Agenda packet, regular meeting — Monterey City Council, September 19, 2023 (part 2 of 8)

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 104, Packet Page 227 Table C: Land Use, Table Starts in A2
Zoning Designation
From Table A, Column G and Table B, Columns
L and N (e.g., "R-1")
General Land Uses Allowed (e.g., "Low-density residential") R-E Residential Estate District
Single-family detached homes on large parcels in neighborhoods at densities ranging from less than two dwelling units per acre and to eight units per acre.

R-1 Residential Single-Family District
Single-family detached homes in neighborhoods at densities ranging from less than two dwelling units per acre to eight units per acre.

R-2 Residential Low-Density Multifamily
Dwelling District
Multifamily dwelling residential use, including duplexes, townhouses, apartments, or cluster housing, in neighborhoods at a maximum density of 14.5 dwelling units per acre.

R-3 Residential Medium Density
Multifamily Dwelling District
Garden apartments, townhouses, and cluster housing in
neighborhoods at densities up to 30 units per acre.

C-1 Neighborhood Commercial District Businesses serving the daily needs of nearby residential areas.

C-2 Community Commercial District
Retail shopping areas containing a wide variety of commercial establishments, including: retail stores and businesses selling home furnishings, apparel, durable goods, and specialty items; restaurants; commercial recreation; service stations; and business, personal and financial services.

C-3 General Commercial District
Locally serving commercial areas by providing sites for such services as automobile sales and repair services, building materials, contractors’ yards, warehousing, storage and similar uses.

CR Cannery Row District
Distinct visitor-commercial area for Cannery Row, including a broad range of specialty and general commercial, service, recreational and public and semipublic uses.

CO Office and Professional District Offices at appropriate location.

VAF Visitor Accommodation Facility District Visitor accommodation facilities.

I-R Industrial, Administration, and
Research District
Modern, large-scale administrative facilities, research institutions, and specialized manufacturing organizations, including nonnuisance production, distribution, and storage of goods, but no raw materials processing or bulk handling.

O Open Space District
Large public or private sites permanently designated for open space use or currently in an open space use
P Parking District
Public or private parking lots or structures.

PC Planned Community District
Zoning for specific plan areas allowing residential uses as a permitted use as part of a mixed use project.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 105, Packet Page 228

APPENDIX
B
NEEDS

ASSESSMENT
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 106, Packet Page 229 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment Table of Contents
Population Characteristics............................................................................................. B-1 Household Characteristics............................................................................................. B-4 Employment .................................................................................................................... B-6 Special Needs Groups .................................................................................................... B-8 Housing Stock Characteristics .................................................................................... B-23 Housing Costs and Affordability.................................................................................. B-31 Assisted Housing at Risk of Conversion ..................................................................... B-42 Energy Conservation .................................................................................................... B-44 Projected Housing Need.............................................................................................. B-45 Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 107, Packet Page 230 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-1
Appendix B: Housing Needs Assessment
The Housing Needs Assessment analyzes important population, housing, and employment characteristics to identify the specific housing needs in the City of Monterey. This assessment is essential for developing a successful strategy to meet a variety of housing needs in the City. Both local and regional changes since the previous Housing Element are assessed to provide the full scope of housing needs. This evaluation also serves as the basis for the goals, policies and programs detailed in the Housing Plan that will be implemented over the 2023-2031 planning period. Important characteristics to consider include:
• Demographic characteristics including of age, race/ethnicity and employment; • Household type, age and income;
• Special housing needs present in the community;
• Housing type, cost, condition and affordability; and
• Evaluation of the City’s share of the region’s housing needs.

The Association of Monterey Bay Area Governments (AMBAG) has produced Local Housing Needs Data packets for jurisdictions in the AMBAG region that have been pre-approved by the State Department of Housing and Community Development (HCD). These data packets largely rely on 2016-2020 five-year American Community Survey (ACS) and 2013-2017 Department of Housing and Urban Development (HUD) Comprehensive Housing Affordability Strategy (CHAS) estimates, among other sources. Though 2021 ACS data is more recent than the 2016-2020 estimates, the AMBAG data provide a more fine-grained level of detail than is currently available from the 2020 ACS data and has been pre-certified by HCD to account for margins of errors.

Population Characteristics
According to the California Department of Finance (DOF), the total population of the City of Monterey in 2020 was 28,304, an increase of 2.3 percent since 2010 (27,810). As shown in Table B-1, AMBAG projects that by 2040 the population of the city will increase approximately 10 percent from the 2010 reported Census population. The AMBAG projections show a slightly higher population in 2010 than the U.S. Census count. 2010 2015 2020 2025 2030 2035 2040 2045 2050
Monterey 27,810 28,239 28,304 28,044 28,650 29,032 29,342 29,639 29,934 Monterey
County
415,057 430,277 440,393 453,956 464,124 471,901 477,265 480,694 481,305 Source: Association of Monterey Bay Area Governments, 2022, California Department of Finance, E-5 series, P-1: State Population Projections (2010-2060), 2023
Table B-1: City of Monterey Population Projections (2010-2050) Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 108, Packet Page 231 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-2

POPULATION BY AGE
Current and future housing needs are usually determined in part by the age characteristics of a community’s residents. Each age group has distinct lifestyles, family type and size, incomes, and housing preferences.

Consequently, evaluating the age characteristics of a community is important in determining its housing needs.

According to the 2020 ACS five-year estimates, the city’s median age is 36.9, which is 2.2 years older than Monterey County’s median age of 34.7. A review of data on population by age in the city since 2010 indicates that while the share of residents 34 years and younger has remained relatively stable over time, the share of residents aged 35-54 has dropped by 10.8 percent. By contrast, the fastest growing segment of the population is the cohort aged 55 years and over, which grew by 14 percent between 2010 and 2020. This table is based on data from the U.S. Census and the American Community Survey five-year data set.

Age Group
2000 2010 2020
Number Percent Number Percent Number Percent
0-4 years 1,477 4.98% 1,423 5.12% 1,461 5.11%
5-14 years 2,684 9.04% 2,171 7.81% 2,291 8.02%
15-24 years 4,656 15.69% 4,513 16.23% 4,153 14.53%
25-34 years 5,382 18.14% 5,023 18.06% 5,645 19.76%
35-44 years 4,638 15.63% 3,451 12.41% 3,257 11.40%
45-54 years 4,031 13.58% 3,457 12.43% 2,907 10.17%
55-64 years 2,396 8.07% 3,475 12.50% 3,433 12.01%
65-74 years 1,974 6.65% 1,992 7.16% 2,745 9.61%
75-84 years 1,699 5.73% 1,370 4.93% 1,855 6.49%
85+ years 737 2.48% 935 3.36% 828 2.90%
Total 29,674 100% 27,810 100% 28,575 100%
Source: U.S. Census Bureau, Census 2000 SF1, Table P12; U.S. Census Bureau, Census 2010 SF1, Table P12; U.S. Census Bureau, American Community Survey 5-Year Data (2016-2020), Table B01001

RACE AND ETHNICITY
Table B-3 presents the racial and ethnic composition of the City of Monterey’s population in 2000, 2010, and 2020, as reported in U.S. Census (for 2000) and American Community Survey five-year data (for 2010 and 2020). Since 2000, Monterey has seen an increase in its Hispanic or Latinx population from 10.9 percent to 17 percent, making it the city’s second largest racial or ethnic group. The largest racial or ethnic group remains White, at 67.7 percent in 2020, down from 75 percent in 2000. In 2019, on-Hispanic Black and Non-Hispanic Asian populations stayed the same in their share of the city’s overall population at 3.6 percent and 6 percent, respectively.

Table B-2: Population by Age, City of Monterey (2000-2020) Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 109, Packet Page 232 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-3
Racial/Ethnic Group
2000 2010 2020
Number Percent Number Percent Number Percent
American Indian or Alaska Native,
Non-Hispanic
122 0.41% 109 0.39% 88 0.31%
Native Hawaiian and Other Pacific
Islander alone, Non-Hispanic
83 0.28% 100 0.36% 102 0.36%
Asian, Non-Hispanic 2,171 7.32% 2,544 9.14% 1,714 6.00% Black or African American, NonHispanic
716 2.41% 627 2.25% 1,024 3.58%
White, Non-Hispanic 22,246 74.97% 19,260 69.21% 19,346 67.70% Other Race or Multiple Races, NonHispanic
1,114 3.75% 1,228 4.41% 1,454 5.09%
Hispanic or Latinx 3,222 10.86% 3,959 14.23% 4,847 16.96% Total 29,674 100% 27,827 100% 28,575 100%
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2016-2020), Table B03002 The ethnic composition of the City of Monterey contrasts markedly with that of the County as a whole.

While the City has a substantially larger share of White residents (63 percent) than in Monterey County as a whole (30 percent), the County has a much larger share of Hispanic/Latinx residents (58 percent) than the city (18.6 percent).

Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B03002 Table B-3: Population by Race, City of Monterey (2000-2020) Chart B-1: Monterey and Surrounding Area Population by Race/Ethnicity, 2019 Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 110, Packet Page 233 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-4
Household Characteristics

HOUSEHOLD SIZE
According to ACS five-year estimates data, the average household size in Monterey in 2020 was 2.1 (Table 25010). The City’s average is lower than the average for Monterey County as a whole (3.3).

As seen in Table B-4, the share of the City’s population in 2019 living in a one-person household (41 percent) was significantly larger than that of Monterey County (21.4 percent). This likely reflects the city’s large senior, student, and military populations. Two-person households account for over 36 percent households in Monterey, which is 8.3 percent more compared to Monterey County (27.8 percent). On the other hand, Monterey has a much smaller share of households of three-four persons (19 percent) and five or more persons (4 percent) than the County at 32.2 percent and 19.7 percent, respectively.

Household Size Monterey Monterey County
Number Percent Number Percent
1-Person Household 5,069 40.97% 27,366 21.38%
2-Person Household 4,459 36.04% 35,540 27.76%
3-4-Person Household 2,341 18.92% 39,901 31.17%
5-Person or More Household 504 4.07% 25,196 19.68%
Total 12,373 100% 128,003 100%
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B11016

HOUSEHOLD CHARACTERISTICS
A summary of household characteristics in the City of Monterey and Monterey County is provided in Table B-5. A family household is a household consisting of two or more people residing together and related by birth, marriage, or adoption. A non-family household consists of a householder living alone (a one-person household) or where the householder shares the home exclusively with people to whom they are not related to. According to the ACS data (2015-2019), the greatest share (53.1 percent) of households in Monterey are non-family households, again likely reflective of the city’s large student and military population. Overall, family households account for 46.9 percent of households in the City, which significantly lower than Monterey County (72.6 percent). Interestingly, Monterey has a smaller share of single-parent households (8.8 percent) than Monterey County (19.1 percent).

Household Types Monterey Monterey County
Number Percent Number Percent
Female-Headed Family Households 725 5.86% 15,986 12.49% Male-headed Family Households 357 2.89% 8,394 6.56%
Married-couple Family Households 4,719 38.14% 68,568 53.57% Other Non-Family Households 6,572 53.12% 35,055 27.39%
Total 12,373 100% 128,003 100%
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2016-2020), Table B11001 Table B-4: Monterey and Surrounding Areas Household Size, 2019 Table B-5: Monterey and Surrounding Areas Household Type, 2020 Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 111, Packet Page 234 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-5

HOUSEHOLD INCOME
Household income is one of the most significant factors affecting housing choice and opportunity. Income largely determines a household’s ability to purchase or rent housing. While higher-income households have more discretionary income to spend on housing, lower- and moderate-income households are limited in the range of housing they can afford. Typically, as household income decreases, cost burdens and overcrowding increase.

For the purpose of evaluating housing affordability, housing need, and eligibility for housing assistance, income levels are defined by guidelines adopted each year by the California State Department of Housing and Community Development (HCD). For Monterey County, the applicable Area Median Income (AMI) for a family of four in 2023 is $100,400. This is an increase of 46.1 percent from the 2014 median income of $68,700. HUD has defined the following income categories for Monterey County, which apply to the City of Monterey, based on the median income for a household of four persons for 2023:
• Extremely low-income: 30 percent of AMI and below ($0 to $36,100) • Very low-income: 31 to 50 percent of AMI ($36,101 to $60,200) • Low-income: 51 to 80 percent of AMI ($60,201 to $96,350) • Moderate-income: 81 to 120 percent of AMI ($96,351 to $120,500) • Above moderate-income: 120 percent or more of AMI ($120,501 or more) Table B-6 shows the HUD definitions for Monterey County’s maximum annual income level for each income group, adjusted by household size. This data is used when determining a household’s eligibility for federal, State, or local housing assistance and used when calculating the maximum affordable housing payment for renters and buyers.

Maximum Income Level
Household
Size
Extremely Low Very Low Low Median Moderate
1 Person $25,300 $42,150 $67,450 $70,300 $85,350
2 Persons $28,900 $48,200 $77,100 $80,300 $96,400
3 Persons $32,500 $54,200 $86,750 $90,350 $108,450
4 Persons $36,100 $60,200 $96,350 $100,400 $120,500
5 Persons $39,000 $65,050 $104,100 $108,450 $130,150
6 Persons $41,900 $69,850 $111,800 $116,450 $139,800
7 Persons $45,420 $74,650 $119,500 $124,500 $149,400
8 Persons $50,560 $79,500 $127,200 $132,550 $159,050
Source: HUD Income Limits 2023
As summarized in Table B-7, the majority of households in the City made more than 100 percent of AMI (62.1 percent) as compared to the county (51 percent). Correspondingly, the share of moderate- and lowerincome households is lower in the City than in the county.

Table B-6: HUD Income Levels by Household Size (Monterey County, 2023) Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 112, Packet Page 235 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-6
Monterey Monterey County
Number Percent Number Percent
0%-30% of AMI 905 7.8% 12,110 9.61%
31%-50% of AMI 795 6.9% 14,480 11.49%
51-80% of AMI 1,645 14.2% 21,850 17.33%
81%-100% of AMI 1,040 9.0% 13,360 10.60%
>100% of AMI 7,205 62.1% 64,250 50.97%
Total 11,590 100% 126,050 100%
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2015-2019 release Employment

OCCUPATION AND LABOR FORCE
There are 13,550 persons in the labor force in the City of Monterey as of 2020. As seen in Table B-8, the largest industry sector represented among the City’s working residents is Health and Educational Services (26.7 percent), which is a greater share of the workforce represented in the industry compared to the county (20.3 percent). Financial and Professional Services is the second largest represented amount Monterey working residents (22 percent). Compared to Monterey County, the number of residents employed in the Agriculture and Natural Resources industry account for significantly less of the City’s employment distribution (2 percent) than that of the county (16 percent).

Monterey Monterey County
Number Percent Number Percent
Agriculture & Natural Resources 281 2.1% 29,975 15.9%
Construction 617 4.6% 12,524 6.6%
Financial & Professional Services 2,965 21.9% 25,839 13.7% Health & Educational Services 3,620 26.7% 38,246 20.3%
Information 128 0.9% 2,593 1.4%
Manufacturing, Wholesale, &
Transportation 1,071 7.9% 21,949 11.6%
Retail 1,092 8.1% 18,535 9.8%
Arts, Entertainment,
Accommodation, & Food Services 2,215 16.3% 21,063 11.2% Public Administration 1,063 7.8% 9,923 5.3%
Other 498 3.7% 8,087 4.3%
Total 13,550 100% 188,734 100%
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2016-2020), Table C24030 Table B-7: Monterey and Surrounding Areas Households by Household Income Level Table B-8: Monterey and Surrounding Areas Employment by Industry (2020) Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 113, Packet Page 236 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-7

COMMUNTING TRENDS
U.S. Census Bureau OnTheMap tool displays where workers are employed and where they live. U.S. Census identified 20,743 workers in the City of Monterey in 2020, of which 18,082 workers commute to the Monterey from outside of the city, which represents 87.2 percent of the total worker population.

Approximately 2,661 people both live and work in Monterey, which accounts for only 12.8 percent of total worker population. As shown in Table B-9, about 7,247 workers who live in Monterey commute outside of the city for work. This means almost three times the number of workers commute out of Monterey compared to those who live and work in the City, and more than double the number of workers commute in to Monterey as compared to those who live in Monterey and commute out of the City to work. Most commuting workers in and out of Monterey (78.7 and 71.4 percent) work in “all other services.

Inflow Outflow
Number Percent Number Percent
Goods Producing Workers 1,102 6.1% 927 12.8%
Trade, Transportation, and Utilities Workers 2,754 15.2% 1,148 15.8% All Other Services Workers 14,226 78.7% 5,172 71.4%
Total 18,082 100.00% 7,247 100.00%
Notes

1. “Goods Producing” includes agriculture, forestry, fishing and hunting; mining, quarrying, and oil and gas extraction; construction, and manufacturing.

2. “Trade, Transportation, and Utilities” class includes workers in wholesale trade, retail trade, and transportation and warehousing.

3. “All Other Services” includes information, finance and insurance, real estate, professional, scientific, and technical services, health and educational services, food services, arts, entertainment, accommodation, & food Services, and public administration.

Source: U.S. Census Bureau OnTheMap tool, 2020

EMPLOYMENT GROWTH TRENDS
According to California Employment Development Department Local Area Unemployment Statistics (LAUS), the City of Monterey experienced an unemployment rate of 4.5 percent in 2021. While this rate is a 50 percent decrease from unemployment rates in 2011, it is a 80 percent increase from the 2019 unemployment rate (2.5 percent). Monterey’s significant increase in unemployment in 2020 is likely due to the impacts of the COVID-19 pandemic. Meanwhile, Monterey County had a 12.7 percent unemployment rate in 2021, which is only about 28.7 percent decrease from unemployment rates in 2011 (17.8 percent).

Additionally, while the City’s unemployment rate decreased between 2020 and 2021, the County unemployment rate increased approximately 27 percent.
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Monterey 9.0% 8.1% 7.2% 6.3% 5.6% 3.5% 3.2% 2.6% 2.5% 7.8% 4.5% Monterey
County 17.8% 16.6% 15.5% 13.6% 12.6% 11.8% 11.6% 9.8% 10.3% 10% 12.7% Source: California Employment Development Department, Local Area Unemployment Statistics (LAUS), Sub-county areas annual updates, 2011- 2021.

Table B-9: Monterey Commuting Workers by Job Type (2020) Table B-10: Monterey Unemployment Rate (2011-2021)
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 114, Packet Page 237 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-8
Special Needs Groups
Certain groups have greater difficulty in finding suitable affordable housing due to their special needs and circumstances. This may be a result of employment and income, family characteristics, disability, or household characteristics. Consequently, certain residents in the City of Monterey may experience more instances of housing cost burdens, overcrowding, or other housing problems. The categories of special needs addressed in this Element include:
• Extremely low-income households
• Older adults
• Persons with disabilities, including developmental disabilities • Female-headed households
• Large households
• Persons experiencing homelessness
• Farmworkers
• Students
• Military employees and veterans
• Group quarters populations

EXTREMELY LOW-INCOME HOUSEHOLDS
California State Housing Law requires local governments to address the needs of “Extremely Low-Income” populations, which refers to households with incomes below 30 percent of the AMI for the community. In addition to those families making less than 30 percent of AMI, the Federal Poverty Level (FPL) is a threshold established by the federal government that remains constant throughout the country (and thus does not correspond to AMI). Federal statistics can also help the City quantify the extent of the extremely lowincome population. The federal government defines poverty as a minimum level of income (adjusted for household size and composition) necessary to meet basic food, shelter, and clothing needs. For 2021, the FPL for a family of four is $26,500, which is lower than Monterey County’s threshold for 30 percent of AMI at $36,100. This means that households that qualify as extremely low-income in Monterey are living only slightly above the FPL.

As seen in Table B-11, 8.6 percent of City of Monterey residents fall below 30 percent of AMI. This data is based on the HUD Comprehensive Housing Affordability Strategy ACS tabulation 2015-2019 release.

American Indian or Alaska Native (non-Hispanic) households are most likely to fall below 30 percent AMI at 50 percent. At 15.6 percent and 15.5 percent respectively, Asian (non-Hispanic) and Hispanic or Latinx households in Monterey are most likely to fall below 30 percent of AMI. Households that identify as White (non-Hispanic) and Other or Multiple Races (non-Hispanic) have the lowest prevalence of extremely lowincome households at 7 percent and 0 percent respectively.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 115, Packet Page 238 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-9
Racial/Ethnic Group
0%-30% of
AMI
31%-50% of
AMI
51%-80% of
AMI
81%-100% of
AMI
>100% of
AMI
American Indian or Alaska Native
(Non-Hispanic)

50.00% 0.00% 50.00% 0.00% 0.00%
Asian/API (Non-Hispanic) 15.56% 14.11% 8.17% 3.79% 58.37% Black or African American
(Hispanic and Non-Hispanic)

0.00% 8.97% 15.38% 12.82% 62.82%
White (Non-Hispanic) 6.89% 9.46% 15.71% 10.11% 57.83%
Other or Multiple Races (NonHispanic)

0.00% 0.00% 37.50% 0.00% 62.50%
Hispanic or Latinx 15.50% 16.97% 18.82% 13.65% 35.06%
All Households 8.55% 10.70% 15.56% 9.99% 55.20%
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2015-2019 release
According to ACS 2020 five-year estimates, the City has a poverty rate of 11.5 percent. This is lower than the poverty rate of 14.1 percent in Monterey County overall. Table B-12 displays the poverty status by race among Monterey residents. Poverty is highest among those who identify as American Indian or Alaska Native (69.5 percent), Other Race (50.1 percent), and Hispanic or Latinx (29.7 percent). Other Race includes any responses not included in the listed race categories. This may include individuals who provide write-in responses such as “mixed,” or “interracial.” Poverty is lowest among those who identify as White (both Hispanic and Non-Hispanic) or White (Non-Hispanic) at 7.2 percent and 6.2 percent, respectively.

Racial/Ethnic Group Percent Below Federal Poverty Line
American Indian or Alaska Native (Hispanic and Non-Hispanic) 69.5% Native Hawaiian and Other Pacific Islander (Hispanic and non-Hispanic) 0.0% Asian (Hispanic and Non-Hispanic) 16.9%
Black or African American (Hispanic and Non-Hispanic) 13.8% White (Hispanic and Non-Hispanic) 7.2%
White (Non-Hispanic) 6.2%
Other Race (Hispanic and Non-Hispanic) 50.1%
Multiple Races (Hispanic and Non-Hispanic) 12.7%
Hispanic or Latinx 29.7%
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2016-2020), Table S1701

OLDER ADULTS
Older adults (elderly residents) have many different housing needs, depending on their age, level of income, current tenure status, cultural background, and health status. Elderly households may need assistance with personal and financial affairs, networks of care to provide services and daily assistance, and even possible architectural design features that would accommodate disabilities that would help ensure continued independent living. Table B-13 shows the distribution of Monterey residents aged 65 and over by racial group compared to the population of other age groups. The majority of those aged 65 and over in Monterey Table B-11: Household Income Distribution by Race (City of Monterey) Table B-12: Poverty Status by Race (City of Monterey)
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 116, Packet Page 239 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-10
identify as White (90 percent), followed by Asian (5.2 percent), and Multiple Races (3 percent). In Monterey, the proportion of those 65 and older who are White is greater than it is among younger age groups. In contrast, the proportion of younger residents who identify as Asian, Black or African American, Multiple Racesis greater. In the sources for this table, the Census Bureau does not disaggregate racial groups by Hispanic/Latinx ethnicity.

Age 0-17 Age 18-64 Age 65+
Race Number Percent Number Percent Number Percent
American Indian or Alaska
Native (Hispanic and NonHispanic)
125 2.9% 128 0.7% 23 0.4%
Native Hawaiian and Other
Pacific Islander (Hispanic and
Non-Hispanic)
0 0.0% 102 0.6% 0 0.0%
Asian (Hispanic and NonHispanic)
246 5.8% 1,106 6.0% 272 5.2%
Black or African American
(Hispanic and Non-Hispanic)
150 3.5% 861 4.7% 55 1.0%
Multiple Races (Hispanic and
Non-Hispanic)
578 13.6% 1,210 6.6% 156 3.0%
Other Race (Hispanic and NonHispanic)
303 7.1% 632 3.5% 22 0.4%
White (Hispanic and NonHispanic)
2,851 67.0% 14,250 77.9% 4,752 90.0%
Total 4,253 100.00% 18,289 100.00% 5,280 100.0%
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2016-2020), Table B01001(A-G) A specific governmental response may be required to address the housing needs of older adults due to low incomes. As seen in Table B-14, according to the U.S. Department of Housing and Urban Development (HUD) Comprehensive Housing Affordability Strategy (CHAS), 12.2 percent of households with at least one older adult aged 62 and over have an income below 30 percent of AMI, which is higher than the rate of

7.8 percent found among the overall population of the city. As they age, older adults may face additional housing costs to maintain their homes and ensure they remain accessible, a situation exacerbated by the fact that many older adults live on fixed incomes. Like all lower income residents, many older adult residents may be facing overpayment problems or are unable to find affordable rental units at all. As seen in Table B14, senior renters are much more likely to fall into the extremely low-income (zero to 30 percent of AMI) or very low-income (31 to 50 percent of AMI) categories than seniors who own their homes. Among renters with at least one older adult aged 62 and over in the household, 21 percent are considered extremely lowincome. Table B-15 further demonstrates cost-burden experienced by senior households. Approximately 70 percent of senior households making below 30 percent of AMI spend more than 50 percent on their income, while approximately 79 senior households making more than 100 percent of AMI spend less than 30 percent of their income on housing costs.

Table B-13: Senior and Youth Population by Race (City of Monterey) Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 117, Packet Page 240 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-11
Owner Occupied Renter Occupied All Senior Households
Income Group Number Percent Number Percent Number Percent 0%-30% of AMI 160 6.36% 345 21.04% 505 12.15%
31%-50% of AMI 290 11.53% 320 19.51% 610 14.68%
51%-80% of AMI 300 11.93% 295 17.99% 595 14.32%
81%-100% of AMI 180 7.16% 185 11.28% 365 8.78%
Greater than 100%
of AMI
1,585 63.02% 495 30.18% 2080 50.06%
Total 2,515 100.00% 1,640 100.00% 4,155 100.00%
Notes:

1. For the purposes of this table, HUD considers senior households to be those with a householder who is aged 62 or older.

Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2015-2019 release
% of Income Used for Housing Costs 0%-30% of
AMI
31%-50% of
AMI
51%-80% of
AMI
81%-100% of
AMI
>100% of
AMI
<30% of Income 16.84% 9.02% 24.37% 63.51% 78.95%
30%-50% of Income 12.63% 38.52% 44.54% 27.03% 17.70%
>50% of Income 70.53% 52.46% 31.09% 9.46% 3.35%
Total 100% 100% 100% 100% 100%
Notes:

1. For the purposes of this table, HUD considers senior households to be those with a householder who is aged 62 or older.

Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2015-2019 release
Other potential older adult housing needs that may require a specific governmental response include:
• Assisted living facilities. Assisted living facilities provide elderly residents with the opportunity to maintain an independent housing unit while receiving needed medical services and social support.

Congregate care facilities include housing with medical and health services. • Relocation assistance. Some elderly residents need assistance in relocating to a dwelling that better suits their space and income needs.
• Mobility impairment. Mobility-impaired elderly residents requiring special accessibility features in their dwelling units. Mobility impairment may require that special accessibility features be included in the design and construction of a home. Mobility impairment can also create a need for a living arrangement that includes health, meals, cleaning, and/or other services as part of the housing package. A number of living arrangements are possible, from senior citizen developments with individual dwelling units to assisted living facilities to 24-hour support services. Table B-16 shows the prevalence of different types of disabilities among seniors over age 65 in Monterey. The most prevalent type of disability is ambulatory difficulty, experienced by 15.5 percent of Monterey seniors, followed by hearing difficulty at 13.8 percent. An ambulatory difficulty refers to a mobility impairment that causes significant difficulty walking or climbing stairs.

Table B-14: Senior Households1 by Income and Tenure (City of Monterey) Table B-15: Cost-Burdened Senior Households1 by Income Level (City of Monterey) Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 118, Packet Page 241 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-12
Disability Number of Civilian NonInstitutionalized Seniors (65+) Percentage of Civilian NonInstitutionalized Seniors (65+) With an ambulatory difficulty 802 15.5%
With an independent living difficulty 471 9.1%
With a cognitive difficulty 304 5.9%
With a self-care difficulty 321 6.2%
With a hearing difficulty 714 13.8%
With a vision difficulty 175 3.4%
Notes:

1. Percentages reflect values out of the civilian, noninstitutionalized population which is defined as people 16 and older residing in the 50 states and the District of Columbia, who are not inmates of institutions (e.g., penal and mental facilities, homes for the aged), and who are not on active duty in the Armed Forces

2. Ambulatory difficulty refers to having serious difficulty walking or climbing stairs.

3. Independent living difficulty refers to having difficulty doing errands alone due to a physical, mental, or emotional problem.

4. Hearing difficulty refers to those who are deaf or have serious difficulty hearing.

5. Self-care difficulty refers to having difficulty bathing or dressing.

6. Cognitive difficulty refers to having difficulty remembering, concentrating or making decisions due to a physical, mental, or emotional problem.

7. Vision difficulty refers to those who are blind or have serious difficulty seeing.

Source: U.S. Census Bureau, American Community Survey 5-Year Data (2016-2020), Table S1810

PERSONS WITH DISABILITIES
Persons with disabilities have physical or mental impairments that require special housing designed for selfsufficiency. According to 2019 American Community Survey estimates, 4,543 persons (19 percent of the non-institutionalized population) in the City had a disability.

Disability can further be broken down into six categories. The Census Bureau provides the following definitions for these disability types:
• Hearing difficulty: deaf or has serious difficulty hearing. • Vision difficulty: blind or has serious difficulty seeing even with glasses. • Cognitive difficulty: has serious difficulty concentrating, remembering, or making decisions. • Ambulatory difficulty: has serious difficulty walking or climbing stairs. • Self-care difficulty: has difficulty dressing or bathing. • Independent living difficulty: has difficulty doing errands alone such as visiting a doctor’s office or shopping.

These disability types are counted separately and are not mutually exclusive, as an individual may report more than one disability; thus, these counts should not be summed. Table B-17 provides a breakdown of Monterey’s population by disability type. The most prevalent disability was ambulatory difficulty at 4.8 percent.

Table B-16: Seniors (Age 65 and Over) by Type of Disability (City of Monterey) Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 119, Packet Page 242 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-13
Disability Number of Non-Institutionalized
Civilians
Percentage of the Civilian NonInstitutionalized Population With an ambulatory difficulty 1,156 4.8%
With an independent living difficulty 630 2.6%
With a cognitive difficulty 878 3.6%
With a self-care difficulty 558 2.3%
With a hearing difficulty 984 4.1%
With a vision difficulty 336 1.4%
Notes:

2. Ambulatory difficulty refers to having serious difficulty walking or climbing stairs.

3. Independent living difficulty refers to having difficulty doing errands alone due to a physical, mental, or emotional problem.

4. Hearing difficulty refers to those who are deaf or have serious difficulty hearing.

5. Self-care difficulty refers to having difficulty bathing or dressing.

6. Cognitive difficulty refers to having difficulty remembering, concentrating or making decisions due to a physical, mental, or emotional problem.

7. Vision difficulty refers to those who are blind or have serious difficulty seeing.

Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019) Further, residents with disabilities may have more difficulty in finding employment. In Monterey, according to 2019 ACS estimates, approximately 1 percent of the civilian noninstitutionalized population 18 years to 64 years in the labor force with a disability were unemployed. The census considers individuals to not be in the labor force if they are not employed and are either not available to take a job or are not looking for one. This category typically includes discouraged workers, students, retired workers, stay-athome parents, and seasonal workers in and off season who are not looking for work.

Given the barriers faced by persons with disabilities, the provision of affordable and barrier-free housing is essential to meet their housing needs. There are two approaches to housing design for residents with disabilities: adaptability and accessibility. Adaptable housing is a design concept in which a dwelling unit contains design features that allow for accessibility and use by mobility-impaired individuals with only minor modifications. An accessible unit has the actual special features installed in the house (grab bars, special cabinetry). To address these needs, the State requires design or accessibility modifications, such as access ramps, wider doorways, assist bars in bathrooms, lower cabinets, elevators, and the acceptance of service animals.

Development Disabilities
Since January 2011, per SB 812 as codified in Section 65583, housing elements are required to address the housing needs of individuals with a developmental disability within the community. The analysis must include an estimate of the number of persons with developmental disabilities, an assessment of the housing need, and a discussion of potential resources. According to Section 4512 of the Welfare and Institutions Code a "developmental disability" means a disability that originates before an individual attains age 18 years, continues—or can be expected to continue—indefinitely, and constitutes a substantial disability for that individual, which includes intellectual disability, cerebral palsy, epilepsy, and autism. This term shall also include disabling conditions found to be closely related to intellectual disability or to require treatment Table B-17: Monterey Disability by Type
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 120, Packet Page 243 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-14
similar to that required for individuals with an intellectual disability, but shall not include other disabling conditions that are solely physical in nature.

Many developmentally disabled persons can live and work independently within a conventional housing environment. More severely disabled individuals require a group living environment where supervision is provided. The most severely affected individuals may require an institutional environment where medical attention and physical therapy are provided. Because developmental disabilities exist before adulthood, the first issue in supportive housing for the developmentally disabled is the transition from the person’s living situation as a child to an appropriate level of independence as an adult.

The California Department of Developmental Services (DDS) is responsible for overseeing the coordination and delivery of services to more than 330,000 Californians with developmental disabilities including cerebral palsy, intellectual disability, Down Syndrome, autism, epilepsy, and related conditions through a network of 21 regional centers and state-operated facilities.

DDS consumer data provides an estimate of the number of Monterey residents with a developmental disability. Table B-18 shows that the vast majority of residents with a developmental disability (63 percent) live in the home of a parent/family/guardian. Further, approximately 98 percent (2,267) of the population that has a developmental disability is over the age of 18, while the remaining 2 percent (48 persons) is under 18 years old, according to American Community Survey Table S1810.

Residence Type Number Approximate Percent
Home of Parent/Family/Guardian 77 62.60%
Community Care Facility >0 0.00%
Independent/Supported Living 35 28.46%
Intermediate Care Facility >0 0.00%
Foster/Family Home >0 0.00%
Other <11 8.94%
Total 123 100%

1. The California Department of Developmental Services provides ZIP code level counts. To get jurisdiction-level estimates, ZIP code counts were crosswalked to jurisdictions using census block population counts from Census 2010 SF1 to determine the share of a ZIP code to assign to a given jurisdiction. Independent living difficulty refers to having difficulty doing errands alone due to a physical, mental, or emotional problem.

Source: California Department of Developmental Services, Consumer Count by California ZIP Code and Residence Type, 2022

FEMALE-HEADED HOUSEHOLDS
Female-headed families, including those with children, are identified as a special needs group, because they are more likely to be low-income and face difficulty in finding affordable housing. In Monterey, marriedcouple family, owner-occupied households are the predominant household type comprising 54.5 percent of the population, with renter-occupied householders living alone coming in with the second largest amount (34.4 percent). As shown in Table B-19 there are 246 female-headed households and 45 maleheaded owner-occupied households in the City of Monterey. These groups constitute 2.0 percent and 1 percent, respectively, of the City’s total number of households. Female-headed households represented about 5.8 percent and 0.3 percent of owner-occupied and renter-occupied households, respectively. As Table B-18: Monterey Population with Developmental Disabilities by Residence1 Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 121, Packet Page 244 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-15
shown in Table B-20, approximately 28 percent of female-headed households have children. About 64 female-headed households with or without children are at or below the federal poverty level.

Owner-Occupied Renter-Occupied
Housing Type Number Percent Number Percent
Married-Couple Family
Households
2,310 54.49% 2,409 29.62%
Householders Living Alone 1,456 34.35% 3,613 44.42%
Female-Headed Family Households 246 5.80% 479 5.89%
Male-Headed Family Households 45 1.06% 312 3.84%
Other Non-Family Households 182 4.29% 1,321 16.24%
Total 4,239 100.00% 8,134 100%
Notes

1. For data from the Census Bureau, a “family household” is a household where two or more people are related by birth, marriage, or adoption. “Non-family households” are households of one person living alone, as well as households where none of the people are related to each other.

Source: U.S. Census Bureau, American Community Survey 5-Year Data (2016-2020), Table B25011 Households With Children Households Without Children
Poverty Level Number Percent Number Percent
Above Poverty Level 170 23.5% 491 67.7%
Below Poverty Level 28 3.9% 36 5.0%
Notes

1. The Census Bureau uses a federally defined poverty threshold that remains constant throughout the country and does not correspond to Area Median Income.

2. Percentages represent the value of total-female headed family households Source: U.S. Census Bureau, American Community Survey 5-Year Data (2016-2020), Table B17012

LARGE HOUSEHOLDS
Large families, defined as households of five or more related individuals, are a special need category under State law because they are at higher risk for overcrowding if the jurisdiction’s housing stock doesn’t have sufficient larger units with an adequate number of bedrooms. Additionally, in communities throughout California many large families, particularly renters, often do not have sufficient income to afford larger homes or apartments.

In Monterey, most of the households (77 percent) are occupied by one or two people. As shown in Table B-21, the 2019 American Community Survey reported 504 large households with five or more members, including 109 owner-occupied households and 395 renter-occupied households. About 2.6 percent of owner-occupied households and 4.9 percent of renter-occupied households were considered large households. As shown in Table B-22, large households experience slightly greater severe cost burden with 81 percent of large households compared to 79 percent of all other household types.

Table B-19: Monterey Household Type by Tenure
Table B-20 Monterey Female-Headed Households by Poverty Status1 Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 122, Packet Page 245 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-16
Owner-Occupied Renter-Occupied
Housing Type Number Percent Number Percent
1 Person Household 1,456 34.35% 3,613 44.42%
2 Person Household 1,954 46.10% 2,505 30.80%
3 Person Household 399 9.41% 786 9.66%
4 Person Household 321 7.57% 835 10.27%
5 Or More Person Household 109 2.57% 395 4.86%
Total 4,239 100% 8,134 100%
Source: AMBAG Monterey Data Package, U.S. Census Bureau, American Community Survey 5-Year Data (2016-2020), Table B25009 Table B-22: Monterey Cost Burden by Household Size
Large Family (5+ Persons) All Other Household Types
Income Category Number Percent Number Percent
No Cost Burden 65 14.48% 1,190 10.28%
Cost Burden 20 4.45% 1,245 10.75%
Severe Cost Burden 364 81.07% 9,145 78.97%
Total 449 100% 11,580 100%
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2015-2019 release
In comparison to surrounding jurisdictions, Monterey has a much smaller proportion of large family households. Chart B-2 shows that about 4 percent of households in the City are considered large households, while 19.7 percent in Monterey County are considered large households. Of the large families in Monterey, approximately 19 percent are considered extremely low- or very low-income households (i.e., households below 50 percent HAMFI). This is slightly lower than the proportion for all other household types at approximately 20 percent (see Chart B-3). Monterey also has a greater share of lowincome households of larger families at 15.6 percent relative to all other household types at 15.1 percent.

Table B-21: Monterey Household Size by Tenure
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 123, Packet Page 246 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-17
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2016-2020), S2501 Note: HAMFI is the median family income calculated by HUD for each jurisdiction in order to determine Fair Market Rents (FMRs) and income limits for HUD programs.

Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2015-2019 release
Chart B-2: Households by Household Size in Monterey and Surrounding Areas Chart B-3: Monterey Household Size by Household Income Level Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 124, Packet Page 247 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-18

PERSONS EXPERIENCING HOMELESSNESS
Individuals and families who are homeless have perhaps the most immediate housing need of any group.

They also have one of the most difficult sets of housing needs to meet, due to both the diversity and complexity of the factors that lead to homelessness, and to community opposition to the siting of housing that serves homeless clients. Homelessness is a countywide issue that demands a strategic, regional approach that pools resources and services. A common method to assess the number of homeless persons in a jurisdiction is through a Point-in-Time (PIT) Count. The PIT Count is a biennial census of sheltered and unsheltered persons in a Continuum of Care (CoC) completed over a 24-hour period in the last ten days of January. The unsheltered PIT Count is conducted annually in Monterey County and is a requirement to receive homeless assistance funding from HUD. The PIT Count does not function as a comprehensive analysis and should be considered in the context of other key data sources when assessing the state of homelessness in a community.

According to the 2022 PIT Count, there were 779 sheltered homeless persons and 1,625 unsheltered persons in Salinas, Monterey, and San Benito Counties, including 8 homeless youth and children, for a total of 2,404 homeless persons.

Shelter Status
People in Households
Composed Solely of
Children Under 18
People in
Households
with Adults
and Children
People in
Households
without Children
Under 18 Total
Sheltered - Emergency Shelter 0 202 298 500
Sheltered - Transitional Housing 0 195 84 279
Unsheltered 3 11 1,611 1,625
Source: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations Reports, 2022
Monterey County also partnered with Applied Survey Research (ASR) to produce a Homeless Count and Survey Comprehensive Report for PIT data specific to Monterey County and jurisdictions within the County. As shown in Chart B-4, the total population of unhoused individuals in both Monterey County and the City of Monterey has decreased significantly over the past 5 years. The number of people experiencing homelessness in Monterey County reached 2,837 individuals in 2017 and decreased 27.8 percent to 2,047 individuals in 2022. The report also notes that number of people experiencing homelessness in the County is at its lowest value in 13 years (since 2009). In addition, the City of Monterey has seen a 70 percent decrease in homelessness between 2017 and 2022 from 338 to 101 individuals. New shelters in Seaside and Salinas as well as homeless services such as Project Room Key, Project Home Key, Gathering for Women, Community Human Services Safe Place, the Shuman HeartHouse shelter, and the City’s Community Development Block Grant funded public services provide a variety of resources to help alleviate homelessness in Monterey.

Table B-23: Homelessness by Household Type and Shelter Status in Salinas/Monterey and San Benito Counties
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 125, Packet Page 248 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-19
Source: ASR, 2022 Monterey County Homeless Count and Survey Comprehensive Report The racial/ethnic breakdown of Salinas/Monterey and San Benito County’s homeless population is shown in Table B-24. Notably, those who identify as White (Hispanic and non-Hispanic) represent the largest share of the unhoused population (59 percent) of the county, while Hispanic/Latinx comprise the second largest group (56 percent). Additionally, those identify as Black or African American (Hispanic or NonHispanic) represented disproportionately among the unhoused population as they make up 13 percent of the homeless Monterey County residents, but only 2.6 percent of its overall population.

Per HCD's requirements, jurisdictions also need to supplement county-level data with local estimates of people experiencing homelessness. According to the California Department of Education, in Monterey County there were 6,764 reported K-12 students experiencing homelessness in the 2017-2018 school year.1 By comparison, Monterey County has seen a 7.3 percent increase in the population of K-12 students experiencing homelessness since the 2016-17 school year (6,271 students in the 2016-17 school year). 1 California Department of Education, California Longitudinal Pupil Achievement Data System (CALPADS), Cumulative Enrollment Data (Academic Years 2016-2017, 2017-2018, 2018-2019, 2019-2020) Chart B-4: Homelessness in Monterey City and County (2017-2022) Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 126, Packet Page 249 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-20
Racial/Ethnic Group Number of Homeless Population Percent of Homeless Population American Indian or Alaska Native
(Hispanic and Non-Hispanic)
308 12.81%
Native Hawaiian or Other Pacific
Islander (Hispanic and Non-Hispanic)
65 2.70%
Asian (Hispanic and Non-Hispanic) 111 4.61%
Black or African American (Hispanic
and Non-Hispanic)
310 12.90%
White (Hispanic and Non-Hispanic) 1,417 58.94%
Multiple Races (Hispanic and NonHispanic)
193 8.03%
Hispanic/Latino 1,348 56.07%
Source: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations Reports, 2022

FARMWORKERS
Across the state, housing for farmworkers has long been recognized as an important and unique concern.

Farmworkers generally receive wages that are considerably lower than other jobs and may have temporary housing needs. Finding decent and affordable housing can be challenging, particularly in the current housing market. According to the U.S. Department of Agriculture Census of Farmworkers, the number of permanent and seasonal farm workers in Monterey County has both increased and decreased respectively from 2002 to 2017 (Chart B-5). From 2012 to 2017, the permanent farm worker population has decreased, totaling 14,806 in 2017; while the number of seasonal farm workers has also decreased during this time period, totaling 12,123 in 2017. As shown on Table B-8, there are currently 281 people employed in Agriculture an Resources in Monterey, which is 2.1 percent of City versus 15.9 percent of Monterey County Farmworkers are predominantly housed in the Salinas Valley near the agricultural fields, which explains the large number of farmworkers in Monterey County.

Table B-24: Racial/Ethnic Group Share of General and Homeless Population in Salinas/Monterey and San Benito Counties
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 127, Packet Page 250 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-21
Source: U.S. Department of Agriculture, Census of Farmworkers (2002, 2007, 2012, 2017), Table 7: Hired Farm Labor

STUDENTS
The City of Monterey has a sizeable student population, with a substantial portion of these students being associated with the military. The city has four advanced education institutions, as seen in Table B-25. Much of the student population in the city are those that attend Monterey Peninsula College (MPC), though this number also includes students that attend the Marina and Seaside MPC locations. MPC does not provide any on-campus housing, nor college-managed housing. For students attending the Naval Post Graduate School (NPS) and Army Defense Language Institute (DLI), the military provides a basic allowance for housing to live either on or off base. On-base housing is provided for both families and single persons.

Family housing is provided at La Mesa Village in the City of Monterey and at the Presidio of Monterey.

Housing for single persons is located on the Naval Post Graduate School campus in downtown Monterey and at the Presidio. The Middlebury Institute provides housing at one location, 787 Munras Avenue, which houses 87 students.

Table B-25: Students at Education Institutions in Monterey Education Institution Number
U.S. Naval Post Graduate School 1,446
U.S. Army Defense Language Institute/Foreign Language Center 2,500 Middlebury Institute of International Studies 686
Monterey Peninsula College (Monterey, Marina, and Seaside Campuses) 12,944 Total 17,576
Source: Naval Postgraduate School, 2022, Middlebury Institute of International Studies, 2022, Defense Language Institute Foreign Language Center, 2022, Monterey Peninsula College, 2019 Chart B-5: Farm Labor in Monterey County, 2002-2017
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 128, Packet Page 251 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-22

MILITARY EMPLOYEES AND VETERANS
Monterey is home to the United States Naval Postgraduate School (NPS) and the United States Army Garrison Defense Language Institute (DLI), also known as the Presidio of Monterey. As a result, there is a large population of service members living in Monterey that are associated with DLI and NPS.

The Parks at Monterey encompasses family housing communities for the Presidio of Monterey and the Naval Postgraduate School. With locations at the Ord Military Community on the former Fort Ord and La Mesa Village in Monterey, the development consists of 2,580 housing units with various amenities. The community serves the 4,000-plus population of service members and their families assigned to DLI and NPS.

GROUP QUARTERS POPULATIONS
Group quarters are places where people live or stay in a group living arrangement that are owned or managed by an organization providing housing and/or services for the residents. These services may include custodial or medical care as well as other types of assistance. Residency is commonly restricted to those receiving these services, and residents are usually not related to one another. Institutional group quarters include correctional facilities, nursing homes, or mental hospitals. Non-institutional group quarters include college dormitories, military barracks, group homes, missions, or shelters.

The largest group quarter population in Monterey are those living in military quarters, coming in at 82 percent, as seen in Table B-26. Other noninstitutional facilities, such as group homes, missions, and shelters, make up 9 percent of Monterey’s group quarters populations.

Population Type Number Percentage
Institutionalized population 394 9.0%
Correctional facilities for adults 0 0.0%
Juvenile facilities 0 0.0%
Nursing facilities/Skilled-nursing
facilities
280 6.4%
Other institutional facilities 114 2.6%
Noninstitutionalized
population
3,970 91.0%
College/University student
housing1
0 0.0%
Military quarters 3,580 82.0%
Other noninstitutional facilities 390 8.9%
Total 4,364 100.0%
Note:

1. The total for college/university student housing does not include 87 beds that were constructed for Middlebury in 2021.

Source U.S. Census Bureau, American Community Survey 5-Year Data (2016-2020), Table P5 Table B-26: Monterey Group Quarters by Type, 2020
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 129, Packet Page 252 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-23
Housing Stock Characteristics

HOUSING TYPE
During the 2010 to 2020 period, the city saw development of only 394 units – or 3.3 percent - due in large part to limits on housing production linked to the availability of water supply. The State of California has issued a Cease-and-Desist Order for any new water hookups or increased water use. Over the period, per ACS estimates shown in Table B-27, the number of multifamily housing (two to four units), increased by 13 percent and the number of attached single-family homes increased by 21 percent. The data reflects there was a substantial decrease in the number of mobile homes in the city during this period. However, based on local knowledge, the City does believe there are no mobile home parks in Monterey as of 2023.2 Because ACS data is survey-based, data may not always accurately reflect values as they are on the ground. 2010 2020 Percent Change (2010 –
Building Type Number Percent Number Percent 2020)
Single-Family Home:

Attached 681 5.68% 824 6.66% 21.00%
Single-Family Home:

Detached 5,279 44.07% 5490 44.37% 4.00%
Multifamily Housing:

Two to Four Units 2,204 18.40% 2,490 20.12% 13.00
Multifamily Housing:

Five-plus Units 3,776 31.52% 3,560 28.77% -5.72%
Mobile Homes 39 0.33% 9 0.07% -76.92%
Total 11,979 100% 12,373 100% -
Note:

1. U.S. Census data, listed in this table, shows a decrease in five-plus multifamily housing units between 2010 and 2020, which conflicts with trends in the California Department of Finance (DOF) data. The City does not believe there was a decrease in five-plus multifamily housing units over this period; therefore, both DOF and U.S. Census data are referenced in this Draft Housing Element.

Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019)

HOUSING TENUREFF
Tenure refers to whether a house is rented or owned. The rate of homeownership in the City is substantially lower and the rate of renting is substantially higher than in Monterey County. In the city, the number of owner-occupied housing units decreased from 4,853 in 2000 to 4,239 in 2020. The number of renteroccupied housing units decreased from 7,747 in 2000 to 7,635 in 2010 but has since increased to 8,134 in 2020. The percentage of renter-occupied households in the city increased modestly from 61.5 percent to

65.7 percent between 2000 and 2020, while the percentage of owner-occupied households has decreased modestly from 38.5 percent in 2000 to 34.3 percent in 2020. 2 Source: Kimberly Cole, Community Development Director, City of Monterey, 2023.

Table B-27: Monterey Housing Type Trends, 2010 – 2020
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 130, Packet Page 253 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-24
Source: U.S. Census Bureau, Census 2000 SF1, Table H04; U.S. Census Bureau, Census 2010 SF1, Table H04; U.S. Census Bureau, American Community Survey 5-Year Data (2016-2020), Table B25003 The City’s household tenure differs from patterns seen in the county, see Table B-28. Monterey County has higher rates of owner-occupied housing (51.8 percent) than Monterey does (34.3 percent).

Owner-Occupied Renter-Occupied
Region Number Percent Number Percent
Monterey 4,239 34.26% 8,134 65.74%
Monterey County 66,346 51.83% 61,657 48.17%
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25003 The age of a resident—as well as the year the resident moved to the unit, race/ethnicity, household income, and housing type—can influence household tenure rates in a jurisdiction. Shown in Chart B-7, majority of younger residents (34 years and below) are renters in Monterey. While most residents above 60 years and above are owners, it should be noted that about 50.7 percent of those aged 85 years and over are renters.

This reflects a need for a variety of housing types for residents of all ages – including group homes and affordable rental as well as ownership units.

Chart B-6: Monterey Household Tenure, 2000-2020
Table B-28: Monterey and Surrounding Areas Household Tenure, 2020 Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 131, Packet Page 254 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-25
Chart B-7: Monterey Housing Tenure by Age, 2020
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2016-2020), Table B25007 Ownership rates also change depending on the year the resident has moved into their current residence.

Shown in Chart B-8, most residents who have moved to their current residence since 2010 are considered renters, with an increasing share over time. Residents who have lived in their housing units for a longer period (i.e., since 1989) are overwhelming owners. While the trend towards increasing shares of renters started in 2010, it likely that the 2008 financial crisis exacerbated the trend considering the leap from 40.6 percent renters among those who moved in between 2000 to 2009 to 69.3 percent renters among those who moved in between 2010 to 2014.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 132, Packet Page 255 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-26
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2016-2020), Table B25038 As shown in Table B-29, both White (Non-Hispanic and Hispanic) and Asian racial/ethnic groups have comparable percentages of owner-occupied households, coming at 39.6, 38.4, and 37.7 percent, respectively.

Black or African American and Hispanic or Latinx also have comparable percentages of owner-occupied households, coming in at 17.3 and 15.9 percentages, which is nearly half less than White and Asian households. Households considered to be American Indian or Alaska Native, Native Hawaiian and Other Pacific Islander, and Other Race (Hispanic and Non-Hispanic) are largely renter-occupied.

Chart B-8: Monterey Housing Tenure by Year Moved to Current Residence Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 133, Packet Page 256 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-27
Owner-Occupied Renter-Occupied
Racial/Ethnic Group1 Number Percent Number Percent Total American Indian or Alaska Native
(Hispanic and Non-Hispanic)
0 0.00% 92 100.00% 92
Native Hawaiian and Other Pacific
Islander (Hispanic and Non-Hispanic)
0 0.00% 94 100.00% 94
Asian (Hispanic and Non-Hispanic) 288 37.70% 476 62.30% 764 Black or African American (Hispanic
and Non-Hispanic)
75 17.32% 358 82.68% 433
Hispanic or Latinx 259 15.92% 1,368 84.08% 1,627
Other Race (Hispanic and NonHispanic)
17 2.81% 587 97.19% 604
Multiple Races (Hispanic and NonHispanic)
114 17.73% 529 82.27% 643
White (Hispanic and Non-Hispanic) 3,745 38.44% 5,998 61.56% 9,743 White, Non-Hispanic 3,520 39.59% 5372 60.41% 8,892
Notes

1. For this table, the Census Bureau does not disaggregate racial groups by Hispanic/Latinx ethnicity.

However, data for the white racial group is also reported for white householders who are not Hispanic/Latinx. Since residents who identify as white and Hispanic/Latinx may have very different experiences within the housing market and the economy from those who identify as white and nonHispanic/Latinx, data for multiple white sub-groups are reported here.

The racial/ethnic groups reported in this table are not all mutually exclusive. Therefore, the data should not be summed as the sum exceeds the total number of occupied housing units for this jurisdiction.

However, all groups labelled “Hispanic and Non-Hispanic” are mutually exclusive, and the sum of the data for these groups is equivalent to the total number of occupied housing units.

Source: U.S. Census Bureau, American Community Survey 5-Year Data (2016-2020), Table B25003(A-I) Disparities in tenure are also apparent across different income levels, as might be expected. As ownership is typically more costly than renting, lower-income households are often renters. In Monterey, most lowerincome households—those making less than 80 percent of AMI—are renters, while the majority of households making above 100 percent of AMI are owners. See Table B-30 for the complete breakdown by income group. This indicates that homeownership is likely out of reach for many lower-income households.

About 44.7 percent of households in Monterey make less than 100 percent of AMI, while majority of households (55.3 percent) make above 100 percent of AMI. Considering the racial/ethnic share of renters in Monterey, especially among Black or African American and Hispanic or Latinx households, this highlights a need to target both economic as well as racial/ethnic disparities to affirmatively further fair housing, which will be further discussed in a separate report.

Table B-29: Monterey Housing Tenure by Race/Ethnicity, 2020 Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 134, Packet Page 257 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-28
Owner-Occupied Renter-Occupied
Income Group1 Number Percent Number Percent
0%-30% of AMI 230 5.11% 865 11.74%
31%-50% of AMI 325 7.22% 930 12.62%
51%-80% of AMI 470 10.44% 1,330 18.05%
81%-100% of AMI 350 7.78% 810 10.99%
Greater than 100% of AMI 3,125 69.44% 3,435 46.61%
Total 4,500 100% 7,370 100%
Note:

1. Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas. The AMI levels in this table are based on the HUD metro area where this jurisdiction is located.

Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2015-2019 release
Rates of homeownership also typically depend on the type of housing available. Most detached single-family homes are owner-occupied, see Table B-31. However, a significant share of these units—about 37.4 percent—are renter-occupied. Further, about 66 percent of attached single-family homes are occupied by renters. Majority (91.5 percent) of Monterey’s multifamily housing stock is renter-occupied. As mentioned above, as of 2023, there are no mobile home parks in Monterey.

Owner-Occupied Renter-Occupied
Housing Type Number Percent Number Percent Total
Detached Single-Family Homes 3,434 62.6% 2,056 37.4% 5,490 Attached Single-Family Homes 280 34.0% 544 66.0% 824
Multi-Family Housing 516 8.5% 5,534 91.5% 6,050
Mobile Homes 9 100.0% 0 0.0% 9
Boat, RV, Van, or Other 0 0.0% 0 0.0% 0
Total 4,239 - 8,134 - 12,373
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table S2504

HOUSING VACANCY
Housing vacancy rates provide one metric to assess the balance between the supply and demand of housing in a region. Low vacancy rates occur when demand outpaces the supply of housing, while high vacancy rates indicate an oversupply of housing. Housing costs also tend to be higher with low vacancy rates. Estimates from the 2016-2020 indicate that 1,242 (9.2 percent) out of the 13,615 housing units in the city were vacant, which is lower than in the county (9.8 percent), as shown in Table B-32.

Table B-30: Monterey Housing Tenure by Income Level, 2019 Table B-31: Monterey Housing Tenure by Housing Type, 2020 Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 135, Packet Page 258 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-29
Monterey Monterey County
Vacancy Status Number Percent Number Percent
For Rent 287 23.11% 2308 16.60%
For Sale 0 0.00% 679 4.88%
For Seasonal, Recreational, Or
Occasional Use 714 57.49% 6666 47.93%
Other Vacant 149 12.00% 3264 23.47%
Rented, Not Occupied 92 7.41% 425 3.06%
For migrant workers 0 0.00% 63 0.45%
Sold, Not Occupied 0 0.00% 502 3.61%
Total Vacant Housing Units 1,242 9.12% 13,907 9.79%
Total Housing Units 13,615 141,910
Source: American Community Survey 5-Year Data (2016-2020), Table B25004

AGE OF HOUSING STOCK
The condition of the housing stock, including the age of buildings and units that may be in substandard condition, is also an important consideration in a community’s housing needs. In Monterey, about 72.9 percent of the housing stock was constructed prior to 1980 and is over 40 years old. About 7.3 percent of the housing stock has been constructed since 2000, with only 2.9 percent constructed since 2010. See Chart B-9 for the age of Monterey’s housing stock as of 2020. This decrease in housing production is the result of the Cease-and-Desist Order regarding water consumption issued October 20, 2009 Source: U.S. Census Bureau, American Community Survey 5-Year Data (2016-2020), Table B25034 Table B-32: Monterey Vacant Units by Type, 2020
Chart B-9: Age of Monterey Housing Stock, 2020
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 136, Packet Page 259 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-30
A high proportion of older buildings, especially those built more than 30 years ago, may indicate that substantial housing conditions may be an issue. Housing is considered substandard when physical conditions are determined to be below the minimum standards of living, as defined by Government Code Section 17920.3. A building is considered substandard if any of the following conditions exist:
• Inadequate sanitation
• Structural hazards
• Nuisances
• Faulty weather protection
• Fire, safety or health hazards
• Inadequate building materials
• Inadequate maintenance
• Inadequate exit facilities
• Hazardous wiring, plumbing or mechanical equipment
• Improper occupation for living, sleeping, cooking, or dining purposes • Inadequate structural resistance to horizontal forces • Any building not in compliance with Government Code Section 13143.2

UNITS IN NEED OF REPLACEMENT AND REHABILITATION
Any household living in substandard conditions is considered in need of assistance, even if they are not actively seeking alternative housing arrangements. Estimating the number of substandard units can be difficult, but the lack of certain infrastructure and utilities can often be an indicator of substandard conditions. According to the City’s 2015-2023 Housing Element, there are approximately 880 housing units experiencing serious deterioration, 2,140 in decline, and 4,830 will require maintenance, though not immediately urgent. As noted in Chart B-9, the portion of older housing units in Monterey, about 72.9 percent of the housing stock was constructed prior to 1980 and is over 40 years old. Approximately 75 percent of all units built before 1979 could potentially contain lead-based paint, which may pose a human health hazard.3
According to 2020 ACS, as shown in Table B-33 about 0.2 percent of owners lack complete kitchen facilities while 1 percent of renters do. Further, approximately 1.2 percent of owners lack complete plumbing facilities while 0 percent of renters do. In total, there are 49 occupied housing units with incomplete plumbing facilities and 91 units with incomplete kitchen facilities.

Owner Renter
Building Amenity Number Percent Number Percent
Incomplete Kitchen Facilities 8 0.2% 83 1.0%
Incomplete Plumbing Facilities 49 1.2% 0 0.0%
No telephone service available 0 0.0% 52 0.6%
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25053, Table B25043, Table B25049
3 Community Development Block Grant 2020-2024 Consolidated Plan & 2020-2021 Annual Action Plan, City of Monterey, 2020.

Table B-33: Monterey Substandard Housing Issues, 2020
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 137, Packet Page 260 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-31
Given that preservation costs are lower than replacement costs, the updated Housing Element should include programs aimed at facilitating preservation and rehabilitation to maintain affordability in addition to the City’s Housing Rehabilitation Program. Most residential structures begin to show signs of deterioration as they approach 30 years, and often begin to require rehabilitation work to their major components, such as roofing, siding, plumbing, and electrical systems.As shown in Chart B-8, in Monterey, about 72.9 percent of the housing stock was constructed prior to 1980 and is over 40 years old. This indicates that a focus on programs to assist with maintenance should be an important part of the housing approach in the city.

Housing Costs and Affordability
Several housing market characteristics, like high levels of cost burden or overcrowding, may indicate high housing costs and a lack of affordability within a community. This section summarizes housing costs in Monterey and assesses the extent to which housing is affordable for residents of the city.

HOUSING AFFORDABILITY AND HOUSEHOLD INCOME
Housing affordability can be estimated by comparing the cost of renting or owning a home in Monterey with the maximum affordable housing costs to households at different income levels. In evaluating affordability, the maximum affordable price refers to the maximum amount that could be afforded by households in the upper range of their respective income category. Households in the lower end of each category can afford less in comparison. The maximum affordable home and rental prices for residents of Monterey are shown in Table B-34. This table shows what type of household can afford what size and type of housing. The affordability of the city’s housing stock by tenure and income group is discussed below.

HCD has estimated the 2023 Monterey County AMI to be $100,400 which is an increase of 46.1 percent from the 2014 median income of $68,700.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 138, Packet Page 261 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-32

Affordable Payment2 Housing Costs Maximum Affordable
Price
Household Size AMI Limits1 Renter Owner

Utilities
Renter3
Owner
Taxes &
Insurance
Owner4 Renter Owner5
Extremely-Low-Income (<30% AMI)
1 Person (Studio) $25,300 $633 $633 $247 $247 $221 $386 $30,403 2 Person (1 Bedroom) $28,900 $723 $723 $265 $265 $253 $458 $37,720 3 Person (2 Bedroom) $32,500 $813 $813 $319 $319 $284 $494 $38,703 4 Person (3 Bedroom) $36,100 $903 $903 $405 $405 $316 $498 $33,539 5 Person (4 Bedroom) $39,000 $975 $975 $477 $477 $341 $498 $28,958 Very-Low-Income (31%-50% AMI)
1 Person (Studio) $42,150 $1,054 $1,054 $247 $247 $369 $807 $80,804 2 Person (1 Bedroom) $48,200 $1,205 $1,205 $265 $265 $422 $940 $95,544 3 Person (2 Bedroom) $54,200 $1,355 $1,355 $319 $319 $474 $1,036 $103,721 4 Person (3 Bedroom) $60,200 $1,505 $1,505 $405 $405 $527 $1,100 $105,750 5 Person (4 Bedroom) $65,050 $1,626 $1,626 $477 $477 $569 $1,149 $107,026 Low-Income (51%-80% AMI)
1 Person (Studio) $67,450 $1,686 $1,686 $247 $247 $590 $1,440 $156,704 2 Person (1 Bedroom) $77,100 $1,928 $1,928 $265 $265 $675 $1,663 $182,142 3 Person (2 Bedroom) $86,750 $2,169 $2,169 $319 $319 $759 $1,850 $201,248 4 Person (3 Bedroom) $96,350 $2,409 $2,409 $405 $405 $843 $2,004 $214,159 5 Person (4 Bedroom) $104,100 $2,603 $2,603 $477 $477 $911 $2,126 $224,012 Moderate-Income (81%-120% AMI)
1 Person (Studio) $85,350 $2,134 $2,489 $247 $247 $871 $1,887 $253,009 2 Person (1 Bedroom) $96,400 $2,410 $2,812 $265 $265 $984 $2,145 $288,231 3 Person (2 Bedroom) $108,450 $2,711 $3,163 $319 $319 $1,107 $2,393 $320,471 4 Person (3 Bedroom) $120,500 $3,013 $3,515 $405 $405 $1,230 $2,608 $346,747 5 Person (4 Bedroom) $130,150 $3,254 $3,796 $477 $477 $1,329 $2,777 $367,059

1. AMI limits based on 2023 HCD Income Limits, interest rate assumptions derived from 30-Year Fixed Rate Zillow estimates for California (as of September 15, 2022). Down payment derived from 2019 median down payment for first-time buyers per the National Association of Realtors Research Group Downpayment Expectations & Hurdles to Homeownership April 2020 report. The 2023 Monterey County AMI is $100,400.

2. Affordable monthly payment for renters and owners is assumed to be one-twelfth of 30% of median income applicable for the number of bedrooms. The exception is moderate-income owners, whose affordable payment is assumed to be is one-twelfth of 35% of median income applicable for the number of bedrooms as specified by HCD, pursuant to HSC 50052.5(b)(4)

3. Utilities are estimated according to the 2022 Monterey County Housing Authority Utility Allowance Schedule. Estimates are based on the combined average cost of gas and electric heating, cooking and water heating, as well as other electric, water, trash collection, sewer, air conditioning, refrigeration, and range/microwave across all unit types (i.e., elevator/high-rise/apartment/walk-up (multi-family), detached house/single-family dwelling, mobile/manufactured home, & row house/townhouse).

4. Taxes and insurance are assumed to be 35% of monthly affordable housing costs

5. Assumed 30-year amortization, 5.84% interest rate, 6.0% down payment and closing costs equal to 2% of the sale price.

Source: HCD State Income Limits, 2023; Monterey Housing Authority Utility Allowance Schedule, 2022; Zillow Mortgage Rates, September 2022; National Association of Realtors Research Group, Downpayment Expectations & Hurdles to Homeownership, April 2020; Dyett & Bhatia, 2022
Table B-34: City of Monterey Housing Affordability by Income Group Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 139, Packet Page 262 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-33

HOUSING MARKET COST TRENDS
Rental
In 2020, according to ACS estimates, the median contract rent in Monterey was $1,777. According to the Census, contract rent is the monthly rent agreed upon regardless of any furnishings, utilities or services that may be included. Data regarding contract rent excludes units for which no cash rent is paid. Table B-35 illustrates that rent in the City is substantially higher than the county during the same year. Rents in the City and the county were substantially increased between the 2010 and 2020 period, increasing by about

50.8 percent and 41.3 percent, respectively.

Jurisdiction
2010 Median
Contract Rent
2015 Median
Contract Rent
2020 Median
Contract Rent
Monterey $1,178 $1,402 $1,777
Monterey County $1,033 $1,147 $1,460
Notes

1. County and regional counts are weighted averages of jurisdiction median using rental unit counts from the relevant year.

Source: U.S. Census Bureau, American Community Survey 5-Year Data releases, starting with 2006-2010 through 2016-2020, B25058 The distribution of contract rent by region is provided by ACS. As demonstrated in Chart B-10, most (65.5 percent) renter-occupied units in the City have contract rents below $2,000. Similarly, majority of Monterey County (79.3 percent) also have contract rents below $2,000.

Source: U.S. Census Bureau, American Community Survey 5-Year Data (2016-2020), Table B25056 Table B-35: Monterey and Regional Area Rents1, 2010 – 2020 Chart B-10: Contract Rents for Renter-Occupied Units, 2020 Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 140, Packet Page 263 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-34
According to the gross rental estimates (i.e., including utilities and other costs) from Table B-35 above and monthly affordable payments presented in Table B-34, extremely-low-income households in Monterey would not be able to afford to rent an appropriately sized unit. However, larger extremely-low-income households could afford to a rent a unit with fewer bedrooms – for instance, a four-person household could afford to rent a two-bedroom unit. This mismatch may be one of the causes behind the city’s relatively high rate of overcrowding.All other income levels, including low- and very-low-income households, would be able to afford to rent an appropriately sized unit. Chart B-11 demonstrates this affordability gap for the typical extremely-lowincome household, which may require subsidies to ensure housing affordability.

Note: The typical household is a four-person, three-bedroom housing unit.

Source: IPUMS USA, 2015-2019 ACS; Dyett & Bhatia, 2021
Ownership Costs
Like many cities in the California, housing costs in Monterey have continued to rise over the last two decades. Home values are tracked using the Zillow Home Value Index (ZHVI), which is a smoothed, seasonally adjusted measure of the typical value for homes in the 35th to 65th percentile range. The regional ZHVI estimate is a household-weighted average of county-level ZHVI files, where household counts are yearly estimates from DOF’s E-5 series. As demonstrated in Chart B-12, home values in the City have followed the same upward trend as Monterey County, though home values in the City are 30 percent more on average than in the county. Home values have continuously risen in the city and county since 2012, reaching nearly $1,130,600 in Monterey by January 2022.

Chart B-11: Rental Affordability Gap for the Typical Household Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 141, Packet Page 264 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-35
In addition to the ZHVI, ACS provides estimates of home values for owner-occupied units. Shown in Chart B-13, this data confirms the similarity in home value across the region as indicated by the ZHVI. The ZHVI estimates the typical household is valued over $1,130,600, and the ACS similarly indicates that a quarter (about 25.5 percent) are valued at $1,000,000 or more. Given that housing costs have risen since the 2020 ACS, the 2022 ZHVI will be used to estimate housing value in the City of Monterey—although it should be noted that this may slightly overestimate housing cost.

Chart B-12: Monterey and Regional Area Zillow Home Value Index (ZHVI), 2001 – 2022 Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 142, Packet Page 265 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-36
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2016-2020), Table S2507 The ZHVI tracks a variety of types of owner-occupied housing units, including both single-family homes and condominiums. Table B-36 provides a breakdown of the ZHVI by housing type and size between 2011 and 2022. In total, housing value has increased by about 97.10 percent between 2011 and 2022. Threebedroom units in particular have seen a high increase in value by about 100.2 percent during the period. As of 2022, the highest value housing type in Monterey is a five-bedroom or greater housing unit at $2,271,239.

Jurisdiction January 2011 ZHVI January 2022 ZHVI Percent Change (2011-2022) Total 573,603 1,130,599 97.10%
Single-Family 614,174 1,206,846 96.50%
Condo 355,771 641,695 80.37%
1 Bedroom 314,377 590731 87.91%
2 Bedrooms 448,098 885,421 97.60%
3 Bedrooms 609,608 1,220,362 100.19%
4 Bedrooms 886,319 1,630,253 83.94%
5+ Bedrooms 1,342,300 2,271,239 69.21%
Source: Zillow Home Value Index, January 2011 and January 2022 Chart B-13: Monterey and Regional Area Owner-Occupied Unit Values, 2020 Table B-36: Monterey Zillow Home Value Index (ZHVI), 2011 – 2022 Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 143, Packet Page 266 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-37
Given the ZHVI estimates provided in Table B-36 and housing affordability levels from Table B-34, it is apparent that no lower-income household can afford a home at an appropriate size. Some larger households may be able to afford units that have fewer bedrooms, which would lead to overcrowding. For instance, a four-person low-income household would be able to afford a $198,159 unit, which would only be sufficient to purchase a one-bedroom unit per the ZHVI. Moderate-income households would also not be able to afford to purchase a home at the appropriate size. This demonstrates a serious affordability gap for all households in the city, as households generally would not be able to afford to buy a home without significant subsidy. Increased housing production for a range of housing types would also help to increase affordability, but this analysis shows that housing is generally only affordable to households making more than 100 percent of AMI. Chart B-14 visualizes the affordability gap for the typical household, which is defined as a four-person household living in a three-bedroom housing unit.

Note: The typical household is a four-person, three-bedroom housing unit Source: Zillow Home Value Index, December 31, 2020; Dyett & Bhatia, 2022 Chart B-14: Ownership Affordability Gap for the Typical Household Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 144, Packet Page 267 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-38

COST BURDEN
Cost burden, or overpayment, is defined as monthly shelter costs in excess of 30 percent of a household’s income. Severe cost burden is defined as paying over 50 percent of household income for shelter costs.

Shelter cost is defined as the monthly owner costs (mortgages, deed of trust, contracts to purchase or similar debts on the property and taxes, insurance on the property, and utilities) or the gross rent (contract rent plus the estimated monthly cost of utilities). HUD Comprehensive Housing Affordability Strategy (CHAS) data provides estimates of cost burden by tenure and income category. Estimates use the HUD Area Median Family Income (HAMFI) to determine overpayment. HAMFI is the median family income calculated by HUD for each jurisdiction in order to determine Fair Market Rents (FMRs) and income limits for HUD programs. HAMFI is not necessarily equivalent to other median income calculations due to a series of adjustments made by HUD.

According to 2015-2019 CHAS estimates, a total of 2,659 households experience cost burden (22.7 percent) while an additional 2,480 households experience severe cost burden (21.1 percent). This means that a little less than half of all households in the city experience some level of cost burden. Of the 5,139 households experiencing some level of cost burden, 1,764 of them are considered moderate- or above-moderate-income and 1,350 of them are considered lower-income. Thus, cost burden is not limited to lower income households.

Further, renters are particularly impacted by cost burden, as, unlike homeowners, they cannot build equity with their homes. Renters in Monterey tend to have higher rates of cost burden than owners – for instance,

52.3 percent of all renters experience some level of cost burden while only 30.1 percent of owners do. Rates are further unevenly distributed between renters and owners by income level, as evident in Table B-37 below.

OVERCROWDED HOUSEHOLDS
According to the U.S. Census, overcrowding occurs where there is more than 1.01 persons per room (excluding bathrooms and kitchens) in an occupied housing unit and severe overcrowding occurs when there is more than 1.5 persons per room. Overcrowding typically occurs when there is an inadequate supply of affordable housing. As shown in Table B-38, 664 out of 12,373 occupied housing units in the city were either overcrowded or severely overcrowded (5.4 percent). This is lower than the rate in Monterey County (13.6 percent).

Further, renters tend to experience overcrowding more often than owners. As shown in Chart B-15, about

1.3 percent of renter-occupied households experience overcrowding and 6.55 percent experience severe overcrowding. By contrast less than 1 percent of owner-occupied households any level of overcrowding.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 145, Packet Page 268 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-39
Income Category
Renters Owners Total Households2
Number Percent Number Percent Number Percent
Extremely-Low-Income (Under 30% HAMFI3)
No Cost Burden/Not Computed 95 1.31% 10 0.22% 105 0.89% Cost Burden 15 0.21% 45 1.00% 60 0.51%
Severe Cost Burden 630 8.70% 165 3.68% 795 6.78%
Very-Low-Income (30% - 50% HAMFI)
No Cost Burden/Not Computed 64 0.88% 25 0.56% 89 0.76%
Cost Burden 220 3.04% 165 3.68% 385 3.28%
Severe Cost Burden 650 8.97% 135 3.01% 785 6.69%
Low-Income (50% - 80% HAMFI)
No Cost Burden/Not Computed 250 3.45% 195 4.34% 445 3.79% Cost Burden 770 10.63% 55 1.23% 825 7.03%
Severe Cost Burden 310 4.28% 215 4.79% 525 4.47%
All Lower-Income (Under 80% HAMFI)
No Cost Burden/Not Computed 409 5.65% 230 5.12% 639 5.45% Cost Burden 1,005 13.87% 265 5.90% 1,270 10.83%
Severe Cost Burden 1,590 21.95% 515 11.48% 2,105 17.94% Moderate- and Above-Moderate-Income (Over 80% HAMFI)
No Cost Burden/Not Computed 3,045 42.03% 2,909 64.82% 5,954 50.75% Cost Burden 1,005 13.87% 384 8.56% 1,389 11.84%
Severe Cost Burden 190 2.62% 185 4.12% 375 3.20%
All Income Groups
No Cost Burden/Not Computed 3,454 47.68% 3,139 69.94% 6,593 56.20% Cost Burden 2,010 27.75% 649 14.46% 2,659 22.66%
Severe Cost Burden 1,780 24.57% 700 15.60% 2,480 21.14% Notes

1. According to HUD, households spending 30 percent or less of their income on housing expenses have no cost burden, households spending 31 to 50 percent of their income have cost burden, and households spending 51 percent or more of their income have severe cost burden.

2. Discrepancies in sums are due to rounding errors.

2. 3. HUD Area Median Family Income (HAMFI).

Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2015-2019 release
Not Overcrowded Overcrowded Severely Overcrowded
Region Number Percent Number Percent Number Percent
Monterey 11,709 94.6% 105 0.8% 559 4.5%
Monterey County 110,606 86.4% 11,257 8.8% 6140 4.8%
Notes

1. The Census Bureau defines an overcrowded unit as one occupied by 1.01 persons or more per room (excluding bathrooms and kitchens), and units with more than 1.5 persons per room are considered severely overcrowded.

Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25014 Table B-37: Cost-Burdened Households in Monterey by Income and Tenure1 Table B-38: Overcrowding1 Severity by Region
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 146, Packet Page 269 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-40
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25014 Typically, in California, renters experience higher rates of overcrowding than homeowners because they are more likely to be lower income than are homeowners. Lower-income households in the city (those making less than 80 percent of AMI), generally tend to have higher rates of overcrowding. For instance, as shown in Table B-39, among extremely-low-income households (i.e., those making less than 30 percent of AMI) 3.7 percent are considered overcrowded while 5 percent are severely overcrowded. Among households making between 31 to 50 percent of AMI and 51 to 80 percent of AMI, 2.4 percent and 3.8 percent are considered severely overcrowded. This may reflect a lack of both affordable housing and housing to meet the needs of all income levels.

Like tenure, rates of overcrowding are unevenly distributed by race/ethnicity. Chart B-16 below demonstrates the breakdown of overcrowding within various racial/ethnic groups. According to the Census Bureau, it “does not disaggregate racial groups by Hispanic/Latinx ethnicity. Since residents who identify as white and Hispanic/Latinx may have very different experiences within the housing market and the economy from those who identify as white and non-Hispanic/Latinx, data for multiple white sub-groups are reported here.” In addition, “[t]he racial/ethnic groups reported in this table are not all mutually exclusive. Therefore, the data should not be summed as the sum exceeds the total number of occupied housing units for this jurisdiction. However, all groups labelled ‘Hispanic and Non-Hispanic' are mutually exclusive, and the sum of the data for these groups is equivalent to the total number of occupied housing units.”
Chart B-15: Overcrowding by Tenure and Severity in the City of Monterey Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 147, Packet Page 270 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-41
Overcrowded Severely Overcrowded
Income Group Number Percent Number Percent
0%-30% of AMI 40 3.65% 55 5.02%
31%-50% of AMI 0 0.00% 30 2.39%
51%-80% of AMI 20 1.11% 69 3.83%
81%-100% of AMI 25 2.16% 122 10.52%
Greater than 100% of AMI 25 0.38% 210 3.20%
Notes

2. Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas. The AMI levels in this table are based on the HUD metro area where this jurisdiction is located.

Source: American Community Survey 5-Year Data (2016-2020), Table B25004 Overcrowding is most prevalent among American Indian or Alaska Native, Other Races, and Hispanic or Latinx households as 20.8 percent, 5.3 percent, and 4.5 percent of each group experiences overcrowding, respectively. Overcrowding rates are comparable for White, non-Hispanic households (2.65 percent), Black or African American households of any ethnicity (1.26 percent), and for Asian households (0.81 percent).

Chart B-16: Overcrowding by Race/Ethnicity in Monterey
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B2501 Table B-39: Overcrowding1 by Income Level and Severity in the City of Monterey Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 148, Packet Page 271 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-42
Assisted Housing at Risk of Conversion

AVAILABILITY OF SUBSIDIZED HOUSING
State Housing Element law requires that communities identify the status of assisted low-income rental units that are “at risk” of conversion to market rent status within ten years of the statutory mandated update of the Housing Element (from January 2023 to January 2031). The California Housing Partnership (CHP) estimates that there are 5,864 low-income rental units in Monterey County. Table B-39 shows that while most units in the county are at low risk of conversion, there are 64 units (0.09 percent) at moderate risk, 345 units (5.3 percent) at high risk, and 0 units (0 percent) at very high risk. There are no assisted units with covenants expiring within the planning period; however, there are 117 subsidized rental housing in the City at risk of conversion to market rate within ten years of the planning period as shown in Table B-40. Shown on Table B-41, Monterey's assisted housing inventory includes El Estero, Portola Vista, Montecito/Watson, and Dela Vina Apartments. While California Housing Partnership’s 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, this database does not include all deed-restricted affordable units in the state. Consequently, there may be at-risk assisted units in the city that are not captured in this data table.

Source: California Housing Partnership, Preservation Database, 2022 Per HCD guidance, local jurisdictions must also list the specific affordable housing developments at risk of converting to market rate uses to supplement the aggregate numbers provided in Table B-40. The assisted housing inventory is available in Table B-41 below. Several of these units are restricted for affordable use through the City’s Inclusionary Housing Program. Another large portion of these units are owned by nonprofits that provide housing for special needs groups.

Table B-40: Assisted Units at Risk of Conversion
Monterey Monterey County
Risk Level1 Number Percent Number Percent
Low 142 0.01%
Moderate 0 0% 64 0.09%
High 0 0% 345 5.34%
Very High 0 0% 0 0%
Total 142 409
Notes

1. California Housing Partnership uses the following categories for assisted housing developments in its database:
• Low Risk: affordable homes that are at-risk of converting to market rate in 10+ years and/or are owned by a large/stable non-profit, mission-driven developer.
• Moderate Risk: affordable homes that are at-risk of converting to market rate in the next 5-10 years that do not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable nonprofit, mission-driven developer. • High Risk: affordable homes that are at-risk of converting to market rate in the next 1-5 years that do not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable non-profit, mission-driven developer.
• Very-High Risk: affordable homes that are at-risk of converting to market rate within the next year that do not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable nonprofit, mission-driven developer.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 149, Packet Page 272 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-43
Project Name Project Address Project Type
Total
Units
Affordable
Units
Date
Constructed
Affordability
End Date
Portola Vista 20 Del Monte
Avenue
Seniors 62+
and/or
Disabled
64 64 1/31/2033
Montecito
Apartments –
Public Housing
242 Montecito
Street
Family 8 8 6/30/2036
Watson
Apartments –
Public Housing
531 Watson
Street
Family 5 5 6/30/2036
Van Buren Senior
Housing
613 Van Buren
Street
Seniors 19 18 2070
El Estero Senior
Housing
151 Park
Avenue
Seniors 26 26 8/31/2035
Casa de Los Robles 504 W.

Franklin Street
Special
Needs
6 6 2049
Dela Vina
Apartments
345 Dela Vina
Avenue
Family 14 14 9/30/2038
Total 142 141
Source: Housing Authority of Monterey, 2022, Community Development Block Grant 2020-2024 Consolidated Plan, & 2020-2021 Annual Action Plan, City of Monterey, 2020

COST ANALYSIS
State law requires the analysis of at-risk housing to identify “the total cost of producing new rental housing that is comparable in size and rent levels, to replace the units that could change from low-income use, and an estimated cost of preserving the assisted housing developments.” The typical development cost of affordable housing projects in the City of Monterey is about $429,217 per unit. Estimates are derived from the average projected development costs per unit provided in recent California Tax Credit Allocation Committee (TCAC) project tax credit applications, see Table B-42. If the 117 units identified by the CHP as facing some level of risk converted to market rate housing during the 10-year period, the total replacement cost would be about $50,218,389.

Project Name TCAC Application Year Per Unit Cost1
Van Buren Senior Housing 2016 $429,217.11

1. Derived from stated “true cash per unit cost” or “effective per unit costs”, where applicable, in TCAC project applications.

Source: California Tax Credit Allocation Committee, Project Staff Reports, 2016 The cost of preservation for the typical affordable housing project can be estimated by finding the difference between fair market rent and affordable rent. As shown in Table B-34the affordable monthly rental payment for a very-low-income, four-person household in Monterey is $1,421. In fiscal year 2021 the HUD Fair Market Rent (FMR), or gross rent estimate, in the Salinas, CA HUD Metro FMR area for a three-bedroom unit was $2,566. The difference between these two prices is about $1,145 in Monterey. Given this gap, the Table B-41: Monterey Assisted Housing Inventory
Table B-42: Typical Development Costs of Affordable Housing Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 150, Packet Page 273 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-44
total cost of preserving all 117 low-risk units through covenants would be approximately $133,965 per month or $1,607,580 per year. This translates to a cost of $16,075,800 over the 10-year period, or $137,400 per unit, which is less than the cost per unit of a new affordable housing development, as seen on Table B42. Though there are no at-risk units in Monterey during the planning period of 2023-2031, there are 117 assisted units at risk of conversion within ten years of the updated Housing Element.

RESOURCES FOR PRESERVATION
There are two primary resources available for preserving at-risk units (1) public agencies, nonprofit housing corporations, and tenant groups; and (2) public financing or subsidy programs. HCD maintains a current list of all “qualified entities” across the state, which are nonprofit or for-profit organizations or individuals that agree to maintain the long-term affordability of affordable housing developments. Table B-43 provides the list of all qualified entities for Monterey County. The City would work with these organizations to preserve the housing units in danger of conversion.

Qualified Entity City Contact Email
Mid-Peninsula Housing Coalition
Foster City (650) 356-2900 info@midpenhousing.org
Affordable Housing Foundation San Francisco (415) 387-7834 [email protected] South County Housing, Inc. Gilroy (408) 842-9181 [email protected] Peoples' Self-Help Housing Corp. San Luis Obispo (805) 540-2452 [email protected] CHISPA Inc. Salinas (831) 757-6251 [email protected] ROEM Development
Corporation
Santa Clara (408) 984-5600 Ext 17 [email protected]
Source: HCD, May 2021
Energy Conservation
Household energy consumption, along with transportation, constitutes a significant proportion of total urban energy use. Efforts to reduce or minimize the overall level of urban energy consumption are essential to mitigate the high costs of energy and the environmental impacts of energy use.

Reductions in energy use can be achieved through the coordination of land development and transportation infrastructure. Located between the California coastline and the Santa Cruz Mountains, the City of Monterey has relatively little vacant land and few opportunities for development in previously undeveloped areas. There are opportunities for new housing along the city's commercial corridors and downtown, where redevelopment of underutilized commercial sites and surface parking lots present opportunities for redevelopment with residential and mixed-use development. Additionally, there are opportunities for smaller-scale housing such as accessory dwelling units (ADUs) and Senate Bill 9 development in established residential neighborhoods. This pattern of infill development tends to be more energy efficient than conventional suburban single-family residential development, not only because of the compact size and scale of the built form, but also because it results in fewer vehicle miles traveled and less gasoline consumption per capita.

To achieve energy conservation goals, the City will continue strict enforcement of the building standards of the 2019 edition of the California Building Standards Code, Title 24 of the California Code of Regulations Table B-43: Qualified Entities in Monterey
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and amendments related to energy conservation. Title 24 establishes energy budgets or maximum energy use levels for dwelling units. The standards of Title 24 supersede local regulations and mandate implementation by local jurisdictions.

The City prepared and adopted a Climate Action Plan (CAP) in 2016 using both 2005 and 2012 emissions, provided by the Greenhouse Gas (GHG) Inventory. The CAP provides a policy framework to reduce citywide GHG emissions and improve the sustainability of community, while setting the stage for building additional climate resilience. A number of objectives and strategies, which continue to be implemented by the City, target the reduction of residential emissions. The City also adopted the California Green Building Standards Code (CALGreen) in 2013, and continue to update CALGreen standards in the City Code as new versions become available. CALGreen requires all permitted residential and non-residential construction, demolition, and additions/alterations projects to recycle or salvage a minimum 65 percent of nonhazardous construction materials from the project. The City can require contractors to develop and maintain a waste management plan and document diversion and disposal, or utilize a waste management company that can provide verifiable documentation that it meets 65 percent waste diversion, or use a waste stream reduction alternative.

The City of Monterey is serviced by CCCE which provides 100% renewable energy to its customers and offers various energy conservation programs to residents and businesses in the city. There are a variety of retrofit and energy savings programs to encourage owners to provide buildings and appliances that are as energy efficient as possible.

Projected Housing Need

RHNA BY INCOME GROUP
The “demand” for housing is based on the total number of households divided into four household income categories. These income categories are based on the median household for Monterey County. The Association of Monterey Bay Area Governments and HCD classify income as follows:
• Extremely low-income: 30 percent of area median income and below • Very low-income: 31 to 50 percent of area median income • Low-income: 51 to 80 percent of area median income
• Moderate-income: 81 percent to 120 percent of area median income • Above moderate-income: over 120 percent of area median income

REGIONAL HOUSING NEEDS ALLOCATION
California’s Housing Element law requires that each city and county develop local housing programs designed to meet its “fair share” of existing and future housing needs for all income groups, as determined by the jurisdiction’s Council of Governments (COG) and HCD. The Association of Monterey Bay Area Governments (AMBAG) is the COG responsible for allocating to jurisdictions in the Monterey Bay area their fair share of the region’s projected housing needs, known as the Regional Housing Needs Allocation (RHNA). A fair share of housing units is calculated for each of four income groups based on a jurisdiction’s current share of housing for different income levels and on the jurisdiction’s amount of available vacant land.

Fair share needs are allocated over the planning period for every jurisdiction’s Housing Element. This cycle, the Planning Period is 2023-2031. The intent of RHNA determinations is to ensure that local jurisdictions Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 152, Packet Page 275 City of Monterey 2023-2031 Housing Element Appendix B: Housing Needs Assessment B-46
address not only the needs of their immediate areas but also help meet the housing needs for the entire region. A major goal of RHNA is to ensure that every community provides an opportunity for a mix of affordable housing to all economic segments of its population. Jurisdictional allocations are made to guarantee that adequate sites and zoning are provided to address existing and anticipated housing demands during the planning period and that market forces are not inhibited in addressing the housing needs for all populations within a particular community.

For the 2023-2031 period, AMBAG’s adopted 2020 Final RHNA figures identify an overall construction need of 3,654 new units in Monterey, an increase from the prior cycle’s allocation of 650 new units. Table B-44 shows the income breakdown of these units.

Income Group % of County AMI Number of Units Allocated Percent of Total Allocation Very Low 0-50% 1,177 32.2%
Low >50‐80% 769 21.0%
Moderate >80‐120% 462 12.6%
Above Moderate 120%+ 1,246 34.1%
Total 3,654 100.0%
Source: Association of Monterey Bay Area Governments, 2022 Table B-44: Regional Housing Needs Allocation 2023-2031 Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 153, Packet Page 276

APPENDIX
C

HOUSING

CONSTRAINTS
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 154, Packet Page 277 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints Table of Contents
C.1 Non-Governmental Constraints..................................................................................... C-1 C.2 Governmental Constraints ........................................................................................... C-18 C.3 Land Use Plans and Policies .......................................................................................... C-18 C.4 Land Use and Development Regulations..................................................................... C-21 C.5 Provision for a Variety of Housing Types .................................................................... C-29 C.6 Housing Regulations ...................................................................................................... C-37 C.7 Permits and Processing Procedures ............................................................................ C-40 C.8 Fees.................................................................................................................................. C-43 C.9 Transparency in Development Regulations ................................................................ C-46 C.10 Key Findings.................................................................................................................... C-47 Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 155, Packet Page 278 1 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-1
Housing Constraints
State law requires housing elements to identify and evaluate potential and actual governmental and nongovernmental constraints that affect a jurisdiction’s ability to maintain and improve existing housing and develop housing to meet its housing needs. Governmental constraints can include land use regulations, fees and exactions, and processing and permitting times, among others. Non-governmental constraints can be infrastructural, environmental, or market based. This appendix provides an assessment of these constraints to help identify any approaches the City of Monterey could use to reduce or overcome these constraints and improve its ability to meet its housing needs.

C.1 Non-Governmental Constraints
Non-governmental constraints range from environmental factors such as flooding, wildfire, and seismic hazards to economic conditions including the cost and availability of financing, labor supply, the cost of materials and, more recently, supply chain problems. These conditions can hamper residential development and are, for the most part, beyond the ability of local government to control. Nevertheless, there are approaches they might use to help offset the impacts of these constraints through their planning and regulation of land use and development.

In Monterey, the most significant non-governmental constraint to residential development is water supply as the region has been subject to a Cease-and-Desist Order since 1995 and the issue has yet to be resolved.

Other major non-governmental constraints to residential development include the high cost of land and construction costs. Although many constraints are driven by market conditions, jurisdictions have leverage in instituting policies and programs to address such constraints. The discussion below analyzes these constraints, and some approaches Monterey could employ to mitigate their effects.

WATER SUPPLY
The primary constraint to development on the Monterey Peninsula is water supply. Most of the Monterey Peninsula, including the City of Monterey, is supplied by the California American Water Company (Cal Am) through wells in Carmel Valley, a dam on the Carmel River, and a well drawing from the Seaside Aquifer. Historically, the Carmel River provided the bulk of water supply to the Monterey Peninsula; however, in 1995, the State Water Resources Control Board (SWRCB) adopted Order WR 95-10, which found that Cal Am was diverting about 10,730 acre-feet per annum of water from the Carmel River without a valid basis of right and directed that Cal Am should diligently implement actions to terminate its unlawful diversion. The restrictions are in place to limit the amount of water from the Carmel River to protect critical habitat and endangered species; however, they have effectively halted the development of housing in the region and severely impacted the development of workforce housing, resulting in workers who work on the Monterey Peninsula living far outside the community and enduring long and expensive commutes.

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Over the years, there have been multiple amended orders, the most recent of which in 2016 established a reduction in diversions over time and required that Cal Am "diligently implement actions to terminate its unlawful diversions from the Carmel River and shall terminate all unlawful diversions from the river no later than December 31, 2021." The last illegal diversion was terminated in compliance with the SWRCB 1995 order, but the region remains subject to the order until a new water supply has been in operation for a number of years. Until that the order is lifted, there is no additional public water supply available to serve new development and no new water meters can be installed. Therefore, the vision to create new housing opportunities is not possible without resolving the Peninsula’s water moratorium.1 In the interim, some properties have water credits that can be reused for new residential or commercial development if adequately sized water meters exist. While developing specific plans for future growth areas, the City created a database of underutilized properties and water credits associated with each property.

These underutilized properties are identified in the specific plans. There are opportunities to consolidate adjacent properties under a single ownership to facilitate redevelopment and provide new housing units by sharing the water credits. The City has had some success in this effort, generating new housing in infill areas; however, full development potential of these areas is often unmet due to the lack of water. Likewise, the City has been approached by landholders/developers interested in seeking entitlements for new housing projects, but again are unable to move forward due to the water supply challenge. Some property owners are considering wells that are costly but possible alternatives.

The City is required by state law to plan for 3,654 new housing units. While the AMBAG RHNA allocation requires the City to plan for 3,654 new housing units, there may not be sufficient water supply allocated to meet water demands to construct all 3,654 units by 2031. The required RHNA allocation for the City of Monterey would result in approximately 7,819 new residents2 . The Monterey Peninsula Water
Management District’s (MPWMD) adopted Technical Memorandum 2022 Supply and Demand Forecast3 only includes forecasted water demands for a population increase in Monterey of 1,469 new residents by 2045 (2045 Monterey projected population of 29,639 – 2020 Monterey population estimate of 28,170) (Table C-1, Adopted 2045 Water Demand Projections).

In summary, MPWMD’s 2045 Water Demand Forecast includes the following assumptions:

MPWMD’s forecast is based on the AMBAG 2022 Regional Growth Forecast and uses current 5-year average water production, a measure of the total water required to “feed” the system for customer use, before losses and fire flows, as the base. Starting with three years of actual consumption data (2017, 2018, and 2019 – pre-COVID), MPWMD allocated consumption for residential and non-residential by political jurisdiction, based on the proportionate percentages of each then mapped the current base production to the same proportions.

Assuming all prospective population and housing growth is captured in AMBAG’s Regional Growth Forecast and all commercial economic expansion occurs at the same rate as AMBAG’s employment projections, MPWMD offers the following water demand forecast”2 (Pg 6 of MPWMD report; Refer to Table C-1 below).
1 City of Monterey, Council Agenda Report from Kimberly Cole, AICP, Community Development Director, March 15, 2022.
2 City of Monterey’s RHNA allocation of 3,654 units x 2.14 persons per household (Census 2017-2021) = 7,819 new residents. https://www.census.gov/quickfacts/montereycitycalifornia 3 2022. MPWMD. Technical Memorandum. 2022 Supply and Demand Forecast. Adopted September 19, 2022.

Available online: https://www.mpwmd.net/wp-content/uploads/2022-Supply-and-Demand-Forecast-wAttachments-1.pdf Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 157, Packet Page 280 3 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-3
Table C-1: MPWMD Adopted 2045 Water Demand Projections
While the City is not required to construct housing to fulfill the RHNA allocation, the City Council is committed to addressing the City’s shortage of affordable housing. The City Council adopted a set of specific program, policy, or projects that support the City’s Strategic Priorities. Under Value Driver #5 and #6, the City Council supports staff work programs that focus on providing affordable housing and securing water resources to provide this housing.
• Value Driver #5: Champion regional and local efforts to secure adequate, affordable, and sustainable water sources for the city, now and into the future. The Council recognizes that access to a dependable supply of fresh water is a significant gating factor that impacts the City’s ability to provide affordable housing and promote economic vitality consistent with the goals described in the City’s General Plan. Securing water sources is a strategic priority for staffs’ work program efforts. This strategy includes staff continuing to advocate and lobby on behalf of the City of Monterey’s interests on Source: MPWMD. 2022, Appendix D, page 115.

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regional water issues, with an emphasis on securing water for affordable housing projects.
• Value Driver #6: Support efforts and policies that provide equitable access to affordable housing in Monterey and the region. The Council embraces efforts that provide equitable access to affordable housing, including balanced approaches to increase housing supply, rental resources and assistance, and housing rehabilitation grants to homeless, low-income, senior, and disabled individuals. This strategy includes staff efforts that support affordable housing through modern zoning policies/ordinances, ADU policies, housing grants, review of density requirements, and consideration of City-owned sites for affordable housing; and addressing homelessness through programs, partnerships, and support of homeless service agencies.4 Recognizing the urgent need for housing in Monterey, the City Council has petitioned the State Water Resources Control Board (SWRCB) to lift the Cease-and-Desist Order now that the illegal diversions have ceased; and has asked the Monterey Peninsula Water Management District (MPWMD), responsible for developing long-term water supply for the Monterey Peninsula cities in the district, to support the request.

In a letter dated April 13, 2021 to the SWRCB, the City requested relief from the Cease-and-Desist Order for health and safety needs related to housing. The letter states:

Housing production in the City of Monterey is basically at a standstill due to the Ceaseand-Desist Order (CDO). Last year, the City only produced 13 accessory dwelling units.

These units could only be developed when the main home’s water credits were reduced such as bathroom removed. Housing production in the City is woefully inadequate to meet demand, prevent homelessness and meet State and regional housing goals for the City.

There are at least 441 units in the pipeline readying for construction including: 289 units on Garden Road and 152 100%-affordable housing units on City owned parcels. In addition to the 289 units proposed on Garden Road, the District’s request from relief would allow up to 400 units. The City would need approximately 25 acre feet of water to construct the 400 housing units. Without relief from Condition 2, development of these projects is uncertain4
The SWRCB denied the request, but the agency recently expressed support for the regional desalination plant.

There are long-range water supply projects that will create and expand three water supply sources for the Monterey Peninsula to reduce regional demand on groundwater and the Carmel River. The overall Monterey Peninsula Water Supply Project (MPWSP) involves several major components – the Cal-Am desalination facility consolidated with other water infrastructure serving the area, including a water recycling project (Pure Water Monterey) purchased from the Monterey Regional Water Pollution Control Agency (MPWPCA), and an Aquifer Storage and Recovery (ASR) wells project (Figure C-1). 4 City of Monterey, January 25, 2023. City Council Special Meeting. Amended Agenda. https://isearchmonterey.org/OnBaseAgendaOnline/Meetings/ViewMeeting?id=5626&doctype=1 Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 159, Packet Page 282 5 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-5
Figure C-1: MPWSP Overview
Desalination Facility
On November 17, 2022, the California Coastal Commission approved a Consolidated Coastal Development Permit for the California-American Water Company (Cal-Am) to construct and operate a desalination facility, a well field, water transmission pipelines, pump station, and other related infrastructure. The desalination facility will be part of the overall MPWSP. The desalination facility would provide potable water for customers in Cal-Am’s service area in the Monterey Peninsula region, which have experienced decades of water shortages resulting from drought, overpumping of groundwater sources, seawater intrusion, proposed supply projects not being completed, and other causes. The Monterey Peninsula region faces unique water supply challenges that are likely to be exacerbated by climate change. The desalination facility would be constructed in phases, a smaller initial phase would produce 4.8 million gallons per day (“mgd”) per year (~5,372 acre-feet) and the second phase, which would produce a combined total of 6.4 mgd per year (~6,250 acre feet per year), would occur only if Cal-Am can demonstrate a need for the additional water supply and demonstrate that the first phase has been operating in a manner that is protective of local groundwater supplies and nearby wetlands.

The desalination facility will use advanced slant well technology to draw ocean water from beneath a sandy beach located at the former CEMEX industrial sand mining facility in Marina, thereby minimizing any harm to marine life. At the Project’s maximum build-out, it would include up to six new slant wells to be located within a Cal-Am easement in part of the CEMEX sand mining facility near the Monterey Bay shoreline in the City of Marina. The Project would also include conversion of a test slant well to a permanent well on the same site, as well as four main pipelines, with part of each in the coastal zone. The desalination facility itself would be constructed inland of the coastal zone and would discharge processed saline brine to an existing outfall operated by the regional wastewater treatment agency, Monterey One Water (“M1W”).

This outfall line would need to be modified in order to discharge the brine. The treatment plant will be powered with 100 percent renewable power or equivalents to achieve net-zero Greenhouse Gas emission.

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Cal Am says it expects to have the project operational in five years. 5 The SWRCB submitted two comment letters to the California Coastal Commission in association with the Cal-Am Coastal Development Permit application for the desalination plant (Coastal Commission application 9-20-0603). Eileen Sobeck, SWRCB Executive Director, in her letter dated October 25, 2022 stated:

State Water Board Order 2016-0016 provides that the conditions of the State Water Board’s orders remain in effect until “Cal-Am certifies, with supporting documentation, that it has obtained a permanent supply of water that has been substituted for the water illegally diverted from the Carmel River” and the Deputy Director of the State Water Board’s Division of Water Rights concurs with the certification.

Cal-Am will not report its water use for Water Year 2021-2022 until February 1, 2023, and therefore the State Water Board is not yet able to determine whether Cal-Am is in compliance with their water rights (including permit terms such as maximum annual diversion limits). Because of the present uncertainty of Cal-Am’s compliance, the State Water Board recently denied requests to modify or lift the cease-and-desist order (Eileen Sobeck, letter to David Stoldt, July 28, 2022). As California has just experienced its driest three-year period on record, continued unlawful diversions will cause even greater harm to the Carmel River’s protected fish and wildlife.

Although Cal-Am and the Monterey Peninsula Water Management District (MPWMD) have implemented various measures to reduce diversions from the Carmel River, it is undisputed that Cal-Am has not yet secured a permanent replacement water supply. CalAm and MPWMD have made efforts to reduce demand, including programs encouraging conservation by business and residential customers, water efficiency requirements, and tiered conservation rates, and to develop new supplies, such as the Sand City desalination plant, Pebble Beach water recycling facility, and new lawful rights in the Carmel River.

Cal-Am currently relies on Pure Water Monterey to produce 3,500 acre-feet per year. The California Public Utilities Commission will consider whether to authorize Cal-Am to enter into a water purchase agreement for the Pure Water Monterey expansion project, which could provide an additional 2,250 acre-feet annually of treated water by 2024 or 2025.

The Pure Water Monterey expansion project may constitute an important component of a permanent replacement water supply, if it is developed and demonstrated to be a reliable, drought-resilient water source. However, based on regional housing needs, source reliability, and the effects of aridification on California’s water supplies, the State Water Board believes it is prudent for Cal-Am to pursue additional sources of water that are sustainable and urges the Coastal Commission to consider the proposed desalination facility as a potentially vital municipal water supply that also could help to protect one of the region’s most important environmental assets.

The water supply for the Monterey Peninsula remains precarious, and will continue to be so until a long-term, resilient replacement water supply is developed. The conditions of 5 California Coastal Commission, Staff Report: Recommendation on Appeal De Novo. November 17, 2022. https://www.coastal.ca.gov/meetings/agenda/#/2022/11
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the State Water Board’s orders remain in effect, including a prohibition on new water service connections served from the Carmel River. The State Water Board supports CalAm’s efforts to develop a diverse and drought-resilient water supply portfolio.

Desalination that is appropriately permitted and conditioned to protect the environment can be one part of a long-term water supply solution.

The Regional Water Quality Control Board, Central Coast Region (Central Coast Water Board) has permitting authority over the desalination facility project and will apply subdivision (b) of section 13142.5 of the Water Code and the California Ocean Plan in the exercise of that authority.6 Water Recycling Facility (Pure Water Monterey/Groundwater Replenishment Project (PWM/GWR Project)
Pure Water Monterey Groundwater Replenishment Project (PWM/GWR) is an advanced water recycling project, jointly developed by two public agencies - a partnership between Monterey One Water and MPWMD. The project recycles wastewater through an advanced treatment process. The primary objective of the PWM/GWR Project was to replenish the Seaside Groundwater Basin (Seaside Basin) with 3,500 acrefeet per year (AFY) of purified recycled water to replace a portion of California American Water’s (CalAm) water supply as required by SWRCB orders. The PWM/GWR Project as approved in 2015, included a 4.0 million gallon per day (mgd) capacity Advanced Water Purification Facility for treatment and production of purified recycled water for conveyance and injection into the Seaside Basin using conveyance pipelines, a booster pump station, and a series of shallow and deep Injection Wells. The injected water would then mix with the existing groundwater and be stored for extraction and urban use by CalAm.

After the approval of the PWM/GWR Project, minor changes to components of the PWM/GWR Project were subject to discretionary action by responsible agencies. These actions included approval of a water distribution system permit by MPWMD, including the addition of the Hilby Pump Station and minor realignments to the Monterey Pipeline. On October 30, 2017, the M1W Board approved modifications to the PWM/GWR Project (Addendum No. 3 to the PWM/GWR Project, “Addendum No. 3”) to increase the operational capacity (peak or maximum flowrate) of the approved Advanced Water Purification Facility from 4.0 mgd to 5.0 mgd. The purposes of the 2017 modifications were to enable delivery of 600 AFY of purified recycled water to Marina Coast Water District (MCWD) for urban landscape irrigation by MCWD customers and to allow the shared use of existing pipelines and new pipelines and storage facilities for this irrigation use and for conveyance of purified recycled water to Injection Wells in the Seaside Basin7 .

Using proven, advanced, multi-stage treatment to provide a safe, reliable and sustainable drinking water supply that will comply with or exceed strict state and federal drinking water standards, the PWM/GWR Project will reduce water taken from the Carmel River and the Seaside Basin. It also provides a source of tertiary treated water for the Salinas Valley agricultural industry while providing treatment for their impaired surface waters. In doing so, it will help meet regulatory orders and enhance water supply reliability by diversifying local water sources8
.
6 California Coastal Commission, Staff Report: Recommendation on Appeal De Novo. November 17, 2022.

Correspondence from Elected Officials, Tribal Officials, and Organizations:
https://www.coastal.ca.gov/meetings/agenda/#/2022/11 7 Monterey One Water and MPWMD, Draft Supplemental EIR for the Proposed Modifications to the Pure Water Monterey Groundwater Replenishment Project, November 2019.

Viewed 1/24/2023 (pg 1-2). https://purewatermonterey.org/wp/wp-content/uploads/Main-Body-of-M1W-DraftSupplemental-EIR-Nov-7-2019.pdf 8 Monterey Peninsula Water Supply Project. About Us. Viewed 1/24/2023. https://purewatermonterey.org/about-us/ Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 162, Packet Page 285 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-8
Aquifer Storage and Recovery Project
The MPWSP will expand Cal-Am’s current Seaside Groundwater Basin ASR project – a partnership with MPWMD – which captures excess winter flows in the Carmel River (~December 1st through May 31st) from the Carmel River Alluvial Aquifer for storage in the Seaside Aquifer, and conveys the water to the Seaside Basin via the existing Cal-Am delivery system, and injecting the water into ASR wells for subsequent recovery and delivery to Cal-Am customers during dry periods (normally June 1st through November 30th of the water year the water is injected). Winter flows are considered excess only when they exceed what is needed to protect the river’s threatened population of steelhead9 .

LOCATION AND DEVELOPMENT
The City of Monterey covers 8.67 square miles of land area, or approximately 5,551 acres, and 3.57 square miles of water area in the Monterey Bay that is within the Monterey City limits. The city is bordered by the cities of Seaside and Del Rey Oaks to the north and northeast; Pacific Grove to the northwest; and unincorporated Monterey County to the east and south. The City’s Planning Area includes unincorporated lands within the County of Monterey that may ultimately be annexed by the city as well as unincorporated land not being considered for annexation, but that may affect Monterey’s planning. 10 Human-made constraints to the location and size of housing development exist and include the Monterey Peninsula Airport and the variety of military facilities and other institutions operating within and adjacent to the city, which provide jobs that have an impact on housing demand but are not subject to municipal regulation.

The Monterey County Airport Land Use Commission adopted the Airport Land Use Compatibility Plan (ALUCP). The ALUCP identifies safety and noise hazards associated with the airport and recommends areas where certain uses should not be located. The ALUCP Table 4 B establishes the following prohibitions affecting residential construction:

Zone 1 – Prohibits all structures except ones with location set by aeronautical function Zone 2 – Prohibits all residential except for very low density residential and infill in developed areas Zone 3 – Prohibits all residential except for low density residential and infill in developed areas Zone 4 – Prohibits buildings with greater than 3 aboveground habitable floors Zone 5 – Prohibits residential except for very low residential and infill in developed areas. 11 9 MPWMD. Resolution No. 2016-12. Viewed 1/24/2023. https://www.mpwmd.net/resolutions/2016/Resolution2016-

12.pdf 10 California Government Code Section 65301(a) requires cities to plan for “all of the territory outside its boundaries that in its judgment bears relation to its planning.” This area includes all the territory within a city’s sphere of influence, which is the probable physical boundary and service area of a local agency as approved by the Local Agency Formation Commission. (Government Code Section 56425 (a)). 11 Monterey County, Airport Land Use Compatibility Plan, Adopted February 25, 2019, pp. 4-23 and 4/24 https://www.co.monterey.ca.us/home/showpublisheddocument/75251/636875603145330000 Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 163, Packet Page 286 9 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-9
Airplanes generate significant noise and the ALUCP identifies the airport’s noise contours. The 65dB contour is predominantly limited to the airport’s jurisdiction. The City requires compliance with the California Building Code, which requires new residential construction to have an interior sound rating of 45 dB.

As identified above, various institutions constrain the location and size of housing development. The Coast Guard Station, Defense Language Institute (DLI), Monterey Peninsula College (MPC), the Monterey Institute for International Studies (MIIS) and the Naval Post Graduate School (NPS) are important institutional uses within the city limits that are not subject to local land use regulation. Total full-time enrollment at NPS, MPC, and MIIS was 10,479 in 2019 compared with a total population of 28,099 for the entire city.12 The four military institutions in the City of Monterey, the Defense Language Institute, the Naval Post Graduate School, Naval Research Laboratory, and the Coast Guard Station together comprise nearly 30 percente of the total acreage within the City limit.

ENVIRONMENTAL CONSTRAINTS
There are environmental constraints to development in Monterey due to its location and natural environmental conditions. Environmental factors such as topography, soils, geologic conditions, seismic hazards, sea level rise, and wildfires all pose constraints to some degree. Table C-2 below summarizes the environmental hazards most likely to affect housing development in Monterey, based on analysis conducted for the Monterey County Multi-Jurisdictional Hazard Mitigation Plan. The City’s challenge is to integrate new housing into the community in consideration of these constraints. Identification of sites available for housing and realistic capacity projects reflect this challenge.

Table C-2: Local Hazards Likely to Affect Housing
Hazard Type Geographic
Extent
Likelihood
of
Occurrence
Magnitude/
Severity Impact Ranking (Out of 16)
Degree of
Risk
Drought &
Water
Shortage

3.3 3.1 3.0 3.2 12.6 High
Wildfire 3.1 2.0 3.7 3.8 12.6 High
Coastal
Flooding 2.9 3.0 3.1 3.1 12.1 High
Pandemic 3.1 2.9 3.0 3.1 12.1 High
Sea Level Rise 2.7 2.9 3.1 3.4 12.1 High
Earthquake 2.9 2.6 3.0 3.4 11.9 Substantial
Water
Contamination 3.0 2.3 3.3 3.3 11.9 Substantial
Coastal
Erosion 2.7 2.9 2.9 2.9 11.4 Substantial
Utility
Interruption 3.1 2.7 2.7 2.7 11.2 Substantial
Tsunami 2.3 2.3 3.1 3.1 10.8 Substantial
Windstorms 2.8 2.8 2.6 2.6 10.8 Substantial
Slope Failure 2.6 2.6 2.6 2.6 10.4 Substantial
12 City-Data.com, https://www.city-data.com/city/Monterey-California.html Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 164, Packet Page 287 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-10
Table C-2: Local Hazards Likely to Affect Housing
Hazard Type Geographic
Extent
Likelihood
of
Occurrence
Magnitude/
Severity Impact Ranking (Out of 16)
Degree of
Risk
Stormwater
Flooding 2.4 2.7 2.4 2.4 9.9 Moderate
Flash Flood 2.0 2.0 2.0 2.3 8.3 Moderate
Riparian
Flooding 1.7 1.9 1.8 1.5 6.9 Possible
Hazardous
Materials
Incident

1.8 1.9 1.7 1.8 7.1 Possible
Note: The County’s Multi-Jurisdictional Hazard Mitigation Plan also identifies human-caused hazards, such as cyberthreats, targeted violence, and terrorism, and public health hazards, which do not generally impact buildings and critical infrastructure. The Disaster Mitigation Act does not require an assessment of human-caused hazards and they are not included in this table.

The impacts of local hazards and the environmental conditions most likely to impact housing conditions are summarized below:
• Drought and Water Shortage. The entire population of Monterey is vulnerable to drought events.

Drought can affect people’s health and safety, including health problems related to low water flows, poor water quality, or dust. Other possible impacts include recreational risks; effects on air quality; diminished living conditions related to energy, air quality, and hygiene; compromised food and nutrition; and increased incidence of illness and disease. Water shortages can affect access to safe, affordable water, with substantial impacts on low-income families and communities burdened with environmental pollution. A prolonged drought could also cause economic impacts. Increased demand for water and electricity may result in shortages and higher costs of these resources. While economic impacts will be most significant on industries that use water or depend on water for their business, cascading economic effects can hurt many sectors of the economy. Tourism, a major economic driver in the City, will likely be impacted by drought conditions and thereby impact the local economy. There is no agricultural land within the City limit but agriculture is likely be impacted by drought conditions and is a major economic driver in Monterey County, which could affect the city economically.13 • Climate Change and Sea Level Rise. The effects of climate change are varied and include warmer and more varied weather patterns and temperature changes. Climate change will affect the people, property, economy, and ecosystems in the City and will exacerbate the risk posed by many of the hazards identified above. Climate change will have a measurable impact on the occurrence and severity of natural hazards. Increasing temperatures and rising sea-levels will have direct impacts on public health and infrastructure. Drought, coastal and inland flooding, and wildfire will likely affect people’s livelihoods and the local economy. Changing weather patterns and more extreme conditions are likely to impact tourism and the rural economies, along with changes to agriculture and crops, which are a critical backbone of Monterey County’s economic success. There will also be negative impacts to 13 County of Monterey, Multi-Jurisdictional Hazard Mitigation Plan, Volume 2, March 2022, pp. H-6 and H-7 https://www.co.monterey.ca.us/home/showpublisheddocument/117501/638034094445670000 Source: County of Monterey, Multi-Jurisdictional Hazard Mitigation Plan, Volume 2, Table H-2, March 2022 https://www.co.monterey.ca.us/home/showpublisheddocument/117501/638034094445670000; Dyett & Bhatia, 2022 Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 165, Packet Page 288 11 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-11
ecosystems, both on land and in the ocean, leading to local extinctions, migrations, and management challenges. Hazards associated with climate change and sea level rise include drought, coastal flooding, cliff and shoreline erosion.
1 • Coastal Erosion. Coastal areas along Monterey Bay, especially dune deposits, are highly susceptible to coastal erosion from waves and tidal events. Erosion potential varies along the length of the coast.

Variability in erosion rates is caused by several factors including sea level, wave patterns influenced by the form of the ocean floor, storm patterns, and the structure and character of dunes in localized areas.

Historic average coastal bluff retreat rates have been highest in the former Fort Ord area, averaging up to eight feet per year. Average erosion rates decrease downcoast to about three to five feet per year in Sand City. Farther south, within the City limit, average erosion rates are estimated to be one to two feet per year. Coastal erosion would be a significant factor for any development proposed along the margin of Monterey Bay.14
• Seismic Hazards. The California Department of Mines and Geology defines active faults as those that have experienced movement within the past 11,000 years. Mapping conducted for the National Earthquake Hazards Reduction Program in 1994 identified two faults in the Monterey and Seaside area as active faults, the Tularcitos and Navy fault zones, which extend toward Monterey Bay from the Carmel Valley. The Navy fault goes through developed areas within the city and is believed to be a continuation of the Tularcitos fault based on mapping done in 1997. The city could also be affected by activity on the San Andreas Fault, the most significant fault in the region, located in eastern Monterey County. Earthquakes on any of the local faults or on other faults located in the vicinity or region could produce significant seismic shaking within the Planning Area. 15, 16
Monterey’s entire population is potentially exposed to direct and indirect impacts from earthquakes.

Whether directly impacted or indirectly impacted, the entire population will have to deal with the consequences of earthquakes to some degree. Business interruption could keep people from working, road closures could isolate populations, and loss of utilities could impact populations that suffered no direct damage from an event itself. Similarly, all property and critical infrastructure in the City is potentially exposed to earthquake risk. According to Monterey County Assessor records, there are 12,204 residential and non-residential buildings in the city, with a total value of $6,677,984,992. Since all structures in the city are susceptible to earthquake impacts to varying degrees, this represents the property exposure to seismic events. About 723 residential properties are also susceptible to earthquake-induced liquefaction and 700 could be affected by earthquake induced landslides. 17 Additional development anywhere in Monterey will expose more people and buildings to all types of seismic hazards. Seismic shaking is considered the most significant hazard; hazards from liquefaction, differential settlement, and slope failure are expected to be less widespread as the surface and subsurface conditions associated with these hazards is geographically limited.17 14 City of Monterey General Plan Update EIR, 2004, p. 2-53 15 Chris Pilson, “Monterey-Seaside Quadrangles: Earthquake Fault Zones and the Local Building Policy”, April 20, 2001 https://digitalcommons.csumb.edu/cgi/viewcontent.cgi?article=1118&context=caps_thes 16 County of Monterey, Multi-Jurisdictional Hazard Mitigation Plan, H-6, op cit. 18 Ibid., Table H-3 17 City of Monterey General Plan Update EIR, 2004, p. 2-48.

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• Topography and Slopes. Topography and slope within the city are quite variable. Lands along the margin on Monterey Bay tend to be relatively flat but sloped towards the bay. Much of the upland portion of the city is incised by a series of intermittent stream channels that have cut into surface soil and subsurface geologic formations, leaving a series of mesas that trend towards the bay. Much of the city is built on these mesas and on the more level margins of the bay. The northern terminus of the Santa Lucia Mountains is the major regional landform that forms the backdrop to Monterey. Due to slope and access constraints, development within this area tends to be less dense. Steep slopes within the City tend to be located along stream channels and within the hillside areas, including areas where slope exceeds 25 percent.18
• Wildfire Hazards. The California Department of Forestry and Fire Protection (CALFIRE) has delineated Fire Hazard Severity Zones throughout California. Areas most likely to experience wildfire are designated as Very High or High Fire Hazard Severity Zones (VH/HFHSZ), and structures in these zones can be potentially impacted. Within VHFHSZs, special building code standards and defensible space provisions, designed to minimize the loss of life, resources and property from wildfire, apply.

Several areas in the south and southwest of the Monterey city limits are within the VHFHSZ, including the Skyline, Monterey Vista, and Glenwood neighborhoods. These areas are primarily residential, but contain two hospitals, considered critical facilities.
• Soil Erosion and Expansion. Depending on soil type and slope, new residential development could be exposed to minimal or significant potential erosion hazards. The susceptibility of new development to potential damage from expansive soils also is variable, depending on soil type. Within the existing commercial and mixed-use neighborhoods where new residential development is likely to be concentrated, soils do not generally exhibit extreme erosion potential or expansion potential. Most new development is reviewed to determine the potential intensity of these hazards and the City requires engineering and geologic investigations for most projects to determine what conditions shall be imposed to mitigate potential hazards.18
• Flooding and Tsunami Hazards. Increased exposure to hazards from a 500-year flood may occur in the Downtown/East Downtown mixed-use commercial area with the intensification of land use.

Increased exposure to a 100-year flood can also be expected along the segment of Del Monte Avenue that is located within the flood hazard zone. To the extent that buildout of the few remaining vacant parcels located along the margin of Monterey Bay occurs, wave run up hazards to new development on those parcels would be of concern and require analysis and mitigation. Such analysis and mitigation will also be required with respect to tsunami hazard.19 • Biological Resources and Habitats. Because of the characteristics and diversity of soils in the Planning Area and specific climactic conditions, the inland area supports a large variety of rare special-status plant and wildlife species. In addition, the area is on the boundary of the southern and northernmost range for many of the State’s flora and fauna, creating a diverse and complex mix of biotic communities.

Habitat types within the Planning Area include Monterey pine forest, oak woodland, urban forest, grassland, and coastal dunes. The Monterey Pine Forest is a unique feature that exists in only three native stands in California including the Monterey Peninsula. Relatively undisturbed Monterey pine forests provide habitat and corridors for wildlife species and are affected by urbanization. The Monterey Bay, one of the widest on the Pacific coast, also contains one of the largest of the major dune systems 18 Ibid, 2-55. 19 Ibid., 2-75.

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on the California coastline. The proximity of these important natural areas is a constraint because it limits the land available for development but also because of the potential adverse effects of development on their critical environmental resources.20 • Hazardous Materials. Sites where hazardous chemical compounds have been released into the environment can pose threats to human and ecologic systems’ health. Both historic and current activities, such as those that involve the storage, treatment, or disposal of hazardous materials, may result in the release, leak, or disposal of toxic substances on or below the ground surface, where they can then contaminate soil and ground water. Disturbance of the ground through grading or excavation can result in exposure of these chemicals to the public. Improper handling of contaminated sites may result in further exposure via airborne dust, surface water runoff, or vapors. As shown in Figure C-2, hazardous materials sites in Monterey are primarily concentrated in the Downtown area, along Lighthouse and Del Monte Avenue, and on either side of Fremont Boulevard. Known hazardous material sites at Ryan Ranch, on Garden Road and the Airport, as well as the vast majority of sites in Monterey have been remediated and are closed. The former Fort Ord Military Base, was placed on the Superfund list in 1990 due to multiple hazards, including an150-acre landfill and unexploded ordnances (UXO) on portions of the property.21 The site has been cleared of UXO to a level that permits light industrial uses, but not residential uses. Additional remediation would be required prior to residential development on the site.

LAND COSTS
Land costs are often difficult to estimate, and there is no single publicly available database that records urban land prices. A recent study conducted by researchers from the Federal Housing Finance Agency (FHFA) estimated the price of residential land based on appraisals of single-family parcels conducted between 2012 and 2019. From this assessment FHFA published data on land prices for census tracts and zip codes in the country. The average land value per acre in Zip Code 93940, a 16-square mile area that is wholly contained within the boundaries of the City of Monterey, 22 increased 93 percent between 2012 and 2019.

The estimated value per acre of single-family residential lots in this tract went from $781,500 to $1,511,800 based on an increase in the value of quarter acre lots from $341,100 to $603,900 during this period. One effect of this change is that the land share of property value went up by almost 10 percentage points from .574 to .670.23
The City amended the Zoning Code in 1994 to encourage mixed commercial and residential development in commercial zones and thisshift has relieved some pressure on residential districts where land is expensive due to its high demand, limited availability, and other factors, such as the ocean view and limited availability of water service.
20 Ibid., pp. 2-17 to 2-37. 21 Environmental Protection Agency. “Ford Ord Marina, CA Cleanup Activities.”Available:
https://cumulis.epa.gov/supercpad/SiteProfiles/index.cfm?fuseaction=second.cleanup&id=0902783 22 ZipDataMaps https://www.zipdatamaps.com/93940 23 “The Price of Residential Land for Counties, ZIP Codes, and Census Tracts in the United States”, FHFA Working Paper 19-01 http://www.fhfa.gov/papers/wp1901.aspx
For more information, email William Larson at [email protected] Version 3.0 (October, 2020)

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 168, Packet Page 291 P a c i f i c O c e a n
Monterey
Regional
Airport
Carmel
By-The-Sea
Sand
City
Seaside
Pacific Grove
Del Rey Oaks
AÔ
A»
A§
A§
AÔ A§
AÔ
A§ Oak
Newton
Park
Hilltop Park
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Via Paraiso
Park
Ryan Ranch
Community Park
Quarry Park
U.S. Navy
Beachfront
San Carlos
Beach Park
Soldier
Field
Larkin
School Park
Veterans
Memorial Park Huckleberry Hill
Nature Preserve
Don
Dahvee
Park
Iris Canyon
Park
Del Monte Beach
Monterey
State Beach
Lower Presidio
Historic Park
Fisherman's
Flat Greenbelt
El Estero
Park
Old Capitol
Site
W Franklin St
Prescott Ave
Fairground Rd
Ragsdale Dr
Abreg o St
CamAguajito
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N Fremont St
Montecito Ave
Garden Rd
El Dorado St
Mark Thomas Dr
Upper Ragsdale Dr
Fremont St
Glenwoo d Cir
Sc e nic
r D
Lighthouse Ave
AguajitoRd
Munras Ave
Pacific St
Mar Vista D r
Del Monte Ave
S Boundary Rd
Skylin e Dr
Naval
Postgraduate
School
Naval
Postgraduate
School
Presidio of
Monterey
Monterey
City Hall
Figure C-2: Hazardous Materials Sites
Data Source: Geotracker Sites, State Water Resources Control Board (SWRCB), 2023; Envirostor Sites, Department of Toxic Substances Control (DTSC), 2023; City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022. 0 0.275 0.55 1.1
Miles
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") Military UST Sites
S Closed Sites
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!( Federal Superfund
!( State Response
!( Voluntary Cleanup
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Sphere of Influence
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Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 169, Packet Page 292 15 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-15

CONSTRUCTION COSTS
The average construction cost for residential development in Monterey was estimated at $123 per square foot for low-density single-family development to $208 per unit for multi-family rental housing in 2017 excluding financing, fees, and builder profit.
24 Using county and regional cost data from projects
applications, the California Tax Credit Allocation Committee has established a construction cost base limit ranging from $311,183 for Single-Room Occupancy and studio apartments to $617,173 for multi-family units with four or more bedrooms.25

AVAILABILITY AND COST OF FINANCING
One of the most significant factors related to the provision of adequate housing for all segments of the population is the availability of financing – both for real estate development and homeownership. Because the projected net operating income from affordable housing developments is lower than that from market rate developments, developers generally have to secure financing from a variety of sources. Project funding sources can generally be divided into three major categories:

1. Equity;

2. “Senior” debt; and,

3. “Subordinate” debt.

Equity
Equity, the funds contributed by the developer, typically include some direct investment by the developer but additional funds are secured from tax credit investors. Because the amount of tax credits generated through a typical project far exceed most developers’ tax liability, other for-profit entities with large tax liabilities (“investors”) or syndicators who act as a broker between the developer and the investors, form a limited partnership with the developer. The partnership then allocates most of the tax credits to the nondeveloper partners in exchange for equity in the project.

Congress created the Low-Income Housing Tax Credit (LIHTC) program in 1986 to help low-income housing developers to raise equity for their projects. Each year, the U.S. Department of the Treasury issues tax credits to states for allocation to low-income housing projects. The California Tax Credit Allocation Committee, the State agency responsible for administering the credit has established additional regulations for allocating the credit. These include giving higher priority to projects near amenities such as public transit, public parks, public libraries, schools, and senior centers.

Because of the high cost of building housing in California and limited availability of federal tax credits, the State legislature also approved a State housing credit to augment the federal tax credits. The State credit is also restricted to projects that are not located in difficult to develop areas (DDAs) or qualified census tracts (QCTs) or, if located in DDAs or QCTs, with projects where 50 percent of the units are for individuals with special needs.26
The Low-Income Housing Fund (LIHF) is a major source of funding for affordable housing in California. 24 Economic & Planning Systems, Draft Memorandum, “Monterey Fort Ord Property—Site Opportunity and Feasibility Analysis”, Table C-1. 25 California Tax Credit Allocation Committee-Development Section, Memorandum, 2022 Threshold Basis Limits, 31 Jan 2022. 26 California Housing Consortium, “Resources: Affordable Housing 101: How is it Built?” https://calhsng.org/resources/affordable-housing-101/how-is-it-built/ Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 170, Packet Page 293 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-16
The LIHF was previously funded through a 20 percent set aside of tax increment earned in the City’s Redevelopment areas. This fund may be used for a variety of purposes, including: (1) preserving long‐term affordability of units, (2) homeless prevention and rapid rehousing, and (3) development of new housing.

As of March 2020, the LIHF had a restricted fund balance of $5.5 million. Since then, $500,000 has been appropriated from the LIHF to fund the COVID-19 Housing Assistance Grant Program. There are only two projects in Monterey receiving financing from the LIHF: Casa de Los Robles, a six-unit special needs development (504 West Franklin Street), and Van Buren Senior Housing with 19 units of housing (669 Van Buren Street).

The California Housing Finance Agency offers grants and loans for ADUs through a group of private lenders. Homeowners with annual incomes less than $300,000 are eligible to apply for up to $40,000 in assistance for pre-development costs including architectural designs, permits, soil and engineering tests and other expenses. Grants may also be used to buy down the interest rate on financing.27 The cost of securing financing to purchase a home also impacts the cost of housing and access to homeownership for lower-income households. At the national level, interest rates were relatively low from 2015-2019, and experienced a significant decline during the COVID-19 pandemic. However, rates have started to increase during 2021 – as interest rates continue to rise, the amount of public subsidy needed to bridge the affordability gap for moderate- and lower-income households will also rise. See Chart B-1 for the change in 30-year fixed rate mortgages since 2013.

The average 30-year mortgage interest rates for December 2022 through March 2023 can be found in Chart B-2 below. After dropping to 3.11 at the end of 2021, mortgage rates increased sharply in 2022 rising to 7.08 percent at the end of October 2022. Since then, rates have stayed at just under 7 percent. Meanwhile, the average home value in Monterey increased from $1.05 million in October 2021 to $1.16 million at the end of September 2022.

Households can usually afford to spend 30 percent of their monthly income on housing. This figure assumes that the household does not have an already high debt to income ratio, or other high monthly expenses.

The Areawide Median Income (AMI) for a four-person household is $90,100, an increase of 31.1 percent above the median income of $68,700 in 2014 but less than a third of what a family could afford to buy a home in Monterey. The most recent average sale prices in mid-March 2023 ranged from $401,948 for a one-bedroom condominium unit to $4,950.000 for an eight-bedroom home on a .4-acre site. With a typical home value of $1,018,379 and an interest rate of 6.16 percent for a 30-year fixed rate mortgage, a family would have to afford monthly housing costs of $5,680 (including $711 for taxes and insurance) a month for the average home. 28
27 Cal HFA, ADU Grant Program, https://www.calhfa.ca.gov/adu/index.htm and https://www.calhfa.ca.gov/adu/homeowner/adu-steps.pdf 28 See https://www.trulia.com/CA/Monterey/93940/ and Mortgage Calculator https://www.trulia.com/mortgagepayment-calculator/ Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 171, Packet Page 294 17 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-17
Chart B-1: National 30-Year Fixed Rate Mortgages, 2013-2023

Chart B-2: Weekly National Fixed Rate Mortgages, December 2022-March 2023 The cost of financing has a substantial effect on the affordability and availability of housing. Interest rates have a significant role in determining the feasibility of development projects, especially residential real estate. Developers typically pass the cost of financing development projects onto buyers or tenants, thus affecting the affordability and availability of housing types for residents. The availability of financing for residents to purchase, refinance, and improve homes is an important analysis of the private market to determine the feasibility of homeownership access.

Source: Freddie Mac, Mortgage Rates Accessed 3/19/23, https://www.freddiemac.com/pmms Source: Bankrate, 30-year mortgage rates today. Accessed 3/19/23 <tinyurl.com/2edpmnc6> Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 172, Packet Page 295 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-18
C.2 Governmental Constraints
The City of Monterey regulates the use and development of land through the General Plan, Zoning Ordinance, Subdivision Ordinance, and a variety of building and site development standards. These requirements are intended to protect the health, safety, and general welfare of the community and to ensure quality housing, they can also unintentionally contribute to delays or increased development costs. Actions taken by Monterey can thus have an impact on both the overall affordability of housing as well as its availability within the city. Governmental constraints that could lead to such cost increases include land use controls, site improvement requirements, building codes, fees, and other local programs to improve the overall quality of housing. The following section assesses the potential for governmental constraints on housing and issues identified will be addressed through programs in Chapter 4, Housing Action Plan.

C.3 Land Use Plans and Policies
2005 General Plan (As Amended)
The General Plan seeks to concentrate new residential development in mixed use neighborhoods within existing commercial areas. The “mixed-use neighborhood” development approach emphasizes the use of existing commercial areas for a combination of activities including residences, retail shops, services, and jobs all in proximity to one another. These areas are designed to be well served by transit and bicycle routes and have a welcoming pedestrian environment. The General Plan proposed to accommodate most of the projected residential development in three mixed- use commercial areas: Downtown, East Downtown, Cannery Row/Lighthouse Avenue, and North Fremont. The Plan maintained the existing pattern of development in Monterey’s residential areas designating two of the three residential classifications for single family development as described below:
• Very Low Density Residential. This category applies to single-family residential areas where the average density is less than two dwellings per acre.
• Low Density Residential. This category applies to single-family residential areas where the average density is between two to eight dwellings per acre.
• Medium Density Residential. This category applies to multiple-family residential areas where the average density is from eight to thirty dwellings per acre. Residential land uses in this category include duplexes, condominiums, and apartments.

The Plan anticipated that less than seven percent of the new residential development would be in singlefamily areas through the planning horizon and the majority of the projected 2,135 units would be the new mixed-use neighborhoods.29 The adopted General Plan would not accommodate the new Regional Housing Needs Allocation of 3,654 housing units and amendments will be required to accommodate the new RHNA number.

Local Coastal Plans
The California Coastal Act requires cities and counties in the state’s Coastal Zone to enact and implement plans to manage coastal development. The LCPs must include policies and standards consistent with the Coastal Act to address issues such as shoreline public access, recreation, protection of natural and visual resources, planning for coastal-related industries and, effective January 1, 2022, protection against sea-level 29 City of Monterey General Plan, amended to June 2019, pp. 17-18 Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 173, Packet Page 296 19 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-19
rise. The City of Monterey originally adopted a series of Land Use Plans (LUPs) to comply with the California Coastal Act. During the 1980s, Monterey divided its coastal planning area into five subareas— Cannery Row, Monterey Harbor, Del Monte Beach, Skyline, and Laguna Grande and prepared separate land use plans for each of these areas.

The Coastal Commission certified each of the land use plans, except for the Laguna Grande Plan, but the City never prepared or adopted the required implementation plan. Monterey is now completing preparation of a single land use plan consolidating all five subareas along with an implementation plan for adoption by the City Council and certification by the California Coastal Commission.30 Until such time the Commission certifies the city’s LCP, development up to 1,000 yards inland is potentially subject to review by the Coastal Commission for approval of a Coastal Development Permit.

The Coastal Act emphasizes the protection of low and moderate-income housing within the Coastal Zone.

Government Code Section 65590 prohibits conversion or demolition of existing housing in the coastal zone occupied by low- or moderate-income persons and households unless provision has been made for the replacement of those units with comparable units on the same site or, if that isn’t feasible, within three miles of the coastal zone. With respect to new development, however, many of the recent State laws intended to create additional opportunities for housing development and removing obstacles to residential development do not apply to development in the Coastal Zone. For example, the requirement for ministerial approval of ADUs and proposals to develop two or fewer units and urban lot splits pursuant to SB9 do not supersede the Coastal Act, and consequently, many coastal cities have found it difficult to meet the new housing mandates in a manner that does not conflict with the Coastal Act.

A memo from the Coastal Commission recommended that “local governments should adopt LCP amendments with standards that harmonize with SB 9 requirements as much as is feasible and that also ensure such new development is consistent with the Coastal Act and any applicable LCP policies, including requirements relating to notice of local decisions to the public and the Commission.” One option for the City is to update its LCP to create a checklist of objective standards for qualifying projects so that little or no discretion is involved when considering them. The fact that the City has not yet adopted an LCP for certification by the Coastal Commission creates an additional obstacle for residential development within the Coastal Zone in Monterey.

Specific and Neighborhood Plans
In addition to the General Plan and Coastal Plans, Monterey has adopted plans that include policies and standards affecting residential development. The following summaries list the specific plans focusing on issues related to housing.

North Fremont Specific Plan
The North Fremont Specific Plan was adopted in April 2014 and amended in August 2016. The Planning Area consists of approximately 47.7 acres on both sides of the 0.87-mile North Fremont Street from the eastern City limits west to State Highway 1. The area is designated by the City’s General Plan as one of three “Mixed-Use Neighborhoods” along with Downtown/East Downtown, Cannery Row and Lighthouse Avenue described below. The Plan aims to direct future population growth into mixed use areas by emphasizing attractive design concepts and development guidelines that will provide unique character, 30 The City of Monterey Local Coastal Program,
https://www.monterey.org/city_hall/community_development/planning/planning_projects/local_coastal_program. php
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improved pedestrian experience, commercial opportunities, connections to the neighborhood, and bus transportation. Buildout projections list 130 new dwelling units on North Fremont Street and 50,000 square feet of new commercial development. The Plan encourages residential development as part of mixed-use projects and specifies alternatives for streetscapes, parking, and circulation as the area carries significant traffic from Highway 1.

Lighthouse Specific Plan
The Lighthouse Specific Plan was adopted September 6, 2016 and amended November 2016. The Plan guides the future development of the mixed-use area along Lighthouse Avenue and Foam Street, containing residences, retail shops, and services. The Planning Area includes the Lighthouse Avenue and Foam Street corridors, bordered by the Pacific Grove City Limits at David Avenue to the Lighthouse Tunnel and connecting side streets adjacent to the Lower Presidio area. The main objective of the Lighthouse Specific Plan is to guide development of a transit-oriented mixed-use community and revitalized destination point. Buildout projections include accommodating up to 113 dwelling units (as part of the 260 units projected by the 2005 General Plan) and a 35,000 square foot net increase in total commercial land use. The Plan includes design objectives, guidelines, and standards for land use and development provides guidance for improved bicycle boulevards, streetscapes, sewer collection, storm drainage, low impact design, and utility undergrounding.

Downtown Specific Plan
The Downtown Specific Plan was adopted in October 2013 and most recently amended in May 2020. The Planning Area encompasses approximately 106 acres in both Downtown and East Downtown. The Plan aims to develop a clean, enticing, and safe environment that provides gathering spaces and draws visitors into the area and offers a variety of services, events, and retail establishments. It establishes nine districts within its Planning Area and identifies several opportunity sites for commercial and residential development. Of the nine districts, Pearl District has the potential to accommodate housing at a higher density, while Pierce Street has several small lots that could also be developed with residential uses. The Pearl District, however, is subject to a density cap of 186 units imposed by the City Council in 2019 (see Resolution 19-211, Amend the Downtown Specific Plan to Establish a Density Cap Overlay). This amendment removed density restrictions on individual parcels and allowed development of any site in the Pearl District up to a height of four stories without any restriction on density as long as the maximum number of units in the entire 6.2-acre area did not exceed 30 units per acre. This amendment appears consistent with Government Code 66300 (Housing Crisis Act of 2019, which the Governor signed into law on October 9, 2019. Downtown buildout projections include 912 residential units, with the caveat that limited water sources will restrict the scenario to 260 units, and a total of 50,000 square feet of commercial use. The Plan provides for potential conversion of six segments of one-way street into two-way traffic and relocating the Monterey-Salinas Transit (MST) station from Simoneau Plaza to the Washington Street area.

Cannery Row Conservation District Design Program
The Cannery Row Conservation District design program was adopted April 6, 2004. The purpose of the design program is to maintain and preserve the traditional and historic character of the Cannery Row destination, providing guidance for improvement projects, new buildings, and alterations to existing structures. The design guidelines build on the City of Monterey General Plan, the Cannery Row Land Use Plan, the City of Monterey Zoning Ordinance, the Cannery Row Streetscape Study, and the Monterey Peninsula Recreational Trail Policies and Standards for Adjacent Development. Specific design goals include maintaining traditional character, accommodating compatible changes, preserving historic resources, and strengthening the overall identity of the district. The program does not include specific buildout projections.

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East Del Monte Avenue Area Plan
The East Del Monte Avenue Area Plan was adopted September 1986. The Plan aims to implement General Plan policies focused on protecting and enhancing scenic gateways along Del Monte Avenue and screening commercial uses through design, landscape, and parking standards such as reducing street parking. The Plan includes eight small areas north and south of Del Monte Avenue, mostly between Highway 1 and Palo Verde Avenue, except for one area which extends to two small blocks beyond Highway 1. The area includes industrial and commercial uses, as well as natural landscape that has access to the Monterey Bay Coastal Recreation Trail. No buildout projections are included, though the Plan suggests rezoning one of the areas from commercial space to residential, which it is today.

Ryan Ranch Area Plan
The Ryan Ranch at Monterey Plan dates from September 1980 and was revised most recently in August 1987. The Plan Area consists of 309 acres stretching from Highway 68 between York and Canyon del Rey Roads, northeastward to the Ford Ord boundary at roughly South Boundary Road. Ryan Ranch lies entirely in the City of Monterey. The Plan aims to guide development for Ryan Ranch to include a 213-acre Industrial Park for 29 sites, a 75-acre City Park, a 3.5-acre parcel for service commercial needs, and 17.5 acres of public internal streets. The Plan describes uses and standards for the area, which today provides a variety of uses, including medical facilities, CSUMB operations, a shipping center, a law office, and a veterinarian office. The existing Plan does not propose any residential uses., which are limited due to airport safety zone regulations.

C.4 Land Use and Development Regulations
Monterey regulates the type, location, density, and scale of residential development through its zoning and subdivision ordinances, as well as through standards in its specific plans, all of which must be consistent with the General Plan. These regulations are also intended to achieve other purposes, such as to provide a “precise guide” for the physical development of the city, to preserve the character and quality of existing residential neighborhoods, to conserve and enhance architectural and cultural resources and key visual features of Monterey’s setting, to prevent the population from exceeding General Plan limits, and provide for “review of the appearance of new development to preserve the beauty of the city.” The Monterey Zoning Ordinance (Chapter 38 of the City Code) allows residential development in all residential and commercial zones, as shown on Table C-3: Permitted Housing Types by Zoning District; however, except for single family residences, many other types of housing require a Use Permit approved by the Zoning Administrator (ZA) or Planning Commission (PC) and design review by the Architectural Review Committee (ARC). These discretionary review procedures can be a constraint to residential development due to their cost and the time required for review and approval. Moreover, these discretionary approvals are subject to environmental review and to appeal, all of which increase uncertainty for applicants.

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The residential development standards for the various zoning districts are summarized in Table C-4 Residential Development Standards on the following pages. Residential densities in PC districts may not exceed the maximum the General Plan permits and height, setbacks, open space, development intensity, and performance standards are as applicable to the underlying district. The PC Plan or Specific Plan may, however, establish different and additional standards for other development features. (Monterey Zoning Code, Section 38-53)
Parking Standards
Required parking can significantly increase project development costs and reduce the feasibility of residential development. The Housing Action Plan commits the City to reviewing existing parking standards and making revisions to ensure they are appropriate in light of anticipated parking demand and comply with applicable State requirements mandating reduced parking based in proximity to transit. These mandates include the passage of AB 2097, which added Government Code Section 65863.2 prohibiting the imposition of minimum parking standards within a half mile of public transit.

Table C-3: Permitted Housing Types by Zoning District
P Permitted subject to zoning compliance determination
U Conditional Use Permit
X Not permitted
Use Type Zoning District
RE R1 R2 R3 C1 C2 C3 CO CR
Single-Family P P P P U U X U X
Accessory
Dwelling Units P P P P P P P P P
Mixed Use X X X X U U U U U
Multi-Family
2-3 units X X P P P P P P P
4 + units X X U U U U U U U
Group Residential X X X P X U X X X
Emergency Shelter X X X X P P P P X
Residential CareLimited P P P P X X X X X
Residential Care -
General1 U U U U X X X U X
Single-Room
Occupancy X2 X2 X2 X2 X2 X2 X2 X2 X2
Supportive
Housing
2-3 units P P P P P P P P P
4 + units U U U U U U U
Transitional
Housing
2-3 units P P P P P P P P P
4 + units U U U U U U U U
Notes:

1. Classification includes homeless shelters (Zoning Code Section 38-17. P).

2. SROs not specifically mentioned.

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C-23
Table C-4: Development Standards by Zoning District
Zone Minimum Lot
Area Height Front
Setback Side Setback Rear Setback Maximum Lot
Coverage %
Maximum
FAR %
R-E-20 to
R-E-5A
20,000 sq. ft.
to 5 acres
2½ stories and
30 ft
35 ft First story: combined 20%
of lot width, 15 ft
minimum; second story:
30% of lot width, 15 ft.
minimum. Corner side: 20
percent of the lot width
but not more than 25 feet.
35 ft, or 20%
of lot depth,
but not less
than 10 ft on
lots less than
100 ft in
depth
35 40
R-1-5 to R1-405,000 to
40,000 sq. ft.
2 stories and
25 ft.
15 ft
(house); 20
ft parking
First story: combined 20%
of lot width, 4 ft minimum
and 10 ft maximum; second
story: combined 40% of lot
width, 7ft minimum and 10
ft maximum. Corner side:
20 percent of lot width; 10
foot minimum, 15 foot
maximum.
20 ft 40 one-story
buildings; 35
two or more
story
buildings
40 R-2-5 to R2-205,000 to
20,000 sq. ft.
2 stories and
25 ft.
20 ft 5 ft, or for single-family
residences, 10% of lot
width, 4 ft minimum, or for
multi-family dwellings, shall
be increased at the rate of
2 ft per story for each
story, min 15 ft. Corner
side: 20 percent of lot
width; 10 foot minimum,
15 foot maximum.
15 ft, or for
single-family
residences
less than 100
ft in depth,
20% of lot
depth, no
less than 10
ft, or for two
story
structures,
20 ft.
35 35, or up to
40 for
secondary
units that
are attached
to the
primary unit
and on lots
5,000 sf or
greater
R-3-5 to R3-20)5,000 to
20,000 sq. ft.
2 stories or 25
ft
20 ft 5 ft, or for single-family
residences:

Minimum 10% of lot
width, 4 ft minimum; multifamily dwellings setback
increased 2 ft per story for
each story. Corner side: 20
15 ft, or for
single-family
residences
on lots less
than 100 ft
in depth,
20% of lot
402 35 3, 4
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Table C-4: Development Standards by Zoning District
Zone Minimum Lot
Area Height Front
Setback Side Setback Rear Setback Maximum Lot
Coverage %
Maximum
FAR %
percent of lot width; 10-foot
minimum, 15-foot maximum.

On corner lots, attached or
detached garages opening
onto the side street shall be
at least 30 feet from the side
property line.
depth, 10 ft
minimum
C-1 5,000 2 stories or 25
ft
05 05 105 506 NA
C-2 5,000 2 stories or 25
ft; 3
stories and 35
ft7
05 05 05 506 NA
C-3 10,000 2 stories or 25
ft;
3 stories, 35
ft7
05, 8 05 05 506 NA
CO 15,000 2 stories or 25
ft;
3 stories, 35
ft7
20 5 ft, or two-and threestory buildings 10 ft.

Corner Side: 20% of width,
min. 10 ft. max. 15 ft.
10 50 NA
CR10 5,000 4 stories and
45 ft; for
multi-family
residential 15
ft plus 3 ft for
each story
over three
0 Multi-family residential, 15
ft plus 3 ft for each story
over three.

Corner side: 10 ft
0 NA11 Waterfront side
of CR, 2.

Opposite or
nonwaterfront
side of CR 3
PC-D
(Downwntown
Specific
Plan)
0 Alvarado
District, 4
stories; East
Village
District, 3
stories; Pearl
District, 3
0 0 0 NA NA
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C-25
Table C-4: Development Standards by Zoning District
Zone Minimum Lot
Area Height Front
Setback Side Setback Rear Setback Maximum Lot
Coverage %
Maximum
FAR %
stories; All
other districts
2 stories.11
PC-NF
(North
Fremont
Specific
Plan
0 Buildings
fronting North
Fremont: 35 ft.

Up to 50 ft in
the Visitor
Serving Area
on the south
side of North
Fremont with
a use permit.
0 (projects
shall be
“predomina
ntly ...built
to back of
sidewalk.”
15 ft for
projects
fronting on
Bruce
Lane.12
5-10 (corner side of
ground floor residential13
0 PC-LH
(Lighthous
e specific
Plan)
0 One and two
story buildings
are preferred;
Three story
buildings (35
foot maximum
height) may be
permitted
subject to
objectives;
exceptions to
numerical limits
may be
permitted
subject to ARC
review and are
subject to
accessibility
requirements.
0 0 0 NA NA
Notes:

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Table C-4: Development Standards by Zoning District
Zone Minimum Lot
Area Height Front
Setback Side Setback Rear Setback Maximum Lot
Coverage %
Maximum
FAR %

1. On lots 5,000 square feet or larger, 40% FAR for secondary units that are attached to the primary unit.

2. 35%, except that lots greater than 5,000 square feet are allowed an additional 1% per 1,000 square feet of additional lot coverage, up to maximum of 40% excluding uncovered decks and stairways

3. No more than 50% of the dwelling units on any parcel may consist of apartments less than or equal to 500 square feet in area. Except for mixed use and senior citizen apartment developments, at least one third of any apartment development of three or more units shall consist of two or more bedrooms.

4. The permitted floor area of one single-family dwelling on a lot, measured to exterior dimensions, may be increased to maximum of 40% of total lot area; provided, that all provisions of the R-1 zone concerning floor area ratio, setbacks and lot coverage are met. For parcels under 3,600 square feet, the permitted floor area shall not exceed 35%.

5. Abutting or fronting on an R district, standards of adjacent district apply.

6. Use Permit required for coverage 50% or more.

7. Use Permit required.

8. Along East Del Monte Avenue, average yard is 15 feet and minimum yard is 10 feet.

9. Ten feet for two- and three-story buildings.

10. Multifamily residential development must comply with the R-3 District standards.

11. Planning Commission may exempt from coverage requirements: (1) certain structures when open on all sides, such as covered walks, if accessory to major buildings, and (2) underground parking structures upon finding that they are consistent with the purpose and intent of the CR District.

12. Bruce Lane 15, North Fremont 0, side streets 5-10 ft.

13. Density Cap Overlay allows up to four stories for projects with at least 50% of FAR dedicated to residential use.

14. Planning Commission may modify any development standard to permit project consistent with Cannery Row LCP to respect historic character of Cannery Row structures and architectural character, pedestrian scale, and perspective of Cannery Row buildings.

Source: City of Monterey Zoning Ordinance, October 2022: Downtown Specific Plan, August 2010; North Fremont Specific Plan, April 1, 2014, rev. August 17, 2016.

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Table C-5: Off-Street Parking Requirements for Residential Uses Use Type Required Spaces
Source: City of Monterey Zoning Ordinance, October 2022 The Downtown and North Fremont Specific Plans have less stringent parking requirements. For parking in the North Fremont area, the maximum required parking for residential uses is 1.5 spaces per unit, and residential projects in the Downtown Plan Area must provide .5 space per unit. Additionally, all new residential projects in these Specific Plan Areas are required to “unbundle” parking, which can make the cost of housing less expensive for residents by creating a separate optional charge for those who want a parking space. Parking requirements may also be met with an in-lieu fee and shared parking is allowed between:
• different uses within a single mixed-use building;
• residential buildings and an off-site parking facility, provided that the off- site facility is within 1,000 feet of the building entrance; and,
• non-residential buildings and an off-site parking facility, provided that the off-site facility is within 1,250 feet of the building entrance.

In the Downtown and North Fremont Specific Plans Areas, off-site shared parking located farther than 1,000 feet may be permitted at the discretion of staff with documentation that reasonable provision has been made to allow off-site parkers to access the principal use (e.g. shuttle bus, valet parking service, free transit passes, etc.).

Single Family
Lots under 5000 sq. ft. One covered outside front setback Lots 5000 sq. ft. or more Two including one covered outside front setback1 Accessory Dwelling Unit2 One additional per unit or bedroom, whichever is less, with exceptions per State law.

Multi-Family Rental3
Studio 1.2
One-Bedroom 1.5
Two-Bedroom 2
Three or more bedrooms 2.5
Buildings w. 25 or more units 2 per unit
Multi-Family Condominium and Condo Conversions4
Studio to Two-Bedrooms 2 including one covered
Three or more Bedrooms 3 including one covered
Residential Care, General 1 per 3 beds
Senior or Elderly .5 per unit
Group Residential 1 per guest room
Mixed-Use (residential apartment units) 1 permanently assigned per unit (no covered parking)
Notes:

1. Tandem permitted

2. Covered parking not required for units created through conversion to residential in Multi-Family Residential Overlay.

3. Every unit must have at least one permanently assigned parking space for each unit. Covered parking spaces are not required. Units over 1,000 sq. ft. may be required to conform to Multi-family, Rental and Multi-family, Condominium requirements. A portion of the required parking, as determined by the Planning Commission on a case-by-case basis, shall be set aside for visitor parking and shall be uniformly distributed throughout the development.

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Specific Plan Development Standards
Within the Downtown and North Fremont Specific Plan areas, residential uses (single family, multi-family, and single room occupancy units) are permitted uses. The Council amended the Plans in 2021 to remove the requirement for a use permit to allow residential uses on the ground floor (City Council Resolution 21- 129). The same resolution also modified the requirements limiting residential units along the street frontage in the Alvarado District between Alvarado Street and the first block of Del Monte Avenue and Franklin Street. Ground floor residential is conditionally allowed (i.e., use permit required) on Calle Principal and Tyler Streets. Second floor residential uses are permitted uses in all specific plan areas, except those designated for public recreation. The permitted density is 30 units per acre in all specific plan areas, except for the Alvarado District, where up to 100 units/acre is permitted. The North Fremont Specific Plan allows for densities that exceed 30 units/acre if the project is “of exceptional design, implements the vision of the North Fremont Specific Plan and is consistent with all applicable design objectives with no exceptions”.

The Lighthouse Specific Plan allows mixed-use projects to have ground floorresidential uses located behind commercial uses and along the street frontage in some areas within the Lighthouse Avenue Character Area.

Residential uses with three units or less are permitted on the first floor in both the Lighthouse Avenue and Foam Street Character Areas, but residential uses with four units or more on the first floor require a conditional use permit. Residential uses above the first floor in the Lighthouse Avenue and Foam Street Character Area are permitted. A use permit is required if the density exceeds 30 units per acre.

Commercial Zoning District Standards for Mixed-Use Development Monterey permits mixed-use projects in all commercial districts subject to approval of a use permit. Section 38-33, Supplemental Regulations Applicable to C Districts requires that mixed-use development meet the development standards of the underlying zone with several qualifications and exceptions, some of which do not meet State requirements that regulations applicable to mixed-use projects (i.e., developments with at least two-thirds of the floor area designated for residential use) be “objective standards.” Specifically, the following provisions from the existing code are subjective and should be revised:
• Commercial and office uses shall be the predominant street frontage use in a mixed-use project; • Mixed-use developments should be compatible with the existing design elements of the surrounding area. The development should not look like an apartment building, if the predominant design is commercial; and,
• Density may exceed 30 units per acre if Planning Commission determines that additional units will make the mixed-use building size and height compatible with adjoining buildings.

The Housing Action Plan (Chapter 4) includes a program that commits the City to review and revision of the standards for mixed-use projects to ensure compliance with the State requirements for limiting standards applicable to residential development to objective standards that involve no personal or subjective judgment by a public official and which are uniformly verifiable by reference to an external and uniform benchmark or criterion.

Subdivision and On- and Off-Site Improvements
Chapter 33 of the Monterey City Code establishes standards and procedures for subdivisions including required off-site improvements. Section 33-2 states that subdivisions must comply with the General Plan and Zoning Ordinance as well as the specific provisions regulating subdivisions. The ordinance also directs planning authorities charged with implementing the subdivision requirements to “consider their effect on the housing needs of the region and balance these needs against the public service needs of the City’s residents and available fiscal and environmental resources.” Monterey is in the process of amending its Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 183, Packet Page 306 29 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-29
zoning and subdivision requirements to ensure compliance with the requirement enacted by SB 9 to allow division of lots in single-family residential districts. The new requirements, which are codified in State Government Code Sections 65852.21.21 and 66411.7 require ministerial approval of a housing development with no more than two primary units in a single-family zone or subdivision of a parcel in a single-family zone into two parcels subject to compliance with objective development standards and requirements in the State law.

Chapter 33 incorporates the basic requirements applicable to land divisions in the State Subdivision Map Act but establishes additional requirements for residential, hillside, nonresidential and tandem lot subdivisions. The requirements for residential condominiums (Section 33-9) establish additional requirements for residential condominium conversion projects including minimum standards for noise and sound transmission, recycling and waste enclosures, correction of immediate hazards and minimum building and site improvements intended to bring conversion projects into closer compliance with requirements for new residential projects. Although compliance with development standards and requirements for on- and off-site improvements increase the cost of developing condominium projects, Monterey has established a number of provisions intended to protect and assist lower income households.

Protections for Lower Income Households
Chapter 8, Section 8-1 and Article 2, Section 33-9 establishes inclusionary housing requirements for new subdivisions and condominium conversions with more than six units and establishes other requirements to protect lower income households and expand their housing opportunities. These include provisions for tenant relocation assistance and requirements for developers to provide incentives intended to increase homeownership in the city. Condominium developers must prepare an Ownership Assistance Plan that documents measures that will be provided to assist existing tenants in conversions, others who are current renters in the city, and employees working in Monterey to purchase condominium units. The City Council may impose other requirements to help achieve the city’s goal of ensuring at least 50 percent of the units in a condominium subdivision are owner occupied and purchased by tenants residing in rental units in the City of Monterey, by employees working in the city, or by existing tenants in apartments that are proposed for conversion.

C.5 Provision for a Variety of Housing Types
Housing Element law specifies that jurisdictions must identify adequate sites to be made available through appropriate zoning and development standards to encourage development of various types of housing for all economic segments of the population. This includes single-family housing, multi-family housing, manufactured housing, mobile homes, emergency shelters, and transitional housing, among others. Table C-3 above summarizes the existing use regulations applicable to various housing types.

Accessory Dwelling Units
The State first enacted regulations for Accessory Dwelling Units (ADUs) in 1982 with the addition of Government Code Section 65852.2, which authorized local agencies to approve second units through a conditional use permit process. The law has been amended several times since then, most recently with the adoption of SB 897 and AB 2221, which specified that design and development standards applicable to ADUs must be objective, increased the minimum heights limits to 18 to 20 feet for detached ADUs within a half-mile walk of a major transit stop or 25 feet for an attached ADU, and made other changes to facilitate ADU development.

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The City’s current zoning ordinance includes two sets of provisions applicable to ADUs. Section 38-112.6, Accessory Dwelling Units and Junior Accessory Dwelling Units (JADUs), adopted in November 2021 revised the City’s requirements to comply with amendments the State adopted to that date. In November 2022, the City Council enacted further revisions to the regulations to make its requirements consistent with the most recent changes to State law. The on-line version of the Zoning Code (https://monterey.municipal.codes/Code/38) may not reflect all of the revisions the Council has adopted.

The Housing Action Plan includes a program to ensure that the on-line Code is regularly updated to incorporate City actions.

A variety of information about ADUs and JADUs, including a step-by-step guide to the approval process, a list of common questions, and links to the HCD ADU Handbook and other guidance materials from HCD and other sources is also available from the City of Monterey Building and Safety Office webpage.

Emergency Shelters
The 2022 Point-in-Time Count found 101 persons experiencing homelessness in the City of Monterey in 2022. Of these, 74 were unsheltered and 27 were living in shelters.31 This is a 50 percent decline from 2019 when the count identified 204 homeless individuals. The 17 percent decrease in homelessness across Monterey County was mirrored across its sheltered and unsheltered populations. Of the jurisdictions in the county, Pacific Grove and Del Rey Oaks were the only two cities to experience increases. The census of homeless persons was conducted on January 29 and March 31, 2022, and included an early morning count of unsheltered individuals and families sleeping outdoors on the street; at bus and train stations; in parks, tents, and makeshift shelters; and in vehicles and on abandoned properties as well as a nighttime count of individuals and families staying at publicly and privately-operated shelters.32 The vast majority of respondents interviewed in a follow-up survey (85 percent) reported they had been homeless for a year or longer, representing a substantial increase from 2019 when 63 percent said they had been homeless for a year or more. The majority (83 percent) reported that they were living in Monterey County at the time they became homeless; 80 percent said they had been living in the county for five years or longer, and 64 percent said they had been County residents 10 years or more. Just over a third of the survey respondents reported they were living in a home owned or rented by them or their partner before becoming homeless, which represented a decline from 2019 when 46 percent gave this response. The majority (50 percent) of respondents said that financial issues were the primary cause of their homelessness, a significant increase from previous years. Just over a third cited alcohol or drug use, 29 percent said incarceration, and 23 percent cited mental health issues. When asked about obstacles to obtaining permanent housing, the most common response was the cost of renting. Only 10 percent said they had received a housing voucher of some kind during the previous 12 months but only 21 percent of those with vouchers reported that they were able to use their vouchers.32 State law requires the Housing Element to address planning and approval requirements for emergency shelters. Jurisdictions with an unmet need for emergency shelters for persons experiencing homelessness 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. California Health and Safety Code 31 Monterey County Point-In-Time Homeless Count https://chsp.org/wpcontent/uploads/2022/07/2022montereyfinalV2.pdf Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 185, Packet Page 308 31 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-31
Section 50801(e) defines an emergency shelter as “housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less by a homeless person.” In 2015, the city established the Safe Parking Program (Monterey Zoning Code Section 38-126), which allows the use of existing parking lots on a temporary basis to provide individuals and families living in vehicles with a safe place to park overnight while working towards a transition to permanent housing.

Parking programs must be managed by a social service provider.

In 2017, the City of Monterey amended its Zoning Ordinance to establish an emergency shelter overlay district to facilitate the provision of emergency shelter for homeless persons and in compliance with Government Code Section 65583 (a)(4). The ordinance, which Monterey adopted in response to Senate Bill (SB) 2 (Cedillo, 2007) requiring the City to allow emergency shelters without any discretionary action in at least one zone appropriate for permanent emergency shelters, establishes objective development and management standards as allowed by the State. These standards include:
• Allowing a maximum of 35 beds or persons to be served nightly by the facility; • Off-street parking based upon demonstrated need, provided that the standards do not require more parking for emergency shelters than for other residential or commercial uses within the same zone; • The size and location of exterior and interior on-site waiting and client intake areas; • The provision of on-site management;
• A minimum separation of 300 feet from another emergency shelter; • A maximum six-month length of stay by a homeless person ; • Maximum light levels and spacing; and
• Security during hours that the emergency shelter is in operation.

The existing Code allows emergency shelters by right in the C1, C2, C, and CO districts. Recent amendments to the requirements in Section 65583(a)(4) require local governments with zoning that only allows shelters by right on sites zoned for nonresidential uses must demonstrate that these sites are located near amenities and services that serve people experiencing homelessness, such as health care, transportation, retail, employment and social services, or that the local government provides free transportation to these services or offers them on site. Moreover, there must be sufficient sites to provide at least 200 square feet per person unless the local agency already has one or more shelters that have provide denser accommodations. (See sub-sections (4) (H) through (4) (J). As noted above, the 2022 Point-in-Time Count found 101 persons experiencing homelessness in the City of Monterey, which would require sufficient area to provide a total of at least 20,200 square feet to meet the State requirements.

Section 38-99.2 of the Zoning Code limits the number and capacity of shelters allowed in the Overlay District to “that required to meet the shelter needs of the number of estimated homeless persons in the City identified in the City’s housing element.” This provision may be too restrictive given possible fluctuation in the number of unhoused persons over the duration of the eight-year planning period and may conflict with State requirements. Government Code 65583(a)(4)requires cities to enact zoning regulations that will make it possible to accommodate the need for emergency shelters based on the capacity needed to accommodate the most recent count of homeless persons conducted before the start of the planning period. The estimate also needs to consider the number of beds available on a year-round and seasonal basis, the number of shelter beds that go unused on an average monthly basis within a one-year period, and the percentage of those in emergency shelters that move to permanent housing solutions.

In 2019, the State enacted Assembly Bill 101, which amended the Government Code Section 65660 to require municipalities to permit a Low Barrier Navigation Center (LNBC) to be permitted by right in Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 186, Packet Page 309 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-32
mixed-use districts and nonresidential zones that permit multifamily development. A LNBC is defined as a “housing-first, low-barrier, temporary, services-enriched shelter focused on helping homeless individuals and families to quickly obtain permanent housing.” As noted above, the existing code allows emergency shelters in all mixed use and most nonresidential zones that permit multifamily development.

Employee and Farmworker Housing
Housing elements must ensure that local zoning, development standards, and permitting processes comply with State Health and Safety Code Sections 17021.5 and 17021.6. This generally requires employee housing for six or fewer persons to be treated as a single-family structure and residential use. The City’s zoning, development standards and permitting processes currently comply with the State Employee Housing Act (Health and Safety Code Sections 17021) which requires employee housing for six of fewer persons to be treated as a single- family structure and residential use. The Act also allows farmworker housing with up to 12 units or accommodations for 36 persons by-right in any zone where agriculture is a permitted use. No conditional use permit, zoning variance, or other zoning clearance may be required for this type of employee housing.

The special housing needs of many agricultural workers is due to their generally lower wages and the insecure nature of their employment. Only 281 workers representing about 2 percent of the city’s work force were employed in agricultural and natural resources industries in 2019, compared with 29,975 (15.6 percent) of all workers in Monterey County.32 Census data indicates that there were only 157 persons that worked in agricultural, fishing, forestry, hunting, and/or mining. Because there is no land within the City limit that the General Plan or Zoning Ordinance classifies or designates for agricultural use, it is likely that the workers identified as being engaged in agriculture, work in other businesses associated with this use.

As such, the demand for housing generated by farmworkers in the City of Monterey is likely to be nominal and can be addressed through other types of affordable housing.

The Housing Authority of Monterey County operates Migrant and Permanent Farm Labor housing with a total of 215 housing units for this targeted population. Farmworker housing available in Monterey County includes a 100-unit housing project for migrant farm worker in Spreckels developed by Tanimura & Antle, an agricultural company, completed 2016.33 Section 17021.6, which generally requires employee housing consisting or not more than 36 beds in group quarters or 12 units or less designed for use by a single family or household to be treated as an agricultural use, does not apply to the City of Monterey because there are no agricultural zoning districts or agricultural lands.

Housing for Extremely Low-Income Households
Assembly Bill 2634 (Lieber, 2006) requires the quantification and analysis of existing and projected housing needs of extremely low-income households. Housing elements must also identify zoning to encourage and facilitate supportive housing and single-room occupancy units (SROs). Extremely low-income households typically comprise persons with special housing needs, including, but not limited to, persons experiencing homelessness or near- homelessness, persons with substance abuse problems, and farmworkers. The Downtown, North Fremont, and Lighthouse Area Specific Plans all include a definition for Single Room Occupancy (SRO) facilities but do not specify what type of approval Monterey requires for this land use. A program has been added to the Housing Action Plan (Chapter 4) to address this. 32 U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table C24030. 33 https://www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2017/01/05/could-good-affordable-housingsolve-farmworker-shortage Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 187, Packet Page 310 33 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-33
Mobile/Manufactured Homes
Mobile homes (also referred to as manufactured homes) are considered single-family homes and are treated as such, given that they are certified under the National Mobile Home Construction and Safety Standards Act of 1974, which are installed on a permanent foundation approved by the City. Manufactured homes – including mobile homes and pre-fabricated homes – have the potential to reduce housing development costs.

The existing Monterey Zoning Code defines manufactured homes to include both mobile homes and modular housing that meets federal standards for manufactured homes. (Section 38-11, Definitions. Section 38-14 of the Code classifies manufactured homes (mobile homes and factory-built housing) as either single-family or multifamily residential depending on the number of units provided.

The Code includes some standards that may impede the use of either mobile homes or manufactured housing to help meet Monterey’s housing needs. These include the requirement for obtaining a Certificate of Compatibility that must be renewed every two years and prohibiting manufactured homes on lots with an average slope exceeding 10 percent. (Monterey Zoning Code Section 38-26. H.2). In contrast to Seaside, Pacific Grove, other nearby cities and unincorporated Monterey County, there are no mobile home parks within the Monterey City limits and the Monterey zoning code does not define or establish any specific provisions for such use.

Mobile home parks, which are typically defined as sites under one ownership that are planned and developed to accommodate two or more manufactured homes for non-transient use, offer an affordable housing option to many low- and moderate-income households.

The Monterey Subdivision ordinance includes requirements that any proposal to convert a mobile home park to another use include a report on the impact of the conversion upon displaced park residents. The subdivider is required to provide each resident with a copy of the report and the Planning Commission may require the subdivider to mitigate adverse impacts of the conversion on park residents. (Chapter 33, Section 33-41, Mobile home Parks)
Multi-Family Housing
In 2019 Monterey amended the Zoning Code to establish a Multifamily Residential Overlay District allowing the development of up to 405 units at a maximum density of 30 units per acre in the Industrial zoned area along Garden Road. (Monterey Zoning Code Article 16C, Multifamily Residential Overlay Districts). The regulations include development standards that are somewhat less stringent than otherwise applicable to multi-family development. To date, the City has approved 89 units and the City anticipates construction of these units. It is important to note that all these projects were downsized to meet on-site water credits. The developer was interested in building more affordable housing at the various sites, but water credits were not available. The City also sought relief from the State Water Resources Control Board for these projects but the request was denied.

In all the other districts where multi-family development is allowed, projects with three or fewer units are permitted by right and larger projects require Planning Commission approval of a use permit. Issuance of a use permit requires the planning authority to make findings based on information in the record that the proposed use:

1. Is in accord with the objectives of this Code and the purposes of the zone;

2. Will be consistent with the General Plan;

3. Will not be detrimental to the public health, safety, or welfare of persons residing or working in or adjacent to the neighborhood of such use, and will not be detrimental to properties or improvements in the vicinity or to the general welfare of the city; and,

4. Will comply with any specific condition required for that use.

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When the project is proposed to be a new condominium or a condominium conversion, approval of the use permit also requires a determination that the applicant has demonstrated:

1. Financial ability to carry out the proposed project;

2. That construction will start within 30 months of project approval of the project; and,

3. Completion of construction within a reasonable time, as determined by the Planning Commission.

Multi-family housing projects may also be subject to architectural review (Zoning Code Article 25). This analysis includes further discussion below regarding the constraints that these procedures create for multifamily and other housing types.

Residential Care Facilities
Residential Community Care Facilities (CCFs) are licensed by the Community Care Licensing Division of the State Department of Social Services to provide 24-hour non-medical residential care to children and adults with developmental disabilities who need personal services, supervision, and/or assistance essential for self-protection or sustaining the activities of daily living. The California Health and Safety Code requires that any licensed residential facility serving six or fewer persons (small residential care) must be treated like a single-family home. This means that such facilities must be a permitted use in all residential zones in which a single-family home is permitted and may only be subject to the same regulations applicable to single-family homes. This mandate applies to virtually all licensed group homes including, but not limited to facilities for persons with disabilities, residential care facilities for the elderly, and facilities for alcohol and drug treatment.

The Monterey Zoning Code classifies licensed residential care facilities providing 24-hour- a-day care to six or fewer persons with non-medical conditions as a residential use but State-licensed residential care facilities providing 24-hour-a-day care to seven or more persons with non-medical conditions (large residential care), are categorized as a type of public/semipublic facility. This is inconsistent with State law, which classifies both types of facilities as a residential use. The Code permits facilities serving six or fewer persons by right in all residential districts (R-E, R-1, R-2, and R-3) but requires a conditional use permit to establish residential care facilities for seven or more persons in any residential districts or in the Office and Professional District, which is the only non-residential district where they are allowed.

The Action Plan includes a program to revise the Code to include definitions, use regulations, and requirements for both types of residential care to comply with the federal and State Fair Housing Acts, and other statutory requirements. This program will be consistent with the guidance provided in the State’s recently published Group Home Technical Advisory. 34
Single-Room Occupancy (SRO) Units
Single-room occupancy (SRO) units are small, one-room units occupied by a single individual or couple that may have either shared or private bathroom and kitchen facilities. This type of housing is an alternative housing that is affordable to extremely-low-income households. Monterey ‘s current regulations do not recognize SRO units as a type of housing, but rather classifies SRO hotels as a type of Visitor Accommodation Facility that is subject to the Uniform Transient Occupancy Tax imposed on hotels, motels, bed and breakfast inns, and similar facilities rented for a period of 30 days or less. (Monterey 34 California Department of Housing and Community Development, Division of Housing Policy Development, “Group Home Technical Advisory”, December 2022. Download at https://www.hcd.ca.gov/sites/default/files/docs/planning-and-community/group-home-technical-advisory2022.pdf Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 189, Packet Page 312 35 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-35
Municipal Code, Article 3. Uniform Transient Occupancy Tax). SRO units are permitted by right in the Downtown, North Fremont, and Lighthouse Specific Plan areas, except when located on the ground floor of a mixed-use development fronting on North Fremont and are not permitted on the first floor between Alvarado Street and the first block of Del Monte Avenue and Franklin Street in the Alvarado District. The Housing Action Plan proposes to revise the Zoning Ordinance and other City regulations to recognize SRO units rented for more than 30 days as a type of housing. SRO units should, at a minimum, be permitted in the same districts where residential uses are allowed subject to the same use regulations, including provision for individual or communal cooking facilities.

Transitional and Supportive Housing
Supportive housing is generally defined as permanent, affordable housing with on-site or off-site services that help residents, who fall within the “target population” under State law, improve health status, and maximize their ability to live and, when possible, work in the community. Services may include case management, medical and mental health care, substance abuse treatment, employment services, and benefits advocacy. Supportive housing is further defined as “housing with no limit on length of stay and that is occupied by a target population as defined in the Government Code and subdivision (d) of Section 53260 of the California Health and Safety Code, that provides, directly or indirectly, a significant level of on-site or off-site services to help residents retain housing, improve their health status, and maximize their ability to live and, when possible, work in the residents’ community. “Target population” means persons with low incomes who have one or more disabilities, including mental illness, HIV or AIDS, substance abuse, or other chronic health condition, or individuals eligible for services provided pursuant to the Lanterman Developmental Disabilities Services Act (Division 4.5 (commencing with Section 4500) of the Welfare and Institutions Code) and may include, among other populations, adults, emancipated minors, families with children, elderly persons, young adults aging out of the foster care system, individuals exiting from institutional settings, veterans, and homeless people.

Transitional housing units are “residential units operated under program requirements that call for (1) the termination of any assistance to an existing program recipient and (2) the subsequent recirculation of the assisted residential unit to another eligible program recipient at some predetermined future point in time, which point in time shall be no less than six months into the future.” State law requires that transitional and supportive housing be treated as a residential use and be subject only to those restrictions that apply to other residential uses of the same development type in the same zone. This housing can take several forms, including group housing or multi-family units, and typically includes a supportive services component to allow individuals to gain necessary life skills in support of independent living. For example, if the transitional housing is a multi-family use proposed in a multi-family zone, then zoning should treat the transitional housing the same as other multifamily uses in the proposed zone.

State law includes the following additional provisions that jurisdictions must address in their regulation of supportive housing:
• Allowing supportive housing as a use by-right in all zones where multi-family and mixed-uses are permitted, including non-residential zones permitting multi-family uses, if the proposed development meets specified criteria in State law;
• Approval of an application for supportive housing that meets these criteria within specified periods; and
• Eliminating parking requirements for supportive housing located within ½ mile of public transit. “Transitional housing” means buildings configured as rental housing developments but operated under program requirements that require the termination of assistance and recirculating of the assisted unit to Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 190, Packet Page 313 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-36
another eligible program recipient at a predetermined future point in time that shall be no less than six months from the beginning of the assistance. SB 2 requires that transitional and supportive housing types be treated as residential uses and subject only to those restrictions that apply to other residential uses of the same type in the same zone.

The current Monterey Code permits supportive and transitional housing by right in the R-E and R-1 districts and also allows both types of housing by right in other residential zones if they have three or fewer units. Supportive and transitional housing with four or more units requires a Use Permit. These distinctions are problematic and may be inconsistent with applicable State requirements because they are based on occupancy rather than development type. Depending on the residents’ need for assistance and the type of services offered, residents of supportive housing facilities may occupy rooms in a group housing configuration rather than individual units as defined by Section 38-11 of the Zoning Code or the California Building Code. Requiring a use permit to establish a supportive housing program in an existing multifamily structure would probably violate State law although the law would allow a local government to require a use permit to construct a new building with four or more units. A program is included in the Housing Action Plan (Chapter 4) to revise the Code provisions for compliance with State law.

Housing for Persons with Disabilities
SB 520 (Chapter 671, Statutes of 2001) requires all local jurisdictions to undertake an analysis of governmental constraints to the development, improvement, and maintenance of housing for persons with disabilities and to include a program to remove constraints or provide reasonable accommodations for housing designed for occupancy by, or with supportive services for persons with disabilities. For the purposes of state law, “persons with disabilities” are defined in the Government Code as those individuals facing a variety of physical, mental, or health problems that make major life activities difficult or impossible.

Monterey’s Municipal Code defines a family as “an individual or two or more persons living together in a dwelling unit as a single housekeeping unit.” (Section 38-11) The definition is broad and neither mentions nor omits people with disabilities. Monterey does not have any specific land use or development standard related to the spacing or concentration of persons with disabilities or any special parking requirements and the City amended the Zoning Code in 2016 to add Article 30, Reasonable Accommodation to provide a process for individuals with disabilities to request relief from the various land use, zoning, or building laws.

To facilitate the review and approval process, requests for reasonable accommodation are reviewed by the City Manager or a designated staff member unless the request is submitted for concurrent review with an application for discretionary planning or zoning approval. The City has appointed an ADA Coordinator to assist applicants with preparation and submission of accommodation requests. The Accommodation Form and the Coordinator’s contact information are provided online along with other relevant information at https://monterey.org/city_hall/city_manager/accessibility/index.php .

Housing for Students
Monterey has a student population of about 14,000, a substantial portion of which is associated with the military.

In addition to the U.S. Naval Post Graduate School and the U.S. Army Defense Language Institute, other institutions of higher education in the Monterey are the Middlebury Institute of International Studies, Monterey Peninsula College, and the Monterey College of Law. Monterey Peninsula College (MPC) is a public community college based in Monterey that offers classes at a campus in Monterey as well as locations in Marina and at the former Fort Ord. Monterey College of Law (MCL) is a community law school founded in 1972 by prominent local attorneys and judges and has been accredited by the State Bar of California since 1981. In addition to the main campus at the former Ford Ord in Seaside, MCL operates at campuses in San Luis Obispo andBakersfield and will be opening the Empire College of Lawin Santa Rosa in 2023. Except for the two military institutions, none of the schools provides any on-site housing.

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The military provides 2,580 housing units for both families and single persons at La Mesa Village in the City of Monterey and the Ord Military Community at the former Fort Ord. Housing for single persons is located on the Naval Post Graduate School campus in downtown Monterey and at the Presidio. In 2020, there were a total of 2,771 students enrolled in the Naval Postgraduate School. The U.S. Department of Defense provides a basic allowance for service members, including students attending the Naval Post Graduate School and Army Defense Language Institute (DLI) to live either on or off-campus. The housing allowance varies based on rank and whether the member has dependents. As of January 2020, the basic allowance for housing in the Monterey Bay Area was $1,788 to $2,511 depending on rank up to $2,802 to $3,687 for military personnel without dependents.

Rates for those with dependents was $2,385 to $3,291 up to $3,735 to $4,359 based on household size. 35 Since Monterey revised its Zoning Ordinance in 2016 to incorporate Section 38-112.5, Density Bonus, the State has amended the State Density Bonus Law to add provisions to benefit lower income students. These changes made projects setting aside 20 percent of total units for lower income students in a student housing development meeting certain requirements eligible for the same density bonuses and incentives available to other types of affordable housing. For-profit developers can become eligible for these benefits by entering into an agreement or master lease with one or more institution of higher education. (Government Code 65915(b)(1)(F)(i). The term “lower income student” is defined in part as a student qualified for Cal Grant A or B based on household income and asset level. (Government Code 65915(o)(1)(3).

Table C-5: Enrollment at Higher Education Institutions in and near Monterey (2022) C.6 Housing Regulations
Density Bonuses
In November 2016, Monterey amended its Zoning Code to incorporate a variety of revisions to implement the previous Housing Element including establishing regulations to comply with Government Code Section 65915, the State-mandated requirements for granting density bonuses. Section 38-112.5, Density Bonus, has not been revised since 2016 and does not comply with more recent changes to the State law. 35 Monterey Bay Military Housing Services Office, 2020 BAH Rates for the Monterey Bay Area https://www.housing.army.mil/Installations/Presidio%20of%20Monterey/HousingWelcomePacket.pdf Institution Enrollment
U.S. Naval Post Graduate School 1 1,446 (resident)
U.S. Army Defense Language Institute 2 2,500
Middlebury Institute of International Studies at Monterey 3 695 Monterey Peninsula College (Monterey and Marina Campuses) 4 7,920 Monterey College of Law 235
Total 12,796
Sources:

1. U.S. Naval Postgraduate School https://nps.edu/documents/10180/0/NPS+Fact+Sheet2022+%281%29.pdf/37526c22-219e-da41-022d-bdf55b7cf6d8?t=1651155444206

2. US Army Defense Language Institute https://www.dliflc.edu/about/

3. Monterey Institute of International Studies at Monterey https://www.middlebury.edu/institute/about

4. Monterey Peninsula College https://www.mpc.edu/

5. Monterey College of Law https://www.montereylaw.edu/ and https://en.wikipedia.org/wiki/Monterey_College_of_Law
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Table C-6: Monterey Density Bonus Allowance for Affordable Housing Projects Amendments to the State Density Bonus Law since 2016 include an increase in the maximum density bonuses to which projects are entitled to 50 percent in most projects and to 80 percent for projects that are completely affordable. The provisions in Section 38-112.5.K regarding affordable housing incentives are also out of date. Effective January 2021, the thresholds for granting incentives and concessions was reduced to allow projects with 17 percent low-income units to qualify for two incentives or concessions and projects with 24 percent low-income units to qualify for three requiring changes to Monterey’s current provisions summarized in Table C-7: Incentive Allowances for Qualified Housing Projects.

Table C-7: Incentive Allowances for Qualified Housing Projects Income Category Minimum Percent of Affordable Units
Very Low-Income 5% 10% 15%
Low-Income 10% 20% 30%
Moderate-Income* 10% 20% 30%
Incentives Allowed 1 2 3
Source: City of Monterey, Zoning Ordinance, October 2022 https://monterey.municipal.codes/Code/38 The State law has been amended to increase the number of available incentives /concessions to four for 100 percent affordable projects. Other changes enacted since Monterey adopted its current requirements include the provisions applicable to student housing projects and the following:
• Eliminating the ability of local governments to disapprove a developer’s request for an incentive or concession, or a waiver or modification of development standards, on the grounds that it would have a specific adverse impact on the physical environment;
• Providing parking standards of one-half space per bedroom for housing developments within a half mile of a major transit stop that include at least 40 percent moderate income units; • Eliminating the requirement that for-sale units for moderate income households must be in a “common interest development” in order to qualify for a density bonus. • Clarifying that for purposes of qualifying for a density bonus, the “total units” in a housing development include affordable units designated to satisfy local inclusionary housing requirements; and, Household
Income
Category
Minimum
Percent of
Affordable
Units
Minimum
Density
Bonus
Additional
Bonus for
Each 1%
increase in
Affordable
Units
Maximum
Density
Bonus
Affordable Units
Required for
Maximum
Density Bonus
Very LowIncome5% 20% 2.5% 11% 35%
Low-Income 10% 20% 1.5% 20% 35%
ModerateIncome*10% 5% 1% 40% 35%
Senior
Housing
10% 20% 1.5% 20% 35%
Notes:
*Condominium or Common-Interest development as defined in Civil Code Section 4100.

Source: City of Monterey, Zoning Ordinance, October 2022 https://monterey.municipal.codes/Code/38 Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 193, Packet Page 316 39 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-39
• Clarifying that for purposes of qualifying for a density bonus, affordable units for lower-income households can be either rental or for-sale units. (Affordable units for moderate income households still must be for-sale units and may not be rental units) Inclusionary Ordinance
Chapter 8, Affordable Housing, of the City Code establishes requirements for Monterey’s inclusionary ordinance. The City adopted the inclusionary ordinance in October 2003 to implement its previous housing element, which included a program requiring that a minimum of 20 percent of the units in any project with more than six new housing units be permanently affordable for the life of the project.

The regulations require eligible developers to either:
• Provide at least 20 percent of their project for moderate- and low-income households with a mix of units proportionate to the number of units in the entire project with respect to size and type, excluding amenities; or
• Provide an approved Developer Housing Program to the City that will meet the City’s goal that at least 20 percent of all new housing be affordable to low- and moderate-income households through a technique or combination of techniques subject to Council approval. Designations of levels of affordability are subject to Council approval of the Developer Housing Program but units supplied shall be a proportionate mix of units to the number of units in the entire project and similar in size and type, excluding amenities and must be on-site unless the project is intended for sale or rent at levels above those affordable to moderate-income households.

The City may provide incentives for a project including, but not limited to those provided by State law if the developer proposes to make 20 percent of the units affordable to low-income households. If a developer provides land or funds in lieu of producing housing, the City or other housing sponsor may choose to use these resources to produce low- or moderate-income housing.

Condominium Conversion Ordinance
The purpose of the Condominium Conversion Ordinance is to increase homeownership and the percentage of owner-occupied housing in the City of Monterey. It was also viewed as a way to encourage investment in the City’s older housing stock and obtain 20 percent low- and moderate-income housing for existing developments without this requirement. The 2005 General Plan includes a policy (Housing Element Policy i.2.1) encouraging condominium conversions that was implemented by the adoption of an ordinance regulating condominium conversion in 2008. As of 2023, the City had completed 457 condominium conversions and 135 tentative maps.36Of these 457 condominium conversions, several have been affordable to low- and moderate-income households (Footprints on the Bay, 42 units; Cypress Park Townhomes, 32 units; Vista del Mar Condominiums, 8 units; Laine Hill Condominiums, 5 units, and Skyline, 8 units).

Although the ordinance has not resulted in a loss of deed-restricted rental units, it has taken more affordable rental units off the market.37 Condominium conversions are subject to the inclusionary housing requirement.
36 City of Monterey, 2015-2023 Housing Element, Adopted March 23, 2016, p. 75 37 City of Monterey, Analysis of Impediments to Fair Housing Choice, May 2017 https://files.monterey.org/Document%20Center/CommDev/Housing%20Programs/Plans%20&%20Reports/Action %20plan/AIUpdatefinal.pdf
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 194, Packet Page 317 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-40
C.7 Permits and Processing Procedures
Generally, the time taken to review and approve a proposal is directly proportional to the magnitude and complexity of the project. Many types of residential development require either Zoning Administrator or Planning Commission approval of a use permit as shown in Table C-8 and almost all new residential construction requires design review, which is a “discretionary” review process conducted by the Architectural Review Committee. Land use entitlements are processed through the Planning Division.

Table C-8 below provides an overview of the process and planning authorities for each planning and land entitlement.

Applications for new construction, exterior alterations, and additions are reviewed by the Development Review Committee, (DRC) comprised of department heads or their staff representatives (including the Fire and Police Chiefs) and chaired by the Community Development Director. Residential projects, either located in design review neighborhoods or are within a Design and Development Control Overlay District (D1, D2, or D3 Overlay District), require Architectural Review. Residential projects located in non-design review neighborhoods only require Architectural Review if certain criteria are met. The specific standards established by the Zoning Code largely comply with State mandates for using objective standards to regulate residential development.

Architectural Review
Architectural review is required for new non-residential or multi-family buildings, new single family residences, additions, exterior alterations, accessory buildings in design review areas; new non-residential or multi-family buildings, new two-story single-family homes, second story additions to single-family dwellings, second-story decks, additions to non-residential or multi-family buildings in non-design review areas; and in residential districts with a D-1 (Design Control) or D-2 (Design and Development Control) overlay or as required by any other adopted plan. (Monterey Zoning Code, Article 25, Architectural Review). The Planning Commission or City Council may also require review for any other project.

The ARC decision is discretionary and requires a findings based on a subjective determination that the variation “will not compromise privacy expectations on adjacent properties beyond those incurred by adherence to standard setbacks” and that the variation is minimal and necessary to achieve conformity with one or more similarly subjective guidelines and policies including:
• Adopted Neighborhood Compatibility Design Guidelines:
• Design considerations contained in subsection 4 of Substandard Residential Lots; • Planning Commission and Architectural Review Committee adopted View Impact policies; and, • Architectural Review Committee adopted Tree Protection Standards.

The Architectural Review Committee (ARC) may also approve variations to required setbacks to improve the “relationship between the new construction and structures on adjacent lots and those in the immediate neighborhood”.

The ARC decision may be appealed to the Planning Commission whose decision is subject to appeal to the City Council.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 195, Packet Page 318 41 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-41
Table C-8: Land Use Entitlement Processes
Entitlement
Involving New
Housing Units
Administrative ARC Planning
Commission
City
Council
Typical Time
Frame (days)
Design Review -
Major
X 60
Design Review -
Minor
X 30
Use Permit* X 60
Variance* X 60
Rezone, General
Plan Amendment,
Tentative Map
(more than 4
lots)
X X 90
The Architectural Review Committee (ARC) is comprised of seven members, at least one of whom must be an architect or a professional in a related field, unless no such person is available for appointment when a vacancy arises (Monterey City Code, Article 5, Architectural Review Committee). Review by the ARC is required for most multi-family development unless the project is within a specific plan area and meets all the required design guidelines when it can then be reviewed administratively.

Article 25 of the Zoning Code and a handout providing an overview of the review procedure and requirements38 both describe architectural review as a two-step process that considers consistency with the General Plan and any other applicable plan or design guidelines, but neither provides a clear explanation about how this design review relates to any other discretionary planning or zoning review a project may require. Tier One Review, conducted by Staff, applies to projects that do not require any other discretionary permits and Tier Two, which requires review and approval by the City Planning Commission, Architectural Review Committee, and/or Historic Preservation Committee is for projects that do require conditional approval or deviate from the applicable development standards or design guidelines.

Section 38-191 specifies findings that the ARC or City Manager must make to approve an application submitted for Preliminary and Final Review. As written, the findings are based on highly subjective determinations that design features are “appropriate for the project site, the immediate area, and the City”, will not “unreasonably impair the views, privacy, or living environment currently enjoyed by other properties” and that the proposed project is “substantially consistent” with the General Plan and other plans, guidelines, and such documents applicable to the project.

Monterey has adopted design guidelines for single-family dwellings in the D-1 overlay district (1987), Del Monte Shores and Del Monte Villas (1992) and for the Cannery Row Conservation District (2004).

Altogether, Monterey has adopted 15 plans for commercial and neighborhood districts, most of which include either advisory or prescriptive guidelines or a combination of both. 38 Architectural Review
https://files.monterey.org/Document%20Center/CommDev/Building%20&%20Safety/Permit%20Procedures/Plan ning%20Permits/Architectural-Review-2022Approved.pdf
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 196, Packet Page 319 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-42
Use Permits
Mixed-use projects in commercial zoning districts; and apartment projects with first floor residential in select districts or planning areas that exceed a specified number of units (e.g., exceeds 4 or up to 30 units per acre) require approval of a use permit by either the Zoning Administrator or Planning Commission, depending on whether the project is new development or a conversion of an existing use. Such projects in the specific plan areas (i.e., zoned Planned Community, or PC) are largely permitted outright. Though not a requirement, staff encourages applicants to meet with staff early in the design process to discuss potential issues. The first formal step in the permit process is the review of the application by staff and the environmental determination. Staff reviews the proposed use and reports to the Zoning Administrator or Planning Commission at a public hearing. The Zoning Administrator or Planning Commission approves the project if they can make the findings that the project will not be detrimental to the public health, safety, or welfare of persons residing or working in or adjacent to the neighborhood of such use and will not be detrimental to properties or improvements in the vicinity or to the general welfare.

After Planning Commission approval, the project is reviewed by the Architectural Review Committee as described in the above section (architectural review). Findings for architectural review include compatibility with the neighborhood in terms of mass, bulk, and design, and that views of the Monterey Bay will not be impaired. Processing time typically takes about 60 days. Based on the number of building permits that are approved each year, City staff do not consider this a constraint to the development of housing. Monterey’s use of design guidelines and subjective development standards and criteria as a basis for both Planning Commission and ARC review does, however, create potential for violation of State mandates that residential projects be subject only to objective standards that require no personal judgment by municipal officials.

General Plan and Zoning Amendments
Applications requiring amendment to the Zoning Map, Zoning Ordinance, or General Plan are subject to review and approval by both the Planning Commission and City Council. The City Council is the final decision-making body and receives a recommendation and report of findings from the Planning Commission. Upon City Council approval of the amendment request, the project proceeds through the architectural review process.

Building Codes and Enforcement
The City of Monterey has adopted all the 2019 California building codes with amendments to the Building, Residential, and Plumbing Codes regarding the expiration of permit and other revisions related to fire and seismic hazards. The City amended the Building and Residential Codes to require new roofing in all fire hazard severity zones to be fire retardant or Class A roofing. The City also amended the residential code to require automatic fire sprinklers in all new one and two-family dwellings and when alterations or repairs are made involving 50 percent or more of the linear length of walls. Code enforcement plays an important role in maintaining the quality of neighborhoods. Code enforcement deals with a range of neighborhood issues, from abandoned vehicles parked in yards or driveways to illegal conversions of garages into living spaces to unsanitary buildup of trash and debris on private property. The first “tool” in enforcing codes in Monterey is public education. When code enforcement officers explain that a law is being broken, most problems are resolved quickly. Actual code “enforcement” (usually by way of issuing citations) is normally used only when voluntary cooperation is not received. The goal is to stay in contact with community groups to understand local concerns, and questions regarding neighborhood issues are welcomed.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 197, Packet Page 320 43 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-43
C.8 Fees
The City collects various fees from applicants to cover the costs of processing permits, including fees for planning approvals, subdivision map approvals, environmental review, public works and plan check services, and building permits. In addition to these service fees associated with development processing, the City and regional transportation agency charges several impact fees to offset the future impact of development on regional traffic and circulation, parks, and libraries. Table C-9, FY 2023 City of Monterey Planning Fees lists the planning and zoning fees most commonly applicable to residential and mixed-use development.

Table C-9: FY 2023/24 City of Monterey Planning Fees
Category Permit Type Fee
Architectural Review ARC Major $4,620.00
ARC Minor $2,102.50
Architectural Review - Admin Major $1,298.50
Architectural Review - Admin Minor $362.50
Historic Preservation Mills Act Request w/ rezone $4,422.58 Historic Preservation Mills Act Request w/o rezone $3,117.51 Historic Preservation Demolition Review $379.19
Historic Preservation Historic Permit, major $2,053.62
Historic Preservation Historic Permit, admin $536.86
Historic Preservation Historic Report, review $1,018.74 Historic Preservation Historic Survey $1,619.93
Conditional Use
Permit
Preapplication $3,000 deposit
Planning Commission Major-Deposit $4,000 deposit
Planning Commission Minor $2,392.50
Zoning Administrator $1,012.00
Permit Extension $1,014.50
Permit Amendment 2/3 of permit fee
Variance/Parking
Adjustment
Major - Planning Commission $1,894.00
Minor - Zoning Administrator $1,012.00
Subdivision Tentative Map (includes Preliminary and
Final Map)
$6,000 deposit
Minor Subdivision $4,831.50
Covenant of Easement $373.00
Lot Line Adjustment $4,259.00
Subdivision/Lot Line Adjustment –
Licensed Land Surveyor Review
$4,000.00
Certificate of Compliance $1,534.00
Lot Merger $909.00
Plan Amendment
(Text or Map)
General Plan, Specific Plan, Zoning
Ordinance
$4,000 deposit
Local Coastal Plan $5,000 deposit
Annexation $5,000 deposit
Environmental Review Environmental Impact Report Deposit based on Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 198, Packet Page 321 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-44
Table C-9: FY 2023/24 City of Monterey Planning Fees
Category Permit Type Fee
estimated cost
Environmental Initial Study leading to a
Negative Declaration
$4,000 deposit
Concept Review Planning Commission $1740.50
Tree Permit Associated w. Development (ARC) $741.50
Associated w. Development
(Administrative)
$313.50
SB9 Ministerial
Review
$1,086.47
SB35 Ministerial
Review
$2,131.18
The City of Monterey, Master Fee Schedule, Fiscal Year 2023-2024 Table C-10 compares the estimated fees that would be charged by Monterey and six nearby jurisdictions for four-unit multi-family project with a total floor area of 2,400 sq. ft. and an estimated construction value of $850,000. Data show that the City of Monterey’s zoning and architectural fees are the highest in the immediate area. Monterey’s fees for tentative and final maps for a four-unit project are more in line with most of the surrounding jurisdictions requiring a $6,000 deposit for preliminary and final maps compared, for example, with $2,800 in Del Ray Oaks, $7,925 in Marina, and $8,714 in Seaside. However, the City has recent completed an evaluation of fees that determined current level do not represent full cost recovery.

Nevertheless, recognizing that residential development requires review and approval by both the Architectural Review Committee and the Planning Commission, which increases the time required for approval, a series of programs have been added to the Housing Action Plan to streamline project approvals and assist with the financial feasibility of housing projects.

Sewer Fees
The City of Monterey collects and transports wastewater to Monterey One Water for treatment. Monterey One requires payment of a sewer capacity charge for all new connections to cover a portion of the capital costs related to wastewater transmission, treatment, and disposal. This charge helps to cover costs related to providing and maintaining excess capacity currently available within the Regional System. The City Building Department collects the Monterey One Water connection fee of $5,654.65 per new housing unit on behalf of Monterey One Water.39 Monterey One customers also pay $38 per month for wastewater treatment.

Section 9.1 of the City Code requires that property owners install a sewer relief valve and backwater valve as part of the property’s sewer lateral in the event the lowest plumbing fixture of the property is less than two feet lower than the nearest upstream manhole cover. It is the responsibility of the principal owner of the property to purchase and install the sewer relief vent and backwater valve. The vent and the valve assist the City with cleanup efforts related to sewage backups and are a cost-effective way to ensure the health and safety of residents in the City. 40
39 Monterey One Water, Residential Capacity Charges https://www.montereyonewater.org/191/Residential- CapacityCharges 40 City of Monterey Sanitary Sewer Lateral Inspection, Monterey City Code 30-1.2 through 30-1.6 and 9.2 https://files.monterey.org/Document%20Center/CommDev/Building%20&%20Safety/Residential%20Property%20 Inspections/Sanitary-Sewer-Lateral-Inspection-Form.pdf
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 199, Packet Page 322 45 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-45
Table C-10: Fee Comparison for City of Monterey and Nearby Jurisdictions for Four-Unit Multifamily Project (2400 sq. ft. w. $850,000 Valuation) The City’s wastewater collection system includes approximately 536,516 linear feet (102 miles) of sewer pipe, seven lift stations, and more than 2000 sewer structures including manholes, clean outs, and lamp holes. A study conducted more than a decade ago found that many of the sewer mains and structures were over a century old and at the end of their useful lives requiring $16.8 million in capital projects to prevent Jurisdiction Building Permit Zoning/Use Permit Design Review Unincorp.

Monterey County1
$6,100 $5,500 $1,6501
Carmel-by-the-Sea2 $4,872.31 + $11.40
per $1000.00 in
Valuation above
$350,000
$2,730 $5,392 + $813
Study Fee2
Del Ray Oaks3 $9,710 Base Fee +
$6.30 for each
additional $1,000
above $1,000,000
$2,990 $840
Marina4 $4,033 + $5.93 for
each $1,000 above
$500,000
$5,350 $7,7754
Monterey City5 $10,444.11 Base
Fee + $15.48
for each
additional
$1,000 above
$500,000
$4,000 deposit $4,400
Pacific Grove $10,318 + $15 for
each additional
$1,000 above
$500,000
$3,248 $4,060
Seaside6 $5,093.65 + .93 for
each additional
$1,000 above
$500,000
$1,000 $1,200
Notes:

1. Tier 4 with Use Permit approval by Planning Commission required in Medium Density Residential district.

2. Use Permit with Track Two Major design review for project in compliance with all applicable requirements.

3. Major use permit and major design review

4. Major administrative design review $1,010

5. Use Permit approved by Planning Commission with Major Architectural Review

6. Use Permit approved by Planning Commission not including pre-application review $1,107 Sources: Monterey County, Housing & Community Development Fee Schedule, adopted June 2021; Carmel-by-theSea Fee Schedule effective July 2022; Del Ray Oaks, Resolution 2015-2017; Del Ray Oaks Draft Housing Element, October 2019, Table 4-4; Marina Schedule of Fees and Charges, Ordinance 2018-03, effective July 2018; City of Monterey, Master Fee Schedule FY 2023; Pacific Grove Master Fee Schedule FY 2022-23; Seaside Master Fee Schedule 22/23.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 200, Packet Page 323 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-46
possible sewer backups, spills and regulatory fines.41 The monthly fees paid by customer are adjusted annually to pay the cost of operating the collection system. In addition, the City charges a one-time fee for connecting to the system to help cover the cost of upgrading sewer lines communitywide to ensure adequate operation and capacity for future growth. The City’s current development fees also include $119 for inspecting sewer laterals, $2,341 for reviewing the design of the project’s proposed storm water system, and $346 plus $99 per hour for inspection and review of the system. 42 To comply with Senate Bill 1087, the City will immediately forward its adopted Housing Element to its water and wastewater providers so they can grant priority for service allocations to proposed developments that include units affordable to lower-income households.

Curb, Gutter, Sidewalk, Landscaping, Transportation Infrastructure Fees The City requires all new multi-family and mixed-use development to bring curbs, gutters, and sidewalks to City Standards, which may require installation of new curbs, gutters, and sidewalks if none exist. Several of the Specific Plans require street trees, at about $500 per tree. The current charge for a tree permit associated with new development is $741.50 (ARC review) or $313.50 (administrative review). 43 The City’s
street network is well established, and no new streets are planned. A planned pedestrian and bicycle network is being developed that identifies potential mitigation opportunities for new development. The City does not have an adopted traffic impact fee.

C.9 Transparency in Development Regulations
State Government Code Section 65940.1 requires cities and counties to provide transparency in publicizing land use controls and fees. Monterey provides links to a variety of resources on the planning process on Planning Office website44 including the Master Fee Schedule, planning and building permit information, planning application forms, instructions on the use of story poles and links to an alphabetized list of Planning Permit Applications and informational handouts. The Planning Office page links to a page called Land Use Plans, Regulations, Studies where users can download the General Plan, the associated EIR, commercial and neighborhood district specific and area plans, coastal plans, and implementation plans for circulation and recreation trails and historic preservation surveys and programs. The same page includes links to the zoning map and zoning ordinance, design guidelines, and a collection of documents regarding sea level rise adaptation and climate change. Both pages include contact information for the Planning and Building staff and links to websites for related Boards and Commissions and Code Compliance. 41 City of Monterey Sanitary Sewer Utility Fee Study, June 15, 2011 https://files.monterey.org/Document%20Center/Public%20Works/Engineering/Environmental%20Regulations/Sa nitary%20Sewer%20Program/Monterey-Wastewater-Rate-Study.pdf 42 City of Monterey Master Fee Schedule, Fiscal Year 2023 https://files.monterey.org/Document%20Center/Finance/Schedule%20of%20Fees%20and%20Fines/Master-FeeSchedule.pdf 43 Ibid. 44 https://monterey.org/city_hall/community_development/planning/planning_permits.php Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 201, Packet Page 324 47 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-47
C.10 Key Findings
This section summarizes the key findings of the constraints analysis. It is intended to inform programs in the Housing Action Plan and narrative language in the body of the draft Housing Element. Key takeaways related to governmental and non-governmental constraints are provided below.

Non-Governmental Constraints
• Environmental constraints. The most serious environmental constraints Monterey faces are the water shortage, coastal flooding, sea level rise, and wildfires, all of which are caused or exacerbated by climate change. Additionally, humanmade hazards associated with airport safety and noise are also a consideration in Monterey. Collectively, these environmental constraints can limit the density and location of housing development appropriate in the community, and while there are measures the city can take to reduce these adverse environmental impacts, mitigation can pose an additional constraint to housing production by increasing the cost of residential development or the location and intensity of development in hazard-prone areas. The General Plan Update will need to be based on a thoughtful strategy for integrating new housing to meet local needs while ensuring public safety and bolstering capacity for climate resilience.
• Land and construction costs. The average land value per acre in Zip Code 93940, a 16-square mile area that is wholly contained within the boundaries of the City of Monterey, increased 93 percent between 2012 and 2019. To counter the effect of high land and development costs, due to factors such as desirability as well as environmental factors like water and terrain, the General Plan encourages mixed-use, infill development in non-residential areas. Construction costs will continue to constrain development because of the city’s location as well as exogenous factors such as supply chain problems, cost of construction materials, and the availability and cost of labor. The Housing Element should incorporate strategies to reduce cost and complexity for residential development needed to serve community needs so as to help with the financial feasibility of housing projects. • Availability and cost of financing. The cost of financing has a significant effect on the affordability and availability of all almost all types of housing and on access to both owner-occupied and rental housing. After peaking at close to 5 percent during the 4th quarter of 2018, mortgage rates fell to 3.11 percent by the end of 2021 but climbed back to 7.32 percent by the end of October 2022. Meanwhile, the average home value in Monterey increased from $1.05 million in October 2021 to $1.16 million at the end of September 2022.

Governmental Constraints
• Discretionary Review Requirements for Multi-Family Projects. Almost all new residential construction as well as exterior alterations to projects in areas within the Design and Development Control Overlay District (Monterey Zoning Code, Article 13) is subject to design review. In addition, most multi-family projects with four or more units, and multi-family and mixed-use projects in commercial districts require approval of a use permit. These requirements increase the time and cost of developing housing in much of the city. Moreover, as discussed above, these processes rely in part on subjective standards and criteria that do not meet State requirements for objective standards. The Housing Element should identify opportunities to streamline review processes and incorporate objective standards for the review and approval of housing projects. • Subjective Development Standards and Guidelines. The discretionary review requirements Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 202, Packet Page 325 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-48
applicable to most residential development rely on zoning standards and design guidelines that are largely subjective such as the findings required for use permits requiring a determination that projects “will not be detrimental to the public health, safety, or welfare of persons residing or working in or adjacent to the neighborhood of such use, and will not be detrimental to properties or improvements in the vicinity or to the general welfare of the city” (Section 38-161.A.2). The approval of new condominium development as well as condominium conversions require an additional finding that applicants demonstrate “financial ability to carry out the proposed project” (Section 38-161.A.4) without any further explanation as to how this determination will be made. The Housing Action Plan (Chapter 4) will commit Monterey to reviewing and revising the Zoning Ordinance and all adopted plans and policies applicable to residential development to ensure that both standards and procedures comply with State requirements to base housing project decisions on objective standards. This will include establishing standards for residential and mixed-use development to provide a clear and objective basis for decisions.
• Specific Plan Standards. Although the specific plans covering areas within and near the downtown area include modified parking requirements for residential projects, they also include policies, standards and guidelines that use imprecise terms that rely on subjective judgment. As mentioned above, the Housing Action Plan (Chapter 4) commits the City to review and revision of all adopted plans, including specific and neighborhood plans, to meet State requirements. In addition to establishing objective policies and standards, pursuant to State law, Specific Plans must be consistent with the General Plan. (California Government Code Section 65454) • Coastal development requirements. Because Monterey has not yet adopted a Local Coastal Program and implementation plan for certification by the State Coastal Commission, new housing in the coastal zone requires Coastal Commission review and approval of Coastal Development Permit for most new development with the possible exception of individual single-family development. Even though State law mandates demolition protections for coastal zone housing occupied by low- and moderate-income households, residential development in the coastal zone is exempt from a number of the recently enacted State housing requirements intended to remove constraints from residential development. 45
• Single-Room Occupancy (SRO) Hotels. Monterey ‘s current regulations do not recognize SRO units as a type of housing.). SRO facilities are permitted in the Downtown, North Fremont and Lighthouse Specific Plan Areas above the ground floor and with a conditional use permit on the ground floor.”46 The Housing Action Plan (Chapter 4) commits the city to revising the Zoning Ordinance and other related City regulations to recognize SRO unit rented for more than 30 days as a type of housing. SRO units should, at a minimum, be permitted in the same districts as residential uses. • Parking standards. New State law enacted in 2023 (AB 2097) generally prohibits public agencies from imposing minimum parking requirements within a half-mile of public transit. The City will need to revise parking requirements to reduce the minimum requirements to one space per unit for all units located within one half mile of public transit. In addition, the City should reduce the base parking requirements for mixed use sites so that they reflect the maximum demand for parking at any one 45 See https://www.californiacoastalworks.com/post/housing-mandates-in-the-coastal-zone and https://snapadu.com/blog/adu-granny-flat-coastal-zone-san-diego-oceanside-carlsbad-encinitas/ for discussion of this issue.
46 See Downtown Specific Plan, p. 68; North Fremont Specific Plan, p. 50, and Lighthouse Specific Plan, p. 48.

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time, rather than the sum of the requirements for all individual uses. The Housing Action Plan (Chapter 4) will incorporate a program to address this. • Development standards. SB 9 allows division of lots in single-family residential districts to facilitate the development of smaller scale housing that may be affordable on the basis of size in existing neighborhoods. The new requirements, which are codified in State Government Code Sections 65852.21.21 and 66411.7 require ministerial approval of a housing development with no more than two primary units in a single-family zone or subdivision of a parcel in a single-family zone into two parcels subject to compliance with objective development standards and requirements in the State law. The Housing Action Plan (Chapter 4) will incorporate a program that addresses the new requirements, and the Housing Element should explore opportunities to promote and facilitate SB9 housing as appropriate in Monterey.
• Accessory Dwelling Units. The current zoning ordinance includes two sets of provisions applicable to ADUs. Section 38-112.6, Accessory Dwelling Units and Junior Accessory Dwelling Units (JADUs), adopted in November 2021 to comply with amendments the State adopted to that date was subsequently revised on May 3, 2022 to make the requirements consistent with the most recent changes to State law.
• Density bonus ordinance. New State laws pertaining to density bonus were enacted in 2023: AB 2334 makes important changes to the Density Bonus Law to define development capacity; and AB 1551 reinstates the ability to seek State Density Bonus Law benefits for commercial projects. Additional bonuses (including up to 80 percent for completely affordable projects) are now available. The Housing Action Plan (Chapter 4) will incorporate a program that commits the City to updating its density bonus ordinance to address the new requirements. • Housing for Homeless Persons. In 2015, Monterey established the Safe Parking Program (Monterey Zoning Code Section 38-126), which allows the use of existing parking lots on a temporary basis to provide individuals and families living in vehicles with a safe place to park overnight while working towards a transition to permanent housing. Parking programs must be managed by a social service provider. Additional actions the city needs to take include revising the Zoning Code to comply with the requirements of AB 101, which amended the Government Code Section 65660 to require municipalities to permit a Low Barrier Navigation Center (LBNC) to be permitted by right in mixeduse districts and nonresidential zones that permit multifamily development. A LNBC is defined as a “housing-first, low-barrier, temporary, services-enriched shelter focused on helping homeless individuals and families to quickly obtain permanent housing.” The Housing Action Plan (Chapter 4) commits the city to amending the Zoning Code to comply with these requirements. • Transitional and Supportive Housing. The current Monterey Code makes several important distinctions between supportive and transitional housing and between larger and smaller facilities, some of which are inconsistent with applicable State requirements. For example, the Code requires a use permit for all supportive and transitional housing with four or more units, and district regulations impose distinctions based on the number of units although residents of supportive housing facilities may live in a single unit and both types of facilities may be operated as group housing. A program has been added to the Housing Action Plan (Chapter 4) to revise the Code provisions for compliance with State law.
• Employee/Farmworker housing. To ensure compliance with State law, the City needs to incorporate into the municipal code a definition of “employee housing” that includes housing for farmworkers as Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 204, Packet Page 327 City of Monterey 2023-2031 | Housing Element Appendix C: Housing Constraints C-50
well as other employees such as the service workers in hotels and restaurants. Employee housing for six or less people must be treated the same as a single-family home. The Housing Action Plan (Chapter 4) will incorporate a program to address this. • Permit costs. A survey of neighboring cities indicates that building and zoning fees in Monterey are higher than in some other communities. The Housing Element Update process should identify opportunities to reduce cost and complexity to help support the financial feasibility of housing development to meet community needs. Additionally, the Housing Action Plan (Chapter 4) will incorporate a program to that commits the City to reviewing fees for housing development to ensure they are commensurate with costs incurred by the City.
• Transparency. State Government Code Section 65940.1 requires cities and counties to provide transparency in publicizing land use controls and fees. Monterey provides links to a variety of resources on the planning process on Planning Office website including the Master Fee Schedule, planning and building permit information, planning application forms, instructions on the use of story poles and links to an alphabetized list of Planning Permit Applications and informational handouts as well as links to downloadable versions of Land Use Plans, Regulations, and Studies. The City needs to also ensure that the on-line version of the Municipal Code is regularly updated and that revisions to review procedures are available on-line as well as in handouts at the Planning counter.

The Housing Action Plan includes programs to address these issues and also to meet the recently enacted regulations in Government Code 65913.3 requiring cities to compile lists specifying information applicants most provide to obtain post entitlement phase permits.

Other Constraints
• Jurisdictional Constraints. There are several large institutional facilities located within the Monterey City limit over which the City has no land use authority. These include federal military facilities and educational institutions that are an integral part of the local economy. A large portion of the daytime population of these facilities resides within the City of Monterey and continued cooperation with these institutions will be important for addressing local housing needs.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 205, Packet Page 328

APPENDIX
D

AFFH ANALYSIS
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 206, Packet Page 329 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing Table of Contents
D.1 Fair Housing Enforcement and Capacity.............................................................. D-2 D.2 Segregation and Integration ................................................................................ D-11 D.3 Racially/Ethnically Concentrated Areas of Poverty and Affluence .................. D-39 D.4 Disparities in Access to Opportunity .................................................................. D-43 D.5 Disproportionate Housing Needs & Displacement Risk ................................... D-56 List of Figures
Map D-1: Neighborhood Segregation.......................................................................................................... D-19 Map D-2: City of Monterey Diversity Index.............................................................................................. D-20 Map D-3: Racial Segregation/Integration (2010), Monterey County.................................................... D-21 Map D-4: Racial Segregation/Integration (2020), Monterey County.................................................... D-22 Map D-5: Persons with Disabilities, City .................................................................................................... D-23 Map D-6: Persons with Disabilities, County .............................................................................................. D-24 Map D-7: Percent of Children in Female Headed Households, City ................................................... D-27 Map D-8: Percent of Children in Married Headed Households, City.................................................. D-28 Map D-9: Percent of Children in Female-Headed Households, County............................................. D-29 Map D-10: Low- to Moderate-Income Population, Block Group, City............................................... D-30 Map D-11: Low- to Moderate-Income Population, Block Group, County......................................... D-31 Map D-12: Poverty Status (2014)................................................................................................................. D-33 Map D-13: Poverty Status (2019)................................................................................................................. D-34 Map D-14: Housing Vouchers (2019), City................................................................................................ D-35 Map D-15: Housing Vouchers (2019), County.......................................................................................... D-36 Map D-16: R/ECAP and RCAA Locations, Monterey County............................................................... D-41 Map D-17: TCAC Opportunity Areas, Composite Score, City of Monterey ................................... D-42 Map D-18: TCAC Opportunity Areas, Economic Score, City of Monterey...................................... D-49 Map D-19: TCAC Opportunity Areas, Education Score, City of Monterey...................................... D-53 Map D-20: TCAC Opportunity Areas, Environmental Score, City of Monterey ............................. D-55 Map D-21: Homeowner Cost Burden, City of Monterey ...................................................................... D-58 Map D-22: Renter Cost Burden, City of Monterey ................................................................................. D-59 Map D-23 Overcrowded Households, City of Monterey ...................................................................... D-61 Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 207, Packet Page 330 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing Map D-24: Sensitive Communities............................................................................................................... D-67 Map D-25: Overall Displacement Risk, City of Monterey...................................................................... D-68 Table of Charts and Tables
Table D-1: Rate of Denial by Race/Ethnicity (2021), City and County .................................................. D-6 Chart D-1: HMDA Loan Denial Rates by Race/Ethnicity, City of Monterey ........................................ D-8 Chart D-2: HMDA Loan Denial Rates by Race/Ethnicity, Salinas MSA (Monterey County)............. D-8 Chart D-3: HMDA Home Improvement Loan Applications, 2021 ......................................................... D-9 Chart D-4: HMDA Home Purchase Loan Applications, 2021.................................................................. D-9 Chart D-5: Timeline of Segregation Policies in United States............................................................... D-13 Table D-2: Population Growth by Race/Ethnicity, Monterey County, 2010-2040........................... D-14 Table D-3: Monterey County Subdivisions by Race/Ethnicity, 2020.................................................... D-15 Table D-4: Change in Race/Ethnicity, City of Monterey and Monterey County, 2010-2020......... D-16 Chart D-6: City of Monterey and Monterey County Dissimilarity Index........................................... D-17 Table D-5: Children Under 18 Years in Monterey Households, 2020................................................ D-25 Table D-6: Poverty Rates in City of Monterey, 2020.............................................................................. D-32 Table D-7: Assisted Housing Projects, City of Monterey....................................................................... D-38 Chart D-7: Share of Units Affordable to 80 Percent AMI, County of Monterey ............................. D-38 Table D-8: Domain and Indicators for HCD/TCAC Opportunity Maps............................................ D-43 Chart D-8: Opportunity Indices, Population Above Poverty Level ..................................................... D-45 Chart D-9: Opportunity Indices, Population Below Poverty Level...................................................... D-46 Table D-9: Share of Unemployment by Race/Ethnicity, Monterey County........................................ D-47 Table D-10: CAASP Scores ........................................................................................................................... D-51 Table D-11: CAASP Scores by Race in Ethnicity, Monterey Peninsula Unified................................. D-51 Table D-12: Monterey High School ............................................................................................................. D-51 Table D-13: CAASP Scores, 2022................................................................................................................ D-52 Chart D-10: Cost Burden for Owner Occupied Housing by Race/Ethnicity, City of Monterey .. D-57 Chart D-11: Cost Burden for Renter Occupied Housing by Race/Ethnicity, City of Monterey... D-57 Table D-14: Monterey Substandard Housing Issues, 2020..................................................................... D-62 Chart D-12: Age of City of Monterey Housing Stock, 2020 ................................................................. D-63 Table D-15: Racial/Ethnic Group Share of General and Homeless Population in Salinas/Monterey and San Benito Counties ................................................................................................................................ D-65 Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 208, Packet Page 331 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-1
D Assessment of Fair Housing
California Assembly Bill (AB) 686, passed in 2018, amended California Government Code section 65583 to require all public agencies to Affirmatively Further Fair Housing (AFFH). AB 686 defined “affirmatively further fair housing” to mean “taking meaningful actions, in addition to combat discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity” for persons of color, persons with disabilities, and other protected classes. AB 686 requires the Housing Element to include an assessment of fair housing issues in the City of Monterey with the following components: a summary of fair housing issues and assessment of the City’s fair housing enforcement and outreach capacity; an analysis of segregation patterns and disparities in access to opportunities based on available federal, State, and local data; an assessment of contributing factors; an identification of fair housing goals based on the analysis; and a series of actions to achieve the goals.

The City of Monterey is within the three county Monterey Bay Region, which covers Monterey, San Benito, and Santa Cruz counties. It is the third most populous of the 12 cities in Monterey County after Salinas and Seaside and the fourth wealthiest, behind Carmel-by-the-Sea, Del Rey Oaks, and Pacific Grove. The population of Monterey and the three other wealthiest cities is also less diverse than the other jurisdictions in the county; 68 percent of households in the city are white compared with 29 percent for Monterey County as a whole1. This data helps to create a broader context for identifying and analyzing fair housing.

DATA/RESOURCES CONSULTED
This document relies a variety of resources including data from the 2020 US Census and the American Community Survey 5-Year Estimate Data Profiles published by the Association of Monterey Bay Area Governments1
, the Monterey County Analysis of Impediments to Fair Housing Choice2 prepared in collaboration with the cities in Monterey County and the Housing Authority County of Monterey, AFFH Mapping and Data Resources provided by the State Department of Housing and Community Development (HCD),3 the California Tax Credit Allocation Committee 2023 Opportunity Area Maps 4 and other sources including the State Department of Housing and Community Development (HCD) and data from the following entities:
• Monterey County Housing and Community Development Department, • Monterey County Housing Authority,
• Monterey County Economic Development Housing Office.
1 Association of Monterey Bay Area Governments, City of Monterey Housing Element Data Package, 2022 2 Monterey County Analysis of Impediments to Fair Housing Choice, 2019 3 https://www.arcgis.com/apps/webappviewer/index.html?id=4d43b384957d4366b09aeeae3c5a1f60 4 https://belonging.berkeley.edu/2023-ctcac-hcd-opportunity-map Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 209, Packet Page 332 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-2
D.1 Fair Housing Enforcement and Capacity
Fair housing services include education and training, counseling, investigation, and enforcement activities provided by State, federal, and local agencies as well as non-governmental organizations.

These activities are intended to ensure that a variety of housing options are available to individuals and households regardless of their protected characteristics such as race, color, gender, gender identity, religion, age, national origin, familial or marital status, disability, source of income, sexual orientation, and other factors that have been used to deny or limit housing choices. Property owners, real estate professionals, and government agencies historically used these considerations in ways that have severely constrained opportunities for individuals in these “protected” groups to live in housing that meets their needs in neighborhoods and communities with high-quality amenities and resources.5 Fair housing enforcement and outreach capacity relates to the ability of a locality and fair housing entities to disseminate information related to fair housing and provide outreach and education to ensure community members are aware of fair housing laws and their rights under those laws. This capacity includes educating landlords, tenants, property management companies, government officials, agency staff, and real estate professionals to identify regulatory and real estate practices that maintain or create housing barriers to protected groups. Enforcement and outreach capacity includes the ability to address compliance with fair housing laws, such as investigating complaints, obtaining remedies, and engaging in fair housing testing.

FAIR HOUSING SERVICES
The US Department of Housing and Urban Development (HUD) has several programs that fund State and local agencies to conduct fair housing services and activities, including the Fair Housing Assistance Program (FHAP) and the Fair Housing Initiatives Program (FHIP). These groups communicate with housing providers, conduct investigations, perform testing to help determine if someone has experienced discrimination, and provide information and assistance. The FHAP funds the California Department of Fair Employment and Housing (DFEH) to enforce Federal fair housing laws in California. The closest FHIP to Monterey is Project Sentinel, a non-governmental organization (NGO) based in Santa Clara that HUD funds to provide education, outreach, and enforcement.

Housing discrimination complaints can be filed directly with HUD, with the State Department of Fair Employment and Housing, with Project Sentinel, or with local housing providers such as Eden Council for Hope and Opportunity (ECHO) Housing. Housing discrimination complaints are one method to evaluate the extent of fair housing issues in a community. Monterey also contracts with the ECHO to provide fair housing and tenant-landlord counseling services. The Community Development Department provides contact information for ECHO and links to an ECHO information sheet on the City website at https://monterey.org/city_hall/departments/housing_programs/index.php ECHO, based in Hayward, was founded in 1964 as a fair housing agency and now provides a variety of housing services to low- and moderate-income clients in the Bay Area and on the Central Coast. 5 Rothstein, Richard. The Color of Law. N.p., Perfection Learning Corporation, 2019.

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ECHO has been providing fair housing services to Monterey, Salinas, Seaside, and Monterey County’s urban unincorporated communities since 2017.

California Rural Legal Assistance (CRLA) has 17 offices statewide including one in Salinas. CRLA operates a state-wide Fair Housing and Foreclosure Prevention Program under guidance of HUD that assists victims of housing discrimination. They focus on the needs of farmworker communities, those living in unincorporated areas, and other underserved areas of California that have been subject to segregation and historic patterns of discriminatory housing and lending practices.

United Way Monterey County’s 211 program assists residents of Monterey and other cities in the county who believe they have been subjected to housing discrimination with referrals to ECHO, CRLA, and other organizations that operate statewide. The 211 program provides a call-in number and a website (https://211montereycounty.org/legal-assistancex/victim-services/housingdiscrimination/) with information about organizations that assist persons experiencing housing discrimination.

Monterey collaborates with the County, the Housing Authority of Monterey County, the cities of Salinas and Seaside, and the cities of Del Rey Oaks, Gonzales, Greenfield, and Sand City in the County that receive entitlement funding from HUD. One of the requirements for maintaining eligibility for federally funded programs such as the Community Development Block Grant (CDBG), HOME Investment Partnership, and Emergency Solutions Grant programs, and other state and local programs is to “actively further[] fair housing choice” through:
• Completion of an Analysis of Impediments to Fair Housing Choice (AI), • Actions to eliminate identified impediments; and
• Maintenance of fair housing records.6
The 2023-2024 Annual Action Plan the City of Monterey submitted to HUD as the application for funding from the CDBG program, commits Monterey to funding organizations, including ECHO and Legal Services for Seniors, to provide supportive services to homeless and low-income populations, specifically to assist in fair housing education and counseling on housing and home lending discrimination.7 For the 2022-2023 financial year, the City of Monterey committed to providing fair housing support services for 75 persons with CDBG funds through its contract with ECHO Housing..

Fair housing complaints are not the only indication of fair housing conditions, but data from ECHO, along with records published by the State Department of Fair Employment and Housing (DFEH), provide a basis for viewing Monterey in a broader context. 6 Monterey County Analysis of Impediments to Fair Housing Choice, 2019 7 City of Monterey Annual Action Plan FY 2023-2024, Executive Summary, https://files.monterey.org/Document%20Center/CommDev/Housing%20Programs/Plans%20&%20Reports/Action%20 plan/DRAFT_Monterey_Annual_Action_Plan_FY23-24.pdf
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 211, Packet Page 334 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing In 2017, each jurisdiction had five clients who filed fair housing complaints. The majority of those filing complaints, including all of the complainants from Monterey, were white. Mental and physical disabilities were the most frequentlyfrequently alleged bases for discrimination. Of the 15 cases from Monterey County, only five allegations were sustained. Three of those were resolved through conciliation, but two were referred to DFEH and HUD.

When an individual reports possible discrimination it is considered an inquiry. Between 2013 and 2021, there were a total of 17 HUD inquiries made in the City of Monterey. Inquiries become formal complaints and cases once the FHEO or HUD determines the discrimination can be filed under one of the laws they enforce.

According to the 2020 Annual Report published by DFEH, only nine of 128 discrimination complaints from all jurisdictions within and including Monterey County was related to housing. As of 2020, there were six HUD cases filed, with three cases based on disability bias, one based on a familial status bias, and none based on racial bias. This represents an increase from 2010 when two cases were filed with HUD with only one based on an alleged disability bias and none asserting discrimination based on either familial status or racial bias.

FAIR HOUSING AUDIT REPORT
Auditing is a tool used to measure compliance with federal and state fair housing laws, and to determine if illegal patterns and practices are employed by the rental housing industry. Although most audits are educational in nature, the audit findings can be referred for litigation when patterns and practices of discrimination have become entrenched, and the property owner is uncooperative or resistant to the educational process.

In FY 2017, ECHO conducted a Fair Housing Audit that included the cities of Monterey, Salinas, the urbanized communities of Monterey County, and several Bay Area jurisdictions. The audit tested 134 properties, including five in Monterey, ten in Salinas, and five in urban areas of Monterey County. The properties were chosen from advertisements for available rental units found in www.forrent.com, www.craigslist.org, www.rent.com, www.apartmentguide.com, as well as some property management websites.

In the first phase of the testing, communications began with emails. Among the 20 tests conducted in Monterey County communities, ten percent received differential treatment based on the name used in the emails, a minority name (Laquesha Jackson) vs. a majority name (Megan O’Reilly). In the City of Monterey, there were no cases of differential treatment while Salinas had one. After the tests, ECHO followed up with an educational campaign directed at the owners and managers involved. Each property was emailed a report on their performance and encouraged to meet with ECHO’s Fair Housing Counselors to discuss findings at their properties, and in cases where differential treatment was found, ECHO suggested possible changes that could be made to bring their rental policies and practices in compliance with federal and state fair housing laws.

OUTREACH AND CAPACITY
Fair housing outreach and education is imperative to ensure that those experiencing discrimination know when and how to seek help.

D-4
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At a public Monterey workshop held in 2017 for the purpose of drafting the Analysis of Impediments to Fair Housing Choice (AI), participants asserted that new housing is being built to target wealthier residents making it more difficult for other residents to find housing. The phrase “invasion of Silicon Valley” was stated as a greater concern for the residents and they expressed ECHO Housing should be used more to address fair housing concerns in Monterey.

To gather input on the most recently published Consolidated Plan, three publicly noticed meetings were held as follows: October 17, 2019, at El Estero Park Center, Monterey, California, November 13, 2019 at Few Memorial Hall, Monterey California, and January 9, 2019 at Few Memorial Hall, Monterey. California Engagement activities were used to gather input on the highest community and housing needs. The results of the input were narrowed to the three highest priorities: 1. Affordable housing 2. Homelessness services- prevention and housing 3. Community outreach. The meetings were legally noticed in English and Spanish through the Herald, publicized through the City’s website, and notices were emailed to the organizations from the contact list of partners and service organizations the City has compiled from past stakeholder and community meetings related to grant funding from HUD.

In addition to the meetings described above, a Housing 2020 Community Workshop & Open House was held on December 9, 2019 from 6 to 8 pm at the Monterey Conference Center. The purpose of the Housing Workshop was to provide updates on plans for new affordable housing and new laws affecting renter protections as well as for accessory dwelling units. Additionally, this meeting was meant to encourage residents to connect with City staff as well as the City’s community partners and to share their perspective on the challenges for housing in the City of Monterey. The meeting included an open house where residents could engage with the City’s community partners working on housing inventory improvements, partners which included the United Way, ECHO Housing, and Community Human Services (CHS). Specific topics included: new renter protections (AB 1482) (also available in Spanish), new rules for building an ADU (granny flat), increasing density for housing, Garden Road rezoning for housing, and analysis of City-owned property for housing. To publicize the Housing 2020 Community Workshop & Open House, dynamic bilingual outreach in English and Spanish was conducted to reach a large audience, which included public noticing in the Monterey Herald, publicizing the event on social media (Nextdoor, Twitter, Facebook), traditional media, and Podcasting with a local non-profit media company.

FAIR HOUSING PROGRAMS
Monterey residents facing homelessness have access to fair housing programs. The Housing Resource Center (HRC) was formed in 2009 after a merger between the Housing Advocacy Council and the Monterey County Housing Alliance. They provide homeless prevention services to low-income residents of Monterey County such as emergency rental assistance, security deposit guarantees, tenant education, and financial literacy education. The merger led to the creation of a cohesive HUDapproved organization that provides a continuum of housing support services and financial literacy education. HRC aims to address individuals’ and families’ basic need for safe and stable shelter. They service all Monterey County regions.

The City has a record of funding Legal Services for Seniors for Fair Housing and performs similar outreach as ECHO does to the community. Additionally, the City hosts public meetings regarding Fair Housing and encourages other local groups to provide workshops and distribute information. To Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 213, Packet Page 336 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-6
address language barriers, the City keeps bilingual (English and Spanish) flyers and brochures of Fair Housing provider information at the Community Development public counter. The City also distributes these flyers and brochures at the City’s public library. Random testing to identify issues, trends, and problem properties is performed through the City’s current housing service provider, ECHO housing, in addition to annual fair housing audits. Through the City’s Inclusionary Housing Program, home purchasers are required to receive HUD-approved first-time homebuyer education courses that cover financial literacy and basic lender and real estate education. The courses are offered in English and Spanish by a HUD-approved counselor. This program was set up to address the low home purchase approval rates in the City and the underrepresentation of Hispanic households in the ownership housing market in the City, as identified in the City’s 2017 Analysis of Impediments to Fair Housing Choice (AI). To address this impediment, the City also encourages residents to do extensive research of prospective lenders and available first-time homebuyer loan programs such as CalHFA and USDA, and contracts out to ECHO the monitoring of fair housing service contractors with lending activities in the City.

LENDING SERVICES
Discrimination in lending practices can be a major contributor to fair housing issues in a community, as this limits the ability of individuals to live in a location of their choosing. Loan denial rates can be informative of which kinds of discrimination are most prevalent in a community and which groups might need more loan application education targeted towards them. Loan denial rates can be derived from data provided by lending institutions in compliance with the Home Mortgage Disclosure Act (HMDA). Between 2011 and 2021, loan applications in the County increased. In 2021, 16,201 loans originated in Monterey County. In 2018, 7,042 loans originated in Monterey County and in 2011, 7,586 loans originated in Monterey County. In 2021 as presented by Table D-1, all races and ethnicities had greater denial rates in the County than the City except for Native American applicants indicating this group might need greater targeted outreach directed towards it.

Table D-1: Rate of Denial by Race/Ethnicity (2021), City and County Race/Ethnicity City County
White (Non-Hispanic) 9.4% 10.0%
Hispanic/Latino 10.3% 13.9%
Black or African American 7.4% 13.7%
Native American 57.1% 25.5%
Asian 9.5% 12.7%
Native Hawaiian and Other Pacific Islander 0.0% 12.4%
Two or More Races 0% 9.3%
Source: Home Mortgage Disclosure Act Data, 2021
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Charts D-1 and D-2 provide an overview of lending patterns in the City of Monterey compared to Monterey County. Chart D-1 shows that such potentially discriminatory lending patterns have continued at the County level up until the year 2021. The City has similarly seen uneven lending patterns and as of 2021 (the most recent year that data is available) Native American applicants had the highest loan denial rates, followed by Hispanic applicants, and Non-Hispanic White applicants.

As Chart D-1 demonstrates, Non-Hispanic White, Hispanic, and Native Hawaiian and Other Pacific Islander applicants have seen a decline between 2018 and 2021 in loan denial rates while the other applicant groups have seen more variation between increases and decreases in loan denial rates. Most groups at the County level have seen steady decline between 2018 and 2021 in loan denial rates other than Black or African American and Native American applicants. Other groups have either maintained the same rate in the last couple years or reduced the rate by a few percentage points. Charts D-3 and D-4 demonstrate that in 2021 the City had higher loan approval rates for both home improvement and home purchase loans than the County.

The data do not indicate the grounds for the denial, and can not be used to prove that the denials were not justified on the basis of standard financial criteria; however, the trend suggests both a potential for bias within the financial system and a need for financial literacy training among non-whites, particularly Native American applicants, to help those groups better understand how to improve their credit scores.

BROKERAGE SERVICES
The Monterey County Association of Realtors (MCAR) is the primary association of real estate brokers or salespersons whose business is in the City of Monterey. MCAR has a Multiple Listing Service (MLS)—MLSListings Inc—and is part of the Norcal MLS Alliance, an MLS data integration project across the seven leading MLSs in Northern California. MCAR is bound by the Code of Ethics and Standards of Practice of the National Association of Realtors (NAR), which explicitly states in Article 10 that members shall not discriminate against any person based on race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. In addition to adopting the ethics standards set by the NAR, the state branch promotes its own diversity and inclusion programs, such as the Latino Initiative Voices in Action program, which provides educational materials for members on homeownership opportunities and fraud prevention.

PROPERTY MANAGEMENT
Between 2017 and 2019, the City of Monterey conducted outreach to property management companies in the community to help increase awareness of and expand education around fair housing laws. By reaching out to small rental properties where the owners and managers were potentially unaware of the fair housing laws, the City sought to address the identified discriminatory practices from the City’s 2017 Analysis of Impediments to Fair Housing Choice (AI).

Additionally, the California Apartment Association developed the California Certified Residential Manager Program (CCRM) to provide comprehensive series of courses gears towards improving the approach, attitude and professional skills of on-site property managers. The program consists of 31.5 hours of training, including fair housing and ethics courses titled “Fair Housing: It’s the Law” and “Ethics in Property Management”. Additionally, the National Association of Residential Property Managers (NARPM) offers courses in ethnics and fair housing.

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Chart D-1: HMDA Loan Denial Rates by Race/Ethnicity, City of Monterey Source: Home Mortgage Disclosure Act Data, 2018-2021
Chart D-2: HMDA Loan Denial Rates by Race/Ethnicity, Salinas MSA (Monterey County) Source: Home Mortgage Disclosure Act Data, 2018-2021

0.0%

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20.0%

30.0%

40.0%

50.0%

60.0%

70.0%
White (NonHispanic)Hispanic/Latino Black or African
American
Native American Asian Native Hawaiian
and Other Pacific
Islander
Two or More
Races
City of Monterey
2018 2019 2020 2021

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%
White (NonHispanic)Hispanic/Latino Black or
African
American
Native
American
Asian Native
Hawaiian and
Other Pacific
Islander
Two or More
Races
Salinas MSA
2018 2019 2020 2021
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Chart D-3: HMDA Home Improvement Loan Applications, 2021 Source : Home Mortgage Disclosure Act Data, 2021
Chart D-4: HMDA Home Purchase Loan Applications, 2021
Source : Home Mortgage Disclosure Act Data, 2021

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%
100.0%
City of Monterey Salinas MSA
Home Purchase
Approved Denied Other

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%
100.0%
City of Monterey Salinas MSA
Home Improvement
Approved Denied Other
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 217, Packet Page 340 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing

FAIR HOUSING COMPLIANCE
California Fair Employment and Housing Act (FEHA) (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2), FEHA Regulations (California Code of Regulations (CCR), title 2, sections 12005-12271), and Government Code section 65008 applies to actions of a city, county, city and county, or other local government agency making them “null and void” if they deny an individual or group of individuals the enjoyment of residence, landownership, tenancy, or other land use in the state because of membership in a protected class, the method of financing, and/or the intended occupancy.

More specifically, the Government Code imposes requirements related to housing including the following:
• Government Code section 8899.50 requires all public agencies to administer programs and activities relating to housing and community development in a manner to affirmatively further fair housing and take no action that is materially inconsistent with its obligation to affirmatively further fair housing.
• Government Code section 11135 et seq. prohibits discrimination and requires full and equal access to all programs and activities conducted, operated, administered, or funded with financial assistance from the State, regardless of one’s membership or perceived membership in a protected class, as that term is defined in Government Code section 12926. • Density Bonus Law (Gov. Code § 65915.)
• Housing Accountability Act (Gov. Code § 65589.5.)
• No-Net-Loss Law (Gov. Code § 65863.)
• Least Cost Zoning Law (Gov. Code § 65913.1.)
• Excessive subdivision standards (Gov. Code § 65913.2.) • Limits on growth controls (Gov. Code, § 65302.8.)
• Housing Element Law (Gov. Code, § 65583, esp. subds. (c)(5), (c)(10).) As a recipient of the Community Development Block Grant from the US Department of Housing and Urban Development (HUD), and Home Investment Partnerships (HOME) funds, the City is required to maintain Affirmatively Furthering Fair Housing (AFFH) certification and to demonstrate compliance through its Consolidated Plan and Annual Action Plans, which are submitted to HUD for approval prior to receipt of the funds. Monterey has not denied any affordable housing project in its jurisdiction, and will implement this Housing Element to ensure adequate sites to accommodate its RHNA obligations during the planning period and to comply with other legal requirements.

Monterey has made a number of revisions to its Specific Plans and Zoning Codeto implement its current General Plan and Housing Element and is committed to making further revisions to meet all applicable requirements of State law based on the review undertaken to prepare this Housing Element.

Many of these revisions will advance fair housing. Section D.6, Summary and Conclusions, identifies areas where constraints to furthering fair housing remain. The Housing Action Plan (Chapter 4) describes the specific programs Monterey will undertake during the planning period to remove or lessen these constraints.

D-10
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 218, Packet Page 341 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-11
D.2 Segregation and Integration
Patterns of segregation within a community may arise from both public and private housing discrimination, whether intentional or unintentional. Although racial and ethnic segregation is perhaps the most common and well-known form, other protected classes may also experience segregation. This section explores patterns and trends of segregation based on race and ethnicity, disability, familial status, and income level in the City of Monterey and the surrounding region. These groups are not mutually exclusive, and there may be considerable overlap across each protected class.

Histtorically throughout the U.S., including in California and Monterey County, restrictive and exclusionary zoning practices have contributed to racial and economic segregation. 8 The First Peoples of Monterey include the Rumsen and Esselen Ohlone nations. At the time of the arrival of Spaniards in 1770 it is estimated that the indigenous population of the Monterey Bay was approximately 7,000 people (10). At the arrival of Fr. Junipero Serra, Don Gaspar de Portola, and Fr.

Juan Crespi in 1770 a Presidio and Royal Chapel was constructed and Monterey was declared for New Spain. Although the original plan for the Missions was to hold the lands in the trusts of the church for ten years and build a civilian town; in 1834 the lands in Monterey were transferred to private holdings. (10) The Ohlone communities of Rumsen, Esselen, and Salinan background still live in the area today.

Historical records show that African-Americans lived and worked in Monterey County and in what is now the city of Monterey as early as the 18th century. Several Africans are known to have been ship maintenance workers aboard the San Antonio, the ship on which Fr. Junipero Serra arrived in the region. At that time, what is now Monterey, was the Spanish territory of Alta California. Alejo Nino, an African Spaniard and free man, who came to the Monterey area with Junipero Serra in the 18th century was the first black man buried in Alta California. His grave is in the Presidio in Monterey. The Juna Bautista de Anza exploration and colonization trail of 1775-1176 included Afro-latinos from Mexico (11). Because few women were among the first Africans who settled in the Alta California territory, many of the first black settlers married Mexican or native American women. Africans first entered Mexico in 1519 and frequently intermarried; their descendants were considered mulattos or Afromestizos. In the mid-1830s, two men with multiracial backgrounds , Lt. Col. Manuel Victoria and Pio Pico, were appointed governors of Alta California. 9 Even though Mexico had a strict class system, it neither enslaved nor restricted those of African heritage. Mexico had a strict caste system that led to many Afromestizos seeking opportunities in Alta California. While the first slaves were brought to Mexico in the 16th century under New Spain, Mexico abolished slavery in 1839. Later in the 19th century, black men and women who were slaves, runaway slaves, or free joined the original settlers. In 1849, delegates to California’s first Constitutional Convention met at Colton Hall in Monterey and agreed to prohibit slavery in the new state. Section 18 of Article I stated, “Neither slavery, nor involuntary servitude, unless for the punishment of crimes, 8 Shahan Shahid Nawaz et al., "Single-Family Zoning in the Monterey Region: A California Zoning Atlas Snapshot”, Othering and Belonging Institute, University of California, Berkeley, July 10, 2023, https://belonging.berkeley.edu/single-family-zoning-monterey-region#footnote1_rj19xwi 9 Adkins, Jan Batiste, African Americans of Monterey Count”, Arcadia Publishing, 2015.

10. Architectural Resources Group, “National Historic Landmark District and Downtown Area Context Statement and Reconnaissance Survey: Monterey, California.” Prepared for City of Monterey, adopted February 21, 2012, revised May 1, 2012, 15.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 219, Packet Page 342 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing shall ever be tolerated in this State.”10 Because California was not a slave state, many of those who arrived as slaves were able to buy their freedom or escape slavery and lived free in Monterey.

Thirty years later, delegates to a second constitutional convention meeting in Sacramento, amended the Constitution by adding “Article 19, Chinese” which forbid the employment of Chinese by any corporation or by any state or local government“ except in punishment for crime”. Section 4 went on to authorize “all necessary power to the incorporated cities and towns of this State for the removal of Chinese without the limits of such cities and towns, or for their location within prescribed portions of those limits” and authorized the State Legislature to establish legislation to prohibit “the introduction into this State of Chinese”.11 Despite mandates like this, the federal Chinese Exclusion Act of 1882, and the State’s Alien Land Law (1913), Asians came to the Monterey peninsula to work in the County’s thriving agricultural and fishing industriesWith the Japanese arriving in Monterey during the 1890’s after the Chinese Exclusion Act (13). The first Asian settlers included part of a group of immigrants from China who arrived in the early 1850s settling first at Point Lobos in Carmel and then at Point Alones, next to the present site of the Monterey Bay Aquarium. The small fishing village at Point Alones initiated the fishing economy in Monterey. After the village burned in 1906, due to arson according to some sources, the Chinese were not allowed to return to Point Alones and moved throughout the region and established (leased?) another village at McAbee Beach, a short distance to the north and now the heart of the Cannery Row area of Monterey. 12 The Japanese community used white business partners to start canning businesses at Cannery Row.

Many of the African American families who came to the Monterey peninsula worked in agriculture, but as Monterey became a tourist destination many found jobs in hotels and restaurants and also as domestic workers. As early as 1902, the peninsula also became a place for military service. In 1917 as the United States entered World War I, the federal government established Fort Ord as a military training base for soldiers stationed in the nearby Presidio in Monterey. The presence of the base discouraged both housing and infrastructure development contributing to Seaside’s reputation as a less desirable place to live than Monterey especially as World War II brought the expansion of Fort Ord. By the end of the war, when President Harry S. Truman ordered full desegregation of the armed services, Seaside was still an unincorporated suburb of Monterey. Because of the increasing use of racially restrictive covenants in Monterey and many other communities in the county, many African Americans retiring from the military who were unable to purchase homes elsewhere in the area, remained in Seaside, which incorporated in 1954. By 1980, the black population of Seaside was 29.3 percent, larger than any other city in the county, but with the closure of Ford Ord the black population declined to 12.1 percent in 2000. Seaside still has the largest black population of any city in the county,

7.2 percent compared with 3.5 percent in Monterey.
10 “JoinCalifornia: Election History for the State of California”, http://www.joincalifornia.com/page/11 11 "Afro-Latino Presence in Early California”. https://www.nps.gov/juba/learn/historyculture/afro-latinos.htm 11 Constitution of the State of California, Adopted March 3, 1879, https://archives.cdn.sos.ca.gov/collections/1879/archive/1879-constitution.pdf 12 Marangoni-Simonsen, Dominique, A Forgotten History: How the Asian American Workforce Cultivated Monterey County’s Agricultural Industry, Despite National Anti-Asian Rhetoric, p. 230-234, Hastings Envt'l L.J. 229 (2021) https://repository.uchastings.edu/hastings_environmental_law_journal/vol27/iss1/6 13 Lyon, Sandy. The Japanese of the Monterey Bay Region. 1997 D-12
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 220, Packet Page 343 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-13
Chart D-5: Timeline of Segregation Policies in United States Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 221, Packet Page 344 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-14

RACE AND ETHNICITY
Racial and ethnic patterns of segregation in the City of Monterey are better understood in the context of changing regional and local demographics and historical settlement precedents. As shown in Table D-2, the population of Monterey County increased by 2.0 percent between 2010 and 2020, with a projected increase of 5.6 percent between 2020 and 2040. In the ten years between 2010 and 2020, the Hispanic/Latino population had the greatest growth rate of 12.7 percent followed by the Non-Hispanic Multiracial category (10.2 percent). All other groups saw small reductions in their numbers while the Non-Hispanic White population experienced the greatest percent of decline in residents (-3.1 percent). Looking forward to 2040, it is anticipated that the Non-Hispanic Multiracial and Hispanic/Latino groups will continue to see the greatest increases in population (23.4 percent and 16.6 percent, respectively), followed by Non-Hispanic Native Americans (10.8 percent) and Non-Hispanic Black or African Americans (1.9 percent). All other groups will see slight reductions in their populations as shown in Table D-2.

Table D-2: Population Growth by Race/Ethnicity, Monterey County, 2010-2040 Race/Ethnicity County Percent Change
2010 2020 2040 Forecast 2010-2020 2020-2040
White (Non-Hispanic) 137,308 133,076 124,779 -3.1% -6.2% Hispanic/Latino 230,783 260,033 303,158 12.7% 16.6%
Black or African American (NH) 11,452 11,085 11,292 -3.2% 1.9% Native American (NH) 1,410 1,412 1,564 -0.1% 10.8%
Asian (NH) 24,015 23,691 22,137 -1.3% -6.6%
Native Hawaiian and Other
Pacific Islander (NH)
1,895 1,921 1,902 -1.4% -1.0%
Multiracial (NH) 9,142 10,072 12,433 10.2% 23.4%
Minority¹ 278,697 298,142 352,486 7.0% 18.2%
Total 416,005 441290 477,265 2.0% 5.6%

1. Minority refers to any person not listed as NH White Source: California Department of Finance, Table P-2D County Population by Total Hispanic and Non-Hispanic Race (2010-2060) The geographical distribution of race and ethnicity throughout the County is uneven. As shown in Table D-3, Monterey County has thirteen Census County Subdivisions with varying shares of NonHispanic White, Hispanic/Latino, and Non-Hispanic Other Races (Black or African American, Native American, Asian, Native Hawaiian and Other Pacific Islander, and Multiracial). The City of Monterey is in the Seaside-Monterey Subdivision. It has the highest share of Non-Hispanic Other Race residents in the County and has the smallest difference in percentage between its Hispanic/Latino population and Non-Hispanic White population.

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Table D-3: Monterey County Subdivisions by Race/Ethnicity, 2020 White (NH) Hispanic/Latino Other Race (NH)
Carmel Valley 83.2% 11.3% 5.5%
Carmel-by-the-Sea 82.4% 8.5% 9.1%
Toro Park 75.2% 14.7% 10.1%
Big Sur 61.6% 34.0% 4.4%
San Ardo 57.9% 30.6% 11.5%
Seaside-Monterey 52.4% 26.5% 21.0%
Castroville 25.6% 63.0% 11.3%
Pajaro 23.5% 71.1% 5.5%
King City 15.8% 80.8% 3.5%
Salinas 13.6% 77.9% 8.6%
Gonzales 12.0% 72.4% 15.6%
Soledad 8.7% 88.8% 2.5%
Greenfield 5.0% 91.6% 3.4%
Source: U.S. Census Bureau, Census 2020 ACS Five-Year Estimates (Table DP05) Most of the Subdivisions with Non-Hispanic White majority populations (Carmel Valley, Carmel-bythe-Sea, Toro Park, Big Sur, and Seaside-Monterey) are adjacent to each other in the western part of the County along the coast. The remaining Subdivisions with minority-majority populations are located inland to the east and southeast (King City, Salinas, Gonzales, Soledad, and Greenfield). As a result, the County as a whole shows a pattern of racial and ethnic segregation.

As shown in Table D-4, the City remains substantially less diverse than Monterey County as a whole.

Between 2010 and 2020, the share of White residents in the City decreased slightly from 69.2 percent to 67.7 percent and the share of other ethnicities increased slightly; however, the share of White residents in the City is still more than double that of the County, which has a majority Hispanic/Latino population.

One method to gauge the extent of segregation in a jurisdiction is the dissimilarity index. The dissimilarity index measures the degree to which two groups are evenly distributed across a geographic area and is a commonly used tool for assessing residential segregation between two groups. The dissimilarity index provides values ranging from 0 to 100, where higher numbers indicate a higher degree of segregation among the two groups measured. According to HUD, dissimilarity index values between 0 and 39.99 generally indicate low segregation, values between 40 and 54.99 generally indicate moderate segregation, and values between 55 and 100 generally indicate a high level of segregation.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 223, Packet Page 346 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing Table D-4: Change in Race/Ethnicity, City of Monterey and Monterey County, 2010-2020 Race/Ethnicity
City of Monterey Monterey County
2010 2020 Percent
Change
2010 2020 Percent
Change
White (NH) 69.2% 67.7% -1.5% 34.3% 29.5% -4.8%
Hispanic/Latino 14.2% 17.0% 2.8% 53.7% 59.0% 5.3%
Black or African American (NH) 2.3% 3.6% 1.3% 3.0% 2.4% -0.6% Native American (NH) 0.4% 0.3% -0.1% 0.3% 0.2% -0.1%
Asian (NH) 9.1% 6.0% -3.1% 6.0% 5.6% -0.4%
Native Hawaiian and Other
Pacific Islander (NH)

0.4% 0.4% 0.0% 0.4% 0.4% 0.0%
Other (NH) 0.1% 0.2% 0.1% 0.3% 0.2% -0.1%
Two or More Races (NH) 4.3% 4.9% 0.6% 2.1% 2.8% 0.7%
Source: U.S. Census Bureau, Census 2000 (SF1, Table P004); Census 2010 (SF1, Table P9); 2020 ACS Five-Year Estimates (Table DP05)
The dissimilarity index uses non-Hispanic White residents as the primary comparison group; however, Monterey County, along with the State of California, is a majority-minority jurisdiction, meaning that non-White ethnic groups make up a majority of the population. Dissimilarity index values compare racial and ethnic groups against the distribution of non-Hispanic white residents in a community and do not directly measure segregation between minority groups (e.g., non-Hispanic Black). As Chart D-6 shows, the County dissimilarity index is significantly higher in the County, exceeding 55 for White/Hispanic between 1990 and 2020, indicating there has been a high and increasing level of segregation. The dissimilarity between White/Black residents indicates high segregation in 1990, but decreased segregation in 2020 (indicating moderate segregation). The White/Asian segregation level has been below 39.99 since 1990, indicating sustained low segregation.

Based on the dissimilarity index, levels of segregation are much lower within the City of Monterey than the County, with all scores between 1990 and 2020 falling below 39.99. Scores have not always trended downward though. In 2010, there were spikes in scores for White/Asian and White/Hispanic dissimilarity from 2000, and in 2020, the White/Black score increased as compared to 2010. As of 2020, for both the County and the City, White/Asian dissimilarity is the lowest followed by White/Black, and White/Hispanic dissimilarity is highest.

The shortcoming of the dissimilarity index is it may not capture the nuances of segregation between minority groups within the city. To capture these nuances, HCD has provided neighborhood segregation typologies developed by the Urban Displacement Project (UDP) at UC Berkeley. These typologies identify tracts based on which racial/ethnic groups have more than 10 percent representation within a given census tract. The typologies consider five racial/ethnic groups— including Black, Latinx, White, Asian, and Other.

Map D-1 shows racial integration by neighborhood in the city. New Monterey, Del Monte Beach, Villa Del Monte, and Del Monte Grove/Laguna Grande neighborhoods are Latinx-White. The Aguajito Oaks, Deer Flats, Fisherman Flats, Monterey Vista, Glenwood, and Skyline neighborhoods are mostly D-16
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White. The Naval Postgraduate neighborhood is Asian-White.The Presidio, Old Town, Downtown, Oak Grove, other Naval Postgraduate School area near the Bay, and Alta Mesa neighborhoods are 3 Group Mixed. As indicated by Table D-4 above, Hispanic or Latino, Asian, and non-Hispanic White residents are the three largest groups represented in the City. The non-Hispanic White population is the largest, and as Map D-1 indicates, makes up greater than ten percent of every part of the City (all the 3 Group Mixed areas include non-Hispanic White as one of the groups).

Chart D-6: City of Monterey and Monterey County Dissimilarity Index Source: U.S. Census Bureau, 2020 ACS Five-Year Estimates (Table B01003 and Table B03002) As a majority Non-Hispanic White community adjacent to other majority Non-Hispanic White communities in a County that is majority Hispanic, the City of Monterey can be seen as part of a racially/ethnically concentrated area of non-Hispanic White residents. However, as shown on Chart D-6, dissimilarity scores indicate that the City is less segregated than the County as a whole. Further, the 2018 ESRI Diversity Index shows that many areas of the City of Monterey are relatively racially and ethnically integrated. The index captures the racial and ethnic diversity of a geographic area in a single number, from 0 to 100 determined by the likelihood that two people selected at random are of the same race. The most diverse block groups have scores 85 or greater while the least diverse have scores of 55 or less (labeled as Lower Diversity in yellow on Map D-2). As shown in Map D-2, the areas with the highest diversity are on the eastern side of the City in Villa Del Monte, Del Monte Grove/Laguna Granada, and Casanova Oak Knoll neighborhoods. Areas of low diversity in Map D-2 are concentrated in the Monterey Vista, Deer Flats, Aguajito, and Fisherman Flats neighborhoods. The neighborhoods with lower diversity are also areas characterized as Mostly White by Map D-1, but these neighborhoods are a small sum of the total area of the City. The rest of the City have scores equal or greater than 55, 70, or even 85.

In Monterey, where there is greater population density overall and greater access to opportunities there is greater diversity than countywide. As other parts of this analysis observe, however, this diversity varies within the city and is closely associated with the prevalence of single-family zoning (see Sections D3 and D4). Map D-1 shows that access to transit, jobs, and other measures of economic, 0 10
20 30
40 50
60 70
1990 2000 2010 2020 1990 2000 2010 2020
City of Monterey Monterey County/Salinas MSA
Dissimilarity Index
White/Black White/Hispanic White/Asian
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environmental, and educational opportunities is greater in the areas with the highest population numbers and the greatest diversity (3 Group Mixed). These results may be skewed, however, by the fact that the Naval Base is in the 3 Group Mixed section of Map D-1 while much of the Mostly White area of the Map is non-residential (e.g., Fort Ord and Ryan Ranch) or very sparsely settled or undeveloped like the hillside open space adjacent to Highway 68. Maps D-3 and D-4 present racial segregation and integration throughout the County in both 2010 and 2020. The maps show that the City of Monterey is a High White Segregation area, but it does not exist in isolation; other High White Segregation cities in the County are present along the western edge of the County and in the south. In both instances, those areas that are developed are zoned for single-family use only.

PERSONS WITH DISABILITIES
Persons with disabilities may face discriminatory housing practices based on their disability, including the lack of accessible dwellings and refusal by housing providers to offer reasonable accommodations.

Data showsshows that ffromfrom a housing perspective, there are several different housing needs of disabled persons. For those disabled with a developmental or mental disability, one of the most significant problems is securing affordable housing that meets their specialized needs. Housing needs can range from institutional care facilities to facilities that support partial or full independence (such as group care homes). Supportive services such as daily living skills and employment assistance need to be integrated into the housing situation also. A disabled person with a mobility limitation requires housing that is physically accessible.

According to the 2021 ACS five-year estimates, 4,542 persons (19 percent of the non-institutionalized population) had a disability in the City of Monterey. As shown in Map D-5, there are more tracts containing 10-20 percent of the population with a disability than tracts with less than 10 percent.

However, no single census tract contains a population with a disability that exceeds 20 percent of the tract’s total population, which is the threshold typically used by HCD as an indicator of overconcentration. In the City of Monterey, there are seven residential care facilities for the elderly and one social rehabilitation facility.13
Map D-6 demonstrates areas within the County with larger populations such as in the City of Monterey, Carmel Valley, and Salinas, 10-20 percent of the population has a disability while less populated areas have less than 10 percent. This indicates the City is typical of the County. At the County level supportive housing services for those with disabilities are limited. There is area 8 adult residential facilities and two residential care facilities for the elderly. The adult residential facility (located in Greenfield) has the capacity to serve 40 people, and the residential care facilities for the elderly (located in Carmel Valley and Castroville) have the capacity to serve six persons each.

According to the California Department of Social Services, Community Care Licensing Division, most of the County’s adult residential care facilities for adults and elderly are located in Salinas (25 adult residential facilities and 21 elderly residential facilities). Additionally, there are five adult day care centers and one social rehabilitation facility in Salinas. In Seaside, there are two residential care facilities for the elderly and one adult residential facility. 13 “Assisted Living Facilities in Monterey, CA” accessed on August 2 at https://www.caring.com/senior-living/assistedliving/california/monterey Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 226, Packet Page 349 A§
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Data Source: OBI, 2022; City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022.

J:\GISData\584 Monterey GP\GIS\Projects\AFFH\Racial Segregation Integration 2010 Monterey County.mxd Racial Segregation/Integration (OBI, 2010) - Tract
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Low-Medium Segregation
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High White Segregation
! Cities in Monterey County
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Counties
Interstate
Highways
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 229, Packet Page 352 !
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MONTEREY
FRESNO

SAN BENITO

MERCED MADERA
KINGS

SAN LUIS OBISPO KERN

SANTA CRUZ

SANTA CLARA
Chualar
Aromas
Castroville
Elkhorn
Del Monte Forest
Spreckels
Moss Landing
Pajaro
Prunedale
Carmel-by-the-Sea
Del Rey Oaks
Gonzales
Greenfield
Marina
Monterey
King City
Salinas
Sand
City
Soledad
Big Sur
Carmel Valley
Bradley
San Ardo
San Lucas
Lockwood
Parkfield
Seaside
D-4: Racial Segregation/Integration (2020), Monterey County 0 5 10 20
Miles
Data Source: OBI, 2022; City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022.

J:\GISData\584 Monterey GP\GIS\Projects\AFFH\Racial Segregation Integration 2020 Monterey County.mxd Racial Segregation/Integration (OBI, 2020) - Tract
No Data Applicable to
2021 Census Tract Boundary
Racially Integrated
Low-Medium Segregation
High POC Segregation
High White Segregation
! Cities in Monterey County
Monterey County
Counties
Interstate
Highways
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 230, Packet Page 353 A§
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A§
AÔ
P a c i f i c O c e a n
Monterey
Regional
Airport
Carmel
By-The-Sea
Sand
City
Seaside
Pacific Grove
Del Rey Oaks
Via Paraiso
Park
Ryan Ranch
Community Park
U.S. Navy
Beachfront
Veterans
Memorial Park
Huckleberry Hill
Nature Preserve
Del Monte
Beach
Monterey
State Beach
Lower Presidio Historic Park
Fisherman's
Flat Greenbelt
El Estero
Park
Old Capitol
Site
Monterey
City Hall
W Franklin St Tyler St
Prescott Ave
Fairground Rd
Ragsdale D r
Abrego St
Cam
Aguaj ito
Casa Verde Way
N Fremont St
Montecito Ave
Garden Rd
El Dorado St
Mark Thomas Dr
Upper Ragsdale Dr
Fremont St
Glenwood Cir
Sc enic
r D
Lighthouse Ave
Aguajito Rd
Munras Ave
Pacific St
MarVista Dr
Del Monte Ave
S Boundary Rd
SkylineDr
Naval
Postgraduate
School
Naval
Postgraduate
School
Naval
Postgraduate
School
Presidio of
Monterey
Presidio of
Monterey
D-5: Persons with Disabilities in the City
Data Source: Affirmatively Furthering Fair Housing Data and Mapping Resources, Housing and Community Development, California, 2021; American Community Survey (ACS) (2015-2019); City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022. 0 ¼ ½ 1
Miles
J:\GISData\584 Monterey GP\GIS\Projects\AFFH\Persons with Disabilities in the City.mxd Percent of Population with a Disability
(ACS, 2015-2019) - Tract
10% - 20%
< 10%
City of Monterey
Sphere of Influence
Neighboring City
Park
Water
Fairgrounds
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 231, Packet Page 354 !
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MONTEREY
FRESNO

SAN BENITO

MERCED MADERA
KINGS

SAN LUIS OBISPO KERN

SANTA CRUZ

SANTA CLARA
Aptos Corralitos
Freedom
Interlaken Soquel Rio del Mar
Capitola
Ridgemark
Hollister
Santa Cruz
Watsonville
San Juan
Bautista
La Selva
Beach
Tres Pinos
Opal Cliffs
Paicines
Biola
Cantua Creek
Lake
Nacimiento
South Dos
Palos Dos Palos
Tranquillity
Coalinga
Huron
Avenal
San Miguel
Madera
Firebaugh
Mendota
Kerman
San Joaquin
Three Rocks
Oak Shores
La Vina
Helm
Cholame
Burrel
San Benito
Idria
Chualar
Aromas
Castroville
Elkhorn
Del Monte
Forest
Spreckels
Moss Landing
Pajaro
Prunedale
Carmel-by-the-Sea
Del Rey Oaks
Gonzales
Greenfield
Marina
Monterey
Pacific Grove
King City
Salinas
Sand City
Seaside
Soledad
Big Sur
Carmel Valley
Bradley
San Ardo
San Lucas
Lockwood
Parkfield
D-6: Persons with Disabilities in the County
0 5 10 20
Miles
Data Source: Affirmatively Furthering Fair Housing Data and Mapping Resources, Housing and Community Development, California, 2021; American Community Survey (ACS) (2015-2019); City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022.

J:\GISData\584 Monterey GP\GIS\Projects\AFFH\Persons with Disabilities in the County.mxd Percent of Population with a Disability
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10% - 20%
< 10%
! Cities in Monterey County
Monterey County
Counties
Interstate
Highways
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 232, Packet Page 355 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-25
The City has enacted regulations to ensure that reasonable accommodations are made for for housing designed for occupancy by, orwith supportive servicesfor personswith disabilities. As described more fully in Appendix C, the City amended the Zoning Code in 2016 to add Article 30, Reasonable Accommodation to provide a process for individuals with disabilities to request relief from the various land use, zoning, or building laws. To facilitate the review and approval process, requests for reasonable accommodation are reviewed by the City Manager or a designated staff member unless the request is submitted for concurrent review with an application for discretionary planning or zoning approval. The City has appointed an ADA Coordinator to assist applicants with preparation and submission of accommodation requests.

FAMILIAL STATUS
Familial status may be another basis for discriminatory housing practices, including discrimination against families with children. Such discrimination may limit the choices where families can live and lead to geographic concentrations within a community. In particular, female headed households with children may be targets of discrimination. Within the City, as indicated in Table D-5, most children under 18 years live in married couple families (82.9 percent), which is greater than the share in the County (69.1 percent). Female headed households are more common in the County with 20.5 percent of children under 18 living in them as compared to 9.1 percent in the City, while the percentage of male headed households is more similar between the City and the County (8.0 percent and 10.4 percent respectively). As shown in Map D-7, there is one tract in the City of Monterey comprising Downtown and Old Town with more than 20 percent of children under 18 years in female headed households, the threshold above which is considered overconcentration. Map D-8 makes it clear that almost all children in the City live in married couple households. As demonstrated by Map D-9, the County has geographically large but less populous areas in the south and a few areas in the northern and central parts of the County with 20-40 percent of children living in female headed households.

Table D-5: Children Under 18 Years in Monterey Households, 2020 Household Type City of Monterey Monterey County
Number Percent Number Percent
Married-Couple Family 1,805 82.9% 33,592 69.1%
Male Householder, No Wife Present 175 8.0% 5,069 10.4%
Female Householder, No Husband Present 198 9.1% 9,942 20.5% Total 2,178 100.0% 48,603 100.0%
Source: U.S. Census Bureau, 2020 ACS Five-Year Estimates (Table S0901) Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 233, Packet Page 356 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing According to the 2012-2016 ACS, about 46 percent of female single-parent family households in Salinas lived below the poverty level (compared to less than 16 percent of all family households in the City). In Seaside, 39 percent of female single-parent family households lived below the poverty level (compared to only 11 percent of all family households in the City). While in Monterey, only nine percent of female single-parent family households lived below the poverty level (compared to only three percent of all family households in the City). In Monterey County as a whole, about 40 percent of female households lived in poverty; by comparison, 12 percent of all family households in the County lived below the poverty level. Therefore, due to the presence of a concentration of female headed households in the City of Monterey and the pattern of poverty among this group throughout the City and County, female headed households might have less choice in their housing selection. But, where they are concentrated is considered an area (Downtown and Old Town) where access to opportunity is higher than other areas, specifically for jobs and education.

INCOME LEVEL
Geographic concentration by income, including concentration of poverty, is another type of segregation that may exist within a jurisdiction. The concentration of low- or moderate-income (LMI) individuals provides one method to gauge the extent of segregation. HUD defines an LMI area as a census tract or block group where over 51 percent of the households have an annual income that is less than 80 percent area median income (AMI), based on HUD income definitions. Map D-10 provides the distribution of LMI block groups across the City of Monterey. As seen in Map D-10, within the City there are three LMI areas that fall within the Old Town, Downtown, Oak Grove, and Del Monte neighborhoods. The downtown LMI area is also a census tract identified as having an overconcentration of Female Households with Children Under 18 Years on Map D-7.

In Monterey County, as shown on Map D-11, LMI areas exist adjacent to the City of Monterey in the cities of Seaside, Sand City, and Del Rey, to the north near Salinas, Castroville, and Pajaro, and to the south off of the 101 Freeway near Chualar, Gonzales, Soledad, Greenfield, King City, and San Lucas.

As identified in the previous section on the racial/ethnic segregation in the County (Table D-3) many of these cities fall into the County Subdivisions with majority Hispanic/Latino populations.

Poverty rates and the concentration of poverty over time can provide an insight into the economic wellbeing of households and individuals in the County and in the City. As of 2020, the City had a poverty rate of 11.5 percent and the County had a poverty rate of 12.0 percent, both of which are lower than the California poverty rate of 12.6 percent. However, poverty is unevenly distributed by race/ethnicity in the City of Monterey (see Table D-6). Residents living below the poverty line who identify as Hispanic/Latino, Native American, Asian, and Other are overrepresented when compared to their share of the total population, while residents who identify as White, Black or African American, Native Hawaiian and Other Pacific Islander, and Two or More Races are underrepresented among those below the poverty line. For instance, while Hispanic/Latino residents make up 14.6 percent of the total population they constitute 30.6 percent of the population living below the poverty line. Residents who identify as Black or African American, on the other hand, make up 3.0 percent of the total population but constitute 2.9 percent of the population living below the poverty line.

D-26
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 234, Packet Page 357 A§
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Monterey
Regional
Airport
A»
Carmel
By-The-Sea
Sand
City
Seaside
Pacific Grove
Del Rey Oaks
Via Paraiso
Park
Ryan Ranch
Community Park
U.S. Navy
Beachfront
Veterans
Memorial Park
Huckleberry Hill
Nature Preserve
Del Monte
Beach
Monterey
State Beach
Lower Presidio Historic Park
Fisherman's
Flat Greenbelt
El Estero
Park
Old Capitol
Site
Monterey
City Hall
W FranklinSt Tyler St
Prescott Ave
Fairground Rd
Ragsd aleDr
Abrego tS
Cam
Agu jaito
CasaVerd eWay
N Fremont St
Montecito Ave
Gard enRd
ElDorado tS
MarkThomasDr
Upper Ragsd aleDr
FremontSt
Glenw ood Cir
Scenic
r D
Lighthouse Ave
AugaijtoRd
Munras Ave
Pacific St
MarVistaDr
DelMonteAve
SBound aryRd
SkylineDr
Naval
Postgraduate
School
Naval
Postgraduate
School
Naval
Postgraduate
School
Presidio of
Monterey
Presidio of
Monterey
D-7: Percent of Child ren in Female-Head ed Household s in the City Data Source: Affirmatively Furthering Fair Housing Data and Mapping Resources, Housing and Community Development, California, 2021; American Community Survey (ACS) (2015-2019); City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022. 0 ¼ ½ 1
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J:\GISData\584 Monterey GP\GIS\Projects\AFFH\Percent of Children in Female-Headed Households in the City.mxd Percent of Children in Female Householder,
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City of Monterey
Sphere of Influence
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Park
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Fairgrounds
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 235, Packet Page 358 A§
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P a c i f i c O c e a n
Monterey
Regional
Airport
Carmel
By-The-Sea
Sand
City
Seaside
Pacific Grove
Del Rey Oaks
Jacks
Ballpark
Oak Newton
Park Hilltop Park
And Center
Via Paraiso
Park
Ryan Ranch
Community Park
Quarry Park
U.S. Navy
Beachfront
San Carlos
Beach Park
Soldier Field
Larkin
School Park
Veterans
Memorial Park
Huckleberry Hill
Nature Preserve
Don Dahvee
Park
Iris Canyon
Park
Del Monte
Beach
Monterey
State Beach
Lower Presidio Historic Park
Fisherman's
Flat Greenbelt
El Estero
Park
Old Capitol
Site
Monterey
City Hall
W Franklin St Tyler St
Prescott Ave
Fairground Rd
Ragsdale D r
Abrego St
Cam
Aguaj ito
Casa Verde Way
N Fremont St
Montecito Ave
Garden Rd
El Dorado St
Mark Thomas Dr
Upper Ragsdale Dr
Fremont St
Glenwood Cir
Sc enic
r D
Lighthouse Ave
Aguajito Rd
Munras Ave
Pacific St
MarVista Dr
Del Monte Ave
S Boundary Rd
SkylineDr
Naval
Postgraduate
School
Naval
Postgraduate
School
Naval
Postgraduate
School
Presidio of
Monterey
Presidio of
Monterey
D-8: Percent of Children in in Married-Couple Households in the City Data Source: Affirmatively Furthering Fair Housing Data and Mapping Resources, Housing and Community Development, California, 2021; American Community Survey (ACS) (2015-2019); PlaceWorks, 2021; City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022. 0 ¼ ½ 1
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J:\GISData\584 Monterey GP\GIS\Projects\AFFH\Percent of Children in in Married-Couple Households in the City.mxd Percent of Children in
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City of Monterey
Sphere of Influence
Neighboring City
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Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 236, Packet Page 359 !
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MONTEREY
FRESNO

SAN BENITO

MERCED MADERA
KINGS

SAN LUIS OBISPO KERN

SANTA CRUZ

SANTA CLARA
Aptos Corralitos
Freedom
Interlaken Soquel Rio del Mar
Capitola
Ridgemark
Hollister
Santa Cruz
Watsonville
San Juan
Bautista
La Selva
Beach
Tres Pinos
Opal Cliffs
Paicines
Biola
Cantua Creek
Lake
Nacimiento
South Dos
Palos Dos Palos
Tranquillity
Coalinga
Huron
Avenal
San Miguel
Madera
Firebaugh
Mendota
Kerman
San Joaquin
Three Rocks
Oak Shores
La Vina
Helm
Cholame
Burrel
San Benito
Idria
Chualar
Aromas
Castroville
Elkhorn
Del
Monte Forest
Spreckels
Moss Landing
Pajaro
Prunedale
Carmel-by-the-Sea
Del Rey Oaks
Gonzales
Greenfield
Marina
Monterey
King City
Salinas
Sand
City Seaside
Soledad
Big Sur
Carmel Valley
Bradley
San Ardo
San Lucas
Lockwood
Parkfield
D-9: Percent of Children in Female-Headed Households in the County 0 5 10 20
Miles
Data Source: Affirmatively Furthering Fair Housing Data and Mapping Resources, Housing and Community Development, California, 2021; American Community Survey (ACS) (2015-2019); City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022.

J:\GISData\584 Monterey GP\GIS\Projects\AFFH\Percent of Children in Female-Headed Households in the County.mxd Percent of Children in Female Householder,
No Spouse/Partner Present Households
20% - 40%
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Monterey County
Counties
Interstate
Highways
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 237, Packet Page 360 A§
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P a c i f i c O c e a n
Monterey
Regional
Airport
Carmel
By-The-Sea
Sand
City
Seaside
Pacific Grove
Del Rey Oaks
Via Paraiso
Park
Ryan Ranch
Community Park
U.S. Navy
Beachfront
Veterans
Memorial Park
Huckleberry Hill
Nature Preserve
Del Monte
Beach
Monterey
State Beach
Lower Presidio Historic Park
Fisherman's
Flat Greenbelt
El Estero
Park
Old Capitol
Site
Monterey
City Hall
W Franklin St Tyler St
Prescott Ave
Fairground Rd
Ragsdale D r
Abrego St
Cam
Aguaj ito
Casa Verde Way
N Fremont St
Montecito Ave
Garden Rd
El Dorado St
Mark Thomas Dr
Upper Ragsdale Dr
Fremont St
Glenwood Cir
Sc enic
r D
Lighthouse Ave
Aguajito Rd
Munras Ave
Pacific St
MarVista Dr
Del Monte Ave
S Boundary Rd
SkylineDr
Naval
Postgraduate
School
Naval
Postgraduate
School
Naval
Postgraduate
School
Presidio of
Monterey
Presidio of
Monterey
D-10: Low- to Moderate-Income Population, Block Group, City Data Source: Affirmatively Furthering Fair Housing Data and Mapping Resources, Housing and Community Development, California, 2021; American Community Survey (ACS) (2011-2015); HUD, 2020; City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022. 0 ¼ ½ 1
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J:\GISData\584 Monterey GP\GIS\Projects\AFFH\Low- to Moderate-Income Population Block Group City.mxd Low to Moderate Income Population (HUD)
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Sphere of Influence
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Park
Water
Fairgrounds
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 238, Packet Page 361 !
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MONTEREY
FRESNO

SAN BENITO

MERCED MADERA
KINGS

SAN LUIS OBISPO KERN

SANTA CRUZ

SANTA CLARA
Aptos Corralitos
Freedom
Interlaken Soquel Rio del Mar
Capitola
Ridgemark
Hollister
Santa Cruz
Watsonville
San Juan
Bautista
La Selva
Beach
Tres Pinos
Opal Cliffs
Paicines
Biola
Cantua Creek
Lake
Nacimiento
South Dos
Palos Dos Palos
Tranquillity
Coalinga
Huron
Avenal
San Miguel
Madera
Firebaugh
Mendota
Kerman
San Joaquin
Three Rocks
Oak Shores
La Vina
Helm
Cholame
Burrel
San Benito
Idria
Chualar
Aromas
Castroville
Elkhorn
Del Monte
Forest
Spreckels
Moss Landing
Pajaro
Prunedale
Carmel-by-the-Sea
Del Rey Oaks
Gonzales
Greenfield
Marina
Monterey
Pacific Grove
King City
Salinas
Sand City
Seaside
Soledad
Big Sur
Carmel Valley
Bradley
San Ardo
San Lucas
Lockwood
Parkfield
D-11: Low- to Moderate-Income Population, Block Group, County 0 5 10 20
Miles
Data Source: Affirmatively Furthering Fair Housing Data and Mapping Resources, Housing and Community Development, California, 2021; American Community Survey (ACS) (2011-2015); HUD, 2020; City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022.

J:\GISData\584 Monterey GP\GIS\Projects\AFFH\Low- to Moderate-Income Population Block Group County.mxd Low to Moderate Income Population (HUD)
Block Groups with 51% or greater
Low to Moderate Income Population
! Cities in Monterey County
Monterey County
Counties
Interstate
Highways
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 239, Packet Page 362 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing Table D-6: Poverty Rates in City of Monterey, 2020
Race/Ethnicity Total Population Population Below Poverty Level Number Percent Number Percent
White (NH) 20,064 65.6% 1,441 33.3%
Hispanic/Latino 4,452 14.6% 1,323 30.6%
Black or African American (NH) 918 3.0% 127 2.9%
Native American (NH) 243 0.8% 169 3.9%
Asian (NH) 1,529 5.0% 259 6.0%
Native Hawaiian and Other Pacific
Islander (NH)
102 0.3% 0 0.0%
Other (NH) 1,576 5.2% 790 18.3%
Two or More Races (NH) 1,697 5.5% 216 5.0%
Total 30,581 100.00% 4,325 100.00%
Source: U.S. Census Bureau, 2020 ACS 5-year estimates subject table (S1701) Between 2014 and 2019, patterns of poverty in the City shifted as shown on Map D-12 and Map D-13.

In 2014, the neighborhoods of Downtown, Old Town, Oak Grove, NPS, Alta Mesa had between 10 and 20 percent of their population living below the poverty line. In 2019, the areas with between 20 and 30 percent of the population below poverty levels were found on the eastern edge of the City.

These neighborhoods include Del Monte Beach, Villa Del Monte, Del Monte Grove/Laguna Grande, NAVY, and Casanova Oak Knoll.

HOUSING CHOICE VOUCHERS
Housing Choice Vouchers allow very low-income families to choose and lease or purchase safe, decent, and affordable privately-owned housing. The choice of housing is left up to each individual family with the objective of limiting segregation by income. An analysis of where households using Housing Choice Vouchers (HCV) are concentrated can be useful for making sense of segregation and integration trends within a community and how well the program has worked to achieve the objective of reducing segregation by income. The HCV program aims to encourage participants to avoid highpoverty neighborhoods and promote the recruitment of landlords with rental properties in low poverty neighborhoods. The ability to achieve this is, of course, limited by the willingness of property owners to participate, as well as the type of housing available.

A study by HUD’s Development Office of Policy Development and Research found a positive association between the HCV share of occupied housing and neighborhood poverty concentration and a negative association between rent and neighborhood poverty. This showed that HCV use was concentrated in areas of high poverty, where rents tend to be lower, contrary to the program’s objectives. In areas where these patterns occur, the program has not succeeded in moving holders out of areas of poverty. In the City of Monterey, neighborhoods with concentrations of low-income populations do not overlap with those that have more than 5 percent of renters using HCV (see Map D-14). Within the County, HCV users are not concentrated in the City of Monterey. Other nearby cities to the west have fewer HCV users while in areas like Salinas HCV use is more widespread across the City (see Map D-15).

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Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 240, Packet Page 363 A§
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P a c i f i c O c e a n
Monterey
Regional
Airport
Carmel
By-The-Sea
Sand
City
Seaside
Pacific Grove
Del Rey Oaks
Via Paraiso
Park
Ryan Ranch
Community Park
U.S. Navy
Beachfront
Veterans
Memorial Park
Huckleberry Hill
Nature Preserve
Del Monte
Beach
Monterey
State Beach
Lower Presidio Historic Park
Fisherman's
Flat Greenbelt
El Estero
Park
Old Capitol
Site
Monterey
City Hall
W Franklin St Tyler St
Prescott Ave
Fairground Rd
Ragsdale D r
Abrego St
Cam
Aguaj ito
Casa Verde Way
N Fremont St
Montecito Ave
Garden Rd
El Dorado St
Mark Thomas Dr
Upper Ragsdale Dr
Fremont St
Glenwood Cir
Sc enic
r D
Lighthouse Ave
Aguajito Rd
Munras Ave
Pacific St
MarVista Dr
Del Monte Ave
S Boundary Rd
SkylineDr
Naval
Postgraduate
School
Naval
Postgraduate
School
Naval
Postgraduate
School
Presidio of
Monterey
Presidio of
Monterey
D-12: Poverty Status (2014), City of Monterey
Data Source: Affirmatively Furthering Fair Housing Data and Mapping Resources, Housing and Community Development, California, 2021; American Community Survey (ACS) (2010-2014); HUD, 2020; City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022. 0 ¼ ½ 1
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Memorial Park
Huckleberry Hill
Nature Preserve
Del Monte
Beach
Monterey
State Beach
Lower Presidio Historic Park
Fisherman's
Flat Greenbelt
El Estero
Park
Old Capitol
Site
Monterey
City Hall
W Franklin St Tyler St
Prescott Ave
Fairground Rd
Ragsdale D r
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Cam
Aguaj ito
Casa Verde Way
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Montecito Ave
Garden Rd
El Dorado St
Mark Thomas Dr
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D-13: Poverty Status (2019), City of Monterey
Data Source: Affirmatively Furthering Fair Housing Data and Mapping Resources, Housing and Community Development, California, 2021; American Community Survey (ACS) (2015-2019); HUD, 2020; City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022. 0 ¼ ½ 1
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D-14: Housing Vouchers (2019), City of Monterey
Data Source: Affirmatively Furthering Fair Housing Data and Mapping Resources, Housing and Community Development, California, 2021; Placeworks, 2021; American Community Survey (ACS) (2015-2019); City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022. 0 ¼ ½ 1
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MONTEREY
FRESNO

SAN BENITO

MERCED MADERA
KINGS

SAN LUIS OBISPO KERN

SANTA CRUZ

SANTA CLARA
Aptos Corralitos
Freedom
Interlaken Soquel Rio del Mar
Capitola
Ridgemark
Hollister
Santa Cruz
Watsonville
San Juan
Bautista
La Selva
Beach
Tres Pinos
Opal Cliffs
Paicines
Biola
Cantua Creek
Lake
Nacimiento
South Dos
Palos Dos Palos
Tranquillity
Coalinga
Huron
Avenal
San Miguel
Madera
Firebaugh
Mendota
Kerman
San Joaquin
Three Rocks
Oak Shores
La Vina
Helm
Cholame
Burrel
San Benito
Idria
Chualar
Aromas
Castroville
Elkhorn
Del
Monte Forest
Spreckels
Moss Landing
Pajaro
Prunedale
Carmel-by-the-Sea
Del Rey Oaks
Gonzales
Greenfield
Marina
Monterey
King City
Salinas
Sand
City Seaside
Soledad
Big Sur
Carmel Valley
Bradley
San Ardo
San Lucas
Lockwood
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D-15: Hou sing Vou chers (2019), Cou nty
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Data Source: Affirmatively Furthering Fair Housing Data and Mapping Resources, Housing and Community Development, California, 2021; American Community Survey (ACS) (2011-2015); HUD, 2020; City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022.

J:\GISData\584 Monterey GP\GIS\Projects\AFFH\Housing Vouchers 2019 County.mxd HCV as a Percent of Renter Occupied Housing Units
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Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 244, Packet Page 367 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-37
There are no areas in the City of Monterey where there is an overconcentration of HCVs; only one census tract had more than five percent of HCV recipients. In Monterey, fewer than five percent of the households in the Del Monte Beach, Villa Del Monte, Del Monte Grove/Laguna Grande, Casanova Oak Knoll, and NAVY neighborhoods had HCVs. By way of comparison with the rest of the County, Salinas has census tracts where 15 to 30 percent of the households are HCV recipients, but there are no tracts in Salinas or anywhere else in the County where more than30 percent of the households hold vouchers.

As of 2015, 1,459 households (as reported by the County’s 2019 AI) were on the HCV waiting list and 6,521 households were on the waiting list for Public Housing, indicating a need for the expansion of affordable housing options for those in need. Reflecting the County’s demographics, 82 percent of those on the waiting list for HCVs were White and 69 percent Hispanic.

The Housing Authority County of Monterey (HACM) has a current allocation of 4,335 Housing Choice Vouchers (HCV) and 199 vouchers through the HUD Veterans Affairs Supportive Housing (VASH) for veterans. However, due to federal budget reductions, only 3,235 HCVs are available for use in the County; 184 are in use in the City alone. HACM’s public housing has been converted to Project-Based Rental Assistance where tenants utilize the HCV. The conversion of HACM properties to Project-Based Rental Assistance could offer the City an opportunity to collaborate with the Housing Authority to provide funding assistance for rehabilitation and repair of HACM units.

SUBSIDIZED HOUSING
HACM provides rental assistance, develops, and manages affordable housing throughout Monterey County. The HACM owns and manages over 1,000 units of affordable rental housing throughout the County. Most of these units were originally developed as public housing units. However, beginning in 2015, HACM initiated the process of converting the public housing developments into project-based rental assistance units. That conversion process has been completed.

In addition to using vouchers issued by the Housing Authority, individual housing projects may have a percentage of total units set aside for eligible low-income households and individuals under federal, state, and/or local programs such as state and local bond programs, Low-Income Housing Tax Credits (LIHTC), density bonus, or direct assistance programs. The location of these assisted housing units is affected by economic feasibility, which means affordable housing is more likely to be developed where the zoning allows higher density development or the cost of developable land is lower. Reducing the development costs per unit can allow for lower housing payments and lower rents.

As of 2019, there were 17 housing projects in Monterey with subsidies requiring rental to lower income households (Table D-7) including both HACM units and units funded by other programs as described above. Monterey has a smaller share of affordable housing than Salinas (Chart D-7), but a larger inventory than all other cities in the County.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 245, Packet Page 368 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-38
Table D-7: Assisted Housing Projects, City of Monterey
Name Address Affordable Units
Casanova Plaza 800 Casanova Avenue 86
Oak Grove 1100 Second Street 5
Portola Vista 20 Del Monte Avenue 64
Montecito 242 Montecito 8
Watson 531 Watson Street 5
Osio Plaza 355 Calle Principal 30
Interim Inc 604, 606, 608 Pearl Street 19
Community Human Services 544 Pearl Street 6
Casa de la Estrella 420 Estrella Avenue 8
Centennial Gardens 399 Drake Avenue 6
Dream Theatre Site 675 Lighthouse Avenue 3
Sunrise Assisted Living 1125 Cass Street 12
Skyline Townhomes 1330 Skyline Drive 8
Van Buren Senior Housing 613 Van Buren Street 19
Casa de Los Robles 504 W. Franklin Street 6
Dela Vina Apartments 34 Dela Vina Avenue 14
El Estero Senior Apartments 151 Park Avenue 26
Source: 2019 Monterey County Analysis of Impediments
Chart D-7: Share of Units Affordable to 80 Percent AMI, County of Monterey Source: 2019 Monterey County Analysis of Impediments
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 246, Packet Page 369 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-39
The number of affordable units in the City of Monterey can be attributed to its successful Inclusionary Housing Program. The County also assures consistent application of an Inclusionary Housing Ordinance (Chapter 18.40 of the Monterey County Code), which requires that 20 percent of units/lots in new residential developments be affordable to very low-, low-, and moderate-income households.

The Ordinance applies to developments of three or more units/lots and exempts farm worker housing and mobile home parks. Requirements of the Ordinance can be met through on-site provision, offsite provision, and payment of in-lieu fees. Developments of three or four units/lots are expected to meet the inclusionary obligations through payment of in-lieu fees, although the developer has the option to build an inclusionary unit instead. Developments of five or more units/lots are expected to meet the inclusionary obligation through the development of inclusionary housing units. Inclusionary units are restricted for affordability in perpetuity.

The City has made recent efforts to grow its share of affordable housing evidenced by emerging pipeline projects. Ten units have been rented on City leased property at 595 Munras Avenue, two of which are affordable. There are several other projects under development that will include affordable units through the inclusionary zoning ordinance. Projects include 2300 Garden Road that was recently issued a building permit for 64 units of which 13 are affordable. The developer for 2300 Garden Road also obtained Preliminary Architectural Review approvals for an additional 91 units at 2000 and 2600 Garden Road of which 20% would be affordable units. However, the developer is reconsidering these proposals at this time and staff anticipates entirely new concepts to be submitted in 2023. Older projects such as 2200 North Fremont that included 40 Dwelling Units with eight affordable units through a seven percent Density Bonus and Inclusionary Housing have been approved, but the developer is no longer actively pursuing building permits. The City also has entered into an Exclusive Negotiating Agreement for a 100% affordable low-income project (Van Buren Senior Housing Project; 669 Van Buren Street) on City owned land behind City Hall. The number of units is in the process of being refined although the developer would like to achieve 36 low-income units.

D.3 Racially/Ethnically Concentrated Areas of
Poverty and Affluence
To assist communities in identifying racially or ethnically concentrated areas of poverty (R/ECAPs), HUD has developed a census tract-based definition. R/ECAPs are tracts with a non-white population of 50 percent or more and a poverty rate exceeding 40 percent or have poverty rates three or more times the average tract poverty rate for the metropolitan/micropolitan area, whichever threshold is lower. According to HUD estimates provided by HCD, there were no R/ECAPs in the City of Monterey either during the 2009-2013 period or in 2020. Another indicator of the presence of R/ECAPs in a community is the co-incidence of high levels of segregation and poverty. HCD and the California Tax Credit Allocation Committee (TCAC) developed opportunity maps to inform statewide policy for siting affordable housing for families in California. Instead of a threshold for race, the TCAC/HCD approach uses a location quotient for racial segregation. The poverty threshold is 30 percent of the population living below the poverty line and the location quotient is essentially a measure of the concentration of race in a small area compared to the county level. There are no census tracts identified as High Segregation and Poverty tracts on the TCAC/HCD Composite Opportunity Map (Map D-17). As Map D-16 shows, as of 2020 there are a four R/ECAPs in the region, all located in Salinas, 20 miles to the northeast of the City of Monterey.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 247, Packet Page 370 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing Racially/Ethnically Concentrated Areas of Affluence (RCAAs) are not formally defined by HUD or the State, but are generally considered to be areas with high concentrations of wealthy, White residents.

An article by Edward G. Goetz, et al. published in HUD’s Cityscape journal defines an RCAA as a “census tract in which 80 percent or more of the population is White and has a median income of at least $125,000.”14 As described in a recent report focusing on the extent of single-family zoning in the Monterey Region for the California Zoning Atlas, these more affluent areas are characterized by a higher proportion of areas zoned single-family only, many of which perform poorly with respect to Regional Housing Needs Assessment (RHNA) targets for low and very-low income housing. 15 Map D-16 displays the locations of RCAAs under this definition. Within the City of Monterey, one RCAA is located completely within the city limits and one at the southern edge of the city extends into the unincorporated area and lies primarily outside of the City. In contrast, Carmel, Del Rey Oaks, and Pacific Grove lying to the west along the coast and southeast of the Monterey are identified as RCAAs.

The RCAA tract within the City of Monterey has a median income of $119,775 and 85.6 percent of the population identifies as non-Hispanic White. A notable difference between the RCAA and the rest of the City of Monterey is that 82.1 percent of the RCAA’s structures have one housing unit while only

50.8 percent of structures in the City have one housing unit.16 Additionally, only 34.3 percent of units are occupied by owners in the City while 78.6 percent of units in the RCAA are occupied by owners.

These conditions have stayed largely the same in the last ten years. In 2010, 36.3 percent of the City’s housing units were occupied by renters while 72.5 percent of housing units were owner occupied in the RCAA, meaning people in the RCAA became owners at a faster rate than in the City overall, but not by much. The RCAA’s non-Hispanic White population (82.0 percent) in 2010 and the share of one housing unit structures only changed by a couple percentage points in both the City (49.3 percent) and RCAA (79.7 percent).
14 Edward G. Goetz, et al. "Racially Concentrated Areas of Affluence: A Preliminary Investigation" (Cityscape, Vol. 21 No. 1, 2019), pp. 99-123.
15 Shahan Shahid Nawaz et al., "Single-Family Zoning in the Monterey Region: A California Zoning Atlas Snapshot”, Othering and Belonging Institute, University of California, Berkeley, July 10, 2023, https://belonging.berkeley.edu/single-family-zoning-monterey-region#footnote1_rj19xwi 16 US Census Bureau American Community Survey 5-Year estimates of housing by type show a decline in the percent of housing units in single-family detached structures to Monterey to 43.9 percent compared to 62.9 percent countywide.

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Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 248, Packet Page 371 D-16: R/ECAP and RCAA Locations, County
Data Source: Affirmatively Furthering Fair Housing Data and Mapping Resources, Housing and Community Development, California, 2021; Placeworks, 2021; HUD, 2020; ACS 2015 - 2019; City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022. 0 2½ 5 10
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D-17: TCAC Opportunity Areas, Composite Score, City of Monterey Data Source: Affirmatively Furthering Fair Housing Data and Mapping Resources, Housing and Community Development, California, 2021; Placeworks, 2021; TCAC, 2021; City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022. 0 ¼ ½ 1
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Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 250, Packet Page 373 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-43
D.4 Disparities in Access to Opportunity
To help quantify access to opportunity within a jurisdiction, HCD and TCAC convened in the California Fair Housing Task Force to “provide research, evidence-based policy recommendations, and other strategic recommendations to HCD and other related state agencies/departments to further the fair housing goals (as defined by HCD).” The Task Force developed a series of Opportunity Maps to determine areas with the highest and lowest resources by census tract. Highest resource tracts are the top 20 percent of census tracts with the highest index scores relative to the region, while high resource tracts are the next 20 percent. The remaining tracts are then evenly divided into the low resource and moderate resource categories. Index scores are compiled by domain, as outlined in Table D-8 below. The economic, environmental and education domains were further aggregated to create a composite index, which determines each tract’s resource level.

Table D-8: Domain and Indicators for HCD/TCAC Opportunity Maps Domain Indicator
Economic Poverty
Adult Education
Employment
Job Proximity
Median Home Value
Environmental CalEnviroScreen 3.0 indicators
Education Math Proficiency
Reading Proficiency
High School Graduation Rates
Student Poverty Rate
Filter Poverty and Racial Segregation
Source: California Fair Housing Task Force, Methodology for the 2021 TCAC/HCD Opportunity Map, December 2020 Understanding disparities in access to opportunity within a community requires an assessment of the regional as well as the local context. The following section provides a summary of regional opportunity at the County level and the greater Monterey Bay Region when applicable, in addition to opportunity in the City. Citywide opportunity is broken down into the distinct categories of educational, economic, and environmental opportunity based on metrics provided by HCD.

REGIONAL CONTEXT
The 2019 AI explores the distribution of five types of opportunity: educational, employment, transportation, access to low poverty neighborhoods, and access to environmentally healthy neighborhoods. Analysis is based on indices provided by the HUD AFFH tool. The higher the index score, the better an area’s access to opportunity. The indices are defined as follows:
• Environmental Health — Summarizes potential exposure to harmful toxins at a neighborhood level.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 251, Packet Page 374 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-44
• Jobs Proximity — Quantifies the accessibility of a given residential neighborhood as a function of its distance to all job locations within a Core Based Statistical Area (CBSA). • Labor Market — Provides a summary description of the relative intensity of labor market engagement and human capital in a neighborhood.
• Low Poverty — A measure of the degree of poverty in a neighborhood, at the Census tract level.
• Low Transportation Cost — Estimates of transportation costs for a family that meets the following description: a 3-person single-parent family with income at 50% of the median income for renters for the region.
• School Proficiency — School-level data on the performance of 4th grade students on state exams to describe which neighborhoods have high-performing elementary schools nearby and which are near lower performing schools.
• Transit — Trips taken by a family that meets the following description: a 3-person singleparent family with income at 50% of the median income for renters.

Chart D-8 and Chart D-9 below show index scores based on the July 2020 HUD data release.

CONTEXT
According to the TCAC Opportunity Areas composite score (see Map D-17), not all possible resource classifications are represented in the City of Monterey; there are no census tracts identified as Low Resource or High Segregation and Poverty. The Highest Resource, High Resource, and Moderate Resource tracts are evenly distributed, with the Moderate Resource classification covering the greatest geographical expanse. The City of Monterey is not typical of the County. Even though it does not have all classifications represented, it still has a greater representation of classifications than much of the County.

Within the County, the City of Monterey, Seaside, Marina, Castroville, and Salinas are the only areas with tracts classified as Moderate Resource and only Salinas and the City of Monterey have areas classified as High Resource. The rest of the County is either classified as Highest Resource (along the coastline except for the southernmost part of the County starting near Lucia) or Low Resource (inland and south within the County). Nearby, other Highest Resource concentrations are in urban areas of neighboring San Luis Obispo County to the south and Santa Cruz and other Bay Area cities to the north.17
17 The extent of Highest Resource tracts adjacent to Low Resource tracts is not unique to Monterey County; other areas of California such as Inyo County, Siskiyou County, and Humboldt County appear to have few tracts classified as High or Moderate Resource. All these areas are some of the least densely populated areas in California, containing large amounts of wilderness and small towns. Nationally protected areas within Monterey County include Los Padres National Forest, Pinnacles National Park, Salinas River National Wildlife Refuge, and Ventana Wilderness. Additionally, along the coast, there are many marine protected areas. These protected spaces give great access to environmental opportunity but may limit access to employment and education.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 252, Packet Page 375 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-45
Chart D-8: Opportunity Indices, Population Above Poverty Level c
Source: HUD, AFFHT0006 Table 12, July 2020
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 253, Packet Page 376 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-46
Chart D-9: Opportunity Indices, Population Below Poverty Level Source: HUD, AFFHT0006 Table 12, July 2020
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 254, Packet Page 377 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-47
Economic Opportunity
According to California Employment Development Department Local Area Unemployment Statistics (LAUS), Monterey experienced an unemployment rate of 4.5 percent in 2021. While this rate is a 51.3 percent decrease from unemployment rates in 2010, it is a 78.3 percent increase from the 2019 unemployment rate (2.5 percent). Monterey’s significant increase in unemployment in 2020 is likely due to the impacts of the COVID-19 pandemic.

According to ACS 2019 five-year estimates, there were 13,939 persons in the labor force in the City of Monterey in 2019. The largest industry sector represented among the City’s working residents is Health and Educational Services (26 percent), which is a greater share of the workforce represented in the industry compared to the County (19.9 percent). Financial and Professional Services makes up the second largest group of working Monterey residents (24.1 percent). Compared to Monterey County, the number of residents employed in the Agriculture and Natural Resources industry account for significantly less of the City’s employment distribution (2 percent) than that of the County (15.6 percent).

In the City of Monterey, the number of unemployed residents (16 years and over) across all races and ethnicities declined between 2010 and 2020 (see Table D-9) although the share of unemployment by race/ethnicity has shifted with non-Hispanic White residents making up 82.6 percent of all unemployed people. This shift occurred prior to the 2020 pandemic, with 74.2 percent of unemployed people in the City identifying as non-Hispanic White in 2019. As for Monterey County, all race/ethnicities saw decline in unemployment numbers except for the non-Hispanic Two or More Races category between 2010 and 2020.

At the County level, the non-Hispanic White group also saw an increase in its share of the unemployed population along with non-Hispanic Asian residents, Other, and Two or More Races between 2010 and 2019. But there was significant shift between 2019 and 2020; the Hispanic or Latino unemployed population changed by 18.8 percentage points to become 40.8 percent of the unemployed population while the nonHispanic White group went from being 43.6 percent of the unemployed population to only 23.4 percent of it.

Table D-9: Share of Unemployment by Race/Ethnicity, Monterey County Race/Ethnicity City of Monterey Monterey County
2010 Percent 2019 Percent 2020 Percent
White (Non-Hispanic) 533 50.2% 320 74.2% 437 82.6%
Hispanic/Latino (NH) 235 22.1% 16 3.7% 0 0.0%
Black or African American
(NH)
0 0.0% 0 0.0% 0 0.0%
Native American (NH) 13 1.2% 0 0.0% 0 0.0%
Asian (NH) 141 13.3% 46 10.7% 46 8.7%
Native Hawaiian/Other Pacific
Islander (NH)
0 0.0% 0 0.0% 0 0.0%
Other (NH) 128 12.1% 0 0.0% 0 0.0%
Two or More Races (NH) 11 1.0% 49 11.4% 46 8.7%
Total 1,061 100.0% 431 100.0% 529 100.0%
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2016-2020), Table S2301 Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 255, Packet Page 378 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-48
Another economic opportunity indicator, JPI (Job Proximity Index) was significantly higher at the City level than the County level, but there was very little variation across race/ethnicity at both levels. Every race/ethnicity scored between 80 and 90 in the City, and 45 and 60 in the County above poverty (see Chart D-9).

As discussed in the Housing Needs Assessment, the industries employing the greatest number of City residents include Health and Educational Services (26.0 percent), Financial and Professional Services (24.1 percent), and Arts, Entertainment, Accommodation, and Food Services (15.9 percent). Compared to the County, the Agricultural and Natural Resources industry is much smaller in the City (15.6 percent compared to 2.1 percent). The City of Monterey in 2017 had the greatest number of jobs in the County followed by Salinas, Seaside, and Carmel-by-the Sea.18 Examples of its largest employers include the Monterey Bay Aquarium, Community Hospital/Montage, Defense Language Institute, and Naval Postgraduate School, Monterey Peninsula College and the City of Monterey. . Nearby, Pebble Beach Resorts in Pebble Beach, Natividad Medical Center, Premium Packing Inc., and Growers Co. in Salinas, and the US Department of Defense in Seaside are noted as top employers in the County by the State of California Employment Development Department.

The City of Monterey is located about two hours by car from San Francisco and closer to an hour from San Jose, without traffic. Within the City, there is a free trolly with stops in the downtown area and a regional transit system Monterey-Salinas Transit. It is possible to go as far as Watsonville to the north and Paso Robles to the south. The route follows Highway 101 with stops in Chualar, Gonzales, Soledad, Greenfield, King City, San Lucas, San Ardo, and Bradley. Additionally, there is a route through Carmel and to Salinas with stops in other nearby cities such as Sand City, Marina, Castroville, Moss Landing, Las Lomas, and Pajaro. In total there are seven bus lines.

Map D-18 shows economic opportunity scores in the City of Monterey are mostly high in all census tracts except for one identified as having a less positive economic outcome. The Monterey Presidio (an active military base) is located within this tract and is its primary use. Access to this area and most of the tract is restricted to those with proper Department of Defense credentials. Stationed units live on the base.

Although the State flags this as a tract with a less positive economic outcome, military bases typically have strong economic outcomes because of military activities that attract people from outside of the region and even State for its opportunities. The city partners with the DOD with an Intergovernmental Support Agreement which provides an economic boost for the local economy.

There are existing groups working to improve access to economic opportunity in the City of Monterey and the greater Monterey Bay region. The Monterey Bay Economic Partnership is a nonprofit membership organization consisting of public, private, and civic entities located throughout the Counties of Monterey, San Benito, and Santa Cruz. Their Workforce Development Initiative partners with the region’s major educational institutions to provide people looking for work with resources. For example, they provide a program called Hospitality 2 Health, a web-based resource to assist hospitality workers transition into careers at senior living communities and skilled nursing facilities in the region. The Cal Coastal Small Business Development (CCSBD) Center promotes the development, growth, and success of small businesses and aspiring entrepreneurs in Monterey and San Benito Counties. As a branch of the Central California Small Business Development Center, it helps businesses start, grow, and succeed in the region.

CCSBD offers workshops, trainings, and classes for businesses, entrepreneurs, and individuals. Although they do not offer grants or loans, they do work closely with financial partners who offer a variety of loan programs, as well as other regional and community funding sources. In addition to support for small businesses, they also provide workforce development services. 18 Monterey Scorecard, September 2017. Availabe:
https://www.co.monterey.ca.us/home/showpublisheddocument/58216/636457222327600000 Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 256, Packet Page 379 A§
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Community Park
U.S. Navy
Beachfront
Veterans
Memorial Park
Huckleberry Hill
Nature Preserve
Del Monte
Beach
Monterey
State Beach
Lower Presidio Historic Park
Fisherman's
Flat Greenbelt
El Estero
Park
Old Capitol
Site
Monterey
City Hall
W Franklin St Tyler St
Prescott Ave
Fairground Rd
Ragsdale D r
Abrego St
Cam
Aguaj ito
Casa Verde Way
N Fremont St
Montecito Ave
Garden Rd
El Dorado St
Mark Thomas Dr
Upper Ragsdale Dr
Fremont St
Glenwood Cir
Sc enic
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Aguajito Rd
Munras Ave
Pacific St
MarVista Dr
Del Monte Ave
S Boundary Rd
SkylineDr
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Naval
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D-18: TCAC Opportunity Areas, Economic Score, City of Monterey Data Source: Affirmatively Furthering Fair Housing Data and Mapping Resources, Housing and Community Development, California, 2021; Placeworks, 2021; TCAC, 2021; City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022. 0 ¼ ½ 1
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< .25 (Less Positive Economic Outcome)

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> .75 (More Positive Economic Outcome)
City of Monterey
Sphere of Influence
Neighboring City
Park
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Fairgrounds
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 257, Packet Page 380 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-50
No group scored a sizably smaller or greater amount than another in Labor Market Index (LMI) scores.

Within the City of Monterey, non-Hispanic Asian or Pacific Islander residents above poverty have the highest Labor Market Index (LMI) score (71.7) by a small margin over all other groups. Black residents have the lowest score (60.86). Comparatively, Monterey County has a greater range of scores with Hispanic or Latino residents having the lowest (29.63) and non-Hispanic White residents having the highest (60.65).

Overall, the scores in the City are higher than in the County (see Charts D-8 and D-9).

No group scored a sizably smaller or greater amount than another in Job Proximity Index (JPI) scores. For those above the poverty level, job proximity is very similar among all races/ethnicities in the City. For those below poverty level, there is more variation between groups with Native American residents experiencing the lowest JPI score (75.6) and Black or African American residents experiencing the highest (89.6).

All groups in the County had lower JPI than those in the City and non-Hispanic White and Asian residents in the County had higher JPI scores than other groups (for those both above and below poverty). This reflects the concentration of these groups in the northern part of the County where many of the employment centers are also located. Since Monterey is in the north, the groups concentrated there relative to the rest of the County are going to be in closer proximity to jobs.

Because there is no overconcentration of a disabled population in the City, their ability to obtain a job should not be impacted by where they live as a group (see Map D-5).

The tracts with an overconcentration of female-headed households were classified as having a More Positive Economic Outcome for its Opportunity Area Economic Score (see Map D-7), indicating this protected group is not affected economically by its concentration.

As shown in Table D-9 above, unemployment among non-White groups in the City is lower than unemployment among non-Hispanic White residents. The County has lower unemployment among nonWhite groups than the City. The only group in the City with an increase in its share of the unemployed population between 2010 and 2019 was those who identified as two or more races, such as mixed-race Americans (1.0 percent to 11.4 percent), otherwise the share of non-White unemployment has lessened over time. Living in the City of Monterey as a non-White worker does not indicate you will have less of an ability to get a job than a non-Hispanic White worker.

Educational Opportunity
The County’s 24 school districts serve approximately 78,000 students. Monterey Peninsula Unified School District (MPUSD) serves around 9,800 students. There are ten elementary schools, two middle schools, and four high schools. Additionally, there are two charter schools (International School of Monterey, Seaside and Learning for Life, Marina). Within the City of Monterey there is one public high school and two public elementary schools. Table D-10 summarizes test score results from the 2021-2022 Smarter Balanced assessments of math and English Language Arts (ELA), which forms part of the State’s California Assessment of Student Performance and Progress (CAASPP). The proportion of students who meet or exceed standards in ELA or math in City of Monterey is higher than in Monterey County, but lower than in the State. Student success by race and ethnicity is unevenly distributed in Monterey Peninsula Unified (Table D-11). As shown in Table D-11 and D-12. Monterey High School has higher test scores compared to the rest of MPUSD. However, at both MPSUD and Monterey High School, non-Hispanic White, Filipino, and Asian students have higher scores than Hispanic or Latino and Black students. As shown in Table D13, between the two elementary schools, Monte Vista scores marginally higher in both math and reading.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 258, Packet Page 381 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-51
Table D-10: CAASP Scores
District/Region
Percent Met or Exceeded Standard
English Language Arts Mathematics
State of California 47.1% 33.4%
Monterey County 31.1% 9.0%
Monterey Peninsula Unified
Monterey High School

37.9%

72.6%

21.4%

32.3%
Source: California Department of Education, CAASPP, Smarter Balanced Summative Assessments, 2021-2022 Table D-11: CAASP Scores by Race in Ethnicity, Monterey Peninsula Unified Race/Ethnicity
Percent Met or Exceeded Standard
English Language Arts Mathematics
White (Non-Hispanic) 58.10% 43.20%
Hispanic/Latino 31.40% 14.80%
Black or African American 32.90% 17.00%
Native American 31.60% 26.30%
Asian 54.60% 41.60%
Native Hawaiian and Other Pacific
Islander

32.40% 11.80%
Filipino 57.50% 31.30%
Two or More Races 41.90% 28.00%
Source: California Department of Education, CAASPP, Smarter Balanced Summative Assessments, 2021-2022 Table D-12: Monterey High School
Race/Ethnicity
Percent Met or Exceeded Standard
English Language Arts Mathematics
White (Non-Hispanic) 79.6% 44.2%
Hispanic/Latino 63.8% 18.4%
Black or African American 75.0% 18.8%
Native American n/a n/a
Asian 80.0% 64.0%
Native Hawaiian and Other Pacific Islander n/a n/a
Filipino 94.5% 66.7%
Two or More Races n/a n/a

1. n/a when there are fewer than ten students for privacy concerns.

Source: California Department of Education, CAASPP, Smarter Balanced Summative Assessments, 2021-2022 Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 259, Packet Page 382 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-52
Table D-13: CAASP Scores, 2022
Elementary Schools
Percent Met or Exceeded Standard
English Language Arts Mathematics
La Mesa Elementary 64.9% 57.9%
Monte Vista Elementary 49.8% 48.0%
Source: California Department of Education, CAASPP, Smarter Balanced Summative Assessments, 2021-2022 In 2022, MPUSD adjusted its enrollment boundaries due to declining enrollment and school closures.

Certain schools were chosen for adjustment in an effort to get them closer to district averages in racial and ethnic balance, as well as those eligible for free and reduced lunch.19 Monterey Peninsula College (MPC), a public community college of the California Community College system, is located in the City of Monterey. Other MPC campuses are located in Marina and Seaside. MPC enrolled 6,106 undergraduate students in the 2020-2021 school year. It offers over 100 degree and certificate programs, many of which transfer to four-year colleges and universities. MPC is a Hispanic Serving Institution (I) receiving grants to expand educational opportunities for and improve attainment of Hispanic students. Like most community colleges, MPC does not have on-campus housing.

In the City, 55.7 percent of those 25 or older have a bachelor’s degree or higher while in the County 26.7 percent do. In California, 34.7 percent of those 25 or older have at least a bachelor’s degree. Relative to the State, the City has higher educational attainment while the County has lower than both.

The 2021 TCAC Opportunity Areas education score, which quantifies access to educational opportunity, is provided in Map D-19. The education score is based on a variety of indicators including math proficiency, reading proficiency, high school graduation rates, and student poverty rates. The education scores range from 0 to 1, with higher scores indicating more positive education outcomes. The map depicts the area southeast of California State Route 1 (SR1) (except for the tract surrounding the Naval Postgraduate School), northeast of SR1 and just northwest of SR1 (i.e., Monterey State Beach area) as having lower educational opportunity scores than the rest of the City. The tract containing the Presidio of Monterey is classified as a less positive education outcome tract.

Transportation Opportunity
In review of opportunity index scores, low transportation cost and transit trips between all races/ethnicities above poverty in the City do not vary greatly. Hispanic or Latino residents had the highest score (68.1) and non-Hispanic White residents had the lowest (63.9). For Transit Trips, Black or African American residents had the highest score (72.7) while Hispanic or Latino residents had the lowest (70.2). For those below poverty, Native American residents had the highest score (72.0) and Asian residents had the lowest (68.6) for Low Transportation Cost. For Transit Trips, Asian residents had the highest score (73.9) and Black residents had the lowest (66.1). Amongst all opportunity index topics, Transit Trips had the greatest similarity between the County and the City.
19 https://www.montereyherald.com/2021/12/08/monterey-peninsula-unified-school-district-to-reimagine-attendance-zonesschool-sites/ Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 260, Packet Page 383 A§
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Community Park
U.S. Navy
Beachfront
Veterans
Memorial Park
Huckleberry Hill
Nature Preserve
Del Monte
Beach
Monterey
State Beach
Lower Presidio Historic Park
Fisherman's
Flat Greenbelt
El Estero
Park
Old Capitol
Site
Monterey
City Hall
W Franklin St Tyler St
Prescott Ave
Fairground Rd
Ragsdale D r
Abrego St
Cam
Aguaj ito
Casa Verde Way
N Fremont St
Montecito Ave
Garden Rd
El Dorado St
Mark Thomas Dr
Upper Ragsdale Dr
Fremont St
Glenwood Cir
Sc enic
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Lighthouse Ave
Aguajito Rd
Munras Ave
Pacific St
MarVista Dr
Del Monte Ave
S Boundary Rd
SkylineDr
Naval
Postgraduate
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Naval
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School
Naval
Postgraduate
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Presidio of
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Presidio of
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D-19: TCAC Opportunity Areas, Education Score, City of Monterey Data Source: Affirmatively Furthering Fair Housing Data and Mapping Resources, Housing and Community Development, California, 2021; Placeworks, 2021; TCAC, 2021; City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022. 0 ¼ ½ 1
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< .25 (Less Positive Education Outcomes)

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0.50 - 0.75
> .75 (More Positive Education Outcomes)
City of Monterey
Sphere of Influence
Neighboring City
Park
Water
Fairgrounds
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 261, Packet Page 384 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-54
According to 2019 ACS 5-Year estimates (Table S0802), 9.7 percent of workers below 100 percent of the poverty level, 23.5 percent of workers between 100 to 149 percent of the poverty level, and 66.8 percent of workers at or above 150 percent of the poverty level took public transportation to work. Ninety-one percent of people living in renter-occupied housing units take public transportation to work while nine percent of people in owner-occupied housing units take public transportation to work. Across race and ethnicities,

53.5 percent of non-Hispanic White workers 16 years and over, 7.2 percent of Black or African American workers, 0.0 percent of American Indian and Alaska Native, 13.7 percent of Asian, 0.0 percent of Native Hawaiian and Other Pacific Islander, 1.9 percent of Some Other Race, 12.5 percent of Two or More Race, and 16.7 percent of Hispanic or Latino workers take public transportation.

No racial and ethnic groups in the City of Monterey rely on transit to get to work at a greater rate than others. And as indicated by the Low Transportation Cost and Transit Trip opportunity index scores, there is no pattern or exceptionally low score for a specific group. It seems transit is accessible and not costly for all groups.

Environmental Opportunity
The environmental opportunity score in the TCAC Opportunity Map is based on CalEnviroScreen 3.0 pollution indicators and values (see Map D-20). The CalEnviroScreen is a mapping tool that helps identify areas in the state that are most impacted by various sources of pollution. The score considers four major indicators: exposure (e.g., air quality, lead risk, etc.), environmental effects (e.g., cardiovascular disease, asthmas, etc.), and socioeconomic factors (e.g., poverty, unemployment, etc.). Disadvantaged communities as defined by CalEnviroScreen 3.0 data are only located in the northern part of Monterey County in Salinas and Marina. This correlates with the areas of lowest resources and highest segregation and poverty in the Monterey Bay region. Because the City of Monterey does not have any disadvantaged communities, it is not required to adopt an environmental justice element.

For the population above poverty level in the City, all races and ethnicities scored between 70 and 80 for the Environmental Health index (see Chart D-8) with Hispanic or Latino residents scoring the lowest (73.2) and non-Hispanic White residents the highest (77.0). Among those under the poverty level, Black or African American residents scored the highest (82.8) and Native American residents scored the lowest (65.0) (see Chart D-9). For both those above and under poverty, the County scored lower.

Because there is no overconcentration of a disabled population in the City, their environmental health should not be impacted by where they live as a group (see Map D-5). The tracts with an overconcentration of female-headed households were classified as having a lower environmental health score, but not the lowest (Less Positive Environmental Outcome). Although relative to the rest of the City, this area had a lower environmental health score; it is still an environmentally healthy area relative to the State, scoring in the 34th pollution burden percentile as determined by CalEnviroScreen 3.0. Relative to the County, the City has better access to environmental health opportunity than neighboring cities to the northeast such as Seaside, Marina, Castroville, and Salinas, but the area to the south in the Carmel Valley and Big Sur census tracts rank in the best possible environmental health scores (1-5 percentiles for the State). Further south and inland in the County, the census tracts rank between the 35th and 55th percentiles for the State.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 262, Packet Page 385 A§
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Community Park
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Beachfront
Veterans
Memorial Park
Huckleberry Hill
Nature Preserve
Del Monte
Beach
Monterey
State Beach
Lower Presidio Historic Park
Fisherman's
Flat Greenbelt
El Estero
Park
Old Capitol
Site
Monterey
City Hall
W Franklin St Tyler St
Prescott Ave
Fairground Rd
Ragsdale D r
Abrego St
Cam
Aguaj ito
Casa Verde Way
N Fremont St
Montecito Ave
Garden Rd
El Dorado St
Mark Thomas Dr
Upper Ragsdale Dr
Fremont St
Glenwood Cir
Sc enic
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Aguajito Rd
Munras Ave
Pacific St
MarVista Dr
Del Monte Ave
S Boundary Rd
SkylineDr
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D-20: TCAC Opportunity Areas, Environmental Score, City of Monterey Data Source: Affirmatively Furthering Fair Housing Data and Mapping Resources, Housing and Community Development, California, 2021; Placeworks, 2021; TCAC, 2021; City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022. 0 ¼ ½ 1
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< .25 (Less Positive Environmental Outcomes)
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.75 - 1 (More Positive Environmental Outcomes)
City of Monterey
Sphere of Influence
Neighboring City
Park
Water
Fairgrounds
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 263, Packet Page 386 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-56
D.5 Disproportionate Housing Needs & Displacement
Risk
According to HCD’s AFFH Guidance Memo, disproportionate housing need “generally refers to a condition in which there are significant disparities in the proportion of members of a protected class experiencing a category of housing need when compared to the proportion of members of any other relevant groups, or the total population experiencing that category of housing need in the applicable geographic area.” Consistent with HCD guidance, this analysis evaluates disproportionate housing need in Monterey through the assessment of cost burden, overcrowding, and displacement risk. These needs are analyzed within Monterey and compared to Monterey County and the Monterey Bay region when applicable.

COST BURDEN AND SEVERE COST BURDEN
According the HCD, cost burden is the fraction of a household’s total gross income spent on housing costs.

There are two levels of cost burden: (1) “Cost Burden” refers to the number of households for which housing cost burden is greater than 30 percent of their income; and (2) “Severe Cost Burden” refers to the number of households paying 50 percent or more their income on housing.

According to 2015-2019 Comprehensive Housing Affordability Strategy (CHAS) estimates, a total of 2,659 households experience cost burden (22.7 percent) while an additional 2,480 households experience severe cost burden (21.1 percent). This means that a little less than half of all households in the city experience some level of cost burden. Of the 5,139 households experiencing some level of cost burden, 1,764 of them are considered moderate- or above-moderate-income and 1,350 of them are considered lower-income.

Thus, cost burden is not limited to lower income households. Further, renters are particularly impacted by cost burden, as, unlike homeowners, they cannot build equity with their homes. Renters in the City of Monterey tend to have higher rates of cost burden than owners – for instance, 52.3 percent of all renters experience some level of cost burden while only 30.1 percent of owners do. Rates are further unevenly distributed between renters and race/ethnicity as shown in Chart D-10 and Chart D-11.

As indicated by Map D-21 and Map D-22, cost burden for renters and owners is not evenly distributed geographically and renters are more cost burdened than owners. For renters, areas south, west and northwest of the Monterey Regional Airport and within the US Navy La Mesa Village property south of Highway 1 are tracts with 60 to 80 percent of renters overpaying. In the rest of the City, all tracts have 40- 60 percent of renters overpaying. For owners, tracts west and northwest of Highway 1 and along Monterey Bay have 40-60 percent of owners overpaying while more inland tracts have 20-40 percent of owners overpaying.

Cost burden is not distributed evenly across race and ethnicity in the City. As seen in Chart D-10, 42.3 percent of Black or African American residents in owner occupied units are severely cost burdened and all other races and ethnicities are between 11.1 and 15.0 percent severely cost burdened (except for American Pacific Islander and American Indian or Native Alaskan which did not have data available). Notably, Asian owners experienced 25.3 cost burden and 58.2 percent no cost burden while the rest of the races and ethnicities experienced greater no cost burden and lower cost burden percentages.

For renter occupied units shown in Chart D-11, every group with data for owner occupied cost burden had lower no cost burden percentages, higher cost burden percentages, and lower severely cost burden percentages. Among renters, American Indian or Alaska Native residents experienced the most severe cost burden at 50.0 percent followed by Asian Pacific Islander residents (42.9 percent), and Hispanic or Latino residents (28.0 percent). The groups experiencing the highest percentages of cost burden were Black or Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 264, Packet Page 387 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-57
African American (60.4 percent), Hispanic or Latino (32.0 percent), and White (27.9 percent). Interestingly, Hispanic or Latino owners had the highest no cost burden percentage, but Hispanic or Latino renters had the second lowest no cost burden percentage.

Large families are 2.1 percent more severely cost burdened than all other household types, while 4.5 percent of large families are cost burden, and 10.8 percent of all other household types are cost burden. Tables and charts with a further breakdown of Income by Family Size, Income, and Cost Burden are accessible and discussed in the HSA.

Chart D-10: Cost Burden for Owner Occupied Housing by Race/Ethnicity, City of Monterey Source: Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2015-2019) Chart D-11: Cost Burden for Renter Occupied Housing by Race/Ethnicity, City of Monterey Source: Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2015-2019)

72.2%

57.7%

58.2%

73.2%

71.4%

2.2%

25.3%

15.5%

13.4%

11.1%

42.3%

15.4%

12.7%

15.0%

14.4%
100.0%
100.0%

0.4%
0% 25% 50% 75% 100%
Other Race (NH)
Black or African American (NH)
Asian(NH)
American Indian or Alaska Native (NH)

API (NH)
Hispanic or Latino
White (NH)
Owner Occupied Cost Burden
No Cost Burden Cost Burden Severe Cost Burden Cost Burden Not Computed

50.7%

28.3%

53.9%

50.0%

71.4%

37.0%

48.5%

9.3%

60.4%

13.0%

32.0%

27.9%

41.3%

9.4%

18.3%

50.0%

42.9%

28.0%

23.4%

1.9%

14.8%

3.5%

0.2%
0% 25% 50% 75% 100%
Other Race (NH)
Black or African American (NH)
Asian(NH)
American Indian or Alaska Native (NH)

API (NH)
Hispanic or Latino
White (NH)
Renter Occupied Cost Burden
No Cost Burden Cost Burden Severe Cost Burden Cost Burden Not Computed Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 265, Packet Page 388 A§
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Via Paraiso
Park
Ryan Ranch
Community Park
U.S. Navy
Beachfront
Veterans
Memorial Park
Huckleberry Hill
Nature Preserve
Del Monte
Beach
Monterey
State Beach
Lower Presidio Historic Park
Fisherman's
Flat Greenbelt
El Estero
Park
Old Capitol
Site
Monterey
City Hall
W Franklin St Tyler St
Prescott Ave
Fairground Rd
Ragsdale D r
Abrego St
Cam
Aguaj ito
Casa Verde Way
N Fremont St
Montecito Ave
Garden Rd
El Dorado St
Mark Thomas Dr
Upper Ragsdale Dr
Fremont St
Glenwood Cir
Sc enic
r D
Lighthouse Ave
Aguajito Rd
Munras Ave
Pacific St
MarVista Dr
Del Monte Ave
S Boundary Rd
SkylineDr
Naval
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D-21: Homeowner Cost Burden, City of Monterey
Data Source: Affirmatively Furthering Fair Housing Data and Mapping Resources, Housing and Community Development, California, 2021; Placeworks, 2021; American Community Survey (ACS) (2015-2019); City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022. 0 ¼ ½ 1
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Seaside
Pacific Grove
Del Rey Oaks
Via Paraiso
Park
Ryan Ranch
Community Park
U.S. Navy
Beachfront
Veterans
Memorial Park
Huckleberry Hill
Nature Preserve
Del Monte
Beach
Monterey
State Beach
Lower Presidio Historic Park
Fisherman's
Flat Greenbelt
El Estero
Park
Old Capitol
Site
Monterey
City Hall
W Franklin St Tyler St
Prescott Ave
Fairground Rd
Ragsdale D r
Abrego St
Cam
Aguaj ito
Casa Verde Way
N Fremont St
Montecito Ave
Garden Rd
El Dorado St
Mark Thomas Dr
Upper Ragsdale Dr
Fremont St
Glenwood Cir
Sc enic
r D
Lighthouse Ave
Aguajito Rd
Munras Ave
Pacific St
MarVista Dr
Del Monte Ave
S Boundary Rd
SkylineDr
Naval
Postgraduate
School
Naval
Postgraduate
School
Naval
Postgraduate
School
Presidio of
Monterey
Presidio of
Monterey
D-22: Renter Cost Burden, City of Monterey
Data Source: Affirmatively Furthering Fair Housing Data and Mapping Resources, Housing and Community Development, California, 2021; Placeworks, 2021; American Community Survey (ACS) (2015-2019); City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022. 0 ¼ ½ 1
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J:\GISData\584 Monterey GP\GIS\Projects\AFFH\Renter Cost Burden City of Monterey.mxd Overpayment by Renters
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40% - 60%
60% - 80%
City of Monterey
Sphere of Influence
Neighboring City
Park
Water
Fairgrounds
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 267, Packet Page 390 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-60

OVERCROWDING
According to HUD, households having more than 1.01 to 1.5 persons per room are considered overcrowded and those having more than 1.51 persons per room are considered severely overcrowded. The person per room analysis excludes bathrooms, porches, foyers, halls, or half-rooms. Map D-23 displays percentages of overcrowding, where less than 5 or 5 to 10 percent of the tract experiences overcrowding as defined by HUD. Although there is no indication by Map D-23 of tracts with over concentrations of overcrowding in the City, nearby cities in Monterey County such as Seaside, Marina, and Salinas have tracts with over concentrations (greater than 20 percent) of overcrowded households. Moving south and inland within the County there are greater concentrations of overcrowded households though. While the City of Monterey is

94.6 percent uncrowded, the County is 86.4 percent uncrowded with eight percent more overcrowded units and 0.3 percent more severely overcrowded units than the City. As indicated by the data and relative to the region, the City overall has low overcrowding but specific groups experience greater overcrowding.

Renters tend to experience overcrowding more often than owners in the City. As discussed in the HAS, about 1.3 percent of renter-occupied households experience overcrowding and 6.55 percent experience severe overcrowding. By contrast less than 1 percent of owner-occupied households experience any level of overcrowding. Typically, in California renters experience higher rates of overcrowding than homeowners because they are more likely to be lower income than are homeowners. Lower-income households in the city (those making less than 80 percent of AMI), generally tend to have higher rates of overcrowding. As discussed in the HAS, among extremely-low-income households (i.e., those making less than 30 percent of AMI) 3.7 percent are considered overcrowded while 5.0 percent are severely overcrowded. Among households making between 31 to 50 percent of AMI and 51 to 80 percent of AMI, 2.4 percent and 3.8 percent are considered overcrowded. This may reflect a lack of both affordable housing and housing to meet the needs of all income levels.

Rates of overcrowding are unevenly distributed by race/ethnicity in the City. Overcrowding is most prevalent among American Indian or Alaska Native, Other Races, and Hispanic or Latinx households as

20.8 percent, 5.3 percent, and 4.5 percent of each group experiences overcrowding, respectively.

Overcrowding rates are comparable for non-Hispanic white households (2.65 percent), Black or African American households of any ethnicity (1.26 percent), and for Asian households (0.81 percent) (see 2015- 2019 Comprehensive Housing Affordability Strategy).

Large families, defined as households of five or more related individuals, are a special need category under State law because they are at higher risk for overcrowding if the jurisdiction’s housing stock doesn’t have sufficient larger units with an adequate number of bedrooms. More large families in the City of Monterey rent than own. As shown in Table A-20 in the 2015-2019 Comprehensive Housing Affordability Strategy, the 2019 American Community Survey reported 109 owner-occupied households and 395 renter-occupied households with 5 or more persons in the City. Most of the households (77.0 percent) were occupied by one or two people and only 4.1 percent were occupied by large families. Of the population, 2.6 were owners in a large family and 4.9 were renters in a large family. The higher rate of renting than owning homes for large families could indicate the families do not have the income to own a large enough home. In comparison to surrounding jurisdictions, the City of Monterey has a much smaller proportion of large family households than Monterey County (19.7 percent).

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 268, Packet Page 391 A§
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City
Seaside
Pacific Grove
Del Rey Oaks
Via Paraiso
Park
Ryan Ranch
Community Park
U.S. Navy
Beachfront
Veterans
Memorial Park
Huckleberry Hill
Nature Preserve
Del Monte
Beach
Monterey
State Beach
Lower Presidio Historic Park
Fisherman's
Flat Greenbelt
El Estero
Park
Old Capitol
Site
Monterey
City Hall
W Franklin St Tyler St
Prescott Ave
Fairground Rd
Ragsdale D r
Abrego St
Cam
Aguaj ito
Casa Verde Way
N Fremont St
Montecito Ave
Garden Rd
El Dorado St
Mark Thomas Dr
Upper Ragsdale Dr
Fremont St
Glenwood Cir
Sc enic
r D
Lighthouse Ave
Aguajito Rd
Munras Ave
Pacific St
MarVista Dr
Del Monte Ave
S Boundary Rd
SkylineDr
Naval
Postgraduate
School
Naval
Postgraduate
School
Naval
Postgraduate
School
Presidio of
Monterey
Presidio of
Monterey
D-23: Overcrowded Households, City of Monterey
Data Source: ACS, 2017 - 2021; City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022. 0 ¼ ½ 1
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J:\GISData\584 Monterey GP\GIS\Projects\AFFH\Overcrowded Households City of Monterey.mxd Overcrowding (ACS, 2017 - 2021) - Tract
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Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 269, Packet Page 392 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-62

SUBSTANDARD HOUSING
As defined by the U.S. Census, there are two types of substandard housing problems: (1) Households without hot and cold piped water, a flush toilet and a bathtub or shower; and (2) Households with kitchen facilities that lack a sink with piped water, a range or stove, or a refrigerator. Table D-14 shows under less than 2 percent of households experienced any substandard housing problems. Estimating the number of substandard units can be difficult, but the lack of certain infrastructure and utilities can often be an indicator of substandard conditions. According to the City’s 2015-2023 Housing Element, there are approximately 880 housing units experiencing serious deterioration, 2,140 in decline, and 4,830 will require maintenance, though not immediately urgent.

Table D-14: Monterey Substandard Housing Issues, 2020
Building Amenity
Owner Renter
Number Percent Number Percent
Incomplete Kitchen Facilities 8 0.2% 83 1.0%
Incomplete Plumbing Facilities 49 1.2% 0 0.0%
No telephone service available 0 0.0% 52 0.6%
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25053, Table B25043, Table B25049
A high proportion of older buildings, especially those built more than 30 years ago, may indicate that substantial housing conditions are an issue. Housing is considered substandard when physical conditions are determined to be below the minimum standards of living, as defined by Health and Safety Code sectionsection 17920.3. A building is considered substandard if any of the following conditions exist:
• Inadequate sanitation
• Structural hazards
• Nuisances
• Faulty weather protection
• Fire, safety or health hazards
• Inadequate building materials
• Inadequate maintenance
• Inadequate exit facilities
• Hazardous wiring, plumbing or mechanical equipment
• Improper occupation for living, sleeping, cooking, or dining purposes • Inadequate structural resistance to horizontal forces • Any building not in compliance with Health and Safety Code sectionsection 13143.2 In the City of Monterey, about 72.9 percent of the housing stock was constructed prior to 1980 and is over 40 years old. About 7.3 percent of the housing stock has been constructed since 2000, with only 2.9 percent constructed since 2010 (see Chart D-12). As discussed in the 2015-2019 Comprehensive Housing Affordability Strategy in Table A-32, about 0.2 percent of owners lack complete kitchen facilities while 1.0 percent of renters do. Further, approximately 1.2 percent of owners lack complete plumbing facilities while Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 270, Packet Page 393 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-63
0 percent of renters do. In total, there are 49 occupied housing units with incomplete plumbing facilities and 91 units with incomplete kitchen facilities.

Chart D-12: Age of City of Monterey Housing Stock, 2020 Source: U.S. Census Bureau, American Community Survey 5-Year Data (2016-2020), Table B25034 Any household living in substandard conditions is considered in need of assistance, even if they are not actively seeking alternative housing arrangements. As noted in Chart D-12, the portion of older housing units in Monterey, about 72.9 percent of the housing stock was constructed prior to 1980 and is over 40 years old. Approximately 75 percent of all units built before 1979 could potentially contain lead-based paint, which may pose a human health hazard.20

HOMELESSNESS
Individuals and families who are unhoused have perhaps the most immediate housing need of any group.

They also have one of the most difficult sets of housing needs to meet, due to both the diversity and complexity of the factors that lead to homelessness, and to community opposition to the siting of housing that serves homeless clients. Homelessness is a countywide issue that demands a strategic, regional approach that pools resources and services. A common method to assess the number of homeless persons in a jurisdiction is through a Point-in-Time (PIT) Count. The PIT Count is a biennial census of sheltered and unsheltered persons in a Continuum of Care (CoC) completed over a 24-hour period in the last ten days of January. The unsheltered PIT Count is conducted annually in Monterey County and is a requirement to receive homeless assistance funding from HUD. The PIT Count does not function as a 20 Community Development Block Grant 2020-2024 Consolidated Plan & 2020-2021 Annual Action Plan, City of Monterey, 2020.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 271, Packet Page 394 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-64
comprehensive analysis and should be considered in the context of other key data sources when assessing the state of homelessness in a community.

According to HUD, a CoC is a “a community plan to organize and deliver housing and services to meet the specific needs of people who are homeless as they move to stable housing and maximize self-sufficiency. It includes action steps to end homelessness and prevent a return to homelessness.” In Monterey County, Coalition of Homeless Service Providers oversees the CoC Program. According to the 2022 PIT Count, there were 74 sheltered homeless persons and 27 unsheltered persons in the City of Monterey. In addition, the racial/ethnic breakdown of Salinas/Monterey and San Benito County’s homeless population is shown in Table D-15. Those who identify as White (Hispanic and non-Hispanic) represent the largest share of the unhoused population (59 percent) of the county, while Hispanic/Latinx comprise the second largest group (56 percent). Additionally, those identify as Black or African American (Hispanic or Non-Hispanic) are represented disproportionately among the unhoused population as they make up 13 percent of the homeless Monterey County residents, but only 2.6 percent of its overall population.

The racial/ethnic breakdown of Salinas/Monterey and San Benito County’s homeless population is shown in Table A-23 in the 2015-2019 Comprehensive Housing Affordability Strategy. Notably, those who identify as White (Hispanic and non-Hispanic) represent the largest share of the unhoused population (82.6 percent) of the county, while Hispanic/Latinx comprise the second largest group (36.9 percent).

Additionally, those who identify as Black or African American (Hispanic or Non-Hispanic) represented disproportionately among the unhoused population as they make up 8.3 percent of the homeless Monterey County residents, but only 2.6 percent of its overall population.

Per HCD's requirements, jurisdictions also need to supplement county-level data with local estimates of people experiencing homelessness. According to the California Department of Education, in Monterey County there were 6,764 reported K-12 students experiencing homeless in the 2017-2018 school year.21 By comparison, Monterey County has seen a 7.3 percent increase in the population of K-12 students experiencing homelessness since the 2016-17 school year (6,271 students in the 2016-17 school year). 21 California Department of Education, California Longitudinal Pupil Achievement Data System (CALPADS), Cumulative Enrollment Data (Academic Years 2016-2017, 2017-2018, 2018-2019, 2019-2020) Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 272, Packet Page 395 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-65
Table D-15: Racial/Ethnic Group Share of General and Homeless Population in Salinas/Monterey and San Benito Counties
Racial/Ethnic Group
Number of Homeless
Population
Percent of Homeless
Population
American Indian or Alaska Native (Hispanic and
Non-Hispanic)
308 12.81%
Native Hawaiian or Other Pacific Islander
(Hispanic and Non-Hispanic)
65 2.70%
Asian (Hispanic and Non-Hispanic) 111 4.61%
Black or African American (Hispanic and NonHispanic)310 12.90% White (Hispanic and Non-Hispanic) 1,417 58.94%
Other Race or Multiple Races (Hispanic and NonHispanic)193 8.03% Hispanic/Latinx 1,348 56.07%
Source: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations Reports, 2022

DISPLACEMENT RISK
Like many places in California, housing costs in the City of Monterey and Monterey County have continued to rise over the last two decades as discussed in the HSA. It is harder to afford to live in the City of Monterey than in Monterey County. In the City, home values are 30 percent more on average than in the County.

Between 2010 and 2022, City of Monterey home values increased by 97.1 percent (Zillow Home Value Index). Three-bedroom units have seen the highest increase in value, increasing by 100.2 percent in a tenyear period. The highest value housing type in Monterey is a five-bedroom or greater housing unit at $2,271,239. The typical home in the City of Monterey is a $1,130,600 four-person, three-bedroom unit. A serious affordability gap exists, with housing only affordable to households earning 100 percent of AMI.

UC Berkley’s Urban Displacement Project (UDP) defines residential displacement as “the process by which a household is forced to move from its residence or is prevented from moving into a neighborhood that was previously accessible to them because of conditions beyond their control.” As part of this project, the research has identified populations vulnerable to displacement (named “sensitive communities”) in the event of increased redevelopment and drastic shifts in housing cost. They defined vulnerability based on the share of low-income residents per census tract and other criteria share of renters above 40 percent; share of people of color more than 50 percent; share of low-income households severely rent burdened; and proximity to displacement pressures. Displacement pressures were defined based on median rent increases and rent gaps.

As housing costs increase, this gap may expand and subject lower-income households to displacement pressures that have otherwise been absent or relatively low in the city. Communities of color may be particularly impacted by this dynamic. The University of California Urban Displacement Project (UDP) has provided “sensitive communities” typologies to quantify the risk of displacement within a community.

Sensitive communities are those with populations vulnerable to displacement in the event of increased redevelopment and drastic shifts in housing cost. As shown in Map D-24, two tracts in the city are considered vulnerable, adjacent to each other in the middle of the Monterey along the bay. These tracts are in “hot markets” and their rents are on average lower than rents in nearby tracts.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 273, Packet Page 396 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-66
In addition to the sensitive communities typology, UDP has also produced displacement typologies that more precisely describe the risk of displacement based on 2019 ACS data. The California Estimated Displacement Model (EDR) identifies varying levels of displacement risk for low-income renter households in all census tracts in California. Displacement risk means that in 2019 a census tract had characteristics which, according to the model, are strongly correlated with more low-income renter population loss than gain. In other words, the model estimates that more low-income households left these neighborhoods than moved in. As presented in Map D-25, the City has one tract identified as Probable Displacement.

Meanwhile, parts of some nearby cities such as Del Monte and Sand City are classified as at risk of Probable Displacement and Seaside is classified as High Displacement. Because the model uses 2015-2019 data, the correlations between tract characteristics and low-income renter population loss are only based on this period. Tracts are assigned to one of the following categories:
• Low Data Quality: the tract has less than 500 total households or the census margins of error were greater than 15% of the estimate (shaded gray).
• Probable Displacement: the model estimates there is potential displacement of the given population in these tracts.
• Elevated Displacement: the model estimates there is a moderate amount of displacement (e.g., 10%) of the given population.
• High Displacement: the model estimates there is a relatively high amount of displacement (e.g., 20%) of the given population.
• Extreme Displacement: the model estimates there is an extreme level of displacement (e.g., greater than 20%) of the given population.

As shown in Map D-24 and Map D-25, one of the two tracts identified by UDP as a “sensitive community” is also identified as a tract at “at risk of displacement”. Therefore, there is an existing concentration of displacement risk in the City of Monterey and it is located along the bay in two tracts.

According to HCD, the conversion of federally- and -state-subsidized affordable rental developments to market-rate units can constitute a substantial loss of housing opportunity for low-income residents. There are approximately 149,000 units of privately owned, federally assisted, multifamily rental housing, as well as tax-credit and mortgage revenue bond properties, often with project-based rental assistance. As the subsidy contracts or regulatory agreements expire, a large percentage of these units may convert to marketrate. These at-risk units are home to seniors and families with low incomes who are at risk of displacement if the developments convert.

Most affordable units in the County are at low risk of conversion, there are 64 units (0.09 percent) at moderate risk, 345 units (5.34 percent) at high risk, and 0 units (0 percent) at very high risk. There are no assisted units with covenants expiring within the planning period; however, there are 117 subsidized rental housing units in the City at risk of conversion to market rate within ten years of the planning period.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 274, Packet Page 397 A§
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Pacific Grove
Del Rey Oaks
Via Paraiso
Park
Ryan Ranch
Community Park
U.S. Navy
Beachfront
Veterans
Memorial Park
Huckleberry Hill
Nature Preserve
Del Monte
Beach
Monterey
State Beach
Lower Presidio Historic Park
Fisherman's
Flat Greenbelt
El Estero
Park
Old Capitol
Site
Monterey
City Hall
W Franklin St Tyler St
Prescott Ave
Fairground Rd
Ragsdale D r
Abrego St
Cam
Aguaj ito
Casa Verde Way
N Fremont St
Montecito Ave
Garden Rd
El Dorado St
Mark Thomas Dr
Upper Ragsdale Dr
Fremont St
Glenwood Cir
Sc enic
r D
Lighthouse Ave
Aguajito Rd
Munras Ave
Pacific St
MarVista Dr
Del Monte Ave
S Boundary Rd
SkylineDr
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Postgraduate
School
Naval
Postgraduate
School
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Monterey
Presidio of
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D-24: Sensitive Communities, City of Monterey
Data Source: Affirmatively Furthering Fair Housing Data and Mapping Resources, Housing and Community Development, California, 2021; Placeworks, 2021; UC Berkley Urban Displacement Project; City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022. 0 ¼ ½ 1
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Pacific Grove
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Monterey
City Hall
W Franklin St Tyler St
Prescott Ave
Fairground Rd
Ragsdale D r
Abrego St
Cam
Aguaj ito
Casa Verde Way
N Fremont St
Montecito Ave
Garden Rd
El Dorado St
Mark Thomas Dr
Upper Ragsdale Dr
Fremont St
Glenwood Cir
Sce ni cDr
Lighthouse Ave
Aguajito Rd
Munras Ave
Pacific St
MarVista Dr
Del Monte Ave
S Boundary Rd
SkylineDr
Naval
Postgraduate
School
Naval
Postgraduate
School
Naval
Postgraduate
School
Presidio of
Monterey
Presidio of
Monterey
D-25: Overall Displacement Risk, City of Monterey
Data Source: California Urban Displacement Project, 2022; Affirmatively Furthering Fair Housing Data and Mapping Resources, Housing and Community Development, California, 2021; Placeworks, 2021; American Community Survey (ACS) (2015-2019); City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022. 0 ¼ ½ 1
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Sphere of Influence
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Park
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Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 276, Packet Page 399 City of Monterey | Housing Element Update 2023-2031 Appendix D: Assessment of Fair Housing D-69
Much of the protection for displacement in the City of Monterey comes from State law. All multifamily units in the City are protected by the State’s Tenant Protections Act of 2019 (AB 1482), which includes an annual rent cap and just-cause protections. The City does not have any additional local rent stabilization or just-cause eviction policies in place.

Natural hazards in California can also cause significant displacement, and some communities are at greater risk than others. As described below, Monterey is at relatively high risk to several natural hazards due to its proximity to forested areas, multiple fault lines, and bodies of water.

Earthquake
The central California coast has a history of damaging earthquake, primarily associated with the San Andreas fault, which runs through the southeastern portion of the County for about 30 miles. The County has had 429 earthquakes since 1900 and 67 earthquakes since 2000 of 4.0 magnitude or higher. According to the 2022 Monterey County Local Hazard Mitigation Plan in the event of a major earthquake, all single and multifamily structures in the City of Monterey are susceptible to earthquake impacts to varying degrees.

There are 435 residential properties at risk for high liquefaction and 288 properties at risk for moderate liquefaction.

Flood
Coastal flooding in Monterey County is generally associated with Pacific Ocean storms in the months of November through February. In conjunction with high tides and strong winds, coastal flooding can be a significant hazard. In the City of Monterey, seven properties are in a 100-year flood zone and 64 properties are located in a 500-year flood zone.

Wildfire
The State classifies Fire Hazard Severity Zones (FHSZ) into three classifications: moderate, high, and very high. As shown on Map 2-2, areas in the south and southwest of Monterey are classified as Very High Fire Hazard Severity Zones. Areas at risk of burning are correlated with areas considered to be wildlands or area with wildland type vegetation that are generally not intensely developed. In the case of a fire in a high fire threat area, 97 residential properties would be affected while in the case of a fire in a moderate fire threat area, 1,593 residential properties would be affected.

Climate Change and Sea Level Rise
Climate change will affect the people, property, economy, and ecosystems in Monterey County. Sea level rise risk exposure in the City was calculated based on the NOAA Office for Coastal Management sea level rise viewer projections. With one foot of sea level rise (2030) one residential property will be impacted, with 3 feet of sea level rise (2060) one residential property will be impacted, and with seven feet of sea level rise (2100) 15 residential properties will be impacted in the City.

Landslide
Areas with high landslide susceptibility could lose 21 residential properties while areas with moderate landslide susceptibility could lose 679 residential properties.

Tsunami
The City is in a mapped tsunami inundation zone. In the inundation zone, 268 residential properties are at risk in the City.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 277, Packet Page 400

APPENDIX
E

PROGRESS

REPORT UPDATE
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 278, Packet Page 401 City of Monterey | Housing Element Update 2023-2031 Appendix E: 5th Cycle Housing Element Accomplishments Public Review Draft – August 2023 E-1
Appendix – E Fifth Cycle Housing Element
Accomplishments
This Appendix details the City of Monterey’s achievements in implementing the goals, policies, and programs from the 2015–2023 Housing Element. The City made significant progress in addressing housing needs through the development of new units, including units affordable to lower-income and special needs households. A summary of accomplishments by goal and a complete review of the City’s progress in implementing 2015–2023 policies and programs is provided in Table E-1.

E.1 Effectiveness of Programs for Special
Housing Needs
Special needs populations include farmworkers, large families, female-headed single parent households, people experiencing homelessness, persons with disabilities, seniors, households with extremely low incomes. As shown in greater detail in Table E-1, the City made a diligent, consistent effort to achieve its housing goals that address special housing needs through the implementation of policies and programs from the 2015–2023 Housing Element.

Following is a summary of the effectiveness of programs for special housing needs:
• In 2019, MidPen completed an 100% affordable project, the Van Buren Senior Housing project, with 19 rental units of which 18 rental units are affordable to very low- and low-income seniors at 669 Van Buren Street behind the City's Police Station. • In 2020, the City issued an RFP for 100% affordable housing developments on City owned sites at 587 and 593 Van Buren Street and 424 and 450 Madison Street. The City Council entered into an exclusive negotiating agreement with MidPen Housing and in 2022, the City authorized a loan for this project (Madison Street project). The City also received a Permanent Local Housing Allocation grant award for this project in 2021 year in the amount of $116,419 of which 65% of the grant funds can be used for predevelopment costs related to affordable housing development. • The City provided emergency repair assistance to 22 low- and moderate-income households between 2018 and 2022. 54 total households received rehabilitation assistance between 2018 and 2022 aimed at low-income population, which on average was more than double the objective to assist 5 households per year. 26 total households received assistance under the “Mr. Fixit” program to support low-income type residents owning single-family homes.
• Between 2021 and 2022, the Housing Programs Office spent $1.9 million on housing programs, including support of public services, public facilities improvements, and Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 279, Packet Page 402 City of Monterey | Housing Element Update 2023-2031 Appendix E: 5th Cycle Housing Element Accomplishments Public Review Draft – August 2023 E-2
rehabilitation of non-profit owned facilities used to provide services to the disadvantaged, preservation of existing affordable ownership units, and housing rehabilitation grants. $127,000 was distributed to low-income homeowners for health and safety rehabilitation grants and loans. Public services were provided to 1,714 low- and moderate-income households and individuals including services for seniors, persons with disabilities, homeless persons, youth and families. In addition, over 500 below market rate, deed restricted affordable rental and ownership housing units. Were maintained, administered and monitored. • To support people experiencing homelessness and persons with disabilities City amended its Zoning Code to:
- Allow emergency shelters as a permitted use in a variety of commercial districts throughout the City;
- Define and explicitly allow both supportive and transitional housing types in all zones that allow residential uses and treat these housing types the same as all other housing types in the same zone;
- Provide individuals with developmental disabilities reasonable accommodation rules, policies, practices, and procedures that may be necessary to ensure equal access to housing; and,
- Ensure that ADA regulations and needs are met in all projects. • The City restarted the Down Payment Assistance Program in 2020 and issued 1 new Down Payment Assistance loan for $50,000 to a qualified buyer through the City's Purchase and Resale Program, which supports low-income residents that live and/or work in the City of Monterey. In 2022, two new Down Payment Assistance loans, one totaling $36,750 and the second totaling $35,560, were given to qualified buyers through the City's Purchase and Resale Program.
• The City purchased and resold 16 total units through the Purchase and Resale Program between 2019 and 2022 to support low-income residents. • Two housing projects at 2200 North Fremont Street and 595 Munras were granted a streamlined permitting process. 595 Munras was completed and includes units affordable to low-income population. 2200 North Fremont Street is under construction and expected to open during the 6th Cycle Housing Element.

E.2 Key Actions
Following is a summary of key actions under each 2015–2023 goal. See Table E-1 at the end of this Appendix for more details.

Goal a. Promote construction of new ownership housing units and conservation of existing ownership housing units to maintain and/or improve the existing balance between owner and rental units in Monterey.
• The City maintains a list of larger developable sites within its specific plans and regularly meets with property owners to determine future housing construction opportunities.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 280, Packet Page 403 City of Monterey | Housing Element Update 2023-2031 Appendix E: 5th Cycle HE Accomplishments Public Review Draft – August 2023 E-3
• No single-family properties have been rezoned.
• The minimum lot size for single-family subdivisions on existing R-3 lots was reduced in 2018 to help increase the stock of affordable housing. • New ADU laws became effective to allow additional units, and the Monterey City Code was amended in 2022 to incorporate the new state ADU laws.

Goal b. Broaden the choice of rental housing types available to residents of Monterey in all price ranges and for all family sizes, while maintaining neighborhood compatibility and, where possible, using second units to encourage owner opportunities. • Densities have been increased in some specific plan areas to 100 du/acre or no limit on an individual site if overall density for an area is not achieved. • The City provides brochures that outline the City’s Voluntary Rental Guidelines in the housing office and online.
• The City continues to require a minimum 5,000-square-foot lot size for new apartment developments.

Goal c. Provide family housing opportunities on larger sites and for all income levels. • The City continues to encourage the Housing Authority and for-profit and nonprofit developers to build affordable housing for families with children whenever possible and discuss available incentives.
• The City rezoned 20 properties along Garden Road from light industrial and office development to multi-family residential to support affordable housing opportunities for families with children.

Goal d. Encourage maintenance and rehabilitation of the entire housing stock. The City will continue to advertise rehabilitation programs on the City’s website and provide brochures at the City library and housing office. • 102 households received maintenance and repair assistance provided by the City. • The City purchased a 3-bedroom deed restricted low-income unit to rehabilitate and resell as a low-income unit.
• The City's Ordinance requires new inclusionary housing units to be preserved in perpetuity with a recorded deed restriction. • The City continues to prioritize funding or acquire funding to assist nonprofits to purchase units that may be lost from the Inclusionary Program or to acquire replacement units.
• The City continues to provide online applications for the Purchase and Resale program waiting list to market affordable housing units on the City website.

Goal e. Provide for fair and equal housing opportunities for all persons, regardless of age, sex, family size, race, creed, color, or national origin. • The City worked with Monterey County on an Analysis of Impediments to Fair Housing Choice (Regional AI) study. Echo provides fair housing services to the City of Monterey and other jurisdictions in Monterey County.

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• City rehabilitation funds are distributed citywide based on applications received. • Inclusionary housing program is citywide requirement for all developments exceeding 5 units. • In 2022, the City referred households to United Way who administered the regional rental assistance program.

Goal f. Remain sensitive to the needs of the elderly, single-parent-headed households, the disabled and large families, and develop positive programs to assist the homeless. • The City has adopted additional ordinance language to ensure that ADA regulations and needs are met in all projects.
• In 2022, the City referred households to United Way who administered the regional rental assistance program.
• The City provides $272,000 amount of public service grants annually to nonprofit providers of services and temporary housing to Monterey homeless. • The worked with the San Andreas Regional Center in Salinas to implement an outreach program that informs families within the City on housing and services available for persons with developmental disabilities.
• The City supported Van Buren Senior Housing Project and Monterey Hotel Apartments, which are both completed and occupied. Van Buren Senior Housing Project includes 19 apartment units, of which 18 are affordable units, while Monterey Hotel Apartment include three very low-income units, such as SROs, nine low-income units, and six moderate income units.

Goal g. Provide adequate sites to build new housing units for all income levels and to meet the City’s fair share of housing needs for 2015-2023.
• The City has retained zoning capacity to meet its regional fair share housing goal. • The City currently allows flexibility in development standards for projects that apply for a density bonus. In addition, the underutilized site list provided on City website.

Goal h. Provide housing that specifically meets the needs of the Monterey workforce. • Affordable housing projects at 587 and 593 Van Buren St and 424 and 450 Madison Street may potentially include 42 affordable units. The developer intends on submitting an SB35 application for seeking ministerial approval of the project. This project is still incomplete and will be constructed during the 6th Cycle Housing Element. • Zoning Code allows flexibility in designing infill housing on larger development sites.

Goal i. Provide incentives for affordable housing, workforce housing, and ownership housing to meet the unique needs identified in the Housing Element. Provide incentives to complement the inclusionary housing program, with a particular goal of maintaining inclusionary housing in perpetuity and increasing the percentage of affordable units. Parking adjustment incentives should not impact residential neighborhoods. • The City amended the Density Bonus Ordinance to provide additional incentives, including reduction in site development standards or a modification of Development Code requirements or design guidelines that exceed the minimum building standards, Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 282, Packet Page 405 City of Monterey | Housing Element Update 2023-2031 Appendix E: 5th Cycle HE Accomplishments Public Review Draft – August 2023 E-5
as well as approval of mixed-use zoning in conjunction with the qualified housing development if land uses will reduce the cost of the qualified housing development.

These incentives apply to mixed-use/transit-oriented projects in the specific plan areas. • The City amended the Zoning Ordinance to allow density bonuses of up to 35 percent for project exceeding City inclusionary housing percentages or the state-mandated criteria; and to state that projects that receive density bonuses shall maintain affordability for the life of the project. • The City rezoned 20 industrial properties to allow multi-family housing development. • The City ordinance requires inclusionary housing.

Goal j. The City will continue to promote sustainability and energy efficiency in residential development to lower energy use through energy-efficient urban design and through better design and construction in individual projects.
• All specific plans encourage transit priority projects.

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Table E-1: Housing Programs Progress Report
This table describes progress of all programs in the City of Monterey Fifth Cycle Housing Element, including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element. 1 2 3 4
Program Objective Timeframe in
H.E. Status of Program Implementation
Goal a. Promote construction of new ownership housing units and conservation of existing ownership housing units to maintain and/or improve the existing balance between owner and rental units in Monterey.

Program a.1.1. The City will continue to update its
list of larger developable sites and contact property
owners to determine opportunities for housing
construction. There will be an emphasis on
constructing housing types that provide mixed-income
and large family ownership opportunities.
2018 - Promote home
ownership
Annually, 2015-2023 Completed - The City maintains a list of larger developable sites within its specific plans and
regularly meets with property owners to determine
future housing construction opportunities.

Program a.1.2. Maintain existing single-family zoning
throughout the City. Rezoning of single-family land to
other uses should not occur without findings that the
proposed use is more beneficial to the City than
retaining single-family ownership opportunities.

Ongoing, 2015-2023 Completed - The City has maintained existing single-family zoning throughout the City as planned.

No single-family properties have been rezoned
Program a.1.3. Continue to create and adopt
development standards for mixed use areas that have
development potential for new housing units.

Adopt Lighthouse
Specific Plan by
December 2016.

Completed - In August 2016, the City created and
adopted development standards for mixed use
areas that had potential for new housing
development.

Program a.1.4. Continue to work with the major
employers in Monterey and the region to provide
targeted homeownership opportunities for employees
(see Programs h.1.1 and h.1.2).

Meet regularly with
established working
group, 2015-2023
In 2018, proposals were requested for the
allocation of water for affordable housing projects
and two project were awarded water for 10
affordable units.

In 2019, Montage Health purchased rental housing
and is considering a second project purchase.

In 2022, Middlebury Institute finished construction
on a new housing project for students at 787
Munras. The dormitory houses 85 students and 2
resident assistants.

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Table E-1: Housing Programs Progress Report
This table describes progress of all programs in the City of Monterey Fifth Cycle Housing Element, including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element. 1 2 3 4
Program Objective Timeframe in
H.E. Status of Program Implementation
Program a.1.5. Monitor and evaluate the use permit
process for new multi-family projects in the R-3 and
Commercial districts to determine whether the
process qualifies as a constraint to residential
development. Identify strategies to be implemented by
the City to remove any constraint identified by the
evaluation. Provide a summary of the evaluation (and
strategies, if identified) to HCD as a part of the City’s annual reporting requirement.

Annually, 2015-2023
Responsible
In 2018, The City processed entitlements for two
40-unit projects. One is streamlined as a TPP within
the North Fremont Specific Plan area but is
requesting additional density beyond the allowed
density bonus, which requires a use permit. The
other is within a sensitive scenic corridor and
Planning Community District, which requires a use
permit and does not qualify for a CEQA exemption.

Progress continues, though lack of water supply
continues to be significant constraint to
development. Staff has contacted the Monterey
Peninsula Water District and State Water
Resources Control Board about relaxing Condition
#2 of Cease and Desist Order. Little progress has
been made.

Program a.2.1. The City will continue allowing
additional floor area for single-family homes and
eliminate additional parking requirements with building upgrades for historic properties.

Ongoing Completed - Zoning allows flexibility.

Program a.2.2. Begin process for determining
whether City can reduce the minimum lot size for
single-family subdivisions on existing R-3 lots to
increase the stock of affordable housing, while
retaining the existing house where one is present and
retaining neighborhood character. The program may
use condominium, townhouse, or detached form of
housing units and shall utilize design and construction Consider reducing
the minimum lot size
and amending the
Zoning Code by
June 2016.

In 2018, existing City regulations allowed for the
reduction of minimum lot size for single-family
subdivisions on existing R-3 lots.

New ADU laws became effective to allow
additional units. The Monterey City Code was
amended in 2022 to incorporate the new state
ADU laws.

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Table E-1: Housing Programs Progress Report
This table describes progress of all programs in the City of Monterey Fifth Cycle Housing Element, including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element. 1 2 3 4
Program Objective Timeframe in
H.E. Status of Program Implementation
methods to maximize privacy and minimize sound
transmission.

Program a.2.3. Evaluate the Down Payment
Assistance Program to determine if it will be practical to assign the City’s purchase option to qualified
buyers. Investigate opportunities to increase Down
Payment Assistance loans for equity sharing for
detached single-family houses.

Annually 2015-2023 The City restarted the Down Payment Assistance Program in 2020 and issued 1 new Down Payment
Assistance loan for $50,000 to a qualified buyer
through the City's Purchase and Resale Program. In
2022, two new Down Payment Assistance loans,
one totaling $36,750 and the second totaling
$35,560.09, were given to qualified buyers through
the City's Purchase and Resale Program.

Program b.1.1. Maintain multi-family densities at 30
units per acre in the R-3 zone, specific plan areas, and in commercial zones with the potential for density
bonuses as outlined in Program i.1.2.

Ongoing, 2014-2023 Completed - Densities have been increased in some specific plan areas to 100 du/acre or no limit on an
individual site if overall density for an area is not
achieved.

Program b.1.2. Assist the Housing Authority,
nonprofit agencies, and private developers in providing extremely low-, low-, and very low-income housing as
opportunities become available, using the current
Housing Element as a basis for action.

The City will continue to provide assistance by
streamlining the permit process. A staff member is
assigned to coordinate City reviews. The City will also coordinate with the developer to help make the
project financially feasible, such as by providing lowOngoing In 2018, the City provided a streamlined process for 2200 North Fremont Street as allowed in the
specific plan for design review. The project yields 8
affordable units. Dedicated staff also processed 595
Munras, yielding 10 units with one affordable unit;
and will process upcoming projects that were
awarded a water allocation in 2018.

In 2019, the City worked with MidPen Housing to
construct a 100% affordable project behind the
City's Police Station.

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Table E-1: Housing Programs Progress Report
This table describes progress of all programs in the City of Monterey Fifth Cycle Housing Element, including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element. 1 2 3 4
Program Objective Timeframe in
H.E. Status of Program Implementation
interest loans and other incentives when affordable
housing goals are met.

In 2020, the City issued an RFP for 100% affordable
housing developments on City owned sites.

Multiple proposals were received. In 2022, the City
Council authorized the City Manager to execute a
loan with MidPen Housing to secure a loan and
guarantee a loan obligation for an affordable
housing project at 587 and 593 Van Buren Street
and 424 and 450 Madison Street.

Program b.1.3. Evaluate the existing allocation of
Housing Choice Vouchers and encourage and support
the Housing Authority and private market landlords to
expand utilization of the Housing Choice Voucher
program.

Encourage the Housing Authority to grant 20 percent
rent exceptions for the Monterey area to provide a
greater housing choice for very low-income renters.

Encourage the Housing Authority to market the
Housing Choice Voucher programs to Monterey
landlords and post applications on the City’s website.

Encourage the Housing Authority to recruit more
Monterey families assisted by Housing Choice Voucher
into the Family Self-Sufficiency Program.

Annually, 2014-2023 2018 – The City plans to evaluate the existing allocation of Housing Choice Vouchers and
encourage and support the Housing Authority of
the County of Monterey (HACM) and private
market landlords more in the future to expand
utilization of the Housing Choice Voucher program.

The City plans to address this as part of the update
to the Analysis of Impediments to Fair Housing
Choice.

Program b.1.4. The City will encourage affordable
rents by providing brochures that outline the City’s
Voluntary Rental Guidelines, but discourage citywide
rent control.

By June 2016 Completed - The City provides brochures that outline the City’s Voluntary Rental Guidelines in
the housing office and online, and new rental
guidelines were approved.

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Table E-1: Housing Programs Progress Report
This table describes progress of all programs in the City of Monterey Fifth Cycle Housing Element, including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element. 1 2 3 4
Program Objective Timeframe in
H.E. Status of Program Implementation
Program b.1.5. Continue to require a minimum
5,000-square-foot lot size for new apartment
developments.
2014-2023, as new
projects are
processed through
the Planning Office
Completed - The City continues to require a
minimum 5,000-square-foot lot size for new
apartment developments.

Goal c. Provide family housing opportunities on larger sites and for all income levels.

Program c.1.1. Encourage larger units with two or
more bedrooms and open spaces with sufficient area
for children’s play in R-3 developments. The City will
conduct a comprehensive review and revision of the
current parking requirement to determine the
feasibility of requiring at least one-third of any housing development over three units to provide two or more
bedrooms. All housing projects will continue to be
required to provide open space to give residents an
opportunity for outside activities.

Conduct a
comprehensive
review and revisions
of current parking
requirements by
June 2016.
2018 - The City continues to encourage larger units
with two or more bedrooms and open spaces with
sufficient area for children’s play in R-3
developments as projects come forward.

The City conducted a comprehensive review and
revision of the current parking requirement to
determine the feasibility of requiring at least onethird of any housing development over three units to provide two or more bedrooms and reported it
to be unsuccessful and does not plan to pursue this
any longer.

All housing projects are required by the City to
provide open space to give residents an
opportunity for outside activities.

Program c.1.2. Encourage the Housing Authority
and for-profit and nonprofit developers to build
affordable housing for families with children whenever
possible. The City will discuss family housing needs
with potential developers and the financial and
processing incentives that are available.
2015-2023, as
projects are
approved through
the Planning
Department
Progress continues. In 2021, staff met with multiple
developers to discuss this opportunity in a recently
rezoned area along Garden Road. Garden Road
was previously only available for light industrial and
office development. The City Council adopted
zoning changes to allow multi-family residential.

Many of these developers seem interested in larger
residential units due to water limitations. Since
2020, the City has approved entitlements for 180
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Table E-1: Housing Programs Progress Report
This table describes progress of all programs in the City of Monterey Fifth Cycle Housing Element, including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element. 1 2 3 4
Program Objective Timeframe in
H.E. Status of Program Implementation
housing units. These housing units were either
retrofits of existing buildings or new construction.

Of the 180 housing units, 89 were entitled in 2022.

Program d.1.1. Provide emergency major repair
assistance to low- and moderate-income households.

Provide assistance to 5
households per year
2015-2023, as
funding is available
22 total low- and moderate- income households
received emergency major repair assistance. In
2018, the City assisted 18 households; in 2021 the
City assisted 1 household; and in 2022 the City
assisted 2 households
Program d.1.2. Provide rehabilitation assistance in
the form of:

Major rehabilitation loans;
Emergency repair loans; and
Home safety repair grants.

Provide assistance to 5
households per year
2015-2023, as
funding is available
54 total households received rehabilitation
assistance. In 2018 and 2019, the City assisted 18
households; in 2020 and 2021 the City assisted 7
households; and in 2022 the City assisted four
households.

Program d.1.3. Continue the “Mr. Fixit” program
to provide emergency repair assistance, weatherization
and energy retrofits to an average of 10 units per year.

Provide assistance to 5
households per year
2015-2023, as
funding is available
26 total households received assistance under the
“Mr. Fixit” program. In 2018, the City assisted 4
low-income households (estimated $40,000); in
2019, the City assisted 5 households; in 2020 the
City assisted 6 households; in 2021, the City
assisted seven households, and in 2022 the City
assisted four households.

Program d.2.1. Investigate the option of purchasing
inclusionary housing units or other units to replace
them. Investigate programs, nonprofit sponsors, and
funding sources to retain lower-income housing units
at risk of conversion to market-rate rents.

Check on an annual
basis whether
projects are at risk
of conversion to
market rate
Ongoing - In 2018, the City purchased a 3-bedroom
deed restricted low-income unit to rehabilitate and
resell as a low-income unit. The City operates an
effective Purchase and Resale Program.

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Table E-1: Housing Programs Progress Report
This table describes progress of all programs in the City of Monterey Fifth Cycle Housing Element, including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element. 1 2 3 4
Program Objective Timeframe in
H.E. Status of Program Implementation
Program d.2.2. Maintain the affordability of lowand moderate- income rental units under the Inclusionary Housing Program through the use of deed
restrictions and continue to implement the Purchase
and Resale Program for owner-occupied inclusionary
units.

Ongoing, 2015-2023 Ongoing – The City's Ordinance requires new inclusionary housing units to be preserved in
perpetuity with a recorded deed restriction. The
City purchased and resold 16 total units through
the Purchase and Resale Program: two units in
2019, five units in 2020, five units in 2020, and 4
units in 2022.

Program d.2.3. Continue to monitor at-risk units
and gauge interest in renewal through individual
contacts and surveys. Meet with property owners to
strategize what package of incentives would retain the
affordable units.

Contact property
owners annually to
determine
conversion plans.

The City continues to monitor all units at-risk units
of converting to market rate. The City purchased
and resold 16 total units through the Purchase and
Resale Program: two units in 2019, five units in
2020, five units in 2020, and 4 units in 2022.

Program d.2.4. The City will continue to explore
with local non-profits and other affordable housing
developers strategies and financing alternatives that
can be employed to produce new affordable extremely
low, low and very low-income housing in the
community.

Meet with local
nonprofits annually.

In 2020, the City issued an RFP for 100% affordable
housing developments on City owned sites. In
2022, the City authorized an Exclusive Negotiating
Agreement with MidPen Housing for development
of affordable housing at 587 and 593 Van Buren St,
424 and 450 Madison Street. The City also received
a Permanent Local Housing Allocation grant award
in Permanent Local Housing Allocation Funds for
the affordable housing project at Van Buren and
Madison Streets. These funds will be used for
predevelopment costs related to affordable housing
(low-income housing) at this site.

Program d.2.5. Prioritize funding or acquire funding
to assist nonprofits to purchase units that may be lost from the Inclusionary Program or to acquire
replacement units.

Meet with local
nonprofits annually.

Ongoing - The City continues to prioritize funding
or acquire funding to assist nonprofits to purchase
units that may be lost from the Inclusionary
Program or to acquire replacement units. The City
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Table E-1: Housing Programs Progress Report
This table describes progress of all programs in the City of Monterey Fifth Cycle Housing Element, including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element. 1 2 3 4
Program Objective Timeframe in
H.E. Status of Program Implementation
operates an effective Purchase and Resale Program,
through which 16 total units were purchased and
resold: The two units in 2019, five units in 2020,
five units in 2020, and 4 units in 2022.

Program d.2.6. Analyze the feasibility of utilizing a
City-sponsored rehabilitation program to encourage
at-risk units to be retained.

Determine feasibility
by June 2010.
2018 - The City continues to successfully utilize a
City-sponsored single-family rehabilitation program,
a purchase resale first time homebuyer program,
and a down payment assistance program to retain
at- risk units.

Program d.2.7. Implement a program to reduce,
waive, or subsidize local fees associated with
preservation or replacement of at-risk units.

Implement a
program by January
2017.

Completed – No fees are associated with
preservation or replacement of at-risk units.

Goal e. Provide for fair and equal housing opportunities for all persons, regardless of age, sex, family size, race, creed, color, or national origin.

Program e.1.1. Cooperate in countywide fair
housing activities and federal government programs
that emphasize educational and counseling activities.

Ongoing, 2015-2023 Completed- The City worked cooperatively with Monterey County on an Analysis of Impediments to
Fair Housing Choice (Regional AI) study. Echo
provides fair housing services to the City of
Monterey and other jurisdictions in Monterey
County.

Program e.1.2. Provide contract fair housing
mediation for all fair housing complaints and questions.

Advertise fair housing mediation services. Notify social service agencies of programs. Advertise programs
consistent with the City’s Housing Consolidated Plan.

Ongoing, 2015-2023 Ongoing - City contracts with ECHO fair housing services.

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Table E-1: Housing Programs Progress Report
This table describes progress of all programs in the City of Monterey Fifth Cycle Housing Element, including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element. 1 2 3 4
Program Objective Timeframe in
H.E. Status of Program Implementation
Program e.1.3. Distribute available housing
subsidies to sites throughout the City to avoid
concentrations of subsidized housing. Inclusionary
housing units should be built on the site of market-rate housing. Inclusionary housing should be compatible
with the surrounding neighborhood.

Ongoing, 2015-2023 Ongoing - City rehabilitation funds are distributed citywide based on applications received.

Inclusionary housing program is citywide
requirement for all developments exceeding 5 units.

A concentration of subsidized housing is not being
created.

Program e.1.4. Continue to provide online
applications for the City’s Purchase and Resale
program waiting list to market affordable housing units on the City’s website.

Ongoing, 2015-2023 Completed - The City provides online applications for the City’s Purchase and Resale program waiting
list to market affordable housing units on the City
website.

Program e.1.5. Continue to provide service
referrals to rental assistance, ownership assistance,
homeless assistance, and general community services.

Ongoing, 2015-2023 The City provides funding to Salvation Army annually. Salvation Army provides some rental
assistance with this funding. The City also provides
funding to nonprofits providing homeless services
such as Gathering Place for Women, Community
Human Services and Interim, Inc. City funds local
non-profits providing various services to qualified
households. Referrals are regularly provided based
on the issue.

In 2020, the City provided approximately $960,000
in emergency rental assistance to low income
households.

In 2021, the City provided approximately $894,644
in emergency rental assistance to low income
households.

In 2022, the City referred households to United
Way who administered the regional rental
assistance program.

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Table E-1: Housing Programs Progress Report
This table describes progress of all programs in the City of Monterey Fifth Cycle Housing Element, including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element. 1 2 3 4
Program Objective Timeframe in
H.E. Status of Program Implementation
Program e.1.6. Continue to distribute Housing
Choice Voucher applications at the City’s Housing
Division and have staff available to help applicants with the process.

Ongoing Completed – Applications are available for the
Housing Choice Voucher program.

Goal f. Remain sensitive to the needs of the elderly, single-parent-headed households, the disabled and large families, and develop positive programs to assist the homeless.

Program f.1.1. Provide for needs of special housing
needs groups by complying with ADA regulations in
reviewing private development projects and in Cityassisted housing projects.

Ongoing, 2015-2023,
as projects are
processed through
the Planning
Department
Ongoing - The City has adopted additional
ordinance language to ensure that ADA regulations
and needs are met in all projects.

Program f.1.2. Market low- and moderate-income
housing programs through the use of direct advertising
including, but not limited to, the City’s website,
referrals, brochures, newspapers, and other media.

Information will be
available on the
website by June
2016.

Ongoing - The City markets low- and moderateincome housing programs through the use of direct advertising.

Program f.1.3. Encourage the schools, students, and
senior citizen groups to pursue roommate matching
service to take advantage of underutilized homes in
Monterey.

Ongoing, 2015-2023 Future program - The City refers all inquiries to the appropriate school or group on an ongoing basis
and plans to be more proactive in the future.

Program f.1.4. Develop a program of emergency
grants or loans to assist low-income households that
are threatened with eviction. Provide funds on a onetime basis to assist households that could remain in their rental housing units if back rent is paid.
2015-2023, as
funding is available
In 2020, the City provided approximately $960,000
in emergency rental assistance to low income
households.

In 2021, the City provided approximately $894,644
in emergency rental assistance to low income
households.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 293, Packet Page 416 City of Monterey | Housing Element Update 2023-2031 Appendix E: 5th Cycle Housing Element Accomplishments Public Review Draft – August 2023 E-16
Table E-1: Housing Programs Progress Report
This table describes progress of all programs in the City of Monterey Fifth Cycle Housing Element, including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element. 1 2 3 4
Program Objective Timeframe in
H.E. Status of Program Implementation
In 2022, the City referred households to United
Way who administered the regional rental
assistance program.

Program f.1.5. Continue to provide City assistance
to nonprofit providers of services and temporary
housing to Monterey homeless.

Ongoing, as funding
is available
Completed - Public service grants are provided
annually through a competitive process.

Program f.1.6. Amend the City’s Zoning Code to
provide individuals with developmental disabilities
reasonable accommodation in rules, policies, practices, and procedures that may be necessary to ensure equal
access to housing. The purpose of this is to provide a
process for individuals with disabilities to make
requests for reasonable accommodation in regard to
relief from the various land use, zoning, or building
laws of the City. As part of this program, the City will appoint a staff person to work with disabled persons
who are proposing improvements to accommodate
their needs. The purpose is to streamline the permit
review process if needed.

Amend the Zoning
Code by June 2016.

Completed - The City amended its Zoning Code in
December 2016 to provide individuals with
developmental disabilities reasonable
accommodation.

Program f.1.7: Work with the San Andreas
Regional Center in Salinas to implement an outreach
program that informs families within the City on
housing and services available for persons with
developmental disabilities. Such collaboration should
include development of an informational brochure and
information on services on the City’s website, and
providing housing-related training for
individuals/families through workshops.

Development of
Outreach Program
by January, 2017
Completed
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 294, Packet Page 417 City of Monterey | Housing Element Update 2023-2031 Appendix E: 5th Cycle HE Accomplishments Public Review Draft – August 2023 E-17
Table E-1: Housing Programs Progress Report
This table describes progress of all programs in the City of Monterey Fifth Cycle Housing Element, including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element. 1 2 3 4
Program Objective Timeframe in
H.E. Status of Program Implementation
Program f.1.8: Develop a program to provide rental
assistance to fill the gap between income levels and the cost of housing for persons with Developmental
Disabilities. The program will include the following
steps: Step One: Work with the regional center to
identify the housing needs of the clients and assist in identifying available housing that meets those criteria.

Step Two: Identify the gaps that limit access to housing for persons with developmental disabilities (i.e.
financial, accessibility). Step Three: Develop Guidelines and market program
Assist 10 persons with
developmental disabilities
Begin Program
Development
January, 2017
In 2019, annual grants were provided to Salvation
Army.

In 2020, the City provided approximately $960,000
in emergency rental assistance to low income
households.

In 2021, the City provided approximately $894,644
in emergency rental assistance to low income
households.

In 2022, the City referred households to United
Way who administered the regional rental
assistance program.

Program f.1.9: Explore models to encourage the
creation of housing for persons with developmental
disabilities and implement a program by 2017. Such
models could include assisting in housing development
through the use of set-asides, scattered site
acquisition, new construction, and pooled trusts;
providing housing services that educate, advocate,
inform, and assist people to locate and maintain
housing; and models to assist in the maintenance and
repair of housing for persons with developmental
disabilities. The City shall also seek State and Federal monies for direct support of housing construction and
rehabilitation specifically targeted for housing for
persons with disabilities.

Assist 10 persons with
developmental
disabilities.

Begin Program
Development
January, 2017.

Progress continues. In 2019, the City identified city
owned properties for affordable housing
construction. In 2020, the City issued an RFP for
100% affordable housing developments on City
owned sites. Multiple proposals were received. In
2022, the City authorized an Exclusive Negotiating
Agreement with MidPen Housing for development
of affordable housing at 587 and 593 Van Buren St,
424 and 450 Madison Street. The City also received
a Permanent Local Housing Allocation grant award
in Permanent Local Housing Allocation Funds for
the affordable housing project at Van Buren and
Madison Streets. These funds will be used for
predevelopment costs related to affordable housing
(low-income housing) at this site.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 295, Packet Page 418 City of Monterey | Housing Element Update 2023-2031 Appendix E: 5th Cycle Housing Element Accomplishments Public Review Draft – August 2023 E-18
Table E-1: Housing Programs Progress Report
This table describes progress of all programs in the City of Monterey Fifth Cycle Housing Element, including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element. 1 2 3 4
Program Objective Timeframe in
H.E. Status of Program Implementation
Program f.1.10. Pursuant to Senate Bill 2, the City
will amend the Zoning Ordinance to allow emergency
shelters as a permitted use in a newly created overlay
zone along Del Monte Avenue east of the Naval
Postgraduate School, which has vacant and
underutilized parcels and is close to transit corridors and close to services. The City will create this overlay zone with specific development standards for
emergency shelters. In addition, the City will evaluate adopting development and managerial standards that
will be consistent with Government Code Section
65583(a)(4). These standards may include such items
as:

Lighting;
On-site management;
Maximum number of beds or persons to be served
nightly by the facility;
Off-street parking based on demonstrated need; and
Security during hours that the emergency shelter is in
operation.

Develop this overlay
designation by June
2016.

Completed - In 2017, the City amended the Zoning
Ordinance to allow emergency shelters as a
permitted use in a variety of commercial districts
throughout the City.

Program f.1.11. Pursuant to Senate Bill 2, the City
must explicitly allow both supportive and transitional
housing types in all zones that allow residential uses
and treated the same as any other housing type in the
same zone. The City shall update its Zoning Ordinance
to include separate definitions of transitional and
supportive housing as defined in Health and Safety
Code Sections 50675.2 and 50675.14. Both transitional
Amend the Zoning
Code by June 2016.

Partially completed – In December 2016, the City
amended the Zoning Code to define and explicitly
allow both supportive and transitional housing
types in all zones that allow residential uses and
treat these housing types the same as all other
housing types in the same zone. Additional
amendments required for residential districts.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 296, Packet Page 419 City of Monterey | Housing Element Update 2023-2031 Appendix E: 5th Cycle HE Accomplishments Public Review Draft – August 2023 E-19
Table E-1: Housing Programs Progress Report
This table describes progress of all programs in the City of Monterey Fifth Cycle Housing Element, including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element. 1 2 3 4
Program Objective Timeframe in
H.E. Status of Program Implementation
and supportive housing types will be allowed as a
permitted use in all zones where residential uses are
allowed, subject to only the same restrictions on
residential uses contained in the same type of
structure.

Program f.1.12. To support the development of
housing affordable to extremely low- income
households, the City shall apply for state and federal
funding and grant priority to projects that include units affordable to extremely low- income households, such
as SROs.

Annually, 2016-2023 Ongoing - Van Buren Senior Housing Project and Monterey Hotel Apartments have been completed
and are occupied.

Program f.1.13. The City will support regional
efforts to ensure that the need for farmworker
housing is met at a regional level. The City will also
analyze zoning ordinance on a regular basis for
compliance with and Safety Code Sections 17021.5 and
17021.6. Section 17021.5. If any inconsistencies are
found, amendments to achieve compliances shall be
made within six months.

Annually, 2016-2023,
zoning amendments
within six months of
discovery of
inconsistency
Completed - The regional effort in and around
Monterey will partially address low income housing
by examining farm worker housing. The City has
found no compliance inconsistency between the
local Zoning Code and State Law.

Program f.1.14. The City will support regional
efforts and pursue the following to create adequate
supportive housing for the community:

Collaborate with Coalition of Homeless Service
Providers and Monterey Homeless Exchange to
develop a target for the number of Permanent
Supportive Housing Units to be developed in the City.

This will be a combination of some percentage of the
Annually, 2016-2023 2018 - The City meets regularly with the Coalition of Homeless Service Providers and Monterey
Homeless Exchange. However, more focus is
needed to achieve these program goals.

The City has not pursue Tenant Based Rental
Assistance funding from HOME Program to support
the operations of permanent supportive housing
communities.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 297, Packet Page 420 City of Monterey | Housing Element Update 2023-2031 Appendix E: 5th Cycle Housing Element Accomplishments Public Review Draft – August 2023 E-20
Table E-1: Housing Programs Progress Report
This table describes progress of all programs in the City of Monterey Fifth Cycle Housing Element, including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element. 1 2 3 4
Program Objective Timeframe in
H.E. Status of Program Implementation
current homeless population plus other populations in
need of supportive housing.

Pursue Tenant Based Rental Assistance funding from
HOME Program to support the operations of
permanent supportive housing communities.

Work with the medical community, including CHOMP,
the County, the Central California Alliance for Health
and other providers to support case management and
other tenancy support funding in new supportive
housing communities. Studies have shown that stable
housing results in better health outcomes and that less than 10% of the population uses a disproportionate
amount of health care resources (“Super Utilizers”). By providing those Super Utilizers who are unstably house
(or homeless) with stable housing, hospitals and
providers can save money overall.

Encourage and facilitate integration of data between
homeless service providers, medical service providers
and the criminal justice system to implement more
effective discharge planning for patients and inmates.

Provide capacity grants and support for fledgling
organizations
The City meets regularly with the medical
community, including CHOMP, the County, the
Central California Alliance for Health and other
providers to support case management and other
tenancy support funding in new supportive housing
communities.

The City has not facilitated the integration of data
between homeless service providers, medical
service providers and the criminal justice system to
implement more effective discharge planning for
patients and inmates.

The City provides grants and support for fledgling
organizations on an annual basis through its CDBG
program.
2019 – 2022: Coalition of Homeless Services
Providers works closely in coordination with the
CDBG subrecipients receiving allocations listed in
the City’s plan: Community Human Services’
program, Safe Place in Monterey, that provides
counseling, family reunification, temporary shelter
and street outreach for homeless youth; Interim
Inc. that provides homeless services, emergency
and temporary housing outreach, and case
management for persons with mental illnesses; the
Salvation Army Homeless Support Services that
provides case management, voucher assistance, and
homeless outreach services; Interim’s Manzanit
House provides short-term crisis services as well as
emergency placement in Monterey’s Laguna
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 298, Packet Page 421 City of Monterey | Housing Element Update 2023-2031 Appendix E: 5th Cycle HE Accomplishments Public Review Draft – August 2023 E-21
Table E-1: Housing Programs Progress Report
This table describes progress of all programs in the City of Monterey Fifth Cycle Housing Element, including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element. 1 2 3 4
Program Objective Timeframe in
H.E. Status of Program Implementation
Grande; and the Veterans Transition Center that
provides services for homeless Veterans and their
families.

Goal g. Provide adequate sites to build new housing units for all income levels and to meet the City’s fair share of housing needs for 2015-2023.

Program g.1.1. Retain the zoning capacity to meet
the AMBAG fair share housing goal between January 1,
2015, and July 30, 2023. Retain the opportunity to
construct the remaining fair-share requirement of 157
very low-, 102 low-, 119 moderate-, and 272 above
moderate-income housing units with excess zoning
capacity for housing in mixed- use areas, apartments in commercial zones, and apartments in R-3 zones.

Ongoing, 2015-2023 Completed - The City has retained capacity to meet its regional fair share housing goal. Zoning
retained.

Program g.1.2. Encourage exceptional design and
innovative solutions for housing style, through the
implementation of the Downtown and North Fremont
specific plans. The City will soon adopt a specific plan for the Lighthouse area, another mixed-use/transitoriented development neighborhood.

Continue to adopt
and implement
design guidelines for
mixed- use/transitoriented
development
neighborhoods
(2015-2023).

Ongoing implementation - All specific plans have
been adopted, including Lighthouse Avenue.

Program g.1.3. The City will actively support the
redevelopment of underutilized mixed- use sites to
meet the City’s RHNA allocation and to provide
additional affordable housing opportunities throughout
the City near transit stops, jobs, and services. The City will assist in the development of these underutilized
sites by offering the following assistance:

Provide a listing of
sites to affordable
housing developers
in the area on a
yearly basis and
assist developers as
projects are
processed through
Ongoing - The City awarded water allocations to
affordable, mixed-use projects on underutilized
sites and has been provided technical assistance for
development. The City currently allows flexibility in
development standards for projects that apply for a
density bonus. Underutilized site list provided on
City website.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 299, Packet Page 422 City of Monterey | Housing Element Update 2023-2031 Appendix E: 5th Cycle Housing Element Accomplishments Public Review Draft – August 2023 E-22
Table E-1: Housing Programs Progress Report
This table describes progress of all programs in the City of Monterey Fifth Cycle Housing Element, including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element. 1 2 3 4
Program Objective Timeframe in
H.E. Status of Program Implementation
The City will post a listing of underutilized sites on the City’s website and provide this list of sites to
developers interested in developing mixed-use projects
in the City.

The City will, where appropriate and when funds are
available, assist with the development of affordable
housing projects on these underutilized sites.

The City will also provide technical assistance with
applying for additional funding to construct an
affordable mixed-use project on an underutilized site.

The City will provide flexibility in development
standards on the construction of an affordable housing
project on an underutilized site including but not
limited to reduced setback requirements and reduced
parking requirements on a case-by-case basis.
the Planning Office,
2015-2023
Goal h. Provide housing that specifically meets the needs of the Monterey workforce.

Program h.1.1. Encourage workforce housing
programs for major Monterey employers, utilizing land
and other resources available to those employers that
could be devoted to workforce housing. Develop a
program where land costs are removed or reduced as
a cost of housing. Provide both owner and renter
housing with a requirement for permanent cost
reductions.

Continue meeting
with working group
on regular basis,
2015- 2023
In 2018, the City supported the acquisition of a
mixed use project with deed restricted units by a
major employer. In 2020, the City issued an RFP for
100% affordable housing developments on City
owned sites. In 2022, the City authorized an
Exclusive Negotiating Agreement with MidPen
Housing for development of affordable housing at
587 and 593 Van Buren St, 424 and 450 Madison
Street. The City also received a Permanent Local
Housing Allocation grant award in Permanent Local
Housing Allocation Funds for the affordable housing
project at Van Buren and Madison Streets. These
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 300, Packet Page 423 City of Monterey | Housing Element Update 2023-2031 Appendix E: 5th Cycle HE Accomplishments Public Review Draft – August 2023 E-23
Table E-1: Housing Programs Progress Report
This table describes progress of all programs in the City of Monterey Fifth Cycle Housing Element, including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element. 1 2 3 4
Program Objective Timeframe in
H.E. Status of Program Implementation
funds will be used for predevelopment costs related
to affordable housing (low-income housing) at this
site.

Program h.1.2. Encourage workforce housing
programs by the City of Monterey for Monterey City
employees.

Develop programs
for City Council
consideration by
2017
2018 - 2022 The City encourages workforce
housing programs and City employees can apply for
the City’s first-time homeowner program.

Program h.1.3. Utilize zoning tools such as Planned
Unit Developments and Planned Community Zoning to
provide flexibility in designing infill housing on larger development sites.
2015-2023, as
projects are
submitted to the
Planning
Department
Ongoing implementation - Zoning Code allows this
flexibility.

Program i.1.1. Continue to encourage mixeduse/transit-oriented projects in the specific plan areas that include affordable units by offering height and
parking exceptions to affordable housing projects.
2015-2023, as
projects are
submitted to the
Planning Office
City amended the Density Bonus Ordinance to
provide additional incentives.

Program i.1.2. Continue to allow density bonuses,
as appropriate. Amend the zoning ordinance to state
that:

Density bonuses of up to 35 percent may be allowed
for projects that exceed City inclusionary housing
percentages or the state-mandated criteria for lowincome, moderate-income, and special-needs housing; and
Amend ordinance by
June 2016 and
implement as
projects are
submitted.

Completed - The City amended the Zoning
Ordinance to allow density bonuses of up to 35
percent for project exceeding City inclusionary
housing percentages or the state-mandated criteria.

The City’s Zoning Ordinance has also been
amended to state that projects that receive density
bonuses shall maintain affordability for the life of
the project.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 301, Packet Page 424 City of Monterey | Housing Element Update 2023-2031 Appendix E: 5th Cycle Housing Element Accomplishments Public Review Draft – August 2023 E-24
Table E-1: Housing Programs Progress Report
This table describes progress of all programs in the City of Monterey Fifth Cycle Housing Element, including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element. 1 2 3 4
Program Objective Timeframe in
H.E. Status of Program Implementation
Projects that receive density bonuses shall maintain
affordability for the life of the project.

Program i.1.3. If new water is available for future
allocation, the City shall give preference to projects
meeting fair-share housing goals.
2015-2023, as
projects are
approved through
the Planning, Office
Completed.

Program i.1.4. Develop alternatives for long-term
water supply both within and outside the framework
of the Water Management District and the California
American Water Company.
2015-2023, develop
long-term water
alternatives
City has actively participated in a regional water
supply project. Water has yet to be secured.

Program i.1.5. The City is committed to ensuring
that there is enough water to meet the needs of all
new residential units within the 2015-2023 RHNA
period. California American Water (CalAm) is moving
forward with its Monterey Peninsula Water Supply
Project (MPWSP) consisting of slant intake wells, a
desalination plant and related facilities. The project EIR has been completed and CPUC approval is expected in
October 2016, prior to the December 2016 SWRCB
CDO deadline. Pipeline, slant well, and desalination
plant construction is expected to be completed in
2019. The City will continue its participation with the water authority and support the MPWSP.

Ongoing, 2015-2023 City has actively participated in a regional water supply project. Water has yet to be secured.

Program i.1.6. The City will continue to explore
alternatives other than density bonus allowed in state
law (Section 65915) to meet affordable housing goals.

Ongoing, 2015-2023 Progress continues - City rezoned industrial properties to allow multi-family housing
development.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 302, Packet Page 425 City of Monterey | Housing Element Update 2023-2031 Appendix E: 5th Cycle HE Accomplishments Public Review Draft – August 2023 E-25
Table E-1: Housing Programs Progress Report
This table describes progress of all programs in the City of Monterey Fifth Cycle Housing Element, including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element. 1 2 3 4
Program Objective Timeframe in
H.E. Status of Program Implementation
Program i.1.7. The City will deliver the adopted
housing element update to water and sewer service
providers within a month after adoption. When
submitting copies of housing elements to service
providers the City will include a summary /
quantification of the local government’s regional
housing need allocation and any other appropriate
housing information.

One month
following adoption
Completed - The City provided the adopted
housing element to water and sewer service
providers within a month from adoption.

Program i.2.1. Continue to provide a minimum of
20 percent permanently affordable low- and moderateincome units for any project with six or more new housing units or for condominium conversion. The
City will also explore means and methods to provide
incentives to include inclusionary units in new
apartment construction. Residential projects are
encouraged to satisfy the requirement by providing a
minimum of 20 percent inclusionary housing units onsite. 2015-2023, as
projects of 6 or
more units are
processed through
the Planning
Department
Progress continues – City ordinance requires
inclusionary housing and the City continues to
implement.

Program i.2.2. Investigate a community housing
trust to meet the need for workforce housing and
other housing needs.

Investigate a
community housing
trust by June 2017.
2018 - The City is in discussions with the County
to participate in a regional Housing trust to meet
the need for workforce housing and other housing
needs.
2019 – 2022: Future program.

Program j.1.1. Encourage Transit Priority Projects,
site designs, and use of building materials that promote energy efficiency.

Continue to
implement specific
plans.

Progress continues - All Specific Plans encourage
transit priority projects. Transit oriented projects
are being proposed.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 303, Packet Page 426 City of Monterey | Housing Element Update 2023-2031 Appendix E: 5th Cycle Housing Element Accomplishments Public Review Draft – August 2023 E-26 Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 304, Packet Page 427

APPENDIX
F

ADDITIONAL ANALYSIS AND

INFORMATION IN SUPPORT OF

HOUSING PROJECTIONS
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 305, Packet Page 428 City of Monterey | Housing Element Update 2023-2031
Appendix F: Additional Analysis and Information in Support of Housing Projections Table of Contents
Table of Representative Projects from Monterey County Jurisidictions...... F-1 Housing Precedent Projects in Monterey County ............................................. F-2 Letter of Interest from Monterey Peninsula Unified School District .......... F-17 Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 306, Packet Page 429 Name/Address APN
Site
Size
(acres)
Project Description Zoning Units Density
(du/ac) Location Status
Downtown
Van Buren Senior Housing Apartment Project
(669 Van Buren Street) 001-512-020-000 0.46 Construct new 19-unit senior affordable apartments. PC-D Downtown Specific Plan 19 41.30 Monterey Built El Cuartel Nuevo (595 Munras Avenue) 001-691-001 0.36
A mixed-use project of two stories with a shared parking lot. Lower level is retail space, while second floor is ten studio living units, each including a mezzanine.

C-2 Commercial 10 28.01 Monterey Built
475 Alvarado Street 001-574-026-000 0.14 Construct new 4-unit multi-family residential building. PC-D Downtown Specific Plan 4 28.57 Monterey Under Construction 476 Tyler Street Mixed Use 001-574-022 0.54
Convert portion of existing ground floor commercial space and one garage space in mixed-use building into one storage unit for use by on-site tenant renting and three new studio apartments. Twenty-four units in total developed on this site.

PC-D Downtown Specific Plan 24 44.44 Monterey Approved
Tyler and Pearl 001-574-015-000 0.11 Construction of 6 residential units. PC-D Downtown Specific Plan 6 54.55 Monterey Approved Average Density 38.893
Commercial corridors
Seaside Senior Living Project (550 Monterey
Road) 031-141-004 5.47
Construction of two buildings with parking lots, landscaping and existing small open space that would be left in a ruderal setting. The larger building will be assisted living facility and memory care facility for elderly.

CC Community Commercial 144 26.33 Seaside Under Construction 2000 Garden Road 013-312-008 1.79 Conversion of an existing two-story fitness building into a threestory apartment complex with total 66 studio units. I-R Industrial Administration and Research 66 36.87 Monterey Under Construction Veteran's Transition Center Supportive
Housing (229-239 Hayes Circle) 031-021-040 2.4
A 3-story, 71-unit housing structure giving homeless veterans a place to live in perpetuity with no transitional requirements. The proposal was approved by the city of Marina in November 2018 and construction is estimated to be completed around March 2024.

R-4 Multifamily Residential 71 29.58 Marina Approved
2200 North Fremont 013-171-014-000 0.92 Allow 42 dwelling units per acre density with advisory review of a new 3-story, 40-unit mixed-use building. PC-NF North Fremont Specific Plan 40 43.48 Monterey Approved 471 Wave Street 001-028-023-000 0.49 Conversion of warehouse to commercial condominiums and two detached residential condominium buildings on site. PC-LH Lighthouse Specific Plan 5 10.20 Monterey Approved Average Density 29.293
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 307, Packet Page 430 Monterey Housing Element
Precedents: High Density Housing Projects in Monterey County

APPENDIX F
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 308, Packet Page 431 Monterey
Address: 669 Van Buren Street
Prior Use: Residential
Units Developed: 19
Status: Complete
Site Area (Acres) 0.46 acres (20,038 SF)
Zone: PC-D Downtown Specific Plan
Project Density: 41.30 du/ac
On-site Parking: 10
Project Description: Removal of three buildings on Van Buren Street and 26 parking spaces to construct 19 units for extremely low, very low and lowincome seniors developed on City-owned land.

Site Location Building Exterior

COMPLETE
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 309, Packet Page 432 Monterey (continued)
Building Rendering
Building Interior Building Exterior
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 310, Packet Page 433 Monterey
Address: 595 Munras Avenue
Prior Use: Vacant
Units Developed: 10
Low Income
Moderate Income
1 1
Status: Built
Site Area (Acres) 0.357 acres (15,555 SF)
Height of Buildings: 35’-9” (2 stories)
Zone: C-2 “Community Commercial”
Project Density: 28.01 du/ac
On-site Parking: 22
Project Description: A mixed-use project of two stories with a shared parking lot. Lower level is retail space, while second floor is ten studio living units, each including a mezzanine.

Onsite Amenities: Private balconies, laundry room, dishwashers in unit, onsite parking, elevator on site.

Site Location Floor Plan

COMPLETE
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 311, Packet Page 434 Monterey (continued)
Building Interior
Elevation
Building Exterior
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 312, Packet Page 435 Monterey
Address: 476 Tyler Street
Prior Use: Commercial/residential
Units Developed: 24
Status: Approved
Site Area (Acres) 0.54 acres (23,522 SF)
Zone: PC-D Downtown Specific Plan
Project Density: 44.44 du/ac
On-site Parking: 17
Project Description: Convert portion of existing ground floor commercial space and one garage space in mixed-use building into one storage unit for use by on-site tenant renting and three new studio apartments. Twenty-four units in total developed on this site.

Site Location: Site Plan

APPROVED
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 313, Packet Page 436 Monterey (continued)
Building Rendering
Existing Building
Elevation
⾃
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 314, Packet Page 437 Seaside
Address: 550 Monterey Road
Prior Use: Residential Care Facility
Units Developed: 144
Status: Under Construction
Site Area (Acres) 3.2 acre (139,392 SF)*
Height of Buildings: 34’ (2 stories)
Zone: Community Commercial (CC)
Project Density: 26.28 du/ac
Project Description: Construction of two buildings with parking lots, landscaping and existing small open space that would be left in a ruderal setting. The larger building will be assisted living facility and memory care facility for elderly.

Onsite Amenities: On-site memory support, healthcare by licensed professionals and recreational activities along with cultural and therapeutic programs to seniors
Site Location Site Plan
Open Space 17,958 SF
Parking: 92

UNDER CONSTRUCTION
*Note: total land area is 5.47; buildable area is 3.2 acres Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 315, Packet Page 438 Seaside (continued)
Project Rendering
Project Rendering
Project Elevations
Project Rendering
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 316, Packet Page 439 Monterey
Address: 2000 Garden Road
Prior Use: Fitness Building
Units Developed (studio): 66
Status: Under Construction
Site Area (Acres) 1.79 acre (78,173 SF)
Height of Buildings: 34’ (3 stories)
Zone: I-R (Industrial Administration and
Research
Project Density: 37 du/ac
Open Space: 364 square feet per unit
Parking: 66
Project Description: Conversion of an existing two-story fitness building into a three-story apartment complex with total 66 studio units.

Onsite Amenities: Bike storage, pool deck, unit storage, balcony/patio for each unit, onsite parking, open space and shaded areas
Site Location
Site Plan

UNDER CONSTRUCTION
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 317, Packet Page 440 Monterey (continued)
Building Elevations
Floor PlanCouncil Regular Meeting, 9/19/2023, Item No. 19., Item Page 318, Packet Page 441 Marina
Address: 229-239 Hayes Circle
Prior Use: Former US Army Post
Units Developed: 71
Status: Approved
Site Area (Acres) 2.4 acres (104,365 SF)
Height of Buildings: 42’ (3 stories)
Zone: R-4 Multi-family Residential
Project Density: 29.58 du/ac Open Space: 32,135 SF
Parking: 60
Project Description: A 3-story, 71-unit housing structure giving homeless veterans a place to live in perpetuity with no transitional requirements. The proposal was approved by the city of Marina in November 2018 and construction is estimated to be completed around March 2024.

Onsite Amenities: Common room, computer room, manager’s office, pet wash, laundry facilities, meditation room, fitness room, playground and services office
Site Location Site Plan

APPROVED
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 319, Packet Page 442 Marina (continued)
Rendering Aerial View
Project Rendering Elevation
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 320, Packet Page 443 Monterey
Address: 2200 North Fremont Blvd
Prior Use: Vacant
Units Developed: 40
Low Income 8
Status: Under Construction
Site Area (Acres): 0.92 acre (40,175 SF)
Zone: Planned Community – North Fremont
(PC-NF)
Project Density: 43.47 du/ac
Parking: 73
Project Description: Construct a three-story mixed-use building with 40 apartment units and 6,000 square feet of commercial space Site Location Site Plan

UNDER REVIEW
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 321, Packet Page 444 Monterey (continued)
Building Rendering
Building Rendering
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 322, Packet Page 445

Monterey Peninsula Unified School District
PK Diffenbaugh, Superintendent
700 Pacific Street, Monterey, CA 93940
Phone: 831.645.1204 Fax: 831.649.4175

June 27, 2023
Re: Housing element program for ministerial permitting of employersponsored housing Dear Planning Director:

The Monterey Peninsula Unified School District (MPUSD) depends on highly qualified and diverse staff in order to meet our educational mission. One of the key constraints to attracting and retaining staff is Monterey County’s critical housing shortage and high cost of living. In order to be a proactive part of the solution to our housing crisis, MPUSD is interested in building housing for our employees on underutilized District owned property. I write to propose a program to make production of employer-sponsored housing more feasible on District owned property.

As you update your General Plan Housing Element for the 6th Cycle RHNA, state law requires you to review and mitigate governmental constraints to housing production. A critical governmental constraint is the uncertainty, delay, and expense of obtaining entitlements to build housing.

To address this constraint, the District proposes the adoption of a policy and a program for streamlined ministerial permitting of employer-sponsored housing.

Modeled after existing law AB 2295 (which was enacted in 2022 and becomes fully effective on January 1, 2024) and SB 35, the program would be implemented by an ordinance providing ministerial approval of multi-family infill housing that meets objective development and design review standards. This housing would be offered first to our employees, then to public agency employees, and then to members of the public in accordance with existing law.

The program would not apply to environmentally sensitive sites or sites with existing affordable housing or historic buildings.

Our proposal is set out in the sample language for a policy and program that could be incorporated into your forthcoming Housing Element update.

Ministerial permitting of infill housing through a well-defined, streamlined process would enable local educational agencies to make significant investments in housing to ensure the continued vitality of our educational program, our employees, and the community at large.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 323, Packet Page 446 We welcome the opportunity to discuss our proposal with you and address your questions.

Sincerely,
PK Diffenbaugh
Superintendent
Attachment: Proposed Employer-Sponsored Housing Policy and Program Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 324, Packet Page 447 Proposed Housing Element Policy
The City shall provide streamlined ministerial permitting for workforce housing on sites owned by a local education agency.

Proposed Implementing Program
The City shall enact an ordinance to provide for ministerial permitting of housing development projects on sites owned by a local education agency.

Qualifying projects: Projects shall meet the following qualifications:
• The project shall meet all requirements of AB 2295, including but not limited to:
§ The project is on an infill site as defined by AB 2295; § The project qualifies as an allowable use under AB 2295; § The project meets the density and height standards applicable under AB 2295; and
§ The project meets other objective development standards applicable under AB 2295.
• The project shall not be sited on habitat for endangered, rare or threatened species; farmland of statewide and local importance; wetlands; earthquake/ seismic hazard zones; federal, state, and local preserved lands, NCCP and HCP plan areas, and conservation easements; riparian areas; Department of Toxic Substances Control (DTSC) facilities and sites; landslide hazard, flood plains and, floodways; and wildfire hazard as determined by the Department of Forestry and Fire Protection. • The project does not require demolition of deed-restricted affordable units, rent-controlled units, or historic structures on a national, state, or local register and will not use a mobilehome site.
• The project does not require subdivision.

Application: The City shall notify a sponsoring employer within 60 days of submission whether or not an application meets objective zoning standards.

Absent such notice, applications shall be deemed to meet objective zoning standards.

Design Review: The City shall notify a sponsoring local education agency within 90 days of submission whether or not an application meets objective design review standards. Absent such notice, applications shall be deemed to meet objective design review standards.

Expiration: Approvals shall expire within 3 years unless vertical construction is in progress. A one-year extension may be granted if the employer sponsor demonstrates significant progress such as applying for a building permit.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 325, Packet Page 448

APPENDIX
G

OUTREACH

MATERIALS
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 326, Packet Page 449 City of Monterey 2023-2031 Housing Element Appendix G: Outreach Materials G-2
Table of Contents
Overview of Community Outreach ..................................................................................... G-1 Listening Session Summaries ....................................................................................... G-3 February 21, 2023 Joint Study Session Presentation....................................................G-11 Community Survey Mailer #1 and #2 ........................................................................ G-54 Pop-Up Outreach Summary....................................................................................... G-56 Community Survey Outreach Poster ........................................................................ G-57 Community Survey Report......................................................................................... G-61 June 20, 2023 Joint Study Session Presentation .........................................................G-235 Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 327, Packet Page 450 City of Monterey 2023-2031 Housing Element Appendix G: Outreach Materials G-1
Overview of Community Outreach
Community involvement is an integral component of the Housing Element process. The City of Monterey employed a range of public outreach and engagement strategies to solicit meaningful community input that has informed the 2023-2031 Housing Element. These strategies included targeted community listening sessions, decision-maker meetings, mailers, pop-up outreach at popular locations around town, an online survey, as well as ongoing communication with the community online at the project’s website. A summary of these engagement activities is described below.
“LISTENING SESSION” FOCUS GROUP DISCUSSIONS
At the outset of the process, the City hosted a series of listening sessions with property owners, community group representatives, local architects, and others to gather information on housing needs and preferences, as well as opportunities and constraints to residential development in Monterey (page G-1). In total, 12 listening sessions were held over the course of December 6-8, 2022, at the Monterey Conference Center.

Participants included representatives from Monterey Unified School District, Monterey Bay Aquarium, Naval Postgraduate School, U.S. Army (Defense Language Institute), hospitality and service employers, downtown property owners, architects who have designed/built ADUs in Monterey, and residents.

Participant feedback from these groups helped inform program of actions in the Housing Element, including Multi-Family Residential Overlay Amendments (Program 1-B), Permit Streamlining Pilot Project to fast-track infill housing development in core areas of the city (Program 1-D), and Education Workforce Housing Overlay to permit housing development by right up to 30 du/ac on urban infill sites owned by Monterey Peninsula Unified School District (Program 1-E). These programs tackle development feasibility and can be found in detail in Chapter 4 Housing Action Plan.

CITYWIDE MAILERS
The City sent postcards to every household in Monterey at two key points in the process to help to raise awareness of the project and the process and keep community members informed of status and key dates (page G-49). The mailers announced the launch of the community online survey that helped inform the sites inventory, as well as dates/times of community open house meetings.

POP-UP OUTREACH
Using a “go to them” strategy to raise awareness of the project and provide community members with additional in-person opportunities for input, City staff conducted pop up events in March and April 2023 at locations where community members gather, such as the Del Monte Farmer’s Market, Monterey Public Library, Captain + Stoker, and the Alvarado Farmer’s Market (page G-51). The events were structured as "chalk board chats" that provided community members with opportunities to learn about the project and share quick feedback about housing strategies and programs in the Housing Element. Pop-up outreach events targeted service and hospitality workers, as well as lower-income wage earners who work in Monterey to learn about their housing experiences. The events were also an opportunity to hand out postcards advertising the community online survey.

COMMUNITY ONLINE SURVEY
In order to gather community input to inform updates to the Housing Element, an online survey was conducted March 1, 2023, to April 30, 2023. The survey focused in particular on eight areas of Monterey with the greatest potential to accommodate new housing or other types of development in the coming years, and the questions were designed to solicit feedback that will help plan where new housing, employment, Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 328, Packet Page 451 City of Monterey 2023-2031 Housing Element Appendix G: Outreach Materials G-2
and shopping should be located and how to achieve other community objectives like improving transportation options, revitalizing older commercial streets, and preserving and enhancing neighborhood character. The survey provided residents with an opportunity to help identify and evaluate strategies for accommodating housing that informed the sites inventory and helped the City meet the legal requirements for the Housing Element. The survey was promoted via the City’s website and email blasts to community members, citywide mailers to all households in Monterey, as well as posters and newspaper (page G-52). In total, 1,068 respondents participated in the survey. A full survey report can be found on page G-56.

COMMUNITY OPEN HOUSE
A community open house will be held on August 7, 2023, within the 30-day public comment period on the Draft Housing Element, to provide community members with an opportunity to review and share input on the content of the Draft Housing Element. The event will feature a series of stations on topics in the Draft Housing Element including housing barriers, sites inventory, workforce housing, fair housing, and emergency preparedness and response. Participants will be able to visit as many stations as they’d like and provide input at each interactive activity. The meeting will also provide community members with an opportunity to comment on the scope and content of environmental issues that will need to be considered in the environmental impact report (EIR).

DECISION-MAKER REVIEW
A presentation was held on February 21, 2023, before the Planning Commission and City Council to report on the progress of Monterey 2031 project (page G-6). This presentation covered Monterey’s Regional Housing Needs Allocation (RHNA) requirement, the housing demand versus water supply, and overview of Housing, Safety, and Land Use Elements. Further, a series of study sessions before the Planning Commission and City Council were held on June 13 and 20, 2023, as the components of the Housing Element were developed and refined, to provide additional opportunity for public input and decisionmaker review (page G-230). These presentations introduce several areas of the City with the greatest potential to accommodate new housing, an assessment of the capacity for new housing in each area, based on State site suitability guidelines and potential strategies to facilitate development in the area.

WEB AND SOCIAL MEDIA
A webpage was created on Have Your Say Monterey website to serve as a one-stop information portal for the Housing Element Update. The webpage was regularly updated throughout the course of the project to provide contextual information on legal requirements and key concepts and housed draft documents for public review. Updated content was posted to the City website and on social media regularly to keep the community informed of progress.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 329, Packet Page 452

MEMORANDUM
To: Christy Sabdo, City of Monterey
From: Karen Chavez, Planner, and Andrew Hill, Principal Re: Listening Sessions Summaries
Date: January 6, 2023
Dear Christy:

This memo summarizes the fourteen listening sessions held between December 6, 2022, to December 8, 2022. In these summaries, I highlighted constraints and opportunities heard by the participants in the session, without attributing them to a specific person. I am happy to make further edits based on City input. Thank you!
Session #1 December 6, 2022, 9am
A major challenge and overall theme of the listening sessions is the lack of water supply available for residential development. Opportunities mentioned by participants include research of local case studies of workforce housing, such as Pebble Beach and Cannery Row, looking at various nontraditional alternatives such as tiny homes and assisted living quarters, as well as the reuse of Ford Ord property. North Fremont can also be possible opportunity site for housing, though participants expressed not wanting community to feel like they have been targeted or dumped on. Participants expressed curiosity in state and federal funds to bridge the gap in the housing market and the vulnerability of the city. Participants also stressed the importance of putting faces to the people that are in most need of affordable housing, such as hospitality and service workers.

Session #2 December 6, 2022, 10am
Participants outright mentioned the water supply is a major constraint in the development of housing. Other challenges Monterey faces are wildfire and sea level rise hazards. Participants mentioned various housing opportunities such as locations near North Fremont, Franklin Street, and the Downtown core. They mentioned various living trends that can be opportunities, such as co-living, age-in-place, intergenerational households, and junior accessory dwelling units.

Participants hope to desegregate income groups and research further inclusionary requirements versus inclusionary incentives. Lastly, participants suggested having online survey being distributed via flyers for residents to fill out their thoughts and concerns on housing.

Session #3 December 6, 2022, 11am
Participant in this session mentioned various constraints to housing in Monterey, which include the traffic (near Downtown), patterns of roadway, and circulation in general. Participant expressed interest in developing two properties along Del Monte Avenue, which could be suitable for marketrate apartment for demographics in need, specifically nurses, and doctors at CHOMP, students and faculty at the Naval Postgraduate School, students at Middlebury Institute, and folks that live in Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 330, Packet Page 453 - 2 -
Downtown. Participant expressed opportunities for housing all over Monterey, such as the Bank of America building, McGraw Hill, land around Ryan Ranch, North Fremont, and Old Eddy’s restaurant.

Session #4 December 6, 2022, 1pm
Participants in this session heavily emphasized that “water supply, density, and property” were the biggest constraints to housing development. Participants noted that housing is needed the most by people who can’t afford to live where they grew up, folks living on fixed-incomes, and hospitality and service workers. When asked where opportunities for housing are, some suggested property near North Fremont specifically near Motel 6 and CVS, hangars by the airport that could potentially be converted to residential, near car wash, and on underutilized site by McDonald’s. Participants also mentioned a variety of methods to either incentivize housing or inform the community. These suggestions include retrofitting and electrification [of existing housing stock], lot splits, having contractors teach the public about development, housing programs such as co-living situations with single room and a shared kitchen, as well as sending flyers to residents on various housing solutions.

Session #5 December 6, 2022, 2pm
Participants in this session recurringly noted the bar is too low for appeals in the development process, which add barriers to housing. Participants also mentioned that the point of entry for housing in Monterey is high because of the military population that tend to bring the cost of housing up. Participants mentioned the amount of youth homeless population in the Monterey, which led to the conclusion that some type of state and local partnership is needed to combat this.

Participants also noted parking is an issue for residential development, particularly for areas that have little parking left. Following this, participants expressed a variety of opportunities for housing development, such as enhancing buildings that are already in use, setting objective design standards, and minimizing the number of hearings for development. Additionally, when asked where they saw areas of opportunity in Monterey, participants expressed lands down by the cemetery and the sport center, as well as the potential to upzone and develop the Del Monte Shopping Center. Participants also mentioned that development of accessory dwelling units can be more flexible, specifically for existing non-conforming structures. Lastly, participants expressed how expensive it is to build a residential unit, expressed interest in the City of Salinas’ blue code committee that the City can explore and emphasized the amount of additional grocery, fuel, and site drainage that is needed to develop residential units. A participant mentioned agriculture housing in the City of Greenfield that can serve as an example of workforce housing.

Session #6 December 6, 2022, 3pm
In this session, the participant mentioned that ethnic minorities such as Latino and African Americans are special needs groups in Monterey. The participant also mentioned major constraints to housing such as the cost of living and wages, lack of housing stock for service workers (teachers and folks working at CHOMP), and the linguistic isolation people may face in the community.

Participant also mentioned the suggestion to explore a vacancy tax in the city as well.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 331, Packet Page 454 - 3 -
Session #7 December 6, 2022, 7pm
Participants in this session expressed various communities that need housing in Monterey, such as people who work in the hospitality sector, older folks who no longer can afford to live here, and younger people (about mid 30’s) who cannot afford a home. Participants also expressed the difficulty of hiring workers because they cannot afford to live in Monterey, or their commute is too long/far. Participants conveyed multiple opportunities and alternatives to housing, such as exploring the Ford Ord Reuse Plan, developing accessory dwelling units, live-work spaces (such as the Cannery Row hospitality apartments), and banning Airbnb. Participants also showed opportunity around the Lake El Estero because it is so close to transit, underutilized parcels next to McDonalds, as well as Garden Road near the airport. Lastly, participants communicated that Monterey needs mixed-income housing, corrective housing, housing with some character, and starter homes. A participant mentioned the housing in East Garrison as an example to look at.

Session #8 December 7, 2022, 9am
In this session, participants expressed various constraints in the housing market in Monterey. These constraints include the reoccurring water supply, lack of sense of urgency/no sense of completion, “red tape,” discretionary review process, and highly historic location, which limits development.

Additional challenges include multiple hearings from City Council and Planning Commission, fees by the CDWF, City and County, as well as the process of California Environmental Quality Act (CEQA). Participants frequently mentioned the need to up the density in Monterey to attain the RHNA numbers, as well as focusing on Garden Road, Ryan Ranch, and Ford Ord to put residential development. Participants did comment that the City of Monterey staff is very friendly.

Session #9 December 7, 2022, 11am
Participants mentioned Monterey needs workforce housing for hospitality workers, people who need to commute to Monterey for work, teachers, as well as faculty at the Naval Postgraduate School/Defense Language Institute. Participants expressed various opportunities to develop housing in Monterey, such as encouraging major employers to partner with developers to develop housing, offering underused hotel units for employees, accessory dwelling units provided by churches, and encouraging Monterey Peninsula College to build housing. Participants also mentioned the idea the City spearheading a matching system for roommates, for those who need a room and residents who have available bedrooms in their home. Participants listed Cass Street, Lake El Estero, Garden Road, North Fremont, and Lighthouse for locations for housing.

Participants also expressed interest in exploring the development of commercial uses to residential units. There was enthusiasm about revitalizing the North Fremont area and revamping business around the area. Participants expressed residents may fear not knowing what development could look like, to which other participants mentioned there could be renderings made and visual preference survey sent beforehand.

Session #10 December 7, 2022, 1pm
Participants noted that there is a need for affordable, workforce housing, which prompted a discussion on what constitutes or defines “workforce housing.” Following this, participants emphasized that low-income households are most in need of housing in Monterey. Participants described MidPen Housing’s activity in the City of Monterey, detailing the process of developing a Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 332, Packet Page 455 - 4 -
19-unit project for seniors. Participants described the hurdles in developing housing, such as the environmental constraints, funding sources, parking, stormwater management, and various documents needed for due diligence. Participants mentioned that City of Santa Cruz has a loan program for homeowners wanting to build an accessory dwelling unit, which could facilitate development and could be an opportunity for Monterey. Participants also suggested looking into housing fund examples from Capitola and Santa Cruz.

Session #11 December 7, 2022, 3pm
Participants in this session echoed the need for housing for hospitality and service workers, the challenge of traffic with additional units, and sea level rise. Participants also discussed what would climate change look for the city, such as flooding near the coast, looking out for wildfire zones, and thinking about alternative evacuation routes. Participants suggested informing the community beforehand about natural hazards and what to do if they arise. Throughout the conversation, participants conveyed many opportunities they see for housing in Monterey, like revamping the Highway 68 Specific Plan, building in Downtown and Lighthouse, and partnering with major employers of the area. Participants also mentioned developing pre-approved ADU plans, setting objective standards, and documenting where water credits are available in the City. Lastly, participants suggested there be a focus group held for people who work in the City of Monterey but don’t live here, for additional insight into housing needs.

Session #12 December 8, 2022, 9am
Participants discussed various challenges to housing that were specific to their industry. Though CHOMP does provide some temporary units for their employees, it is not meant for long-term, and it is not enough for the demand. Again, various participants echoed the theme that workers are not able to afford to live in Monterey. Participants expressed the frustration of recruitment and retainment of employees because of housing; moreso, because it is undermining the economic foundation of the City and region. Similarly, it is difficult to retain teachers as there is about 20% turnover year to year in the school district. School district is looking into purchasing land to break into the housing market, though it is proving to be difficult. Many students and families in the school district are facing homelessness and overcrowding. A participant suggested a safe parking program, where families can park their car safely between the hours of 7am to 7pm, which can respond to challenges of homeless youth. Participants frequently reiterated the importance of housing to employees’ mental health and expressed urgency for the City’s housing crisis.

Participants conveyed multiple opportunities for housing, such as higher density, developing in urban cores, creating some type of matchmaking for eligible seniors or singles who need an open room, as well as pre-approved accessory dwelling unit plans by the City, and converting commercial to residential use.

Session #13 December 8, 2022, 10am
Participants had questions about the process of RHNA allocation for Monterey and if the water supply would be available for the amount of housing units Monterey has to plan for. Participants mentioned that Navy doesn’t offer housing, so many personnel ends up living far and commuting into the Peninsula. Participants did mention that military personnel can live at La Mesa and Ord Military Communities, pending availability, and usually move from another location to the Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 333, Packet Page 456 - 5 -
Monterey Peninsula area for their line of work. Participants also emphasized two major concerns from the session, which include sea level rise and the need for a shelter for men.

Session #14 December 8, 2022, 11am
In this session, the participant echoed many of the themes heard throughout the sessions, such as how difficult it is to afford a place to rent or own in Monterey. Many hospitality workers in general often commute long and from far because of the cost of living. Participant mentioned various opportunities to create housing, such as churches with large parking lots, shopping centers that may be abandoned or underutilized, as well as underused office/commercial that can be converted to residential. Participant was fairly on board with accessory dwelling units, though did express concern over parking.

Overall Listening Sessions Summary
The Community Development Department and planning consultant, Dyett and Bhatia, held fourteen listening sessions, between December 6, 2022 and December 8, 2022, to connect with community members and provide a forum for members to learn about the Monterey 2031 General Plan Update. Held at the Monterey Conference Center, each listening session garnered discussion on topics such as housing, land use, community character, climate resilience, and emergency preparedness. Approximately fifty-six (56) individuals, including community members, professionals, land holders, housing developers and service providers, property managers, on-profit leaders, military liaisons, and interested residents participated in the sessions. The summaries below highlight the constraints and opportunities heard by the participants in each session.

Recordings of the session are available in the title for each session.

Overall, the following are common themes/input expressed during the sessions:

Needs:
• State and local partnerships are needed to combat the youth homeless population in the Monterey.
• Housing is needed the most by people who can’t afford to live where they grew up, people living on fixed-incomes, and hospitality and service workers. • Addressing the need for affordable housing for hospitality and service workers. • Increase density in Monterey to attain the RHNA numbers. • Participants hope to desegregate income groups and research further inclusionary requirements versus inclusionary incentives.
• Participants mentioned Monterey needs workforce housing for hospitality workers, people who need to commute to Monterey for work, teachers, as well as faculty at the Naval Postgraduate School/Defense Language Institute.
• Need for mixed-income housing, corrective housing, housing with some character, and starter homes. A participant mentioned the housing in East Garrison as an example to look at. • Participants suggested raising awareness in the community about natural hazards and what to do if they arise.
• Need housing in Monterey for people who work in the service industry and hospitality sector, older people who no longer can afford to live here, and younger people (about mid Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 334, Packet Page 457 - 6 -
30’s) who cannot afford a home. Emphasis that low-income households are most in need of housing in Monterey.

Challenges/Constraints:
• Lack of water supply is a major constraint to development of housing. In addition to water supply, density and property were noted as large constraints to housing development.
• Perceived lack of sense of urgency on behalf of the City; no sense of completion. • Impacts to traffic (near Downtown), roadway patterns, and circulation in general. • Discussion of what climate change would look like for the city, such as flooding near the coast, sea level rise, looking out for wildfire zones, and thinking about alternative evacuation routes.
• Major constraints to housing include cost of living and wages, lack of housing stock for service workers (teachers and people working at CHOMP), and the linguistic isolation people may face in the community.
• Difficulty of hiring workers because they cannot afford to live in Monterey, or their commute is too long/far.
• Participants expressed residents may fear not knowing what development could look like, to which other participants mentioned there could be renderings made and visual preference survey sent beforehand.
• Hurdles to developing housing:
o Parking requirements, particularly in areas that have little parking left o “Red tape”; discretionary review process
o Multiple hearings from City Council and Planning Commission, fees by the California Department of Fish and Wildlife (CDFW), City and County, as well as the process of California Environmental Quality Act (CEQA). o Highly historic location, which limits development
o Bar is too low for appeals in the development process o Expensive to build a residential unit
o The additional amount of amenities needed when developing residential housing, such as additional grocery stores, more fuel stations, and site drainage. o Environmental constraints, funding sources, parking, stormwater management, and various documents needed for due diligence.

Opportunities:
• Non-traditional alternatives for housing such as tiny homes and assisted living quarters. • Enhance buildings that are already in use to accommodate housing. • Various living trends that can be opportunities, such as co-living, age-in-place, intergenerational households, and junior accessory dwelling units.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 335, Packet Page 458 - 7 -
• Encouraging major employers to partner with developers to construct housing, offering underused hotel units for employees, accessory dwelling units provided by churches, and encouraging Monterey Peninsula College to build housing. • Interest in providing market-rate apartments for demographics in need, specifically nurses, and doctors at CHOMP, students and faculty at the Naval Postgraduate School, students at Middlebury Institute, and folks that live in Downtown. • Local case studies of workforce housing, such as Pebble Beach and Cannery Row. • Live-work spaces (such as the Cannery Row hospitality apartments). • Developing additional accessory dwelling units.
• Exploring the development of commercial uses to residential units. • The idea of the City spearheading a matching system for roommates, for those who need a room and residents who have available bedrooms in their home. • Streamline housing development project in Monterey:
o Setting objective design standards and minimizing the number of hearings for development.
o Accessory dwelling units can be more flexible, specifically for existing nonconforming structures. o Agriculture housing in the City of Greenfield that can serve as an example of workforce housing.
• Potential opportunity sites for housing:
o Along North Fremont Street, including the site of former Eddie’s restaurant (2200 North Fremont), near Motel 6, CVS and car wash; and revamping businesses in this location as well
o the Downtown core (including Franklin Street, Bank of America building, underutilized sites by McDonalds and Lake El Estero; and the Monterey Sports Center)
o Garden Road
o McGraw Hill
o Convert hangers at the airport to residential
o Land around Ryan Ranch
o Reuse of Fort Ord property
o Potential to upzone and develop the Del Monte Shopping Center o Cass Street
o Lighthouse Avenue
o Revamping the SR68 Plan
Other Suggestions:
• City should look into state and federal funds to bridge the gap in housing market and vulnerability of the City.
• Participants also mentioned a variety of methods to either incentivize housing or inform the community. These suggestions include retrofitting and electrification [of existing housing stock], lot splits, having contractors teach the public about development, housing programs such as co-living situations with single room and a shared kitchen, as well as sending flyers to residents on various housing solutions.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 336, Packet Page 459 - 8 -
• Participants expressed interest in the City of Salinas’ Blue Zones Project and suggested the City explore this type of opportunity in the City.
• Participants mentioned that City of Santa Cruz has a loan program for homeowners wanting to build an accessory dwelling unit, which could facilitate development and could be an opportunity for Monterey. Participants also suggested looking into housing fund examples from Capitola and Santa Cruz.
• Suggestion to explore a vacancy tax.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 337, Packet Page 460 City of Monterey
City Council / Planning Commission Joint Study Session
Monterey 2031 Project Update February 21, 2023
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 338, Packet Page 461 Important Moment
When we look back in Monterey’s
history, there are moments where the
City defined its future.

This is one of those moments.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 339, Packet Page 462 Why?
• Unprecedented housing need
• Plan for 3,654 housing units
• Climate Change
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 340, Packet Page 463 Regional Housing Needs
Assessment
AMBAG Regional Approach
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 341, Packet Page 464 RHNA Allocation – Regional Approach
Pop. (2021) RHNA (6th Cycle)
Monterey 29,874 3,654
Santa Cruz 61,950 3,736
Monterey’s #s Are the Result of a
Regional Methodology
- Housing (202)
- Jobs (428)
- Jobs/Housing Imbalance (1,396)
- Transit (87)
- Resiliency (48)
- Racially Concentrated Areas (1,493)
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 342, Packet Page 465 RHNA Allocation – Regional Approach
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 343, Packet Page 466 Elephant in the Room
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 344, Packet Page 467 Adequate water supply for RHNA?
MPWMND Water Demand Forecast does not
include the City’s full RHNA allocation.

RHNA 2045 MPWMD Water
Demand Projections
Not included in MPWMD
water projections
7,819 new residents 1,469 new residents 6,350 new residents 4,520 new jobs
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 345, Packet Page 468 6th Cycle Housing Element Requirements
• The State, HCD, does not require jurisdictions to act as a developer and construct 3,654 housing units by
2031.
• The City is only required by the State to accommodate this increased capacity of housing units in the 6th Cycle Housing Element update.
• However, the 6th Cycle Housing Element requirements
are in response to California’s housing challenges.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 346, Packet Page 469 California Housing Challenges
• Not enough housing being built
• Increased inequality and lack of opportunities
• Too much of people’s incomes going toward rent
• Fewer people becoming homeowners
• Disproportionate number of Californians
experiencing homelessness
• Many people facing multiple, seemingly
insurmountable barriers – beyond just cost – in
trying to find an affordable place to live
Source: HCD
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 347, Packet Page 470 City’s Strategic Priorities - 2023
Affordable Housing
• Value Driver #5: Champion regional and local efforts to secure adequate, affordable, and sustainable water sources for the city, now and into the future.

Water Supply
• Value Driver #6: Support efforts and policies that provide equitable access to affordable housing in Monterey and the region.

Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 348, Packet Page 471 Presentation Outline
§ What is the Monterey 2031 Project?
§ Overview of Housing, Safety, and Land Use Element
Requirements
§ Approach to the project
§ Timing and next steps
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 349, Packet Page 472 What is the Monterey
2031 Project?
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 350, Packet Page 473 Project Components
Housing Element
Safety Element
Land Use Element
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 351, Packet Page 474 Holistic Approach
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 352, Packet Page 475 Water Supply
§ Water supply is a critical
impediment to new housing
§ Supply constraint addressed
through a separate process
§ Objective:
§ Update the General Plan to
satisfy legal requirements and
have it ready to implement
when water becomes
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 353, Packet Page 476 Housing, Safety, Land Use
Element Requirements
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 354, Packet Page 477 What is a Housing Element?
§ State-mandated element
§ City’s plan for addressing
local housing needs
§ Updated on an 8-year cycle
§ Subject to statutory
requirements
§ Mandatory review by Dept.

Housing & Community
Development (HCD)
required
elements
8 Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 355, Packet Page 478 Key Housing Element Components
§ Inventory of available sites
for housing
§ Projection of realistic
capacity
§ Assessment of housing
needs, constraints, and “fair
housing” issues
§ Program of implementing
actions
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 356, Packet Page 479 What is RHNA?
§ RHNA = Regional Housing Needs Allocation
§ Total number of new housing units that
City must plan to accommodate for 2023 –
2031 cycle
§ Separated into four affordability levels:
§ Very Low < 50% area median income
(AMI)
§ Low 50 – 80% AMI
§ Moderate 80 – 120% AMI
§ Above Moderate > 120% AMI
§ Monterey County AMI = $90,100 (family of 4)
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 357, Packet Page 480 RHNA Process
§ State determines the housing need
for each region of California, based
on projected population and other
factors (rates of vacancy,
overcrowding, cost-burden)
§ For the Monterey Bay Area region,
AMBAG then allocates housing
targets for each jurisdiction, based
on factors such as access to jobs,
good schools, healthy environment
§ AMBAG developed methodology
and allocations with input from
jurisdictions between 2021 and
2022
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 358, Packet Page 481 RHNA Allocation
Monterey RHNA Allocations

CYCLE VERY LOW INCOME
(<50% of Area
Median Income)

LOW INCOME
(50-80% of Area Median
Income)

MODERATE INCOME
(80-120% of Area
Median Income)

ABOVE MODERATE INCOME
(>120% of Area
Median Income)
TOTAL
Sixth 2023-31 1,177 769 462 1,246 3,654
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 359, Packet Page 482 Accommodating RHNA
§ City is required to zone for
sufficient capacity to meet
RHNA
§ Special requirements for
lower income RHNA sites
§ Site size parameters
§ Absence of environmental
constraints
§ Proximity to transit
§ Availability of utilities
P a c i f i c O c e a n
Monterey
Regional
Airport
Sand
City
Pacific Grove
ÔA
A§
ÔA A§
ÔA
A§
1 2
4 5
3 3
3 1
4 2
5 Jacks
Ballpark
Oak Newton
Park Hilltop Park
And Center
Via Paraiso
Park
Quarry Park
U.S. Navy
Beachfront
San Carlos
Beach Park
Soldier Field
Larkin
School Park
Veterans
Memorial Park
Don Dahvee
Park
Iris Canyon
Park
Del Monte Beach
Monterey
State Beach
Fisherman's
Flat Greenbelt
El Estero
Park
Old Capitol
Site
Monterey
City Hall
W Franklin St Tyler St
Prescott Ave
Fairground Rd
Ab rego St
Cam
Agu ajito
Casa Ve rde Way
N Fremont St
Montecito Ave
Garden Rd
El Dorado St
Mark Thomas Dr
Fremont St
Glenwood Cir
Sce n icDr
Lighthouse Ave
Agu ajito Rd
Munras Ave
Pacific St
Mar Vista Dr
Del Monte Ave
Skyline Dr
Naval
Postgraduate
School
Naval
Postgraduate
School
Naval
Postgraduate
School
Presidio of
Monterey
Presidio of
Monterey
Fairgrounds
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 360, Packet Page 483 Multi-Pronged RHNA Strategy
§ Infill development
§ Housing at Fort Ord and Ryan
Ranch
§ ADUs/JADUs
§ Senate Bill 9 housing
§ Congregational overlay
§ To meet RHNA obligations Monterey will need to explore various strategies
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 361, Packet Page 484 Safety Element Update
§ Update of the Housing Element triggers
statutory requirement to update the
Safety Element
§ Must incorporate newer data on natural
hazards and climate resilience,
additional analysis of emergency access
§ Countywide Local Hazard Mitigation Plan
includes additional required
information, which can be referenced
and incorporated
§ Supplement with GIS-based analysis of
evacuation routes and propose new
policies
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 362, Packet Page 485 Land Use Element Update
§ Review and
update land
use standards
and policies as
needed to
accommodate
RHNA plan
A§
A»
AÔ
A§
AÔ
A§
A§
AÔ
P a c i f i c O c e a n
Monterey
Regional
Airport
Carmel
By-The-Sea
Sand
City
Seaside
Pacific Grove
Del Rey Oaks
Jacks
Ballpark
Oak Newton
Park Hilltop Park
And Center
Via Paraiso
Park
Ryan Ranch
Community Park
Quarry Park
U.S. Navy
Beachfront
San Carlos
Beach Park
Soldier Field
Larkin
School Park
Veterans
Memorial Park
Don Dahvee
Park
Iris Canyon
Park
Del Monte Beach
Monterey
State Beach
Fisherman's
Flat Greenbelt
El Estero
Park
Vista Point
Greenbelt
Monterey
City Hall
W Franklin St Tyler St
Prescott Ave
Fairground Rd
Ragsdale Dr
Abrego St
Cam Aguajito
Casa Ve rde Way
N Fremont St
Montecito Ave
Garden Rd
El Dorado St
Mark Thomas Dr
Upper Ragsdale Dr
Fremont St
Glenwood Cir
Sce n icDr
Lighthouse Ave
Aguajito Rd
Munras Ave
Pacific St
Mar Vista Dr
Del Monte Ave
S Boundary Rd
Skyline Dr
Naval
Postgraduate
School
Naval
Postgraduate
School
Naval
Postgraduate
School
Presidio of
Monterey
Presidio of
Monterey
Figure X.X: General Plan Land Use
Data Source: City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022. 0 ¼ ½ 1
Miles
C:\Users\gisdb.DB\Desktop\GPLU.mxd
Very Low Density Residential
Low Density Residential
Medium Densiity Residential
Commercial
Industrial
Open Space
Public/Semi-Public
Special Planning Area
City of Monterey
Sphere of Influence
Neighboring City
Park
Water
Fairgrounds
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 363, Packet Page 486 Community Engagement
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 364, Packet Page 487 Community Engagement Objectives
§ Inform, engage, and solicit input
from a broad range of community
members throughout process
§ Raise awareness of Housing Element
requirements in the community
§ Use input received to shape housing
strategies, ensuring content reflects
community values and priorities
§ Provide opportunities for
community review and refinement
Build trust
with
community Empower
community
members
Remove
barriers
to engagement
Public
Outreach
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 365, Packet Page 488 Community Engagement Methods
§ Community Listening
Sessions
§ Pop Up Outreach
§ Youth-led survey
§ Community Workshops
§ Interactive, online survey
§ Web and social media
engagement
§ Public hearings
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 366, Packet Page 489 Community Listening Sessions - Recap
§ Held December 6-8th
at Conference Center
§ Participation from a
wide variety of
groups: architects,
builders,
neighborhood
residents, major
landowners, major
employers, and others
Key themes:
§ Monterey's housing needs are
broad - hospitality/service workers,
homeless youth, young families,
seniors
§ Lack of adequate housing
undermines economic vitality,
community health, and social fabric
§ Regulations and process
requirements are getting in the way
§ Need to build an understanding in
the community of what it takes to
get housing built
§ Urgent action is required to jump
start housing construction
§ Strategy should prioritize "low
hanging fruit" AND plan for longer
term
§ Regional cooperation needs to be
part of the housing solution
§ In fill development is an opportunity
to revitalize older commercial areas
§ Parking in neighborhoods and
commercial areas must be addressed
as we plan for more housing
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 367, Packet Page 490 Outreach Underpinned by Analysis
§ Site feasibility analysis
§ Assessment of
constraints to housing
development
§ Emergency evacuation
capacity analysis
§ Best practices and
precedent projects to
help visualize
possibilities
A§
A»
AÔ
A§
AÔ
A§
A§
AÔ
Pacific Ocean
Monterey
Regional
Airport
Carmel
By-The-Sea
Sand
City
Seaside
Pacific Grove
Del Rey Oaks
Del Monte
Beach
Monterey
Harbor
Jacks
Ballpark
Oak Newton Park Hilltop Park
And Center
Via
Paraiso
Park
Ryan Ranch
Community Park
Quarry
Park
U.S. Navy
Beachfront
San Carlos
Beach Park
Soldier
Field
Larkin School Park
Veterans
Memorial Park Huckleberry
Hill Nature
Preserve
Don Dahvee Park
Iris
Canyon
Park
Del Monte
Beach
Monterey
State Beach
Fisherman's
Flat Greenbelt
El Estero
Park
Vista Point
Greenbelt
Monterey
City Hall
W Franklin St Tyler St
Prescott Ave
Fairground Rd
Ragsdale D r
Ab rego St
Cam Aguajito
Casa Verde Way
N Fremont St
Montecito Ave
Garden Rd
El Dorado St
Mark Thomas Dr
Upper Ragsdale Dr
Fremont St
Glenwood Cir
Sc en icDr
Lighthouse Ave
Agu ajito Rd
Munras Ave
Pacific St
Mar Vista Dr
Del Monte Ave
S Boundary Rd
Skyline Dr
Naval
Postgraduate
School
Naval
Postgraduate
School
Naval
Postgraduate
School
Presidio of
Monterey
Presidio of
Monterey
Figure 7: Opportunity Sites by Tier
Data Source: City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022. 0 ¼ ½ 1
Miles
J:\GISData\584 Monterey GP\GIS\Projects\ECR\Opportunity Sites by Tier.mxd Potential Opportunity Sites
Tier 1
Tier 2
Tier 3
Tier 4
Tier 5
Pipeline Projects
City of Monterey
Sphere of Influence
Parks and Recreation
Water
Fairgrounds
Tier 1: Vacant Sites outside of environmentally contrained areas; Very Low AV Ratio Low AV Ratio or Low FAR sites outside of environmentally constrained areas Tier 2: Medium Low AV Ratio and Medium Low FAR (both) sites outside of environmentally constrained areas Tier 3: Vacant sites inside environmentally constrained areas Tier 4: Very Low AV Ratio, Low AV Ratio or Low FAR sites inside environmentally constrained areas Tier 5: Medium Low AV Ratio and Medium Low FAR (both) sites inside environmentally constrained areas Very Low AV Ratio = 0.0-0.5, Low AV Ratio = 0.51-0.7, Medium Low AV Ratio = 0.71-0.99 Low FAR Ratio = 0.0-0.2, Medium Low FAR Ratio = 0.21-0.4 AV Ratio = Improvement Value/ Land Value
FAR = Building Square Foot/ Lot Square Foot
Council Regular Meeting, 9/19/2023, Item No. 19., Item Page 368, Packet Page 491 Analysis of Development Potential
A§
»A
ÔA
A§
ÔA
A§
A§
ÔA
P a c i f i c O c e a n
Monterey
Regional
Airport
Carmel
By-The-Sea
Sand
City
Seaside
Pacific Grove
Del Rey Oaks
Via Paraiso
Park
Ryan Ranch
Community Park
U.S. Navy
Beachfront
Veterans
Memorial Park
Del Monte Beach
Monterey
State Beach
Fisherman's
Flat Greenbelt
El Estero
Park
Old Capitol
Site
W Franklin St Tyler St
Prescott Ave
Fairground Rd
Ragsdale D r
Ab rego St
Cam Agu ajito
Casa Ve rde Way
N Fremont St
Montecito Ave
Garden Rd
El Dorado St
Mark Thomas Dr
Upper Ragsdale Dr
Fremont St
Glenwood Cir
Sce n icDr
Lighthouse Ave
Agu ajito Rd
Munras Ave
Pacific St
Mar Vista Dr
Del Monte Ave
S Boundary Rd
Skyline Dr
Monterey
City Hall
Naval
Postgraduate
School
Naval
Postgraduate
School
Naval
Postgraduate
School
Presidio of
Monterey
Presidio of
Monterey
Figure 1: Vacant Land
Data Source: City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022. 0 ¼ ½ 1
Miles
J:\GISData\584 Monterey GP\GIS\Projects\ECR\VacantSites.mxd Vacant Land
City of Monterey
Sphere of Influence
Neighboring City
Park
Water
Fairgrounds
A§
»A
ÔA
A§
ÔA
A§
A§
ÔA
P a c i f i c O c e a n
Monterey
Regional
Airport
Carmel
By-The-Sea
Sand
City
Seaside
Pacific Grove
Del Rey Oaks
Del Monte
Beach
Monterey
Harbor
Jacks
Ballpark
Oak Newton Park Hilltop Park
And Center
Via
Paraiso
Park
Ryan Ranch
Community Park
Quarry
Park
U.S. Navy
Beachfront
San Carlos
Beach Park
Soldier
Field
Larkin School Park
Veterans
Memorial Park Huckleberry
Hill Nature
Preserve
Don Dahvee Park
Iris
Canyon
Park
Del Monte
Beach
Monterey
State Beach
Fisherman's
Flat Greenbelt
El Estero
Park
Old Capitol Site
Monterey
City Hall
W Franklin St Tyler St
Prescott Ave
Fairground Rd
Ragsdale D r
Ab rego St
Cam Agu ajito
Casa Ve rde Way
N Fremont St
Montecito Ave
Garden Rd
El Dorado St
Mark Thomas Dr
Upper Ragsdale Dr
Fremont St
Glenwood Cir
Sce n icDr
Lighthouse Ave
Agu ajito Rd
Munras Ave
Pacific St
Mar Vista Dr
Del Monte Ave
S Boundary Rd
Skyline Dr
Naval
Postgraduate
School
Naval
Postgraduate
School
Naval
Postgraduate
School
Presidio of
Monterey
Presidio of
Monterey
Figure X.X: AV Ratio
Data Source: City of Monterey, 2022; Monterey County GIS, 2022; Dyett & Bhatia, 2022. 0 ¼ ½ 1
Miles
J:\GISData\584 Monterey GP\GIS\Projects\ECR\Figure 3 AV Ratios.mxd Very Low AV Ratio (0 - 0.5)
Low AV Ratio (0.51 - 0.7)
Medium Low AV Ratio (0.71 - 0.99)
Improvement Value not available
City of Monterey
Sphere of Influence
Parks and Recreation
Water
Fairgrounds
*AV Ratio is calculated as a ratio of improvement value over land value. For this analysis, AV Ratio for commercial, office, industrial, and mixed uses are analyzed.

Monterey City CouncilSeptember 19, 2023

Monterey City Council
September 19, 2023