DATE: JUNE 16, 2026
DEPARTMENT: COMMUNITY DEVELOPMENT DEPARTMENT
FROM: LISA BRINTON, DIRECTOR
THROUGH: COURTNEY GROSSMAN, PLANNING MANAGER
BY: SON PHAM-GALLARDO, SENIOR PLANNER
TITLE: PLANNED UNIT DEVELOPMENT PERMIT 2025-003 (PUD 2025-003) AND CONDITIONAL USE PERMIT 2025-025 (CUP 2025-025); REQUEST TO CONSTRUCT 88 AFFORDABLE MULTIFAMILY HOUSING UNITS WITH A 4,335 SQUARE FOOT DAYCARE CENTER LOCATED AT 200 CASENTINI STREET IN THE RESIDENTIAL HIGH DENSITY (R-H-2.1-F) FLOOD OVERLAY ZONING DISTRICT RECOMMENDED MOTION:
A motion to approve a Resolution affirming the findings that the City Council:
Find the project exempt pursuant to Sections 15165, 15303 and 15332 of the CEQA Guidelines; Approve a Planned Unit Development Permit (PUD 2025-003) to construct 88 multifamily residential units with a 2,400 square foot leasing/amenity building and related site improvements, subject to administrative consideration through the Site Plan Review process and a day care facility, subject to a Conditional Use Permit; and Approve a Conditional Use Permit (CUP 2025-025) to construct and operate a 4,335 square foot daycare center with related site improvements.
EXECUTIVE SUMMARY:
The project would facilitate development of 88 multifamily units (87 affordable/one manager unit), consisting of five (5) three-story residential buildings, a 2,400-square-foot leasing and amenity building for a total of six (6) buildings on a 4.59-acre site located at 200 Casentini Street. The request includes an Amendment to Planned Unit Development (PUD 1992-006) to increase residential dwelling units from 50 to 88, subject to Site Plan Review and a Conditional Use Permit to construct and operate 4,335 square foot daycare center.
BACKGROUND:
The Applicant, Aaron Barger from Milestone Housing Group, on behalf of the Housing Authority of the County of Monterey, the Property Owner, is requesting approval of a Planned Unit Development (PUD) Permit, Conditional Use Permit (CUP), and Site Plan Review (SPR) as described below:
Planned Unit Development Permit (PUD 2025-003): Amend PUD 1992-006 to construct 88 multifamily dwelling units with a 2,400 square foot leasing/amenity building and related site improvements, subject to administrative consideration through the Site Plan Review process; Conditional Use Permit (CUP 2025-025): Construct and operate a daycare center with related site improvements; and Site Plan Review (SPR 2025-014): Construct 88 multifamily dwelling units.
The project includes an Amendment to Planned Unit Development (PUD 1992-006). PUD 1992-006 was approved by the City Council on October 20, 1992, and authorized development of 120 units on the property located at the northeast corner of the Rico and Casentini Street intersection (APN 003-161-006 and 026) on a 10.3-acre lot. An Environmental Impact Report was prepared and certified in accordance with the California Environmental Quality Act (CEQA). The original PUD included three construction phases for low-income housing as described in Table 1 below. Both the First and Second Phase have been constructed.
Table 1: Original Approved Project Phasing
Phase
Approval
Construction
First Phase
50 units for low-income families
Constructed between 1994-1999 (Permits #99-27931 through #94-27968) Second Phase
20 units for low-income mental health clients
Constructed in 1993 (Permits #93-24922 through #93-24925) Third Phase
50 units for future development
Vacant Lot
(Subject Site)
The subject PUD 2025-003 amends the Third Phase of PUD 1992-006. The proposed eighty-eight (88) residential units are comprised of twenty-four (24) one (1) bedroom units, twenty-four (24) two (2) bedroom units, and forty (40) three (3) bedroom units. Upon approval and effective date of the PUD and CUP, the SPR will be administratively approved.
As a fully affordable housing development, the project offers units for households earning at or below 60% of the Area Median Income (AMI), with an overall average affordability level of approximately 49% AMI. The distribution of AMI levels, unit types, and the number of subsidized units is summarized in Table 2 below.
Table 2: CASENTINI STREET FAMILY APARTMENTS
UNIT MIX AMI BREAK DOWN
BEDROOM TYPE
AMI AND INCOME LEVEL
NUMBER OF UNITS
1-BEDROOM
30.00%
EXTREMELY LOW INCOME
3 1-BEDROOM
40.00%
VERY LOW INCOME
4 1-BEDROOM
50.00%
VERY LOW INCOME
12 1-BEDROOM
60.00%
LOW INCOME
5 2-BEDROOM
30.00%
EXTREMELY LOW INCOME
3 2-BEDROOM
40.00%
VERY LOW INCOME
4 2-BEDROOM
50.00%
VERY LOW INCOME
12 2-BEDROOM
60.00%
LOW INCOME
4 3-BEDROOM
30.00%
EXTREMELY LOW INCOME
4 3-BEDROOM
40.00%
VERY LOW INCOME
6 3-BEDROOM
50.00%
VERY LOW INCOME
15 3-BEDROOM
60.00%
LOW INCOME
15 TOTAL UNIT COUNT (SUBSIDIZED)
87 TOTAL UNIT COUNT AT 30% AMI
EXTREMELY LOW INCOME
10 TOTAL UNIT COUNT AT 40% AMI
VERY LOW INCOME
14 TOTAL UNIT COUNT AT 50% AMI
VERY LOW INCOME
39 TOTAL UNIT COUNT AT 60% AMI
LOW INCOME
24 AVERAGE AMI - VERY LOW INCOME
49%
In addition to residential uses, the project includes a variety of on-site amenities to serve the residents, including, but not limited to, a community room, fitness area, business/computer room, basketball court, and a tot lot for children up to nine (9) years of age.
The project consists of seven (7) buildings as described in Table 3 below:
Table 3: Proposed Building Uses
Building No.
Proposed
Building Nos. 1-5
Residential units ranging from 1-bedroom to
3-bedroom
Building No. 6
2,400 square foot leasing/amenity office
Building No. 7
4,335 square foot daycare center
The project site is designated Residential High Density by the General Plan. General Plan Land Use Map (Figure LU-1) is adjacent to a riparian corridor (Natividad Creek). The proposal supports General Plan policies promoting higher-density residential development, affordable housing, and efficient land use patterns.
The subject site (4.59-acre lot) was part of a parcel map division described as Parcel B of Parcel Map filed for Record in Volume 19 at Page 26, Monterey County Records. On April 2, 1999, the creation of the subject site was filed under Volume 20 at Page 87, Monterey County Records (RS 98-2). The property is located in the Zoning District of Residential High Density (R-H-2.1-F). The following provides an overview of the land uses and zoning districts adjacent to the project site:
North: Residential High Density (R-H 2.1-F) – Residential Low Density (R-L 5.5) – Commercial Office/Retail (CO/R) South: Residential High Density (R-H 2.1-F) – Residential Low Density (R-L 5.5) West: Residential High Density (R-H 2.1-F) – Residential Low Density (R-L 5.5) – Public Semipublic (PS) – Public (P) East: Residential High Density (R-H 2.1-F) - Agricultural (A) – Mixed Use (MX) Analysis:
General Plan Consistency:
The site is designated as Residential High Density by the 2002 Salinas General Plan. Per the General Plan, Residential High Density land use provides for the development of multifamily dwellings units and daycare centers. The proposed project is consistent with the General Plan Goals and Policies. Located on an infill site, the project aligns with the General Plan to maintain a compact City.
Pursuant to Government Code Section 65863 (No Net Loss Law), the City is required to evaluate the impact of the proposed development on its ability to accommodate the State’s Regional Housing Needs Allocation (RHNA), as the subject site is included in the 2023-2031 Housing Element to contribute toward the RHNA capacity. A key factor in determining General Plan consistency is whether the project delivers the number of affordable units allocated to the project site identified in the Housing Element. A total of 50 units were authorized per PUD 1992-006. The 2023-2031 Housing Element identified 67 moderate income units for the Third Phase on the vacant site. The proposed project would add 21 units to RHNA capacity and the provision of 10 extremely low, 53 very low and 24 low-income units.
The project proposes utilizing ongoing rental subsidies through Project-Based Section 8 Vouchers administered by the Housing Authority of the County of Monterey, in addition to tax-exempt bond financing and low-income housing tax credits.
Zoning Consistency:
The site is zoned Residential High Density. Per Zoning Code Section 37-30.140, Residential High Density District general purpose is to:
Provide appropriately located areas for high density and multifamily dwellings consistent with the general plan and with standards of public health and safety established by the Municipal Code; Provide adequate light, air, privacy, and open space for each dwelling unit and protect residents from the harmful effects of excessive noise, inappropriate population density, traffic congestion, and other adverse environmental impacts; Promote development of affordable housing, housing for qualifying residents, and daycare facilities by providing a density bonus for projects, which meet state and/or city density bonus requirements; Achieve design compatibility through the use of site development regulations and design standards; Protect adjoining low and medium density residential districts from excessive noise or loss of sun, light, quiet, and privacy resulting from proximity to multifamily dwellings; Provide sites for public and semipublic land uses needed to complement residential development or requiring a residential environment; Ensure the provision of public services and facilities needed to accommodate planned population densities; Encourage attractive and interesting residential streetscapes and high-density developments that are pedestrian-oriented and reflect traditional residential design principles; and Promote safe residential neighborhoods through the incorporation of crime prevention through environmental design (CPTED) features in dwelling and site design; and The additional purposes of each R-H district are as follows:
R-H-2.1: to provide for high density multifamily dwelling units where the minimum density is more than fifteen dwelling units per net acre and the maximum density is not more than twenty dwelling units per net acre without density bonus.
The proposed multifamily and daycare project achieves the general purpose as identified in the Residential High Density district as described above and demonstrated through the project plans (Exhibit B). The R-H-2.1 zoning district allows a maximum density of 20 dwelling units per acre. Based on the 4.59-acre site area, the project could accommodate approximately 92 dwelling units without utilizing a density bonus.
Development Standards:
Pursuant to Section 37-30.180, the site is subject to the Residential High Density District Development Regulations and design standards, which ensure the highest level of design quality while at the same time providing the flexibility necessary to encourage creativity on the part of project designers. The standards are also intended to promote higher density development that is pedestrian-oriented, safe, and reflects traditional neighborhood design principles. Section 37-30.180 requires review including, but not limited to, siting, size, configuration, colors, and materials to ensure that the development will blend with the site and the surrounding neighborhood. As shown in Table 4: Development Regulation Compliance City staff has determined that the development has been appropriately sited and designed, and the development meets all required site development standards in the R-H-2.1 zoning district.
Table 4: Development Regulation Compliance
MFR= Multifamily Residential
DC=Daycare Center
Development Regulation
Standard
Daycare (DC) /Multifamily Residential (MFR)
Existing
Proposed
Daycare (DC)/Multifamily Residential (MFR)
Remarks
Daycare (DC)/Multifamily Residential (MFR)
Use Classification
-
Vacant Lot
-
-
Lot Area Per Dwelling Unit – Minimum (s.f.)
MFR- 2,100 s.f.
minimum
-
MFR- 2,425 s.f. minimum
4.59-acre (199,940 s.f./88 units =2,272 s.f.)
MFR-In Compliance
Lot Yard – Minimum (ft.)
15’
Vacant Lot
MFR – over 100’
DC – 15’
MFR-In Compliance
DC – In Compliance
Development Regulation
Standard
Daycare (DC) /Multifamily Residential (MFR)
Existing
Proposed
Daycare (DC)/Multifamily Residential (MFR)
Remarks
Daycare (DC)/Multifamily Residential (MFR)
Interior Side Yard – Minimum (ft.)
10’
Vacant Lot
10’
MFR- In Compliance
Rear Yard –
Minimum (ft.)
10’
Vacant Lot
41’
MFR- In Compliance
Height – Maximum (ft.)
45’
Vacant Lot
DC -19’- 6”
MFR – 33’
DC- In Compliance MFR – In Compliance
Nonresidential FAR – Maximum (%)
MFR- .04
Vacant Lot
.03
MFR – In Compliance
Distance Between Structures – Minimum (ft.)
20’
MFR- 5’ per story
MFR- 15’-35’
MFR – In Compliance
Landscaping – Minimum (Percent of Lot Area 10% for overall site & 5% Parking Lot) Provide landscaping plans per Sections 37-50.690 & 37-30.180 (l) Zoning Code Vacant Lot
Proposed Landscape
Overall Site 39%
Parking Lot Area 18%
In Compliance
Driveway Length – Minimum (ft.)
20’
Vacant Lot
32’
DC- In Compliance
Driveway Width – Maximum (ft.)
24’
Vacant Lot
DC- 24’
DC-Meets Standard
Off-Street Parking - Minimum (spaces)
AB2097
Vacant Lot
Project Proposed 152 Parking Stalls (64 tandem parking stalls subject to Density Bonus Waiver) Site is located within ½ mile of bus stop pursuant to AB2097. Therefore, parking provided is considered optional.
Development Regulation
Standard
Daycare (DC) /Multifamily Residential (MFR)
Existing
Proposed
Daycare (DC)/Multifamily Residential (MFR)
Remarks
Daycare (DC)/Multifamily Residential (MFR)
Open Space (500 s.f. per dwelling unit)
44,000 s.f.
Vacant Lot
27,305 s.f.
Density Bonus Waiver provides 13 dwelling units.
4-bedroom Requirement
(10% of total unit count)
88 units
(10% off 88 is approx. 9 units)
Vacant Lot
None
Density Bonus Waiver provides 15 units of 1-3 bedroom mix.
Recycling and Solid Waste
Required for 5 or more residential units
Vacant Lot
Trash Enclosure Proposed
In Compliance
Colors and materials of the project are consistent with the surrounding area and neighborhood character. The Mediterranean/Spanish-influenced multifamily architectural style with traditional components including materials such as stucco, stone veneer, roof tile and metal railing. Proposed colors include earthtone palettes such as tan, brown, taupe and dark bronze which are consistent with Section 37-30.080(d)(9), which demonstrate compatibility in the architectural details and exterior colors reinforce and enhance the architectural form and style of the structure. A total of 39% of the overall site is proposed to be landscaped, which exceeds the 10% minimum landscaping requirement. To ensure consistency and compatibility with the landscape design, a Standard Condition will be incorporated in the SPR (Exhibit A).
A portion of the site is located in the Flood Overlay District. The purpose of the flood (F) overlay district regulations is to:
Protect development from flood-related hazards;
Protect public health, safety, and general welfare by regulation of development within flood-prone areas; Control the alteration of natural floodplains, stream channels, and natural protective barriers, which help accommodate or channel floodwaters; Control filling, grading, dredging, and other development which may alter drainage patterns and/or increase flood damage; Prevent or regulate the construction of flood barriers which will unnaturally divert floodwaters or which may increase flood hazards in other areas; Control the cumulative effect of development in flood-prone areas that can increase flood heights and velocity, erosion, downstream impacts, and otherwise contribute to flood loss; and Enhance water quality and groundwater recharge by identifying areas where resources can be placed for this purpose, such as floodplains or other areas, in accordance with the requirements of the latest adopted edition of the city's National Pollutant Discharge Elimination System (NPDES) permit requirements.
Any new development within the Flood Overlay District shall comply with the requirements and development regulations of Chapter 9, Article VI: Flood Damage Prevention in conjunction with the current California Building Standards Code.
Planned Unit Development Permit:
The project includes an Amendment to Planned Unit Development (PUD 1992-006). A total of 50 units were authorized per PUD 92-006. The proposed project would add 38 units, totaling 88 residential units and a 4,335 square foot daycare center, subject to a Conditional Use Permit. The project includes several waivers per the Density Bonus law, refer to Site Plan Review section for a more detailed discussion.
Required Biological Study
The proposed development is located within 100 feet of Natividad Creek. A Biological Survey Report was prepared on behalf of the City Planner November 24, 2025, by Harris & Associates (Exhibit H). The Biological Survey Report concluded that no impacts on aquatic resources are anticipated, since no aquatic resources are on site. The cement-lined channel of Natividad Creek is not within the project footprint, and no direct or indirect impacts are anticipated because of project development.
Site Plan Review:
As noted above, the Planned Unit Development Permit delegates authority to the City Planner for consideration of the 88 multifamily residential units subject to a Site Plan Review pursuant to Section 37-30.160 and Table 37-30.70 of SMC. The purpose of a SPR is to provide a streamlined administrative review process for verifying a project's compliance with the Zoning Code development, design, and use standards.
Density Bonus Waivers
The Applicant has requested the following four Density Bonus waivers pursuant to Zoning Code Section 37-60.980(a) and state housing law:
Waiver No. 1: Article V; Division 2; Section 37-50.360; Table 37-50.100, parking spaces per unit type. The project provides a total of 88 units (including one manager unit) with 24 One-Bedroom Units, 24 Two-Bedroom Units, and 40 Three Bedroom Units. Per Table 37-50.100 of the SMC Section 37-50.360, based on the unit mix, the required number of parking spaces is 164 spaces. The applicant is providing 152 parking spaces, reflecting a twelve (12) stall deficit in the total number of required parking spaces. Pursuant to California Assembly Bill 2097 (AB 2097), public agencies or cities are prohibited from imposing a minimum automobile parking requirement on most development projects located within a half-mile radius of a major transit stop. The closest bus stops within a half-mile radius of the subject property are along N. Main Street.
Waiver No. 2: Zoning Code Section 37-50.060 reducing the Open Space requirements. The Zoning Code requires 500 square-feet of Usable Open Space, along with a 900 square-foot children’s play area, for developments with more than twenty dwelling units in the R-H-2.1 Zoning District. The proposal includes 88 units, which would require 44,000 square-feet of Usable Open Space. The Applicant is proposing 27,908 square feet of Usable Open Space, with the reduction of 16,092 square feet, the site gained 15 residential dwelling units.
Waiver No. 3: Zoning Section 37-50.060 waiving the four-bedroom dwelling unit mix requirement. Per Zoning Code Section 37-30.170, Table 37-30.80 requires 10% of units in a residential project with over 10 units containing four (4) or more bedrooms, which would require nine (9) four-bedroom units (10% of 88 units). The provision of the four-bedroom units would require an adjustment to building design. The waiver would allow fifteen (15) units of one-bedroom to three-bedroom mix.
Waiver No. 4: Allowing tandem parking to satisfy on-site parking requirements. Per Zoning Code Section 37-50.060(j)(6)(D), tandem parking may be provided on site for projects utilizing Density Bonus. This Site Plan Review authorizes a waiver to allow 64 tandem parking stalls at this development.
Conditional Use Permit– Daycare Center:
The amendment to PUD 1992-006 includes a 4,335 square foot daycare center, subject to a Conditional Use Permit (CUP) per the use classification table in the Residential High Development district. The daycare operation is open to the public and serves up to 40 children from 1 month to 5 years old. Regular hours of operation are from 7:00 AM to 5:00 PM, with early hours beginning at 5:30 AM to accommodate agricultural workers. The facility will be closed on national holidays. Approximately six (6) full-time employees will be on site from 5:30 AM to 5:00 PM. No employees will live onsite. The daily schedule and emergency plans have been attached as Exhibit K.
The daycare center is located adjacent to the front entrance of the multifamily residential units, on the southeastern corner portion of the site. The daycare center architectural design is consistent with multifamily units to create uniformity. Construction colors and materials proposed are similar to the multifamily dwelling units as described above.
Benefits of Waivers and Daycare Center
The implementation of the Density Bonus waivers, as permitted under State law, plays a crucial role in increasing the number of housing units available within the community. These additional units address the significant need for more housing options, thereby supporting the local population and contributing to overall community welfare.
Furthermore, the Conditional Use Permit (CUP) for the Daycare Center offers a valuable on-site amenity for residents. By providing accessible childcare services, the daycare center enables parents to more easily pursue employment, educational opportunities, or both. This convenience enhances the quality of life for families residing in the development and supports workforce participation and educational advancement.
Public Comment
A letter was received on May 6, 2026, from Monterey-Salinas Transit (MST) states strong support of the affordable multifamily housing project located near existing transit services. It further states that locating affordable housing near transit is a proven strategy for strategy for promoting mobility and access, as transit connects residents to employment opportunities, educational institutions, medical services, and other essential services.
May 20, 2026, Planning Commission Meeting
On May 20, 2026, the Planning Commission unanimously recommended approval of PUD 2025-003 and CUP 2025-025 to the City Council.
Housing and Land Use Committee
The project was scheduled as an informational item to the Housing and Land Use Committee (HLUC) on May 21, 2026, following the Planning Commission recommendation and before final action by the City Council. However, the HLUC meeting was cancelled due to lack of quorum.
Alternatives Available to the Council:
The City Council has the following alternatives:
Affirm the findings set forth in the attached Resolution, find the project exempt from the California Environmental Quality Act (CEQA), and approve PUD 2025-003 and CUP 2025-025 with modifications; or Find that the proposal is not appropriate and establish findings at the public hearing stating the reasons for not approving PUD 2025-003 and CUP 2025-025.
Findings:
The City Council may approve an Amendment to a Planned Unit Development Permit and a Conditional Use Permit subject to the findings set forth in the proposed attached City Council Resolution.
Time Consideration:
The project was deemed complete on April 9, 2026. Final action by City Council was required by June 8, 2026, pursuant to Permit Streamlining Act, 65950(a)(5) as amended by Section 21 of AB130. However, on May 7, 2026, the Applicant submitted a letter mutually agreeing with the City to extend this timeframe for a period not to exceed 90 days from the date of the extension provided by Section 65957.
Conclusion:
Based on the analysis above, the project supports the City’s housing goals and is consistent with the General Plan, Zoning Code and applicable State regulations.
CEQA CONSIDERATION:
The environmental impacts of this project have been analyzed in accordance with the California Environmental Quality Act (CEQA). The Amendment to the Planned Unit Development has been determined to be exempt from CEQA per Sections 15165 (Multiple Phased Projects) and 15332 (In-fill Development) of the CEQA Guidelines. The Conditional Use Permit has been determined to be exempt per Sections 15332 (In-fill Development) and 15303 (New Construction or Conversion of Small Structures) of the CEQA Guidelines.
CALIFORNIA GOVERNMENT CODE §84308 APPLIES:
Yes.
STRATEGIC PLAN INITIATIVE:
If approved, this action supports the City Council’s Strategic Plan Housing and Economic Development by facilitating housing production and establishing a day care business, both of which are key to support economic growth.
DEPARTMENTAL COORDINATION:
The proposed project has been discussed among Current Planning, Permit Services, Housing Divisions of the Community Development Department, City Attorney, Public Works Department, and Fire Department.
FISCAL AND SUSTAINABILITY IMPACT:
No significant impacts to the City’s General Fund are anticipated with this proposed development and project approval. On November 18, 2025, the City Council approved Resolution 23358 (N.C.S.) authorizing the preliminary award to Milestone Housing Group and the Housing Authority of the County of Monterey Development Corporation, for construction of an affordable multifamily housing development at 200 Casentini Street in the amount of $3,837,000.
ATTACHMENTS:
City Council Resolution
Draft Planned Unit Development 2025-003 and Conditional Use Permit 2025-025 with the following exhibits:
Exhibit “A” Vicinity Map
Exhibit “B” Project Plans
Exhibit “C” Building Comments dated September 25, 2025 Exhibit “D” Fire Comments dated March 10, 2026
Exhibit “E” Engineering Conditions of Approval dated March 18, 2026 Exhibit “F” Housing Division Comments dated August 20, 2025 Exhibit “G” Affordable Housing Plan
Exhibit “H” Biological Resources Study dated November 24, 2025 Exhibit “I” Republic Services Letter
Exhibit “J” AB 2097 Buffer Map
Exhibit “K” Density Bonus Waiver Concessions
Exhibit “L” Daycare Operational & Emergency Plan
Draft Site Plan Review 2025-014 (88 Multifamily dwelling units) Exhibit “A” Standard Conditions
Exhibit “B” Vicinity Map
Exhibit “C” Project Plans
Exhibit “D” Plan Check Services Comments, dated September 25, 2025 Exhibit “E” Engineer’s Report and Development Impact Fee Estimates, dated March 18, 2026 Exhibit “F” Fire Department Comments, dated March 10, 2026 Exhibit “G” Housing Comments dated August 20, 2025
Exhibit “H” Affordable Housing Plan
Exhibit “I” Republic Services Letter of Service dated February 20, 2025 Exhibit “J” Biological Resources Study dated November 24, 2025 Exhibit “K” AB 2097 Vicinity Map
Exhibit “L” Density Bonus Waiver Requests
Planning Commission Resolution 2026-004
Correspondence from MST Letter dated May 6, 2026
Cc: Aaron Barger, Milestone Housing, Agent/Applicant
Housing Authority of the County of Monterey
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