City of Gonzales
COMMUNITY DEVELOPMENT DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 4, 2025
FROM: Taven Kinison Brown, Community Development Director THROUGH: Carmen Gil, City Manager
SUBJECT: Adopt the Sixth Cycle Housing Element and Zoning Implementation Measures - Resolution No. 2025-51, Resolution No. 2025-52, and Ordinance No. 2025-152
RECOMMENDATION
The Planning Commission recommends that the City Council take the following actions approve the 6th Cycle Housing Element and its Implementation:
• Receive the staff report;
• Open the public hearing;
• Close the public hearing; and
• Adopt Resolution No. 2025-51, A Resolution of the City Council of the City of Gonzales Determining that the Common Sense Exemption to the California Environmental Quality Act (CEQA) Applies to the Proposed 6th Cycle Housing Element, General Plan Land Use Text Amendment and Zoning Ordinance Text/Map Amendments as Supported by the Housing Element Update CEQA Exemption Technical Memorandum Prepared in February of 2025. • Adopt Resolution No. 2025-52, A Resolution of the City Council of the City of Gonzales Approving General Plan Amendment (GPA) 2025-01, Amending the Land Use Element of the General Plan, and Adopting the 2023-2031 Housing Element Update. • Introduce, Waive First Reading, and Read by Title only Ordinance No. 2025-152, An Ordinance of the City Council of the City of Gonzales Approving the New 6th Cycle Housing Element Update by Amending Title 12- (Zoning Regulations) with Associated Zoning Map and Zoning Regulation Text Changes, as Follows: Provisions in Chapter 12.08-Definitions, Chapter 12.20- Site Plan Permits, Chapter 12.48-Density Bonus, Chapter 12.56-Summary Of Zoning Districts and Permitted Uses, Chapter 12.68-R-1 Medium Density Residential District, Chapter 12.112- General Applications, and Chapter 12.120-Parking, and the Addition of New Chapter 12.54- AGENDA
ITEM
7 Reasonable Accommodations, Chapter 12.110-Aho Affordable Housing Overlay, Chapter
12.154-Local Education Agency Lands, Chapter 12.156-Employee Housing, Chapter 12.158- Licensed Residential Care Facilities, and Chapter 12.160-Transitional and Supportive Housing, and Amending the Zoning Map to Comply with the General Plan
BACKGROUND
Preparation of the updated Housing Element presented an opportunity for the City to engage constituents in defining housing issues, and in creating solutions that meet the needs of the community and the requirements of State law. Public Participation was and is the cornerstone of the process. For the development of the 2023-2031 Gonzales Housing Element, methods of obtaining public participation and input included, but are not limited to the following:
• Public Hearing
• Public Review Period
• Housing Needs and Opportunities Community Opinion Survey (English and Spanish) • Community Meeting presentations
• Housing Element Study Session with the Planning Commission • Housing Element updates posted on the City of Gonzales website.
The City of Gonzales regularly has civic and special events in the City’s Central Park which are well attended. In April of 2023, the City staffed a table event where we introduced the City of Gonzales Housing Needs and Opportunities Survey in both Spanish and English. Hard copies were offered and collected at the park, but the same survey was also posted on the City’s Webpage in both languages. (Total surveys received were 194 in English and 26 in Spanish = 220).
Additionally, a Planning Commission Study Session and joint City Council and Planning Commission workshop were conducted May 8, 2023, and August 21, 2023, and live translation services were offered.
The Planning Commission conducted another Housing Element Workshop on January 22, 2024, prior to sending the draft document to the state for first review.
Social Media was also engaged by the City to better effect public participation and notices and updates were included on the City’s Facebook and Instagram accounts.
Documents and notices have also been provided to the Gonzales Unified School District for posting and distribution, and Housing Element update information was also made available to the local branch of the Monterey County Library.
As provided in Appendix C to the 6th Cycle Housing Element, the City gathered information through a citywide Housing Needs and Opportunities Survey. The survey was conducted in English and Spanish to ensure that all community members were able to provide feedback on the existing and future housing needs in Gonzales, as well as provide feedback on desired solutions. The feedback provided served as the foundation for the Housing Element. (Appendix C has not been included in the Council packet as it exceeds 500 pages. The document can be found online though through the City Website at Appendix C ) A consistent theme across the survey was the need for more housing, including housing that is affordable to first-time homebuyers, housing in the lower price range, and lower-cost rental housing. As part of the site strategy, including the coming Vista Lucia Specific Plan annexation, the housing element demonstrates it is responsive to the desires of survey respondents by providing a mix of new singlefamily homes for purchase, as well as denser, multifamily housing that can serve multiple income levels.
Comments and feedback received helped to inform the City’s sites approach as well as the drafting of the implementation actions.
In January 2024 and May 2024, the City received public comments from LandWatch regarding the City’s Housing Element with comments centered on the Housing and Community Development (HCD), comment letter regarding the reliance of the Vista Lucia Annexation to meet the City’s RHNA, and the potential timing complications for this project as it relates to the planning period. In response to comments from LandWatch and to address HCD’s comments, the City is no longer relying on the Vista Lucia Annexation to meet its low-income housing obligations under RHNA, but assuming the specific plan development will provide for additional capacity once annexed into the City.
REVIEW AND ANALYSIS
Helpful to the reader would be to open several attachments to this staff report and turn pages before proceeding with reading this staff report. Staff has also included the PowerPoint Presentation that will be our on-screen guide as we review the 6th Cycle Housing Element with the City Council and public (Attachment 5).
❖ Attachment 1 is the public hearing notice.
❖ Attachment 2 is a Resolution that contains the City’s environmental review determinations for the General Plan Amendment and Zoning Code and Text Changes. ❖ Attachment 3 is a Resolution that contains the General Plan Amendment with the new 6th Cycle Housing Element.
❖ Attachment 4 is a new Ordinance that contains new Zoning Code definitions, new text regulations, and new Zoning Map designations to implement the 6th Cycle Housing Element. ❖ Attachment 5 includes the PowerPoint slides that we will use to guide the Public Hearing.
The following section introduces the structural components of the 6th Cycle Housing element and our review.
• Housing Element Overview
• Meeting the Regional Housing Needs Allocation (RHNA)
• Department of Housing and Community Development (HCD) Review and Comments • General Plan Land Use Text Amendment
• Rezone to Meet RHNA
• Zoning Text Amendments
• Environmental Review
• Schedule
• Recommendation
Housing Element Overview
Housing elements must be updated every 8 years by a City or County and must plan for accommodating the jurisdiction’s “fair share” of the regional housing need. There are five major organizing sections for the 6th Cycle Housing Element:
• The Housing Needs Assessment
• An Assessment of Fair Housing
• An Examination of Constraints to Housing Development
• Resources and Sites Inventory
• Policies and Programs
The Housing Needs Assessment is an evaluation of Demographic Trends, Housing Market Trends, and Special Needs Groups.
The Assessment of Fair Housing addresses Outreach, Fair Housing Issues, Site Inventory Analysis and Contributing Factors.
The Examination of Constraints to Housing Development addresses Governmental and NonGovernmental Constraints, Market Trends Environmental factors, and Infrastructure.
A Resources and Sites Inventory that includes Zoning and Capacity, an Inventory of Sites and speaks to Accessory Dwelling Units (ADUs) and Mobile Homes.
Policies and Programs. Includes a Review of previous Housing Element Implementation, and Identification of new programs for this 2023-2031 cycle.
Meeting the Regional Housing Needs Allocation (RHNA)
The Association of Monterey Bay Area Governments (AMBAG) has allocated the following income assignments of targeted housing unit affordability for the City of Gonzales.
These numbers mean that the City is obligated to demonstrate that there are land areas and zoning designations that would allow the private sector to construct these amounts of units within the City of Gonzales, not that the City has to actually construct them.
The Housing Element lays out our 1,266-unit expected contribution over this housing element period, then determines if the City needs to zone more areas for housing or has enough land area for each of the income groups.
From available and anticipated housing sites in the City and anticipated annexation areas, and the expected new ADUs that can be constructed during the cycle, the City has determined that with some strategic new zoning, we can meet these ambitious RHNA obligations.
As will be described in more detail in coming sections, the City will be adding an Affordable Housing Overlay (AHO) zoning designation on several vacant industrial-zoned properties. This overlay zoning district will continue to allow the underlying and long-expected industrial development, as well as workforce affordable housing, should a proposal be presented by the property owners.
Staff and our consultant have determined that we will have more than enough land areas for Very Low and Low Income households, even if the big annexation does not come through.
Department of Housing and Community Development (HCD) Review and Comments • 1
st Submittal to Department of Housing and Development February 29, 2024 o Comment Letter Received May 29, 2024
• 2
nd Submittal to Department of Housing and Development October 25, 2024 o Conditional Compliance Letter received December 24, 2024 Key Revisions requested by the Department of Housing and Community Development involved:
• The review of the last 5th Cycle Housing Element and for the City to add program accomplishments for special needs populations.
• That we address the Housing Needs Assessment to:
o expand discussion of major employment sectors—specifically for agricultural workers and
o expand the analysis of housing overpayment for extremely low-income households • Fair Housing Analysis
o Expand discussion of the City’s current compliance with fair housing laws and regulations.
o Expand analysis of development patterns on the west and east sides of Highway 101. o Add historical factors regarding land use development patterns, and socio-economic influences over time.
o Add analysis of sites to meet the RHNA regarding income category, zoning designation, and geographic distribution across the City.
• Constraints
o Added analysis of cumulative impacts on multifamily development in MU and R-2 zones.
o Expanded analysis of Site Plan Permit approval findings and process. o Added Design Review approval findings and process
o Included analysis of fees for both single-family and multifamily development. o Added clarification on consistency with the 2022 California Building Code. • Sites Inventory and Analysis
o Revised the status of the Community Housing Improvement Systems and Planning Association (CHISPA) project to indicate it is being rescoped and will no longer be counted toward RHNA.
o Revised RHNA Credits from approved projects and projected units. o Revised the realistic capacity for Sites 7 and 8 based on an assumption of 75 percent of the maximum allowable density.
o Clarified that the Vista Lucia Specific Plan capacity will provide capacity to meet RHNA once the annexation is complete.
• Programs
o Added the following new programs:
▪ Program HE-1.2.6 Parking Standards: Amend residential parking standards to reduce potential constraints.
▪ Program HE-1.1.4 Affordable Housing Overlay Rezone: Establish an Affordable Housing Overlay (AHO) to meet the lower-income RHNA. ▪ Program HE-4.3.2 Place-based and Anti-Displacement Strategies: Implement place-based and anti-displacement strategies to improve access to resources in lower-income neighborhoods.
o Increased Quantified Objectives for the following programs:
▪ HE-1.1.4 Affordable Housing Overlay Rezone
▪ HE-1.2.3: Objective Development Standards
▪ HE-1.2.4: Density Bonus Programs
▪ HE-1.3.1: Missing Middle Housing Production
▪ HE-2.1.1: Provide Incentives for Affordable Housing
▪ HE-2.2.1: Pursue State and Federal Funding to Assist in Development of Special Needs Housing
▪ HE-2.2.3: Housing and Services for Individuals with Disabilities ▪ HE-2.2.4: Farmworker Housing
▪ HE-3.1.2: Housing Choice Voucher Collaboration
o Expanded geographic targeting area for the following programs:
▪ HE-2.3.1: Anti-Displacement Actions
▪ HE-3.1.2: Housing Choice Voucher Collaboration
▪ HE-4.1.1: Fair Housing Information, Education, and Enforcement ▪ HE-4.3.1: Developer Engagement
o Added additional actions to the following programs:
▪ HE-1.2.2: Coordinate with Service Providers
▪ HE-1.3.2: Zoning for a Variety of Housing Types
▪ HE-1.3.3: ADU Production
▪ HE-2.1.1: Provide Incentives for Affordable Housing
▪ HE-2.3.1: Anti-Displacement Actions
• Public Participation
o Expanded the discussion of the public engagement process and how community feedback was incorporated into the development of the Housing Element.
General Plan Land Use Text Amendment
The following red/underlined text will be added to the Industrial/Manufacturing Land Use description.
The primary purpose of this designation is to define those areas that are appropriate for heavy industrial and manufacturing uses, the location of which may create land use conflicts with residential uses and schools. The emphasis is on agricultural services but other types of industry compatible with the policies in the General Plan are encouraged. The designation permits industrial parks, light manufacturing, warehousing, wineries, auto and farm equipment sales or repair establishments, feed stores, lumber yards, construction supply companies and similar compatible uses. Compatible highway-serving uses like gas stations, restaurants, motels, and truck stops are permitted in this area. The maximum permitted Floor Area Ratio is 0.5.
Multifamily residential uses are permitted with the applicable Affordable Housing Overlay Zone at a minimum density of 20 units per acre and a maximum density of 30 units per acre.
Rezone to Meet RHNA
• Affordable Housing Overlay
o Added new Chapter 12.110 (Affordable Housing Overlay). o The six parcels listed below will be rezoned to apply the Affordable Housing Overlay (IAHO) zone. The proposed allowable density will be 20-30 units per acre. o Permitted uses include multiple-family residential uses (by right, as defined in Government Code Section 65583.2(i)), low-barrier navigation centers, residential care facilities, supportive housing, and transitional housing.
These overlays would allow 273 to 409 units of capacity.
Zoning Text Amendments
The City has added the following zoning text amendments to comply with State law.
• Amended/Added the following definitions in Chapter
12.08 (Definitions)
o (Added) “Low-Barrier Navigation Center”
o (Added) “Employee Housing, Large” and “Employee Housing, Small” o (Added) “Target Population”
o (Amended) Residential Care Facilities, Large and Small” — Replaced with definitions for “Licensed Residential Care Facilities” and “Unlicensed Residential Care Facilities” o (Amended) “Family,” “Emergency Shelter,” “Transitional Housing,” and “Supportive Housing”
• Amended Chapter 12.48 (Density Bonus) to comply with the most recent State Law • Added new Section 12.48.040.B (Supplemental Density Bonus Programs) to offer local bonus incentives, including:
o Urban Agriculture Bonus – for projects that provide 500+ sq. ft. of edible garden space. o Large Family Bonus – for developments reserving 35% of units for large families (3+ bedrooms) or 20% for 4+ bedrooms.
o Universal Design Bonus – for projects incorporating step-free access, livable ground floors, and accessible environmental controls in at least 20% of units. • Amended Section 12.56.040 (List of Permitted and Conditional Uses By Zoning District) to address:
o Low-Barrier Navigation Centers
o Employee Housing, Small
o Employee Housing, Large
o Licensed and Unlicensed Residential Care Facilities
o Manufactured Homes
o Transitional and Supportive Housing
• Amended Section 12.120.150 (Parking Standards) to remove covered parking requirements and revise the current guest parking space standards.
• Amended Section 12.112.020 (Accessory Dwelling Units) to comply with ADU/JADU law and allow JADUs within all single-family dwellings.
• Amended Section 12.68.040.A.2 (R-2 Development Standards) to increase the maximum allowed density to 20 dwelling units per acre.
• Added new Chapter 12.54 (Reasonable Accommodations) to establish a procedure for individuals with disabilities to request accommodation for equal access to housing. • Added new Chapter 12.154 (Local Education Agency Lands) to encourage the development of housing on local education agency (LEA) lands.
• Added new Chapter 12.156 (Employee Housing) to establish development standards and a streamlined approval process for employee housing consisting of 12 units or fewer. • Added new Chapter 12.158 (Licensed Residential Care Facilities) to establish development standards for licensed residential care facilities.
• Added new Chapter 12.160 (Transitional and Supportive Housing) to establish development standards for Supportive Housing, up to 50 units.
ENVIRONMENTAL REVIEW
An environmental assessment was prepared, determining that the Housing Element is exempt from review under the California Environmental Quality Act (CEQA) subject to the following CEQA exemption:
• Section 15061(b)(3) – Common Sense Exemption
Additionally, the proposed Zoning Ordinance Text/Map Amendments, along with the General Plan Land Use Text Amendment, were determined to be exempt from review under CEQA subject to the following exemption:
• Section 15061(b)(3) – Common Sense Exemption
Use of these Exemptions is supported by the Housing Element Update CEQA Exemption Technical Memorandum Prepared In February Of 2025 attached to Resolution No.2025-051.
Explain the Recommendation and How it Supports the Vision Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.
Explain: Preparation of the updated housing element has presented an opportunity for the City to directly engage citizens and interest groups in defining housing issues particular to the City of Gonzales, and in creating solutions that meet the needs of the community. Public participation has been the cornerstone of the process.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment, and resources necessary to provide excellent services that enhance the quality of life of our diverse community.
Explain: Preparation of the updated housing element has presented an opportunity for the City to directly engage citizens and interest groups in defining housing issues particular to the City of Gonzales, and in creating solutions that meet the needs of the community. Public participation has been the cornerstone of the process.
Additionally, staff has secured grant funding to facilitate and implement the programs and policies of the new 6th Cycle Housing Element.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety Yes No X N/A
• Housing X Yes No N/A
• Recreation Yes No X N/A
• Environment Yes No X N/A
• Education Yes No X N/A
Explain: Please see the Vision above.
ALTERNATIVES
The City Council could direct that further study or additional programs be evaluated under the 6th Cycle Housing Element, but this would further delay the City from coming compliant with state direction at the Department of Housing and Community Development. Additional delay may also compromise our grant funding re-imbursements for our implementation efforts to date and moving forward.
BUDGET IMPACT
REAP 2.0 Grant funding has been secured that is covering staff and consultant contract costs for implementation of the 6th Cycle Housing Element. The REAP 2.0 grant is offsetting some of the Community Development Director’s time and efforts with report writing, public noticing and presentation items before the Planning Commission and City Council, resulting in modest general fund savings for those hours worked and material expenses to the effort. Long-term, it is hoped that the updated 6th Cycle Housing Element results in additional housing units constructed in the community, adding social as well as fiscal value to the community.
SCHEDULE
Following a positive action from the City Council adopting the Housing Element on August 4, 2025, staff will send the City of Gonzales 6th Cycle Housing Element to the state Department of Housing and Community Development by August 7, 2025.
Staff will also schedule the second reading of Ordinance No. 2025-152 for City Council adoption at the August 18, 2025 meeting. Following a second reading and adoption of the ordinance, the new provisions will be in-force 30 days later.
CONCLUSION
It is Recommended that the City Council:
• Adopt Resolution No. 2025-51, A Resolution of the City Council of the City of Gonzales Determining that the Common Sense Exemption to the California Environmental Quality Act (CEQA) Applies to the Proposed 6th Cycle Housing Element, General Plan Land Use Text Amendment and Zoning Ordinance Text/Map Amendments as Supported by the Housing Element Update CEQA Exemption Technical Memorandum Prepared in February of 2025. • Adopt Resolution No. 2025-52, A Resolution of the City Council of the City of Gonzales Approving General Plan Amendment (GPA) 2025-01, Amending the Land Use Element of the General Plan, and Adopting the 2023-2031 Housing Element Update. • Introduce, Waive First Reading, and Read by Title only Ordinance No. 2025-152, An Ordinance of the City Council of the City of Gonzales Approving the New 6th Cycle Housing Element Update by Amending Title 12- (Zoning Regulations) with Associated Zoning Map and Zoning Regulation Text Changes, as Follows: Provisions in Chapter 12.08-Definitions, Chapter 12.20- Site Plan Permits, Chapter 12.48-Density Bonus, Chapter 12.56-Summary Of Zoning Districts and Permitted Uses, Chapter 12.68-R-1 Medium Density Residential District, Chapter 12.112- General Applications, and Chapter 12.120-Parking, and the Addition of New Chapter 12.54- Reasonable Accommodations, Chapter 12.110-Aho Affordable Housing Overlay, Chapter
12.154-Local Education Agency Lands, Chapter 12.156-Employee Housing, Chapter 12.158- Licensed Residential Care Facilities, and Chapter 12.160-Transitional and Supportive Housing, and Amending the Zoning Map to Comply with the General Plan Attachments:
1. Public Notice
2. Resolution No. 2025-51 for CEQA Exemption
3. Resolution No. 2025-52 General Plan Amendment with Exhibits A & B
4. Ordinance No. 2025-152 Housing Element
5. Powerpoint Presentation