Monterey City Council
August 5, 2025

water rates. Monterey residents already face some of the highest water costs in the country. Those costs are borne most heavily by our seniors on fixed incomes, young families, and workers in our hospitality and service industries. These are the very people who keep our community running. Any decision that contributes to rising water rates must be grounded in accurate, transparent analysis.

This issue is particularly urgent as the City of Monterey works to meet our State-mandated 2023–2031 Housing Element goals, which include a Regional Housing Needs Allocation (RHNA) target of 3,654 new housing units. We take this mandate seriously. However, building these homes—especially affordable ones—requires not only sufficient water supply but smart and flexible water planning. If inflated projections are used as the basis for future supply decisions, it could lock the region into costly infrastructure prematurely, before fully exhausting the opportunities presented by local, sustainable, and more cost-effective alternatives.

Finally, as stewards of one of the most beautiful coastal regions in California, we have a duty to ensure that any future water supply solution protects the environment. Expanding our water portfolio must be done carefully, with full appreciation for the impact on our aquifers, ecosystems, and coastline. We are fortunate to have a successful, locally supported project in PWM, which aligns with our environmental values and long-term goals.

For these reasons, the City of Monterey respectfully urges the Commission to revise the demand forecast in this proceeding to reflect current conditions, realistic assumptions, and the supply potential already in place. A thoughtful and accurate approach will ensure water affordability, support much-needed housing, and safeguard our environment for generations to come.

Thank you for your careful consideration.

Sincerely,
Tyller Williamson
Mayor

ATTACHMENT
Council Regular Meeting, 8/5/2025, Item No. 10., Item Page 4, Packet Page 169 Council
Agenda Report
№11/25
FROM: Brette Neal, Human Resources Manager
SUBJECT: Provide Direction to Staff on the Executive Recruitment for City Manager (Not a Project Under CEQA per Article 20 Section 15378 and Under General Rule Article 5 Section 15061)
RECOMMENDATION:

That the City Council provide direction to staff on the executive recruitment for City Manager.

VALUE DRIVERS:

Provide sufficient resources and support to develop,
retain, and recruit a high-quality city workforce.

POLICY IMPLICATIONS:

This action implements the City Council’s vision to
identify the most outstanding candidates for the City
Manager position.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE
ACT) APPLIES: No.

FISCAL IMPLICATIONS:

There is no fiscal impact to provide direction on
recruiting the City Manager.

ENVIRONMENTAL DETERMINATION:

The City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 (“CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

Agenda Report Highlights
 City Manager Hans Uslar will retire
on December 30, 2025.
 Council guidance is essential for
recruiting a new City Manager.
 Recruitment options include using
an executive search firm,
conducting internal recruitment, or
limiting the process to promotionalonly recruitment.
 No fiscal impact is associated with
providing direction on the
recruitment process.

Date: 8/5/2025
Item No.: 11.

Council Regular Meeting, 8/5/2025, Item No. 11., Item Page 1, Packet Page 170 №11/25
ALTERNATIVES CONSIDERED:

There are no alternatives considered.

DISCUSSION:

The City Manager, Hans Uslar, announced his retirement effective December 30, 2025. The City Manager plays a pivotal role in executing the vision and policies of the City Council. For this reason, Council guidance during recruitment is essential.

Some options for directing staff include: (1) using an executive search firm (2) conducting the recruitment internally without an executive search firm; (3) limiting the process to a conduct a Promotional-Only recruitment; or (4) providing alternative direction.

Writings distributed for discussion or consideration on this matter within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, will be made available at the following link:
https://monterey.gov/Submitted-Comments
Council Regular Meeting, 8/5/2025, Item No. 11., Item Page 2, Packet Page 171 Council
Agenda Report
№11/25
FROM: Nat Rojanasathira, Assistant City Manager
Prepared By: Clementine Bonner Klein, City Clerk
SUBJECT: Update the Governance Policy to Provide for a Mayor/Vice Mayor Subcommittee to Interview and Nominate Applicants to Boards, Commissions, and Committees, and Update the Council’s 2025 Appointments Chart (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061) RECOMMENDATION:

That the City Council update its Governance Policy and
Council appointments chart to reflect its recent direction to form a standing subcommittee for conducting interviews
and nominating applicants to boards, commissions, and
committees.

VALUE DRIVERS:

Foster a local government that is transparent and
collaborative; and solicits, welcomes and appreciates input from all.

POLICY IMPLICATIONS:

The proposed Governance Policy update is compliant with the California Maddy Act.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE
ACT) APPLIES: No.

FISCAL IMPLICATIONS:

Updating the Governance Policy and appointments chart
would have no fiscal impact.

ENVIRONMENTAL DETERMINATION:

The City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 (“CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, Agenda Report Highlights
 Recommends formation of a
Mayor/Vice Mayor Subcommittee to
publicly conduct interviews and
nominate applicants for boards,
commissions, and committees.
 Applicants can attend public
interviews remotely, adding
flexibility and transparency to the
process.
 Updates to the Governance Policy
and Council appointments chart are
necessary to implement the new
process.
 Subcommittee may develop
standardized protocols to ensure
consistency and fairness.
 City Clerk will establish staff
procedures to support the
Subcommittee, including offering
alternative interview dates for
applicants.

Date: 8/5/2025
Item No.: 12.

Council Regular Meeting, 8/5/2025, Item No. 12., Item Page 1, Packet Page 172 №11/25
this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

ALTERNATIVES CONSIDERED:

The Council could decline to adopt the governance resolution and update their appointments chart, or could make changes to the resolution as presented.

DISCUSSION:

On June 17, 2025, the Council directed staff to prepare an amendment to the Council’s Governance Resolution to form a Standing Subcommittee, consisting of the Mayor and Vice Mayor, which would be charged with publicly conducting board and commission interviews and making appointment nominations. (The full Council makes appointments at a Council meeting by majority vote, pursuant to the City Charter.) On July 23, 2025, the Council reviewed the draft policy update and affirmed its intent to adopt it at the meeting of August 5, 2025. This action will also necessitate updating the Council’s annual appointments chart for 2025.

Because the policy for board, commission, and committee appointments is part of the larger Council Policy on Governance, a resolution updating the Governance policy must be adopted in order to enact and form the Subcommittee on Commission Appointments. A draft resolution, with the policy document as Exhibit A, is attached to this report. The only changes that have been made to the policy are found in Section B, “Appointing Members to Boards, Commissions, and Committees,” and these changes were provided in draft format to the Council for review on July 23, 2025. The changes include replacing Mayoral review of candidates with the standing subcommittee interviewing and deliberating in public meetings, and as directed by Council in June, the express provision that applicants may attend their public interviews remotely if desired. The process now also covers nominating Monterey residents for appointment to outside agency committees, adding transparency to how the City recommends residents for roles on bodies like Transportation Agency for Monterey County (TAMC)’s Bicycle and Pedestrian Facilities Advisory Committee. Provisions of the current policy such as outreach methods, reappointment requirements, and what factors should be considered by the subcommittee in evaluating applicants and by the Council in making appointments, are kept in place.

Since the Council had expressed an interest in the possibility, but did not direct, that the Subcommittee would use standardized protocols for consistency and fairness, the City Clerk plans to agendize the first public Subcommittee meeting for the Subcommittee members to provide guidance and develop any desired Subcommittee guidelines and standards. These could include standardized interview questions, length of time for each interview, how long to wait for a no-show before moving on, and so on.

To facilitate the administration of the Council policy and the Subcommittee guidelines and standards, the City Clerk will develop procedures for staff to follow in supporting the Subcommittee on Commission Appointments. These procedures will include, based on the Council’s guidance in June, providing applicants with a second date for their interviews in the event that the first date offered by the Subcommittee does not fit their schedule.

At its meeting on July 23, 2025, Council also directed staff to draft legislation establishing 12- year term limits for boards, commissions, and committees, with the condition that incumbents Council Regular Meeting, 8/5/2025, Item No. 12., Item Page 2, Packet Page 173 №11/25
could continue serving if no other qualified residents applied. This draft ordinance would be brought to the City Council for consideration at a future date.

It is also worth noting that changes to policy affecting City Council travel, as well as changes to how consent agenda items are heard would result in an update of this Governance Policy at a future date.

Staff recommends that the Council adopt the attached resolution updating the Governance Policy and update the 2025 Council appointments chart.

NR/cbk
Attachments: 1. Resolution with Exhibit A
e: All members of Boards, Commissions, and Committees
Writings distributed for discussion or consideration on this matter within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, will be made available at the following link:
https://monterey.gov/Submitted-Comments
Council Regular Meeting, 8/5/2025, Item No. 12., Item Page 3, Packet Page 174 RESOLUTION NO. __ C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY
№011/24

AMENDING AND RESTATING THE CITY COUNCIL GOVERNANCE POLICY WHEREAS, it is an adopted value driver of the City Council to foster a local government that is transparent and collaborative, and solicits, welcomes, and appreciates input from all; WHEREAS, it is prudent to develop, maintain, and update governance policies to ensure mutual understanding among the members of the City Council; communicate expectations clearly for the benefit of Councilmembers, staff, and public; and demonstrate professionalism and transparency in the conduct of the City’s business; WHEREAS, following the November 7, 2023 adoption of the Policy on Governance (Resolution No. 23-131 C.S.), the Mayor and City Council held further discussion on the governance matter of appointing members to Boards, Commissions, and Committees at the special meeting on January 29, 2025, regular meeting on February 18, 2025, regular meeting on June 17, 2025, and special meeting on July 23, 2025; WHEREAS, on June 17, 2025, the Council voted unanimously in favor of the creation of a standing subcommittee, consisting of the Mayor and Vice Mayor, that would be charged with conducting board and commission interviews and making appointment nominations, and this direction is incorporated into the updated “Appointing Members to Boards, Commissions, and Committees” section of the Council Policy on Governance, attached as Exhibit A; WHEREAS, it is the Council’s intent that all other provisions of the Governance Policy remain in place; and
WHEREAS, the City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA)(CCR, Title 14, Chapter 3 (CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project.

Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability; and

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that the above recitals are true and correct and are hereby incorporated and adopted as findings of the City Council as if fully set forth herein.

NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that it hereby amends and restates Resolution No. 23-131 C.S., adopting the City Council Policy on Governance, which is attached hereto and incorporated by reference as Exhibit A.

Council Regular Meeting, 8/5/2025, Item No. 12., Item Page 4, Packet Page 175 2 PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this ___ day of _____, 202_, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

APPROVED:

ATTEST:

Mayor of said City
City Clerk thereof
Council Regular Meeting, 8/5/2025, Item No. 12., Item Page 5, Packet Page 176

EXHIBIT A
PURPOSE:

To set forth standards and requirements to ensure that the City Council, staff, and public can easily understand the processes by which the City’s business is conducted, to foster a local government that is transparent and collaborative; and solicits, welcomes, and appreciates input from all.

POLICY:

A. Agendizing of City Council Items by Individual Councilmembers.

1. A Councilmember may submit an agenda report to the City Clerk’s Office outlining a request to agendize a matter of business on a future agenda. This agenda report should, in 350 words or less, describe what, how, and why the matter of business should be considered by the City Council. The City Clerk’s Office will add the item to an upcoming agenda.

2. At the Council Meeting where the request is considered, the Councilmember who submitted the request will deliver a verbal report consistent with the agenda report.

This verbal report should not exceed three minutes. The City Council may ask questions pertaining to whether the item should be agendized (e.g., the required amount of staff time, the priority level to be assigned to the item, etc.).

3. Public comment will be received.

4. In deliberating the request, the sole issue to be determined is whether the substantive issue warrants being heard at a future date. A majority vote is not required, instead, the motion will pass with two “yes” votes.

B. Appointing Members to Boards, Commissions, and Committees

1. California Law. The appointments process will be conducted in compliance with the Maddy Act (Gov. Code § 54970 et seq.) and the Ralph M. Brown Act (Gov.

Code § 54950 et seq.).

2. Outreach. In addition to legal noticing requirements, the City’s list of interested parties will be notified to solicit applications for every vacancy, whether it is an expiring regular term or an unscheduled vacancy. Staff may advertise more broadly as needed to reach more residents. The Council, and members and staff of the bodies with vacancies, are encouraged to spread the word and help solicit applications.

3. Applications. All interested residents will be provided a standard application.

4. Reappointments. Each board, commission, or committee member with an expiring term must submit a new application to be considered for reappointment.

City staff will compile a factual report on each re-applicant, to include their attendance records, compliance with mandated filings and trainings, Council district, and special eligibility requirements if applicable.

5. Transparency. All applications and factual reports are public records and will be provided publicly and timely for all to view.

6. Subcommittee Interviews and Nominations. A standing “Subcommittee on Commission Appointments,” consisting of the Mayor and Vice Mayor, will meet in City Council Policy:

Governance
Council Regular Meeting, 8/5/2025, Item No. 12., Item Page 6, Packet Page 177

EXHIBIT A
2 public, noticed meetings that the public may attend and comment upon, to conduct interviews and nominate applicants for appointment. In evaluating applicants, the Subcommittee will consider their interests and skills, Councilmember district representation, and the specific needs of the body at the time of appointment. Applicants may attend their interviews remotely if desired.

Any member of the Council may attend a meeting of the Subcommittee as long as they merely observe and do not participate. The Subcommittee’s nominations will be presented on a future City Council agenda for consideration.

7. Appointments. Appointments will be made by majority vote of the City Council in accordance with the City Charter. The Council is encouraged to consider Councilmember district representation in making appointments.

8. Monterey Residents Appointed to Outside Agencies. The process outlined above will be used, using the outside agency’s application if applicable, when an external meeting body requires the City to nominate or recommend a Monterey resident as part of their appointment requirements. The Subcommittee will hold interviews and make the nominations.

C. Appointments to Outside Agencies and Committees. Councilmembers serve the City on outside agencies in roles that fall into Voting Member or Liaison/Observer capacities.

Annually, the Council reviews and makes appointments to the boards of outside agencies, and to City committees. Throughout the year as they attend these outside board meetings, Councilmembers can report back to the entire Council or staff with a summary or during “Council Comments” on the Council agenda.

D. City Manager and City Attorney Annual Performance Evaluation. The evaluation of the City Manager and City Attorney are to be conducted at least annually and are facilitated and proctored by a third-party consultant.

E. Communication with Staff. Charter section 4.7 requires the Mayor and Councilmembers to deal directly through the City Manager or City Attorney, who will direct questions, requests, issues, and concerns to appropriate staff members. Elected officials cannot commit staff time and resources outside of public meetings without a majority vote.

Elected officials receive personal contacts, communications, and emails from the public, which is a vital role in open government and transparency. In reply to a request or issue, it is recommended that the Councilmember explain that their concerns will be passed on to the City Manager. Through the City Manager, staff keep the Council and the public informed on progress. This aligns with the City Charter, allows the Council to be responsive to the public, and refers public requests to the appropriate staff. This form of communication lets the public know that its concerns have been heard, and that the City is responding.

These procedures also apply to Board Members and Commissioners.

F. Council Comments. The City Council agenda states:

COUNCIL COMMENTS
Councilmembers may ask a question for clarification, make a brief announcement, or make a brief report on their activities. In addition, Councilmembers or the City Council may provide a referral to staff or other resources for factual information., (G.C. 54954.2(a)(3)).

This is an opportunity, for example, to express appreciation, note upcoming community activities and events, report on meetings of outside agencies, and report on any trainings or conferences attended.

Council Regular Meeting, 8/5/2025, Item No. 12., Item Page 7, Packet Page 178

EXHIBIT A
3 G. Council Meetings (Questions for Staff). Questions for the staff are directed to the City Manager, who will assign a staff member to provide answers.

H. Councilmember Interactions with Labor Unions when Negotiations are Pending. An elected official can choose to meet with union officials, as they can with any group of constituents. If a Councilmember meets with union officials, the Councilmember should be clear that they are not speaking on behalf of the City. Also, during labor negotiations, to avoid any action that makes it appear that the City is interfering in the union’s relationship with the employees it represents, Councilmembers should avoid meeting with employees outside of the presence of their union representative. If a Councilmember meets with union representatives, any discussions surrounding the negotiations should be disclosed to the City Council.

I. Councilmember Participation at Conferences, Trainings, and Events. The Purchasing Manual applies to all employees, the Mayor and Councilmembers, and all Board, Commission, and Committee members. The Purchasing Manual states that “all expenses related to travel should be limited to those deemed “reasonable and necessary.” In compliance with Government Code section 53232.3(d), Councilmembers will provide brief reports on meetings and conferences attended at the expense of the City at the next regular meeting after such attendance.

J. Ex Parte Communications in Quasi-Judicial Proceedings. To ensure due process and a fair hearing, Councilmembers should avoid taking positions on issues that may come before them in their quasi-judicial capacity until they have considered all the evidence and arguments at the public hearing. Ex parte communications include oral and written information and visual and audio information (e.g., obtained from a site visit). Ex parte communications must be complete, detailed, and disclosed at the start of the hearing or as early in the process as is reasonable.

K. Letterhead Use by Councilmembers. City Council letterhead should be used for letters representing the position of the full Council, except for social items such as thank you letters which can be sent by individual members. Individual Councilmembers should not use City letterhead to do advocacy work (i.e., advance a position on legislation) or write about policy.

L. Reconsideration of Previous Council Decisions. Any Councilmember who voted with the majority may move for reconsideration of any action at the same meeting or at the next regular meeting. Any request for reconsideration at the next regular meeting must be made in writing, must set forth the reasons for the request, and be received by the City Clerk before the agenda deadline for the next scheduled regular meeting to ensure Brown Act compliance.

M. Public Comments for Meetings of the City Council, Boards, Commissions, and Committees. To facilitate free speech and maintain meeting efficiency, the following is intended to establish reasonable regulations to be enforced fairly and without regard to speakers’ viewpoints.

1. Public Comments for Items on the Agenda - Public Appearance and Public Hearings:
a. The Mayor or Chair will determine the approximate number of persons wishing to speak at the beginning of each public comment period for Public Appearance and Public Hearing items, and the time estimated to complete the business on the agenda. Based on the number of Council Regular Meeting, 8/5/2025, Item No. 12., Item Page 8, Packet Page 179

EXHIBIT A
4 anticipated speakers in the City Council Chambers and on Zoom, the Mayor or Chair will identify the maximum time allotted for public comment.

This will generally be two to three minutes per speaker during a public comment period not to exceed a total of 30 minutes. In exceptional circumstances and when necessary to ensure a full opportunity for public input, the Mayor or Chair may, with the legislative body’s consent, adjust the amount of time allowed for public input and/or the time allotted for each speaker. The time limits could be shortened or lengthened. Public speakers who require interpreters shall be given at least twice the time limit for other speakers.

2. Public Comments for All Other Items (including, but not limited to, Consent Items, Closed Session Items, Matters Not on the Agenda, Presentations, Joint Powers Agency Special Meetings, etc.):
a. The same rules outlined in Section M(1)(a), above, apply to public comments offered for all items other than Public Appearance and Public Hearing items, except that the maximum time allotted for public comment on each item is a maximum of 15 minutes.
b. If a meeting has two sessions, public comment on matters not on the agenda will be received in both the afternoon and evening sessions, and individuals may choose to speak once at either session, but not at both sessions.

3. Disruptive Behavior
a. Disruptive behavior is behavior that actually disrupts, disturbs, impedes, or renders infeasible the orderly conduct of the meeting. (Government Code section 54957.95.) It can include noncompliance with these established rules of decorum, such as exceeding speaker time limits or speaking out of turn, provided the behavior actually disrupts the meeting. b. As a precondition to removing a disruptive individual, the Mayor or Chair must first warn the individual that their behavior is disruptive and that failure to cease their disruptive behavior could result in removal from the meeting or being muted on Zoom. The individual may then be removed or muted on Zoom if they do not promptly cease their disruptive behavior. A warning is unnecessary if the disruptive individual is using force or makes a true threat of force.
c. The occurrence of disruptive behavior via Zoom remote participation will automatically trigger City staff to agendize a discussion about whether to continue to allow remote participation at the next Council meeting.

N. Strategic Planning and the City Staff Work Program. The City Council reviews the Value Drivers and Strategic Priorities every four to five years. The City Staff Work Program, which outlines specific efforts sorted by Value Driver and Strategic Priorities, is presented to the City Council twice a year in January and August.

Adopted by Resolution No.: 23-131 C.S.

Amended by Resolution No.: _____
Effective Date: August 5, 2025
Council Regular Meeting, 8/5/2025, Item No. 12., Item Page 9, Packet Page 180 Council
Agenda Report
№11/25
FROM: Kimberly Cole, AICP, Community Development Director Levi Hill, AICP, Planning Manager
Prepared By: Fernanda Roveri, AICP, Principal Planner
SUBJECT: Adopt the Planning Commission Recommendation and Approve a 1st Reading of Ordinances Amending Chapter 33 and Chapter 38 of the Monterey City Code to Implement the Provisions of California Senate Bill 9 and Housing Element Program I-J Allowing for Ministerial Approval of Qualifying Residential Developments and Lot Splits (Not a Project under Division 13, Commencing with Section 21000, of the Public Resources Code)
RECOMMENDATION:

That the City Council pass the ordinances to a second
reading. The Planning Commission considered, and
unanimously recommended, the adoption of these
ordinances at its meeting held on June 10, 2025.

VALUE DRIVERS:

Support efforts and policies that provide equitable access to affordable housing in Monterey and the region.

POLICY IMPLICATIONS:

The ordinances would amend City Code to implement the
provisions of Senate Bill 9 and Housing Element Program I-J. Senate Bill 9 directly addresses California's housing shortage by allowing for more units on land previously
zoned for single-family homes. The bill aims to simplify the process for homeowners to develop their properties, potentially reducing the time and cost associated with
building new units. While not explicitly requiring
affordability, the bill's proponents hope that increased density will lead to more affordable housing options.

Housing Element Program I-J fills this affordability gap by providing affordable housing incentives to eligible
projects.

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE
ACT) APPLIES: No.

FISCAL IMPLICATIONS:

No fiscal implications have been identified, as
implementing the provisions of Senate Bill 9 and Housing Element Program I-J are state mandates that have been
Agenda Report Highlights
 Senate Bill 9 allows property
owners in single-family
residential zones to construct
up to four units per parcel or
subdivide lots into two parcels,
enabling up to four units across
both parcels.
 Local jurisdictions must provide
ministerial approval for SB 9
projects, applying only
objective zoning, design, and
subdivision standards without
discretionary review.
 Incentives would allow up to six
units on a single-family parcel if
at least one unit is affordable to
very low-income households.
 SB 9 projects are subject to
restrictions, including
prohibitions on demolishing
affordable housing, short-term
rentals, and demolition of
tenant-occupied units within the
last three years.

Date: 8/5/2025
Item No.: 15.

Council Regular Meeting, 8/5/2025, Item No. 15., Item Page 1, Packet Page 181 №11/25
absorbed by Planning and Building Division staffs.

ENVIRONMENTAL DETERMINATION:

An ordinance adopted to implement Government Code sections 65852.21 and 66411.7 shall not be considered a project under Division 13, commencing with Section 21000, of the Public Resources Code (CEQA).

ALTERNATIVES CONSIDERED:

The City Council could choose not to adopt the proposed amendments, which would obligate the City to implement Senate Bill 9 as prescribed in Government Code sections 66452.6, 65852.21, and 66411.7. This alternative would be inconsistent with the City’s Housing Action Plan as adopted in the 6th Cycle Housing Element.

The City Council may also recommend approval of the proposed ordinances with modifications.

DISCUSSION:

Background
Senate Bill (SB) 9 (Atkins), signed into law by Governor Newsom on September 16, 2021, allows property owners within a single-family residential zone to construct up to two residential units and/or subdivide a single lot into two parcels, allowing for a total of four units.

The bill requires ministerial approval of the following types of development:
 Two-unit housing development – Two homes on an eligible single-family residential parcel. Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) must also be allowed, for a total of up to four units on the parcel.  Urban lot split – A one-time subdivision of an existing single-family residential parcel into two parcels. Both parcels would allow the construction of up to two residential units each. This would allow up to four units (unless a jurisdiction decides to allow additional units through local ordinance).

The bill specifies how local jurisdictions may restrict or limit SB 9 proposals. Local jurisdictions may only apply objective zoning, subdivision, and design standards to qualifying SB 9 projects; however, no standard may be enforced if it would preclude the construction of up to two 800 square foot units. Jurisdictions can conduct objective design review but shall not require discretionary review for projects meeting the provisions of SB 9.

SB 9 applies to all single-family residential zones within an urbanized area with several key exceptions as summarized below (a complete list of exceptions is available in Government Code section 65913.4, subdivision (a)(6)(B-K):
 Environmentally sensitive areas
 Environmental hazard areas if mitigation is not possible (note: SB 9 is applicable with modifications, in wildfire severity zones)
 Historic designated properties and historic districts Council Regular Meeting, 8/5/2025, Item No. 15., Item Page 2, Packet Page 182 №11/25
 Properties where the Ellis Act was used to evict tenants at any time in the last 15 years  Additionally, demolition is generally not permitted for units rented within the last 3 years, rent-controlled units or units restricted to people of low or moderate incomes.

This law is similar to recent state ADU legislation in that it allows jurisdictions to apply additional locally adopted standards as long as they do not have the effect of preventing development as allowed under SB 9. Market analysis along with local permitting data collected since 2021 suggest that the volume of SB 9 proposals will be limited. This is in part because homeowners already have many of the same rights under ADU law with fewer site restrictions as noted above. The primary changes resulting from the bill are provisions allowing for the subdivision and sale of single-family lots.

General Regulations
The law details how jurisdictions may regulate SB 9 proposals. Certain provisions are more prescriptive and are required to be upheld by local jurisdictions, while other provisions may be applied with more flexibility.

The following regulations apply to all two-unit housing development and urban lot split projects:
 Ministerial review - Jurisdictions must review and process any application for an SB 9 two-unit housing development or urban lot split ministerially without any discretionary/subjective review or additional CEQA review.  Objective standards - Jurisdictions may only impose adopted objective zoning, design, and subdivision standards. However, no standard may be applied that would physically preclude the construction of two units of less than 800 square feet each, per property.  Four-foot rear and side setbacks - Jurisdictions may not impose residential setbacks greater than four feet for side and rear property lines.  Setback for new building in existing footprint - Jurisdictions may not impose any setback requirements for a new residence constructed in the same location and to the same dimensions as an existing structure that is demolished.  Parking - Jurisdictions may not require more than one parking space per unit. For properties within one-half mile walking distance of either a high-quality transit corridor or a major transit stop, or within one block of a car share vehicle, no parking spaces may be required.
 Denials for public health and safety - Jurisdictions may only deny an SB 9 proposal if the Building Official finds that it would have a "specific, adverse impact [as defined by the law], upon public health and safety and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact." Any denials must be based on objective, identified public health and safety standards, policies, or conditions that existed when the application was deemed complete.
 Attached buildings - Jurisdictions may not reject an application because it proposes adjacent or connected structures provided that the structures meet building code safety standards and are sufficient to allow separate conveyance. (SB 9 does not define “sufficient to allow separate conveyance.”)
 Coastal Plan consistency - Projects located in the coastal zone must conform to any adopted local coastal plan.

In addition to the regulations noted above, the following regulations apply to urban lot split projects:

Council Regular Meeting, 8/5/2025, Item No. 15., Item Page 3, Packet Page 183 №11/25
 Dedications/Improvements - Jurisdictions may not require dedications of rights-of-way or the construction of offsite improvements.
 Easements - Jurisdictions may require easements necessary for the provision of public services and facilities and may require that parcels have access to, provide access to, or adjoin the public right of way.
 No correction of non-conforming conditions - Jurisdictions may not require correction of an existing non-conforming condition as a condition of ministerial approval.  One use - Only one lot split is allowed under SB 9, however further parcels may be created under regular subdivision procedures.
 Residential only - The uses on the resulting lots are limited to residential uses.  Proportionate lot area - Each new parcel must be "approximately equal" in lot area provided that one parcel shall not be smaller than 40 percent the size of the original parcel.
 Minimum lot area - No parcel shall be less than 1,200 square feet. Jurisdictions may allow a smaller minimum lot size subject to ministerial approval if they choose to do so.  Intention to occupy - The project applicant must sign an affidavit stating they (owner) intend to occupy one of the units for a minimum of three years. The local jurisdiction cannot impose additional owner occupancy standards. Community land trusts and qualified nonprofits are exempted from this requirement.  Limits on adjacent urban lot splits - Neither the applicant/owner nor any person "acting in concert" with the applicant/owner may propose a lot split adjacent to a lot previously subdivided as an SB 9 urban lot split.

Applicability and Site Restrictions
SB 9 applies in all Urban Areas, as defined by the U.S. Census Bureau, with the following exceptions:
 Environmentally Sensitive/Environmentally Hazardous Areas Properties designated as:
o Prime farmland or farmland of statewide importance
o Wetlands
o Within a very high fire hazard severity zone (with exceptions) o A hazardous waste site (with exceptions)
o Within a delineated earthquake fault zone (with exceptions) o Within a flood zone (with exceptions)
o Identified for conservation or under conservation easement o Habitat for protected species
 Ellis Act
Properties where the Ellis Act was used to evict tenants at any time in the last 15 years.  Historic Properties
Properties located in a state or local historic district, or properties designated historic landmarks.

Additional Restrictions:
 Deed restricted affordable housing
SB 9 projects may not demolish housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of Council Regular Meeting, 8/5/2025, Item No. 15., Item Page 4, Packet Page 184 №11/25
moderate, low, or very low income. Nor is it allowed for housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power.

Demolition is also not permitted for housing that has been occupied by a tenant in the last three years.
 No short-term rentals
Rental terms less than 30 days are prohibited.
 Limits on demolition
Projects may not demolish more than 25 percent of existing exterior structural walls unless (a) the property has not been occupied by a tenant for 3 years or (b) it is otherwise allowed by the jurisdiction.

Anticipated Local Impact
Given the variables noted above, it’s unclear how many homes will be created by SB 9 over time. While SB 9 increases the zoning potential for residential units in single-family neighborhoods, market conditions and other factors are likely to limit the impacts of SB 90F 1 .

There are approximately 4,829 parcels zoned for single-family residential use in Monterey (Figure 1). Of those, approximately 90 percent are zoned “R-1” (Residential Single-Family District). The remaining are zoned either “R-E” (Residential Estate District) or “PC” (Planned Community District).

Due to the exceptions and site limitations previously noted, not all 4,829 parcels would meet the required criteria to qualify for SB 9 approval. Many parcels are ineligible due to their location in environmentally sensitive areas. Even if a property meets all the qualifying criteria, high sales prices and construction costs, combined with limited buildable area, render many properties infeasible for SB 9 proposals. To date, the City of Monterey has only received six requests for SB 9 approval since it became law in 2021, and none of those projects have been constructed.

Figure 1: Citywide Zoning Distribution of Single-Family Properties 1 https://ternercenter.berkeley.edu/research-and-policy/duplexes-lot-split-sb-9/ R-E R-1 PC
~ 4,829 Single-Family Parcels
Council Regular Meeting, 8/5/2025, Item No. 15., Item Page 5, Packet Page 185 №11/25
Accessory Dwelling Units and Junior Accessory Dwelling Units An additional factor that impacts how SB 9 is implemented is its relationship to existing Accessory Dwelling Unit (ADU) and Junior Accessory Dwelling Unit (JADU) allowances as stipulated in separate state legislation.

Under existing ADU law, a single-family zoned property allows for one primary dwelling unit in addition to one ADU, and one JADU, for a total of three housing units. Neither ADU law nor SB 9 precludes a property owner from exercising the development potential granted in each legislative act, which enables applicants to combine the allowances granted under each.  ADU/JADU Law and SB 9 Law without lot split
o Homeowners can use SB 9 to build two new homes on an existing vacant lot. If there is an existing home on the property, they can add one primary dwelling unit in addition to two ADUs/JADUs. This would result in up to four housing units on the lot.
 ADU/JADU Law and SB 9 Law with lot split
o Homeowners that split a lot will be allowed to build two new units on each of the two new lots, allowing for a total of four units. If there are existing units on the lot, new homes can be added, also resulting in a total of four units.

Potential Development Scenarios
Prior to the enactment of SB 9, the Zoning Ordinance limited how owners could expand uses on single-family zoned property to the following:
o Addition of an ADU and/or JADU without discretionary approval to a developed lot, resulting in a total of up to three housing units (one primary dwelling unit, one ADU, and one JADU).
o Standard subdivision of property subject to minimum lot area (5,000-40,000 square feet) and dimensions applicable to the zone through the minor subdivision process. This would ultimately allow for the creation of at least one new singlefamily zoned lot that would allow one primary unit in addition to an ADU and/or JADU for a total of three housing units per lot.

The R-1 and R-E districts are accompanied by zoning designators that indicate the minimum lot area and dimensions (e.g. “R-1-5”, “R-E-20”). The minimum lot size for R-1 ranges between 5,000 and 20,000 square feet, whereas the minimum lot size for R-E is 20,000 and 40,000 square feet.

With the enactment of SB 9, many provisions of the Zoning Ordinance, including minimum lot standards, cannot be enforced upon proposals meeting the qualifying criteria previously noted in this report.

Under the provisions of SB 9, owners can potentially develop qualifying properties as follows:
 On an Existing Lot:

Council Regular Meeting, 8/5/2025, Item No. 15., Item Page 6, Packet Page 186 №11/25
o Develop up to two attached or detached primary units and up to two ADUs/JADUs, without discretionary approval. This scenario would result in a total of up to four units (Figure 2).

Figure 2: Potential Development Scenarios without Lot Split  Creation of New Lots through Urban Lot Split:
o Subdivision of an existing lot into two lots with a minimum area of 1,200 square feet each, without discretionary approval. Subsequent development of up to four units across both lots including up to four primary units and/or two ADUs/JADUs, without discretionary approval. Under any combination of primary units and ADUs/JADUs, no more than four units are allowed across both lots unless local jurisdictions choose to allow additional units. No setback may be required for an existing structure or a structure constructed in the same location and to the same dimensions as an existing structure.

Figure 3: Potential Development Scenarios with Lot Split It should be noted that property owners can only use SB 9 to facilitate new housing units (and urban lot splits). SB 9 cannot be used to facilitate additions or alterations to existing structures that would not result in additional residential units.

Draft Ordinances
Council Regular Meeting, 8/5/2025, Item No. 15., Item Page 7, Packet Page 187 №11/25
To ensure compliance with state legislation and to provide clarity to the public, amendments to the Zoning Ordinance and Subdivision Ordinance are proposed to further codify the provisions of SB 9. As previously noted, only properties zoned single-family residential are eligible for SB 9 consideration. One of the draft ordinances (Attachment 2) proposes a new article in Chapter 38 of the Monterey City Code that would provide precise standards and procedures for ministerial approval of two-unit developments. The first draft ordinance (Attachment 1) proposes amendments to Chapter 33 of the Monterey City Code that would provide precise standards and procedures for ministerial approval of urban lot splits.

Additional Development Allowances or Restrictions Included in Draft Ordinance As previously noted, SB 9 authorizes local jurisdictions to expand on certain provisions of the law that would allow for the construction of more units than typically allowed. The City’s adopted Housing Action Plan includes Program I-J intended to promote and facilitate Senate Bill 9 housing as appropriate in Monterey. Specifically, the program states that in order to promote housing opportunities for very low-income families in single-family neighborhoods in Monterey, an ordinance should be adopted that would allow up to six units on what is currently a singlefamily parcel if the property owner commits to making at least one of the additional units affordable to households earning less than 50 percent of the Monterey County area median income (AMI) through a long-term affordability agreement. Additionally, the program proposed incentives for the development of “family units” consisting of two or more bedrooms. To further implement Program I-J, the draft ordinance includes the following provisions:
 If at least one dwelling unit in a two-unit development is made affordable to a very low income household, the two-unit development would qualify for the following incentives:

A. If the two-unit development is developed on a parcel created through an urban lot split, the total number of dwelling units allowed across both parcels will be increased from four to six dwelling units, with no more than four dwelling units allowed on a single parcel. All three dwelling unit types (i.e., primary dwelling units, accessory dwelling units, and junior accessory dwelling units) count toward this six dwelling unit limit.

B. If the requirements of the underlying residential zoning district, any applicable overlay district, and all other applicable provisions of the Zoning Ordinance would restrict the size of the dwelling units in a two-unit development to 800 square feet, the size of one of the primary dwelling units in the two-unit development shall be allowed to go up to 1,000 square feet if two or more bedrooms are provided.

SB 9 also authorizes local jurisdictions to expand on certain provisions of the law to ensure minimum health and safety standards are maintained as well as ensuring the preservation of natural features. The following provisions are included in the draft ordinance that expand beyond the specific limitations stipulated in SB 9:
 In an urban lot split, resulting parcels that do not adjoin the public right-of-way shall provide an access easement no less than 12 feet wide and of the length required to connect the resulting parcel to the public right-of-way.  As defined in Monterey City Code Chapter 37, section 37-2, protected tree(s) whose dripline is within the proposed footprint of any unit constructed in a development at the Council Regular Meeting, 8/5/2025, Item No. 15., Item Page 8, Packet Page 188 №11/25
time of application shall be replaced onsite with two replacement trees per tree impacted.

These additional provisions would serve to implement the City’s Housing Element by promoting housing opportunities for very low-income families with children; provide access to property for firefighting purposes and assign maintenance responsibilities for shared driveways, utilities, and landscaping; and ensure preservation of trees and their replacement when removal is unavoidable.

Planning Commission Recommendation
On June 10, 2025, the Planning Commission held a duly noticed public hearing, carefully considered all the information presented, including the agenda report and information submitted by interesting persons, and recommended the City Council adopt first reading of the ordinances.

Analysis
Section 38-198.B of the Monterey City Code states that the Planning Commission shall make specific findings as to whether the proposed zoning regulations are consistent with the policies of the General Plan and the purposes of the Zoning Ordinance, as applicable.

The Ordinance amendments are consistent with the City's 6th, Cycle Housing Element, Housing Action Plan Program I-J intended to promote and facilitate Senate Bill 9 housing as appropriate in Monterey. Further, to promote housing opportunities for very low-income families in singlefamily neighborhoods in Monterey, this ordinance would allow up to six units on what is currently a single-family parcel if the property owner commits to making at least one of the additional units affordable to households earning less than 50 percent of the Monterey County area median income (AMI) through a long-term affordability agreement.

By codifying the provisions of state legislation, the amendments help provide a precise guide for the physical development of the city. The proposed amendments enforce the maximum setbacks and maximum lot area allowed under SB 9, preserving the character and quality of residential neighborhoods to the maximum extent possible. The amendment attempts to require open space and encourage tree retention to the maximum extent allowed and will require suitable access easements, ensuring the provision of adequate open space for light, air, and fire safety. Parking will continue to be required at the maximum extent allowed under SB 9, ensuring that proposed development provides space for parking on site, reducing impacts to the already burdened on-street parking system.

The provisions of this Subdivision Ordinance amendment are consistent with the Subdivision Map Act and the City’s General Plan in that the proposed objective subdivision standards would require that a lot’s access to the City right-of-way be maintained for firefighting purposes and that utilities and access easements be recorded to aid enforceability and assign maintenance responsibility. A covenant of easement would also be required, as applicable, pursuant to Chapter 33, Article 8, Sections 33-8.00 through 33-8.02.

SB 9 Litigation
The public has asked questions regarding SB 9 litigation and whether the City is obligated to comply with the law.

Council Regular Meeting, 8/5/2025, Item No. 15., Item Page 9, Packet Page 189 №11/25
Redondo Beach and four other cities challenged the application of SB 9 to charter cities and prevailed at the superior court level (Case No. 22STCP01143) in a ruling issued in April 2024.

This is a trial court decision, which is binding only on the charter cities that challenged SB 9 as part of the litigation. Attorney General Bonta filed a notice of appeal of this ruling on December 9, 2024.

The Legislature adopted SB 450 to add language to SB 9's legislative findings promoting it as a statewide solution to California's "housing crisis and the severe shortage of housing." This law went into effect on January 1, 2025. This amendment was made to support findings that SB 9 applies to charter cities. The Senate Floor Analyses, dated August 22, 2024, states the legislative amendment provides that "...the housing crisis and supply shortage is a matter of statewide concern and not a municipal affair, and as such the provisions apply to all cities, including charter cities."
The appeal of the trial court ruling in the Redondo Beach case (22STCP01143) was consolidated with another appeal in 2nd Appellate District (Case No. B338990). The Attorney General filed the State's opening brief on May 22, 2025. Respondents' (Redondo Beach, Carson, Torrance, Whittier, and Del Mar) brief was filed on July 23, 2025.

The City must comply with SB 9 at this time.

In conclusion, staff recommends the City Council adopt the Planning Commission recommendation to adopt first reading of ordinances amending Chapter 33 and Chapter 38 of the Monterey City Code to implement the provisions of California Senate Bill 9 and Housing Element Program I-J allowing for ministerial approval of qualifying residential developments and lot splits.

KC/LH/fr
Attachments: 1. Draft Ordinance Amending Chapter 33

2. Draft Ordinance Amending Chapter 38
e: Neighborhood Associations
Business Associations
Writings distributed for discussion or consideration on this matter within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, will be made available at the following link:
https://monterey.gov/Submitted-Comments
Council Regular Meeting, 8/5/2025, Item No. 15., Item Page 10, Packet Page 190 ATTACHMENT 1
ORDINANCE NO. ____ C.S.

AN ORDINANCE OF THE COUNCIL OF THE CITY OF MONTEREY
№09/24
ADDING ARTICLE 7 TO CHAPTER 33 OF THE MONTEREY CITY CODE, URBAN LOT SPLITS IN SINGLE FAMILY ZONING DISTRICTS, TO COMPLY WITH SENATE BILL 9, AND

OTHER MINISTERIAL UPDATES TO THE SUBDIVISION ORDINANCE
WHEREAS, Senate Bill 9 added Government Code section 66411.7, providing for ministerial approval of a parcel map for an Urban Lot Split, effective January 1, 2022.

Government Code section 66411.7 was further amended by SB 450, effective January 1, 2025 (together “Senate Bill 9”), to specify that this law applies to charter cities; WHEREAS, state law allows a local agency to adopt an ordinance to implement the provisions in Senate Bill 9;
WHEREAS, the City of Monterey (the "City”) has implemented land use policies based on the City's General Plan, which provide an overall vision for the community and balance important community needs, and the City seeks to ensure that Senate Bill 9 projects are consistent with those policies;
The proposed amendments to the Monterey City Code implement requirements of state law and add local policies that are consistent with the state law and implement the City’s General Plan;
WHEREAS, the City Council finds that the provisions of this ordinance are consistent with the City's General Plan 2023-31 Housing Element Housing Action Plan Program I-J to promote and facilitate Senate Bill 9 housing as appropriate in Monterey; WHEREAS, this ordinance allows a maximum of two dwelling units of any kind per lot, including but not limited to primary dwelling units, accessory dwelling units, and junior accessory dwelling units, unless an additional unit is approved as an affordable unit incentive pursuant to City Code section 38-26.1(g)(1)(A). This illustration shows the development options with a maximum of four units that may be developed without application of the affordability incentive:

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WHEREAS, this ordinance also makes other clerical amendments to Chapter 33 by renumbering and recodifying existing ordinances; and,
WHEREAS, the proposed code amendments are intended to implement Senate Bill 9 and are not considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code, as provided in Government Code Sections 65852.21(j) and 66511.7(n).

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MONTEREY DECLARES AS FOLLOWS:

SECTION 1: The above recitals are true and correct and are hereby incorporated and adopted as findings of the City Council as if fully set forth herein.

SECTION 2: Monterey City Code, Chapter 33, Article 1, In General, Sections 33-1 through 33-8 are hereby recodified as Sections 33-1.00 through 33-1.07.

SECTION 3: Monterey City Code, Chapter 33, Article 2, Types of Subdivisions, Sections 33-9 through 33-14 are hereby recodified as Sections 33-2.00 through 33-2.05.

SECTION 4: Monterey City Code, Chapter 33, Article 2, Types of Subdivisions, section 33-2.06, Urban Lot Split, is added as follows:
“Sec. 33-2.06. Urban Lot Split. An Urban Lot Split is a one-time subdivision of an existing legal parcel in the R-E Residential Estate District, R-1 Residential Single-Family District, or PC Planned Community Zoning District where the General Plan land use designation is Low Density Residential, to create no more than two new parcels of approximately equal area, pursuant to Government Code section 66411.7.

SECTION 5: Monterey City Code, Chapter 33, Article 2, section 33-14.5, Voluntary Merger of Lots, Process, is recodified and added as Section 33-2.07.

SECTION 6: Monterey City Code, Chapter 33, Article 3, Basic Design Objectives and Requirements, Sections 33-15 through 33-41 are hereby recodified as Sections 33-3.00 through 33-3.26.

SECTION 7: Monterey City Code, Chapter 33, Article 4, Exceptions, Sections 33-42 through 33-48 are hereby recodified as Sections 33-4.00 through 33-4.06.

SECTION 8: Monterey City Code, Chapter 33, Article 5, Standard Subdivisions, Division 1, Preliminary Maps, Sections 33-49 through 33-54 are hereby recodified as Sections 33-5.00 through 33-5.05.

SECTION 9: Monterey City Code, Chapter 33, Article 5, Standard Subdivisions, Division 2, Tentative Maps, Sections 33-55 through 33-64 are hereby recodified as Sections 33-5.06 through 33-5.14.

SECTION 10: Monterey City Code, Chapter 33, Article 5, Standard Subdivisions, Council Regular Meeting, 8/5/2025, Item No. 15., Item Page 12, Packet Page 192 ATTACHMENT 1
Division 2.1, Relating to Vesting Tentative Maps, is hereby recodified as Division 3, Section 33-

5.15. SECTION 11: Monterey City Code, Chapter 33, Article 5, Standard Subdivisions, Division 3, Final Maps, Sections 33-64 through 33-78 is hereby recodified as Division 4, Section 33-5.16 through 33-5-30.

SECTION 12: Monterey City Code, Chapter 33, Article 6, Minor Subdivisions, Sections 33-79 through 33-89 is hereby recodified as Sections 33-6.00 through 33-6.10.

SECTION 13: Monterey City Code, Chapter 33, Article 7, Enforcement, Sections 33-90- 33-91 is hereby recodified as Article 10, Sections 33-10.00 through 33-10.01.

SECTION 14: Monterey City Code, Chapter 33, Article 7, Urban Lot Splits in SingleFamily Zones, is added as follows:
“Article 7. Urban Lot Splits in Single-Family Zoning Districts.

Sec. 33-7.00. Purpose. This article sets forth the objective zoning and subdivision standards for Urban Lot Splits within single-family residential zones to facilitate the development of new residential housing units consistent with the City’s General Plan and to ensure sound standards to protect public health and safety.

Sec. 33-7.01. Definitions. As used in this Article:
a. “Acting in concert” means pursuing a shared goal to split adjacent lots pursuant to an agreement or understanding, whether formal or informal. b. "Adjacent parcels" means parcels of land that (1) share a common boundary or corner, or that touch each other at any point; (2) are separated at any point only by a public right-of-way, private street or way, or public or private utility, service, or access easement; or (3) separated only by other real property which is in common ownership or control of the applicant.
c. "Car share vehicle" means a motor vehicle that is operated as part of a regional fleet by a public or private car sharing company or organization and provides hourly or daily service.
d. “Common ownership or control” means property owned or controlled by the same person, persons, or entity, or by separate entities in which any shareholder, partner, member, or family member of an investor of the entity owns 10 percent or more of the interest in the property.
e. “Director” means Community Development Director or designee. f. "Lower income household" has the meaning set forth in Health & Safety Code section 50079.5.

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g. “Moderate income household” has the meaning set forth in Health & Safety Code section 50093.
h. “Single-Family Zoning Districts” means property zoned R-E Residential Estate District, R-1 Residential Single-Family District, or PC Planned Community Zoning District where the General Plan land use designation is Low Density Residential. i. “Specific adverse impact” is a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete.

Inconsistency with the zoning ordinance or general plan land use designation, and eligibility to claim a welfare exemption under Revenue and Taxation Code section 214(g), shall not constitute a specific adverse impact.
j. "Urban Lot Split" means a one-time subdivision of an existing parcel in a Single Family Zoning District into no more than two separate parcels that meet all the criteria and standards for approval set forth in this article.
k. "Very low income household" has the meaning set forth in Health & Safety Code section 50105.

Sec. 33-7.02 Urban Lot Split.
a. The City shall ministerially review and approve or deny an application for an Urban Lot Split that subdivides an existing parcel in a Single-Family Zoning District to create no more than two new parcels as provided by Government Code section 66411.7 and this article. A maximum of two dwelling units of any kind (including primary dwelling units, accessory dwelling units, junior accessory dwelling units, density bonus units, and units created as a Two Unit Development pursuant to City Code section 38-26.1 et seq.) are permitted on a lot created through an Urban Lot Split.
b. Denial. If the City denies the application, within the 60-day review period the City shall return in writing a full set of comments to the applicant with the list of items that are defective or deficient and a description of how the application can be remedied by the applicant. An Urban Lot Split map shall be denied for any parcel:

1. Described in Government Code section 65913.4(a)(6)(B) through (a)(6)(K), incorporated herein by reference, as that section read on September 16, 2021. Such parcels include, for example, parcels located in earthquake fault zones, hazardous waste sites, wetlands, very high fire severity zones (unless the site has adopted certain fire hazard mitigation measure), in special flood hazard areas or regulatory floodways, protected habitats, etc.;

2. Created by prior exercise of an Urban Lot Split;

3. Adjacent to a parcel that was created by prior exercise of an Urban Lot Split by the owner, or a person acting in concert with the owner of the parcel sought to be split;

4. That requires demolition or alteration of any of the following types Council Regular Meeting, 8/5/2025, Item No. 15., Item Page 14, Packet Page 194 ATTACHMENT 1
of housing:

A. Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low- or very low-income;
B. Housing that is subject to any City ordinance imposing rent control;
C. Housing that has been occupied by a tenant in the last three years; or
D. A parcel on which an owner exercised the owner’s rights under Government Code section 7060 et seq. to withdraw
a unit from rent or lease within the past 15 years.

5. Located within a historic district or property included on the State Historic Resources Inventory, as defined in Public Resources Code section 5020.1, or within a site that is designated as a City landmark or historic property or historic district pursuant to a City ordinance; or

6. If the building official makes a written finding, based on a preponderance of the evidence, that the proposed housing development project would have a specific, adverse impact upon public health and safety, for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. c. Approval. An Urban Lot Split map shall be approved if the following criteria are met:

1. The parcel is located within a Single-Family Residential Zone;

2. The minimum lot size for both resulting parcels created by an
Urban Lot Split is no smaller than 1,200 square feet;

3. The lots created by an Urban Lot Split are of approximately equal area, such that no resulting parcel shall be smaller than 40 percent of the lot area of the original parcel proposed for subdivision;

4. There will be no more than two dwelling units of any kind (including primary dwelling units, accessory dwelling units, junior accessory dwelling units, density bonus units, and units created as a Two Unit Development pursuant to City Code section 38-26.1 et seq.) on a lot created through the Urban Lot Split;

5. No lot line would bisect any existing structure or would result in more than two dwelling units on any resulting parcel;

6. The development proposed on the parcels complies with all objective zoning standards, objective subdivision standards, and objective design review standards applicable to the parcel as Council Regular Meeting, 8/5/2025, Item No. 15., Item Page 15, Packet Page 195 ATTACHMENT 1
provided in the zoning district in which the parcel is located; provided, however, that:

A. The application of such standards shall not preclude two units, each with a unit size up to 800 square feet on the resulting parcels created pursuant to this chapter.

B. Notwithstanding subsection (6)(A) above, required rear and side yard setbacks shall equal at least four feet,
except that no setback shall be required for an existing structure or a structure constructed in the same location and to the same dimensions as an existing structure.

7. Each resulting parcel shall have access to, provide access to, or adjoin the public right-of-way. Resulting parcels that do not adjoin the public right-of-way shall provide an access easement no less than 12 feet wide and of the length required to connect the resulting parcel to the public right-of-way. This easement area shall be unobstructed and uninterrupted. The easement document shall be prepared at the owner’s expense and shall be recorded by City staff at the same time that the Urban Lot Split map is recorded. The easement shall contain a maintenance agreement to ensure shared maintenance of any shared access easements, landscaping, and private utilities, prior to final parcel map recordation. A covenant of easement shall be recorded pursuant to Monterey City Code, Article 8, Sections 33-8.00 through 33-

8.02. For purposes of meeting lot size criteria set forth in subsections (c)(2) and (c)(3) above, the easement does not reduce the lot size of the servient tenement (the land that provides the easement).

8. Proposed adjacent or connected dwelling units shall be permitted if they meet building code safety standards and are designed sufficiently to allow separate conveyance. The proposed dwelling unit shall provide a new or separate utility connection, including a separate sewer lateral, between each proposed dwelling unit and the utility. A connection fee or capacity charge may be charged that is proportionate to the size in square feet of the proposed dwelling units or their drainage fixture unit (DFU) values. Separate electric and water submeters shall be required for the proposed dwelling unit. Separate water meters shall be required for the proposed dwelling units when the City’s water purveyor is allowed to establish new water meters.

9. Parking. One off-street parking space that meets the Parking Dimension Standards adopted by the Planning Commission shall be required for each unit created by an Urban Lot Split, except that no parking may be required where:

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A. The parcel is located within one-half mile walking distance of either a stop located in a high-quality transit corridor, as defined in Public Resources Code section 21155(b), or a major transit stop, as defined in Public Resources Code section 21064.3; or
B. There is a designated parking area for one or more carshare vehicles within one block of the parcel.

10. Compliance with Subdivision Map Act. The Urban Lot Split shall conform to all applicable objective requirements of the Subdivision Map Act (commencing with Government Code Section 66410), except as otherwise expressly provided in Government Code section 66411.7 and this article. Notwithstanding Government Code section 66411.1, no dedications of rights-of-way or the construction of offsite improvements may be required as a condition of approval for an Urban Lot Split, although easements may be required for the provision of public services and facilities.

11. The correction of nonconforming zoning conditions may not be required as a condition of approval.

12. Parcels created by an Urban Lot Split shall be used for residential uses only and shall not be used for rentals of less than 30 days.

13. If any existing dwelling unit is proposed to be demolished, the owner will comply with the replacement housing provisions of Government Code section 66300.5 or successor provision.
d. Application Processing.

1. Applications for an Urban Lot Split shall be submitted to, and made on forms kept and updated by, the Director, who shall be responsible for determining within 60 days of receipt of a completed application whether an Urban Lot Split meets the requirements for ministerial approval.

2. An application shall include an affidavit from the property owner, signed under penalty of perjury that:

A. The owner (if multiple owners, at least one owner) intends to occupy one of the housing units on the newly created parcels as their principal residence for a minimum of three years from the date of the recording of the parcel map.

This subsection shall not apply to a "community land trust," as defined Revenue and Taxation Code section
402.1(a)(11)(C)(ii) or a "qualified nonprofit corporation" as described in Revenue and Taxation Code section 214.15.

B. If any existing housing is proposed to be altered or demolished, the owner shall state that none of the
conditions listed in subsection (b)(4) exist and shall provide a comprehensive history of the occupancy of the units to be altered or demolished for the past three years (five years if an existing unit is to be demolished).

C. That neither the owner or applicant, nor any person acting in concert with the owner or applicant, has previously
subdivided an adjacent parcel using an Urban Lot Split.

Council Regular Meeting, 8/5/2025, Item No. 15., Item Page 17, Packet Page 197 ATTACHMENT 1

3. The City Manager or their designee is authorized to execute the restrictive covenant required under this Section on behalf of the City and to deliver any approvals or consents required by the covenant. Prior to approval and recordation of the parcel map, the applicant shall record a restrictive covenant in the form prescribed by the city attorney, which shall run with the land and provide for the following:

A. A prohibition against further subdivision of the parcel using the Urban Lot Split procedures as provided for in this
article;
B. A prohibition on non-residential uses of the parcel created by an Urban Lot Split; and
C. A prohibition against renting or leasing the units for fewer than 30 consecutive calendar days.

D. A maximum of two dwelling units of any kind, including but not limited to primary dwelling units, accessory dwelling units, and junior accessory dwelling units, are permitted on a lot created through an Urban Lot Split unless approved as an affordable unit incentive pursuant to City Code
section 38-26.1(g)(1)(A).

SECTION 15: All ordinances and parts of ordinances in conflict herewith are hereby not applicable to Urban Lot Splits in Single Family Residential Zones.

SECTION 16: Monterey City Code, Chapter 33, Article 8, Merger of Substandard Lots, Sections 33-100 through 33-102 are hereby recodified as Article 9, Sections 33-9.00 through 33-9.02.

SECTION 17: Monterey City Code, Chapter 33, Article 9, Covenant of Easement, is hereby recodified as Article 8, Sections 33-8.00 through 33-8.08.

SECTION 18: If any section, sub-section, sentence, clause, phrase or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Ordinance. The City Council hereby declares that it would have adopted the Ordinance and each section, sub-section, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, sub-sections, sentences, clauses, phrases or portions to be declared invalid or unconstitutional.

SECTION 19: This ordinance shall be in full force and effect thirty (30) days from and after its final passage and adoption.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this _____ day of _______, 202_, by the following vote:

AYES: COUNCILMEMBERS:

Council Regular Meeting, 8/5/2025, Item No. 15., Item Page 18, Packet Page 198 ATTACHMENT 1
NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

APPROVED:

ATTEST:

Mayor of said City
City Clerk thereof
Council Regular Meeting, 8/5/2025, Item No. 15., Item Page 19, Packet Page 199 ATTACHMENT 2
ORDINANCE NO. ____ C.S.

AN ORDINANCE OF THE COUNCIL OF THE CITY OF MONTEREY
№09/24

AMENDING THE ZONING ORDINANCE TO AUTHORIZE MINISTERIAL APPROVAL OF

TWO-UNIT HOUSING DEVELOPMENT IN SINGLE-FAMILY ZONING DISTRICTS THE COUNCIL OF THE CITY OF MONTEREY DOES ORDAIN, as follows:

SECTION 1:

WHEREAS, on September 16, 2021, Senate Bill 9 added Government Code section 65852.21, allowing additional housing units on properties within single-family zones; WHEREAS, state law allows a local agency to adopt an ordinance to implement the provisions in Senate Bill 9;
WHEREAS, the City of Monterey (the "City”) has implemented land use policies based on the City's General Plan, which provide an overall vision for the community and balance important community needs, and the City seeks to ensure that Senate Bill 9 projects are consistent with those policies. The proposed amendments to the Monterey City Code implement requirements of state law and add local policies that are consistent with the state law and implement the City’s General Plan;
WHEREAS, the City Council finds that the provisions of this ordinance are consistent with the City's General Plan 2023-31 Housing Element Housing Action Plan Program I-J to promote and facilitate Senate Bill 9 housing as appropriate in Monterey. Further, to promote housing opportunities for very low-income families in single-family neighborhoods in Monterey, this ordinance would allow up to six units on what is currently a single-family parcel if the property owner commits to making at least one of the additional units affordable to households earning less than 50 percent of the Monterey County area median income (AMI) through a longterm affordability agreement; WHEREAS, this ordinance allows for the maximum development of four units per parcel.

An example of development options is demonstrated in this illustration:

WHEREAS, the proposed code amendments are intended to implement Senate Bill 9 and are not considered a project under Division 13 (commencing with Section 21000) of the Council Regular Meeting, 8/5/2025, Item No. 15., Item Page 20, Packet Page 200 ATTACHMENT 2
Public Resources Code, as provided in Government Code Sections 65852.21(j) and 66511.7(n).

NOW THEREFORE, the Monterey City Council declares as follows:

SECTION 2: The above recitals are true and correct and are hereby incorporated and adopted as findings of the City Council as if fully set forth herein.

SECTION 3: The following definitions are added in alphabetical order to Chapter 38, Article 3, Section 38-11, Definitions, as follows:
“Single-Family Zoning Districts” means property zoned R-E Residential Estate District, R-1 Residential Single-Family District, or PC Planned Community Zoning District where the General Plan land use designation is Low Density Residential.
“Specific adverse impact” is a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. Inconsistency with the zoning ordinance or general plan land use designation, and eligibility to claim a welfare exemption under Revenue and Taxation Code section 214(g), shall not constitute a specific adverse impact.
"Two-Unit Development" means a development that proposes no more than two new units or proposes to add one new unit to one existing unit on a lot. For purposes of this definition, a unit means any dwelling unit, including but not limited to a primary dwelling unit, an accessory dwelling unit, or a junior accessory dwelling unit.

SECTION 4: Chapter 38, Article 5A, Two-Unit Development in Single Family Residential Zoning Districts, is hereby added as follows:
“Section 38-26.1, Two-Unit Development.
a. Purpose. This section sets forth special regulations applicable to the construction of two dwelling units in the Single Family Zoning Districts pursuant to Government Code section 65852.21. In the event of a conflict between the provisions of this section and the generally applicable regulations in Chapter 38, the more permissive provisions shall prevail.
b. Application Process. The City shall ministerially review and approve or deny an application for a Two-Unit Development in Single Family Zoning Districts as provided by Government Code section 65852.21 and this article. Applications for a Two-Unit Development shall be submitted to, and made on forms kept and updated by, the Community Development Director, who shall be responsible for determining within 60 days of receipt of a completed application whether a TwoUnit Development application meets the requirements for ministerial approval. c. Denial. A Two-Unit Development shall be denied for any parcel:

1. Described in Government Code section 65913.4(a)(6)(B) Council Regular Meeting, 8/5/2025, Item No. 15., Item Page 21, Packet Page 201 ATTACHMENT 2
through (a)(6)(K), incorporated herein by reference, as that section read on September 16, 2021. Such parcels include, for example, parcels located in earthquake fault zones, hazardous waste sites, wetlands, very high fire severity zones (unless the site has adopted certain fire hazard mitigation measure), and in special flood hazard areas or regulatory floodways, protected habitats, etc.

2. That requires demolition or alteration of any of the following types of housing:

A. Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low- or very low-income.

B. Housing that is subject to any City ordinance imposing rent control.

C. Housing that has been occupied by a tenant in the last three years.

D. A parcel on which an owner exercised the owner’s rights under Government Code section 7060 et seq. to withdraw
a unit from rent or lease within the past 15 years.

3. Located within a historic district or property included on the State Historic Resources Inventory, as defined in Public Resources Code section 5020.1, or within a site that is designated as a City landmark or historic property or historic district pursuant to a City ordinance;

4. Created by an Urban Lot Split under Chapter 33, Article 7 that would result in more than two units of any kind per parcel, including primary dwelling units, accessory dwelling units, junior accessory dwelling units, on parcels unless there is compliance with the affordability criteria set forth in subsection (g); or

5. If the building official makes a written finding, based on a preponderance of the evidence, that the proposed housing development project would have a specific, adverse impact upon public health and safety, for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. d. Approval. A Two-Unit Development shall be ministerially approved if the following criteria are met:

1. The parcel is located in a Single-Family Residential Zoning District.

2. The dwelling units in the Two-Unit Development may be new construction and/or converted from an existing, permitted structure that meets the requirements of this article.

3. The proposed Two-Unit Development complies with all objective zoning standards, objective subdivision standards, and objective Council Regular Meeting, 8/5/2025, Item No. 15., Item Page 22, Packet Page 202 ATTACHMENT 2
design review standards applicable to the parcel as provided in the zoning district in which the parcel is located; provided, however, that:

A. The application of such standards shall be
modified as required to physically allow the
construction of two units up to 800 square feet
each.

B. Notwithstanding subsection (3)(A), required rear
and side yard setbacks shall equal at least four
feet, except that no setback shall be required for
an existing structure or a structure constructed in
the same location and to the same dimensions as
an existing structure.

4. As defined in Monterey City Code Chapter 37, section 37-2, protected tree(s) whose dripline is within the proposed footprint of any unit constructed in a development at the time of application shall be replaced onsite. The replacement ratio shall be two replacement trees per tree impacted. Replacement tree(s) shall be provided in addition to all other required landscaping pursuant to objective standards and shall be installed prior to final occupancy of the proposed development. The replacement tree(s) shall be minimum 15 gallon container size at time of planting and be of the same size or a greater size at maturity as the tree(s) being removed. The replacement tree(s) shall be any one or more of the species listed on the City of Monterey Urban Forestry’s online list of trees suitable for Monterey, unless the tree(s) being removed are Monterey Pine, Monterey Cypress, or Coast Live Oak, then the replacement trees shall be of those same species.

5. Proposed adjacent or connected dwelling units shall be permitted if they meet building code safety standards and are designed sufficiently to allow separate conveyance. The proposed dwelling units shall provide a new or separate utility connection, including a separate sewer lateral, between the proposed dwelling units and the utility. A connection fee or capacity charge may be charged that is proportionate to the size in square feet of the proposed dwelling units or their drainage fixture unit (DFU) values. Separate electric and water submeters shall be required for the proposed dwelling units. Separate water meters shall be required for the proposed dwelling units when the City’s water purveyor is allowed to establish new water meters.

6. Parking. One off-street parking space shall be required per unit constructed via the procedures set forth in this article, except that the City shall not require any parking where:

Council Regular Meeting, 8/5/2025, Item No. 15., Item Page 23, Packet Page 203 ATTACHMENT 2
A. The parcel is located within one-half mile walking
distance of either a stop located in a high-quality
transit corridor, as defined in Public Resources
Code section 21155(b), or a major transit stop, as
defined in Public Resources Code section
21064.3; or
B. There is a designated parking area for one or
more car-share vehicles within one block of the
parcel.

7. Dwelling units created by a Two-Unit Development may be used for residential uses only and may not be used for rentals of less than 30 days.

8. If any existing dwelling unit is proposed to be demolished, the owner will comply with the replacement housing provisions of Government Code section 66300.5 or successor provision. e. Declaration of Prior Tenancies. If any existing housing is proposed to be altered or demolished, the owner of the property proposed for a Two-Unit Development shall sign an affidavit, in the form approved by the city attorney, stating that none of the conditions listed in subsection (c)(2)(C) and (c)(2)(D) exist and shall provide a comprehensive history of the occupancy of the units to be altered or demolished for the past three years (five years if an existing unit is to be demolished).
f. Recorded Covenant. The City Manager or their designee is authorized to execute the restrictive covenant required under this Section on behalf of the City and to deliver any approvals or consents required by the covenant. Prior to the issuance of a building permit, the applicant shall record a restrictive covenant in the form prescribed by the city attorney, which shall run with the land and provide for a prohibition on non-residential use of any units developed or constructed through the Two-Unit Development procedure, including a prohibition against renting or leasing the units for fewer than 30 consecutive calendar days. g. Affordable Unit Incentives.

1. If at least one dwelling unit in the Two-Unit Development is made available at affordable rent or affordable housing cost to a very low income household (the “Affordable Unit”), as defined in Health & Safety Code section 50105, the Two-Unit Development will qualify for the following incentives:

A. If the Two-Unit Development is developed on a
parcel created through an Urban Lot Split, the
total number of dwelling units allowed across both
Council Regular Meeting, 8/5/2025, Item No. 15., Item Page 24, Packet Page 204 ATTACHMENT 2
parcels will be increased from four to six dwelling
units, with no more than four dwelling units
allowed on a single parcel. All three dwelling unit
types (i.e., primary dwelling units, accessory
dwelling units, and junior accessory dwelling
units) count toward this six dwelling unit limit.

B. If the requirements of the underlying residential
zoning district, any applicable overlay district, and
all other applicable provisions of this Chapter
would restrict the size of the dwelling units in a
Two-Unit Development to 800 square feet, the
size of one of the primary dwelling units in the
Two-Unit Development shall be allowed to go up
to 1,000 square feet if two or more bedrooms are
provided.

2. Prior to the issuance of a building permit for any new dwelling unit incorporating either or both of the incentives in Section (f)(1) above, the property owner must record a regulatory agreement against the parcel that is or will concurrently be developed with the Affordable Unit. The regulatory agreement shall be in the form provided by the City Attorney’s Office restricting the sale or rental of the Affordable Unit such that the Affordable Unit will be sold or rented to a very low income household, as defined in Health & Safety Code section 50105, at an affordable housing cost or affordable rent (the “Regulatory Agreement”). The City Manager or their designee is authorized to execute the regulatory agreement on behalf of the City and to deliver any approvals or consents required by the covenant.

SECTION 5: All ordinances and parts of ordinances in conflict herewith are not applicable to two unit ministerial developments processed under this ordinance.

SECTION 6: If any section, sub-section, sentence, clause, phrase or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Ordinance. The City Council hereby declares that it would have adopted the Ordinance and each section, sub-section, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, sub-sections, sentences, clauses, phrases or portions to be declared invalid or unconstitutional.

SECTION 7: This ordinance shall be in full force and effect thirty (30) days from and after its final passage and adoption.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this _____ day of _______, 202_, by the following vote:

Council Regular Meeting, 8/5/2025, Item No. 15., Item Page 25, Packet Page 205 ATTACHMENT 2
AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

APPROVED:

ATTEST:

Mayor of said City
City Clerk thereof
Council Regular Meeting, 8/5/2025, Item No. 15., Item Page 26, Packet Page 206 Council
Agenda Report
FROM: Kimberly Cole, AICP, Community Development Director Prepared By: Jose Acosta, HCD Coordinator
SUBJECT: Approve Changes to Rental Assistance Program (RAP) Guidelines (Not a Project Under CEQA per Article 20, Section 15378 and Under General Rule Article 5, Section 15061)
RECOMMENDATION:

That the City Council adopt a resolution approving
changes to Rental Assistance Program (RAP)
Guidelines.

VALUE DRIVERS:

Support efforts and policies that provide equitable
access to affordable housing in Monterey and the
region.

POLICY IMPLICATIONS:

The City Council could direct staff to make additional
changes to the City’s Rental Assistance Program (RAP).

This program provides rental assistance resources to
members of the community in need through an
application to the Housing Division. This program would be consistent with the City Council’s vision and strategic initiative of “Working to improve the quality of life of our residents.”

CAMPAIGN DISCLOSURE REQUIREMENT (LEVINE
ACT) APPLIES: No.

FISCAL IMPLICATIONS:

The City Council allocated $250,000 for this program in FY 2025-2026.

ENVIRONMENTAL DETERMINATION:

The City of Monterey determined that the proposed
action is not a project as defined by the California
Environmental Quality Act (CEQA) (CCR, Title 14,
Chapter 3 (“CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty Agenda Report Highlights
 The City of Monterey launched a
Rental Assistance Program in April
2024 to address housing
affordability challenges, providing
$304,590.93 in assistance to 94
households.
 Proposed changes aim to prioritize
lower-income residents, prevent
evictions, and address lessons
learned from the pilot program.
 Applicants must meet stricter
eligibility criteria, including income
limits, asset thresholds, and proof of
housing instability.
 Fraud prevention measures include
penalties for misrepresentation and
repayment requirements for
landlords receiving funds under
false pretenses.
 Utility assistance would be limited to
essential services like water, sewer,
gas, and electricity, excluding
internet and streaming services.

Date: 8/5/2025
Item No.: 16.

Council Regular Meeting, 8/5/2025, Item No. 16., Item Page 1, Packet Page 207 №10/24
that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

ALTERNATIVES CONSIDERED:

The City Council can propose additional changes to the RAP Guidelines.

DISCUSSION:

City of Monterey Rental Assistance Programs
Previous City Rental Assistance programs have provided financial relief for members of the Monterey community. As the first program of its kind and the only one in Monterey County, the City of Monterey launched an Emergency Rental Assistance Program (ERAP) in April 2020, spending almost $1 million (assisting 162 households) with the City’s Community Development Block Grant (CDBG) housing program income funds in response to financial hardships resulting from the COVID-19 pandemic. In 2021, the City of Monterey administered the ERAP funds totaling approximately $1.25 million on behalf of the United Way of Monterey County, benefiting 128 households. Combined, the two programs benefited 290 households.

As federal COVID-19 assistance ceased, the City Council expressed interest in early 2024 in establishing a local Rental Assistance Program funded by the City of Monterey for its residents.

Current Program
The City of Monterey initiated a new Rental Assistance Program on April 17, 2024. This program was launched in response to ongoing housing challenges and lack of affordability experienced by renters in the City of Monterey. Pandemic aid ended after the COVID crisis, and people still face a lack of affordability in their housing situations. The 2024 Monterey Rental Assistance Program provided rental assistance to eligible households faced with housing instability issues. This pilot program was funded with General Fund dollars, which allowed the Program to not be prescribed by federal or state pass-through regulations. This approach allowed the City Council to customize the program to best fit the needs of renters in Monterey.

From April 17, 2024 to June 26, 2025, the City assisted 94 individuals and families and provided approximately $304,590.93 in rental assistance. Of the 94 assisted, 15 were served either with eviction notices from their landlord or a shut-off notice from their utility company. Twelve (12) of the 15 were served with a three-day eviction notice and three were issued a shut-off notice from their utility company. Of the applications reviewed, 15 were denied assistance due to ineligibility, and 13 applicants submitted fraudulent information in their application, such as false pay stubs or false landlord information.

The maximum amount of rental assistance allowed in the program guidelines is $5,000 per applicant with an additional amount of $3,000 allowed for utilities, financial counseling, or onetime legal assistance. The City has provided an average of $3,902.42 per applicant. Out of the total number of applicants, 54% were comprised of a one-person household and 46% were from a household of more than one person.

Council Regular Meeting, 8/5/2025, Item No. 16., Item Page 2, Packet Page 208 №10/24
The following are the income levels of the 94 applicants who received funding:
 17% Acutely Low (16 applicants)
 19% Extremely Low (18 applicants)
 21% Very Low (20 applicants)
 30% Low (28 applicants)
 13% Moderate (12 applicants)
Table 1
HCD Income Limits (2024)
The program is effective and assists applicants in need. The first-come, first-served approach is working, and the funding amounts are meeting the needs of the recipients.

The program assists up to 10 qualified applicants per month on a first-come, first-serve basis.

City staff accepts no more than 20 applications per month, reviews eligibility of those applicants, and provides funds to as many as possible in the top 20.

Recommended Changes to Program
Staff is recommending changes to the program guidelines to better serve lower income residents in need and ensure funds are available for those at risk of eviction. The proposed changes also reflect lessons learned.

Proposed Changes to the program are detailed below.

Recommended Program Changes
Income Limit
People earning less than 80% of Area Median Income (AMI) based on annual State of California Housing and Community Development (HCD) Income Limits for Monterey County
Applicants must provide a notice that they are at or near eviction due to being unable to pay rent, such as a job loss, medical emergency, illness, 3- Day Notice to Pay-or-Quit, loss of income due to a major life event, injury etc.

Demonstrating
Need
The program is intended for rental assistance and not to subsidize lifestyle expenses.

Assets
Applicants cannot receive assistance if they have more than $5,000 in accessible/liquid and/or real property assets (bank accounts, checking accounts, and/or real property, etc.).

Council Regular Meeting, 8/5/2025, Item No. 16., Item Page 3, Packet Page 209 №10/24
Excessive Debt
If applicants have excess car payments, credit card payments, parking or speeding tickets, medical bills, or other excessive bills, one month of assistance will be provided and applicants may reapply. Additional assistance will be based on the applicants making improvements to their financial situation.

If the rental cost burden is greater than 50% of the applicant’s gross income for more than six months, one month of assistance will be provided.

Applicants may reapply and additional assistance will be subject to the applicant’s ability to demonstrate decreased rent cost burden. The Housing Manager will determine if the applicant has taken sufficient steps to Applicant Rent decrease their rental cost burden.

Burden If the rental cost burden is greater than 50% of the applicant’s gross income for one month, one month of assistance will be provided. Applicants may reapply and additional assistance will be subject to the applicant’s ability to demonstrate decreased rent cost burden. The Housing Manager will determine if the applicant has taken sufficient steps to decrease their rental cost burden.

Lease
Applicants must provide a copy of the executed contract that sets forth the terms of the lease for any type of assistance in the City’s Rental Assistance Program.

Maximum
Assistance
Allow applicants to apply up to three times/year in a calendar year with a maximum of $5,000 in rental assistance. Applicants in a household are only eligible for maximum of $5,000 of assistance in a calendar year once every three years.

If the applicant is in a unit that is too expensive and if they demonstrate they are extremely cost burdened due to their rent being over 50% of their gross income, the City will assist with covering one month of rent and they may reapply if they have moved to a less expensive unit.

Applicants living in a unit that has more bedrooms than the number of people living in the unit, the City will not provide rental assistance. Unit Eligibility All applicants over 18 years old in a household are only eligible to receive up to $5,000 in rental assistance within a three-year period. Also, if a family member moves out of the primary household, they are not eligible for rental assistance at the new location unless there is a special circumstance as determined by the Housing Manager (e.g., divorce, domestic violence, etc.)
Timelines Applicants must meet City deadlines and provide required information or they are not eligible for that month.

Applicants must sign under penalty of perjury that their application is true and correct. If it is deemed that information has been misrepresented, they are deemed ineligible for funding, may not apply again for funding, and they may be referred for a criminal investigation/prosecution Fraud, Security
and Repayment
Provisions If an applicant provided false information and was provided funding through the program, the landlord must repay the City funding received.

Deposit
Assistance
If the City provides deposit assistance (only allowed within City limits), a copy of the executed contract setting forth the terms of the lease is required. If the tenant does not move into the unit, the landlord must repay the deposit to the City. Deposit assistance will no longer be a loan.

Part-Time
Employment
Income loss from a reduction in naturally fluctuating/seasonal part-time hours is not considered a valid loss of income (i.e., working during the Council Regular Meeting, 8/5/2025, Item No. 16., Item Page 4, Packet Page 210 №10/24
school year and not working over the summer). This will be up to the discretion of the Housing Manager.

Utility
Assistance
Utility assistance will only assist for water, sewer, gas, and electric.

Internet, streaming services, and cable will not be reimbursed by this program.

Conclusion
City staff understands this has been a pilot program and can return to Council to modify the program if continued in future fiscal years. It is also important to note that staff expects many lessons to be learned as the program continues. The City is gaining valuable information on the needs of renters and how rental assistance can provide support.

There are limited funds and programs available to the public. When the program launched, staff received hundreds of calls from people in need from all over Monterey County. Many callers were Spanish-only speakers and live in Salinas and South County. The City also received calls from other Peninsula cities including Seaside, Pacific Grove, and Marina. Of the 491 calls staff have documented, more 105 have been from Salinas, 79 have been from the City of Monterey, 21 have been from Marina, 12 from Soledad, four from Gonzales, seven from King City, five from Greenfield, 15 from Seaside, and six from Pacific Grove.

Many people need rental assistance and there are few resources and programs. The City of Monterey has stepped up to offer a safety net to its residents through the rental assistance program. The Rental Assistance Program provides cost-burdened tenants a safety net and is a best practice to prevent homelessness. The continued number of calls staff receives from people throughout the County attests to the continued need as people’s financial needs change.

Staff recommends that the program continue with the proposed modifications and hopes that other cities and the County join the City of Monterey and create programs to help people in their jurisdictions.

KC/ja
Attachments: 1. Resolution

2. Guidelines
e: Housing list
Writings distributed for discussion or consideration on this matter within 72 hours prior to the meeting, pursuant to Government Code § 54957.5, will be made available at the following link:
https://monterey.gov/Submitted-Comments
Council Regular Meeting, 8/5/2025, Item No. 16., Item Page 5, Packet Page 211 RESOLUTION NO. __-___ C.S.

A RESOLUTION OF THE COUNCIL OF THE CITY OF MONTEREY
№011/24

APPROVING MONTEREY RENTAL ASSISTANCE PROGRAM GUIDELINES WHEREAS, the City Council approved a Rental Assistance Program in 2024, and the program was launched on April 17, 2024;
WHEREAS, between April 17, 2024 – June 26, 2025, the City assisted 94 individuals and families and provided approximately $304,590.93 in rental assistance. Of the 94 assisted, 15 were served either with eviction notices from their landlord or a shut-off notice from their utility company. Twelve (12) of the 15 were served with a three-day eviction notice and three were issued a shut-off notice from their utility company. Of the applications reviewed, 15 were denied assistance due to ineligibility, and 13 applicants submitted fraudulent information in their application, such as false pay stubs, false landlord information, and other false information; WHEREAS, city staff has recommended additional changes to the program guidelines to better serve lower income residents in need and ensure funds are available for those who need rental assistance and are at risk of eviction;
WHEREAS, the City of Monterey determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CCR, Title 14, Chapter 3 (“CEQA Guidelines”) Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action has no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or any reasonably foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability; and

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that the above recitals are true and correct and are hereby incorporated and adopted as findings of the City Council as if fully set forth herein.

NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF MONTEREY that it hereby approves the Monterey Rental Assistance Program Guidelines.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF MONTEREY this _____ __ 2025, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Council Regular Meeting, 8/5/2025, Item No. 16., Item Page 6, Packet Page 212 2 APPROVED:

ATTEST:

Mayor of said City
City Clerk thereof
Council Regular Meeting, 8/5/2025, Item No. 16., Item Page 7, Packet Page 213 ATTACHMENT 2

CITY OF MONTEREY
City of Monterey Rental Assistance
Program Guidelines
Updated August 2025
About the Program
The City of Monterey Rental Assistance Program (RAP) provides rental assistance to eligible applicants in the City of Monterey. The City has a history of providing rental assistance. The City launched an Emergency Rental Assistance Program (ERAP) in April 2020 and then administered additional funding on behalf of the United Way of Monterey County in 2021 with the objective of mitigating potential homelessness and displacement of existing Monterey residents and workers who experienced a decrease in household income due to the COVID-19 pandemic, and thus, unable to pay their rent. The City expanded its program efforts in 2024.

The RAP aims to provide rental assistance grants to assist eligible applicants. The assistance could pay for:
 Deposit Assistance
 Housing Relocation and stabilization (only within the City of Monterey)  Short-term rental assistance (maximum of 3-months of rental assistance)  Covering rent increases
 Delinquent rent/rental arrears
 Financial Assistance (Paying another cost to assist with rent payment)  Application Fees
 Utility Assistance (electric, gas, and water only)
The City is providing a much-needed resource to ensure residents of Monterey stay housed.

The program is funded through the City’s General Fund. Utilizing general funds for this program allows for the greatest flexibility for the City to assist applicants and allow the City Council to determine the parameters of the program.

Applicant Eligibility
In order to be eligible for the Rental Assistance Program, applicants must meet the following requirements:
 Live in the City of Monterey (prove Monterey residency for at least 1-year of continuous residency prior to receiving assistance).
 Applicants cannot receive assistance if they have more than $5,000 in liquid and/or real property assets (Savings accounts, checking accounts, real property, etc.).

Council Regular Meeting, 8/5/2025, Item No. 16., Item Page 8, Packet Page 214 ATTACHMENT 2
 The city will not provide rental assistance to applicants who live in a unit with more bedrooms than the number of people living in the unit
 If an applicant has exhausted the total assistance available, no resident of the same unit will be eligible for assistance while the original applicant remains on the lease or continues to reside in the unit.
 Applicants must meet the City’s submission and response deadlines. If they are unable to meet a deadline, they will not be eligible for that month and will have the opportunity to reapply in the future.
 Demonstrate a history of making rent payments.
 Be able to provide an executed contract that sets forth the terms of the lease agreement  Make less than 80% of Area Median Income (the below AMI chart will be updated annually based on State of California Housing and Community Development (HCD) Income Limits for Monterey County)
 In order to be eligible for the program, applicants must sign under penalty of perjury that their application is true and correct. If misinformation is provided, they are not eligible to apply again and they may be referred for criminal investigation/prosecution.. .

Rental Assistance Committee
City staff reviews applications based on the guidelines to determine funding amounts for each application.

Amount and Type of Assistance
Rental Assistance
Rental Assistance covers only funds for rent that is paid directly to the landlord. The City will provide up to three months of rental assistance in an amount not to exceed $5,000. Applicants will be allowed to apply up to 3 times per calendar year with a maximum of $5,000 in rental assistance annually (from the time of their first application).

Deposit Assistance
Deposit Assistance covers an applicant’s deposit for a unit within the City of Monterey. Deposit Council Regular Meeting, 8/5/2025, Item No. 16., Item Page 9, Packet Page 215 ATTACHMENT 2
assistance is allowed as part of the $5,000 of rental assistance and is allowed once from the time of an applicant’s first application.

Other Assistance
Other assistance may include utility assistance, one-time legal assistance, and financial counseling. This type of assistance will not exceed $3,000.

Total assistance for rental assistance, deposit assistance, and other assistance will not exceed $8,000 from the time of the applicant’s first application.

It is not a requirement for an applicant to accept additional assistance, however, if needed and requested, City staff will work with other non-profit organizations that provide counseling and housing services to provide additional resources and support. Other one-time assistance will be capped at $3,000 per applicant. Payments for one-time assistance for housing counseling and legal assistance would be paid to the City’s contracted non-profit agency that provides these services.

Additional program requirements are detailed in the following table.

Monterey Rental Assistance Program Requirements
Income
Eligibility Limit
People earning less than 80% of Area Median Income (AMI) based on annual State of California Housing and Community Development (HCD) Income Limits for Monterey County
Applicants must provide a notice that they are at or near eviction due to being unable to pay rent, such as a job loss, medical emergency, illness, 3- Day Notice to Pay-or-Quit, loss of income due to a major life event, injury etc.

Demonstrating
Need
The program is intended for rental assistance and not to subsidize lifestyle expenses.

Assets
Applicants cannot receive assistance if they have more than $5,000 in accessible/liquid and/or real property assets (bank accounts, checking accounts and/or real property, etc.).

Excessive Debt
If applicants have excess car payment, credit card payments, parking or speeding tickets, medical bills, or other excessive bills, one month of assistance will be provided and applicants may reapply. Additional assistance will be based on the applicants making improvements to their financial situation.

If the rental cost burden is greater than 50% of the applicant’s gross income for more than six months, one month of assistance will be provided.

Applicants may reapply and additional assistance will be subject to the applicant’s ability to demonstrate decreased rent cost burden. The Housing Manager will determine if the applicant has taken sufficient steps to Applicant Rent decrease their rental cost burden.

Burden If the rental cost burden is greater than 50% of the applicant’s monthly gross income for one month, one month of assistance will be provided.

Applicants may reapply for assistance and will be subject to the applicant’s ability to demonstrate decreased rent cost burden. The Housing Manager will determine if the applicant has taken sufficient steps to decrease their rental cost burden.

Lease
Applicants must provide a copy of the executed contract that sets forth the terms of the lease for any type of assistance in the City’s Rental Assistance Program.

Council Regular Meeting, 8/5/2025, Item No. 16., Item Page 10, Packet Page 216 ATTACHMENT 2
Maximum
Assistance
Allow applicants to apply up to three times/year in a calendar year with a maximum of $5,000 in rental assistance. Applicants in a household are only eligible for maximum of $5,000 of assistance in a calendar year once every three years.

If the applicant is in a unit that is too expensive and if they demonstrate they are extremely cost burdened due to their rent being over 50% of their gross income, the City will assist with covering one month of rent and they may reapply if they have moved to a less expensive unit.

Applicants living in a unit that has more bedrooms than the number of people living in the unit, the City will not provide rental assistance. Unit Eligibility All applicants over 18 years old in a household are only eligible to receive up to $5,000 in rental assistance within a three-year period. Also, if a family member moves out of the primary household, they are not eligible for rental assistance at the new location unless there is a special circumstance as determined by the Housing Manager (i.e. divorce, domestic violence, etc.)
Timelines Applicants must meet City deadlines and provide required information or they are not eligible for that month.

Applicants must sign under penalty of perjury that their application is true and correct. If it is deemed that information has been misrepresented, they are deemed ineligible for funding and may not apply again for funding, and they may be referred for a criminal investigation/prosecution.

Fraud, Security
and Repayment
Provisions If an applicant provided false information and was provided funding through the program, the landlord must repay the City all funding received.

Deposit
Assistance
If the City provides deposit assistance (only allowed within City limits), a copy of the executed contract setting forth the terms of the lease is required. If the tenant does not move into the unit, the landlord must repay the deposit to the City.

Part-Time
Employment
Income loss from a reduction in naturally fluctuating/seasonal part-time hours is not considered a valid loss of income (i.e. working during the school year and not working over the summer). This will be up to the discretion of the Housing Manager.

Utility
Assistance
Utility assistance will only assist for water, sewer, gas, and electric.

Internet, streaming services, and cable will not be reimbursed by this program.

Payments
Payments will be made directly to the applicant’s landlord or property management firm. No direct payments will go to Monterey Rental Assistance Program applicants. Other housing services will be paid through agreements with non-profit organizations who provide those services. Utility assistance goes directly to the utility provider.

Funding Availability
The City of Monterey has dedicated $250,000 for rental assistance for Fiscal Year 2025-2026.

Eligible applicants are primarily accepted on a first-come, first-serve basis. City staff will assist up to ten applicants per month.

No Duplication of Benefits
Rental Assistance best practices recommend that the City of Monterey staff check to see that the Council Regular Meeting, 8/5/2025, Item No. 16., Item Page 11, Packet Page 217 ATTACHMENT 2
Rental Assistance will not result in a duplication of benefits to the applicant, meaning that the housing cost has not or will not be paid by another source. To ensure that there is no duplication of benefits, applicants must inform the City of Monterey about other financial assistance they are receiving so that the City may verify that no duplication of benefits will occur if the applicant receives Rental Assistance from the City. Receiving other financial aid does not disqualify someone from applying, but receiving other financial aid may limit the amount of Rental Assistance an applicant is eligible to receive.

Requirements for Signatures and Penalties
Applicants must sign under penalty of perjury that their application is true and correct. If it is deemed that information has been misrepresented, they are deemed ineligible for funding and may not apply again for funding.

Required Documentation for Tenants and Landlords
Applicants must provide the following documentation to the City of Monterey Housing Programs Office:
 Cover Letter explaining your hardship that meets program guidelines and why rental assistance is needed
 Completed City provided budget worksheet
 Three years of most recent Federal income tax returns  Six months of most recent bank statement for all bank accounts (checking/savings) and written explanation for each deposit
 Industry Standard Lease Agreement
 Photo ID for each member of the household 18 years or older  Self-Certification of Income
 For employment:
o Minimum of 3 months of check stubs, more can be requested by staff. (if still employed)
o Hour reduction notification from employer (if hours reduced) o Unemployment Award Letter from a state or federal unemployment (if unemployed) or Termination Letter
 Rent Due notices
 Landlord verification that applicant was current on rent or making payments  Landlord’s W9 and contact information for payment
 Information relating to other financial assistance you are receiving (see Duplication of Benefits)
 Landlord may allow inspection of the unit
 Landlord may consider forgiving back rent not covered by the program  Landlord may consider accepting a fraction (ex: 80%) of rent as payment-in-full  Landlord may consider waiving late fees
 Landlord may consider to not move forward with an eviction for a specified length of time
Council Regular Meeting, 8/5/2025, Item No. 16., Item Page 12, Packet Page 218 ATTACHMENT 2
Application Process
Applicants must complete the City of Monterey’s online Rental Assistance Program application at Monterey.gov/housing.

City Staff will contact applicants within one (1) week of their application submission to discuss the application.

Record Retention
The City of Monterey Housing Programs Office will keep all records for each applicant in accordance with City requirements.

Contact
The City of Monterey Housing Programs Office is available to answer questions about the Monterey Rental Assistance Program by phone at 831-646-3995 or by email at [email protected]
Council Regular Meeting, 8/5/2025, Item No. 16., Item Page 13, Packet Page 219