an apartment. The property is 4,000 square feet (0.09 acres). The residential density on this mixed-use parcel is 11 du/acre.

Brosche Building: In 2019, an extensive remodel of the historic Brosche Building was approved by the Community Planning & Building Director. The 3,470-square-foot site contains a two-story, 8,450-square-foot commercial building with ground-floor retail and second-floor offices. The project included converting the second-floor office space into two residential rental units. The project density is 28 dwelling units per acre.

This project is an example of a second-floor conversion of office space to residential in the Central Commercial (CC) District. The ground-floor retail tenant temporarily relocated to a nearby community and has since returned to a new commercial space within the village. The project is also an example of a missed opportunity for more housing if a minimum density existed. The project has been constructed and received final occupancy.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-13 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Flint-Herman Residence: In 2019 the Community Planning & Building Director approved an extensive interior and exterior remodel of a 900-square-foot commercial building including a 150- square-foot addition in the Residential & Limited Commercial (RC) District for the conversion of commercial space to a residential unit. The property is 3,500 square feet (0.08 acres). The residential density on this two-unit parcel is 25 dwelling units per acre.

Der Ling Building: In 2019, the Community Planning & Building Director approved the conversion of the second-floor retail and storage space to a residential unit. The 3,000-square-foot site contains the historic Der Ling building. The two-story building was previously occupied by commercial uses, with a portion of the second floor utilized as storage space. The entire 1,300- square-foot second floor has been converted into a residential rental unit. The project density is 16 dwelling units per acre.

This project is an example of a second-floor conversion of retail and storage space in a historic commercial building to residential use in the Central Commercial (CC) District. The remodeling of the building was completed without displacing the ground-floor retail tenant. The project is also an example of a missed opportunity for more housing if a minimum density existed. The project has been constructed and received final occupancy.

Great Valley Holdings/Clark Apartments: In 2020, the Planning Commission approved the construction of a new two-story mixed-use building. The 3,600-square-foot site contained a 2,200- square-foot two-story commercial building with surface parking. The project consisted of demolishing the existing building and constructing a new 3,500-square-foot two-story mixed-use building for a ground-floor restaurant and two second-floor rental apartment units. The building was previously occupied on both floors by a restaurant and had been vacant for a few years. The project density is 25 dwelling units per acre.

This project is an example of redeveloping an underutilized site with a new two-story mixed-use building in the Service Commercial (SC) District. No appeals of the project were filed. The project has been constructed and received final occupancy.

Schultz: In 2020 the Community Planning & Building Director approved an interior and exterior remodel of a commercial space in a 4,500-square-foot multi-tenant two-story mixed-use building in the Service Commercial (SC) District for the conversion of second-floor commercial space to a 1,160-square-foot apartment. The property is 4,000 square feet (0.09 acres). The residential density on this mixed-use parcel is 22 du/acre.

Parashis: In 2020 the Community Planning & Building Director approved minor exterior alterations to a 6,700-square-foot two-story commercial building in the Central Commercial (CC) District to facilitate the conversion of second-floor office space to a 2,118-square-foot apartment.

The property is 6,400 square feet (0.15 acres). The residential density on this mixed-use parcel is 7 du/acre.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-14 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 While many of the projects listed above utilized densities between 22-33 dwelling units per acre, some developed at 44 dwelling units per acre (Del Dono I and Del Dono II) and a few developed below 20 dwelling units per acre (Fink Condominium; Lincoln Lane; MDC Real Estate; Marliz Estate; Der Ling Building; and Parashis). Additionally, all but one of the projects listed above are less than 0.5 acres. These factors were taken into consideration when determining appropriate densities to apply to the Sites Inventory, and supports the City’s decision to amend the base zoning for the commercial zoning districts (SC, RC, and CC) and the multi-family residential district (R-4) to establish a minimum density of 33 dwelling units per acre. The intention of this zoning code amendment is to facilitate the development of residential units at a higher yield, rather than enabling the development of larger units at a lower yield.

Considerations for Capacity Analysis
Dry Utilities and Water Capacity
Current or planned availability and accessibility of sufficient water, sewer, and dry utilities has also been considered and reported for each site. All sites have sufficient dry utilities. Program 1.2.A has been included to grant priority water and sewer services to proposed developments that include units affordable to lower-income households (see Chapter 2).

Site Typology
Government Code Section 65583.2 (c)
This housing plan and Site Inventory provides capacity for a variety of housing types; including multi-family rental housing, factory-built housing, mobile homes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. The Zoning Ordinance and General Plan for the sites allow the housing types listed above. Figure C-2 illustrates the anticipated housing development types included in this site inventory.

To enable the development of a variety of housing types, the City has expanded possible options for property owners to construct, rehabilitate, convert, or add to an existing single-story structure including:
 Zoning changes included with programs in Chapter 2 that incentivize existing overnight visitor accommodation sites to be converted into multi-family housing units;  Development of City property, which has the highest likelihood of including lower-income units and provide additional multi-family opportunities; and
 By exercising Senate Bill (SB) 10, the City will enable multi-family units within otherwise singlefamily zoned neighborhoods.

Adjustment Factors for Realistic Capacity
Government Code Section 65583.2(c)(2)
Attachment 2
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-2
Source: Monterey County GIS 2023,
Google Earth 2023 Second floor addition or full
redevelopment of commercial sites
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 2
Appendix C – Housing Sites Inventory Analysis C-16 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Land use controls and site improvement requirements have been analyzed for constraints within Appendix B – Housing Constraints, and necessary changes to the review process are included as programs within Chapter 2 – Goals, Policies and Programs. Additionally, the City will amend the Municipal Code base zoning for the commercial zoning districts (SC, RC, and CC) and the multifamily residential (R-4) zoning district to establish a minimum density of 33 dwelling units per acre, to increase the potential yield of residential units. The realistic development capacity for the sites begins with assuming those process changes to be in place by or prior to December 2024. Generally, the following adjustment factors have been considered for determining realistic capacity of the sites:
 Site geometry, on-site improvements, and utility easements;  Current market demand for medium-density housing types, current cost of construction, and property owner interest in development; and
 Small lot sizes, limited developable sites, and high demand for new units.

These factors may slightly differ based on a site-by-site analysis. Typical densities of existing or approved residential developments at similar site sizes in Carmel-by-the-Sea have been considered to discover a yield percentage of the minimum density used for the pipeline projects in Table C-4.

Recent projects, including three of the four pipeline projects, utilize a minimum of 33 dwelling units per acre to develop residential units within the commercial district. More details for the pipeline projects are provided in the section below.

Pipeline Projects
Pipeline projects include entitled, permitted, or constructed projects. Table C-4 exhibits four (4) current housing projects and 26 ADUs that have earned approval for entitlements and/or permits and will begin construction during the 6th Cycle Housing Element certification. Table C-4 also includes two (2) pending housing project that are currently in the planning review process.

Ulrika Plaza
The Planning Commission approved the Ulrika Plaza project on August 9, 2023. The 16,000-squarefoot (0.37 acres) project site includes a 22,400-square-foot mixed-use building with 9,000 square feet of ground-floor retail, 12 market-rate residential units, and 28 parking spaces in an underground garage. The project density is 33 dwelling units per acre.

The project was previously known as Del Dono and Del Dono II. The project resulted from merging two 8,000-square-foot lots to construct two (2) mixed-use buildings, each containing ground-floor commercial space and eight residential units (16 residential units total at a density of 44 dwelling units per acre). A two-story commercial building with underground parking was demolished on the north lot. A one-story commercial building with a surface parking lot was demolished on the south lot. The developer lost their funding during construction. The property was subsequently sold, and the project has been redesigned as Ulrika Plaza.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-17 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table C-4 Pipeline Projects, 2022-23
APN Project
Name Zoning General Plan Area
Min.

Density
(du/ac)
VLI LI MI AM Tenure Entitlement
Status
010138003000
Ulrika Plaza SC Core Commercial 0.37 33 -- -- -- 12 Rental Approved 010138021000 010145012000
010145024000 JB Pastor SC Core Commercial 0.27 33 -- -- -- 8 Rental Pending 010145023000
010146010000 Scandia
Lopez CC Core Commercial 0.09 33 -- -- -- 3 Rental Approved 010021014000
Carmel
Resort Inn R-1 Single-Family
Residential 0.74 11 -- -- -- 8 Ownership Pending
010021013000
010021012000
010021011000
010021030000
010021031000
010021032000
010021033000
Subtotal 0 0 0 31
ADUs 7 7 7 5 Rental Approved
Grand Total 7 7 7 36 57
SOURCE: City of Carmel-by-the-Sea, 2023
NOTES: VLI = very low-income; LI = low-income; MI = moderate-income; AM = above moderate-income.

Appendix C – Housing Sites Inventory Analysis C-18 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 This project is an example of the redevelopment of underutilized commercial buildings and a surface parking lot in the Service Commercial (SC) District. All land use entitlements have been obtained.

No appeals of the project were filed. The City is currently waiting for the submittal of a building permit application.

JB Pastor Building
The Planning Division is processing a new application to develop a 12,000-square-foot (0.27 acres) commercial lot. The site comprises three (3) lots of record and is currently developed with a twostory, historic community building, surface parking, one-story commercial building, and a two-story mixed building (office & residential). The developer proposes demolishing all existing site improvements, excluding the historic community room, and constructing a new 15,350-square-foot two-story mixed-use building with ground-floor commercial, eight (8) market-rate second-floor apartments, and 21 parking spaces in an underground garage. The proposed project density is 29 dwelling units per acre.

This project is an example of the redevelopment of underutilized commercial properties, including a surface parking lot in the Service Commercial (SC) District. The developer has requested that the Planning Commission conduct a preliminary review and provide feedback on the design before making a formal application.

Scandia Lopez/Hakim
The Planning Commission approved additions to the historic Percy Parkes Building for three (3) new residential units on July 13, 2022. The 4,000-square-foot (0.09 acres) project site includes a 2,750-square-foot one-story historic commercial building. The project consists of a second-floor addition to the existing commercial building and the construction of a two-story building in the courtyard behind the existing building. The project density is 33 dwelling units per acre.

This project is an example of additions to a one-story historic commercial building in the Central Commercial (CC) District to provide housing. The commercial tenant relocated to another retail space within the village prior to approval of the project. All land use entitlements have been obtained. No appeals of the project were filed. The City is currently waiting for the submittal of a building permit application.

Carmel Resort Inn Site
The Planning Commission approved the construction of a new single-family dwelling on Lot 2 on April 12, 2023. The 4,000-square-foot (0.091 acres) site includes a 1,971-square-foot two-story single-family dwelling inclusive of a 300-square-foot basement and 200-square-foot attached garage.

The project density is 11 dwelling units per acre.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-19 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 The Planning Commission approved the construction of a new single-family dwelling on Lot 4 on March 8, 2023. The 4,000-square-foot site includes a 1,995-square-foot two-story single-family dwelling inclusive of a 300-square-foot basement and 210-square-foot detached garage. The project density is 11 dwelling units per acre.

On August 1, 2023, an application was submitted to construct a new two-story single-family dwelling on Lot 10. The 4,000-square-foot site is proposed to contain a 1,900-square-foot singlefamily dwelling inclusive of a 100-square-foot basement and a 227-square-foot attached garage. The project density is 11 dwelling units per acre. The application is in review.

On August 1, 2023, an application was submitted to construct a new two-story single-family dwelling on Lot 12. The 4,000-square-foot site is proposed to contain a 1,900-square-foot singlefamily dwelling inclusive of a 100-square-foot basement and 243-square-foot attached garage. The project density is 11 dwelling units per acre. The application is in review.

Accessory Dwelling Units
Since July 1, 2023, the City has issued certificates of occupancy for four (4) new accessory dwelling units, and issued building permits for five (5) additional ADUs for a total of nine (9) ADUs.

Furthermore, building permits issued prior to July 1, 2023 include 13 additional ADUs which are currently under construction and are expected to be completed during the 6th Cycle Housing Element planning period. An additional four (4) building permit applications for ADUs are currently in building plan check review and are also expected to be constructed during the planning period. In total, the City expects that at least 26 new ADUs will be completed during the planning period. The city continues to see a strong interest in ADUs and expects that number to be even higher by June 30, 2031. The following details ADUs that have a certificate of occupancy, building permit, or are under construction as of July 1, 2023.

Certificate of Occupancy Issued:
009-162-023 Sayre Finaled: 10/31/2023
010-251-036 McLeod Finaled: 11/22/2023
010-102-009 Lyons Finaled: 12/6/2023
010-193-024 Altomare Finaled: 12/20/2023
Building Permit Issued:
010-269-005 Witt Issued: 12/18/2019
010-232-012 Westphal Issued: 12/07/2020
009-382-019 Howley Issued: 03/23/2021
010-037-003 Laney Issued: 10/11/2021
010-284-003 Jung Issued: 10/12/2021
010-103-015 Ardiaz Issued: 01/13/2022
010-331-044 Reed Issued: 06/09/2022
Attachment 2
Appendix C – Housing Sites Inventory Analysis C-20 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 010-251-002 MacDonald Issued: 08/25/2022
010-311-016 Soo Issued: 10/10/2022
010-312-004 Paboojian Issued: 10/13/2022
010-126-017 Bauer Issued: 12/06/2022
010-164-015 Eaton Issued: 12/22/2022
010-251-035 McLeod Issued: 02/01/2023
010-031-021 Heyermann Issued: 06/27/2023
010-076-014 Coria Issued: 08/11/2023
010-043-005 Marazzo Issued: 08/14/2023
010-174-024 Tilton Issued: 09/27/2023
010-029-009 Mitchell-Bercham Issued: 10/12/2023
009-352-016 Osborne Issued: 10/19/2023
010-265-010 DeCaussin Issued: 11/06/2023
010-211-004 Strimiatis Issued: 11/20/2023
010-301-020 Libreri Issued: 12/23/2023
C.4 Capacity Analysis of Sites
This section provides details on vacant and underutilized sites that are available for housing development in the city. There is sufficient capacity with existing zoning to accommodate the RHNA for the jurisdiction by income, per Government Code Section 65583(a)(3). Table C-5, Capacity to Accommodate 2023-2031 RHNA, shows the City of Carmel-by-the-Sea’s capacity to meet the RHNA.

Table C-5 Capacity to Accommodate 2023-2031 RHNA
Adjustment Factor
Very LowIncome
Units
LowIncome
Units
ModerateIncome
Units
Above
ModerateIncome
Units
Total
2023–2031 RHNA 113 74 44 118 349
Pipeline Projects 7 7 7 36 57
Underutilized Sites 96 64 33 35 228
5th Cycle Recycled Sites 0 0 0 60 60
Hospitality Employee Housing 8 12 11 0 31
ADUs 10 10 10 4 34
Total 121 93 61 135 410
Surplus at 117% of RHNA 107% 126% 139% 114%
SOURCE: City of Carmel-by-the-Sea, 2023
Attachment 2
Appendix C – Housing Sites Inventory Analysis C-21 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 The City has identified 25 housing opportunity sites and 57 pipeline housing projects (including 26 ADUs) capable of accommodating 345 housing units. In addition, the City has developed a suite of new incentives to enable housing including:
 Incentivizing 31 hotel owners in the community to provide on-site housing for lower-income hospitality employees; and
 Continuing to incentivize an existing accessory dwelling unit program capable of providing additional lower-income housing, through which the City anticipates at least 34 ADUs to be constructed in the planning cycle.

Altogether, these housing resources have the potential to accommodate 410 units, approximately 117 percent of Carmel-by-the-Sea’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 housing opportunity sites is considered conservative.

The redevelopment potential for these underutilized sites is supported, in part, by a 2023 housing feasibility study undertaken by the City in partnership with ECONorthwest in preparation for the City’s 6th Cycle Housing Element update.2
This study provided an in-depth analysis of the
redevelopment potential for 11 underutilized sites (the January 2023 feasibility study is attached in its entirety as Appendix F).

A description of each underutilized site, including a photograph of the site, is presented in the following section.

Primary Underutilized Sites
Site #1: Sunset Center North Parking Lot Site
Site #1, the north lot at Sunset Center, is a large (1.02 acre) parking lot with no improvements other than paving. The site is City-owned and currently zoned A-2.

Developed at a minimum of 33 dwelling units per acre, the gross acreage of the site would allow a minimum of 33
units to accommodate 20 very low-, 10 low, and three (3) moderate-income units.

When factoring in adjustments for potential land use
controls and site improvements, realistic capacity of the site, and typical densities, the net acreage of the site would yield a total of 28 units to accommodate 20 very low- and eight (8) low-income units (Tables C-6 and C-7). Based on 2 ECO Northwest, January 27, 2023. “Housing Element Analysis for the City of Carmel by-the-Sea.” “I live near the Sunset
Center. I would love to
see that made into a
usable space, and will
completely support your
efforts to do that. So, go
for it. Have courage and
get this work done.”
May 24, 2023 Housing Ad
Hoc Committee Community
Meeting Attendee
Attachment 2
Appendix C – Housing Sites Inventory Analysis C-22 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 recent developments, the City has determined 33 dwelling units per acre to be the most feasible density for development on this site and intends to achieve this density. The City’s confidence in achieving 33 dwelling units per acre is supported by past projects, on-site improvements have already taken place, site geometry is not an obstacle, and the City’s ownership of the parcel.

Additionally, the City proposes a zoning code amendment requiring a minimum density of 33 dwelling units per acre ensuring that at least 33 units will be developed.

Currently, the A-2 zoning district allows senior housing (55+), however development standards are not in place. As a result, design review is required to develop, which lengthens the development process and may lend to subjectivity in the approval process. To enable the development of affordable senior housing, Program 1.3.E has been included in this housing element to amend the A-2 zoning district to define clear development and design standards (see Chapter 2). This amendment will remove potential regulatory constraints to the development of the site.

The City has successfully entered into lease agreements for the utilization of surplus land. For example, the Carmel Foundation is currently in a long-term lease agreement with the City to provide residential apartment units for senior citizens. Additionally, Flanders Mansion is currently in a lease agreement process with the City to utilize surplus land. To ensure the Sunset Center North Parking Lot site is developed for residential use, the City has included Program 1.1.B to establish and monitor processes for utilization of city-owned parcels to develop housing in the eight-year planning cycle (see Chapter 2). The City intends to establish and implement development standards for the site (including Site #2, the south parking lot). Following approved development standards, the City will make the property available through the Surplus Land Act process, develop a project description, and establish an RFP process to solicit developers. The City intends to target an Exclusive Negotiating Agreement by Fall 2025 and land use entitlements issuance by Winter 2026.

The City’s intention for development of this site includes partnering with an affordable housing developer to enable the development of deed-restricted residential units over podium parking. The City’s existing in-lieu fee for parking will be used to fund, in part, the development of podium parking. The City currently provides reduced parking requirements for affordable housing at 0.5 spaces per unit and 0.3 spaces per unit for senior housing. To address the parking requirements, Program 3.1.E has been included in this housing element to reduce parking requirements for affordable housing developments and waive in-lieu fees for affordable units (see Chapter 2).

As previously discussed, the City will follow the requirements of the Surplus Land Act to lease the land to facilitate the development of affordable residential units. This process includes the establishment of development standards for the Sunset Center site, development of a project description, publication of an RFP within six months, selection of a development partner, two years to enter into an Exclusive Negotiation Agreement, two years for land use entitlements and Attachment 2
Appendix C – Housing Sites Inventory Analysis C-23 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 development agreements, 6-12 months for building permit issuance, and 2-3 years for construction.

Council approval is required for each step in this process. The City has included Program 1.1.B to establish and monitor the City’s anticipated timeline and actions for entering into the SLA process.

Table C-6 Site #1 Description
Site Description Site Image & Capacity Calculation
Address East Side of San Carlos between 8th
and 10th Ave
APN 010-143-001-000
By-Right with 20%
Affordable No, not used in previous cycle.

Size of Site 1.02 acres
Zoning A-2
Allowable Density Minimum 33 du/ac
Applied RHNA
Affordability
Very low-income: 20 units
Low-income: 10 units
Moderate-income: 3 units
Existing Use Non-Vacant; parking lot
Infrastructure
Availability Yes, no constraints. Realistic Capacity utilizing factors = (1.02 X 33) (.95)(.95) = 28 units
84% of minimum density Environmental
Constraints None known
SOURCE: City of Carmel-by-the-Sea
NOTE: *A-2 Zoning District does not have development standards in place. City is proposing a minimum of 33 dwelling units per acre for the zone see Program

1.3.E in Chapter 2 for full details.

Table C-7 Site #1 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 95% For net acreage due to utility easement needs.

Realistic capacity of the site 100%
Based on market demand for medium-density housing types such as condominiums, apartments, townhomes, and single-family and current cost of construction.

Typical densities 95%
Future medium-density projects in Carmel-by-the-Sea are more likely to be built out close to maximum density due to lot sizes, limited developable sites, and very high demand for new units.

Developed at a minimum of 33 dwelling units per acre, the gross acreage of the site would allow a minimum of 60 units to accommodate 30 very low-, 25 low-, and five (5) moderate-income units.

As discussed with Site #1, the A-2 zoning district currently allows senior housing (55+), but does not have development standards in place, which can pose constraints to timely development.

Program 1.3.E is included in the housing element to establish and monitor amendments to the A-2 zoning district, to define design and development standards (see Chapter 2). This amendment will remove potential regulatory constraints to the development of the site.

The City’s long-term lease agreement with the Carmel Foundation speaks to the City’s track record for utilizing efficient processes for noticing and contract development under the Surplus Land Act.

To ensure the Sunset Center South Parking Lot site is developed for residential use, the City has included Program 1.1.B to establish and monitor processes for utilization of city-owned parcels to develop housing in the eight-year planning cycle (see Chapter 2). The City intends to establish and implement development standards for the site (including Site #1, the south parking lot). Following approved development standards, the City will make the property available through the Surplus Land Act process, develop a project description, and establish an RFP process to solicit developers.

The City intends to target an Exclusive Negotiating Agreement by Fall 2025 and land use entitlements issuance by Winter 2026.

Similar to Site #1, the City’s intention for development of this site includes the development of residential units over podium parking. The City’s existing in-lieu fee for parking will be used to fund, in part, the development of podium parking. The City currently provides reduced parking requirements for affordable housing at .5 spaces per unit and .3 spaces per unit for senior housing.

To address the parking requirements, Program 3.1.E has been included in this housing element to reduce parking requirements for affordable housing developments and waive in-lieu fees for affordable units (see Chapter 2).

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-25 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 The entitlement process for this site is the same as Site #1. The City will follow the requirements of the Surplus Land Act to lease the land to facilitate the development of affordable residential units.

This process includes the establishment of development standards for the Sunset Center site, development of a project description, publication of an RFP within six months, selection of a development partner, two years to enter into an Exclusive Negotiation Agreement, two years for land use entitlements and development agreements, 6-12 months for building permit issuance, and 2-3 years for construction. Council approval is required for each step in this process. The City has included Program 1.1.B to establish and monitor the City’s anticipated timeline and actions for entering into the SLA process.

Table C-8 Site #2 Description
Site Description Site Image & Capacity Calculation
Address East side of San Carlos between 8th
and 10th Ave
APN 010-151-001-000
By-Right with 20%
Affordable No, not used in previous cycle.

Size of Site 1.84 acres
Zoning A-2
Allowable Density Minimum 33 du/ac*
Applied RHNA
Affordability
Very Low-income: 30 units
Low-income: 25 units
Moderate-income: 5 units
Existing Use Non-vacant; parking lot
Infrastructure
Availability Yes, no constraints. Realistic Capacity utilizing factors = (1.84 X 33) (.95) (.95) (.95) = 52 units
86% of minimum density Environmental
Constraints None known
SOURCE: City of Carmel-by-the-Sea
NOTE: *A-2 Zoning District does not have development standards in place. City is proposing a minimum of 33 dwelling units per acre for the zone see Program

1.3.E in Chapter 2 for full details.

Table C-9 Site #2 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 95% For net acreage due to utility easement needs.

Realistic capacity of the site 95%
Based on market demand for medium-density housing types such as condominiums, apartments, townhomes, and single-family and current cost of construction.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-26 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Site Description Adjustment Reasoning
Typical densities 95%
Future medium-density projects in Carmel-by-the-Sea are more likely to be built out close to maximum density due to lot sizes, limited developable sites, and very high demand for new units.

Infrastructure availability No adjustment Not applicable, no constraints Environmental Constraints No adjustment No known site constraint SOURCE: City of Carmel-by-the-Sea
Site #3: City Public Works (Vista Lobos) Site
Site #3, Vista Lobos, 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 site is currently zoned R-4.

This City-owned site is the only site zoned R-4 (multi-family residential) that presents feasible residential development potential in the R-4 zoning district. To maximize development potential, the City is utilizing a local Bonus Density, which allows a maximum of 44 dwelling units per acre in the R-4 zoning district when 20 percent affordable units are provided (CMC 17.12.020). Developed at 44 dwelling units per acre, the gross acreage of the site would allow a total of 56 units to accommodate 28 very low-, 11 low-, and 17 moderate-income units.

Based on recent developments, the City has determined 44 dwelling units per acre to be the most feasible density for development on this site and intends to achieve this density. The City’s confidence in achieving 44 dwelling units per acre is supported by past projects, site size, and the City’s ownership of the parcels.

To ensure the Vista Lobos site is developed for residential use, the City has included Program 1.1.B to establish and monitor processes for utilization of city-owned parcels to develop housing in the eight-year planning cycle (see Chapter 2). The City will make the property available through the Surplus Land Act process, develop a project description, and establish an RFP process to solicit developers. The City intends to target an Exclusive Negotiating Agreement by Fall 2025 and land use entitlements issuance by Winter 2026.

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.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-27 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 The entitlement process for this site is similar to that of Sites #1 and #2. The City will follow the requirements of the Surplus Land Act to lease the land to facilitate the development of affordable residential units. This process includes the development of a project description, publication of an RFP within six months, selection of a development partner, two years to enter into an Exclusive Negotiation Agreement, two years for land use entitlements and development agreements, 6-12 months for building permit issuance, and 2-3 years for construction. Council approval is required for each step in this process. The City has included Program 1.1.B to establish and monitor the City’s anticipated timeline and actions for entering into the SLA process.

Table C-10 Site #3 Description
Site Description Site Image & Capacity Calculation
Address West side of Torres between 3rd and 4th Ave.

E side of Junipero between 3rd and 4th Ave.

APN 010-104-001-000
010-104-004-000
By-Right with 20%
Affordable No, not used in previous cycle.

Size of Site 1.28 acres
Zoning R-4
Allowable Density Maximum 33 du/ac * (up to 44 du/ac with affordable)
Applied RHNA
Affordability
Very Low-Income: 28 units
Low-income: 11 unit
Moderate-Income: 17 units
Existing Use Non-vacant; parking lot
Infrastructure
Availability Yes, no constraints. Realistic Capacity utilizing factors = (1.28 X 44) (.90) (.95) (.95) = 45 units
80% of maximum density (44 du/ac) Environmental
Constraints None known
Other Constraints Potential height restrictions due to viewshed (CMC 17.12.050).

SOURCE: City of Carmel-by-the-Sea
Table C-11 Site #3 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 95%
Based on market demand for medium-density housing types such as condominiums, apartments, townhomes, and current cost of construction.

Potential height limitations due to Point Lobos viewshed.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-28 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Site Description Adjustment Reasoning
Typical densities 95%
Future medium-density projects in Carmel-by-the-Sea are more likely to be built out close to maximum density due to lot sizes, limited developable sites, and very high demand for new units.

Infrastructure availability No adjustment Not applicable, no constraints Environmental Constraints No adjustment No known site constraint SOURCE: City of Carmel-by-the-Sea
Site #4: Bruno’s Market Site
Site #4, Bruno’s Market, includes two adjacent parcels totaling over 0.53 acres under the same ownership. Existing use on the site includes a parking lot that leads to low lot coverage. It also scores in the top tier for land-to-improvement ratio.

The site is zoned Residential and Limited Commercial (RC), which currently allows residential densities up to a maximum of 22 dwelling units per acre by-right, 33 dwelling units per acre with approval of a conditional use permit, 44 dwelling units per acre under Density Bonus law, and up to 88 dwelling units per acre if the project is 100 percent affordable. However, Program 3.1.G has been included in this housing element to establish a minimum of 33 dwelling units per acre for residential development (see Chapter 2). The intention is to yield a higher number of residential units, rather than enabling the development of larger units at a lower yield.

Developed at a minimum of 33 dwelling units per acre, the gross acreage of the site would allow a minimum of 17 units to accommodate five (5) moderate- and 12 above moderate-income units.

Based on recent developments, such as Ulrika Plaza and Scandia Lopez/Hakim, both of which are located in the commercial district, the City has determined 33 dwelling units per acre to be the most feasible density for development on this site. The City intends to achieve a minimum density of 33 dwelling units per acre through a zoning code amendment, and therefore is utilizing the gross density to calculate anticipated units.

Future redevelopment would replace existing commercial parking in a covered parking structure. To address parking requirements, Program 3.1.E has been included in this housing element to reduce parking requirements for affordable housing developments and waive in-lieu fees for affordable units (see Chapter 2).

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-29 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table C-12 Site #4 Description
Site Description Site Image & Capacity Calculation
Address North side of 6th Ave between
Junipero Ave and Torres Street
APN 010-095-013-000
010-095-012-000
By-Right with 20%
Affordable No, not used in previous cycle.

Size of Site 0.53 acre
Zoning RC
Allowable Density 0-22 du/ac**
Applied RHNA
Affordability
Moderate-income: 5 units
Above moderate-income: 12 units
Existing Use Non-vacant; parking lot
Infrastructure
Availability Yes, no constraints. Realistic Capacity utilizing factors = (0.53 X 33) (.90) (.95) (.95) = 14 units
82% of minimum density Environmental
Constraints None known
SOURCE: City of Carmel-by-the-Sea
NOTE: ** Existing zoning code permits 0-22 du/ac in commercial zones (SC, RC, CC). Program 3.1.G establishes a minimum density of 33 du/ac for commercial zones. Assumptions for site development use programmatic zoning amendment of minimum 33 du/ac.

Table C-13 Site #4 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 95%
Based on market demand for medium-density housing types such as condominiums, apartments, townhomes, and single-family and current cost of construction.

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, if eliminated to develop affordable housing.

In 2021, the State of California passed SB 10. This bill allows local agencies to adopt an ordinance to allow up to 10 dwelling units on any parcel that meets height and location requirements. The ordinance would not be subject to CEQA. The City intends to enable SB 10 through rezoning of the parcel to allow a minimum density of 33 dwelling units per acre. Program 1.3.I establishes and monitors implementation of SB 10 for these sites (see Chapter 2).

Developed at a minimum of 33 dwelling units per acre, the gross acreage of the site would allow a minimum of nine (9) units to accommodate two (2) very low-, one (1) low-, three (3) moderate-, and three (3) above moderate-income units. When factoring in adjustments for potential land use controls and site improvements, realistic capacity of the site, and typical densities, the net acreage of the site would yield a total of seven (7) units to accommodate two (2) very low-, two (2) low, and three (3) above moderate-income units (Tables C-14 and C-15). Based on recent developments, the City has determined 33 dwelling units per acre to be the most feasible density for development on this site. The City intends to achieve a density of 33 dwelling units per acre, and therefore is utilizing the gross density to calculate anticipated units.

While the site is less than 0.5 acres, the Church has expressed interest in developing housing on the underutilized parking lot. Because the current owner is a mission-driven organization, it’s possible they may subsidize affordable housing construction and management. City staff met with representatives of the church in November 2022 and September 2023. They continue to express interest in consolidating their church campus and developing housing.

Additionally, the City intends to implement SB 4 for this site, which enables a streamlined process for the development of affordable residential units on land owned by a religious institution. All units are required to be affordable and approved by-right, requiring no discretionary review.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-31 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table C-14 Site #5 Description
Site Description Site Image & Capacity Calculation
Address
Lincoln 2 NW of 6th Ave
Lincoln 3 NW of 6th Ave
Lincoln 4 NW of 6th Ave
APN
010-212-027-000
010-212-004-000
010-212-026-000
By-Right with 20%
Affordable No, not used in previous cycle.

Size of Site 0.28 acre
Zoning R-1; to be rezoned to enable SB 10
Allowable Density 2-11 du/ac**
Applied RHNA
Affordability
Very low-income: 2 units
Low-income: 1 unit
Moderate-income: 3 units
Above moderate-income: 3 units
Existing Use Non-vacant; parking lot
Infrastructure
Availability Yes, no constraints. Realistic Capacity utilizing factors = (0.28 X 33) (.90) (.95) (.95) = 7 units
77% of minimum density Environmental
Constraints None known
SOURCE: City of Carmel-by-the-Sea
NOTES: ** Existing zoning code permits 2-11 du/ac in R-1 zone. Assumptions for site development use programmatic zoning amendment of 33 du/ac through SB 10 rezoning of parcel.

Table C-15 Site #5 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 95%
Based on market demand for medium-density housing types such as condominiums, apartments, townhomes, and single-family and current cost of construction. Mission driven property owner interest in development.

The Carmel Foundation recently purchased this property. The Foundation currently manages 50 affordable senior housing units in the village.

Similar to Site #5, the City intends to enable SB 10 through rezoning of the parcel to allow a minimum density of 33 dwelling units per acre. This bill enables the development of up to 10 residential units on a parcel through a rezone, which is facilitated through the adoption of an ordinance. The ordinance would not be subject to CEQA. Program 1.3.I establishes and monitors implementation of SB 10 for these sites (see Chapter 2).

Developed at a minimum of 33 dwelling units per acre, the gross acreage of the site would allow a minimum of five (5) units to accommodate three (3) very low- and two (2) low-income units. When factoring in adjustments for potential land use controls and site improvements, realistic capacity of the site, and typical densities, the net acreage of the site would yield a total of four (4) units to accommodate two (2) very low-, two (2) low-income units (Tables C-16 and C-17). Based on recent developments, the City has determined 33 dwelling units per acre to be the most feasible density for development on this site. The City intends to achieve a density of 33 dwelling units per acre, and therefore is utilizing the gross density to calculate anticipated units.

While the site is less than 0.5 acres, the property owner has expressed interest in developing affordable senior housing. The new property owner of the site, the Carmel Foundation, currently manages 50 affordable apartment units in the Village and has an established working relationship with the City. They currently have a long-term lease with the City to provide affordable residential units to senior citizens (55+). The Foundation is a member organization for seniors aged 55-years of age and older, which provides a myriad of services in addition to affordable apartment units. The Foundation has expressed interest in expanding the number of residential units it manages.

Intentions for this site include possible redevelopment of the site to maximize development potential.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-33 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table C-16 Site #6 Description
Site Description Site Image & Capacity Calculation
Address
Southeast corner of Dolores Street
and 8th Ave
APN 010-144-015-000
010-144-016-000
By-Right with 20%
Affordable No, not used in previous cycle.

Size of Site 0.18 acre
Zoning R-1; to be rezoned to enable SB 10
Allowable Density 2-11 du/ac**
Applied RHNA
Affordability
Very Low-income: 3 units
Low-income: 2 units
Existing Use Non-vacant; vacant office space and
parking lot
Infrastructure
Availability Yes, no constraints. Realistic Capacity utilizing factors = (0.18 X 33) (.90) (.95) (.95) = 4 units
80% of minimum density Environmental
Constraints None known
SOURCE: City of Carmel-by-the-Sea
NOTES: ** Existing zoning code permits 2-11 du/ac in R-1 zone. Assumptions for site development use programmatic zoning amendment of 33 du/ac through SB 10 rezoning of parcel.

Table C-17 Site #6 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 95%
Based on market demand for medium-density housing types such as condominiums, apartments, townhomes, and single-family and current cost of construction.

The site is zoned Service Commercial (SC), which currently allows residential densities up to a maximum of 22 dwelling units per acre by-right, 33 dwelling units per acre with approval of a conditional use permit, 44 dwelling units per acre under Density Bonus law, and up to 88 dwelling units per acre if the project is 100 percent affordable. However, Program 3.1.G has been included in this housing element to establish a minimum of 33 dwelling units per acre for residential development (see Chapter 2). The intention is to yield a higher number of residential units, rather than enabling the development of larger units at a lower yield.

Developed at a minimum of 33 dwelling units per acre, the gross acreage of the site would allow a minimum of five (5) above moderate-income units. When factoring in adjustments for potential land use controls and site improvements, realistic capacity of the site, and typical densities, the net acreage of the site would yield a total of four (4) units to accommodate four (4) above moderateincome units (Tables C-18 and C-19). Based on recent developments, such as Ulrika Plaza and Scandia Lopez/Hakim, both of which are located in the commercial district, the City has determined 33 dwelling units per acre to be the most feasible density for development on this site. The City intends to achieve a density of 33 dwelling units per acre through a zoning code amendment, and therefore is utilizing the gross density to calculate anticipated units.

Due to the size of the site, less than 0.5 acres, the assumed affordability will be limited to above moderate units. Based on the feasibility to construct high-end townhomes, condos, etc., the site is expected to develop despite its small size.

Generally, parcels that are less than 0.5 acres are considered inadequate to accommodate housing affordable to lower-income households unless there is developer or property owner interest in constructing affordable units. Without property owner interest in developing affordable housing on the site, it is unrealistic to assume otherwise. Should the property owner express interest in developing affordable units, the site will be reconsidered for feasibility in developing affordable units.

The property owner has indicated interest in developing housing to replace the underutilized parking lot and to retain the existing mixed-use brick building.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-35 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table C-18 Site #7 Description
Site Description Site Image & Capacity Calculation
Address Southwest corner of Mission and 7th
Ave
APN 010-142-001-000
By-Right with 20%
Affordable No, not used in previous cycle.

Size of Site 0.18 acre
Zoning SC
Allowable Density 0-22 du/ac**
Applied RHNA
Affordability Above Moderate-Income: 5 units
Existing Use Non-Vacant; commercial space and
parking lot
Infrastructure
Availability Yes, no constraints. Realistic Capacity utilizing factors = (0.18 X 33) (.90) (.95) (.95) = 4 units
80% of minimum density Environmental
Constraints None known
SOURCE: City of Carmel-by-the-Sea
NOTES: ** Existing zoning code permits 0-22 du/ac in commercial zones (SC, RC, CC). Program 3.1.G establishes a minimum density of 33 du/ac for commercial zones. Assumptions for site development use programmatic zoning amendment of minimum 33 du/ac.

Table C-19 Site #7 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 95%
Based on market demand for medium-density housing types such as condominiums, apartments, townhomes, and single-family and current cost of construction.

Their administrative offices/campus headquarters include four parcels totaling 0.64 acres. Existing uses on the site include office spaces and a parking lot. The site is currently zoned A-3, Senior Citizen Facility District, which permits senior housing.

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. A letter of interest in developing affordable residential units is presented on the following page.

The Carmel Foundation currently manages a total of 50 affordable senior housing units in the Village including Norton Court, Trevvett Court and Haseltine Court. Norton Court is operated on City-owned land through a long-term lease. The Foundation has a proven track record for developing affordable housing at densities higher than typical developments. For example, during the 5th cycle, the Foundation developed Trevett Court in the RC District on 0.18 acres at 76 dwelling units per acre to accommodate 14 affordable residential units.

Developed at a minimum of 33 dwelling units per acre, the gross acreage of the site would allow a minimum of 21 units to accommodate 11 very low- and 10 low-income units. When factoring in adjustments for potential land use controls and site improvements, realistic capacity of the site, and typical densities, the net acreage of the site would yield a total of 17 units to accommodate 11 very low- and six (6) low-income units (Tables C-20 and C-21). Based on recent developments and the Carmel Foundation’s track record for developing at high densities, the City has determined 33 dwelling units per acre to be the most feasible minimum density for development on this site. The City intends to achieve a density of at least 33 dwelling units per acre through a zoning code amendment, and therefore is utilizing the gross density to calculate anticipated units.

Attachment 2
City of Carmel-by-the-Sea

COMMUNITY PLANNING AND BUILDING DEPARTMENT

POST OFFICE BOX CC
CARMEL-BY-THE-SEA, CA 93921
(831) 620-2010 OFFICE
Property Owner Name: APN: 010Ͳ_____Ͳ_____
________________________________________________ 010Ͳ_____Ͳ_____ HousingElementSiteInventoryPropertyOwnerInterestForm The City has developed a list of potential sites that could accommodate residential units over the next eightͲ year planning cycle (2023Ͳ2031) to meet the City’s 6th Cycle Regional Housing Needs Allocation (RHNA) goal of 349newresidentialunits. Please use the following form to indicate potential interest in developing housing on your property and potential constraints to development. OPPORTUNITIES
տ Iaminterestedindevelopinghousingonmyproperty.

Please provide additional information: (e.g., type of housing you would like to develop (singleͲfamily/multiͲ family, rental/forͲsale), anticipated affordability level of the unit(s) (low income/marketͲrate), a timeline of potential development, etc.)
CONSTRAINTS
տ Thepropertyidentifiedhasexistinguses/tenantsthatmayimpederesidentialdevelopment.

Please provide additional information: (e.g., leases that will not expire within the current 2023Ͳ2031 Housing Element Cycle, easements, deed restrictions, etc.)
տ Iamnotinterestedindevelopinghousingorsellingmypropertytoahousingdeveloper.

Please provide additional information: (e.g. cost of construction, personal preference, etc.) 010-149-012, 010-149-001
The Carmel Foundation is always open to develop new low-income housing for seniors.

There is currently no timeline that can be quoted as adding additional units would be dependent on proposed space and funding.
149 010
Holly Zoller, President/CEO of The Carmel Foundation 149 011 ✔
Attachment 2
Appendix C – Housing Sites Inventory Analysis C-38 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table C-20 Site #8 Description
Site Description Site Image & Capacity Calculation
Address Northeast corner of Lincoln and 8th
Ave
APN
010-149-001-000
010-149-010-000
010-149-011-000
010-149-012-000
By-Right with 20%
Affordable No, not used in previous cycle.

Size of Site 0.64 acre
Zoning A-3
Allowable Density Minimum 33 du/ac
Applied RHNA
Affordability
Very Low-Income: 11 units
Low-Income: 10 units
Existing Use Non-Vacant
Infrastructure
Availability Yes, no constraints. Realistic Capacity utilizing factors = (0.64 X 33) (.90) (.95) (.95) = 17 units
80% of minimum density Environmental
Constraints None known
SOURCE: City of Carmel-by-the-Sea
Table C-21 Site #8 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 95%
Based on market demand for medium-density housing types such as condominiums, apartments, townhomes, and single-family and current cost of construction.

Similar to Sites #5 and #6, the City intends to enable SB 10 through rezoning of the parcel to allow a minimum density of 33 dwelling units per acre. This bill enables the development of up to 10 residential units on a parcel through a rezone, which is facilitated through the adoption of a zoning ordinance. The ordinance would not be subject to CEQA. Program 1.3.I establishes and monitors implementation of SB 10 for these sites (see Chapter 2).

Developed at a minimum of 33 dwelling units per acre, the gross acreage of the site would allow a minimum of five (5) units to accommodate two (2) very low- and three (3) low-income units. When factoring in adjustments for potential land use controls and site improvements, realistic capacity of the site, and typical densities, the net acreage of the site would yield a total of four (4) units to accommodate two (2) very low- and two (2) low-income units (Tables C-22 and C-23). Based on recent developments, such as the Scandia Lopez/Hakim project, the City has determined 33 dwelling units per acre to be the most feasible density for development on this site. The City intends to achieve a density of 33 dwelling units per acre through a zoning code amendment, and therefore is utilizing the gross density to calculate anticipated units.

While the site is less than 0.5 acres, the property owner has expressed interest in developing affordable housing for veterans. Additionally, City staff have identified this site because it is underutilized and owned by a quasi-public organization. City staff met with representatives of the American Legion in July 2022, April 2023, and August 2023 to discuss potential development.

Representatives of the American Legion continue to express interest in affordable veteran housing and possibly partnering with the Carmel Foundation.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-40 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table C-22 Site #9 Description
Site Description Site Image & Capacity Calculation
Address Dolores Street 2 SE of 8th Ave
APN 010-144-014-000
By-Right with 20%
Affordable No, not used in previous cycle.

Size of Site 0.18 acre
Zoning R-1; to be rezoned to enable SB 10
Allowable Density 2-11 du/ac**
Applied RHNA
Affordability
Very Low-Income: 2 units
Low-Income: 3 units
Existing Use Non-Vacant; office space and
meeting hall
Infrastructure
Availability Yes, no constraints. Realistic Capacity utilizing factors = (0.18 X 33) (.90) (.95) (.95) = 4 units
80% of minimum density Environmental
Constraints None known
SOURCE: City of Carmel-by-the-Sea
NOTES: ** Existing zoning code permits 2-11 du/ac in R-1 zone. Assumptions for site development use programmatic zoning amendment of 33 du/ac through SB 10 rezoning of parcel.

Table C-23 Site #9 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 95%
Based on market demand for medium-density housing types such as condominiums, apartments, townhomes, and single-family and current cost of construction. SB 10.

Developed at a minimum of 33 dwelling units per acre, the gross acreage of the site would allow a minimum of 11 above moderate-income units. When factoring in adjustments for potential land use controls and site improvements, realistic capacity of the site, and typical densities, the net acreage of the site would yield a total of nine (9) above moderate-income units (Tables C-24 and C-25). Based on recent developments, such as Ulrika Plaza and Scandia Lopez/Hakim, both of which are located in the commercial district, the City has determined 33 dwelling units per acre including adjustments, to be the most feasible density for development on this site. The City intends to achieve a density of 33 dwelling units per acre through a zoning code amendment, and therefore is utilizing the gross density to calculate anticipated units.

To maximize potential, the site would undergo full redevelopment to accommodate new housing units.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-42 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table C-24 Site #10 Description
Site Description Site Image & Capacity Calculation
Address Southwest corner of Junipero and
7th Ave
APN 010-087-012-000
By-Right with 20%
Affordable No, not used in previous cycle.

Size of Site 0.35 acre
Zoning RC
Allowable Density 0-22 du/ac**
Applied RHNA
Affordability Above Moderate-Income: 11 units
Existing Use Non-Vacant
Infrastructure
Availability Yes, no constraints. Realistic Capacity utilizing factors = (0.35 X 33) (.90) (.95) (.95) = 9 units
81% of minimum density Environmental
Constraints None known
SOURCE: City of Carmel-by-the-Sea:

NOTES: ** Existing zoning code permits 0-22 du/ac in commercial zones (SC, RC, CC). Program 3.1.G establishes a minimum density of 33 du/ac for commercial zones. Assumptions for site development use programmatic zoning amendment of minimum 33 du/ac.

Table C-25 Site #10 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 95%
Based on market demand for medium-density housing types such as condominiums, apartments, townhomes, and single-family and current cost of construction.

Existing use on the site includes a hotel/motel.

The Specific Plan allows a total of six (6) units to accommodate four (4) single-family residential units, and contains an affordable housing requirement of two (2) multi-family residential units permanently dedicated and used to provide housing for low-income or very low-income households as defined by State statutes. The Specific Plan requires that a deed restriction be recorded establishing this requirement prior to issuance of the first building permit within the Specific Plan.

Developed at 20 dwelling units per acre, the site would allow a total of six (6) units to accommodate two (2) low-income units and four (4) above-moderate income units (Table C-26). This density calculation does not account for adjustments since the site is part of a Specific Plan, which has approved densities, anticipated unit counts according to income category, and existing site improvements.

Generally, parcels that are less than 0.5 acres are considered inadequate to accommodate housing affordable to lower-income households unless there is developer or property owner interest in constructing affordable units. The Specific Plan affordable housing requirement discussed above, satisfies the “interest” intention to develop affordable housing on the site.

Table C-26 Site #11 Description
Site Description Site Image & Capacity Calculation
Address Northeast corner of Ocean and
Mountain View
APN
010-085-004-000
010-085-005-000
010-085-003-000
By-Right with 20%
Affordable No, not used in previous cycle.

Size of Site 0.30 acre
Zoning R-1
Allowable Density 20 du/ac
RHNA Affordability Low-Income: 2 units
Above Moderate-Income: 4 units
Existing Use Non-vacant; hotel/motel
Infrastructure
Availability Yes, no constraints. Realistic Capacity =
(0.30 X 20) = 6 units
Specific Plan Approved Density
Environmental
Constraints None known
SOURCE: City of Carmel-by-the-Sea
Attachment 2
Appendix C – Housing Sites Inventory Analysis C-44 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Site #12: Court of the Fountains
Site #12, Court of the Fountains, 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 5th Cycle inventory.

The site is zoned Central Commercial (CC), which currently allows residential densities up to a maximum of 22 dwelling units per acre by-right, 33 dwelling units per acre with approval of a conditional use permit, 44 dwelling units per acre under Density Bonus law, and up to 88 dwelling units per acre if the project is 100 percent affordable. However, Program 3.1.G has been included in this housing element to establish a minimum of 33 dwelling units per acre for residential development (see Chapter 2). The intention is to yield a higher number of residential units, rather than enabling the development of larger units at a lower yield.

Developed at a minimum of 33 dwelling units per acre, the gross acreage of the site would allow a minimum of 12 above moderate-income units. When factoring in adjustments for potential land use controls and site improvements, realistic capacity of the site, and typical densities, the net acreage of the site would yield a total of nine (9) above moderate-income units (Tables C-27 and C-28). Based on recent developments, such as Ulrika Plaza and Scandia Lopez/Hakim, both of which are located in the commercial district, the City has determined 33 dwelling units per acre including adjustments, to be the most feasible density for development on this site. The City intends to achieve a density of 33 dwelling units per acre through a zoning code amendment, and therefore is utilizing the gross density to calculate anticipated units.

The property owner has expressed interest to add second-story residential uses to the site.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-45 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table C-27 Site #12 Description
Site Description Site Image & Capacity Calculation
Address Northwest corner of Mission Street
and 7th Ave
APN 010-141-003-000
By-Right with 20%
Affordable
No, used in 4th and 5th cycles, but
nonvacant and market rate.

Size of Site 0.37 acre
Zoning CC
Allowable Density 0-22 du/ac**
Applied RHNA
Affordability Above Moderate-Income: 12 units
Existing Use Non-vacant
Infrastructure
Availability Yes, no constraints. Realistic Capacity utilizing factors = (0.37 X 38) (.90) (.95) (.95) = 9 units
75% of minimum density Environmental
Constraints None known
SOURCE: City of Carmel-by-the-Sea:

Table C-28 Site #12 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 95%
Based on market demand for medium-density housing types such as condominiums, apartments, townhomes, and single-family and current cost of construction.

Developed at a minimum of 33 dwelling units per acre, the gross acreage of the site would allow a minimum of two (2) above moderate-income units. When factoring in adjustments for potential land use controls and site improvements, realistic capacity of the site, and typical densities, the net acreage of the site would yield a total of one (1) above moderate-income units (Tables C-29 and C30). Based on recent developments, such as Ulrika Plaza and Scandia Lopez/Hakim, both of which are located in the commercial district, the City has determined 33 dwelling units per acre including adjustments, to be the most feasible density for development on this site. The City intends to achieve a density of 33 dwelling units per acre through a zoning code amendment, and therefore is utilizing the gross density to calculate anticipated units.

Due to the size of the site, less than 0.5 acres, the assumed affordability will be limited to above moderate units. Based on the feasibility to construct high-end townhomes, condos, single-family, etc., the site is expected to develop despite its small size.

Intentions for the site include a second flood addition to accommodate residential uses.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-47 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table C-29 Site #13 Description
Site Description Site Image & Capacity Calculation
Address 7th Ave 2 Southwest of Mission
Street
APN 010-142-013-000
By-Right with 20%
Affordable
No, used in 4th and 5th cycles, but
nonvacant.

Size of Site 0.07 acre
Zoning SC
Allowable Density 0-22 du/ac**
Applied RHNA
Affordability Above Moderate-Income: 2 units
Existing Use Non-vacant
Infrastructure
Availability Yes, no constraints. Realistic Capacity utilizing factors = (0.07 X 33) (.90) (.95) (.95) = 1 unit
50% of minimum density Environmental
Constraints None known
SOURCE: City of Carmel-by-the-Sea
NOTES: ** Existing zoning code permits 0-22 du/ac in commercial zones (SC, RC, CC). Program 3.1.G establishes a minimum density of 33 du/ac for commercial zones. Assumptions for site development use programmatic zoning amendment of minimum 33 du/ac.

Table C-30 Site #13 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 95%
Based on market demand for medium-density housing types such as condominiums, apartments, townhomes, and single-family and current cost of construction.

Developed at a minimum of 33 dwelling units per acre, the gross acreage of the site would allow a minimum of two (2) above moderate-income units. When factoring in adjustments for potential land use controls and site improvements, realistic capacity of the site, and typical densities, the net acreage of the site would yield a total of one (1) above moderate-income units (Tables C-31 and C32). Based on recent developments, such as Ulrika Plaza and Scandia Lopez/Hakim, both of which are located in the commercial district, the City has determined 33 dwelling units per acre including adjustments, to be the most feasible density for development on this site. The City intends to achieve a density of 33 dwelling units per acre through a zoning code amendment, and therefore is utilizing the gross density to calculate anticipated units.

Due to the size of the site, less than 0.5 acres, the assumed affordability will be limited to above moderate units. Based on the feasibility to construct high-end townhomes, condos, single-family, etc., the site is expected to develop despite its small size.

Intentions for the site may include full redevelopment or a second flood addition to accommodate residential uses.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-49 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table C-31 Site #14 Description
Site Description Site Image & Capacity Calculation
Address Northeast corner of Monte Verde
Street and 7th Ave
APN 010-191-004-000
By-Right with 20%
Affordable
No, used in 4th and 5th cycles, but
nonvacant.

Size of Site 0.07 acre
Zoning RC
Allowable Density 0-22 du/ac**
Applied RHNA
Affordability Above Moderate-Income: 2 units
Existing Use Non-vacant; office space
Infrastructure
Availability Yes, no constraints. Realistic Capacity utilizing factors = (0.07 X 33) (.90) (.95) (.95) = 1 unit
50% of minimum density Environmental
Constraints None known
SOURCE: City of Carmel-by-the-Sea
NOTES: ** Existing zoning code permits 0-22 du/ac in commercial zones (SC, RC, CC). Program 3.1.G establishes a minimum density of 33 du/ac for commercial zones. Assumptions for site development use programmatic zoning amendment of minimum 33 du/ac.

Table C-32 Site #14 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 95%
Based on market demand for medium-density housing types such as condominiums, apartments, townhomes, and single-family and current cost of construction.

Developed at a minimum of 33 dwelling units per acre, the gross acreage of the site would allow a minimum of five (5) above moderate-income units. When factoring in adjustments for potential land use controls and site improvements, realistic capacity of the site, and typical densities, the net acreage of the site would yield a total of four (4) above moderate-income units (Tables C-33 and C34). Based on recent developments, such as Ulrika Plaza and Scandia Lopez/Hakim, both of which are located in the commercial district, the City has determined 33 dwelling units per acre including adjustments, to be the most feasible density for development on this site. The City intends to achieve a density of 33 dwelling units per acre through a zoning code amendment, and therefore is utilizing the gross density to calculate anticipated units.

Due to the size of the site, less than 0.5 acres, the assumed affordability will be limited to above moderate units. Based on the feasibility to construct high-end townhomes, condos, single-family, etc., the site is expected to develop despite its small size.

Intentions for the site may include full redevelopment or a second flood addition to accommodate residential uses.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-51 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table C-33 Site #15 Description
Site Description Site Image & Capacity Calculation
Address Northwest corner of Junipero and 5th
Ave
APN 010-097-007-000
By-Right with 20%
Affordable
No, used in 4th and 5th cycles, but
nonvacant.

Size of Site 0.18 acre
Zoning SC
Allowable Density 0-22 du/ac**
Applied RHNA
Affordability Above Moderate-Income: 5 units
Existing Use Non-vacant; commercial space and
parking lot
Infrastructure
Availability Yes, no constraints. Realistic Capacity utilizing factors = (0.18 X 33) (.90) (.95) (.95) = 4 units
80% of minimum density Environmental
Constraints None known
SOURCE: City of Carmel-by-the-Sea
NOTES: ** Existing zoning code permits 0-22 du/ac in commercial zones (SC, RC, CC). Program 3.1.G establishes a minimum density of 33 du/ac for commercial zones. Assumptions for site development use programmatic zoning amendment of minimum 33 du/ac.

Table C-34 Site #15 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 95%
Based on market demand for medium-density housing types such as condominiums, apartments, townhomes, and single-family and current cost of construction.

Developed at a minimum of 33 dwelling units per acre, the gross acreage of the site would allow a minimum of three (3) above moderate units. When factoring in adjustments for potential land use controls and site improvements, realistic capacity of the site, and typical densities, the net acreage of the site would yield a total of two (2) above moderate-income units (Tables C-35 and C-36). Based on recent developments, such as Ulrika Plaza and Scandia Lopez/Hakim, both of which are located in the commercial district, the City has determined 33 dwelling units per acre including adjustments, to be the most feasible density for development on this site. The City intends to achieve a density of 33 dwelling units per acre through a zoning code amendment, and therefore is utilizing the gross density to calculate anticipated units.

Due to the size of the site, less than 0.5 acres, the assumed affordability will be limited to above moderate units. Based on the feasibility to construct high-end townhomes, condos, single-family, etc., the site is expected to develop despite its small size.

Intentions for the site include full redevelopment to accommodate residential uses.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-53 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table C-35 Site #16 Description
Site Description Site Image & Capacity Calculation
Address Southwest of Junipero between 5th
and 6th Ave
APN 010-098-004-000
By-Right with 20%
Affordable
No, used in 4th and 5th cycles, but
nonvacant.

Size of Site 0.11 acre
Zoning SC
Allowable Density 0-22 du/ac**
Applied RHNA
Affordability Above Moderate-Income: 3 units
Existing Use Non-vacant; attached garages
Infrastructure
Availability Yes, no constraints. Realistic Capacity utilizing factors = (0.11 X 33) (.90) (.95) (.95) = 2 units
66% of minimum density Environmental
Constraints None known
SOURCE: City of Carmel-by-the-Sea
NOTES: ** Existing zoning code permits 0-22 du/ac in commercial zones (SC, RC, CC). Program 3.1.G establishes a minimum density of 33 du/ac for commercial zones. Assumptions for site development use programmatic zoning amendment of minimum 33 du/ac.

Table C-36 Site #16 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 95%
Based on market demand for medium-density housing types such as condominiums, apartments, townhomes, and single-family and current cost of construction.

Developed at a minimum of 33 dwelling units per acre, the gross acreage of the site would allow a minimum of six (6) above moderate-income units. When factoring in adjustments for potential land use controls and site improvements, realistic capacity of the site, and typical densities, the net acreage of the site would yield a total of five (5) above moderate-income units (Tables C-37 and C-38). Based on recent developments, such as Ulrika Plaza and Scandia Lopez/Hakim, both of which are located in the commercial district, the City has determined 33 dwelling units per acre including adjustments, to be the most feasible density for development on this site. The City intends to achieve a density of 33 dwelling units per acre through a zoning code amendment, and therefore is utilizing the gross density to calculate anticipated units.

Due to the size of the site, less than 0.5 acres, the assumed affordability will be limited to above moderate units. Based on the feasibility to construct high-end townhomes, condos, single-family, etc., the site is expected to develop despite its small size.

Intentions for the site include full redevelopment to accommodate residential uses.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-55 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table C-37 Site #17 Description
Site Description Site Image & Capacity Calculation
Address Northeast corner of Dolores Street
and 8th Ave
APN 010-145-008-000
By-Right with 20%
Affordable
No, used in 4th and 5th cycles, but
nonvacant.

Size of Site 0.19 acre
Zoning RC
Allowable Density 0-22 du/ac**
Applied RHNA
Affordability Above Moderate-Income: 6 units
Existing Use Non-vacant; office space
Infrastructure
Availability Yes, no constraints. Realistic Capacity utilizing factors = (0.19 X 33) (.90) (.95) (.95) = 5 units
83% of minimum density Environmental
Constraints None known
SOURCE: City of Carmel-by-the-Sea
NOTES: ** Existing zoning code permits 0-22 du/ac in commercial zones (SC, RC, CC). Program 3.1.G establishes a minimum density of 33 du/ac for commercial zones. Assumptions for site development use programmatic zoning amendment of minimum 33 du/ac.

Table C-38 Site #17 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 95%
Based on market demand for medium-density housing types such as condominiums, apartments, townhomes, and single-family and current cost of construction.

Developed at a minimum of 33 dwelling units per acre, the gross acreage of the site would allow a minimum of four (4) above moderate-income units. When factoring in adjustments for potential land use controls and site improvements, realistic capacity of the site, and typical densities, the net acreage of the site would yield a total of three (3) above moderate-income units (Tables C-39 and C-40). Based on recent developments, such as Ulrika Plaza and Scandia Lopez/Hakim, both of which are located in the commercial district, the City has determined 33 dwelling units per acre including adjustments, to be the most feasible density for development on this site. The City intends to achieve a density of 33 dwelling units per acre through a zoning code amendment, and therefore is utilizing the gross density to calculate anticipated units.

Due to the size of the site, less than 0.5 acres, the assumed affordability will be limited to above moderate units. Based on the feasibility to construct high-end townhomes, condos, single-family, etc., the site is expected to develop despite its small size.

City staff met with the new property owner in June 2022. They are interested in redeveloping the site with a new mixed-use building (similar to the MacDonald Gallery building one block west).

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-57 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table C-39 Site #18 Description
Site Description Site Image & Capacity Calculation
Address Northwest corner of Dolores Street
and 6th Ave
APN 010-138-006-000
By-Right with 20%
Affordable
No, used in 4th and 5th cycles, but
nonvacant.

Size of Site 0.13 acre
Zoning CC
Allowable Density 0-22 du/ac**
Applied RHNA
Affordability Above Moderate-Income: 4 units
Existing Use Non-vacant; commercial space
Infrastructure
Availability Yes, no constraints. Realistic Capacity utilizing factors = (0.13 X 33) (.90) (.95) (.95) = 3 units
75% of minimum density Environmental
Constraints None known
SOURCE: City of Carmel-by-the-Sea
NOTES: ** Existing zoning code permits 0-22 du/ac in commercial zones (SC, RC, CC). Program 3.1.G establishes a minimum density of 33 du/ac for commercial zones. Assumptions for site development use programmatic zoning amendment of minimum 33 du/ac.

Table C-40 Site #18 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 95%
Based on market demand for medium-density housing types such as condominiums, apartments, townhomes, and single-family and current cost of construction.

Developed at a minimum of 33 dwelling units per acre, the gross acreage of the site would allow a minimum of two (2) above moderate-income units. When factoring in adjustments for potential land use controls and site improvements, realistic capacity of the site, and typical densities, the net acreage of the site would yield also yield a total of two (2) above moderate-income units (Tables C-41 and C-42). Based on recent developments, such as Ulrika Plaza and Scandia Lopez/Hakim, both of which are located in the commercial district, the City has determined 33 dwelling units per acre including adjustments, to be the most feasible density for development on this site. The City intends to achieve a density of 33 dwelling units per acre through a zoning code amendment, and therefore is utilizing the gross density to calculate anticipated units.

Due to the size of the site, less than 0.5 acres, the assumed affordability will be limited to above moderate units. Based on the feasibility to construct high-end townhomes, condos, single-family, etc., the site is expected to develop despite its small size.

Intentions for the site include a second-floor addition to accommodate residential uses.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-59 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table C-41 Site #19 Description
Site Description Site Image & Capacity Calculation
Address Northwest corner of Ocean and
Dolores
APN 010-139-001-000
By-Right with 20%
Affordable
No, used in 4th and 5th cycles, but
nonvacant.

Size of Site 0.09 acre
Zoning CC
Allowable Density 0-22 du/ac**
Applied RHNA
Affordability Above Moderate-Income: 2 units
Existing Use Non-vacant; retail space
Infrastructure
Availability Yes, no constraints. Realistic Capacity utilizing factors = (0.09 X 33) (.90) (.95) (.95) = 2 units
100% of minimum density Environmental
Constraints None known
SOURCE: City of Carmel-by-the-Sea
NOTES: ** Existing zoning code permits 0-22 du/ac in commercial zones (SC, RC, CC). Program 3.1.G establishes a minimum density of 33 du/ac for commercial zones. Assumptions for site development use programmatic zoning amendment of minimum 33 du/ac.

Table C-42 Site #19 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 95%
Based on market demand for medium-density housing types such as condominiums, apartments, townhomes, and single-family and current cost of construction.

Developed at a minimum of 33 dwelling units per acre, the gross acreage of the site would allow a minimum of six (6) above moderate-income units. When factoring in adjustments for potential land use controls and site improvements, realistic capacity of the site, and typical densities, the net acreage of the site would yield a total of six (6) above moderate-income units (Tables C-43 and C-44). Based on recent developments, such as Ulrika Plaza and Scandia Lopez/Hakim, both of which are located in the commercial district, the City has determined 33 dwelling units per acre including adjustments, to be the most feasible density for development on this site. The City intends to achieve a density of 33 dwelling units per acre through a zoning code amendment, and therefore is utilizing the gross density to calculate anticipated units.

Due to the size of the site, less than 0.5 acres, the assumed affordability will be limited to above moderate units. Based on the feasibility to construct high-end townhomes, condos, single-family, etc., the site is expected to develop despite its small size.

City staff met with the property owner in June 2020. They expressed interest in converting offices to residential if sufficient water is available.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-61 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table C-43 Site #20 Description
Site Description Site Image & Capacity Calculation
Address Northwest corner of Mission and 8th
Ave
APN 010-142-006-000
By-Right with 20%
Affordable
No, used in 4th and 5th cycles, but
nonvacant.

Size of Site 0.19 acre
Zoning RC
Allowable Density 0-22 du/ac**
Applied RHNA
Affordability Above Moderate-Income: 6 units
Existing Use Non-vacant; commercial space
Infrastructure
Availability Yes, no constraints. Realistic Capacity utilizing factors = (0.19 X 33) (.90) (.95) (.95) = 5 units
83% of minimum density Environmental
Constraints None known
SOURCE: City of Carmel-by-the-Sea
NOTES: ** Existing zoning code permits 0-22 du/ac in commercial zones (SC, RC, CC). Program 3.1.G establishes a minimum density of 33 du/ac for commercial zones. Assumptions for site development use programmatic zoning amendment of minimum 33 du/ac.

Table C-44 Site #20 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 95%
Based on market demand for medium-density housing types such as condominiums, apartments, townhomes, and single-family and current cost of construction.

Developed at a minimum of 33 dwelling units per acre, the gross acreage of the site would allow a minimum of four (4) above moderate-income units. When factoring in adjustments for potential land use controls and site improvements, realistic capacity of the site, and typical densities, the net acreage of the site would also yield a total of four (4) above moderate-income units (Tables C-45 and C-46). Based on recent developments, such as Ulrika Plaza and Scandia Lopez/Hakim, both of which are located in the commercial district, the City has determined 33 dwelling units per acre including adjustments, to be the most feasible density for development on this site. The City intends to achieve a density of 33 dwelling units per acre through a zoning code amendment, and therefore is utilizing the gross density to calculate anticipated units.

Due to the size of the site, less than 0.5 acres, the assumed affordability will be limited to above moderate units. Based on the feasibility to construct high-end townhomes, condos, single-family, etc., the site is expected to develop despite its small size.

Intentions for the site may include full redevelopment or a second-floor addition to accommodate residential uses.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-63 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table C-45 Site #21 Description
Site Description Site Image & Capacity Calculation
Address San Carlos 2 Southwest of Ocean
APN 010-146-001-000
By-Right with 20%
Affordable
No, used in 4th and 5th cycles, but
nonvacant.

Size of Site 0.15 acre
Zoning CC
Allowable Density 0-22 du/ac**
Applied RHNA
Affordability Above Moderate-Income: 4 units
Existing Use Non-vacant; commercial
Infrastructure
Availability Yes, no constraints. Realistic Capacity utilizing factors = (0.15 X 33) (.90) (.95) (.95) = 4 units
100% of minimum density Environmental
Constraints None known
SOURCE: City of Carmel-by-the-Sea
NOTES: ** Existing zoning code permits 0-22 du/ac in commercial zones (SC, RC, CC). Program 3.1.G establishes a minimum density of 33 du/ac for commercial zones. Assumptions for site development use programmatic zoning amendment of minimum 33 du/ac.

Table C-46 Site #21 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 95%
Based on market demand for medium-density housing types such as condominiums, apartments, townhomes, and single-family and current cost of construction.

Developed at a minimum of 33 dwelling units per acre, the gross acreage of the site would allow a minimum of five (5) above moderate units. When factoring in adjustments for potential land use controls and site improvements, realistic capacity of the site, and typical densities, the net acreage of the site would yield a total of four (4) above moderate-income units (Tables C-47 and C-48). Based on recent developments, such as Ulrika Plaza and Scandia Lopez/Hakim, both of which are located in the commercial district, the City has determined 33 dwelling units per acre including adjustments, to be the most feasible density for development on this site. The City intends to achieve a density of 33 dwelling units per acre through a zoning code amendment, and therefore is utilizing the gross density to calculate anticipated units.

Due to the size of the site, less than 0.5 acres, the assumed affordability will be limited to above moderate units. Based on the feasibility to construct high-end townhomes, condos, single-family, etc., the site is expected to develop despite its small size.

The property owner has indicated an intention to construct housing as a second-story addition to the site. The existing building would likely remain on the site.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-65 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table C-47 Site #22 Description
Site Description Site Image & Capacity Calculation
Address San Carlos 2 Southwest of Ocean
APN 010-146-002-000
By-Right with 20%
Affordable
No, used in 4th and 5th cycles, but
nonvacant.

Size of Site 0.18 acre
Zoning CC
Allowable Density 0-22 du/ac**
Applied RHNA
Affordability Above Moderate-Income: 5 units
Existing Use Non-vacant; commercial space
Infrastructure
Availability Yes, no constraints. Realistic Capacity utilizing factors = (0.18 X 33) (.90) (.95) (.95) = 4 units
80% of minimum density Environmental
Constraints None known
SOURCE: City of Carmel-by-the-Sea
NOTES: ** Existing zoning code permits 0-22 du/ac in commercial zones (SC, RC, CC). Program 3.1.G establishes a minimum density of 33 du/ac for commercial zones. Assumptions for site development use programmatic zoning amendment of minimum 33 du/ac.

Table C-48 Site #22 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 95%
Based on market demand for medium-density housing types such as condominiums, apartments, townhomes, and single-family and current cost of construction.

Developed at a minimum of 33 dwelling units per acre, the gross acreage of the site would allow a minimum of five (5) above moderate units. When factoring in adjustments for potential land use controls and site improvements, realistic capacity of the site, and typical densities, the net acreage of the site would yield a total of four (4) above moderate-income units (Tables C-49 and C-50). Based on recent developments, such as Ulrika Plaza and Scandia Lopez/Hakim, both of which are located in the commercial district, the City has determined 33 dwelling units per acre including adjustments, to be the most feasible density for development on this site. The City intends to achieve a density of 33 dwelling units per acre through a zoning code amendment, and therefore is utilizing the gross density to calculate anticipated units.

Due to the size of the site, less than 0.5 acres, the assumed affordability will be limited to above moderate units. Based on the feasibility to construct high-end townhomes, condos, single-family, etc., the site is expected to develop despite its small size.

Intentions for the site include a second-floor addition to accommodate residential uses. The existing building would likely remain on the site.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-67 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table C-49 Site #23 Description
Site Description Site Image & Capacity Calculation
Address San Carlos 2 Northwest of 7th Ave
APN 010-146-003-000
By-Right with 20%
Affordable
No, used in 4th and 5th cycles, but
nonvacant.

Table C-50 Site #23 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 95%
Based on market demand for medium-density housing types such as condominiums, apartments, townhomes, and single-family and current cost of construction.

Developed at a minimum of 33 dwelling units per acre, the gross acreage of the site would allow a minimum of two (2) above moderate units. When factoring in adjustments for potential land use controls and site improvements, realistic capacity of the site, and typical densities, the net acreage of the site would also yield a total of two (2) above moderate-income units (Tables C-51 and C-52).

Based on recent developments, such as Ulrika Plaza and Scandia Lopez/Hakim, both of which are located in the commercial district, the City has determined 33 dwelling units per acre including adjustments, to be the most feasible density for development on this site. The City intends to achieve a density of 33 dwelling units per acre through a zoning code amendment, and therefore is utilizing the gross density to calculate anticipated units.

Due to the size of the site, less than 0.5 acres, the assumed affordability will be limited to above moderate units. Based on the feasibility to construct high-end townhomes, condos, single-family, etc., the site is expected to develop despite its small size.

The property owner met with City staff in December 2023 and expressed interest in providing three (3) residential units. Intentions for the site may include full redevelopment or a second-floor addition to accommodate residential uses. The existing building would likely remain on the site.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-69 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table C-51 Site #24 Description
Site Description Site Image & Capacity Calculation
Address San Carlos 2 Northwest of 7th Ave
APN 010-146-004-000
By-Right with 20%
Affordable
No, used in 4th and 5th cycles, but
nonvacant.

Size of Site 0.09 acre
Zoning CC
Allowable Density 0-22 du/ac**
Applied RHNA
Affordability Above Moderate-Income: 2 units
Existing Use Non-vacant
Infrastructure
Availability Yes, no constraints. Realistic Capacity utilizing factors = (0.09 X 33) (.90) (.95) (.95) = 2 units
100% of max density Environmental
Constraints None known
SOURCE: City of Carmel-by-the-Sea
NOTES: ** Existing zoning code permits 0-22 du/ac in commercial zones (SC, RC, CC). Program 3.1.G establishes a minimum density of 33 du/ac for commercial zones. Assumptions for site development use programmatic zoning amendment of minimum 33 du/ac.

Table C-52 Site #24 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 95%
Based on market demand for medium-density housing types such as condominiums, apartments, townhomes, and single-family and current cost of construction.

Based on recent developments, such as Ulrika Plaza and Scandia Lopez/Hakim, both of which are located in the commercial district, the City has determined 33 dwelling units per acre including adjustments, to be the most feasible density for development on this site. The City intends to achieve a density of 33 dwelling units per acre through a zoning code amendment, and therefore is utilizing the gross density to calculate anticipated units.

Due to the size of the site, less than 0.5 acres, the assumed affordability will be limited to above moderate units. Based on the feasibility to construct high-end townhomes, condos, single-family, etc., the site is expected to develop despite its small size.

The property owner has indicated an intention to add a second story to accommodate new residential units.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-71 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table C-53 Site #25 Description
Site Description Site Image & Capacity Calculation
Address Lincoln Southeast of Ocean
APN 010-147-010-000
By-Right with 20%
Affordable
No, used in 4th and 5th cycles, but
nonvacant.

Size of Site 0.09 acre
Zoning CC
Allowable Density 0-22 du/ac**
Applied RHNA
Affordability Above Moderate-Income: 2 units
Existing Use Non-vacant; commercial space
Infrastructure
Availability Yes, no constraints. Realistic Capacity utilizing factors = (0.09 X 33) (.90) (.95) (.95) = 2 units
100% of minimum density Environmental
Constraints None known
SOURCE: City of Carmel-by-the-Sea
NOTES: ** Existing zoning code permits 0-22 du/ac in commercial zones (SC, RC, CC). Program 3.1.G establishes a minimum density of 33 du/ac for commercial zones. Assumptions for site development use programmatic zoning amendment of minimum 33 du/ac.

Table C-54 Site #25 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 95%
Based on market demand for medium-density housing types such as condominiums, apartments, townhomes, and single-family and current cost of construction.

Infrastructure availability No adjustment Not applicable, no constraints Environmental Constraints No adjustment No known site constraint SOURCE: City of Carmel-by-the-Sea
Attachment 2
Appendix C – Housing Sites Inventory Analysis C-72 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 C.5 Additional Opportunities for Residential Development and Affordable Housing
Employee Housing at Local Hotels
The City has many hotels in need of renovation and many are actively applying for building permits to begin the process of refurbishing their properties. As part of the refurbishment process, the City has begun to reach out to hotel owners to discuss including at least one (1) affordable unit on-site for a current employee. To incentivize the development of on-site employee housing within existing sites for overnight visitor accommodations, the City has developed Program 1.3.D, which amends the Municipal Code to allow at least one on-site affordable employee housing unit in conjunction with one new overnight visitor accommodation room (see Chapter 2). Initially, the program would be voluntary. However, at the mid-cycle mark, if the program has not gained interest, it would become mandatory.

The City is currently piloting the development of on-site employee housing in existing hotels with two establishments, the Hofsas House and the Pine Inn. Both establishments anticipate undergoing remodeling within the next two years and are in the preliminary planning stages with plans showing on-site employee housing. Both property owners have been tracking the housing element update, and have been in discussion with City staff regarding potential incentives for providing on-site employee housing. The City plans to codify actions in an ordinance for these sites based on the outcome of the projects by December 2026.

The City intends to conduct more extensive outreach with overnight visitor accommodation property owners to better discern the viability of the incentive program by December 2024.

Table C-55 includes known properties that fit the Overnight Visitor Accommodation and would therefore be candidates for incentive Program 1.3.D. 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.

Additionally, the City has developed Program 1.3.B, which encourages property owners to consider rehabilitating their sites as multi-family rental residences through a transfer of development rights.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-73 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table C-55 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 Best Western 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 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
Attachment 2
Appendix C – Housing Sites Inventory Analysis C-74 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 APN Address Overnight Visitor Accommodation
Establishment Name
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
SOURCE: City of Carmel-by-the-Sea
Table C-56 lists Overnight Visitor Accommodation properties that meet the eligibility criteria to be considered for transfer of development rights to rehabilitate as multi-family rental residences.

Eligibility criteria include the site being zoned for commercial or multi-family residential development and being at least 0.5 acres in size. Of the 46 Overnight Visitor Accommodation sites listed in Table C-55, five (5) meet the eligibility criteria for transfer of development rights to rehabilitate as multi-family residential. Each of these sites are located in the City’s Commercial District and are greater than 0.5 acres in size. The City will develop an incentive program for property owners to encourage the transfer of development rights. Program 1.3.B will monitor the implementation of the incentive program (see Chapter 2).

Table C-56 Eligible Sites for Transfer of Development Rights APN Address
Overnight Visitor
Accommodation
Establishment Name
Size
(Acres) Zoning
010124001000
010124014000 2 NW of 4th on San Carlos Hofsas House 0.84 RC 010123014000 4th & San Carlos Hotel Carmel 0.60 RC
010214032000 Ocean @ Monte Verde Lobos Lodge 0.62 RC
010124012000 4th & San Carlos Svensgaard's Inn 0.67 RC
010213003000 Ocean between
Lincoln/Monte Verde The Pine Inn 0.52 CC
SOURCE: City of Carmel-by-the-Sea
Attachment 2
Appendix C – Housing Sites Inventory Analysis C-75 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 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 one (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 more conservative number of 30 ADUs 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.

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 minimum of 34 ADUs over the eight-year planning period, although City staff expects to exceed this number. 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.

C.6 AFFH Analysis of Sites
Per Assembly Bill (AB) 686, housing elements must analyze the location of lower-income sites in relation to areas of high opportunity, and in instances where lower-income sites are located in lower resource areas and/or segregated concentrated areas of poverty, cities must incorporate policies and programs to remediate those conditions. For example, implementing place-based strategies to create opportunity in areas of disinvestment such as, investments in enhanced infrastructure, services, schools, jobs, and other community needs. The following serves as a complete AFFH analysis of potential sites for new housing developments for the next eight-year planning cycle.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-76 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Tables C-57 through C-65 and Figures C-3 through C-13 show the distribution of projected units by income category of the following indicators compared to citywide patterns to understand how the projected locations of units will affirmatively further fair housing: median income, predominant population, female headed households, poverty rates, TCAC/HCD opportunity areas, disability rates, cost burden rates, overcrowding, substandard housing, and median contract rent. The following sites inventory discussion includes an analysis of the number of projected units by income category, total RHNA capacity, and city acreage by income category to further assess the potential impacts of the sites inventory to affirmatively further fair housing.

The City has a total RHNA of 349 units for the 2023-2031 period. Carmel-by-the-Sea has adequate sites to accommodate housing development at 117 percent of the RHNA. The site inventory provides a total capacity for 410 units and opportunities for the development of a variety of housing types suitable for a range of households and income levels. Of this, 345 units are to be accommodated through underutilized sites, 5th cycle recycled sites, and pipeline projects. In accordance with State law, all of the sites in the inventory are considered to be zoned appropriately to facilitate housing affordable to lower-income households.

Please note: several of the City’s sites in the inventory list are comprised of multiple parcels (referred to as APNs (Assessor’s Parcel Numbers). Each APN is shown with a separate dot symbol on Figures C-3 through C-13.

Attachment 2
Chapter 1.0 – Introduction C-77 EMC Planning Group Inc.

City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table C-57 AFFH Indicators Table
Assessment of Fair Housing Indicators
Realistic Capacity Segregation/Integration Access to Opportunity Disproportionate Housing Needs Site
#
Census
Tract APN VLI LI MI AM
Household
Median
Income1
Predominant
Race2
Diversity
Index3
Female
Headed
HH4
Disabled
Population5
Poverty
Level6

TCAC/HUD
Opportunity Area7
Cost Burdened
Renters8 Overcrowding9
Primary Underutilized Sites
1 118.02
010143001000 20 10 3 $98,839
Non-Hispanic
White

24.6 4.60% 7.7% 0.40%
Highest Resource

61.8% 0%
2 010151001000 30 25 5
3 118.01
010104001000
010104004000 28 11 17
$101,042 37.8 2.70% 17.1% 1.90% 52% 3.30% 4 010095013000 010095012000 5 12
5 010212027000
010212004000
010212026000
2 1 3 3
6 118.02
010144015000
010144016000 3 2
$98,839 24.6 4.60% 7.7% 0.40% 61.80% 0%
7 010142001000 5
8 010149012000
010149010000
010149011000
010149001000
11 10
9 010144014000 2 3
10 010087012000 11
11 010085004000
010085005000
010085003000
2 4
Subtotal 96 64 33 35
5th Cycle Recycled Sites
12 118.02
010141003000 12
$98,839
Non-Hispanic
White

24.6 4.60% 7.7% 0.40%
Highest Resource
13 010142013000 2 61.80% 0%
14 010191004000 2
15 118.01
010097007000 5 $101,042 37.8 2.70% 17.1% 1.90% 52% 3.30% 16 010098004000 3 17 118.02 010145008000 6 $98,839 24.6 4.60% 7.7% 0.40% 61.80% 0% Chapter 1.0 – Introduction C-78 EMC Planning Group Inc.

City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Assessment of Fair Housing Indicators
Realistic Capacity Segregation/Integration Access to Opportunity Disproportionate Housing Needs Site
#
Census
Tract APN VLI LI MI AM
Household
Median
Income1
Predominant
Race2
Diversity
Index3
Female
Headed
HH4
Disabled
Population5
Poverty
Level6

TCAC/HUD
Opportunity Area7
Cost Burdened
Renters8 Overcrowding9
18 118.01
010138006000 4 $101,042 37.8 2.70% 17.1% 1.90% 52% 3.30% 19 010139001000 2
20 118.02
010142006000 6
$98,839 24.6 4.60% 7.7% 0.40% 61.80% 0%
21 010146001000 4
22 010146002000 5
23 010146003000 5
24 010146004000 2
25 010147010000 2
Subtotal 0 0 0 60
Pipeline Projects
26 118.01 010138003000
010138021000 12 $101,042
Non-Hispanic
White

37.8 2.70% 17.1% 1.90%
Highest Resource
52% 3.30%
27 118.02
010145012000
010145024000
010145023000
8 $98,839 24.6 4.60% 7.7% 0.40% 61.80% 0%
28 118.01
010021014000
010021013000
010021012000
010021011000
010021030000
010021031000
010021032000
010021033000
8 $101,042 37.8 2.70% 17.1% 1.90% 52% 3.30%
29 118.02 010146010000 3 $98,839 24.6 4.60% 7.7% 0.40% 61.80% 0% 30 118.01
009-162-023 1
31 010-251-036 1 $101,042 37.8 2.70% 17.1% 1.90% 52% 3.30% 32 010-102-009 1
33 118.02
010-193-024 1
34 010-043-005 1 $98,839 24.6 4.60% 7.7% 0.40% 61.80% 0% 35 010-174-024 1
36 118.01 010-029-009 1 $101,042 37.8 2.70% 17.1% 1.90% 52% 3.30% 37 118.02 009-352-016 1 $98,839 24.6 4.60% 7.7% 0.40% 61.80% 0% Chapter 1.0 – Introduction C-79 EMC Planning Group Inc.

TCAC/HUD
Opportunity Area7
Cost Burdened
Renters8 Overcrowding9
38 118.01 010-211-004 1 $101,042 37.8 2.70% 17.1% 1.90% 52% 3.30% 39 118.02
010-269-005 1
40 009-382-019 1 $98,839 24.6 4.60% 7.7% 0.40% 61.80% 0% 41 010-284-003 1
42 118.01
010-103-015 1
43 010-037-003 1 $101,042 37.8 2.70% 17.1% 1.90% 52% 3.3 44 010-232-012 1
45 118.02
010-311-016 1
46 010-331-044 1 $98,839 24.6 4.60% 7.7% 0.40% 61.80% 0% 47 010-312-004 1
48 118.01 010-126-017 1 $101,042 37.8 2.70% 17.1% 1.90% 52% 3.30% 49 118.02 010-164-015 1 $98,839 24.6 4.60% 7.7% 0.40% 61.80% 0% 50 118.01
010-251-035 1 $101,042 37.8 2.70% 17.1% 1.90% 52% 3.30% 51 010-251-002 1
52 118.02 010-076-014 1 $98,839 24.6 4.60% 7.7% 0.40% 61.80% 0% 53 118.01 010-031-021 1 $101,042 37.8 2.70% 17.1% 1.90% 52% 3.30% 54 118.02
010-265-010 1 $98,839 24.6 4.60% 7.7% 0.40% 61.80% 0%
55 010-301-020 1
Subtotal 0 0 0 57
Total 96 64 33 152 345
SOURCE: City of Carmel-by-the-Sea; US Census ACS 5-Year Estimates; HCD AFFH Data Viewer; CTCAC/HCD Opportunity Area Maps NOTES: VLI = very low-income; LI = low-income; MI = moderate-income; AM = above moderate-income; HH = household 1 US Census ACS 5-Year Estimate, 2021, Table DP03; census tract level 2 US Census ACS 5-Year Estimate, 2021, Table B03002; census tract level 3 HCD AFFH Data Viewer, Diversity Index, 2023; census tract level 4 US Census ACS 5-Year Estimate, 2021, Table B11001; census tract level 5 US Census ACS 5-Year Estimate, 2021, Table S1810; census tract level 6 US Census ACS 5-Year Estimate, 2021, Table S1701; census tract level 7 CTCAC/HCD Opportunity Area Maps, 2023; census tract level 8 HCD AFFH Data Viewer, Overpayment by Renter Households, 2021; census tract level 9 HCD AFFH Data Viewer, Overcrowding, 2021; census tract level Chapter 1.0 – Introduction C-80 EMC Planning Group Inc.

City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Potential Effect on Access to Opportunity
TCAC/HCD Opportunity Areas
The TCAC/HCD Opportunity Areas are categorized by census tracts into high, moderate, or lowresource areas based on a composite score of economic, education, and environmental factors that have the ability to perpetuate poverty and segregation. These factors include: school proficiency, median income, median housing prices, and environmental pollution.

Table C-58 reports the census tracts for which housing opportunity sites are located and the associated TCAC/HCD opportunity area domain scores. As shown in Table C-58, Carmel-by-theSea is comprised of only highest resource areas. Census Tract 118.01 shows an insignificant difference of 0.01 for the economic domain and a difference of 0.02 for the environmental domain compared to Census Tract 118.02.

Table C-58 Census Tracts by TCAC/HCD Opportunity Area Domains, 2023 Census Tract Economic
Domain
Environmental
Domain
Education
Domain
Composite
Index
Opportunity
Designation
118.01 0.99 0.94 0.94 5.0 Highest Resource
118.02 1.0 0.96 0.94 5.0 Highest Resource
SOURCE: TCAC/HCD Opportunity Map, 2023; City of Carmel-by-the-Sea Table C-59 and Figure C-3 show the distribution of housing opportunity units at each income level according to their designated resource area. All anticipated housing opportunity units are planned to be accommodated in highest resource areas with adequate access to economic and educational opportunities, and in areas with positive environmental outcomes (low levels of pollution burden).

Table C-59 Site Inventory Unit Count by TCAC/HCD Opportunity Area, 2023 Income Group Highest Resource Percent
Very Low-Income 96 27.8%
Low Income 64 18.5%
Moderate-Income 33 9.5%
Above Moderate-Income 152 44.0%
Total 345 100%
SOURCE: TCAC/HCD Opportunity Areas Map, 2023; City of Carmel-by-the-Sea Attachment 2
Chapter 1.0 – Introduction C-81 EMC Planning Group Inc.

City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Figure C-3 Sites Inventory Analysis by TCAC/HCD Opportunity Areas, 2023 SOURCE: HCD AFFH Data Viewer; City of Carmel-by-the-Sea Attachment 2
Chapter 1.0 – Introduction C-82 EMC Planning Group Inc.

City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Educational Opportunities, Economic Mobility, and Environmental Health As discussed at length in Appendix A, all census tracts across Carmel-by-the-Sea score high in the educational, economic, and environmental domains that comprise TCAC/HCD opportunity area designations.

The TCAC/HCD Opportunity Area Education score is based on math proficiency, reading proficiency, high school graduation rates, and the student poverty rate. As shown in Figure C-4, all census tracts across the city received positive scores for the education domain, indicating that households city-wide have adequate access to educational institutions and poverty rates are low (also supported in Figure C-10).

The TCAC/HCD Opportunity Area Economic score is based on poverty, adult education, employment, proximity to jobs, and median home value. As shown in Figure C-5, all census tracts across the city received positive scores for the economic domain, indicating that households citywide have adequate access to public resources, education, employment, live in close proximity to jobs, median home values reflect low crime rates, and good overall neighborhood characteristics.

As shown in Figure C-6, Carmel-by-the-Sea is within the 0-20 range, indicating residents are less likely to have health problems resulting from poor environmental conditions. The City has demonstrated commitment to reducing negative environmental conditions through its 2021 adopted Climate Action Plan (CAP), which is further prioritized through policies and programs developed through the Housing Element that align with the City’s mission to reduce greenhouse gas emissions.

Overall, residents across the city experience similar access to educational opportunities, economic mobility, and low levels of pollution burden. Therefore, the distribution of housing opportunity sites and units at each affordability level will not create a discrepancy in access or perpetuate existing barriers to access. Rather, the increase in housing supply is intended to create more balanced living patterns in Carmel-by-the-Sea.

Attachment 2
Chapter 1.0 – Introduction C-83 EMC Planning Group Inc.

City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Figure C-4 Sites Inventory Analysis by TCAC/HCD Education Domain, 2021 SOURCE: HCD AFFH Data Viewer; City of Carmel-by-the-Sea Attachment 2
Chapter 1.0 – Introduction C-84 EMC Planning Group Inc.

City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Figure C-5 Sites Inventory Analysis by TCAC/HCD Economic Domain, 2023 SOURCE: HCD AFFH Data Viewer; City of Carmel-by-the-Sea Attachment 2
Chapter 1.0 – Introduction C-85 EMC Planning Group Inc.

City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Figure C-6 Sites Inventory Analysis by CalEnviroScreen 4.0, 2021 SOURCE: HCD AFFH Data Viewer; City of Carmel-by-the-Sea Attachment 2
Chapter 1.0 – Introduction C-86 EMC Planning Group Inc.

City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Potential Effect on Patterns of Integration and Segregation Diversity
As discussed in the Housing Needs and Fair Housing Report (Appendix A), non-Hispanic White residents comprise the largest racial group in Carmel-by-the-Sea (86.5 percent of population), followed by Hispanic/Latino (8.2 percent), Asian/Pacific Islander (5.2 percent), and Black or African American populations (less than 1 percent). Figure C-7 shows the distribution of anticipated housing opportunity units at each income level according to predominant populations. When analyzing predominant populations in Carmel-by-the-Sea, there is no geographic variation at the census tract or block group level, non-Hispanic White residents makeup the majority across the city.

Table C-60 reports the distribution of units at each income level by the Diversity Index score developed by ESRI in 2023, and the percent of non-Hispanic White population present according to census tract. The Diversity Index represents the likelihood that two persons, chosen at random from the same area, belong to different race or ethnic groups.

Overall, diversity in Carmel-by-the-Sea is low and only slightly varies according to census tract. As shown in Table C-60, Census Tract 118.01, located north of Ocean Avenue, has a slightly lower proportion of non-Hispanic White residents (86.5 percent), compared to Census Tract 118.02, located south of Ocean Avenue (96.7 percent non-Hispanic White). This aligns with the City’s Diversity Index for each census tract. Census Tract 118.01 has a diversity score of 37.8, whereas Census Tract 118.02 has a diversity score of 24.6, indicating that in both census tracts, there is a probability of approximately 38 percent of 25 percent, respectively, that two people randomly chosen from Carmel-by-the-Sea would belong to different race or ethnic groups.

Table C-60 Site Inventory Unit Count by Diversity Index, 2023 Income
Group
Census Tract 118.01
(37.8 Diversity Score and 86.5%
Non-Hispanic White Population)
Percent
Census Tract 118.02
(24.6 Diversity Score and 96.7%
Non-Hispanic White Population)
Percent
Very Low-Income 30 23% 66 30%
Low Income 12 9% 52 24%
Moderate-Income 25 20% 8 4%
Above ModerateIncome 61 48% 91 42%
Total 128 100% 217 100%
SOURCE: HCD AFFH Data Viewer, 2023; U.S. Census Bureau, ACS 5-Year Estimate 2021, Table B03002, Census Tract level Attachment 2
Chapter 1.0 – Introduction C-87 EMC Planning Group Inc.

City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Figure C-7 Sites Inventory Analysis by Predominant Population, 2021 SOURCE: HCD AFFH Data Viewer; City of Carmel-by-the-Sea; EMC Planning Group Attachment 2
Chapter 1.0 – Introduction C-88 EMC Planning Group Inc.

City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 As shown in Table C-60, Census Tract 118.01 is anticipated to accommodate 128 housing opportunity units, of which approximately 33 percent are lower-income. Census Tract 118.02 is anticipated to accommodate 217 housing opportunity units, of which approximately 54 percent are lower-income. This distribution of units is intended to increase the level of diversity in the area.

Increasing the supply of housing affordable to a range of income categories is intended to mitigate further segregation between racial and ethnic groups, while also providing an opportunity for lowerincome households with economic connections to the area to obtain adequate and affordable housing.

To support households in need of assistance, the City has partnered with several service organizations in the region to connect residents with the appropriate assistance (I.e., housing, employment, in-home care, etc.) The City’s demographic makeup includes a large senior population.

The Carmel Foundation provides a myriad of services for senior citizens including affordable housing, in-home support, meal delivery, and daily activities to cultivate community. Additionally, the City coordinates with the County and State to provide fair housing resources to ensure that all residents are aware of the processes to file a complaint, receive counseling on housing and employment, and mediate landlord/tenant disputes. These efforts to affirmatively further fair housing for all ages, races, and ethnicities are rooted in enabling a range of households to secure housing in Carmel-by-the-Sea.

Figure C-8 shows the distribution of anticipated housing opportunity units at each income level according to racial segregation. As shown, the City of Carmel-by-the-Sea has a high level of White segregation. This aligns with data reported for the Diversity Index and predominant populations in Carmel-by-the-Sea. Despite the City’s small size of one-square-mile, there is little racial and ethnic integration.

The City’s historic land use and zoning has primarily enabled the development of single-family homes, which coupled with high land values, construction costs, and tedious design and review processes can pose financial barriers for lower income households attempting to move into the City.

This may have been a contributing factor to the lack of racial and ethnic integration within the City.

In reviewing potential governmental constraints to development, the City has acknowledged that current design review and permitting processes should be updated to provide a more expedient and objective review process. A suite of programs has been established to monitor the implementation of improving the development review and approval process, including Program 1.4.A – Eliminate Unnecessary Use Permits; Program 1.4.B – Objective Design and Development Standards; and Program 3.1.F – Expedited Processing Procedures (see Chapter 2). Additionally, the City is committed to enabling employee housing through the use of transfer of development rights for hotel/motels in the City, as well as incentivizing hotel/motel owners to provide on-site affordable employee housing. These incentives are established and monitored by Program 1.3.B and Program

1.3.D (see Chapter 2). Through the use of these programs, the City intends to facilitate the development of new affordable residential units available to lower-income households.

Attachment 2
Chapter 1.0 – Introduction C-89 EMC Planning Group Inc.

City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Figure C-8 Site Inventory Analysis by Racial Segregation, 2020 SOURCE: HCD AFFH Data Viewer; City of Carmel-by-the-Sea; EMC Planning Group Attachment 2
Chapter 1.0 – Introduction C-90 EMC Planning Group Inc.

City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Median Household Income
Figure C-9 and Figure C-10 illustrate the distribution of anticipated housing opportunity units at each income level according to median household income and poverty status, respectively.

As shown in Figure C-9 and Figure C-10, according to census tract, the median household income in Carmel-by-the-Sea ranges from less than $90,100 to $120,000 and coincides with a low rate of poverty (less than 10 percent). Census Tract 118.01 has the highest median household income with households earning approximately $101,042. Whereas, households located in Census Tract 118.02 earn a slightly lower median household income of $98,849.

Table C-61 reports the distribution of housing opportunity sites by income category according to median income and poverty status. All anticipated housing units are located in census tracts that have a poverty rate of less than 5 percent and earn more than the Monterey County median household income of $81,600.3 Approximately 74 percent of anticipated lower-income sites are located in Census Tract 118.02, which has a median income of $98,839 and approximately 26 percent are located in Census Tract 118.01, which has a median income of $101.042. The distribution of units is intended to prevent segregated living patterns based on income, while also alleviating existing affordability pressures for lower-income households.

Table C-61 Site Inventory Unit Count by Median Income and Poverty Status, 2021 Income Group
Poverty Level Less Than 5%
Census Tract 118.01
$101,042
Census Tract 118.02
$98,839
Very Low-Income 30 23% 66 30%
Low Income 12 9% 52 24%
Moderate-Income 25 20% 8 4%
Above ModerateIncome 61 48% 91 42%
Total 128 100% 217 100%
SOURCE: U.S. Census Bureau ACS 5-Year Estimate, 2021, Table S1701; City of Carmel-by-the-Sea 3 California Revised State Income Limits December 31, 2021.

Attachment 2
Chapter 1.0 – Introduction C-91 EMC Planning Group Inc.

City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Figure C-9 Sites Inventory Analysis by Median Income, 2021 SOURCE: HCD AFFH Data Viewer; City of Carmel-by-the-Sea Attachment 2
Chapter 1.0 – Introduction C-92 EMC Planning Group Inc.

City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Figure C-10 Sites Inventory Analysis by Poverty Status, 2021 SOURCE: HCD AFFH Data Viewer; City of Carmel-by-the-Sea Attachment 2
Chapter 1.0 – Introduction C-93 EMC Planning Group Inc.

City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 The slight geographical variation in median household income by census tract may be linked to the affordability of housing types in the City. Census Tract 118.02, Block Group 2, encompasses the portion of the City located south of Ocean Avenue and north of 11th Avenue. This includes part of the City’s downtown Commercial District, which allows medium density residential uses. All newly constructed second story floor area, including area in new buildings, remodeled buildings and replacement, rebuilt or reconstructed buildings, must be occupied by residential dwellings only and cannot not be used for any commercial land use (CMC 17.14.050F). While this has enabled the development of more dense residential uses in the largely built-out community, it may have also contributed to the isolation of lower-income households.

To mitigate existing and future segregated living patterns, the City identified housing opportunity sites that are dispersed throughout the city. However, due to the small size of the city, being less than one-square-mile, and it’s built out nature, most units are located in the central region of the City where higher densities and mixed uses are allowed. In the last five years, the City has seen several remodeling and redevelopment projects within the Commercial District, and has engaged in discussions with several property owners who are interested in developing residential units. Based on recent projects and property owner interest, the City believes the most developable sites for housing are located within the City’s Commercial District.

To facilitate the development of residential units, the City has committed to amending its Municipal Code to enable higher residential densities (establishing a minimum density for the base zoning of 33 dwelling units per acre) in the Commercial Districts (SC, CC, RC) and Multi-Family Residential District (R-4) (Program 3.1.G); requires residential uses for any new second story floor area in the Commercial District (CMC 17.14.050F); and is incentivizing hotel/motel owners to provide on-site affordable employee housing (Program 1.3.D) and/or to engage in a transfer of development rights process to convert existing accommodations to provide affordable multi-family residential units (Program 1.3.B). All programs are listed in full in Chapter 2.

Female-Headed, Single-Parent Households
According to 2021 ACS data, female-headed households comprise 3.6 percent of all households in Carmel-by-the-Sea. Table C-62 reports the distribution of anticipated housing opportunity units at each income level according to the concentrations of single-parent families with a female-headed householder.

As shown in Table C-62, all anticipated housing opportunity units are located in census tracts where female-headed households makeup less than 5 percent of all households. Census Tract 118.01 has a slightly lower percentage of female-headed households (2.7 percent) compared to Census Tract 118.02 (4.6 percent). Census Tract 118.01 is anticipated to accommodate approximately 128 units ranging from very low- to above moderate-income. Census Tract 118.02 is anticipated to accommodate approximately 217 units ranging from very low- to above moderate-income.

Attachment 2
Chapter 1.0 – Introduction C-94 EMC Planning Group Inc.

City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Both census tracts coincide with low rates of poverty (less than 2 percent) and are designated highest resource areas with adequate access to public goods, services, transportation, educational institutions, and economic opportunities. The distribution of lower-income units in areas with lower concentrations of female-headed households is intended to mitigate current and future concentrations of female-headed households. Additionally, increasing housing supply across the city is expected to mitigate the overpayment, housing scarcity, and displacement that lower-income persons and single-parent households are susceptible to. Increasing housing supply will be coupled with programs to incentivize the development of affordable housing for lower-income and special needs households (Programs 3.1.B, 5.1.A, 5.1.B, 5.1.C, see Chapter 2).

Due to a lack of available mapping data, a map illustrating female-headed households across Carmelby-the-Sea is not provided.

Table C-62 Sites Inventory Unit Count by Female-Headed Households, 2021 Income
Group
Census Tract 118.01
Female-Headed Households

2.7%
Percent
Census Tract 118.02
Female-Headed Households

4.6%
Percent
Very Low-Income 30 23% 66 30%
Low Income 12 9% 52 24%
Moderate-Income 25 20% 8 4%
Above ModerateIncome 61 48% 91 42%
Total 128 100% 217 100%
SOURCE: U.S. Census Bureau ACS 5-Year Estimate, 2021, Table B11001; City of Carmel-by-the-Sea Population with a Disability
According to 2021 ACS data, approximately 12.3 percent of Carmel-by-the-Sea’s population live with at least one disability. Table C-63 and Figure C-11 show the distribution of anticipated housing opportunity units at each income level according the population with a disability.

As shown in Figure C-11, less than 10 percent of residents located in Census Tract 118.02 live with a disability. Whereas, approximately 17 percent of residents located in Census Tract 118.01 live with a disability.

As shown in Table C-63, approximately 63 percent of the anticipated housing opportunity units are located in census tracts where approximately 8 percent of the population live with a disability, and 37 percent of the units are located in census tracts where approximately 17 percent of the population live with a disability. Census Tract 118.01 has a higher proportion of residents living with a disability (17 percent) compared to Census Tract 118.02 (7.7 percent). There is no correlation Attachment 2
Chapter 1.0 – Introduction C-95 EMC Planning Group Inc.

City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 between disability rates and resource areas in Carmel-by-the-Sea, as both census tracts are highest resource areas, coinciding with low poverty rates (less than 2 percent), and median incomes greater than Monterey County.

As previously mentioned, Carmel-by-the-Sea houses a large proportion of senior citizens, likely contributing to the percentage of residents living with a disability. The Carmel Foundation is located in Census Tract 118.02, south of Ocean Avenue. The Foundation provides 50 affordable residential units for seniors aged 55 and older. In addition to providing affordable housing, the Foundation offers a myriad of services to seniors from meal delivery to daily social activities.

Table C-63 Sites Inventory Unit Count by Population with a Disability, 2021 Income
Group
Census Tract 118.02
Population with a Disability

7.7%
Percent
Census Tract 118.01
Population with a Disability

17.1%
Percent
Very Low-Income 66 30% 30 23%
Low Income 52 24% 12 9%
Moderate-Income 8 4% 25 20%
Above ModerateIncome 91 42% 61 48%
Total 217 100% 128 100%
SOURCE: U.S. Census Bureau ACS 5-Year Estimate, 2021, Table S1810; City of Carmel-by-the-Sea Census Tract 118.02 is anticipated to accommodate 217 units ranging from very low- to above moderate-income. Of the 217 units, approximately 54 percent are lower-income. Census Tract 118.01 is anticipated to accommodate 128 units ranging from very low- to above moderate-income.

Of the 128 units, approximately 33 percent are lower-income. The distribution of units is intended to meet existing housing needs, while also mitigating concentrations of residents living with a disability. Increasing the housing supply throughout the city is expected to mitigate the overpayment, housing scarcity, and displacement that lower-income persons with disabilities are susceptible to.

To address barriers to obtaining accessible and affordable housing for residents/households living with a disability, the City has included Program 3.2.A, which commits the City to revising procedures for reasonable accommodation, as well as reducing and/or waiving permit fees for persons with a disability (see Chapter 2).

Attachment 2
Chapter 1.0 – Introduction C-96 EMC Planning Group Inc.

City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Figure C-11 Sites Inventory Analysis by Population with a Disability, 2021 SOURCE: HCD AFFH Data Viewer; City of Carmel-by-the-Sea Attachment 2
Chapter 1.0 – Introduction C-97 EMC Planning Group Inc.

City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Potential Effect on Disproportionate Housing Needs & Displacement Risk Overcrowding
Overcrowding is defined as a household with more than one occupant per room excluding bathrooms and kitchens. Units with more than 1.5 persons per room are considered severely overcrowded. According to 2021 ACS data, approximately 1.6 percent of households in Carmel-bythe-Sea experience some level of overcrowded living conditions. Table C-64 and Figure C-12 show the distribution of housing opportunity units at each income level according to overcrowding.

As shown in Table C-64, approximately 63 percent of anticipated housing opportunity units are located in Census Tract 118.02 where no households experience overcrowding. In Census Tract 118.01, approximately 3 percent of households experience overcrowding. Census Tract 118.01 is anticipated to accommodate 128 units ranging from very low- to above moderate-income. As discussed in Appendix A – Housing Needs and Fair Housing Report, the level of overcrowding in Carmel-by-the-Sea is lower than Monterey County and nearby jurisdictions, ranging from 1 to 14 percent.

The distribution of housing opportunity units is anticipated to reduce overcrowding by increasing housing supplying throughout the city. A total of 42 lower-income units are anticipated in Census Tract 118.01 to meet the existing need for affordable residential units and mitigate future concentrations. The City has developed a suite of programs to facilitate the development of a variety of housing types for all income levels (Programs 1.3.A, 1.3.C, 1.3.D, 1.3.F, 1.3.G, 1.3.J, 3.3.A, 3.3.B,

3.3.C, 3.3.D, see Chapter 2).

Table C-64 Sites Inventory Unit Count by Overcrowding, 2021 Income
Group
Census Tract 118.02
Household Overcrowding
0%
Percent
Census Tract 118.01
Household Overcrowding

3.3%
Percent
Very Low-Income 66 30% 30 23%
Low Income 52 24% 12 9%
Moderate-Income 8 4% 25 20%
Above ModerateIncome 91 42% 61 48%
Total 217 100% 128 100%
SOURCE: HCD AFFH Data Viewer, 2017-2021; City of Carmel-by-the-Sea Attachment 2
Chapter 1.0 – Introduction C-98 EMC Planning Group Inc.

City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Figure C-12 Sites Inventory Analysis by Overcrowding, 2021 SOURCE: HCD AFFH Data Viewer; City of Carmel-by-the-Sea Attachment 2
Chapter 1.0 – Introduction C-99 EMC Planning Group Inc.

City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Cost Burden & Displacement Risk
Cost burden is measured as households spending more than 30 percent of their gross income including utilities for housing. Consistent with the region, households throughout Carmel-by-the-Sea are overpaying for housing due to rapidly increasing market conditions that outpace wage increases.

Table C-65 and Figure C-13 show the distribution of housing opportunity units at each income level according to the percentage of cost burdened renter households.

As shown in Figure C-13, between 40 to 80 percent of households experience cost burden in Carmel-by-the-Sea. In Census Tract 118.01, located north of Ocean Avenue, approximately 52 percent of renter households experience cost burden. Whereas, in Census Tract 118.02, located south of Ocean Avenue, approximately 62 percent of renter households experience cost burden.

As shown in Table C-65, approximately 63 percent of the anticipated housing opportunity units are located in Census Tract 118.02, where approximately 62 percent of renter households experience cost burden. Thirty-seven (37) percent of anticipated housing opportunity units are located in Census Tract 118.01, where approximately 52 percent of renter households experience cost burden.

There is no correlation between cost burden rates and resource areas in Carmel-by-the-Sea, as all census tracts are designated highest resource areas, coinciding with low poverty rates (less than 2 percent), and median incomes greater than Monterey County.

Census Tract 118.02 is anticipated to accommodate approximately 74 percent of the City’s anticipated lower-income units, and Census Tract 118.01 is anticipated to accommodate approximately 26 percent. The distribution of housing units is intended to alleviate existing conditions of cost burden among renter households by increasing the supply of affordable housing in areas where it is needed most, while also acting as a mitigation measure against segregated living patterns based on income. The City intends the housing site inventory distribution to encourage a balanced environment for future housing development.

Table C-65 Site Inventory Unit Count by Cost Burdened Renter Households, 2021 Income
Group
Census Tract 118.01
Household Overcrowding
52%
Percent
Census Tract 118.02
Household Overcrowding
62%
Percent
Very Low-Income 30 23% 66 30%
Low Income 12 9% 52 24%
Moderate-Income 25 20% 8 4%
Above ModerateIncome 61 48% 91 42%
Total 128 100% 217 100%
SOURCE: HCD AFFH Data Viewer, 2021; City of Carmel-by-the-Sea Attachment 2
Chapter 1.0 – Introduction C-100 EMC Planning Group Inc.

City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 To address barriers to obtaining affordable housing for lower-income and special needs households, the City has developed a suite of programs to facilitate the construction of housing affordable to lower-income households and support lower-income households through continued education (Programs 1.4.A, 3.1.B, 3.1.C, 3.1.D, 3.1.E, 3.1.F, 5.1.A, 5.1.B, 5.1.C, see Chapter 2).

Summary of AFFH Analysis of Sites
Generally, Carmel-by-the-Sea is designated a highest resource area with a low level of diversity, low levels of poverty, and predominantly comprised of non-Hispanic White households. The household median income varies slightly according to census tract, ranging from $90,100 to $120,000 annually.

Household overcrowding also slightly varies according to census tract, ranging from 0 to 5 percent across the city. Additionally, cost burden among renter households varies according to census tract, ranging from 52 to 62 percent of renter households. Residents living with a disability vary according to census tract, ranging from 7 to 17 percent. Lastly, female headed-households comprise a total of

3.6 percent of all households in Carmel-by-the-Sea.

The selected sites for the housing opportunity sites inventory are distributed throughout the city and are anticipated to mitigate segregated patterns of development and increase opportunities through the integration of all affordability levels for housing units. The City has developed a suite of programs to facilitate the construction of housing affordable to lower-income and special needs households, and to support lower-income households. For a comprehensive discussion of the City’s goals, policies, and programs to support the development of affordable housing, see Chapter 2.

Attachment 2
Chapter 1.0 – Introduction C-101 EMC Planning Group Inc.

City of Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Figure C-13 Sites Inventory Analysis by Cost Burdened Renter Households, 2021 SOURCE: HCD AFFH Data Viewer; City of Carmel-by-the-Sea Attachment 2
Appendix C – Housing Sites Inventory Analysis C-102 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024 C.7 Conclusion
The underutilized sites, on-site hospitality employee housing, accessory dwelling units, and pipeline projects identified in this report are sufficient to accommodate approximately 117 percent of the City of Carmel-by-the-Sea’s Regional Housing Needs Allocation for the 6th Cycle planning period.

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. Several sites have property owner interest.

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 in Figure C-14, Example Development Map, presented on the following page. 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 natural resources and 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.

Attachment 2
Appendix C – Housing Sites Inventory Analysis C-103 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024 Figure C-14 Example Development Map
Attachment 2
Appendix C – Housing Sites Inventory Analysis C-104 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024 This side intentionally left blank.

Attachment 2
Review of Previous Housing Element D

APPENDIX
Attachment 2
Attachment 2
Table of Contents
APPENDIX D REVIEW OF PREVIOUS HOUSING ELEMENT............................................ D-1 D.1 Introduction ........................................................................................................................... D-1 D.2 Effectiveness of the Element............................................................................................... D-1 D.3 Progress in Implementation ................................................................................................. D-2 D.4 Summary .............................................................................................................................. D-13 Tables
Table D-1 Overview of Adopted Programs ............................................................................ D-3 Table D-2 Housing Units Produced, 2015-2023................................................................... D-13

Attachment 2
Attachment 2
Appendix D – Review of Previous Housing Element D-1 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Appendix D
Review of Previous Housing Element
D.1 Introduction
In order to effectively plan for the future, it is important to reflect back on the goals of the previous Housing Element and to identify those areas where progress was made and those areas where continued effort is needed. State Housing Element guidelines require communities to evaluate their previous Housing Element according to the following criteria:
 Effectiveness of the Element;
 Progress in Implementation; and
 Appropriateness in Goals, Objectives and Policies.

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

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

In order to achieve these goals, the 2015 Housing Element listed a series of policies and actions. The policies covered a range of actions, including (but not limited to): development of mixed-use projects with high-density housing; preserving existing second-floor housing over first-floor commercial uses; converting R-1 hotels to housing; enforcing the City’s prohibition on short-term rentals; reviewing requirements for conditional use permits on multi-family developments with Attachment 2
Appendix D – Review of Previous Housing Element D-2 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 densities greater than 22 du/ac; using City-owned surplus sites for affordable housing; and granting water priority to affordable housing projects. The 2015 policies and programs complied with State Housing Law guidelines in effect at the time.

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

Each of these areas is discussed in detail below.

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

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

Attachment 2
Appendix D – Review of Previous Housing Element D-3 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 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 Revised Draft January 2024 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 G3-2: 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 Revised Draft January 2024 Program
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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 Revised Draft January 2024 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 Revised Draft January 2024 Program
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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 Revised Draft January 2024 Program
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[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element] Achievements/Effectiveness
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Program 3-4.2.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, only seven (7) 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 Revised Draft January 2024 Program
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[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element] Achievements/Effectiveness
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Program 3-5.3a
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 Revised Draft January 2024 Program
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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 Revised Draft January 2024 Program
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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 Revised Draft January 2024 Program
Number
Programs/Actions
[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element] Achievements/Effectiveness
Continue/
Modify/
Delete in 6th
Cycle
Program 3-5.6.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 Revised Draft January 2024 Table D-2 provides a summary of housing units produced in the city from 2015-2023. During the 2015–2023 planning period, 18 new units were added to the City’s housing stock, achieving approximately 58 percent of the City’s RHNA. This indicates that residential growth was slower than anticipated, likely due to the lack of available water, the COVID pandemic, the cost of land, and the overall lack of support for new housing development in the community. All 18 units produced were affordable to households with above-moderate incomes.

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

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

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

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

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

Attachment 2
Appendix D – Review of Previous Housing Element D-14 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 RHNA, the City permitted 18 units (approximately 58 percent of the total), all of them for above moderate-income households; however, some of these units are ADUs which represent housing opportunities for lower-income housing.

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

Attachment 2
List of Contacted Organizations E

APPENDIX
Attachment 2
Attachment 2
Table of Contents
APPENDIX E LIST OF CONTACTED ORGANIZATIONS ....................................................E-1 E.1 Introduction ........................................................................................................................... E-1 E.2 List of Contacted Organizations ......................................................................................... E-1 E.3 City Contact List.................................................................................................................... E-4 E.4 Tribal Consultation................................................................................................................ E-5 E.5 Service Organizations ........................................................................................................... E-7 E.6 Additional Outreach .............................................................................................................. E-9 Attachment 2
Attachment 2
Appendix E- List of Contact Organizations E-1 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024 Appendix E
List of Contacted Organizations
E.1 Introduction
This Appendix provides the names of organizations, tribal units, and other stakeholders that were contacted during the preparation of Carmel-by-the-Sea’s 6th Cycle Housing Element. In addition to these contacts, the City created a dedicated website called: “HOME Carmel-by-the-Sea” which can be found at https://homecarmelbythesea.com. This website provides a portal to all of the Housing Element-related community engagement activities that were available to members of the public during the update process. This includes information on Housing Element basics, site surveys, stakeholder surveys, and materials from community workshops.

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

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

Carmel, CA 93922
T: (831) 624-1248
Carmel Area WasteWater District (cawd.org)
Attachment 2
Appendix E – List of Contacted Organizations E-2 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Carmel Chamber of Commerce
Ocean Ave. between Junipero and Mission
Inside Carmel Plaza 3rd Floor
Carmel, CA 93921
(831) 624-3877
Carmel Chamber of Commerce
Carmel Foundation
SE Corner of 8th Ave. and Lincoln St.

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

Attachment 2
Appendix E – List of Contacted Organizations E-3 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Interested Parties
 Eric Miller Architects, Eric Miller;
 Silverie Properties, Dan Silverie III;
 Silcon Constructors, Dan Silverie IV;
 Winter & Co, Nore Winter;
 Carmel Plaza, Kristin Torrice;
 Carmel Residents Association, Nancy Twomey;
 Carmel Preservation Association;
 Carmel Heritage Society;
 Monterey Bay AIA, Executive Director;
 Builders Exchange, Sandy Steele;
 Christ Tescher Construction, Chris Tescher;
 Carmel Boutique Inns/Vagabond House Inn, Amanda Levett;  Jody LeTout;
 Walker and Reed, Jim Heisinger;
 American Legion, Gerry Paratore;
 Cal-Clark Farms, Stu Clark;
 Bennett Sculpture Carmel, Ashley Stoddard;
 Sue McCloud;
 Su Vecino, Shari Polovneff;
 Vesuvio, Little Napoli, Carmel Bakery, Rich Pepe;
 Luca/L’auberge/Carmel Beach Hotel, David Fink;
 Hakim, Jack Hakim;
 Mandurrago & Associates, John Mandurrago;
 Forge in the Forest, Greg Profeta;
 Classic Hotels, Mary Crowe;
 Carmel Lodge, Mark Stilwell;
 Dyar Architects, Erik Dyar;
 Thomas Bateman Hood Architects, Thomas Hood;
Attachment 2
Appendix E – List of Contacted Organizations E-4 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024  Justin Pauly Architects, Justin Pauly;
 Cushman Wakefield Properties, Michael Schoeder;
 Fred Kern;
 Lewis Builders, Scott Julian;
 Beesley Realty, Ben Beesley;
 Visit Carmel, Amy Herzog;
 Jeanne Cox Levett;
 Gerard Rose;
 Franklin Williams; and
 Catherine and John Compango.

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

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

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

Attachment 2
Appendix E – List of Contacted Organizations E-5 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 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 2
Appendix E – List of Contacted Organizations E-6 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Rudolph Rosales (Ulax Huchumas)
Indigenous Peoples Consultant
Esselen Nation
P.O. Box 647
Monterey, CA 93942
Susan Morley, Cultural Resources
Esselen Tribe of Monterey County
3059 Bostick Avenue
Marina, CA 93933
Tom Little Bear Nason, Chairman
Esselen Tribe of Monterey County
P. O. Box 95
Carmel Valley, CA, 93924
Ann Marie Sayers, Chairperson
Indian Canyon Mutsun Band of Costanoan
P.O. Box 28
Hollister, CA, 95024
Kanyon Sayers-Roods, MLD Contact
Indian Canyon Mutsun Band of Costanoan
1615 Pearson Court
San Jose, CA, 95122
Isaac Bojorquez, Chairman
Kakoon Ta Ruk Band of Ohlone-Costanoan Indians of the Big Sur Rancheria PO Box 8355
Woodland, CA, 95776
Christanne Arias, Vice Chairperson
Ohlone/Costanoan-Esselen Nation
519 Viejo Gabriel
Soledad, CA, 93960
Louise Miranda-Ramirez, Chairperson
Ohlone/Costanoan-Esselen Nation
P.O. Box 1301
Monterey, CA, 93942
Dee Dee Ybarra, Chairperson
Rumsen Am:a Tur:ataj Ohlone
14671 Farmington Street
Hesperia, CA, 92345
Attachment 2
Appendix E – List of Contacted Organizations E-7 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Kenneth Woodrow, Chairperson
Wuksache Indian Tribe/Eshom Valley Band
1179 Rock Haven Ct.

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

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

Attachment 2
Appendix E – List of Contacted Organizations E-8 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 ECHO Fair Housing Services
580 Pacific Street
Monterey, CA 93940
(831) 566-0824
https://www.echofairhousing.org/fair-housing-services.html Central Coast Center for Independent Living
318 Cayuga Street
Suite 208
Salinas, CA 93901
(831) 757-2968
https://www.cccil.org/
Center for Community Advocacy
22 West Gabilan Street
Salinas, CA 93901
(831) 753-2324
https://cca-viva.org/
The Salvation Army Good Samaritan Center
1491 Contra Costa
Seaside, CA 93955
(831) 899-4911
https://montereypeninsula.salvationarmy.org/
Hope Services
1144 Fremont Blvd.,
Suite D
Seaside, CA 93955
(831) 393-1575
https://www.hopeservices.org/
Coalition of Homeless Service Providers
1942 Fremont Boulevard
Seaside, CA 93955
(831) 883-3080
https://chsp.org/
Monterey County Stand Down for Homeless Veterans
https://www.montereystanddown.org/
Diocese of Monterey
425 Church Street
Monterey, CA 93940
(831) 373-4345
https://dioceseofmonterey.org/
Attachment 2
Appendix E – List of Contacted Organizations E-9 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 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 2
Appendix E – List of Contacted Organizations E-10 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024  The City has implemented varied methods of involvement for community members, including:
the HOME Carmel-by-the-Sea website, the Carmel-by-the-Sea City website/Long-Range Planning page, “Housing” email Listserv, “City Council” email listserv, announcements published in the City Administrator’s “Friday Letter” and vlog, public notices in The Carmel Pine Cone, a staffed table at the local Farmer’s Market; a Community Housing Stakeholder Survey made available in both English and Spanish, and seven (5) community meetings specific to the Housing Element topic and three (3) regular City Council meetings with an agendized Housing Element topic completed prior to submission of the Draft Housing Element to HCD.

Attachment 2
ECONorthwest Feasibility Study

APPENDIX
F
Attachment 2
Attachment 2
ECONorthwest Study Background
On May 20, 2022, the City of Carmel-by-the-Sea entered into a professional services agreement with ECONorthwest to prepare a housing feasibility study. The study informs the analysis required as part of the 6th Cycle Housing Element update. The feasibility study evaluated current market conditions, the City’s development standards related to housing, and potential opportunities for housing development. The study was not meant to be exhaustive. Instead, it starts the conversation about development opportunities and constraints within the City of Carmel-by-the-Sea.

Attachment 2
Attachment 2
ECONorthwest | Portland | Seattle | Los Angeles | Eugene | Bend | Boise | econw.com 1 DATE: January 27, 2023
TO: Brandon Swanson, City of Carmel-by-the-Sea
FROM: Chris Blakney, ECONorthwest
SUBJECT: Housing Element Analysis for the City of Carmel-by-the-Sea Introduction
In the State of California, local jurisdictions maintain a General Plan that serves as a blueprint for its long-term vision. Among the required “elements” of a general plan is the Housing Element. The Housing Element is the only element that state law requires be updated on a periodic cycle. The California Department of Housing and Community Development (HCD) is responsible for overseeing Housing Element updates. Every eight years, HCD allocates a share of projected statewide housing need to regions across the state. This is called the Regional Housing Need Allocation (RHNA). The state is currently in the sixth of these cycles. The sixth cycle will cover the June 30, 2023 to December 15, 2031 planning period for the City of Carmelby-the-Sea [Carmel].

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

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

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

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

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

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

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

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

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

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

VISTA AVE

ALTA AVE
1ST AVE
2ND AVE
3RD AVE
4TH AVE
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10TH AVE
11TH AVE
12TH AVE
13TH AVE
1ST AVE
2ND AVE
3RD AVE
4TH AVE
5TH AVE
6TH AVE

LOBOS ST

CARPENTER ST

GUADALUPE ST

SANTA RITA ST

SANTA FE ST

TORRES ST

JUNIPERO AVE

MISSION ST

SAN CARLOS ST

DOLORES ST

LINCOLN ST

MONTE VERDE ST

PINE RIDGE WAY

VISCAINO

CRESPI AVE

FLANDERS WAY

NORTH CARMELO AVE

NORTH CAMINO REAL

LOPEZ AVE

PALOU AVE
2ND AVE

VALLEY WAY

MONTEREY ST

LORCA LANE

PERRY NEWBERRY WAY STERLING WAY

ESCOLLE WAY

FOREST ROAD OAKNOLL WAY
7TH AVE

OCEAN AVE

MOUNTAIN VIEW AVENUE

TORRES ST

JUNIPERO AVE

MISSON ST

SAN CARLOS ST

DOLORES ST

LINCOLN ST

MONTE VERDE ST

TRAIL VIEW
ACACIA

CASANOVA ST

CAMINO REAL

CARMELO ST

SAN ANTONIO AVE

FRASER WAY

SANTALUC AI AVE

FRANCISCAN WAY

LASUEN DR

LADERA DRIVE

RIDGEWOOD ROAD

RIO ROAD

OCEAN AVE

DEL MAR AVE
4TH AVE

CARMEL WAY
11TH AVE

SCENIC ROAD

NORTH CASANOVA ST

NORTH SAN ANTONIO AVE

CAMI N O DEL MONTE AVE
WAY

SUNSET CENTER
FOREST

THEATER

FOREST HILL PARK

FOREST HILL PARK
I
II
6 7
9 1
8 1
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J
4 2
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8 Z
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T
L
P
Y
E
X
S V
H
A
N
C
U
B D
K
R
G
O O
M
W
11 18
15 54
22 40
31 53 32
74 94
35 70
14 16
17 43
21 63 64
65 80
86 98 58
57 72
51 52
78 89
88 83
62 60
59 47
25 19
92 76
33 30
84 68
38 24 39
45 23
44 42
20 49 27
95 10
75 34 71
82 37
46 41
91 87
81 48
13 50 77
73 96
99 79
67 66 61
26 36
28 90
93 55
56 JJ
29 LL
FF
C2
1A
3B
A1 A2 A4
9A
A5
2A
A3
1B
A6
2B
3A
C1
EE
85 5.5

7.5 6.5

4.5 8.5
KK
DD
BB
CC
NN
HH
AA
GG
111
114
118
112
116
115
119
113
117
MM
105
147
137
104
103
101
120
132
135
138
102
100
141
133
109
149
128
143
107
108
129
136
145
130
142
148
131
134 146
144
8 1
5 4
6 7 8
9 11
1 2
10 4
4 3
3 7
2 5
5 3
2 6 17 7
10 12
2 3
1 1
9 22
8 3
9 8 2
2 3
4 5 7
4 5 7 8
9 25
13 4
5 1
15/16
6 2
4 6
5 6
8 9
1 1
2 7
7 3
1 1 4 5 6 9 3 2
3 4
8 8
5 1
8 1
1 9 1
1 2
6 2
8 8
11 1
5 9
3 1
1 4 10
1 7
3 5 1
4 2
2 5
8 6
9 1
2 7
7 1
9 2
1 4
1 5
1 3
2 3
9 6
7 6
6 10
2 4
4 3 3
2 1
5 1
4 3 9
4 6
8 3
5 4 8
1 8
5 3
7 2
1 4
2 23
11 6
4 9
4 1
3 7
1 9
9 7
5 3
10 2
8 5
1 5
2 2
6 9
7 8
8 5
1 9
4 24
6 8
5 14
7 1
2 7
5 5
3 7
1 3
2 1
6 9
1 3
3 2
7 3
2 3
7 2
2 4
26 4
4 8
5 5
11 6 13
19 18
3 2
27 6
2 1 2 3 4 6 7
11 9
5 12
8 4 6 8
8 5
1 6
7 1
3 4
7 4
2 2
8 9
6 3
9 3 5 7
7 4
3 9
2 1
2 17
14 2
7 8
5 2
6 2
1 5
9 1
3 2
1 1
2 4
5 2
6 6
7 2
9 1
7 2
6 1
9 7
7 1
2 20
2 10
1 1
3 8
1 2
2 1
8 2
10 2 2 1
1 2
9 4
2 12
3 6
2 1
1 4
4 4
1 1
1 3
1 9
1 5
2 10
9 1
3 4
1 2
3 1
1 2
9 3
21 11
8 1
3 1
9 1
2 2
3 2
4 2
6 2
2 2
3 9
1 5
8 2
9 5
6 7
9 9
6 8
6 8
2 1
1 1
2 2
6 2
5 9
1 4
9 2
2 1
5 6
4 6
1 1
9 1
6 9
8 14
2 2
1 1
1 9
2 9
4 1
6 2
7 5
8 3
5 2
9 1
9 4
2 1
4 8
9 2
4 5
2 3
1 1
1 3
7 1
4 4
10 2
2 5
9 2
7 2
4 4
6 2
5 2
5 7
1 2
8 4
6 5
3 1
1 3
1 3
3 4
1 2
3 9
7 2
1 2
7 8
2 7
2 1
3 6
9 7
5 1
7 2
6 8
3 7
5 5
5 2
5 7
9 6
1 7
7 1
1 9
5 2
8 6
9 1
2 7
2 2
6 9
7 7
6 7
1 2
7 1
1 2
16 7
1 7
2 2
4 1
1 5
8 2
4 2
3 7
5 5
9 1
9 2
7 2
6 2
6 3
5 8
1 1
8 9
8 7
8 9
7 5
4 4
5 8
4 1
8 7
5 9
2 2
5 3
1 1
9 1
7 2
6 8
8 4
7 9
5 7
8 7
4 4
1 9
2 3
8 9
6 8
2 7
7 2
4 1
5 3
9 3
1 8
8 5
6 9
9 5
3 6
8 6
8 9
3 3
7 5
2 6
5 4
1 3
8 3
1 2
3 3
6 2
3 4
4 6
7 7
9 2
9 8
2 4
7 6
4 1
6 3
7 9
6 3
5 3
7 9
6 3
5 6
4 7
3 1
3 8
5 9
3 8
1 2
6 6
7 3 5
7 6
8 3
9 7
9 9
3 3
8 4
1 4
2 6
7 1
1 5
3 3
1 9
6 2
9 9
7 8
4 4
1 1
3 2
1 4
1 7
7 7
8 5
8 1
9 5
7 5
2 9
5 9
9 3
6 2
1 2
7 4
3 8
3 5
9 7
8 6
3 8
6 3
4 4
1 9
5 4
5 1
3 3
9 9
9 5
7 4
29 7
8 4
7 9
5 5
5 6
9 5
7 4
2 8
7 9
3 9
8 4
5 5
6 30
9 6
7 7
6 9
5 5
9 3
4 5
16 4
5 9
4 9
9 11
8 3
1 5
1 7
2 7
9 4
6 3
8 5
9 6
5 5
2 8
9 3
6 3
1 7
8 2
5 8
6 4
7 3
2 4
9 6
1 4
3 5
6 7
1 3
4 5
3 7
8 3
7 1
4 4
7 4
1 6
6 9
3 3
7 6
1 9
3 3
9 1
4 5
8 4
6 3
9 9
6 4
8 5
1 5
7 7
7 1
8 9
6 1
3 6 8
9 9
7 8
12 1
2 1
4 6
3 5
3 6
5 8
3 8
5 7
3 8
6 2
7 8
9 5
7 4
7 5
2 6
8 4
8 3
6 6
9 3
8 9
7 9
3 5
4 8
9 9
2 5
4 6
5 6
8 1
6 6
5 1
6 3
4 3
4 3
3 5
5 8
17 2
7 11
5 7
3 7
9 6
8 4
8 8
1 1
6 2
7 9
3 30
7 6
7 1
1 6
9 4
4 5
7 7
1 7
2 4
5 8
1 9
7 4
7 3
5 7
8 9
4 2
6 3
1 6
6 8
2 6
9 5
3 13
4 2
5 6
5 4
2 9
6 5
6 7
4 6
3 1
8 6
8 2
5 5
8 7
3 7
6 4
9 6
6 9
3 4
5 8
5 3
1 9
8 6
6 6
3 3
7 5
9 6
3 5
9 4
6 1
9 8
7 9
9 7
2 3
8 3
8 8
7 8
5 9
2 5
3 5
7 8
4 2
2 7
1 3
3 5
3 8
4 5
6 9
5 2
8 6
12 2
5 8
8 5
3 5
2 6
3 4
5 7 4 3
4 1
7 3
7 6
4 8
8 8
3 3
8 8
4 1
9 4
5 3
1 4
5 2
9 8
5 7
5 8
7 2
4 9
9 9
6 7
9 7
19 3
9 4
7 3
6 7
4 7
9 9
6 8
2 8
6 15
9 2
9 6
2 5
4 4
7 8
3 4
6 8
1 4
5 8
4 5
8 5
3 9
9 8
8 4
6 7
3 7 3
7 1
4 8
6 4
3 6
8 7
3 20
1 6
7 9
2 7
4 6
5 4
9 2
4 2
3 2
4 1
7 2
3 9
3 3
4 4
5 7
4 6
2 8
5 8
6 4
7 9
4 8
6 5
2 3
1 8
8 3
6 5
3 3
8 9
8 2
5 9
4 6
7 4
5 3
7 7
8 9
6 3
4 3
4 2
4 7
6 5
6 9
2 6
9 6
9 7
2 9
7 6
9 8
6 3
2 5
8 6
6 8
5 5
5 5
4 2
6 6
5 8
3 3
5 7
9 3
5 7
5 4
3 5
3 6
8 8
8 6
4 5
8 6
4 9
8 3
2 8
3 6
5 8
6 6
2 7
5 7
3 4
3 5
8 4
6 8
4 8
7 3
5 8
8 4
2 6
5 7
8 6
6 4
4 9
9 8
4 4
4 5
6 8
6 4
5 6
4 4
1 3
4 3
7 6
7 8
7 6
3 8
5 7
13 5
6 8
4 8
3 7
4 2
4 1 9
19 2
5 6
6 8
4 3
5 4
4 8
6 5
8 4
4 9
5 9
6 8
2 9
4 2
7 8
6 6
18 6
8 7
7 2
5 8
7 4
8 5
6 7
6 1
3 36
8 4
4 14
10 6
6 8
9 8
13 20
10 28
32 8
4 15 34
4 6
1 1
2 9
14 31
11 2
13 1
20 7
11 22
11 14
1 1
9 8
18 24
11 15
12 10
1 34
9 12
21 13
18 17
10 13
5 1
24 9
1 12
10 11
10 16
13 14
11 33
12 34
19 13
1 31
12 11
15 1
1 20
1 11
19 15
2 10
6 26
16 11
1 10
6 6
4 4
15 31
1 1
35 14
13 17
8 31
4 4
15 11
14 1
18 18
14 5 9
30 1 1
11 37
1 7
12 1
4 7
3 10
3 13
8 8
28 15
13 3
9 3
21 12
17 10
9 21
2 7
2 4 6
9 28
8 36
3 9 1 7
7 3
40 3
6 10
11 1
5 9
12 19
7 8
9 35
9 4
6 10
3 29
14 13 10
9 14
43 1
5 5
22 6
3 5 7
2 5
8 4
7 1
11 19
11 1 4
7 5
19 8
1 3
6 13
5 4 2
21 11
11 5
18 19
14 20
20 9
11 14
2 7
10 7
1 14
37 14
11 11
13 20
19 33
20 11
14 19
24 12
22 11
21 12
11 11 12
12 19
20 11
10 14
11 13
19 19
33 11
12 12
21 12
11 11
20 24
19 17
11 31
16 18
18 10
32 20
38 12
16 16
19 11
11 29
10 23
19 22
11 13
23 11
17 14
14 16
30 15
12 20
11 14
21 11
10 13
10 11
19 10
14 12
18 20
20 16
22 11
11 11
2 13
15 12
11 20
21 11
14 14
11 19
29 10
11 11
19 17
20 14
34 11
13 17
11 14
13 11
21 20
19 11
11 11
10 13
20 28
10 23
12 20
10 16
35 11
11 31
12 31
17 23
11 16
11 22
11 11 11
11 11
18 11
23 17
10 10
10 22
17 12
17 19
11 11
19 12
22 18
15 25
11 11
18 11
11 19
12 22
32 10
11 13
11 14
13 31
41 19
20 24
17 35
13 11
15 11
20 10
11 11 11
11 11
17 19
27 14
20 10
11 18
11 12
13 11
10 19
11 16
20 16
36 17
19 14
11 20
22 14
19 10
11 32
20 17
20 11
19 15
13 11
23 11 11
14 10
12 13
11 11
33 21
10 18
17 13
15 22
13 11
11 19
11 27
17 13
26 27
19 20
13 27
20 20
11 12
13 13
20 19
21 19
29 14
13 13
11 10
19 16
13 14
11 15
17 19
10 17
20 12
15 13 13
11 23
15 15
20 11
19 15
17 12
19 11
10 21
13 18
25 19
15 20
16 14
10 11
14 19
13 17
17 19
15 19
11 14
10 11
10 11
13 15
22 21
14 19
15 14
18 11
16 11
13 15
15 11
10 26
19 14
12 13
27 20 13
11 24
17 24
24 14
14 11
14 18
20 11
10 28
18 13
20 11
19 20
18 14
10 17
15 28
18 15
18 17
23 19
22 11 20
20 13
20 16
11 18
11 13
20 19
14 17
18 17
26 13
13 11
19 23
19 12
13 11
20 17
17 10
12 20
15 16 16
10 18
20 20
19 18
16 14
18 13
37 19
11 12
17 19
16 22
11 11
20 13
14 16
10 19
14 29
18 13
25 20
14 18
19 14
11 18
13 17
16 35
19 10
19 14
15 32
20 15
19 16
18 19
23 14
10 10
14 25
10 11
7 10
13 12
12 13
13 10
20 17
13 14
29 20
20 19
18 28
13 16
17 20
10 10 12
18 10
17 10
15 21
36 12
18 19
19 23
15 24
12 10
10 21
17 21
17 13
18 18
17 17
11 28
10 19
14 10
16 12
11 14
21 28
11 20
18 12
14 24
20 14
40 17
21 13
21 26
32 22
19 13
11 33
13 14
18 20
12 14
13 10
11 28
19 14 8
20 10
23 18
18 16
11 19
10 11
25 10
23 15
14 18
14 15
15 24
27 17
16 20
19 12
16 20
10 14
18 16
15 18
11 12
13 13
13 14
13 13
12 14
17 16
13 17
36 13
15 20
14 17
11 18
13 14
13 19
14 14
25 22
11 22
20 13
20 33
14 13
13 12
15 13
14 15
33 12
19 10
27 19
25 17
14 16
25 19
14 10
22 16
10 10
14 16
12 10
16 17
13 13
12 11
13 16
20 17
16 11
12 10
17 14
20 31
11 27
26 20
27 18
12 13
10 28
17 23
20 17
15 26
10 17
20 10
13 14
19 22 18
10 16
28 12 30
28 34
12 15
34 16
12 18
20 35
16 27
22 19
13 10
17 13
26 16
10 14
12 17
12 14
11 13
10 17
27 33
16 13
11 19
10 17
15 15
20 18
21 14
15 14
19 13
13 13
20 20
15 20
17 17
13 17
15 14
14 19
16 13
25 18
25 19
22 19
23 13
10 15
18 21
18 12
13 17
10 13
13 12
17 19
14 17
19 10
10 14
14 10
11 16
14 11
12 30
15 13
14 14
18 12
13 25
18 15
14 22
13 27
19 10
12 15
13 14
35 18
24 13 11
14 13
19 11
13 17
17 17
20 16
19 13
14 14
19 20
15 12
16 15
15 28
12 28
38 20
26 14
20 37
16 20 14
18 18
28 19
13 18
12 18
14 30
25 13
13 14
15 14
24 15
21 14
10 10 12
20 11
15 18
21 12
16 17
18 17
10 20
19 15
20 14
20 25
10 10
10 10
15 18
12 15
18 10
20 16
18 11
12 19
21 16
14 14
17 17
16 19
14 13
16 12
17 16
29 10
17 15
17 17
17 12
19 10
15 15
17 25
24 39
13 18
20 13
22 14
29 19
15 15
21 16
18 20
15 20
13 13
15 10
29 13
18 16
16 17
14 16
23 13
34 17
17 15
19 10
19 16
30 15
18 15
16 12
10 10
20 18
13 10
16 19
26 17
18 17
20 15
16 34
23 16
10 12
20 10
11 12
12 16
15 12
11 15
18 19
16 16
16 18
19 19 20 14
16 23
30 17
16 13
15 32
14 13
24 14
17 21
13 10
10 10
20 15
14 18
20 12
15 15
16 15
12 17
14 22
20 10
20 10
20 15
15 16
13 18
12 12
12 22
17 14
12 10
13 14
16 15
16 18
10 24
16 18
23 23
20 16
15 23
16 17
15 14
19 16
12 23
14 33
13 16
11 12
18 12
12 14
12 14
17 18
14 16
18 18
17 16
24 14
17 19
12 14
13 17
13 12
21 30
15 13
15 10
10 10
13 12
10 12
13 29
22 18
17 17
16 19 15
16 16
15 15
10 15
24 14
13 17
12 19
18 22
14 15
15 19
17 12
16 17
18 15
14 20
15 17
17 18
15 28
17 15
17 12
16 13
14 21
13 17
32 20
13 14
18 10
16 18
14 16
12 18
22 10
25 10
31 10
16 15
15 12
12 23
30 15 18
19 10
10 18
15 20
13 31
20 12
10 12
18 24
12 10
18 17
18 16
14 18
15 18
14 18
19 26
12 13
16 18
14 18
17 15
16 14
16 12
20 14
13 23
18 15
12 19
10 12
15 12
10 18
18 18
13 15
19 17
30 14
13 16
27 25
29 12
16 13
10 17
14 24
12 19
20 15
14 25
24 23
15 15
10 12
18 15
12 16
14 18
18 20
27 19
17 16
34 17
19 14
15 32
20 23
14 16
25 14
10 18 12
19 13
14 20 12
20 12
18 16
17 14
29 15
18 14
12 20
14 18
19 26
18 23
15 12
18 15
16 15
20 25
17 16
10 10
10 12
20 12
10 19
15 16
19 19
19 19
15 23
15 18
15 17
25 26
13 18
16 12
16 17
10 10 16
27 12
20 16
17 15
12 10
17 20
16 16
25 20
12 12
13 15
20 14
15 17
17 10
15 16
10 12
20 19
16 16
18 18
12 17
13 12
21 12
15 31
18 25
39 18
25 10
14 35
16 24
12 17
10 10
14 16
12 19
18 17
22 18
10 16
18 17
16 12
18 19
26 16
5 17
12 24
25 32
15 23
13 26
20 18
20 12
6 20
18 20
16 17
13 19
24 20
19 15
33 14 15
26 20
14 18
14 19
16 15
29 15
38 16
17 12
17 13
10 17
16 19
30 24
15 23
20 18
10 19
12 16
13 18
31 13
14 20
20 12
16 13
16 12
17 15
16 16
15 12
10 11
12 17
10 18
12 15
12 12
32 16
16 17
14 10
12 27
15 17
26 10
17 12
20 19
13 10
16 17
16 21
15 15
18 16 16
19 26
29 17
20 15
29 12
23 12
34 14
19 11
19 12
18 14
31 19
21 13
15 2
18 12
12 16
10 18
18 17
19 33
16 19
20 18
15 15
25 30
14 20
20 12
11 16
21 22
16 16
16 18
18 22
10 26
19 11
22 18
26 20
19 19
27 12
20 12
10 20
25 20
10 10
21 32
10 16
11 16
21 20
25 18
17 12
11 17
13 18
20 10
12 10
12 19
20 13
10 12
14 12
10 10
10 19
10 2
42 10
10 10
39 10
21 10
2 15
18 14
14 13 5 7
3 5
2 2
7 1
12 5
4 1
2 7
3 1
2 7
3 3
4 8
8 6
6 4
4 5
17 3
4 8
6 2
7 8
6 9
16 7
5 5
2 2
2 8
9 5
9 5
2 4
2 20
5 6
8 2
4 4
6 3
3 3
9 4
7 5
2 5
4 5
4 3
7 4
4 8
6 3
8 7
6 2
7 7
9 9
9 8
8 8
8 5
3 3
7 5
6 3
4 9
6 6
2 7
8 3
18 12 17
8 10
26 25
6 19 26
10 15
17 11
15 14 11
3 17
11 10
21 19
26 11
18 17
26 24
25 14
15 15 13 26
19 10 18 16
12 11
24 26
22 11
24 22
11 17
21 21 11 24 25 11
26 11 22
22 10
19 19 13
21 11
21 11
23 23
23 18 22
17 21 23
22 24 13 24 25
20 16
24 23
16 22 26
22 18
13 21 16
14 11
20 23 17
12 13
22 20
25 25 15
10 24
24 16
16 23
13 13 15
21 24
22 25
21 13
26 15 26
22 10
19 11
26 12 10
25 26
17 15
10 20
22 12
24 14
24 15
21 19
18 26
10 25
14 20 24
26 17 19/21 13
22 23
21 17
12 4
11 17
19 5
16 1 inch equals 300 feet
Revised: August 21, 2008
Prepared June 25, 2008 for the City of Carmel by TriAxial Data Systems • Watsonville, CA 95076 • Phone (831) 763-3697 This is a graphic representation only of data provided by the City of Carmel and the County of Monterey. The author assumes no responsibility nor liability for errors or omissions. 0 300 600 900 1,200Feet
The City of Carmel-by-the-Sea makes no representations or warranties regarding the accuracy or completeness of this map. This map is intended to reflect the boundaries established by the Carmel Municipal Code, the California Coastal Commission, and California law. These sources take precedence over this map.

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

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

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

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

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

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

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

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

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

Attachment 2
ECONorthwest 6
Low density retail in commercial district Example of interior courtyard Ulrika Plaza at 5th and Dolores Example of City-owned ROW site Sunset Center North Lot Example of underutilized parking Attachment 2
ECONorthwest 7
Market Overview
The ability of the market to deliver housing production in the future is largely a function of existing market conditions. An observation of socioeconomic conditions also informs housing need in the community.

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

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

Figure 5: Share of Housing Units that are Second Homes
Source: U.S. Census American Community Survey (2016-2020 estimates); Table B2500410 Nation Carmel
Total housing units 138,432,751 3,731
For seasonal, recreational, or occasional use 5,303,302 1,479 Share of housing units that are second homes 3.8% 39.6% 7 USPS Change-of-Address Migration Data
https://www.arcgis.com/apps/dashboards/951428e32723456c879d0966af4baa8a 8 Property Radar. (See https://www.propertyradar.com/)
9 Short-term rentals are not permissible as per CMC 17.08.060 and CMC 17.14.040. (See https://www.codepublishing.com/CA/CarmelbytheSea/html/Carmel17/Carmel1708.html) 10 U.S. Census American Community Survey (2016-2020 estimates); Table B25004. (See https://data.census.gov/) 0 20
40 60
80 100
120
140
2014 2015 2016 2017 2018 2019 2020 2021 2022
Home Sales Volume
75% to 100%
Down
50% to 74.9%
Down
25% to 49.9%
Down
< 25% Down
Attachment 2
ECONorthwest 9
Renter Market
Reliable real-time market data on the local rental market is challenging to obtain because the majority of the rental market is organized through individual transactions, small property management firms, and in some cases informal agreements. Figure 6 below demonstrates that tenure split (owner vs. renter-occupied) in Carmel is roughly equal. However, a full 78 percent of the rental market is being met by single-family housing units (rather than apartment buildings), typically rented out by individuals as opposed to large property management firms.

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

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

Attachment 2
ECONorthwest 10
Figure 7: Annual Contract Rent
Source: U.S. Census American Community Survey (5-year estimates from 2015-2020)13 Cost Burden
State and federal standards specify that households spending more than 30% of gross annual income on housing experience a housing cost burden. Housing cost burdens occur when housing costs increase faster than household income. When a household spends more than 30% of its income on housing costs, it has less disposable income for other necessities, including health care, food, education, and clothing. In the event of unexpected circumstances such as the loss of employment or serious health problems, lower-income households with a burdensome housing cost are more likely to become homeless or be forced to double-up with other households. Homeowners with a housing cost burden have the option of selling their homes and becoming renters. Renters, on the other hand, are vulnerable and subject to constant changes in the housing market.

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

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

10.0 to 14.9 percent 49 5.3%

15.0 to 19.9 percent 182 19.9%

20.0 to 24.9 percent 63 6.9%

25.0 to 29.9 percent 39 4.3%

30.0 to 34.9 percent 61 6.7%

35.0 to 39.9 percent 70 7.6%

40.0 to 49.9 percent 70 7.6%

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

In Carmel, roughly half of all workers live within 10 miles of the city. Primary areas where workers live include Seaside, Monterey, Salinas, and Pacific Grove. A full 26 percent of workers commute from greater than 25 miles away. Only 2.6 percent of workers live and work in Carmel.15
15 U.S. Census Bureau Longitudinal Employer-Household Dynamics Data (See https://lehd.ces.census.gov/) Attachment 2
ECONorthwest 12
Figure 9: Commute Patterns, Where Employees in Carmel Live (2019) Source: U.S. Census Bureau Longitudinal Employer-Household Dynamics Data. (See https://data.census.gov/) ECONorthwest 13
Code Review
As part of our scope, we conducted a code review to identify potential issues and barriers that could limit housing production in the Multifamily Residential (R-4) district and the commercial zones; Residential and Limited Commercial (RC) Central Commercial (CC), and Service Commercial (SC).

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

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

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

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

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

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

Attachment 2
ECONorthwest 14
since their ability to achieve the base density is already constrained. If the density bonus was offered in another story, rather than du/ac, it could help reduce barriers and allow more housing production on smaller sites.

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

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

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

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

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

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

Attachment 2
ECONorthwest 15
Floor Area Ratio
CMC 17.14.140.A-B establish F.A.R limits for the commercial zones. One-story buildings in the CC and SC zones are allowed to achieve an F.A.R equal to 95 percent of the site area. However, this contradicts the allowed building coverage discussed above (80 percent), excluding the exceptions. Two-story buildings can obtain an F.A.R equal to 135 percent of the site area, which further limits the allowed square footage outside of the building coverage maximums, as either the first or second story would need to be smaller than the other to meet this F.A.R. For example:
§ A 5,000 square foot lot is allowed a maximum of 4,000 square feet in building coverage, which could translate to about an 8,000 square foot building if the two stories were of equal size. However, two-story buildings are limited to 135 percent of the total site area. § 135 percent of the total site area is 6,750 square feet. The F.A.R requirements reduces the potential square footage by approximately 1,250. This lost square footage could translate into roughly two additional apartment units.
§ However, if using a density bonus the limit would be 150% of the total site area, reducing the amount of lost square footage for project utilizing a density bonus.

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

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

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

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

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

Attachment 2
ECONorthwest 16
The City also requires conditional use permits for certain residential developments in all zones (i.e. developments over 22 du/ac). The City’s standard practice is to process approvals concurrently where possible; but removing this additional process could reduce extra steps and cost in the development process for both City staff and applicants, while eliminating the additional cost of preparing a conditional use application.

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

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

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

Adjacent Ownerships
Sites that can obtain scale through size and density generally have a higher likelihood of redevelopment. Larger sites offer greater flexibility and fewer barriers. Often, two or more sites adjacent to each other that are both underutilized can be combined to make more feasible development site. However, assemblage of multiple ownerships can be a barrier. In this step we used ownership data in Assessor’s records to identify properties that are adjacent to each other but have the same owner (see Figure 15). If they meet other redevelopment criteria, these sites are more likely to redevelop.
19 Secretary of the Interior’s Standards for Rehabilitation. (See https://www.nps.gov/subjects/taxincentives/secretarysstandards-rehabilitation.htm) Attachment 2
ECONorthwest 20
Figure 12: Historic Resource Properties
Source: City of Carmel-by-the-Sea.

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

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

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

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

Candidate Site List
We combined the analysis above with an in-person site visit, visual assessment using aerial and streetscape photography, and conversations with local representative to develop an inventory of candidate sites that could have redevelopment potential. In addition to properties within the study area, we also evaluated sites adjacent to the commercial core that could be candidates for future rezoning to allow more housing density. Each site is briefly discussed below Figure 18.20 20 Sites are not listed in any particular order of prioritization Attachment 2
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 2
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 2
ECONorthwest 30
Site 4: Carmel Realty Office Site
This site is a 0.18-acre corner-lot parcel that is
currently owned and used for office space by
Carmel Realty. It has low lot coverage and scores
well with a land-to-improvement ratio. It is a
single-story structure that is surrounded on all
sides by structures that are at least two stories
tall. The site was previously used in the RHNA5
inventory.

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

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

Attachment 2
ECONorthwest 31
Site 7: Three Garages Site
This site would be an assemblage of three equal
sized parcels totaling 0.33 acres. Two of the
parcels are under the same ownership, and one
was previously used in the RHNA5 inventory.

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

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

Redevelopment of the site would require a zone change.

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

Some of these sites may have development
potential. However, our site visit identified that
barriers were common, including mature trees,
topography, and use for primary access for
existing homes.
24 California Assembly Bill. 2020. “Religious institution affiliated housing development projects: parking requirements.” 2019-2020 Regular Session. AB 1851. (See https://openstates.org/ca/bills/20192020/AB1851/) Attachment 2
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 2
ECONorthwest 33
Site 13: Esperanza 7th and Dolores Site
This site is three adjacent parcels owned by
Esperanza Carmel. The site totals roughly 0.30
acres. Esperanza has a development proposal on
the site for eight market rate apartment units.

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

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

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

Attachment 2
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 2
ECONorthwest 35
Infill Capacity
There are several sites, including City-owned
properties, where infill could be possible.

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

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

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

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

Attachment 2
ECONorthwest 36
Recommended Actions and Potential Incentives
Based on the preceding analysis, we offer the following recommendations for further consideration as the City progresses to an update of its Housing Element.

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

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

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

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

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

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

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

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

Attachment 2
Energy Conservation and Reduction of
Greenhouse Gas Emissions G

APPENDIX
Attachment 2
Attachment 2
Table of Contents

APPENDIX G ENERGY CONSERVATION AND REDUCTION OF GREENHOUSE GAS EMISSIONS................................................................................................................ G-1 G.1 Introduction ........................................................................................................................... G-1 G.2 Opportunities for Energy Conservation and Reducing Greenhouse Gas Emissions................................................................................................................................ G-1 Tables
Table G-1 PG&E Programs and Incentives for Residential Properties .............................. G-3 Attachment 2
Attachment 2
Appendix G – Energy Conservation G-1 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Appendix G
Energy Conservation and Reduction of
Greenhouse Gas Emissions
G.1 Introduction
This chapter summarizes opportunities for energy conservation and the reduction of greenhouse gas emissions in the construction of housing in the City of Carmel-by-the-Sea.

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

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

Attachment 2
Appendix G – Energy Conservation G-2 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024  Promote Funding Opportunities. Work with partners like 3CE and PG&E to identify and promote potential resilience opportunities and accessible funding and financing mechanisms to pay for building electrification, weatherization, and battery backups.

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

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

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

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

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

Attachment 2
Appendix G – Energy Conservation G-3 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Table G-1 PG&E Programs and Incentives for Residential Properties Program Description
Energy Savings Assistance
Program
PG&E’s Energy Savings Assistance program offers free weatherization measures and energy-efficient appliances to qualified low-income households. PG&E determines qualified households through the same sliding income scale used for CARE. The program includes measures such as attic insulation, weather stripping, caulking, and minor home repairs. Some customers qualify for replacement of appliances including refrigerators, air conditioners, and evaporative coolers.

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

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

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

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

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

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

SOURCE: PG&E, 2022.

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

Attachment 2
Appendix G – Energy Conservation G-4 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 The Water Management District serves approximately 105,911 people within the cities of Carmelby-the-Sea, Del Rey Oaks, Monterey, Pacific Grove, Seaside, Sand City, Monterey Peninsula Airport District, and portions of unincorporated Monterey County including Pebble Beach, Carmel Highlands, and Carmel Valley. The District has established five main goals:

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

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

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

4. Instill public trust and confidence; and

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

Rebates are available for water saving fixtures and appliances for homes and businesses. California American Water (Cal-Am), Seaside Municipal Water District, and other system customers within the District are eligible for a rebate when purchasing and installing water saving devices. Residential rebates are available for purchase of Qualifying Devices when funding is available. The following are residential rebates:
 High Efficiency Toilet — $75;
 Ultra High Efficiency Toilet — $125;
 Toilet Flapper — $15;
 Pint Urinal — $250;
 High Efficiency Residential Dishwasher (Maximum of 3.5 gallons per cycle and has Energy Star certification) — $125;
 High Efficiency Residential Clothes Washer (Water Factor of 4.3 and Energy Star Certification) — $500;
 A second or subsequent rebate for replacing a High Efficiency Clothes Washer is available after 8 years;
 Instant-Access Hot Water System — $200 per Qualifying Property;  On-demand pump or point-of source water heater as part of an Instant-Access Hot Water System — $100 per component, to a maximum of two components per Qualifying Property;  Multi-Family Dwelling Meter Split — $100/dwelling unit;  Smart Irrigation Controller — $100 with four stations. Additional $10 available per station up to twenty (20) stations;
Attachment 2
Appendix G – Energy Conservation G-5 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024  One or more Soil Moisture Sensor(s) on a conventional automatic Irrigation System — $25 per sensor;
 Cistern water tanks — $50 per 100 gallons of water storage capacity (up to 500 gallons) in a Cistern, then $25 per 100 gallons of water storage capacity up to a maximum storage capacity of 25,000 gallons per Qualifying Property. Sites must have sufficient roof area to fill Cistern and may require an inspection;
 Lawn removal and replacement with low water use plants or permeable surfaces — $1.00 per square-foot to a maximum of 2,500 square-feet per Qualifying Property. Pre-qualification, inspections and deed restrictions are required;
 Rotating Sprinkler Nozzles (minimum purchase and installation of ten) — $4.00 per nozzle;  Graywater Irrigation System supplied by one Clothes Washer for irrigation — $100. A site inspection is required by Building Inspector and/or MPWMD; and  Graywater Irrigation System supplied by one or more Bathrooms that have a Bathtub/Shower connected to a Graywater Irrigation System — $100 per Bathroom. (Residential limit: 4) A site inspection is required by Building Inspector and/or MPWMD.

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

Federal and State Programs
The Low-Income Home Energy Assistance Program (LIHEAP) is a federally funded program to assist low-income households that pay a high portion of their income on energy needs. LIHEAP is funded by the U.S. Department of Health and Human Services, Administration for Children and Families, Office of Community Services.
 The Home Energy Assistance Program (HEAP) provides one-time financial assistance to help balance an eligible household's utility bill;
 The Energy Crisis Intervention Program (ECIP) provides assistance to low-income households that are in a crisis situation. Such an example would be a household receiving a 24-48 hour disconnect notice or service termination by their utility company. Another example would be a household facing an energy-related crisis that could be deemed potentially life-threatening in the household, such as a combustible appliance;
 LIHEAP Weatherization provides free energy efficiency upgrades to low-income households to lower their monthly utility bills while also improving the health and safety of the household's occupants;
Attachment 2
Appendix G – Energy Conservation G-6 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024  Education on basic energy efficiency practices and instruction on the proper use and maintenance of installed weatherization measures; and
 Energy budget counseling.

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

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

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

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

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

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

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

Attachment 2
Appendix G – Energy Conservation G-7 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 Energy and Resource Conservation
Need
Programmatic Action
Energy Efficiency Program 2.4.A: Housing Rehabilitation and Maintenance Information Program 4.1.B: Energy Conservation and Green Building
Water Conservation Program 4.1.A: Water Conservation
Attachment 2
Appendix G – Energy Conservation G-8 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element Update HCD Revised Draft January 2024 This side intentionally left blank.

Attachment 2
Stakeholder Survey H

APPENDIX
Attachment 2
Attachment 2
Table of Contents
APPENDIX H STAKEHOLDER SURVEY ............................................................................. H-1 H.1 Stakeholder Survey ................................................................................................................ H-1 Attachments
Attachement A Stakeholder Survey Questions
Attachment B Open-ended Responses
Attachment 2
Attachment 2
Appendix H -- Stakeholder Survey H-1 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024 Appendix H
Stakeholder Survey
H.1 Stakeholder Survey
The Housing Element Stakeholder Survey was conducted from May 24, 2023 to July 6, 2023 to provide residents, business owners, visitors, and people working in Carmel-by-the-Sea with an opportunity to share input on what housing needs exist in Carmel-by-the-Sea and to share ideas on how the City can achieve its Regional Housing Needs Allocation (RHNA). The survey consisted of 21 questions designed to inform the City of what demographics exist in the City, what the affordable housing needs are, and how the 6th Cycle Housing Element can best meet these affordable housing needs. The survey was conducted in both English and Spanish. The survey was available online at the Carmel-by-the-Sea Housing Element page (homecarmelbythesea.com).

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

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

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

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

Attachment 2
Appendix H -- Stakeholder Survey H-2 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024 Of the respondents, 74 percent identified as non-Hispanic White and 50 percent of the respondents identified as earning above $100,000. Thirty-one percent of survey respondents preferred not to disclose their annual income. In general, the majority of survey respondents are between the ages of 55-74, are non-Hispanic White, and earn over $100,000.
1%
2%
8%
8%
24%
26%
31%
0% 5% 10% 15% 20% 25% 30% 35%
$0-$25,000
$25,001-$50,000
$75,001-$100,000
$50,001-$75,000
$200,000 or more
$100,001-$200,000
Prefer not to say
Figure 2: "What is your annual household income?"
1%
3%
4%
16%
22%
55%
0% 10% 20% 30% 40% 50% 60%
35-54, 55-74
Prefer not to say.
18-34
75+
35-54
55-74
Figure 1: "How old are you?"
Attachment 2
Appendix H -- Stakeholder Survey H-3 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024 Figure 4 below demonstrates the majority of respondents identified themselves as Carmel residents owning their home (61 percent) compared to 14 percent of survey respondents indicating they rent their homes. Twenty-two percent of respondents identified as working in Carmel-by-the-Sea, 8 percent identified as business owners in Carmel-by-the-Sea, and one respondent identified as being unhoused or lacking permanent housing.
1%
8%
14%
17%
22%
61%
0% 10% 20% 30% 40% 50% 60% 70%
I am unhoused/do not have permanent housing
I own a business in Carmel-by-the-Sea
I live in Carmel-by-the-Sea and rent my home.

Other
I work in Carmel-by-the-Sea
I live in Carmel-by-the-Sea and own my home
Figure 4: "Describe your role in the community."
0%
1%
1%
1%
1%
3%
8%
18%
75%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Native Hawaiian or Pacific Islander
Blended
Middle Eastern
Black or African American
Asian or Asian American
Native American
Hispanic, Latino, or Spanish origin
Prefer not to say
White (non-Hispanic)
Figure 3: "Which racial or ethnic group(s) do you identify as?" Attachment 2
Appendix H -- Stakeholder Survey H-4 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024 Figure 5 below demonstrates that the majority of survey respondents live in Carmel-by-the-Sea fulltime, and Figure 6 below demonstrates that 68 percent of survey respondents are 55 years or older followed by 16 percent being female-headed households. This demographic data suggests that respondents are likely more established community members in the City. 15%
20%
65%
0% 10% 20% 30% 40% 50% 60% 70%
Part-time
Not applicable
Full-time
Figure 5: "If you are a current resident of Carmel-by-the-Sea, do you live here full-time or part-time?"
1%
1%
3%
16%
26%
68%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Unhoused
Single-Parent Household
Differently Abled / Disabled
Female Headed Household
None of the above apply
Senior (55+)
Figure 6: "Do you identify with any of the following?"
Attachment 2
Appendix H -- Stakeholder Survey H-5 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024 Desired Housing Types
Survey respondents were asked to identify which housing types they would prefer to live in, of which approximately 83 percent identified single-family homes, followed by 6 percent identifying condominiums, 5 percent identifying apartments, and 3 percent identifying ADUs (Figure 7).

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

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

Respondents were asked to explain why they would prefer to live in an Apartment. The following 7 responses were received:
 I have little time for motivation for the upkeep of a whole house; 3%
3%
5%
6%
83%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
ADU
Other
Apartment
Condominium
Single-Family home
Figure 7: "In which of these housing types would/do you prefer to live in?"
Attachment 2
Appendix H -- Stakeholder Survey H-6 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024  I am at the stage in my life where I am seeking to maximize my financial solvency through steady accrual of work skills/experience and high willingness to relocate for greater chances of quality employment. I will not seek any living place requiring greater commitment until I have found the community most suited to sustaining both my professional growth and my standard of living;
 Affordability and community living opportunities. Apartments are like little families. Single family homes are like balkanized islands, with little communion;  Affordable and give the freedom to move quickly;
 Most affordable option;
 Convenience; and
 Single; No maintenance; Safety/Security.

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

Attachment 2
Appendix H -- Stakeholder Survey H-7 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024 Note: See Attachment B for a full list of “other” responses received.

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

The majority of respondents (55 percent) selected “second-story additions to single story buildings could provide affordable housing downtown,” followed by 52 percent of respondents selecting “guesthouses could be converted to Accessory Dwelling Units,” and 36 percent selecting “set a maximum square footage limit on housing units downtown as a means to create more small units.” Thirty-two percent of respondents shared their own ideas, which are captured as “other” in Figure 9, and can be found under Question #11 in Attachment B where all free responses are listed.
17%
20%
22%
34%
39%
44%
47%
49%
50%
0% 10% 20% 30% 40% 50% 60%
Other
Triplex
Fourplex
Duplex
Single-Family Home
Senior Housing
Apartment
Accessory Dwelling Unit
Condominium (owned)
Figure 8: "What type of housing would you like to see constructed in Carmel-by-the-Sea?"
Attachment 2
Appendix H -- Stakeholder Survey H-8 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024 Note: See Attachment B for a full list of the “other” responses received. The “other” responses are the open-ended responses that were received.

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

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

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

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

Figure 9: "How can the supply of affordable housing be increased to meet the needs of our community?"
Attachment 2
Appendix H -- Stakeholder Survey H-9 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024 Note: See Attachment B for a full list of the “other” responses received. The “other” responses are the open-ended responses that were received.

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

Note: See Attachment B for a full list of the “other” responses received. The “other” responses are the open-ended responses that were received. 5%
19%
26%
28%
32%
33%
69%
0% 10% 20% 30% 40% 50% 60% 70% 80%
None
Other
Housing Choice Voucher program (federal)
Information on Fair Housing/ How to file discrimination claims
Down payment assistance
Tenant assistance resources
Information about affordable units
Figure 10: "What affordable housing resources do you feel should be provided in Carmel-by-the-Sea?"
7%
21%
32%
39%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Fewer customers
No Change
Other
More customers
Figure 11: "What effect would providing more housing units in Carmel-by-the-Sea have on local businesses?"
Attachment 2
Appendix H -- Stakeholder Survey H-10 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024 Benefits of Living in Carmel
Survey respondents were asked what the most appealing elements about life in Carmel-by-the-Sea is.

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

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

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

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

Public engagement/community
Architectural Aesthetic of the housing
Parks/Beach/Recreation
Figure 12: "What are the most appealing elements about life in Carmel-by-the-Sea?"
Attachment 2
Appendix H -- Stakeholder Survey H-11 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024 A number of respondents did indicate a preference for constructing condominiums, apartments, and ADUs.

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

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

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

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

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

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

The most popular response was “Parks/Beach/Recreation,” followed by “Architectural Aesthetic of the Housing,” followed by “Public Engagement/Community.” It is clear that the architectural character and charm of Carmel-by-the-Sea is a major reason people choose to live in Carmel-by-theSea. It is evident that a number of community members fear that meeting the RHNA will disrupt this charm they love. Program 1.4.B (Objective Design Standards) will allow the City to retain their Attachment 2
Appendix H -- Stakeholder Survey H-12 EMC Planning Group Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024 design aesthetic while streamlining the permit process. Additionally, based on the survey results, community is also an important aspect of living in Carmel-by-the-Sea. With a current vacancy rate of 51 percent, more market rate and affordable units will result in more full-time community members, which will enrich the community of Carmel-by-the-Sea.

Attachment 2
Stakeholder Survey Questions A

ATTACHMENT
Attachment 2
Attachment 2
Appendix H -- Stakeholder Survey 1 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024

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

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

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

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

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

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

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

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

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

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

I work in Carmel-by-the-Sea.

I visit the City but live elsewhere (please specify): ______ Other: _____
Attachment 2
Appendix H -- Stakeholder Survey 2 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024

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

Part-time.

Not applicable.

General Survey Questions

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

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

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

Attachment 2
Appendix H -- Stakeholder Survey 3 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024

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

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

12. What affordable housing resources do you feel should be provided in Carmel-bythe-Sea? Select all that apply. a. Tenant assistance resources.
b. Information about affordable units.
c. Information on Fair Housing/how to file discrimination claims. d. Down payment assistance.
e. Housing Choice Voucher Program (Federal).
f. Other: _____
Attachment 2
Appendix H -- Stakeholder Survey 4 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024

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

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

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

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

Attachment 2
Open-ended Responses B

ATTACHMENT
Attachment 2
Attachment 2
Appendix H -- Stakeholder Survey 1 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024 The following lists the open-ended responses received for survey questions 7, 10, 11, 12, 13, 14 ,15, and 16. These responses are indicated as “other” in the figures.

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

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

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

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

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

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

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

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

Attachment 2
Appendix H -- Stakeholder Survey 2 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024 Less housing. Isn’t 3,000 homes in one square mile enough? I’m not pro-densification. 4,000 square foot lots are already small. We already have small setbacks.

Minimally invasive to character of Carmel.

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

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

Affordable housing directives aren’t necessary.

Aggressively tax homes that are NOT primary residences. Anyone using Carmel as their vacation home is contributing to the housing problem. Let’s make all of Carmel primary residences or full time rentals!
allow free market forces to guide the housing in the community Annex land outside city for affordable housing
Build housing on the outskirts and empty parking lots
Carmel should not be forced to change its look, feel and style! CBTS is nearly fully built out and highly desirable and therefor expensive. Adding housing will only ruin the quality of life in the city. Build the additional housing out in the Fort Ord area.
encourage landowners to build on empty lots, fast-track building permits Attachment 2
Appendix H -- Stakeholder Survey 3 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024 Fight back. There’s no land here for development.

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

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

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

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

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

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

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

Where is the Water going to come from for any of this?
work with our neighboring communities that have land/water available for housing Attachment 2
Appendix H -- Stakeholder Survey 4 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024 Question 12: “What affordable housing resources do you feel should be provided in Carmel-by-theSea? Select all that apply.” See corresponding Figure 10.

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

I don’t know.

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

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

Not for the City to get involved in.

Nothing.

Provide a gig economy type resource such as Airbnb or Neighborhood Storage to allow owners to rent out rooms
Rental agencies
Simplify the building code. Reduce the planning commission to 3, There is smooch open ground within 1/2 hour of Carmel why would anyone in their right mind try to jam affordable housing in a community as small and as expensive as Carmel? Unknown
Attachment 2
Appendix H -- Stakeholder Survey 5 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024 Question 14: “If you own property, would you consider redeveloping your property to include new housing? Examples include building an ADU/JADU, converting commercial office space to an apartment, or constructing a second-floor addition with apartments.” Note: There is no corresponding figure for this question.

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

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

Not possible. No.

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

No
no
Yah, would like to build condominium to retain pride of ownership in community No
No. My house is already two stories. A third story would destroy the character of the neighborhood. I value the forest-like nature of the neighborhood and am not willing to remove the trees on the property to make space for an ADU. no
No
Attachment 2
Appendix H -- Stakeholder Survey 6 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024 No
No
No
No, all the options above make a community a less desirable place to live.

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

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

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

Otherwise I would explore this.

Yes an ADU.

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

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

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

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

Heritage oak in the way.

No.

Attachment 2
Appendix H -- Stakeholder Survey 7 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024 NA
Yes, all of the above
No
Only with some protection to me as an owner as mentioned above.

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

No
No, my property is too small.

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

No, see above
No
No. Already 2 story.

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

NA
yes
All of the above.

Yes - I am currently considering this.

N/A
Not at this time.

Yes
Yes.

N/A
No.

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

Not sure. It’s a complex question.
na
Attachment 2
Appendix H -- Stakeholder Survey 8 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024 Yes, but the city makes the permitting very difficult and the county does not have the water.

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

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

I wouldn’t
More space
My property is historic.

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

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

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

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

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

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

Attachment 2
Appendix H -- Stakeholder Survey 9 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024 No
I live on a 4000 sqft lot - cant imagine having additional people on the lot.

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

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

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

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

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

Attachment 2
Appendix H -- Stakeholder Survey 10 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024 financial stimuli
Not possible. Lot already too small
Lot us too small
Nothing
nothing
Planning Commission objections to design elements they do not like. lower permit fees Already have an ADU on the property.

I am not at all interested.

My house already occupies most of the lot.

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

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

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

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

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

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

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

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

Decreased red tape and incentives.

I wouldn’t do it. Too small.

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

Essentially incentivize efforts to do ADUs.
would depend on what kitchen facilities would qualify (we have a guest house but no room for another structure)
Not a property owner
Financial assistance to build an ADU
Attachment 2
Appendix H -- Stakeholder Survey 11 EMC Planning Group
Carmel-by-the-Sea 6th Cycle Housing Element HCD Revised Draft January 2024 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.

Carmel-by-the-Sea City CouncilApril 8, 2024

Carmel-by-the-Sea City Council
April 8, 2024