Sand City City Council
June 4, 2024

Opportunity scores are presented on a scale from zero to one and the higher the number, the more positive the outcomes.

Regional Trends
An overview of education outcomes across Monterey County is illustrated in Figure A-44.

Educational outcomes vary across the county, as jurisdictions in the western portion, including Pacific Grove, Monterey, and Carmel-by-the-Sea, generally had more positive education outcomes compared with the cities in the eastern portion such as Greenfield, Soledad, and parts of eastern 322
Appendix A – Housing Needs & Fair Housing Report A-74 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Soledad. According to kidsdata.org, a data compilation program of the Lucile Packard Foundation for Children’s Health, Monterey County had a total public-school enrollment estimate of 1,691 students in 2021.15 Hispanic/Latino (55 percent) and white (31 percent) comprised the two largest racial/ethnic groups of the total public school enrollment in Monterey County in 2021, whereas multiracial students (8 percent), Asian American (3 percent), and African American (2 percent) comprised a significantly smaller share. Furthermore, high school graduation rates are highest among Asian American (91 percent) and Native Hawaiian/Pacific Islander students (95 percent), while African American (86 percent), non-Hispanic white students (85 percent), and Hispanic/Latino (84 percent) had slightly lower graduation rates.

Figure A-44 TCAC Opportunity Areas – Education Domain, Monterey County SOURCE: HCD AFFH Data Viewer, 2022
Local Trends
Sand City is served by the Monterey Peninsula Unified School District (MPUSD), along with a variety of elementary, middle, and high schools within the City of Seaside. There are no school facilities within Sand City, but the youth of the community do attend the various local schools that are part of this District. As of 2022, MPUSD highlights a 94.6 percent graduation rate among all students in the district, which is higher than the statewide average (87.4 percent) and County average (86.2 percent).
323
Appendix A – Housing Needs & Fair Housing Report A-75 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 When broken down by race/ethnicity, Filipino and Asian students graduated at a slightly higher rate (97.8 and 97.3 percent, respectively) than other students, although graduation rates are very high across races and ethnicities: African American students’ graduation rates were 96 percent; Hispanic and White students’ graduation rates were 94.3 percent and 92.8 percent, respectively. There is no data available for the graduation rates of American Indian students, as only 8 students, within the MPUSD, graduated. The lowest graduation rate was among students with a disability at 75.9 percent.

According to TCAC’s educational opportunity map (Figure A-45), all areas of Sand City score between 0.5 to 0.75 indicating a moderate level of educational outcomes.

Figure A-45 TCAC Opportunity Education Score, Sand City, 2022 SOURCE: California Department of Housing and Community Development AFFH Data Viewer Environmental Outcomes
TCAC’s opportunity areas environmental scores are based on the CalEnviroScreen 4.0 indicators, which identify areas disproportionately vulnerable to pollution sources such as ozone, PM2.5, diesel PM, pesticides, toxic release, traffic, cleanup sites, groundwater threats, hazardous waste, impaired water bodies, and solid waste sites.
324
Appendix A – Housing Needs & Fair Housing Report A-76 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Regional Trends
The CalEnviroScreen map shown in Figure A-46 for Monterey County identifies the degree to which communities are considered burdened by pollution; the higher the score (red), the more burdened by pollution. Figure A-46 below shows that, generally, the more urbanized, eastern portion of the county has less positive environmental outcomes, most notably near the U.S. 101 corridor, where residents are exposed to greater amounts of traffic-related air pollution as well as agricultural particles and elevated risk for adverse health outcomes.19 TCAC’s environmental scores for Monterey County correspond to the CalEnviroScreen analysis and highlight less positive environmental outcomes among communities located in the eastern area of the county, while communities throughout the western and central areas of the county generally had positive environmental outcome scores.

Local Trends
Figure A-47 illustrates environmental pollution estimates based on the CalEnviroScreen 4.0 map.

Sand City scores in the 66th percentile according to the CalEnviroScreen 4.0 environmental indicators, reflecting a moderate to high pollution burden. Pollution burden in Sand City is likely a result of its history as the heavy commercial and industrial hub serving the Monterey Peninsula.

Additionally, the city is situated adjacent to the U.S. 101 corridor, resulting in elevated levels of traffic-related air pollution in the city. In spite of Sand City’s low community and environmental health scores, the City is not considered a disadvantaged community as defined under SB 535 as “the top 25 percent scoring areas from CalEnviroScreen along with other areas with high amounts of pollution and low populations.”20
There are no known major sources of pollution in the city. The City’s General Plan includes policies regulating the location of sites that would include storage or use of hazardous materials and policies designed to protect local water quality. The northern part of the city is predominantly designated for regional commercial uses (C-4), whereas residential areas are located south of Tioga Avenue, extending to the city's southern end.

Given the city's compact size, there are no neighborhoods lacking access to parks or outdoor spaces.

Situated along the Pacific coast, Sand City offers ample coastline and beach areas, along with Calabrese Park, providing residents with various outdoor recreational opportunities. The City’s General Plan also regulates open space areas in the city. Due to Sand City’s population being less than 400 people, the City does not require the average standard of providing three to five acres of open space per every 1,000 residents. The City provides a single park, Calabrese Park, which is adjacent to City Hall.
19 9 CDC, Residential Proximity to Major Highways, 2010. https://www.cdc.gov/mmwr/preview/mmwrhtml/su6203a8.htm 20 https://oehha.ca.gov/calenviroscreen/sb535 325
Appendix A – Housing Needs & Fair Housing Report A-77 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-46 CalEnviroScreen 4.0, Monterey County
SOURCE: HCD AFFH Data Viewer, 2021
326
Appendix A – Housing Needs & Fair Housing Report A-78 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-47 CalEnviroScreen 4.0, Sand City, 2021
SOURCE: California Department of Housing and Community Development AFFH Data Viewer The Social Vulnerability Index (SVI) provided by the Center for Disease Control (CDC)—ranks census tracts based on their ability to respond to a disaster—including four themes of socioeconomic status, household composition, race or ethnicity, and housing and transportation.

Sand City scores high on the SVI (between 0.5001 and 0.7501), indicating that the City is highly vulnerable to disasters, and ill equipped to respond to them (Figure A-48). 327
Appendix A – Housing Needs & Fair Housing Report A-79 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-48 Social Vulnerability Index by Census Tract, Sand City, 2018 SOURCE: California Department of Housing and Community Development Guidance, 2021, page 36.

Transit Access and Walkability
Reliable public transit access and active transportation options (walking and biking) are imperative for low-income residents and/or persons with disabilities to connect to employment opportunities.

Access to employment via public transit and active transportation can reduce income burden and increase housing mobility, which enables residents to locate housing in more areas. Lack of transportation options can impede fair housing choice and continue to reinforce barriers for lowincome residents in accessing opportunities.

328
Appendix A – Housing Needs & Fair Housing Report A-80 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Regional Trends
Monterey County generally has widespread access to public transit. Transportation Agency for Monterey County (TAMC) and Monterey-Salinas Transit (MST) all serve Monterey County. TAMC serves as the county’s regional transportation agency responsible for planning and financial programming of transportation projects in the county. Through local and statewide funding, TAMC provides funding for public transit services operated by MST. MST provides a variety of local bus services through a total of 36 routes where service originates from two primary locations: the Monterey Transit Plaza, in downtown Monterey, and the Salinas Transit Center, in downtown Salinas. From there, routes branch out through the western cities of Marina, Sand City, Monterey, Pacific Grove, Carmel-by-the-Sea, and then the eastern cities, including Salinas, Gonzales, Soledad, Greenfield, and King City. In addition, MST provides a connection to Watsonville Transit Center as the primary connector to Santa Cruz Metro to Santa Cruz and San Jose centers. MST offers a paratransit program (RIDES) in cooperation with the Americans with Disabilities Act for those who have a disability that prevents them from using MST’s regular fixed-route bus service. Each bus is equipped with a wheelchair lift, and a service corridor extends 0.75 mile from any of the MST bus routes throughout the Monterey Peninsula, Carmel-by-the-Sea, Carmel Valley, Salinas, Chualar, Gonzales, Greenfield, Soledad, and King City with connection to Watsonville Transit Center.

College students ride free with valid student photo identification during the Fall and Spring semesters. Amtrak rail service has a station in Salinas as part of the Coast Starlight line that extends north as far as Seattle, Washington.

Monterey County received an average AllTransit performance score of 4.2 which equates to a low combination of trips per week and number of jobs accessible by transit.21 Nearly 73 percent of workers in the county live within 0.5 mile of transit. Almost all major employment centers in Monterey County are served by some form of public transit. However, having regional access to jobs by means of public transit does not necessarily translate into stable employment. Some residents with unique needs, such as households with children, have unique travel patterns that may prevent them from working far from home due to childcare needs, access to schools, and other considerations.

Local Trends
Sand City is served by MST which offers four fixed route bus lines in Sand City (Routes 17, 18, 20, and 94). Route 17 connects Sand City to the City of Marina and California State University Monterey Bay (CSUMB), operating from 7:50 am to 6:40 pm on weekdays. Route 18 connects Sand City to the City of Marina and CSUMB, operating from 7:50 am to 6:50 pm on weekends. Route 20 connects Sand City to the cities of Monterey and Salinas operating from 5:45 am to 9:15 pm on weekdays and from 7:15 am to 8:15 pm on weekends. Route 94 connects Sand City to the City of Carmel-by-theSea, operating from 9:50 am to 3:50 pm. The City of Sand City is currently processing the coastal 21 2 AllTransit.org. 2022. County: Monterey, AllTransit Metrics. https://alltransit.cnt.org/metrics/?addr=monterey+county 329
Appendix A – Housing Needs & Fair Housing Report A-81 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 development permit for the proposed MST SURF! Busway and Bus Rapid Transit project which will increase connections with a 6-mile busway parallel to Highway 1 from Marina to Sand City and Seaside. MST plans to run zero-emission buses at 15-minute intervals which would curb pollution and commute times by easing traffic congestion.

Sand City is generally accessible by local transit. The city has an AllTransit Performance Score of 7.2, which is three points higher than overall Monterey County. According to AllTransit, on average, households have access to three transit routes within one half mile and 100 percent of jobs in Sand City are within one-half mile of transit.22
Walk Score is a tool that produces a walkability index by assigning a numerical walkability score to cities and neighborhoods. Walkability is measured by analyzing population density, distance to amenities, and road metrics such as block length and intersection density. Overall, Sand City has a walk score of 70, which is an above average walk score and indicates most errands can be accomplished on foot.23 Figure A-49 illustrates Sand City’s walkability index from the EPA, which ranks block groups according to their relative walkability. As shown, the entirety of the city has a high level of walkability.

Figure A-49 Walkability Index, Sand City
SOURCE: EPA National Walkability Index, 2021
22 https://alltransit.cnt.org/fact-sheet/?mapR=248,-121.8600225,36.627557464943905,12.864450190921145,place,2244 23 https://www.walkscore.com/score/sand-city-ca 330
Appendix A – Housing Needs & Fair Housing Report A-82 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Disparities Specific to the Population Living with a Disability In Sand City, 12 percent of the population is living with at least one disability, compared to 9 percent in the County. The most common disabilities in the City are ambulatory difficulty (5 percent), hearing difficulty (3 percent), and cognitive difficulty (3 percent). For the population 65 and over, the share of the population with ambulatory difficulties increases to 7.1 percent.

A.6 Housing Stock Characteristics
Sand City’s housing stock is defined as all housing units within its jurisdiction. Characteristics of housing stock include housing type, age, condition, tenure, vacancy rates, costs, affordability, and growth. The following section provides an in-depth analysis of the housing stock in Sand City to determine how/if the current the housing stock meets the needs of existing and future residents.

Housing Growth
Table A-19 provides an overview of housing growth trends between 2010-2019 in Sand City, the County, and nearby cities. Between 2010-2019, Sand City housing unit estimates grew approximately 60 percent, more than the County and surrounding cities. These estimates show the majority of housing growth in Sand City occurred between 2010-2015 (50 percent).

Table A-19 Housing Unit Growth Trends by Jurisdiction, 2010-2019 Jurisdiction 2010 2015 2019 Percent Change
2010-2015
Percent Change
2015-2019
Monterey County 138,833 139,794 141,820 1% 1%
Sand City 106 160 176 50% 10%
Del Rey Oaks 752 733 745 -3% 2%
Seaside 10,766 10,867 11,494 1% 6%
Pacific Grove 7,723 8,411 8,347 9% -1%
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2010-2019 Housing Type
Table A-20 provides a comparison of housing unit types in Sand City, the County, and nearby cities.

In Sand City, multifamily homes are the most common housing type (63 percent) followed by singlefamily detached units (35 percent). Conversely, the County’s most common housing type is singlefamily detached units (63 percent), and only 27 percent multifamily. Overall, Sand City has the lowest percentage of single-family detached units compared to the County and nearby cities, but the highest percentage of multifamily housing units.
331
Appendix A – Housing Needs & Fair Housing Report A-83 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table A-20 Housing Units by Type by Jurisdiction, 2019
Geography
SingleFamily
Detached
SingleFamily
Attached
Multifamily Mobile
Homes Total Units
Count Percent Count Percent Count Percent Count Percent Monterey County 88,721 63% 8,796 6% 37,734 27% 6,529 5% 141,820 Sand City 62 35% 4 2% 110 63% 0 0% 176
Del Rey Oaks 567 76% 49 7% 118 16% 11 2% 745
Seaside 6,936 60% 1,413 12% 2,829 25% 292 3% 11,494
Pacific Grove 5,023 60% 497 6% 2,668 32% 159 2% 8,347
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
NOTE: Table indicates total housing units.

Figure A-50 illustrates housing type trends in Sand City between 2010-2019. In 2010, the majority of housing types were single-family detached homes (49 percent); this has since decreased to only 35 percent in 2019. More recently, multifamily housing (2-5+ units) makes up the majority of housing types (63 percent) in 2019. In 2010, mobile homes comprised the smallest percentage of housing in Sand City (along with single-family attached), and have since dropped to zero percent in 2015 and 2019.

Housing Availability and Tenure
Housing tenure refers to individuals who own or rent a housing unit. The number of residents who own their homes compared to those who rent their homes can help identify the level of housing insecurity (i.e., ability for individuals to stay in their homes) in a city and region. Generally, renters may be displaced more quickly if prices increase. Additionally, housing tenure may be an indicator of housing affordability (i.e., if the local housing market has high barriers to entry, there may be more renter households than owner households).
332
Appendix A – Housing Needs & Fair Housing Report A-84 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-50 Housing by Type, Sand City, 2010-2019
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2010-2019 In Sand City, the housing stock includes 25 owner-occupied housing units and 121 renter-occupied housing units (Table A-21). The majority of renter-occupied units are multifamily (69 percent), whereas the majority of owner-occupied units are single-family detached (60 percent).

When analyzing housing unit type in tandem with tenure, the majority of all housing units are multifamily (63 percent), of which 76 percent are renter-occupied and 6 percent are owner-occupied (Table A-20; Table A-21).

Table A-21 Housing Units by Type and Tenure, Sand City, 2019 Tenure
Single-Family
Detached
Single-Family
Attached Multifamily Mobile Homes Total
Units
Count Percent Count Percent Count Percent Count Percent RenterOccupied 36 30% 1 0.82% 84 69% 0 0% 121
OwnerOccupied 15 60% 3 12% 7 28% 0 0% 25
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
NOTE: Table indicates total occupied housing units.

Figure A-51 illustrates household tenure by income level in Sand City. The largest proportion of both renters (38 percent) and homeowners (65 percent) fall in the Greater than 100 percent of AMI group. However, lower-income renters as a whole (0-80 percent of AMI), makeup 54 percent of households.

Single-Family
Home: Attached
Single-Family
Home: Detached
Multifamily
Housing: Two to
Four Units
Multifamily
Housing: Fiveplus UnitsMobile Homes
2010 3% 49% 25% 21% 3%
2015 4% 36% 23% 37% 0%
2019 2% 35% 24% 39% 0%
0%
10%
20%
30%
40%
50%
60%
333
Appendix A – Housing Needs & Fair Housing Report A-85 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-51 Household Tenure by Income Level, Sand City, 2019 SOURCE: U.S. Census Bureau, CHAS, 2015-2019
Table A-22 provides an overview of household size by tenure for Sand City, the County, and nearby cities. In Sand City, the average household size is 2.12, of which the majority of larger households are comprised of renter-occupied units (2.17 persons/unit). An average household size of 2.12 suggests a need for more smaller housing units. This aligns with 48 percent of Sand City’s population being comprised of single-person households (Figure A-12). Compared to the County and nearby cities, Sand City has the lowest average household size (2.12 persons/unit). The County has a high average household size of 3.27 suggesting a need for large housing units and even a need for smaller independent units such as ADUs/JADUs for extended family, etc.

Table A-22 Household Size by Tenure by Jurisdiction, 2019 Jurisdiction Owner-Occupied Renter-Occupied Average Household Size Monterey County 3.13 3.41 3.27
Sand City 1.88 2.17 2.12
Del Rey Oaks 2.29 2.49 2.35
Seaside 2.92 3.19 3.08
Pacific Grove 2.34 2.15 2.23
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
0% 0%
17% 17%
65%
17%
8%
29%
8%
38%
0%
10%
20%
30%
40%
50%
60%
70%
0%-30% of
AMI
31%-50% of
AMI
51%-80% of
AMI
81%-100%
of AMI
Greater than
100% of AMI
Owner Occupied
Renter Occupied
334
Appendix A – Housing Needs & Fair Housing Report A-86 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-52 illustrates 2019 household tenure by race in Sand City. Tenure by race does not vary much in Sand City, as the majority of all households in Sand City are renter-households (82 percent), of which both non-Hispanic White and Hispanic or Latinx populations (the City’s most populous groups) are majority renter-households. However, all Black or African American households rented their homes, while homeownership rates were 100 percent for American Indian or Alaska Native households, 7 percent for Hispanic or Latinx households, 38 percent for White households, and 22 percent for Multiple Races.

Figure A-52 Household Tenure by Race, Sand City, 2019
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
Sand City has the second highest vacancy rates of the nearby cities at 17 percent (Figure A-53). At 18 percent, the City of Pacific Grove has the highest vacancy rate, just one point above Sand City.

The City of Seaside has the lowest vacancy rate at 8 percent (9 percent below Sand City). Table A-23 shows vacant housing units by type, revealing 63 percent of Sand City’s vacant units are for rent, suggesting a mismatch of housing need in some proportion (i.e., affordability, size, etc.).

American
Indian or
Alaska
Native
(Hispanic
and NonHispanic)
Asian
alone
Native
Hawaian
and Other
Pacific
Islander
Black or
African
American
(Hispanic
and NonHispanic)
Hispanic or
Latinx
Some
Other
Race/Multi
ple Races
White
(Hispanic
and NonHispanic)
White,
NonHispanic
Renter Occupied 0% 100% 0% 100% 93% 78% 84% 80%
Owner Occupied 100% 0% 0% 0% 7% 22% 16% 20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
335
Appendix A – Housing Needs & Fair Housing Report A-87 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-53 Vacancy Rates by Jurisdiction, 2019
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
Table A-23 Vacant Housing Units by Type, Sand City, 2019 Housing Unit Type Estimate Percentage
For rent 19 63%
Rented, not occupied 0 0%
For sale only 0 0%
Sold, not occupied 6 20%
For season, recreations, or occasional use 0 0%
For migrant workers 0 0%
Other vacant 5 17%
Total 30 100%
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
Table A-24 shows housing permits issued by the City of Sand City by income group. Between 2015 and 2021, permits were issued for seven (7) housing units in Sand City. Of those, all were for above moderate-income housing.
17%
10%
13%
8%
18%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
Sand City Monterey
County
Del Rey Oaks Seaside Pacific Grove
336
Appendix A – Housing Needs & Fair Housing Report A-88 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table A-24 Housing Permits by Income Group, Sand City, 2015-2021 Income Group Number Percent
Very Low-Income Permits 0 0%
Low-Income Permits 0 0%
Moderate-Income Permits 0 0%
Above Moderate-Income Permits 7 100%
Total 7 100%
SOURCE: California Department of Housing and Community Development (HCD), 5th Cycle Annual Progress Report Permit Summary (2022).

NOTE: Universe: Housing permits issued between 2015 and 2021. Notes: HCD uses the following definitions for the four income categories: Very Low Income: units affordable to households making less than 50 percent of the Area Median Income for the county in which the jurisdiction is located. Low Income: units affordable to households making between 50 percent and 80 percent of the Area Median Income for the county in which the jurisdiction is located. Moderate Income: units affordable to households making between 80 percent and 120 percent of the Area Median Income for the county in which the jurisdiction is located. Above Moderate Income: units affordable to households making above 120 percent of the Area Median Income for the county in which the jurisdiction is located.

Assisted Housing Developments At-Risk of Conversion
While there is an immense need to produce new affordable housing units, ensuring that the existing affordable housing stock remains affordable is equally important. The City includes a variety of programs that provide incentives for the development of affordable rental housing in Sand City.

Programs are administered by the US Department of Housing and Urban Development (HUD), insured by the Federal Housing Administration (FHA), financed by Multifamily Revenue Bond issuance or tax credits or subject to a housing agreement under the City’s density bonus provisions.

Through these programs, units are restricted to periods of up to 55 years. Once the term of the contract is up, the owner of the rental units can raise rents to market rate. This can have the effect of displacing low- and very low-income tenants who cannot afford increased rents.

The California Housing Partnership Preservation Database is the state’s most comprehensive source of information on subsidized affordable housing at risk of losing its affordable status and converting to market-rate housing.24 According to the database, there are no federal or state assisted units in Sand City.

At the local level, there are a total of 11 below market rate rental units with protective covenants in place. The City facilitated the development of The Independent, located at 600 Ortiz Ave., a mixeduse multifamily development, which includes 10 low-income rental units (approximately 5 percent of the City’s existing housing stock) with protective covenants for 55 years. The protective covenants began in 2008 and expire in 2063. Additionally, there is one (1) moderate-income unit located at The Independent that has a protective covenant for a 12-year term. The protective covenant was executed in 2020 and will expire in 2032. Currently, there are no affordable housing units at risk of 24 This database does not include all deed-restricted affordable units in the state, so there may be at-risk assisted units in a jurisdiction that are not captured.
337
Appendix A – Housing Needs & Fair Housing Report A-89 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 conversion to market rate during the 6th cycle planning period. Nevertheless, it is important for the City to be aware of various options to grow and maintain the City’s affordable housing stock.

To maintain the existing affordable housing stock, the City can preserve existing affordable units and facilitate the development of new units. Depending on the circumstances of at-risk projects, different options may be used to preserve or replace the units. Preservation options to ensure the viability and ongoing supply of affordable units typically include: 1) construction of replacement units; 2) provision of rental assistance to tenants 3) transfer of the project to nonprofit ownership; and 4) purchase of affordability covenants. These options are described below and the City’s focus is on proactive construction of replacement units and rental assistance.

Construction of Replacement Units
The construction of new affordable housing units is a means of replacing the at-risk units should they be converted to market-rate units. The cost of developing housing depends on a variety of factors, including density, size of the units (i.e. square footage and number of bedrooms), location, labor, materials and land costs, and type of construction. The City is implementing a number of programs to encourage development of new affordable units to increase the City’s affordable housing stock.

Rental Assistance
Rental subsidies using non-federal (state, local, or other) funding sources can be used to maintain affordability of at-risk units. These rent subsidies can be structured to mirror the federal Housing Choice Voucher (Section 8) program. Under Section 8, HUD pays the difference between what tenants can pay (defined as 30 percent of household income) and what HUD estimates as the fair market rent on the unit. The feasibility of this alternative is highly dependent on the availability of other funding sources necessary to make rent subsidies available and the willingness of property owners to accept rental vouchers if they can be provided. Housing Choice Vouchers are available through the Housing Authority of Monterey County.

Transfer of Ownership
Transferring ownership of an at-risk project to a nonprofit housing provider is generally one of the least costly ways to ensure that at-risk units remain affordable for the long term. By transferring property ownership to a nonprofit organization whose mission includes affordable housing, the risk of losing the low-income restrictions is minimized, and the project would become potentially eligible for a greater range of governments assistance.
338
Appendix A – Housing Needs & Fair Housing Report A-90 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Purchase of Affordability Covenants
Another option to preserve the affordability of at-risk projects is to provide an incentive package to the owners to maintain the projects as affordable housing. Incentives could include bringing down the interest rate on the remaining loan balance, providing loans for capital improvements, and/or supplementing subsidies. The feasibility of this option depends on whether the complex is too highly leveraged. By providing lump sum financial incentives or ongoing subsidies in the form of rents or reduced mortgage interest rates to the owner, the City can ensure that some of all of the units remain affordable.

Displacement
Displacement, as defined by HCD, is any involuntary household move caused by landlord action or market changes. Shifts in neighborhood composition are often framed and perpetuated by established patterns of racial inequity and segregation. Movement of people, public policies, and investments, such as capital improvements and planned transit stops, and flows of private capital can lead to displacement. Displacement is fueled by a combination of rising housing costs, rising income inequality, stagnant wages, and insufficient market-rate housing production. Decades of disinvestment in low-income communities, coupled with investor speculation, can result in a rent gap or a disparity between current rental income of the land, and potentially achievable rental income if the property is converted to its most profitable use. These processes can disproportionally impact people of color, as well as lower-income households, persons with disabilities, large households, and persons at-risk of or experiencing homelessness.25 Because of increasing housing prices, displacement is a major concern in the Monterey Bay Area. Displacement has the most severe impacts on low- and moderate-income residents. When individuals or families are forced to leave their homes and communities, they also lose their support network.

Regional Trends
As shown in Figure A-54, throughout the county, residents reside in what are called “sensitive communities,” which means they are vulnerable to displacement.26 Every city in the region had sensitive communities, with the exception of Carmel-by-the-Sea. Unincorporated areas of the county with sensitive communities were concentrated in the eastern portion of the county along U.S. 101.

Communities are designated sensitive if the share of very low-income residents is greater than 20 percent and have any of the following characteristics: the share of renters is above 40 percent, the share of people of color is above 50 percent, the share of very low-income households that are severely rent burdened is above the county median, the percent change in rent is above the county median for rent increases.
25 HCD, 2021. https://www.hcd.ca.gov/community-development/affh/docs/affh_document_final_4-27-2021.pdf 26 Urban Displacement Project, 2021. https://www.sensitivecommunities.org/ 339
Appendix A – Housing Needs & Fair Housing Report A-91 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-54 Sensitive Communities, Monterey County
SOURCE: California Department of Housing and Community Development, AFFH Data Viewer Local Trends
Figure A-55 illustrates displacement risk in Sand City. According to the California Department of Housing and Community Development (HCD) AFFH Data Viewer and the Urban Displacement Project 2022 estimates, Sand City renter-occupied households earning between 0-80 percent AMI are at risk of potential displacement or gentrification. However, this data includes the City of Seaside impacting accuracy for Sand City.

There appears to be no geographic variation in the level of displacement risk. This aligns with 63 percent of renter households experiencing some level of cost burden. Displacement risk in Sand City is likely caused by economic factors, such as rising housing costs. As discussed later in this appendix, between 2019 and 2022, median home prices increased 33 percent from $550,015 to $729,055.

Median rent has also increased significantly in recent years. According to Zillow, median rent for a two-bedroom apartment in Sand City increased approximately 16 percent between 2023 and 2024, from $2,500 to $2,900. These increases are not specific to any one area in the city. 340
Appendix A – Housing Needs & Fair Housing Report A-92 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 There have not been any reported events causing displacement in Sand City. The City's goal is to implement the required governmental measures to promote the development of affordable housing.

As part of this initiative, the City plans infrastructure improvements to support future development within the city. These improvements would not result in the loss of any housing units or displace any existing residents. There are no proposed improvements which would require the displacement of existing housing units or residents.

Figure A-55 Displacement Risk, Sand City, 2022
SOURCE: California Department of Housing and Community Development, AFFH Data Viewer Housing Age and Condition
Housing age and condition are factors considered in overall housing quality as they may affect the structural integrity and ability to adequately function for a household. Thus, the age and condition of a house may indicate the need for major repairs to the foundation, plumbing, or roof. In Sand City, 61 percent of the housing stock was built prior to 1999 and is over 20 years old. Thirty-five (35) percent of the housing stock was built between 2000-2009 and 3 percent was built in 2010 or later (Figure A-56).
341
Appendix A – Housing Needs & Fair Housing Report A-93 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-56 Housing Stock Age, Sand City, 2019
SOURCE: U.S. Census Bureau, ACS 5-Year Estimate, 2019
The small nature of Sand City provides the opportunity for City staff to monitor all structures in the City on a regular basis. The City estimates that there are less than 5 percent of structures in need of rehabilitation. In late 2023, a city-wide windshield survey was conducted by City staff, with findings that approximately six (6) residential structures are in need of rehabilitation. Based on the windshield survey, the older housing stock still appears to be in decent shape, and is expected to need reroofing in about five to 10 years. Most residential units in need of repair are older wooden structures dating back to the 1960s or earlier, located in more industrial areas of the City within the MU-P District.

These units are mostly in need of electrical maintenance and updated exterior finishes such as paint or siding. The City will continue to monitor this situation.

Based on recent building permits, it is evident that interior maintenance, such as hot water heater replacements and electrical maintenance is being done in several homes throughout the city. The City Council and City staff are proactive in conducting outreach to residential units that appear to be in disrepair. Code enforcement is more closely related to the monitoring and enforcement of businesses as the city’s primary land use is commercial, but they are still active in monitoring residential activity as well.

To facilitate the rehabilitation and preservation of existing housing units, the 6th Cycle Housing Element proposes policies and Program 2.C (see Chapter 2). The program is intended to provide information and assistance to lower-income households in need of home repairs and rehabilitation.

The MU-P District has recently seen the construction of several residential developments since 2022, and is anticipated to accommodate the entirety of the RHNA through adaptive reuse, lot consolidation, and new high-density development. Included in the Sites Inventory are several vacant 9%
14% 14%
24%
35%
3%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Built 1939 Or
Earlier
Built 1940 To
1959
Built 1960 To
1979
Built 1980 To
1999
Built 2000 To
2009
Built 2010 Or
Later
342
Appendix A – Housing Needs & Fair Housing Report A-94 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 lots, a condemned single-family home, and underutilized lots that are intended to be redeveloped in the eight-year planning cycle. This will address the needed restoration of many underutilized/vacant structures and lots, in addition to increasing the desirability of the area.

Housing Costs and Affordability
Identifying the cost of owning or renting a home in a city helps determine the affordability of housing at different income levels. Understanding housing affordability also informs what types and sizes of housing are needed by the community’s households. Housing affordability is considered affordable if the monthly housing cost does not exceed 30 percent of a household’s gross income. In Sand City, a lack of affordable housing for locals has been a major issue surrounding housing as the City has supported a retail economy without providing its local workforce affordable housing, causing a spatial mismatch of jobs-workers. Thus, implementing policies and programs to build and protect housing is critical to ensuring the housing needs of the community are met, the local economy is better supported, and environmental impacts are reduced.

Home Prices and Rental Costs
Due to the small population size of Sand City, home price and rental cost data is not available through Zillow or other commonly used real estate databases. Moreover, U.S. Census ACS data is not an accurate indicator of home price values due to stagnant collection of data and an everchanging housing market. For the assessment of home prices in Sand City, the neighboring city of Seaside is being used as an indicator of affordability.

According to Zillow Home Value Index data, the median home value in Sand City was estimated at $550,015 in December 2019 (Table A-25). By 2022, the median home value in Sand City increased approximately 33 percent due to market demand. By comparison, the median home value in the County was valued at $561,490 in December 2019 and experienced a 39 percent increase by 2022.

Table A-25 Median Home Value by Jurisdiction, 2019-2022 Jurisdiction
Median Home Value
Percent Change 2019-2022
2019 2020 2021 2022
Monterey County $561,490 $632,834 $735,469 $778,164 39% Sand City $550,015 $616,786 $690,126 $729,055 33%
Del Rey Oaks $630,204 $701,060 $779,099 $840,663 33%
Seaside $550,015 $616,786 $690,126 $729,055 33%
Pacific Grove $943,900 $1,032,675 $1,237,054 $1,294,881 37% SOURCE: Zillow Home Value Index, 2019-2022
NOTE: Housing value estimates were taken from December for years 2019-2022.

Reported median home values for Sand City are reflective of Seaside median home values due to lack of available data for Sand City. 343
Appendix A – Housing Needs & Fair Housing Report A-95 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Rental Affordability
Similar to home value prices, rental prices have also increased over the last decade. This significantly affects lower-income households as they are typically majority renters. High rental prices can exacerbate housing challenges such as overcrowding and cost burden if adequate rental stock is not available to suit household needs.

Table A-26 shows average rent estimates by unit size in Sand City based on 2023 Zillow rental market data in Seaside. Included in the table is Housing and Urban Development’s (HUD) Fair Market Rents (FMR) for 2023, which establishes rental subsidy limits for Section 8 housing voucher recipients.

Table A-26 Average Rent by Number of Bedrooms, Sand City, 2023 Unit Type Average Rents Fair Market Rents (HUD)
Studio $1,450 $2,112
One bedroom $1,865 $2,194
Two bedrooms $2,800 $2,675
Three bedrooms $4,100 $3,790
Four bedrooms $4,048 $4,144
SOURCE: Zillow, 2023; HUD, Fair Market Rent Documentation System, 2023 NOTE: Zillow rental value estimates were taken from March 2023 and based on Seaside median rental price.

Fair Market Rent values are based on Salinas, CA MSA
Table A-27 reports the maximum monthly housing costs affordable to households according to income group in Monterey County. Income groups are based on the HCD 2022 State Income Limits Report, which considers housing affordable assuming a household can pay up to 30 percent of its monthly income toward housing. In Table A-27, maximum affordable sales prices are based on the following assumptions: 6.42 percent interest rate,27 30-year fixed loan, and a 5 percent down payment.

As mentioned in Table A-25, the median home price in Sand City28 in December 2022 was $729,055, which is only affordable to above moderate-income households earning approximately $183,000 annually or more (42 percent of Sand City households are categorized as above moderateincome). 27 Interest rate based on December 29, 2022 interest rate according to Freddie Mac Primary Mortgage Market Survey 28 Reported median home values for Sand City are reflective of Seaside median home values due to lack of available data for Sand City.
344
Appendix A – Housing Needs & Fair Housing Report A-96 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table A-27 Housing Affordability, Sand City, 2022
Income Group HCD Income Limits
Maximum Affordable Price
Monthly Rental Ownership
Extremely Low (0-30% AMI)
One Person $23,900 $598 $100,340
Two Person $27,300 $683 $114,614
Three Person $30,700 $768 $128,889
Four Person $34,100 $853 $143,163
Very Low (30-50% AMI)
One Person $39,800 $995 $167,093
Two Person $45,500 $1,138 $191,024
Three Person $51,200 $1,280 $214,954
Four Person $56,850 $1,421 $238,675
Low (50-80% AMI)
One Person $63,700 $1,593 $267,433
Two Person $72,800 $1,820 $305,638
Three Person $81,900 $2,048 $343,843
Four Person $91,000 $2,275 $382,048
Moderate (80-120% AMI)
One Person $75,650 $1,891 $317,603
Two Person $86,500 $2,163 $363,155
Three Person $97,300 $2,433 $408,497
Four Person $108,100 $2,700 $453,839
SOURCE: California Department of Housing and Community Development, State Income Limits, 2022, Monterey County According to the California Department of Housing and Community Development AFFH Data Viewer, Sand City does not have any public housing buildings. Additionally, the city's census tract does not show data for Housing Choice Voucher usage (Figure A-57). 345
Appendix A – Housing Needs & Fair Housing Report A-97 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-57 Housing Choice Vouchers by Census Tract, Sand City SOURCE: California Department of Housing and Community Development AFFH Data Viewer 346
Appendix A – Housing Needs & Fair Housing Report A-98 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 A.7 Fair Housing Enforcement and Outreach Capacity
This section discusses fair housing legal cases and inquiries, fair housing protections and enforcement, and outreach capacity.

Fair Housing Legal Cases and Inquiries
California fair housing law extends beyond the protections in the Federal Fair Housing Act (FHA).

In addition to the FHA protected classes—race, color, ancestry/national origin, religion, disability, sex, and familial status—California law offers protections for age, sexual orientation, gender identity or expression, genetic information, marital status, military or veteran status, and source of income (including federal housing assistance vouchers).

The California Department of Fair Employment in Housing (DFEH) was established in 1980 and is now the largest civil rights agency in the United States. According to their website, the DFEH’s mission is, “to protect the people of California from unlawful discrimination in employment, housing and public accommodations (businesses) and from hate violence and human trafficking in accordance with the Fair Employment and Housing Act (FEHA), Unruh Civil Rights Act, Disabled Persons Act, and Ralph Civil Rights Act”.29
DFEH receives, evaluates, and investigates fair housing complaints. DFEH plays a particularly significant role in investigating fair housing complaints against protected classes that are not included in federal legislation and therefore not investigated by HUD. DFEH’s website provides detailed instructions for filing a complaint, the complaint process, appealing a decision, and other frequently asked questions.30 Fair housing complaints can also be submitted to HUD for investigation.

Additionally, Monterey County has a number of local resource and enforcement organizations:
 The Housing Authority of the County of Monterey: A public agency that provides rental assistance and develops and manages affordable housing throughout Monterey County, California;
 South County Housing: A non-profit community development corporation. The organization’s mission is to promote viable neighborhoods that enhance healthy, sustainable communities by collaboratively providing affordable housing and promoting neighborhood services;  Public Interest Law Project: a nonprofit support center for California legal services and other public interest law programs. The California Affordable Housing Law Project (CAHLP) is a project of the Public Interest Law Project. CAHLP concentrates primarily on the enforcement of California’s Housing Element and redevelopment statutes and of state and federal relocation assistance and fair housing laws;
29 https://www.dfeh.ca.gov/aboutdfeh/ 30 https://www.dfeh.ca.gov/complaintprocess/ 347
Appendix A – Housing Needs & Fair Housing Report A-99 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024  Coalition of Homeless Service Providers: Advocate on the subject of homelessness with policy makers, public funders, and those with lived experience; and  California Rural Legal Assistance (CRLA): a nonprofit legal service program created to help California’s low-income individuals and communities. CRLA provides low-income rural Californians with free legal assistance and a variety of community education and outreach programs. Half of its resources are committed to multi-client cases that grapple with the root causes of poverty, with the goal of improving conditions for farmworkers, single parents, school children, seniors, people with disabilities, and entire communities.

Between 2012 and 2017, 53 fair housing complaints in Monterey County had been filed with the California Department of Fair Employment and Housing (DFEH). Among the complaints countywide, most were related to physical disabilities (23 instances) and familial/marital status (ten instances). Discrimination based on race was also included (seven instances). A complaint may involve multiple acts of discrimination and vice versa. A total of 57 acts of discrimination were recorded in Monterey County. Refusal to rent (17 instances), discriminatory statements (12 instances), and denial of reasonable accommodation/modifications (12 instances) were the most common discriminatory acts in the County.31
In 2020, a total of six (6) discrimination cases were found with the Office of Fair Housing and Equal Opportunity. Fifty percent of the cases were filed on the basis of disability bias. None of the complaints alleged racial bias. Figure A-58 illustrates that out of all of the FHEO cases filed in the state of California in 2020 (398), only between 1 and 2.5 percent of the cases were filed in Monterey County. None of the discrimination cases filed in Monterey County in 2020 took place in Sand City.

A total of six (6) discrimination complaints were filed within Monterey County during 2020. Of those cases, three of them alleged discrimination based on disability. Figure A-59 illustrates this statistic by showing that 40.01 to 65 percent of the cases filed in Monterey County during 2020 reflected disability bias. None of the FHEO complaints occurred in Sand City. Due to Sand City’s small size and limited staff, the lack of FHEO complaints may be due to limited education on Fair Housing law and tenant protection rights. To address this issue, the City of Sand City has developed Program 5.A that is intended to provide Fair Housing education and resources to the community via partnerships with local service organizations, and outreach at City-wide events. 31 Source: California Department of Fair Employment & Housing, 2018; Monterey County Regional Analysis of Impediments to Fair Housing Choice, 2019
348
Appendix A – Housing Needs & Fair Housing Report A-100 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-58 FHEO Cases Total, Monterey County, 2020
SOURCE: California Department of Housing and Community Development AFFH Data Viewer 349
Appendix A – Housing Needs & Fair Housing Report A-101 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure A-59 FHEO Cases, Disability Bias, Monterey County, 2020 SOURCE: California Department of Housing and Community Development AFFH Data Viewer 350
Appendix A – Housing Needs & Fair Housing Report A-102 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 NFHA identifies three significant trends in 2020 that are relevant for this AFFH:
 First, fair lending cases referred to the Department of Justice from federal banking regulators has been declining, indicating that state and local government entities may want to play a larger role in examining fair lending barriers to homeownership;  Second, NFHA identified a significant increase in the number of complaints of harassment— 1,071 complaints in 2020 compared to 761 in 2019; and
 Finally, NFHA found that 73 percent of all fair housing complaints in 2020 were processed by private fair housing organizations, rather than state, local, and federal government agencies— reinforcing the need for local, active fair housing organizations and increased funding for such organizations.32
Outreach and Capacity
Currently, Sand City’s website contains limited information about local fair housing ordinances. The website can be improved to more transparently describe how the steps residents should take if they feel they have faced discrimination and are seeking information about filing complaints (e.g., link to HUD’s and State of California fair housing pages). The site should also reference the organizations that provide fair housing services and assistance to City residents. Program 5.A establishes actions the City is committed to taking to adequately provide fair housing resources (see Chapter 2).

The following organizations offer fair housing services and assistance to the residents of Sand City:
 Conflict Resolution and Mediation Center;
 Legal Services for Seniors;
 California Rural Legal Assistance;
 Central Coast Center for Independent Living;
 The Salvation Army Good Samaritan Center;
 Housing Resource Center Salinas; and
 Center for Community Advocacy.

Sand City is compliant with the following state laws that promote fair and affordable housing. The city has not been alleged or found in violation of the following:
 Density Bonus Law (Gov. Code Section 65915) – The City last revised its density bonus ordinance (Ordinance No. 16-05) to comply with state law in 2016. In compliance with state law, the City will update is Density Bonus provisions outlined in the Municipal Code to be consistent with recent changes to the State Density Bonus Law. Program 1.B will regulate this amendment to the Municipal Code (see Chapter 2);
32 https://nationalfairhousing.org/2021/07/29/annual-fair-housing-report-shows-increase-in-housing-harassment/ 351
Appendix A – Housing Needs & Fair Housing Report A-103 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024  No Net Loss Law (Gov. Code Section 65863) requiring that adequate sites be maintained to accommodate unmet RHNA allocations – The City complies with the No Net Loss Law by identifying sites that can accommodate the City’s RHNA;  Housing Accountability Act (Gov. Code Section 65589.5) requiring adoption of a Housing Element and compliance with RHNA allocations – The City will comply with the Housing Accountability Act by approving any eligible housing development projects, including those with at least 20 percent affordable units to lower-income households;  Senate Bill 35 (Gov. Code Section 65589.5) – The City will comply with State law as established in this Housing Element through Program 1.R (see Chapter 2);  Senate Bill 330 – The City will comply with State law as established in this Housing Element through Program 1.R (see Chapter 2);
 California Fair Employment and Housing Act (FEHA)– (Part 2.8 (commencing with Section 12900) of Division 3 or Title 2) – The City complies with the Fair Employment and Housing Act by upholding policies that prohibit housing discrimination based on protected characteristics and enforces these policies by supporting residents seeking to file a complaint to the FHEO or who wish to pursue legal action;
 Federal Fair Housing Act of 1968 – The City has adopted housing policies that prohibit housing discrimination based on protected characteristics and ensuring equal access to housing programs and services;
 Anti-Discrimination in Zoning and Land Use (Gov. Code Section 65008) – The City does not discriminate or deny any individual or group of individuals the right to residence, land ownership, tenancy, or other land use on the basis of one’s membership or perceived membership in a protected class, method of financing, and/or the intended occupancy. The City has adopted housing policies that prohibit discrimination based on protected characteristics.

Further, the City has received zero FHEO complaints, and is committed to conducting outreach and educating residents on Fair Housing Law. Program 5.A in this Housing Element commits the City to providing information on fair housing and services offered in the region (see Chapter 2);
 Assembly Bill 686 (Gov. Code Section 8899.50) – The City has included this assessment of fair housing and identifies strategies to increase housing opportunities for all residents, with specific actions to reduce housing disparities for disadvantaged communities;  Equal Access (Gov. Code Section 1195 et seq.) – The City does not discriminate or deny any individual or group of individuals access to programs or activities operated, administered, or funded with financial assistance from the state, regardless of one’s membership or perceived membership in a protected class. The City included Programs 5.A, 5.B, and 5.C in this Housing Element to promote affordable housing opportunities and resources, including Housing Choice Vouchers, and shared housing programs (see Chapter 2);
352
Appendix A – Housing Needs & Fair Housing Report A-104 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024  Fair Housing Act Title VI of the Civil Rights Act of 1964 – The City does not discriminate or deny any individual or group of individuals the right to residence, land ownership, tenancy, or other land use on the basis of one’s membership or perceived membership in a protected class, method of financing, and/or the intended occupancy. The City has adopted housing policies that prohibit discrimination based on protected characteristics;  Rehabilitation Act of 1973 – The City does not discriminate against persons with disabilities and promotes equal opportunities, accessibility, and independence for individuals with disabilities; and
 American Disabilities Act – The City’s Municipal Code establishes procedures for persons with disabilities seeking equal access to housing including reasonable accommodation for persons with disabilities. The City ensures housing developers comply with the American Disabilities Act through permit process review. The City includes Program 3.L to amend the Municipal Code regulations related to reasonable accommodations (see Chapter 2).

Housing Specific Policies Enacted Locally
Sand City identified the following local policies that contribute to the regulatory environment for affordable housing development in the City.

Policy 2.1: Ensure that new residential developments are adequately served by infrastructure, including water and sewer, park and recreation areas, transportation, public safety and other community services.

Policy 2.2: Ensure that water and sewer providers allocate services on a priority basis to units that meet the City's Regional Housing Needs Allocation.

Policy 2.3: Support the preservation and conservation of existing housing units that provide affordable housing opportunities for City residents and workers.

Policy 3.1: Encourage the provision of services and housing for those households with special needs. In Sand City, these households would include the homeless, seniors and persons with disabilities.

Policy 5.1: Support and market fair housing opportunities and services available to Sand City residents.

Policy 5.3: Develop and utilize all available funding resources in order to provide the maximum amount of affordable housing possible.
353
Appendix A – Housing Needs & Fair Housing Report A-105 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 A.8 Fair Housing Recommendations
AFFH: A Means to Enhance Housing Equity
Within Sand City, steps can be taken to build community trust and bring about policies and programs that further the cause of AFFH. Through taking constant, collective action, the community of Sand City can work together to incrementally change any residual impact of past practices. Through creating policies and programs that align with the tenants of “Affirmatively Furthering Fair Housing” (AFFH), Sand City can take steps to put in place policies to protect community members from discrimination and retaliation. Furthermore, as a component of AFFH, public outreach and community engagement serve as vehicles to bring forth the voices and needs of those who have been historically marginalized. By holding workshops and promoting “Diversity, Equity, and Inclusion” (DEI) educational tools and trainings, the City can work to alleviate barriers to inclusion and housing equity that exist within the community.

DEI trainings could help with addressing not only the racialized components of housing segregation within the Sand City, but also the socio-economic aspects of housing segregation. By focusing on methods to include AFFH within future policies, the stigma surrounding “renting,” as opposed to “owning a home,” could begin to dissipate. Overall, the mission of HCD with respect to AFFH, as supported by Sand City, is to “promote safe, affordable homes and vibrant, inclusive, sustainable communities for all Californians” (California Department of Housing and Community Development, 2021).

Contributing Factors and Fair Housing Action Plan
The disparities in housing choice and access to opportunity discussed above stem from historical actions, socioeconomic factors that limit employment and income growth, barriers to open housing choice, and until recently, very limited resources to respond to needs.

Local Knowledge of Contributing Factors to Fair Housing A recent article33 in the Monterey County Weekly, “The story of how – and why – Del Rey Oaks and Sand City exist” shares insight into the history of Sand City. The article tells a story of eccentric residents as well as industry, both of which persist today. The area that is now Sand City was one of Seaside’s earliest neighborhoods. The article shares a vignette about one of Sand City’s early residents. This resident is named Joe Martori, and he is thought to be depicted by the character “Pirate” in John Steinbecks novel Tortilla Flat, which is about a group of errant friends who live in the forest above Monterey in the 1930’s. Martori lived in a shack in Sand City for 15 years without any plumbing, with his six dogs who would hunt in the sand dunes for their dinner. The article continues on to describe Sand City in the 1960’s as a “hippie-enclave” and an artist-friendly community.
33 Schmalz, David. “The story of how – and why – Del Rey Oaks and Sand City exist.” Monterey County Weekly, 10 August 2023.
354
Appendix A – Housing Needs & Fair Housing Report A-106 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Running parallel to Sand City’s unique identity on the peninsula as a home for eccentric individuals, is Sand City’s industrial identity. The area that is now Sand City was the heavy industrial hub of the southern Monterey Peninsula. In the pre-1950’s there were two large sand mining operations on the beach west of where Sand City’s town center is located today. When Seaside incorporated in 1954, they wrote their first General Plan which called for Sand City’s beaches to be designated for recreational use. This is what ultimately drove the business owners and industrialists in Sand City to incorporate into their own City, ultimately, to control their own destiny and business operations.

Sand City incorporated in 1960 with just 100 registered voters. Many of Sand City’s proponents for incorporation feared losing control of the industrial and business operations within the City.

Since these early years of incorporation, the sand mining operations of Sand City have been shut down. However, Sand City still serves as the industrial and retail hub of the southern Monterey Peninsula, bringing in 40,000 to 50,000 shoppers daily to the City’s businesses which include Costco, Target, and other Big Box stores. The City has also continued on its tradition as an eccentric community, considering itself an artist community. In recent years, the City has embraced mural paintings throughout the mixed-use area or “West End,” hosts a Night Market monthly and conducts the larger two-day West End Celebration (over 150 artists, crafters, vendors and live music festival) annually, both of which are outdoor street fair type of events featuring local chefs, artists, and musicians.

In order to better inform this Housing Element to meet the needs of Sand City residents today, the City solicited the input of the public with a number of prompted questions through an online Stakeholder Survey (Appendix F). The responses were taken into consideration for incorporation into the Housing Element to guide policies and programs that address the housing needs of existing and future residents.

Below are a few of the questions and responses from the Stakeholder Survey.

Question: What factors prevent you from obtaining permanent housing in Sand City? Community members offered the following responses:
 Housing affordability
 Limited supply of housing
 Limited variety of housing options
355
Appendix A – Housing Needs & Fair Housing Report A-107 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Question: How would living in Sand City benefit you?
Community members offered the following responses:
 Being able to walk or bike to the beach
 Close to work
 Ability to live in a beautiful area
Priority of Contributing Factors
Sand City has prioritized the following contributing factors to the Fair Housing issues mentioned above. Table A- 28 presents prioritized fair housing issues and contributing factors, as well as the City’s programs to support a solution-oriented approach to affirmatively furthering fair housing. 356
Appendix A – Housing Needs & Fair Housing Report A-108 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table A-28 Fair Housing Issues & Contributing Factors
Fair Housing Issue Contributing Factor(s) AFFH Programmatic Action Priority Household Characteristics
Sand City has significantly lower proportions
of racial and ethnic minorities compared to
Monterey County and the AMBAG region. The
absences of protected classes and housing
options suitable to them may indicate past
exclusionary behavior.
 Lack of racial and ethnic diversity within the city;
 Lack of adequate affordable housing options.

Program 3.H: Reduced Fees for Affordable
Projects
Program 5.A: Fair Housing Services and
Information
Program 5.C: State and Federal Housing
Programs and Funding
High
Disproportionate Housing Needs Sand City
households are comprised of 17 percent
owner-occupied households and 83 percent
renter-occupied households, of which 68
percent are experiencing at least one of four
housing problems. Additionally, renterhouseholds are disproportionately cost burdened.
 Lack of adequate housing stock that meets the
needs of residents; and
 Lack of affordable housing.

Program 5.A: Fair Housing Services and
Information
Program 5.B: Housing Choice Voucher Program
High
Special Needs Groups
In Sand City, special needs groups comprise
large shares of the population. Of the total
households, Large Households makeup 6
percent, Single-Parent households makeup
11 percent, and Extremely Low-Income
households makeup 14 percent. Additionally,
persons with disabilities makeup 12 percent of
the total population.

These special needs groups experience
disproportionate impacts of poverty, and cost
burden increasing the challenge of obtaining
adequate housing in the City.
 Jobs to housing imbalance;
 Lack of affordable housing.

Program 1.L: Universal Design – Encourage
Accessible Housing for Persons
with Disabilities
Program 3.A: Support the County of Monterey’s
Homeless Continuum of Care plan
Program 3.B: Homeless and Extremely Low
Income: Support for day center
facility and transitional housing
Program 3.C: Senior and disabled: support and
market opportunities to house
seniors and disabled residents
including reasonable
accommodation procedures
Program 3.E: Low Barrier Navigation Center
Program 3.F: Affordable Housing Services for
Extremely Low-Income and Other
Income Restricted Residents
High
357
Appendix A – Housing Needs & Fair Housing Report A-109 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Fair Housing Issue Contributing Factor(s) AFFH Programmatic Action Priority Program 3.H: Reduced Feeds for Affordable
Projects
Housing Stock
Sand City’s increased housing unit production
since 2010 by 60%; however, the lack of
affordable housing production, along with
increasing housing costs create barriers to
enter the local housing market.
 Since 2015, there have been 7 housing permits in
the city for above moderate-income households;
 There is a lack of developable land, and the city is
subject to coastal zoning ordinances.

Program 1.C: Increase Housing Diversity
Program 1.F: Adequate Land Inventory
High
Access to Opportunity
Sand City offers a moderate performing
educational environment with high graduation
rates across races and ethnicities. Access to
employment opportunities are limited to the
majority of students due to the spatial
mismatching of jobs and housing.
 Jobs to housing imbalance;
 Lack of diverse housing stock; and
 Lack of affordable housing.

Program 1.C: Increase Housing Diversity Medium
Fair Housing Enforcement
No residents filed fair housing complaints in
Sand City, indicating a potential lack of
awareness about fair housing rights.
 Lack of access to information about fair housing
rights; and
 Limited knowledge of fair housing by
residents.

Program 5.A: Fair Housing Services and
Information
Program 5.B: Housing Choice Voucher Program
Medium
SOURCE: Sand City and EMC Planning Group
358
Appendix A – Housing Needs & Fair Housing Report A-110 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 A.9 Conclusion
To address the fair housing issues identified throughout this Appendix, the policies and programs listed above are included as a course of action in Chapter 2 of this Housing Element. 359
Housing Constraints

APPENDIX
B
360
361
Table of Contents
APPENDIX B HOUSING CONSTRAINTS ............................................................................. B-1 B.1 Introduction ........................................................................................................................... B-1 B.2 Governmental Constraints ................................................................................................... B-1 B.3 Non-Governmental Constraints ....................................................................................... B-37 Tables
Table B-1 Residential Land Use Designations and Density .................................................. B-2 Table B-2 Residential Development Standards....................................................................... B-6 Table B-3 Permit Processing Times........................................................................................ B-12 Table B-4 City of Sand City Planning Fees............................................................................ B-28 Table B-5 City of Sand City Building Fees............................................................................. B-29 Table B-6 Estimate of total development fees imposed ...................................................... B-31 Table B-7 Parking Requirements ............................................................................................. B-34 Table B-8 Summary of Governmental Constraints .............................................................. B-37 Table B-9 Non-Governmental Constraints and Programmatic Actions ........................... B-49

362
363
Appendix B – Housing Constraints B-1 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Appendix B
Housing Constraints
B.1 Introduction
State law requires that Housing Elements include an analysis of governmental and nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels.

Governmental constraints include land use controls, building codes and their enforcement, fees and exactions, and permitting procedures. Nongovernmental constraints are primarily market-driven and include land costs, construction costs and the availability of financing.

B.2 Governmental Constraints
Governmental regulations, while intentionally regulating the quality of development in the community, can also unintentionally increase the cost of development and thus the cost of housing.

These governmental constraints include land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures. Land use controls may limit the amount or density of development, thus increasing the cost per unit. On-site and off-site improvements like road improvements, traffic signals on adjacent streets or sewer improvements may increase an individual project’s costs of development. Processing and permit requirements may delay construction, increasing financing and/or overhead costs of a development.

Sand City General Plan
The City’s General Plan and Local Coastal Plan are the primary plans that govern development of residential units in Sand City. The City’s Coastal Zone includes approximately 1.5 miles of ocean frontage on the west side of State Route 1 as well as a strip of land 200 feet in width bordering the east side of State Route 1. Also included in the City’s Coastal Zone is that portion of the former Union Pacific Railroad right-of-way within the City boundaries and a 100-foot-wide parallel strip of land adjacent to the western side of the railroad right-of-way.

As required by state law, the General Plan includes a land use map indicating the allowable uses and densities at various locations in the community. The Land Use section identifies five categories of residential uses based on dwelling unit density, expressed as the number of dwelling units permitted per gross acre, as summarized below in Table B-1, Residential Land Use Density Classifications. 364
Appendix B – Housing Constraints B-2 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table B-1 Residential Land Use Designations and Density General Plan Designation Development Category Density1
Single-Family Residential District (R-1) Single-Family Residential 1 to 13 du/ac One-Family & Two-Family Residential District (R-2) One-Family & Two-Family Residential 14 to 25 du/ac Multi-Family Residential District (R-3) High Density Multi-Family Residential 25 to 35 du/ac Coastal Zone Residential (CZ R-2) Medium Density, Coastal Zone 14 to 25 du/ac Coastal Zone Residential (CZ R-3) High Density, Coastal Zone 25 to 35 du/ac Coastal Zone Visitor Serving Residential (CZ VS R-2) Medium Density, Visitor Serving Residential 14 to 25 du/ac Coastal Zone Planned Mixed Use District (CZ MU-P) Mixed Use, Coastal Zone 9 to 20 du/ac Coastal Zone East Dunes Area District (CZ-EDA) Single-Family, Multi-Family, and Mixed Use 9 to 20 du/ac Planned Unit Development District (PUD)2 Planned Unit Development - Planned Mixed Use District (MU-P)3 Mixed Use Development 23 du/ac East Dunes Specific Plan (EDSP) N/A 12-20 du/ac
Public Facilities (PF) Emergency Shelters -
SOURCE: Sand City 2002-2017 General Plan
NOTES: 1. A higher effective density may be achieved on R-1 lots smaller that 3,750 square feet in size.

2. Single-room occupancies and multi-family dwellings are allowed as a conditional use.

3. The number of dwelling units in a PUD district shall be determined based upon the ability of the site to support, and of the City to provide, adequate services. The planning staff shall make a recommendation, based on standard planning criteria, concerning the density of intensity of use.

4. Development areas, consisting of existing lots or newly consolidated and merged lots, equal to or greater than 9,375 square feet are considered better suited for progressively increasing residential unit densities, and may be discretionarily granted density bonuses by the City Council.

The Sand City General Plan was over 20 years old at the time that this 6th Cycle Housing Element update was prepared. The plan is considered out of date and will need to be comprehensively updated in the near future. The plan as currently written does not support the residential densities allowed in the Sand City Zoning Ordinance, which are in many cases significantly higher. The East Dunes Specific Plan is defunct and the area currently developing as South of Tioga has progressed beyond the 2002 plan.

This 6th Cycle Housing Element update includes new Program 1.E to undertake a comprehensive revision to the City’s General Plan (see Chapter 2).

Housing Requirements in the Coastal Zone
California Government Code Section 65588(d) requires that the Housing Element update take into account any low- or moderate-income housing provided or required in the Coastal Zone pursuant to Section 65590 (the Mello Act). State law requires that jurisdictions monitor the following:
 The number of new housing units approved for construction within the Coastal Zone (after January 1, 1982);
• According to Sand City records, The Independent, a portion of which is in the coastal zone, has 10 low-income deed-restricted units and one (1) moderate-income deed-restricted unit 365
Appendix B – Housing Constraints B-3 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 not to expire in the next 10 years. Additionally, the East Dunes area is partially located in the coastal zone, and includes approximately 30 above moderate-income residential units.

Approximately four (4) of the units are located in the coastal zone.  The number of low- or moderate-income units required to be provided in new developments either within the Coastal Zone or within 3 miles of the Coastal Zone; • The City does not have an inclusionary ordinance, meaning there is no requirement for lowor moderate-income units in residential development within the City. However, the South of Tioga development, which is within three miles of the coastal zone, does have a development agreement in place for 52 affordable units.  The number of existing housing units in properties with three or more units occupied by low- or moderate-income households that have been authorized for demolition or conversion since January 1, 1982; and
• There are no deed-restricted properties with three or more units that are located within the coastal zone. No deed-restricted units have been authorized for demolition or conversion since January 1982.
 The number of low- or moderate-income replacement units required within the Coastal Zone or within 3 miles of the Coastal Zone.
• No deed-restricted units have been authorized for demolition or conversion since January 1982. Therefore, no replacement units have been required. However, there are 11 deedrestricted units at The Independent and 52 required in the South of Tioga project via the development agreement.

Local Coastal Program and Coastal Land Use Plan
The Coastal Act requires coastal access and protection of habitat values within environmentally sensitive areas. This means not only protection of rare and endangered plants, but also protection and/or enhancement of the dune coastal strand community within the environmentally sensitive habitat area while preserving access to the coast. Generalized locations of sensitive areas have been identified. Until a more comprehensive habitat conservation strategy is prepared and adopted, future developments within these areas is subject to site-specific review to determine exact locations of habitats and to incorporate mitigation measure to minimize habitat impacts. Projects on the east side of Highway 1 have had to provide habitat protection areas, most notably the South of Tioga future site of residential and commercial uses and the Sand Dollar and Edgewater Shopping Centers.1 1 Source: Sand City General Plan, 2002-2017, page 5-23
366
Appendix B – Housing Constraints B-4 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 The presence of environmentally sensitive habitat areas on the east side of Highway 1 poses a significant government constraint on the development of housing in Sand City. While the City has taken care to exclude properties from the housing sites inventory that are located in the CZ-EDA (Coastal Zone-East Dunes Area) Zoning District and from areas specifically identified “Resource Management Areas” on the Zoning Map, approximately half of all potential low- and moderateincome housing (i.e., 132 units) is, nonetheless, considered by the California Coastal Commission to be located in a potential environmentally sensitive habitat area.

As a practical matter, this means that many of the properties identified for housing development in the 6th Cycle planning period will require site-specific biological studies and, in many cases, “incidental take” permits from the California Department of Fish and Wildlife. As this process is expensive and time consuming, this constitutes a substantial government constraint on the development of housing in Sand City. Unfortunately, this constraint is largely unavoidable. A comprehensive habitat management plan (HMP) could be undertaken by the City or a master developer. Such a process would relieve individual property owners from site-specific surveys but involves years of painstaking research, field surveys, and decision making by both the California Department of Fish and Wildlife and the United States Department of Fish and Wildlife. This 6th Cycle Housing Element update includes Program 1.H, to undertake the preparation of a habitat management plan for the East Dunes Area.

As discussed below, Sand City’s development regulations and Zoning Ordinance provide a development review process that, with some noted exceptions, is well streamlined and free of undue constraints to housing development. The presence of environmentally sensitive habitat area, specifically, and land use regulation by the California Coastal Commission, in general, means that housing development in Sand City nonetheless faces a high bar to succeed. It is, no doubt, a significant part of the reason why the City has struggled to meets its regional housing needs allocation in past cycles (e.g., seven units or 13 percent of RHNA in the 5th Cycle planning period).

It’s also worth noting here that most of the recent remedies brought forward by the California legislature to facilitate housing development are either outright inapplicable in the Coastal Zone (SB 35) or are secondary to California Coastal Commission policies that protect habitat resources (SB 9).

Sand City Zoning Ordinance and Development Review Process This section discusses government constraints related to Sand City’s Zoning Ordinance and development review process.

Sand City Zoning Ordinance
The City of Sand City Zoning Ordinance establishes development standards and densities for new housing in the City. These regulations include minimum lot sizes, maximum number of dwelling 367
Appendix B – Housing Constraints B-5 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 units per acre, lot width, setbacks, lot coverage, maximum building height, and minimum parking requirements. These standards are summarized in Table B-2, Residential Development Standards.

The residential zoning districts and their respective permitted densities and development standards are summarized below. Residential development is permitted By Right in residential zones.

As shown in Table B-2, the minimum building site coverage requirements in districts that permit mixed-use and multi-family residential uses range from a minimum of 60 to 70 percent building site coverage. The City’s current minimum building site coverage requirements are not considered a constraint as they are reasonable and have not hindered the development of residential units in Sand City.

The City's Zoning Code currently permits a maximum height of 36 feet in the R-3 Zone, which may pose a potential barrier to multi-family residential development. To address this potential barrier, the City has proposed an amendment to the Municipal Code to raise the maximum permitted height in the R-3 Zone to 40 feet (four stories). Program 1.S establishes this amendment to the Municipal Code (see Chapter 2).

Currently, the City’s Zoning Code does not require on-site open space according to residential development zones due to the City’s coastal access. The City is within the coastal zone and provides adequate access points to the beach and recreational trails, which provide adequate access to outdoor space and facilities. Additionally, Calabrese Park is within City limits, providing adequate park space for the city.

Single-family residential uses are conditionally permitted uses in the MU-P multi-family residential zoning districts. This acts as a deterrent to single-family uses in a zoning district that allows greater density and can encourage redevelopment of sites with multi-family projects. Single-family uses are directed to specific limited zoning districts as permitted uses to avoid competing with sites in the MUP zoning district.

The Zoning Ordinance contains multiple zoning districts, both within and outside of the Coastal Zone, plus additional overlay districts that provide a high level of granularity and complexity to guide development both inside and outside of the Coastal Zone. Navigating the various zoning districts and overlays can be daunting and are an impediment to development. Consolidating districts to simplify the regulations and minimize the variations in development standards can ease the regulatory process. Some of the zoning districts lack clear development standards for setbacks as shown in Table B-2 below. For example, the MU-P lacks setback information and leave setbacks to the discretion of the approval body, either the Design Review Committee and/or the City Council which increases uncertainty and risk for a housing developer. 368
Appendix B – Housing Constraints B-6 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table B-2 Residential Development Standards
Zoning Minimum Lot
Area (sq ft)
Building Site
Coverage
Density
(du/ac)
Setbacks (ft) Maximum
Height (ft)
Allowed Residential
Uses
Conditionally
Allowed Uses Front Side Rear
R-1 3,750 Min. 60% 11.6 du/ac 5 5 10 30 Single-Family Dwelling (SFD)
Single Room Occupancy
(SRO)
R-2 3,750 Min. 60% 23.2 du/ac 5 5 10 30 SFD; Duplex Multi-Family Dwelling (MFD); SRO
R-31 3,750 Min. 70% 43.6 du/ac 5 5 15 Single Story: 16
Multi-story: 36 SFD; MFD SRO
CZ R-22,3 1,875 Min. 60% 25.0 du/ac 5 0 10 36 SFD; MFD; Duplex CZ R-32,3 1,875
Min. 70% 1-story
Min. 65% multi-story

35.0 du/ac 5 0 15 36 SFD; MFD; Duplex
MU-P4,5 3,750 - 23.2 du/ac See Note See Note See Note 60 SFD; MFD; SRO CZ VS R-23 - 25.0 du/ac See Note See Note See Note 36 Medium Density, Visitor Serving Residential
CZ MU-P3,4,5 3,750 - 23.2 du/ac See Note See Note See Note 60 SFD; Mixed Use; Live/Work
CZ-EDA3,5 - - 20.0 du/ac See Note See Note See Note 36 SFD, MFD, Mixed Use PUD6 See Note (Underlying Zone) (Underlying Zone) See Note See Note See Note See Note (Underlying Zone) (Underlying Zone) PF 3,750 Max. 60% 11.6 du/ac See Note See Note See Note 35 Emergency Shelter SOURCE: City of Sand City, Municipal Code Tile 18 Zoning NOTES: 1. Setbacks may vary for residential structures that exceed two-stories.

2. All development within one hundred (100) feet of the freeway right-of-way (considered as the main thoroughfare right-of-way, excluding on/off ramps) shall be designed so as to minimize significant adverse visual impacts and shall be limited to twenty-five (25) feet in height.

3. Coastal development permit required; CZ district regulations apply. All uses within this district shall be visitor serving timeshare units and shall be restricted to purchase in thirty-one (31) day maximum increments and to occupancy for thirty-one (31) day maximum periods with the following exception: units may be constructed as fee simple specifically to accommodate the transfer of density credit program as established in the local coastal land use plan.

4. The minimum land area of a parcel or lot in created on or before January 17, 1984, and improved with a single-family residence shall be 1,875 square feet.

5. Minimum setbacks as approved by site plan review of the City Council or Design Review Committee.

6. A planned unit development may be located in any zoning district upon the granting of a PUD permit in accordance with the provisions of chapter 18.60 of the City’s Municipal Code. A planned unit development shall include only uses permitted either as permitted uses or conditional uses in the zoning district in which the planned unit development is located. 369
Appendix B – Housing Constraints B-7 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 The 6th Cycle Housing Element update includes Program 1.C, to amend the City’s Zoning Ordinance to include a West End Housing Diversity Overlay which included the following: increase the allowable density to 81 du/ac, replace discretionary setbacks with specific dimensions, assist with lot consolidations, allow multi-family residential uses as a permitted use instead of a conditional use, expedite permit processing, reduce parking standards (see Chapter 2). Furthermore, new Program

1.D sets minimum densities of 20 dwelling units per acre for selected sites to encourage a higher multi-family unit yield (see Chapter 2).

Residential Permitting Process
Processing and permit procedures can pose a considerable constraint to the production and improvement of housing. Common constraints include lengthy processing time, unclear permitting procedures, layered reviews, multiple discretionary review requirements, and costly conditions of approval. These constraints increase the final cost of housing, uncertainty in the development of the project, and overall financial risk assumed by the developer.

Permitting Procedures
Sand City’s residential development permit process is officially initiated with the submission of an application, fees, and necessary plans and drawings for proper review. This is usually a result of one or more preliminary “unofficial” discussions between the applicant and planning staff that then leads to a determination by the Planning Director of the type of permitting required to achieve the project. For larger residential projects this could include a Conditional Use Permit (a land use tool that allows the proper integration into the community of uses that may be suitable only in specific locations in the zoning district or only if such uses are designed or laid out on the site in a particular manner), a Coastal Development Permit (which is basically a Conditional Use Permit issued in zoning districts with a Coastal Zone (CZ) overlay), or a Planned Unit Development Permit (basically a Conditional Use Permit that includes a general development plan). All of these are discretionary processes that are handled by the City Council (Sand City has no separate Planning Commission).

For smaller projects, permitting may only include site plan and design review; however, a Conditional Use permit is usually required. The City also contains many small lots, many of which are substandard, but are still buildable. The Zoning Ordinance is not clear on this issue. An update is necessary to clarify that substandard size lots are encouraged to be consolidated but also may be developed if the lot is substandard in size.

If the residential project is located west of Highway 1, a Coastal Development Permit is required, and this permit is appealable to the California Coastal Commission. If the project is located east of Highway 1, any required Coastal Development Permit (if located in a CZ overlay zone) is nonappealable to the Coastal Commission. 370
Appendix B – Housing Constraints B-8 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Procedurally, the difference between a Conditional Use Permit (CUP) and Coastal Development Permit (CDP) is the processing. Processing a CDP must include a published public hearing notice that is mailed to the California Coastal Commission prior to City Council consideration; it also includes submitting a "Notice of Action" to the California Coastal Commission after City Council action. For projects that are not located west of Highway 1 or within a CZ overlay zone east of Highway 1, no CDP is required. The CUP does not require additional noticing to the California Coastal Commission.

For a large multi-family residential project (six or more units) located in the R-3 Zoning District, the City requires the approval of a Planned Unit Development Permit. For smaller multi-family projects in the R-3 Zoning District, the City requires site planning and design review, and a Conditional Use Permit. In the R-2 Zoning District, the City requires a Conditional Use Permit for multi-family projects of any size. If the project is in a CZ overlay zone, a non-appealable Coastal Development Permit is required.

The Conditional Use Permits are not currently codified in the City’s Zoning Code, which poses a constraint because project applicants are unable to identify if their project is consistent with the zoning district’s intended use and requirements. As such, the City will first codify the Conditional Use Permit findings listed below, which will remove the aforementioned constraint.

1. The intended use for the project is consistent with the use and zoning of surrounding parcels in the zoning district as indicated on the City of Sand City Zoning Map;

2. The establishment of the intended use is allowed under zoning regulations with a Conditional Use Permit

3. Adequate parking can be provided for the project;

4. Utilities, including electricity, gas, and, sewer, are sufficiently available;

5. The City has sufficient water supply for the project;

6. The use is not intended to pose an impediment of traffic flow; and

7. The project complies with the California Environmental Quality Act.

The City has included Program 1.S to include findings of approval for multifamily zones and remove the CUP requirement for multifamily projects within multifamily zones. The Conditional Use Permit requirement in multifamily zoning districts poses both time and density constraints to development.

In 2016, the City revised Chapter 18.72 of the zoning code to simplify the permitting process and address potential conflicts with Coastal Commission appeals (west of the freeway). Development projects can integrate their design review, site plan review, CUP, and PUD approvals all into a single CDP. As all of the residential permitting process employed by the City of Sand are discretionary in nature, CEQA review applies to all projects.
371
Appendix B – Housing Constraints B-9 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Chapter 18.72 references a variety of permit types and it is not always abundantly clear which permits are required and whether Committees are advisory and/or decision-making bodies. As a result, there is a lack of transparency and certainty of entitlement procedures. Additional updates to Chapter 18.72, to clearly identify permit types, recommending and decision-making bodies, and the requisite findings will clarify permitting procedures and remove a constraint. The lack of clear permitting procedures adds to uncertainty and overall financial risk assumed by the developer.

Additionally, the City lacks handouts and/or flow charts illustrating the permitting process procedures. Currently staff field multiple questions regarding permitting requirements. A clear handout that accompanies the Zoning Ordinance updates will also have a beneficial impact to residential housing by clearly laying out in a simplified form the City’s planning entitlement procedures.

The City uses a variety of applications for various permit types. None of these applications are available on the City’s website. This poses a constraint by requiring potential applicants to call the City and request an application. The City's small size and staffing capacity would benefit from a universal application. One application can be crafted for the planning entitlement process and the application can clearly include application requirements such as site plan, elevations, details and additional technical reports like biological reports for CEQA analysis. The 6th Cycle Housing Element update includes Program 1.P to simplify and clarify both the required permit type(s) for multi-family residential uses and the decision-making authority through amendments to the Zoning Ordinance with the goal to minimize the levels of review and establish a permit process that takes four months or less for those projects those consistent with the General Plan and zoning regulations (see Chapter 2). Additionally, the program includes an associated easy to read handout that clearly illustrates the process and the development of a universal application for planning permits. The City will also add language to the zoning ordinance to clarify that sites which are substandard in size are buildable.

These changes will remove processing and permitting constraints by increase certainty of the development of the project and reducing overall financial risk assumed by the developer.

Site Plan and Design Review
All residential projects in Sand City are required to undergo site plan and design review, which is undertaken by initially by staff for all projects and then referred to the Design Committee that meets on an ad hoc basis. If projects include a Conditional Use Permit, Coastal Development Permit, and/or Planned Unit Development Permit, site plan and design review are integrated into the larger permit. This review is guided by development guidelines and standards for architecture and site planning that were adopted in 2001.2 It is also guided by the recent 2019 Sand City Vibrancy Plan which refers to the West End Design Guidelines.
2 See Resolution No. SC 01-64, 2001
372
Appendix B – Housing Constraints B-10 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 The West End Design Guidelines apply to commercial, residential and mixed-use architecture and are over a decade old. The City’s goal is to create a vibrant, exciting sense of place by being visually interesting and imaginative, functional but not bland. The City strongly encourages the use of Industrial Chic architectural style. Industrial Chic has many elements reminiscent of the 1940’s and ‘50s architecture, with the restrained use of simple geometric shapes and ornamentation. The guidelines apply to the transformation of older structures and to new construction alike. The guidelines reference site planning and building form types that incorporate many objective standards such as:
 Orient the main façade of the building to the street;  Utilize the form of the lot for the footprint of the building;  Use simple geometric shapes; and
 Use simple geometric shapes such as rectangle or square for windows.

The West End Design Guidelines do not appear to be a development constraint because of the use of objective standards. However, due to the age of the 2001 design guidelines that apply to specific areas of the City, and recent state legislation, the 6th Cycle Housing Element update includes Program 1.G to develop and adopt Objective Design Standards (ODS) for multi-family developments. The objective design standards are currently underway and scheduled for City Council adoption in Summer 2024. Prior to going before the City Council for adoption, the objective design standards will be reviewed by the Design and Review Committee, and subsequently undergo a public review period, which will include a public workshop.

Permit Processing Timeframes
Processing and permit procedures can pose a considerable constraint to the production and improvement of housing. Common constraints include lengthy processing time, unclear permitting procedures, layered reviews, multiple discretionary review requirements, and costly conditions of approval. These constraints increase the final cost of housing, uncertainty in the development of the project, and overall financial risk assumed by the developer.

The residential development process proceeds through various stages, each of which requires some form of City approval. Initial processing of a development application depends on the type of project proposed (e.g., planned unit development, lot subdivision) as well as whether additional requirements will need to be met (e.g., rezoning of land, environmental reviews). There has been very limited new residential construction in Sand City with the exception of the 8-unit Catalina Loft residential development.

South of Tioga
The City planning department has spent considerable time during the 5th Cycle planning period, working on the South of Tioga complicated planning entitlement process which involved working 373
Appendix B – Housing Constraints B-11 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 with many outside agencies and is planned as a mixed-use project with a large housing component of 356 units, 15 percent of which are affordable and addressed in an approved Development Agreement. The overall South of Tioga (SOT) project was proposed by DBO Development that includes a hotel and residential development on six (6) newly created parcels (H1, H1A, H2, H2A, R1 & R2). The project is located in the central portion of the City, generally referred to as the South of Tioga area. South of Tioga is approximately 10 acres bounded by Tioga Avenue to the northeast, California Avenue to the southeast, East Avenue to southwest, and the Merle Street right-of-way (not improved) to the northwest. South of Tioga was comprised mostly of blighted light industrial / warehouses, heavy commercial uses, undeveloped but degraded sand dunes, and several dilapidated residential structures. Demolition commenced in 2021; and the last structures were demolished by mid-2022. The residential structures are anticipated to be constructed during the 6th Cycle Housing Element period. Program 1.A specifically addresses this area and in an effort to support near-future residential development, the City is willing to consider altering the Development Agreement via an amendment by ordinance to include incentives to increase the viability of financing the residential portions of the project. Incentives could include but are not limited to:
 Separating the affordable and market rate units;
 Increasing the number of affordable units and therefore density; and  Waiving, reducing, decoupling parking requirements, and/or removing the concrete base parking from the podium style building structure.

Permit Processing
Because of its small size, Sand City has fairly efficient permit processing time frames for small to mid-size residential projects compared to other communities. Sand City’s permit processing efficiencies are primarily attributed to the fact that the City Council also acts as the Planning Commission. No other community within Monterey County provides this development accommodation. This organizational structure eliminates a significant development review step and saves time because one decision-making body acts as the approval authority and appeals from citizens are rare due to the small number of residents and close access to Council members. The Council meets twice per month which affords timely Council review and decision-making. Larger more complex projects take longer due to the small size of the City and staffing constraints.

Table B-3, Permit Processing Timelines, describe the typical permit processing time frames, which include single-family, multi-tenant, and mixed-use developments. Processing times for development review vary, based on the size of the project and the extent of environmental review required, and can range from six months to more than one year if an EIR is required. When an application is submitted, it is reviewed within 30 days to verify that it is complete or the applicant is notified that it is incomplete. Once the application is complete, typical processing times are as follows, in line with 374
Appendix B – Housing Constraints B-12 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 the requirements of the State Permit Streamlining Act of 1992. The City makes a determination of CEQA streamlining or exemption within 30 days of receiving a complete application. Typical processing time is about one month for a single-family home, and about four to six months for a multiple-family housing project, unless delayed by the environmental clearance process due to significant environmental impacts.

Table B-3 Permit Processing Times
Development Type Land Use
Entitlement1
Architecture
Review1 Building Permit
Single-Family Dwelling2 30-45 days 30-45 days 21 working days for first submission 10 working days for each subsequent plan-check
Multi-Tenant Permit 30-45 days 30-45 days 21 working days for first submission 10 working days for each subsequent plan-check
Mixed-Use Residential and
Commercial2
30-45 days 30-45 days 21 working days for first submission 10 working days for each subsequent plan-check
SOURCE: City of Sand City
NOTES: 1. Double time if Negative Declaration required

2. Land Use Entitlement and Architecture Review are processed concurrently, while building permits are typically postponed until after all Planning Department approvals are issued.

Processing permits efficiently and increasing public access to permitting information increases certainty in the development of a project. Databases can form a critical component to accurate track and record permit approval on property. The City currently uses the iWorq database to track building permits; however, the information is not easily accessible to the public and increases staff time who respond to calls about individual project activity. A database that clearly shows pertinent information to the public increases staff capacity for other critical tasks related to housing development and increases City accountability. The 6th Cycle Housing Element includes Program

1.O to update the iWorq database to include permit information on the City’s website. Additionally, the database will be augmented to better track affordable units.

In an effort to further improve service and responsiveness, the City currently contracts with consulting firms to provide planning and building permitting services. The consulting firms provide consistent and responsive building permit services to the community and a high level of service to the community. Given the City’s small size and limited staffing, permit review for large housing planning entitlement and building permit applications the 6th Cycle Housing Element includes a Program 1.Q to contract out permit review and establish one single point of contact to further expedite multi-family housing applications. This procedure lends itself well particularly for larger housing proposals to expedite the review process.
375
Appendix B – Housing Constraints B-13 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 For projects located east of Highway 1, the entire permitting process usually takes six (6) weeks to two (2) months. The same holds true for single-family development. West of Highway 1, however, projects located within this portion of the Coastal Zone are appealable to the California Coastal Commission. In this case, if the project is perceived to be controversial, time limits expand significantly, and the outcome is uncertain.

Environmental Review
Environmental review is required for all development projects under CEQA. Sand City has a number of environmental constraints due to its coastal location and extensive sensitive habitat areas.

Because of these environmental constraints, larger residential projects have required preparation of EIRs. An EIR is required of all developments that have the potential of creating significant impacts that cannot be mitigated. Most residential projects in Sand City are either Categorically Exempt or require only an Initial Study and Negative Declaration. The Negative Declaration process typically takes three to six months to complete, depending on staffing levels and workloads. Categorically Exempt developments such as accessory dwelling units require a minimal amount of time. As a result, State-mandated environmental review does not pose a significant constraint to housing development.

Special Housing Topics
This section discusses a number of special housing topics that have been the subject of recent legislation by the California Legislature.

Accessory Dwelling Units
The City of Sand City updated its Municipal Code in 2021 to comply with new state law regarding accessory dwelling units (ADU) and junior accessory dwelling units (JADU). However, State ADU laws were updated in 2023. To bring the City’s ADU ordinance into compliance with State law, the City has established Program 1.K to monitor the implementation of updating the City’s ADU ordinance (see Chapter 2).

According to the City’s ordinance, an accessory dwelling unit means an attached or a detached residential dwelling unit which provides complete independent living facilities for one or more persons. It includes permanent provisions for living, sleeping, eating, cooking and sanitation on the same parcel as the primary residence is situated.

Accessory dwelling units are allowed ministerially, without discretionary review or a hearing in all zoned areas where single-family and multifamily residential uses are allowed, including the Planned Mixed-Use zoning district. Junior accessory dwelling units are allowed ministerially, without discretionary review or hearing, on properties zoned for single-family dwellings and where a single376 Appendix B – Housing Constraints B-14 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 family dwelling either exists or is proposed to be built.3 Junior Accessory Dwelling Units can be an effective method to increase the number of smaller studio and/or small one-bedroom units because they are generally less expensive to build.

Habitat for Humanity of Monterey Bay offers an ADU financing program targeted at low-income qualified seniors to encourage the construction of new ADUs. A zero percent interest loan of up to $100,000 is available for income qualified residential property owners. The owner must invest at least $40,000 and allow Habitat for Humanity to provide labor. A deed restriction is placed on the property; however, if the ADU is rented to a low income verified tenant, the principal of the loan is reduced every year a low-income tenant occupies the unit and the property owner is reimbursed 1/20th of the loan. This program is an effective way to defray the high construction costs and to encourage construction of ADUs. In order to further encourage smaller, more affordable rental housing units in support of Sand City demographics which show low median incomes and small households, the 6th Cycle Housing Element includes Program 1.K to promote JADUs in order to facilitate construction of smaller JADU units that are less costly to build and have lower rents, and a program to promote the Habitat for Humanity ADU loan program.

Mobile Home Parks
State law requires manufactured homes be permitted equally anywhere that single family homes are permitted. Although the 2021 American Census Survey did not identify any mobile homes in Sand City, Mobile and manufactured homes are currently allowed by the Zoning Ordinance as a permitted use in the R-1 zone and as a conditional use in the R-2 and R-3 zones.

To remove barriers to the development of mobile and manufactured housing, the City has included Program 1.S to amend the Zoning Code to permit mobile and manufactured housing in all zones, including the R-2 and R-3 zones, where single-family residential is allowed, in compliance with Government Code Section 65852.3(a).

SB 35 Streamlining
Government Code section 65913.4 allows qualifying development projects with a specified proportion of affordable housing units to move more quickly through the local government review process and restricts the ability of local governments to reject these proposals. The bill creates a streamlined approval process for qualifying infill developments in localities that have failed to meet their RHNA, requiring a ministerial approval process, removing the requirement for CEQA analysis, and removing the requirement for discretionary entitlements. A substantial portion of the City is located within the California Coastal Zone and/or is habitat for protected species that is not subject to SB 35.4 However, a portion of the City is subject to SB 35 streamlining provisions when 3 Sand City Municipal Code 18.63.030 (Ord. 21-01 §1).
4 See Government Code §65913.4(a)(6)
377
Appendix B – Housing Constraints B-15 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 development proposals include at least 10 percent affordability due to insufficient progress toward Above Moderate Income RHNA units.5 No SB 35 projects have been submitted to the City to date.

The City does not currently have a specific checklist or procedures to facilitate SB 35 projects. The City included new Program 1.R, to develop an SB 35 checklist and written procedures for processing applications to ensure efficient and complete application processing (see Chapter 2).

SB 330 Priority Processing
SB 330 enacts changes to local development policies, permitting, and processes that will be in effect through January 1, 2025. SB 330 places new criteria on the application requirements and processing times for housing developments; prevents localities from decreasing the housing capacity of any site, such as through downzoning or increasing open space requirements, if such a decrease would preclude the jurisdiction from meeting its RHNA housing targets; prevents localities from establishing non-objective standards; and requires that any proposed demolition of housing units be accompanied by a project that would replace or exceed the total number of units demolished.

Additionally, any demolished units that were occupied by lower-income households must be replaced with new units affordable to households with those same income levels. The 6th Cycle Housing Element includes a Replacement Unit Program, Program 2.D, in compliance with State law.

SB 9 California Housing Opportunity and More Efficiency (HOME) Act SB 9, also known as the California Housing Opportunity and More Efficiency (HOME) Act, is a state bill that requires cities to allow one additional residential unit onto parcels zoned for singledwelling units. For properties located within a Coastal Zone, properties can still qualify for SB 9 only if:
 All applicable California Coastal Act and Local Coastal Program provisions are met; and  The project receives a coastal development permit prior to pursuing development.

Unlike non-coastal SB 9 projects, the SB 9 streamlining ministerial approval process does not automatically apply for properties in the Coastal Zone. Essentially, coastal SB 9 projects must adhere to state and local coastal development guidelines and may take longer to get permitted. The only exception is that the City is not required to hold public hearings for coastal development permit applications on SB 9 projects. Nonetheless, Local Coastal Program (LCP) provisions still apply and local governments should adopt LCP amendments that harmonize SB 9 requirements as much as is feasible. SB 9 developments must follow all LCP requirements, even if they conflict with SB 9. 5 SB 35 Statewide determination summary 2023
378
Appendix B – Housing Constraints B-16 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 To date, the City has taken no action to facilitate SB 9 projects. The 6th Cycle Housing Element update includes new Program 1.I to better facilitate SB 9 projects outside of the confines of Coastal Zone regulations (see Chapter 2). Codifying the regulations to allow new residential construction on new lots created under SB 9 with the same or similar development standards as the existing City Zoning districts provides a clear process and parity with existing lots.

Special Needs Housing
Residential Care Facilities
The City allows residential care facilities, also known as multi-family units or group homes, of six (6) or fewer persons as a permitted use in residential areas. Facilities for seven (7) or more persons may require a use permit but the City expedites the request, as quickly as possible, and minimizes required fees to the extent feasible. The Zoning Ordinance was amended on August 7, 2007, to allow residential care facilities in all areas where the City allows residential uses.6 In compliance with the federal Fair Housing Act and the California Fair Employment and Housing Act, added Section

18.78.060 to the Sand City Municipal Code. The ordinance was adopted on April 3, 2007, and identifies those zoning/land use applications where reduced processing time, streamlined procedures and fee reductions/waivers are allowed.

While residential care facilities are a permitted use, the City could benefit from providing a clearer and expanded definition of residential care facilities to include group homes and sober living homes for residents with disabilities. Currently, Sand City’s Zoning Code places a limitation of six (6) individuals on the number of residents permitted in residential care facilities. This has the potential to pose a constraint on housing selection for residents with disabilities. As such, the City has included program 3.K to further expand the definition of residential care facilities to permit group homes that provide licensable services to seven or more residents.

Residential care facilities are permitted in the following zones:
 R-1 (based on the definition of supportive housing);
 R-2;
 R-3; and
 MU-P (subject to a Conditional Use Permit).

In addition to the housing choice constraints that zoning-based numerical restrictions can pose to residents with disabilities, when selecting residential care facilities, Conditional Use Permits as a requirement in specific zoning districts could also be a constraint to residents with disabilities. The City has included Program 3.K to amend the zoning code to permit residential care facilities within the MU-P zoning district by-right, in accordance with Government Code Section 65651. 6 Ordinance No.: 07-04
379
Appendix B – Housing Constraints B-17 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Transitional and Supportive Housing
Transitional housing is defined in Section 50675.14 of the Health and Safety Code as rental housing for stays of at least six (6) months but where the units are recirculated to another program recipient after a set period. It may be designated for a homeless individual or family transitioning to permanent housing. This housing can take many structural forms such as group housing and multifamily units and may include supportive services to allow individuals to gain necessary life skills in support of independent living.

Supportive housing is defined by Section 50675.14 of the Health and Safety Code as housing with linked on-site or off-site services with no limit on the length of stay and occupied by a target population as defined in Health and Safety Code Section 53260 (i.e., low-income person with mental disabilities, AIDS, substance abuse or chronic health conditions, or persons whose disabilities originated before the age of 18). Services linked to supportive housing are usually focused on retaining housing, living and working in the community, and/or health improvement.

Both transitional and supportive housing types are defined in the City’s Municipal Code and are permitted in R-1, R-2, R-3, and MU-P zoning districts. Currently, transitional and supportive housing is not permitted in the following zones that permit residential uses: CZ R-2, CZ R-3, CZ MU-P, CZ VSC, CZ VS R-2, and CZ-EDA. SB 2 (2007) requires that transitional and supportive housing types be treated as residential uses and subject only to those restrictions that apply to other residential uses of the same type in the same zone. In compliance with this mandate, The City of Sand City has added a program (see program 1.S in Chapter 2) to allow supportive housing as a use by-right in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses pursuant to Government Code section 65651.

The nonprofit Salvation Army Day Center provides many services to extremely low income and homeless individuals including case managers, public benefits, food distribution, laundry and shower facilities. Although the Center does not provide transitional or supportive housing facilities, the Salvation Army does provide transitional housing in the adjacent City of Seaside. The 6th Cycle Housing Element includes program 3.B to continue working with the nonprofit organization to further support and expand programs, including the possibility of transitional housing, at the current Day Center location.

Emergency Shelters
Homelessness in California is a continuing crisis that demands the effective involvement of both the public and private sectors. California has the highest population of people experiencing homeless.

Emergency shelter is defined as “housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less by a homeless person. No individual or household may be denied emergency shelter because of an inability to pay.” (See Gov. Code, § 65582, subd. (d) and Health and Safety Code, § 50801, subd. (e).) The California Legislature amended Government Code Section 65583(a)(4) in 2022 to expand the definition of emergency shelters and address 380
Appendix B – Housing Constraints B-18 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 regulations. Essentially, local jurisdictions must identify a zone or zones where emergency shelters are allowed By Right (without any conditional use permit or other discretionary action). The local jurisdiction is allowed to set standards for the development of emergency shelters but are limited to objective standards that address a specific and limited set of criteria. As the approval of emergency shelters is a non-discretionary action, it qualifies as exempt under the California Environmental Quality Act (CEQA).

Housing Element updates must include an analysis of any development standards for emergency shelters to confirm that they comply with the state mandate. If the jurisdiction can demonstrate that is party to a multijurisdictional agreement that provides emergency shelters outside the City limits, it is not required to identify a site or sites within the City. Sand City has no multijurisdictional agreement for providing emergency shelter, and it currently has no permanent emergency shelters in its City limit. The City’s Zoning Ordinance does, however, include an emergency shelter as a permitted use in the Public Facility (PF) Zone. Currently, the City requires a design permit and site plan review for all new construction and significant remodeling of existing structures within this zoning district.7
Also, regardless of the need, at a minimum, all jurisdictions must have a zone in place to permit at least one year-round emergency shelter without a conditional use permit or any discretionary permit requirements. This 6th Cycle Housing Element update includes Program 3.D (see Chapter 2) to eliminate any element of these regulations that does not conform to the standards for emergency shelters, such as the design permit, mandated by the amended Government Code. The site permit requirement will remain in place because of the objective nature of site permit requirements such as setbacks and height regulations. Additionally, Program 3.D establishes an amendment to the Municipal Code to amend the definition of emergency shelters in compliance with AB 2339 (see Chapter 2).

As described in Appendix A – Housing Needs & Fair Housing Report, the 2022 Monterey Homeless Count and Survey Comprehensive Report prepared by Applied Survey Research, there are three (3) unsheltered homeless people living in Sand City. AB 2339 provides a general guidance of 200 square feet per person as the minimum site size requirement for an emergency shelter.8 A site area of approximately 2,000 square feet (0.04 acres) would be sufficient to house up to 10 people, and therefore accommodate the City’s homeless population of three (3) people, including a buffer.

In 2010, the City approved the Public Facilities (PF) zone to accommodate 2-bed emergency shelters.
9 The PF zone was the most appropriate for emergency shelters because the sites currently zoned or slated to be rezoned to PF are near transportation and services. Furthermore, the PF Zone 7Ordinance No. 16-05 §11
8 Government Code 65583(3)(I).
9 Ordinance No. 10-05
381
Appendix B – Housing Constraints B-19 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 is situated between the M-PUD and C-2 Zoning Districts, which both permit residential uses. No hazardous conditions exist in the PF Zone or adjacent zones. A two-bed limit for emergency shelters poses challenges to their development due to the financial challenges associated with creating such small-scale shelters. Moreover, this limit may lead to underutilization of available space. To address these obstacles and facilitate the development of emergency shelters within the City, Program 3.D proposes an amendment to the Municipal Code. This amendment aims to eliminate the two-bed limit as outlined in Ordinance 10-05.

According to AB 139 (Government Code Section 65583(a)(4)(A)), local jurisdictions may not require parking standards for emergency shelters that are beyond what is required for other residential or commercial uses within the same zone. Sand City’s parking standards in the PF Zone require adequate on-site parking and loading facilities per Municipal Code 18.64. To ensure parking requirements do not pose a constraint to the development of emergency housing, Program 3.D establishes an amendment to the Municipal Code to clarify parking requirements for emergency shelters in compliance with the government code (see Chapter 2).

Development standards in the PF Zone include a minimum lot area of 3,750 square feet; 60 percent maximum building coverage; no specific setback requirements; and maximum height of 35 feet (three stories). These standards do not pose a significant constraint to the development of emergency shelters. Potential sites for the development of an emergency shelter in the City’s PF Zone are detailed below.

There are approximately seven (7) acres of PF zoned land currently. Most sites are “underutilized” in that they have an existing use, but there is additional capacity within each site to sustain a small shelter. For example, City Hall and Calabrese Park constitute 27,850 square feet and the City Hall parking lot is an additional 5,475 square feet. An emergency shelter large enough to accommodate up to 27 beds, exceeding the City’s estimated need of three (3) beds, could potentially be located on the parking lot adjacent to City Hall. This building would likely be designed to have four bedrooms with four bunks in each room, allowing for the separation of men and women, if necessary.

Given that the City has property appropriately zoned and available for a shelter for up to 27 beds, the City is in compliance with State law. Additionally, the City has included Program 3.D to establish amendments to the Municipal Code to permit emergency shelters in the PF Zone in accordance with State law and to remove barriers to development (see Chapter 2).

Single Room Occupancy
Assembly Bill (AB) 2634 (Lieber, 2006) requires the quantification and analysis of existing and projected housing needs of extremely low-income households. Elements must also identify zoning to encourage and facilitate supportive housing and single-room occupancy units. 382
Appendix B – Housing Constraints B-20 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Extremely low-income households typically comprise at persons with special housing needs including but not limited to persons experiencing homelessness or near-homelessness, persons with substance abuse problems, and farmworkers. The City’s Zoning Ordinance currently allows SROs in the R-2, R-3, and the MU-P districts.

Low Barrier Navigation Centers
Homelessness in California is a continuing and growing crisis. Individuals and families experiencing homelessness are without permanent housing largely due to a lack of affordable housing.

Homelessness is often compounded by a lack of job training and supportive services to treat mental illness, substance abuse, or domestic violence. AB 101, adopted in 2019, requires approval By Right for low barrier navigation centers that meet the requirements of State law. “Low Barrier Navigation Center” means a housing first, low-barrier, service-enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. If the City receives applications for these uses, it will process them as required by State law. The Salvation Army day facility provides many of these services and connects clients to transitional housing.

The 6th Cycle Housing Element update includes Program 3.E to develop by right procedures for processing low barrier navigation centers including amending the Zoning Code definitions and allowing low barrier navigation centers as a permitted use in the PF Public Facilities zoning district.

Program 1.S establishes an amendment to the Zoning Code to permit low barrier navigation centers as a use by-right in zones where mixed uses are permitted, including nonresidential zones permitting multifamily uses pursuant to Government Code section 65660 (zones R-3, CZ-R-3, MU-P, CZ-MUP, CZ-EDA, and MU-P).

Employee Housing Act
The housing needs analysis in Appendix A of this Housing Element indicates that approximately 4.3 percent of individuals residing in Sand City reported that they were employed in the Agriculture, Forestry, or Fishing and Hunting industry.10 Accordingly, the City has not identified a need for specialized farmworker housing beyond overall programs for housing affordability.

The City included Program 1.S to amend the Municipal Code in compliance with Health and Safety Code Section 17021.5, to define and permit employee housing for six or fewer employees to be treated as a single-family structure and permitted in the same manner as other dwellings of the same type in the same zone (see Chapter 2).
10 Sand City 2021 ACS data; Source: City of Sand City, California - Census Bureau Profile 383
Appendix B – Housing Constraints B-21 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Constraints for Persons with Disabilities
California Senate Bill 520 (SB 520), passed in October 2001, requires local Housing Elements to evaluate constraints for persons with disabilities and develop programs which accommodate the housing needs of disabled persons.

The City has reviewed all of its zoning laws, policies and practices for compliance with fair housing law and is currently compliant with all legislation. In compliance with the federal Fair Housing Act and the California Fair Employment and Housing Act, Ordinance SC 07 02, in Section 18.78.060 of the Sand City Municipal Code identifies those zoning and land use applications where reduced processing time, streamlined procedures and fee reductions/waivers are allowed.

Requests for Reasonable Accommodation
The State of California and Federal law requires that landlords provide “reasonable accommodations” and “reasonable modifications” to tenants with disabilities. A “reasonable accommodation” is a change in a landlord’s rules, policies or practices, or a change in ways the housing services are provided; a “reasonable modification” is a physical change in a housing unit or common area that is necessary for a person with a disability to use or enjoy the housing.

A request for reasonable accommodation may be made by any person with a disability, their Representative or any entity, when the application of a zoning law or other land use regulation, policy or practice acts as a barrier to fair housing opportunities. A person with a disability is a person who has a physical or mental impairment that limits or substantially limits one (1) or more major life activities, anyone who is regarded as having such impairment or anyone who has a record of such impairment. A request for reasonable accommodation may include a modification or exception to the rules, standards and practices for the siting, development and use of housing or housing-related facilities that would eliminate regulatory barriers and provide a person with equal opportunity to housing of their choice. Residential parking standards for persons with disabilities are not different from other parking standards. However, if a proponent could demonstrate a need for reduced parking this could be considered as part of a discretionary review.

As a result of the small size of the City and limited number of City staff, requests for reasonable accommodation go directly to the City’s Planning Department. Requests for reasonable accommodation are immediately reviewed by the Planning Department, as long as no discretionary land use approval is sought other than the request for reasonable accommodation. When the request is under the Planning Department’s purview, the department makes a written determination within 45 days and either grants, grants with modifications or denies a request for reasonable accommodation in accordance with Section 18.78.060.
384
Appendix B – Housing Constraints B-22 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 In granting a request for reasonable accommodation, the reviewing authority may impose any conditions of approval deemed reasonable and necessary to ensure that the reasonable accommodation complies with the required findings.

1. Whether the housing which is the subject of the request will be used by an individual disabled under the Acts;

2. Whether the request is necessary to make specific housing available to an individual with a disability under the Acts;

3. Whether the requested accommodation would impose an undue financial or administrative burden on the City;

4. Whether the requested accommodation would require a fundamental alteration in the nature of a City program or law, including but not limited to land use and zoning;

5. Potential impact on surrounding uses;

6. Physical attributes of the property and structure(s); and

7. Alternative reasonable accommodations which may provide an equivalent level of benefit.

Should the City Council ultimately decide on the request for reasonable accommodation due to its related land use authority, that decision shall be non-appealable and final. If, however, the Community Development Director or the Design Review Committee denied the request of reasonable accommodation, said decision shall be appealable to the City Council for final resolution.

The City of Sand City has updated it Zoning Ordinance to provide reasonable accommodations in a manner fully compliant with state and federal regulations (see Section 18.78.060). The City has included Program 3.C to update the City’s reasonable accommodation procedures to remove subjective language from the findings.

The findings requirement that the requested accommodation would not result in a “significant impact on surrounding uses” is a discretionary standard that could impose constraints on improvements to make housing accessible to persons with disabilities. To eliminate subjectivity in the review of requests for reasonable accommodations, the City will amend the Municipal Code to remove the findings requirement for requested accommodations stating the requested accommodation will not “impose an undue financial or administrative burden on the City,” and result in a “significant impact on surrounding uses.” Program 3.C will establish and monitor these amendments to the City’s Municipal Code.

Currently, there are no brochures or informational flyers regarding reasonable accommodation at the City’s planning counter. In order to further mitigate the constraints for persons with disabilities, the City will undertake the following actions:
 Conduct educational workshops for landlords and tenants; 385
Appendix B – Housing Constraints B-23 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024  Connect to organizations and fair housing resources;
 Encourage tenants with disabilities to file discrimination complaints if necessary;  Establish a single point of contact to handle reasonable accommodation issues and provide necessary info; and
 Create an informational worksheet/flyer to distribute at Sand City’s front desk.

Definition of Family
According to Section 18.04.245 of the City’s Municipal Code, a family is defined as “a person living alone, or two or more persons living together as a single housekeeping unit in a dwelling unit, as distinguished from a group occupying a boardinghouse, lodging house, motel or hotel, fraternity or sorority house.” The definition should not distinguish between related and unrelated persons and should not impose limitations on the number of people that may constitute a family. To comply with State law, the City of Sand City will implement Program 3.K to amend the Municipal Code to update the jurisdiction’s definition of “family” to comply with all federal and state fair housing laws (see Chapter 2).

Density Bonuses/Incentives for Affordable Housing Developments The City of Sand employs two types of density bonus to encourage higher-density housing—the mandatory state density bonus and Sand City’s own local density incentive. Each of these is discussed in detail below. Beyond these two incentives for affordable housing developments and the Short-Term Rental Ordinance, the City does not have any other locally adopted ordinances that directly impact the cost and supply of residential development (I.e.: inclusionary requirements or growth controls).

State Density Bonus
State law requires jurisdictions to provide density bonuses and development incentives to all developers who propose to construct affordable housing on a sliding scale, where the amount of density bonus and number of incentives vary according to the amount of affordable housing units provided. Specifically, state law requires the provision of total units to be affordable to lower- and moderate-income households. Under current state law, builders who opt to include affordable units in their residential projects are allowed to increase the total number of housing units in the project to cover the costs of the affordable units. Known as the state density bonus, this incentive requires local jurisdictions to provide a density bonus (or equivalent financial incentives) of at most 35 percent to housing developers who agree to construct one of the following conditions: five percent of the units affordable to very low-income households; 10 percent of the units affordable to lowerincome households; and 10 percent of the housing units in a for-sale common interest development are restricted to moderate income resident.
386
Appendix B – Housing Constraints B-24 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Until 2018, it was nearly impossible to apply the density bonus to new housing that caters exclusively to students even if it included affordable units. This was corrected by SB 1227, which made two changes: 1) allowing 100 percent student serving housing projects to apply the density bonus based on the number of bedrooms or beds instead of the number of housing units and 2) allowing students to submit financial aid documents as the documentation to qualify for affordable units.

State density bonus law was again amended in 2022 (SB 290 and SB 728) to add the ability to request one concession or incentive for projects that include at least 20 percent of the total units for lowerincome students in a student housing development. It also requires the agency to report on student housing projects receiving density bonuses as part of a Housing Element annual report.

More broadly, the amendments:
 Clarified that the State density bonus law more broadly applies to projects with for-sale housing by replacing prior references to "common interest developments" with references to for-sale housing;
 Provided that when determining the required percentage of units that must be affordable in order to qualify for State density bonus law benefits, the "total units" or "total dwelling units" excludes the units added pursuant to the State density bonus law or a local law granting a greater density bonus;
 Provided that an impact on the physical environment is no longer an appropriate basis for denying a concession or incentive, aligning the State density bonus law with the Housing Accountability Act's (HAA) basis for denying or reducing the density of a qualifying housing development project;
 Imposed a new parking maximum of 0.5 spaces per bedroom for a development that includes 40 percent moderate income, for-sale units and is within a half-mile of a major transit stop to which residents have unobstructed access; and
 Required that units resulting from density bonus be either 1) initially occupied by a person or family of the required income, offered at an affordable housing cost and subject to an equity sharing agreement, or 2) purchased by a qualified nonprofit housing organization receiving a property tax welfare exemption. For option 2, a recorded contract must memorialize a) affordability restrictions for at least 45 years, b) an equity sharing agreement and c) a repurchase option that requires a subsequent purchaser desiring to sell or convey the property to first offer the nonprofit corporation the opportunity to repurchase the property.

The City last revised its density bonus ordinance (Ordinance No. 16-05) to comply with state law in 2016. The 6th Cycle Housing Element update includes new Program 1.B to amend the City’s density bonus provisions to reflect recent changes in state law if applicable (see Chapter 2). Increasing the density above the current State law thresholds will encourage maximizing the use of property for residential units and increase overall unit count. To further incentive housing development in Sand City a program is included to include a 10 percent increase as a pro-housing measure. 387
Appendix B – Housing Constraints B-25 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Local Density Incentive
In 2017, the City of Sand amended its Zoning Ordinance to provide a local density incentive for projects located in the MU-P zoning district. The new provisions set density standards for residential development and included provisions for a local density incentive to encourage the consolidation of the many substandard-sized lots in the City. The local density incentives, which applies above and beyond the state density bonus provisions, were set as follows:
 Existing lots or newly consolidated merged lots of 9,375 square feet to 16,874 square feet may be granted up to a maximum 25 percent density bonus;
 Existing lots or newly consolidated merged lots of 16,875 square feet to 24,374 square feet may be granted up to a maximum 50 percent density bonus;
 Existing lots or newly consolidated merged lots of 24,375 square feet to 31,874 square feet may be granted up to a maximum 75 percent density bonus;
 Existing lots or newly consolidated merged lots of 31,875 square feet to 35,624 square feet may be granted up to a maximum 100 percent density bonus;
 Existing lots or newly consolidated merged lots of 35,625 square feet to 39,374 square feet may be granted up to a maximum 150 percent density bonus;
 Existing lots or newly consolidated merged lots of 39,375 square feet to 43,124 square feet may be granted up to a maximum 200 percent density bonus; and  Existing lots or newly consolidated merged lots of 43,125 square feet or more may be granted up to a maximum 250 percent density bonus.

The 6th Cycle Housing Element update includes new Program 1.C to amend the City’s local density incentive to simplify the calculations and broaden the number of parcels that are eligible for a 250 percent bonus (approximately 81 du/ac) (see Chapter 2). By doing so, lot consolidation will be encouraged and the number of potential multi-family units increased. These changes are anticipated to further encourage lot consolidation and development of multi-family and missing middle housing units.

Short Term Rental Ordinance
The City adopted their short-term rental (STR) ordinance in 2022. The regulations can be found in Title 5 Section 5.20.040 of the Municipal Code regarding short-term rental regulations. STR’s are permitted as an accessory use for fewer than 30 days with a City-issued permit. Affordable units are not eligible for an STR permit in order to preserve the existing affordable housing stock. The City found it is necessary to regulate STRs in the interest of public health, safety, and other impacts on land use and housing. The City’s intent with the ordinance was to address concerns on land use impacts in residential areas and to limit the impact on the City’s shortage of affordable housing. 388
Appendix B – Housing Constraints B-26 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Impacts of STRs related to housing issues include the use of residential units for commercial use and the reduction of housing supply which drives up rents. The City will continue to monitor the impacts of STRs on long-term housing options.

Staff Resources
The City had very limited staff during the 5th cycle planning period and staff was primarily focused on obtaining the entitlements for the South of Tioga area. The City has since engaged a consulting firm to increase responsiveness and identified a number of programs to improve the planning permitting process as part of 6th Cycle Housing Element.

The City also commits staff time and budget resources to facilitate development of housing units and supportive facilities for homeless and those at-risk in the following ways:
 Staff participates actively with potential developers and advocates for below-market rate units;  The City provides information on Fair Housing Resources at the City Hall counter and the City’s website; and
 The City annually donates to service providers and includes donations as a line item in the annual budget. In 1989, the City adopted a Service Agreement to become a participant in the Community Human Services Project (CHS) joint powers agreement. CHS is a nonprofit agency dedicated to providing mental health, substance abuse and homeless services. Other service agencies the City donates to includes the Salvation Army Day Center that provides caseworker assistance and services to homeless and at-risk clients including laundry, shower, food distribution and vouchers for rent, utilities and transportation. The Salvation Army also operates a Transitional Housing Center in the adjacent City of Seaside.

Building Codes and Code Enforcement
Sand City adopted the 2022 California Building Code, which is based on the California Building Code. The City regularly updates its building code in accordance with Title 24 changes. The City’s building code has been adopted in order to prevent unsafe or hazardous building conditions. There have not been any local amendments to the building code. As such, the City’s code is a reasonable and normal enforcement of state building regulations and does not act as a constraint to the construction or rehabilitation of housing.

The City provides reasonable accommodation for persons with disabilities in the enforcement of building codes and the issuance of building permits for all new structures. Universal Design allows for new construction and home modifications that enhance the full life cycle use of housing in order to accommodate a wide range of physical abilities or disabilities of a home’s occupants. This is particularly relevant to seniors and allows residents to age in place and remain in a particular unit for a longer period of time. Sand City’s demographics show the City’s aging trend and suggests a demand for housing geared toward middle aged to senior groups. In an effort to broaden the 389
Appendix B – Housing Constraints B-27 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 number of units that can accommodate a wider variety of residents’ abilities, the 6th Cycle Housing Element includes Program 1.L to adopt Universal Design elements that address limited lifting (e.g., roll-in showers and grab bars), limited mobility (e.g., push/pull lever faucets, wide swing hinges) and limited vision (e.g., additional stairwell and task lighting) (see Chapter 2).

It is the duty of the building inspector, Chief Building Official, and the City Manager to enforce the City’s building code and zoning codes. The City’s code enforcement model promotes education first, with sufficient noticing prior to issuing fines and scheduling hearings, if necessary. The City is so small that every property is well-known to staff and City Council members. City staff and the City Council are very active in connecting with households in need of assistance, and proactive in monitoring the city’s residential housing stock.

Fees and Exactions
The development of new housing units imposes certain costs upon local government, such as the cost of providing planning services and inspections. In addition, there are long-term costs such as the continued maintenance of a community’s infrastructure and public facilities. In order to pay for such services, local governments charge fees for proposed development applications. These fees and exactions can impact the cost and feasibility of developing the housing as well as its affordability.

They can also involve issues of private property rights. High planning and site development fees can impact property owners’ ability to make improvements or repairs, especially for lower-income households. Development projects are subject to fees and exactions from a growing number of public entities, ranging from special districts to regional agencies. In order to create a viable development proposal, it is important to estimate the cumulative amount of fees to which the housing development will be subject.

The City last updated its Planning fee schedule in 2015 and the Building fee schedule in 1997, in comparison to other communities on the Monterey Peninsula, Sand City’s governmental fees are low primarily because the City has not updated the City fee schedule in many years. The lack of fee increases and regular fee schedule updates may be viewed as an economic incentive to encourage new and revitalization development in the City; however the City is reassessing fees and considering a fee study in order to recover reasonable costs for providing City planning entitlement and building permit services. The fees have been artificially low for many years and do not recover reasonable City costs which can cause an impact to City permitting services. Discounted fees or waived fees for affordable projects will be included to incentivize affordable units. Program 3.H is included in the 6th Cycle Housing Element to ensure fees for affordable projects remain low or are waived. Table B-4, City of Sand City Planning Fees, and Table B-5 City of Sand City Building Fees provides a current list of applicable planning and building department fees. 390
Appendix B – Housing Constraints B-28 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table B-4 City of Sand City Planning Fees
Planning Fees Cost
Administrative Land Use Approvals and Zoning Permits
Zoning Compliance Statement No Fee
Home Occupation Permit No Fee
Temporary Use Permit $100
Parking Permit (1 per vehicle) $200 / permit / year
Tree Removal Permit No Fee
Discretionary Land Use Permit
Conditional Use Permit $500
Coastal Development Permit $500
Site Plan Review $500
Variance $500
Planned Unit Development $500
Tentative Subdivision Map and Vesting Tentative Map $1,000 + Reimbursement Ag.

Final Map / Parcel Map $500 + Reimbursement Ag.

Combining Multiple Permits1 Sum of all applicable fees
above + Reimbursement Ag.

Appeal for Permit (within 10 days of approval) $500
Amendment of Permit $500
Design Permit
Architectural Review $100
Master Sign Program $100
Individual Sign Permit $50
Environmental Review
Environmental Impact Report (EIR) $2,000 + Reimbursement Ag.

Negative Declaration2 $1,000 + Reimbursement Ag.

Categorical Exemption (per CEQA) No Fee
Legislative Amendments
General Plan Amendment $2,000 + Reimbursement Ag.

Zoning Amendment or Change $1,000 + Reimbursement Ag.
391
Appendix B – Housing Constraints B-29 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Planning Fees Cost
Specific Plan Approval or Amendment $2,000 + Reimbursement Ag.

Local Coastal Plan Amendment $2,000 + Reimbursement Ag.

SOURCE: City of Sand City Planning Department Fee Schedule NOTE: 1. For Projects that require more than one permit.

2. Environmental Initial Study required.

3. There are no fees or applications required for a preliminary development project review.

Building Permit Fees
Similar to planning fees, building permits fees for the City have not been increased for many years and do not recover City costs to provide this critical service. In 1991, the City Council established a schedule of fees for plumbing mechanical and electrical permits and this was followed by an update building permit fee structure based on the Table 1-A from the 1997 Uniform Building Code. These fees have not been updated since that time frame and are woefully outdated and the City is subsidizing building permit costs at an unsustainable rate. Table B-5 reports the City’s building fees.

Table B-5 City of Sand City Building Fees
Building Fees Cost
Over the Counter Type Permits
Plumbing (no plan review required) $30.00
Electrical (no plan review required) $30.00
Mechanical (no plan review required) $30.00
Combination Permit
Value $0-$2,000 $23.38-$86.56
Value $2,001-$25,000 $104.06-$489.06
Value $25,001-$50,000 $501.69-$804.69
Value $50,001-$100,000 $813.44-$1,242.19
Value $100,001-$500,000 $1,249.19-$4,042.19
Value $500,001 and up $4,042.19
Value $0-$2,000 $23.50-$69.25
Value $2,001-$25,000 $83.25-$391.25
Value $25,001-$50,000 $401.35-$643.75
Value $50,001-$100,000 $650.75-$993.75
392
Appendix B – Housing Constraints B-30 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Building Fees Cost
Value $100,001-$500,000 $999.35-$3,233.75
Value $500,001 and up $3,233.75
SOURCE: City of Sand City Building Department Fee Schedule The building fee structure is currently based on the valuation or cost of the project. This is a widely accepted and used system to establish both building permit fees as well as the cost to complete a plan review. Fees are generally collected at the time of application; however, in the case of very large developments, fees may be requested by the applicant to be partially deferred until the project receives a certificate of occupancy at the discretion of either City Manager or Council. In an effort to improve service and responsiveness, the City currently contracts with a consulting firm to provide building permitting services. The consulting firm provides consistent and responsive building permit services to the community and a high level of service which is critical to ensure property owners follow the building permit process and do not conduct building work and repairs without applying for building permits.

The City is currently looking at conducting a fee nexus study to recalibrate the fees to reflect current service levels and associated costs. Currently, City fees are do not form a constraint to development.

Regional Fees
The City is not a full-service municipality; several agencies and special districts levy fees on new development for the provision of basic urban services. These agencies and special districts including the following:
 Monterey Peninsula Water Management District (MPWMD);  Monterey Peninsula Unified School District (MPUSD);
 California American Water (Cal-Am);
 Monterey One Water (M1W); and
 Transportation Agency for Monterey County (TAMC).

Special district fees add to development costs in the City. Sand City is under the jurisdiction of the MPWMD and receives its water from Cal-Am. The water district has permit authority over the production and distribution of all water supplies within the Monterey Peninsula region, and allocates water supplies to cities and County areas within its jurisdiction. The current MPWMD permit fees are governed by the Fees and Charges Table (effective August 16, 2021) and start at $225 per residential dwelling unit plus $90 per hour for more than 2.5 hours. 393
Appendix B – Housing Constraints B-31 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 The MPUSD requires the payment of an impact fee of $4.79 per square foot for new residential development per the fees listed on the school district website. The school district does not offer any discounts or exemptions for affordable projects.

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

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

2. 1” Meter - $5,000 (small multi-family)11

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

4. 2” Meter - $16,000 (large volume requirement ex. hotel.) M1W impact fees are approximately $6,056 per residential unit. TAMC established a Regional Impact Fee (RDIF) program to address required mitigation for traffic impacts. Accessory Dwelling Units under 750 square feet are exempt from impact fees. Sand City is located with Zone 3:

Peninsula/South Coast and also subject to additional infill fee. Impact fees are calculated using an online spreadsheet and fees range from $4,484 for an above moderate single-family home, to $31,491 for a 10-unit apartment to $27,461 for a 10-unit condo or townhome, and $17,386 for a 10- unit multi-family development. Impact fee discounts are applied to affordable units and are dependent on the affordability level.

Fees charged for the provision of basic services by these outside agencies vary according to project types and size and increase development costs. The City does not control fees for outside agencies; but outside agency fees are considered an economic constraint add to the overall cost of development; however, the agencies provide necessary services for residential development (Table B-6).

Table B-6 Estimate of total development fees imposed
Single-Family* Multi-Family (10 units)**
Planning permit fee (incl. CEQA) $600 $1,800
Building Permit fee $2,999 $4,042
Subtotal $3,599 $5,842
MPWMD $225 $2,250
MPUSD $9,580 $52,690
11 Small multifamily properties, defined as those with five to 49 units (Terner Center, UC Berkeley, January 2024) 394
Appendix B – Housing Constraints B-32 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Single-Family* Multi-Family (10 units)**
Cal-Am $3,000 $5,000
M1W $6,056 $60,560
TAMC $4,036 $17,386
Regional Fees Subtotal $22,897 $137,886
Total Fees $26,496 $143,728
*assumed $350K valuation and 2,000 sq. ft.
**assumed $5,000,000 valuation and 11,000 sq. ft.

City fees generally comprise one (1) percent of the cost of development of a single-family home and less than 0.005 percent of the cost of development of a multi-family development. Fees from other districts comprise practically 100 percent of the development of a multi-family development. The City will work with outside agencies to develop a process to defer fees until the Certificate of Occupancy is ready to be issued as part of the fee schedule update process in Program 3.H.

Transparency of Development Standards and Fees
Per Government Code section 65940.1(a)(1), jurisdictions must post all zoning and development standards and associated fees on the jurisdiction’s website. The City of Sand City complies with State law, providing zoning and development standards on the City’s website by reference to the City’s Municipal Code. Associated fee schedules are also readily available on the City’s website through the Planning Department.

Americans with Disabilities Act Compliance
Compliance with provisions of the federal Americans with Disabilities Act (ADA) is assessed and enforced by Planning and Building departments in Sand City. ADA access is enforced through building permit entitlement and is required for all commercial development, new construction of multi-family apartments with three or more units in any one building, and new construction of congregate housing or shelters.

The Planning and Building Departments monitor California Title 24 accessibility requirements with all plan checks and permits. Such reviews include but are not limited to parking spaces, walkways, building access and restrooms. When an application for a building permit is received, it is automatically routed through the plan check process. The Planning Department logs the permit request and assigns a tracking number. Then the application is forwarded to the City of Monterey Building Department, with whom the City of Sand City contracts for building services. The City of 395
Appendix B – Housing Constraints B-33 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Monterey Building Department applies both ADA and Title 24 regulations to all building permit requests. The Building Department coordinates with the Planning Department to expedite the review for ministerial permits such as door widening and ramps. The City of Monterey Building Department and Fire Department conducts building code and fire code, respectively, compliance and enforcement for the City of Sand City, by contractual agreement. Additionally, Sand City staff provide additional enforcement by means of windshield surveys.

For existing privately owned structures, the City has not sponsored any efforts to remove constraints for persons with disabilities; however, for City owned properties, Capital Improvement projects include accessibility modifications. For example, improvements and construction to Calabrese Park will commence summer 2023 and includes ADA access. For all new construction, the City ensures ADA and Title 24 compliance. The Building Department and City Engineer monitors ADA compliance for all work within the public right-of-way. The Building Department and City Engineer routinely review sidewalks, curbs and all development improvement plans for ADA compliance on public property.

On- and Off-Site Improvement Standards
Onsite/offsite improvement standards establish infrastructure or site requirements to support new residential development such as streets, sidewalks, water and sewer, drainage, curbs and gutters, street signs, park dedications, utility easements, and landscaping. While these improvements are necessary to ensure that new housing meets the local jurisdiction’s development goals, the cost of these requirements can represent a significant share of the cost of producing new housing.

Such requirements can reasonably be considered regulatory barriers to affordable housing if the jurisdiction-determined requirements are greater (and hence, more costly) than those necessary to achieve health and safety requirements in the community.

New on-site infrastructure is not considered to be a potential constraint to housing development within the West End districts (formerly known as the Old Town) because those housing opportunities will be in urban infill sites where the infrastructure is largely already in place. The City, however, had worked with an urban design and parking design team to develop streetscape improvement plans. These plans will include street trees, street furniture and undergrounding of existing, unsightly utility poles.

In those areas such as the East Dunes where new residential development is planned, the City will require on-site infrastructure improvements, including the construction of interior roads, street lighting, water, sewer, drainage and underground utility systems. The City has not adopted any requirements above and beyond those authorized by the California Subdivision Map Act. For the East Dunes area, the City has actually reduced the street width to 32 feet. This narrowing of streets was a design consideration to provide more front yard landscaping to individual homeowners and for traffic-calming purposes. The 6th Cycle Housing Element includes program 2.A to continue to 396
Appendix B – Housing Constraints B-34 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 implement its Five-Year Capital Improvement Program and continue budgeting revenues into the capital improvement budget to improve streets, sidewalks, storm drainage, wastewater and water lines within the West End area.

Parking Requirements
Excessive parking standards that are not reflective of actual parking demand can pose a significant constraint to housing development by increasing development costs and reducing the potential land available for project amenities or additional units. The City’s Zoning Code contains parking requirements according to zoning designation and are summarized in Table B-7, Parking Requirements.

Table B-7 Parking Requirements
Zoning Designation Parking Requirement
R-1 2 per unit
R-2 2 per unit
R-3 1.5 per unit (2 or fewer bedrooms)
2 per unit (3+ bedrooms)
CZ R-2 2 per unit
CZ R-3 1.5 per unit (2 or fewer bedrooms)
2 per unit (3+ bedrooms)
CZ VS R-2 1.5 per unit
CZ MU-P1 See Note
CZ-EDA 1.5 per unit
PUD Dependent on type of use
(e.g., commercial, industrial, etc.)
MU-P Dependent on type of use
(e.g., commercial, industrial, etc.)
PF1 See Note
SOURCE: City of Sand City, Municipal Code Tile 18 Zoning

1. On-site parking and loading facilities required for all uses, as provided in the City’s Municipal Code Chapter 18.64 Parking and Loading areas.

West End Parking Plan
The City of Sand City recognizes a need for a comprehensive parking plan that will complement the City’s West End Vibrancy Plan and help better achieve the land use goals of the 2002 General Plan.

This Sand City West End Parking Plan (parking plan) has been created to address common issues related to parking patterns and availability in the West End and is based on a review of the City’s parking ordinances, parking management and strategies in other jurisdictions, the conclusions of past studies, and more recent observed parking conditions within the West End. Land uses are 397
Appendix B – Housing Constraints B-35 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 expected to continue shifting from industrial, warehouse, and commercial service uses to live-work studios, residences, entertainment, and restaurants. This parking plan provides an updated analysis and action plan for implementing expanded or new parking strategies, facilities, and funding consistent with the General Plan and the Vibrancy Plan. Past studies concluded that it would be physically impossible for allowable uses to provide off-street parking due to limitations of existing improvements and parking standards that do not appear to be tied to actual conditions within the West End. Past studies also concluded that although the City’s future parking demand could be accommodated by a mix of private and public parking supply, much of future supply would be located on public streets.

This plan identifies potential parking opportunity public and private locations, reviews potential parking layouts and financing, management programs and strategies to create more efficient parking, suggests revisions to existing parking regulations to address common issues, and presents an action plan for implementation.

Given the lack of space available within the City to construct private off-street parking that meets current code requirements, a parking maximum is considered in the plan. The parking maximum would create an upper limit on site-specific or area-wide parking supply to increase opportunities available for shared parking and/or parking credits, and promote the use of alternative transportation. This approach allows flexibility in addition to, or instead of, minimum parking requirements. Parking maximums are typically most successful in areas with a well-developed transit system that allows for reduced dependency on cars. Parking requirement reductions for affordable housing units are included as well. The Plan is nearing completion and is anticipated to be adopted by Council in 2023.

AB 2097 – Major Transit Stops and Reduced Parking Requirements AB 2097 was passed by the California legislature and signed into law on September 22, 2022 by Governor Gavin Newsom. The new law becomes a part of CA. GOV. Code Section 65863.2. This bill would prohibit a public agency from imposing any minimum automobile parking requirement on any residential, commercial, or other development project, as defined, that is located within 1 /2 mile of public transit, as defined. The bill would create an exception from the above-described provision if the housing development project (1) dedicates a minimum of 20 percent of the total number of housing units to very low, low-, or moderate-income households, students, the elderly, or persons with disabilities, (2) contains fewer than 20 housing units, or (3) is subject to parking reductions based on any other applicable law.

Monterey-Salinas Transit District (MST) provides public transportation throughout Monterey County, including Sand City. MST uses the Sand City Station located on Playa Avenue, which serves six bus routes—lines 17, 18, 20, 94, Jazz A, and Jazz B. With the implementation of MST’s Better 398
Appendix B – Housing Constraints B-36 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Bus Network in 2022, Jazz A and Jazz B have a combined frequency of 15-minute service from 7:26 a.m. to 6:48 p.m.at Sand City Station. This meets the definition for a “major transit stop” under AB 2097 criterion (c):

The intersection of two or more major bus routes with a frequency of service interval of 15 minutes or less during the morning and afternoon peak commute periods.

Once the SURF! Busway and Bus Rapid Transit is completed, there will also be public transit service along Del Monte Boulevard every 15 minutes throughout the day.

Eliminating parking minimums for residential projects within a half mile of the City’s major transit stops removes a significant constraint to development. Parking adds significantly to the construction costs of buildings and uses critical space that could alternatively be used for new housing. The proximity of major transit stops that have 15-minute service enables residents to travel conveniently within the City and the greater region without an automobile and will not hinder a residents’ mobility.

It is important to note the City has the right under the new law to require standard parking provision, as long as the City addresses an application within 30 days and makes appropriate findings (as described Section 65863.2).

The 6th Cycle Housing Element update includes new Program 1.J to reduce the City’s parking requirements (see Chapter 2).

Summary of Governmental Constraints
Land use regulation by the California Coastal Commission, in general, and the presence of environmentally sensitive habitat area, specifically, presents a significant government constraint on the production of housing in Sand City. Sand City’s location in the Coastal Zone is, no doubt, a significant part of the reason why the City has struggled to meets its regional housing needs allocation in past cycles (e.g., seven units or 13 percent of RHNA in the 5th Cycle planning period).

For this 6th Cycle update, many sites identified for low- and moderate-income housing would be adversely affected by Coastal Commission regulations.

In addition to the obvious constraints associated with the City’s location in the Coastal Zone, the City has identified a number of ways in which it can otherwise reduce the burden of governmental constraints on the production of housing. Table B-8 lists new programs detailed in Chapter 2 to address constraints related to the following areas of government regulation:
399
Appendix B – Housing Constraints B-37 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table B-8 Summary of Governmental Constraints
Governmental Constraint Programmatic Action
Location in the Coastal Zone
Certain areas of Sand City are located in the California Coastal Zone and are therefore subject to a host of regulations that are not present in communities outside the Coastal Zone.

Program 1.H: Habitat Management Plan
Program 1.C: West End Housing Diversity Overlay
Zoning Ordinance and Development Review Process
Multiple zoning districts and overlay districts currently complicate permitting and can be an impediment to developers. Updating the Zoning Ordinance and consolidating districts can ease the regulatory process.

Program 1.P: Clarify permit processing
Program 1.G: Objective Design Standards
Program 1.I: California Housing Opportunity and More Efficiency (HOME) Act
Out-of-date General Plan
The City’s General Plan was adopted in 2002 and had a 15-year planning horizon. The residential densities allowed by the General Plan do not match the residential densities allowed by the Zoning Ordinance.

Program 1.E: Update the General Plan
City Fees
While Sand City’s building fees are lower than surrounding communities, fees can still pose as an impediment to development.

Program 3.H: Reduced Fees for Affordable Projects
Development Standards
Parking requirements
Minimum lot coverage
Program 1.J: Reduce Minimum Parking Standards
Program 1.C: West End Housing Diversity Overlay
Program 1.S: Changes to Zoning Code
Zoning to Permit a Variety of Housing Types
Emergency Shelters
Low-barrier Navigation Centers
Employee and Farmworker Housing
Transitional and Supportive Housing
Mobile and Manufactured Housing
Residential Care Facilities
Program 3.D: Emergency Shelters
Program 3.E: Low Barrier Navigation Center
Program 3.J: Employee and Farmworker Housing
Program 1.S: Changes to Zoning Code
Program 3.K: Residential Care Facilities for Residents with Disabilities
Reasonable Accommodation Program 3.L: Update Reasonable Accommodation Procedures in the Municipal Code
SB 9 Program 1.I: California Housing Opportunity and More Efficiency (HOME) Act
B.3 Non-Governmental Constraints
In addition to governmental constraints, non-governmental factors may constrain the production of new housing. These could include economic and market related conditions such as land and construction costs, as well as environmental hazards such as wildfires, earthquakes, and flooding.

In Sand City, the availability of land and land costs will remain a constraint to affordable housing, and programs to use publicly-owned lands—such as City-owned land—can make a difference. The cost of construction and construction materials is also very high and therefore a constraint, and to the degree that the City can subsidize affordable housing projects with available funds dedicated to housing, this too can make a difference. The 6th Cycle Housing Element includes programs to refer developers to Federal and State loan programs as well as referring individual property owners to Habitat for Humanity Monterey Bay’s ADU loan program which also supplies labor to help defray construction costs.
400
Appendix B – Housing Constraints B-38 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Land and Construction Costs
As is true for most coastal communities, new residential development in Sand City can be expensive.

According to Zillow, since May, 2020, eleven vacant lots have been sold within the City ranging in price from $12,500 to $530,000 with an average cost of $151,278. The average lot size sold over the same period of time was approximately 4,200 square-feet, accounting for an average cost per of $36 per square-foot. However, properties values may vary significantly based on their location and ability to facilitate development.

Construction costs have risen significantly over the past five years due to labor shortages, the COVID-19 pandemic and related supply chain issues and the cost of materials. High construction costs are a barrier to constructing not only affordable units, but all types of residential units at this time.

Availability of Financing
The cost of financing has a substantial effect on the affordability and availability of housing. Interest rates have a significant role in determining the feasibility of development projects, especially residential real estate. Interest rates have been at historic lows in recent years, but depending on Federal Reserve Bank actions, may rise in the coming years. Developers typically pass the cost of financing development projects on to buyers or tenants, thus affecting the affordability and availability of housing types for residents. The availability of financing for residents to purchase, refinance and improve homes is an important analysis of the private market to determine the feasibility of homeownership access.

Since 2020, interest rates for homebuyers steadily increased from a low of 2.75 percent in 2020 to a peak of 7.08 percent in November of 2022 for a fixed rate, 30-year mortgage.12 The current economic climate is uncertain and still affected by the COVID-19 pandemic, increasing inflation, and the supply chain disruptions; however, there are a number of ways to finance residential development in the City, some of which are outlined below.

Banks, Community Development Financial Institutions Fund (CDFIs), and state housing agencies
Banks, Community Development Financial Institutions Fund (CDFIs), and state housing agencies all play a role in providing affordable housing.
 Banks are regulated by the Community Reinvestment Act (CRA), which requires them to provide lending and services to all segments of their communities, including low-and moderateincome borrowers. Banks can meet their CRA requirements through a variety of activities, including making loans to affordable housing developers, providing grants to community development organizations, and investing in CDFIs.
12 Source: 30 Year Mortgage Rate (ycharts.com)
401
Appendix B – Housing Constraints B-39 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024  CDFIs are specialized financial institutions that provide loans, investments, and other financial services to low-income communities and individuals. CDFIs are often more flexible than traditional banks, and they can provide loans to borrowers who may not be able to qualify for financing from other sources.
 State housing agencies (SHAs) are government agencies that provide financial assistance for affordable housing development. SHAs can provide loans, grants, and tax credits to developers, and they can also help to promote affordable housing through public education and outreach programs.

Together, banks, CDFIs, and SHAs play a vital role in providing affordable housing. These organizations work to ensure that everyone has access to safe, decent, and affordable housing, regardless of their income. The California Housing Finance Agency (CalHFA) is a SHA that provides financing for affordable housing development in California. These organizations are essential partners in the fight to ensure that everyone has access to safe, decent, and affordable housing.

Housing Credits
Federal
The 4% and 9% LIHTC (Low-Income Housing Tax Credit) are federal tax credits that can be used to finance the construction or rehabilitation of affordable housing. The 4% credit is for the acquisition of existing buildings for rehabilitation and new construction financed by tax-exempt bonds. The 9% credit is generally for new construction and substantial rehabilitation with no federal subsidies. The amount of the credit is equal to 4% or 9% of the project's qualified basis, and it can be used to offset federal income taxes. The credit is claimed over a 10-year period.

The 9% LIHTC is more valuable than the 4% LIHTC, so it is typically used for larger projects. The 9% LIHTC is also more competitive, as there is a limited amount of 9% credits available each year.

Both the 4% and 9% LIHTCs are important tools for financing affordable housing. They have helped to create millions of affordable housing units across the country.

State
State housing credit is a state-level program that provides tax credits to developers who build or rehabilitate affordable housing. The credits are similar to the federal Low Income Housing Tax Credit (LIHTC), but they are administered by state housing finance agencies (HFAs).

State HFAs allocate tax credits to developers through a competitive process. The credits are then sold to investors, who use them to offset their state income tax liability. The proceeds from the sale of the credits are used to finance the construction or rehabilitation of affordable housing. 402
Appendix B – Housing Constraints B-40 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 State housing credit benefits both developers and low-income households. For developers, the credits provide a valuable source of financing that can help them make affordable housing projects financially feasible. For low-income households, the credits help to keep rents affordable.

Federal Home Loan Bank System
The Federal Home Loan Banks (FHLBs) are 11 regional banks that provide funding to financial institutions in all 50 states and U.S. territories. They were created by Congress in 1932 to help revitalize the housing market during the Great Depression.

FHLBs are cooperatively owned by their member institutions, which include community banks, credit unions, commercial banks, savings institutions, and insurance companies. These member institutions can borrow money from FHLBs at a discounted rate, which helps them to offer lower interest rates on mortgages and other loans to their customers.

In addition to providing funding, FHLBs also offer a variety of other services to their members, such as:
 Technical assistance on housing and community development  Affordable housing programs
 Letters of credit
 Mortgage purchase programs
FHLBs play an important role in the U.S. housing market. They help to ensure that there is a steady supply of affordable mortgage credit available to borrowers, and they also support community development efforts.

Federal Home Loan Bank and Affordable Housing Program
The Federal Home Loan Bank (FHLB) Affordable Housing Program (AHP) is a grant program that provides funding for the creation and preservation of affordable housing. The AHP is funded by a 10 percent contribution from each FHLB's earnings.

The AHP can be used to finance the following types of affordable housing projects:
 Owner-occupied housing: The AHP can be used to finance the purchase, construction, or rehabilitation of owner-occupied housing for low-or moderate-income households.  Rental housing: The AHP can be used to finance the purchase, construction, or rehabilitation of rental housing where at least 20 percent of the units are affordable for and occupied by very low-income households.
 Mixed-income housing: The AHP can be used to finance the purchase, construction, or rehabilitation of mixed-income housing where a portion of the units are affordable for low-or moderate-income households.
403
Appendix B – Housing Constraints B-41 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 The AHP is a competitive program, and applications are typically reviewed on a quarterly basis. To be eligible for an AHP grant, a project must meet the following criteria:
 The project must be located in a low-or moderate-income census tract;  The project must be affordable to low-or moderate-income households; and  The project must be developed by a qualified project sponsor.

The AHP is a valuable resource for developers of affordable housing. The program provides muchneeded funding for the creation and preservation of affordable housing, and it helps to ensure that low-and moderate-income households have access to safe and affordable housing.

Housing First
Supportive housing is a type of housing that provides permanent, affordable housing with on-site supportive services to help people who are homeless or at risk of homelessness. The supportive services can vary depending on the needs of the individual or family, but they may include case management, mental health services, substance abuse treatment, job training, and education.

There are a variety of supportive housing subsidy programs available in the United States. Some of the most common programs include:
 Housing Choice Vouchers (HCVs): HCVs are a federal program that provides rental assistance to low-income households. HCVs can be used to rent apartments on the private market, and they can also be used to pay for supportive housing;  Veterans Affairs Supportive Housing (VASH): VASH is a federal program that provides rental assistance and case management services to homeless veterans; and  Rapid Re-housing: Rapid Re-housing is a short-term program that provides rental assistance and case management services to help people who are homeless quickly find and maintain housing.

The Housing First approach to homelessness is a philosophy that emphasizes providing permanent housing to people who are homeless, regardless of their other needs. The Housing First approach has been shown to be effective in reducing homelessness and improving the lives of people who are homeless.

The supportive housing subsidy system in the United States is a complex system, but it is an important part of the Housing First approach to homelessness. The subsidy programs help to make supportive housing affordable for people who are homeless, and they help to ensure that people who are homeless have access to the supportive services they need to succeed. 404
Appendix B – Housing Constraints B-42 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Housing financing, including private financing and government assistance programs, is generally available in the community. Financing from the following sources is available for affordable housing units for extremely-low, very-low and low-income households in Sand City:
 CDBG Funds: The City will continue to apply to the California HCD for special planning grants to pursue specific projects. The City will submit applications for those funds based on the state’s application time frame process;
 HOME Funds: The State of California also awards HOME funds to localities on a competitive basis for developments that include rental housing, homeownership opportunities, special needs housing and tenant-based rental assistance. The City will submit applications for those funds based on the state’s application time frame process;
 Low Income Tax Credits: Federal and state tax credits are available to investors on a competitive basis for the development of lower-income housing units;  Other State-funded programs: The City will make use of available State-funding allocated for affordable housing; and
 Permanent Local Housing Allocation (PLHA) grant: The City applied for and was awarded a Permanent Local Housing Allocation grant. PLHA provides funding to local governments in California for housing-related projects and programs that assist in addressing the unmet housing needs of their local communities.

This 6th Cycle Housing Element includes Program 5.C, to continue to apply for State and Federal Housing Program Funding (see Chapter 2).

Requests to Develop at Densities Below Those Permitted
New State Housing Element law now requires the non-governmental constraints analysis to evaluate developer requests to build at densities below the density identified in the Housing Element sites inventory. To date, the City has not received requests to develop at densities below those permitted.

In order to incentivize development which better implements densities planned in the Housing Element sites inventory, the 6th Cycle Housing Element sets forth Program 1.D to ensure that there are adequate sites available throughout the planning period to accommodate the City's regional housing needs, “or " “RHNA” (see Chapter 2). Additionally, Program 1.D requires a minimum density of 20 dwelling units per acre for selected sites.

Length of Time between Application Approval and Building Permit Issuance
New Housing Element law now also requires an examination of the length of time between receiving approval for a housing development and submittal of an application for building permits.

The time between application approval and building permit issuance is influenced by a number of 405
Appendix B – Housing Constraints B-43 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 factors, none of which are directly impacted by the City. Factors that may impact the timing of building permit issuance include: required technical or engineering studies; completion of construction drawings and detailed site and landscape design; securing construction and permanent financing; and retention of a building contractor and subcontractors.

The majority of residential permits in the City are for single-family homes, with building permit issuance generally taking eight (8) to 14 months after planning approvals. In Sand City, most approved projects are constructed in a reasonable time period with the exception of the South of Tioga (SOT) area. This planning area is taking longer due to current financing conditions and retention of a housing developer for multi-family developments. The owner is soliciting proposals from housing developers in an effort to move the project to fruition and the City is willing to consider altering the Development Agreement via an amendment by ordinance to include incentives to increase the viability of financing the residential portions of the project.

Infrastructure Capacity
A significant factor that can add to the cost of residential development is the availability and adequacy of infrastructure. Sand City, unlike many other jurisdictions in the Monterey Bay Area, has available water to service new residential development.

Priority for Water and Sewer
Per Chapter 727, Statues of 2004 (SB 1087), upon completion of an amended or adopted Housing Element, a local government is responsible for immediately distributing a copy of the Housing Element to area water and sewer providers. In addition, water and sewer providers must grant priority for service allocations to proposed developments that include housing units affordable to lower-income households. Chapter 727 was enacted to improve the effectiveness of the law in facilitating housing development for lower-income families and workers.

The City consulted with water and sewer providers during the development and update of the Housing Element as stated below. Involvement during the development and update process facilitates effective coordination between local planning and water and sewer service functions to ensure adequate water and sewer capacity is available to accommodate housing needs, especially housing for lower-income households. Updates or amendments to the Housing Element will be sent to water and sewer providers within a month after adoption.

Water Availability and Adequacy
The Monterey Peninsula has historically experienced water shortages that limit residential development. Sand City is a member of the Monterey Peninsula Water Management District (MPWMD). The MPWMD is responsible for issuing water service permits for developments located within the District’s boundaries. Domestic water service is provided by the California American Water Company (Cal-Am), which operates and maintains the water system within the district. 406
Appendix B – Housing Constraints B-44 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Monterey County’s water supplies are derived primarily from the Carmel and Salinas River systems and the Seaside groundwater basin. Cal-Am’s use of the Carmel River system was greatly restricted by State Water Resources Control Board Order 95 1 issued in 1995 and due to be implemented in the next year. Due to the lack of adequate water supplies on the Monterey Peninsula, the availability of water for new development is limited and will become more limited in the future. Several regional desalination plant proposals are in process, but years away from approval or construction.

In order to develop a more permanent source of water, the City successfully pursued the establishment of a desalination facility using state grants to help fund the development costs. The project’s total costs were $12 million for both design and construction. The City aggressively pursued grant opportunities, and received $2.9 million in Proposition 50 grant funds from the California Department of Water Resources. The remainder of the project was paid for through Redevelopment Agency Bonds and capital improvement program funding. Additionally, the innovative energy recovery system that was incorporated, developed by Energy Recovery Incorporated (ERI), enabled energy consumption savings of 50 percent, and earned the City $104,974 in rebated from Pacific Gas and Electric (PG&E), the region’s utility provider. The facility began production in April of 2010 and supplies the City with 300 acre-feet of water (98 million gallons approximately) annually.

On June 1, 2023 the MPWMD released a Technical Memo that summarized the water supply requirements for housing. The estimated future residential water need for Sand City forecasted 32 acre-feet based on the City’s 2023-2031 Regional Housing Need Allocation of 260 units.13 According to the July 2023 MPWMD monthly water entitlement and allocation reports14, the City has approximately 197.886 acre-feet in water entitlements from their personal desalination plant and an additional 23.163 acre feet in water allocations from the MPWMD. The City has access to both water provisions and can adequately meet the RHNA water supply demand of 32 acre-feet using either the 197.886 acre-feet in water entitlements and/or the 23.163 in water allocations. The City intends to use the 197.886 acre-feet in water entitlements from its desalination plant to satisfy the RHNA since this provides more local control.

The permit fees charged by the MPWMD vary according to project types and size and increase development costs. The City does not control fees for outside agencies; but outside agency fees are a constraint and add to the overall cost of development. The 6th Cycle Housing Element includes Program 2.B to prioritize water for residential housing projects and will include working with outside agencies to defer fees (see Chapter 2).

Sewer
The Seaside County Sanitation District (SCSD) and Monterey One Water (M1W formerly the Monterey Regional Water Pollution Control Agency (MRWPCA)) provide wastewater collection and 13 MPWMD June 1, 2023 Technical memo
14 MPWMD May 15, 2023 Board meeting packet
407
Appendix B – Housing Constraints B-45 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 treatment to Sand City. The M1W operates the Regional Sewage Treatment Plant in Marina. The SCSD maintains the collection lines and pumping stations that deliver sewage from Sand City and Seaside to M1W’s Seaside pumping station, located west of State Route 1 on Bay Street. The Regional Treatment Plant has a capacity of 30 MGD (million gallons per day), and processes approximately 20 MGD. There is adequate capacity to meeting the City’s RHNA.15 There are some deficiencies in sewer service supply and distribution lines, primarily in the coastal area west of State Route 1 and undeveloped portions of the East Dunes area. The sewer deficiency in the East Dunes area is not one of downstream line capacity or plant capacity. In this currently undeveloped area of Sand City, there is a need to extend sewer lines to serve new development.

Recently, the South of Tioga residential development project funded sewer extensions, which is located adjacent to the East Dunes area. Additionally, the East Dunes area does include a few singlefamily homes, which also have access to sewer. New developments in this area could extend existing sewer lines from adjacent properties.

When a developer approaches the City for the appropriate land use entitlements, sewer extension will be a required condition to subdivision approval—a standard process that any developer would need to address. Thus, there will not be a negative impact on the development of residential units associated within the East Dunes area. Furthermore, none of the identified housing opportunity sites are located in the East Dunes area. Therefore, this does not pose a constraint to the development of sites identified to satisfy the RHNA. Aside from the deficiencies in the coastal areas, there is adequate sewer capacity in the City to accommodate development equaling or exceeding the RHNA.

Again, fees charged by theses outside agencies vary according to project types and size and increase development costs. The City does not control fees for outside agencies; but outside agency fees are a constraint and add to the overall cost of development.

Program 2.B is included and provides for ongoing coordination and outreach with sewer providers and continued operation of the City’s desalination facility. To ensure sewer infrastructure is not a potential barrier in the next housing cycle, the City includes Program 1.H, which establishes City actions to work with SCSD and M1W to facilitate sewer service to the East Dunes area (see Chapter 2).

Transportation
State Route 1 crosses the center of Sand City and is a dominant fixture in the City’s landscape. For several years, there have been proposals to widen State Route 1 from four to six lanes and to improve interchange access. However, there were no specific actions or funding sources authorized at the time that this Housing Element was prepared.
15 Conversation with M1W staff June 15, 2023.
408
Appendix B – Housing Constraints B-46 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 The City’s Circulation Element and Public Facilities Element of the 2002 General Plan identifies the need for circulation and access improvements in several areas of the City, including the East Dunes, West End and Coastal Zone areas. However, none of these recommendations are significant in terms of restricting new residential development. All local streets within Sand City operate within acceptable levels of service. Traffic mitigation fees are required for all new development in Sand City based on a regional impact fee required by the Transportation Agency for Monterey County (TAMC).

Environmental Constraints
The City of Sand City has some environmental constraints that directly impact the development of housing. A significant portion of the City lies within the Coastal Zone, a portion of which is subject to appeals to the Coastal Commission. Environmental constraints along the coast include erosion, sensitive habitat areas and endangered species.

The Moffatt & Nichol study of coastal erosion, which calculates the future position of the shoreline, has been endorsed by the Coastal Commission and has been applied by the City to develop setback lines for development along the coastline.

Biological
Biological studies conducted within Sand City have identified five species that qualify for special status under state or federal law or among a broad consensus of the scientific community. Those species include the Monterey Bay gilia, the Monterey spineflower, the coastal wallflower, the Monterey ceanothus and the sandmat manzanita. Wildlife studies have identified four special-status species in the City, including Smith’s blue butterfly, the western snowy plover, the coast horned lizard and the California burrowing owl.

Habitat preservation areas have been established in conjunction with, and as a permitting requirement for, previous development projects. In 2000, the U.S. Fish and Wildlife Service (USFWS) designated all of the Sand City coastal area west of State Route 1 as critical habitat for the western snowy plover. Therefore, future development proposals will require federal Endangered Species Act Section 9 consultation and may require the approval of a habitat conservation plan by the USFWS. The City is coordinating closely with USFWS and other agencies, including the California Department of Fish and Wildlife (CDFW) regarding these sensitive and protected habitat areas. The development process is significantly slower and elongated when working with outside agencies in these areas.

The presence of environmentally sensitive habitat area, specifically, presents a significant government constraint on the production of housing in Sand City. A Habitat Management Plan is a guide for that facilitates appropriate development in sensitive areas by protecting and enhancing existing habitat in addition to creating new habitats in appropriate areas and directing development 409
Appendix B – Housing Constraints B-47 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 to places that do not impact sensitive areas. An adopted Habitat Management Plan provides more certainty to residential developers by completing the necessary biological studies and surveys and identifying areas for development. The City will initiate a Habitat Management Plan per 6th Cycle Housing Element Program 1.H to provide programmatic incidental take permits for properties identified in the Sites Inventory including the East Dunes. By doing so, the regulatory environment for constructing housing will be somewhat eased for this geographic area.

Seismic Hazards
The principal active faults in the region, the San Andreas fault and the San Gregorio fault, have been responsible for several moderate to large historic earthquakes and are associated with well-defined zones of active seismicity. These faults traverse Monterey County, and many areas therein are susceptible to seismic hazards including strong ground shaking, liquefaction, and earthquake induced landslides. In addition, erosion hazards are present in the agricultural areas of the Salinas and Pajaro Valleys. Coastal erosion of dunes, cliffs, and bluffs is a serious problem in Monterey County. Coastal erosion of cliffs is concentrated along the Big Sur Coast due to very steep terrain; but there are locally severe erosion problems in the south Monterey Bay area, mainly due to highly erosive windblown sand and particularly in the incorporated and unincorporated areas around Marina, Sand City, Monterey, and Fort Ord. Potential geologic and soil hazards can be increased by inappropriate development, seismic activity and heavy rains.

Flooding
Potential water-related hazards in Sand City include flooding, tsunami, and sea-level rise. Flood hazards include coastal inundation, flash flooding down watercourses and channels throughout the community, and sheet flooding across low lying areas adjacent to these watercourses. A tsunami is a series of ocean waves triggered by the displacement of a large volume of water after a submarine disturbance, such as an underwater earthquake or landslide. While there is no record of large or moderate tsunamis in the Sand City area, the potential for tsunami damage exists, as it does in most coastal California communities. Global climate changes affecting sea level have been observed over time and if observed patterns continue, a sea-level rise should be expected. Sea-level rise is a longrange concern and while predictions vary, a significant rise in sea-level rise could adversely affect land use, transportation and water quality in low-lying coastal areas. With the exception of essential support facilities for coastal-dependent industry, the City of Sand City's Local Coastal Program (LCP) (in accordance with the California Coastal Act) restricts all structural development on the ocean-side of the dunes, within a tsunami run-up zone, or within the area subject to wave erosion.

Fire
Public Resources Code 4201-4204 directs the California Department of Forestry and Fire Protection (CAL FIRE) to map fire hazard within State Responsibility Areas (SRA) based on fuel loading, slope, fire weather, and other relevant factors present, including areas where winds have been identified by the department as a major cause of wildfire spread. These zones, referred to as Fire 410
Appendix B – Housing Constraints B-48 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Hazard Severity Zones (FHSZ), classify a wildland zone as Moderate, High, or Very High fire hazard based on the average hazard across the area included in the zone. According to the California Department of Forestry, Sand City is not within the state responsibility area fire hazard severity zone, and is at low risk of fire hazards.

Toxic Cleanup
In the City of Sand City, there are many areas that are/were once designated for heavy industrial uses that will require site cleanup to enable residential development. Site cleanup can be an expensive and burdensome process for local jurisdictions and developers to take on. As a proactive measure to facilitate the development of residential uses in areas that once accommodated heavy industrial uses, the City has included Program 3.M, Brownfield Remediation Loans and Grant Assistance (see Chapter 2). This program commits the City to working with property owners and developers to seek outside funding opportunities for site remediation and offer technical assistance with funding applications. None of the sites identified in the Sites Inventory are located on a parcel that has a legacy of contaminants.

Scenic Resources
Scenic resources, most notably views of Monterey Bay seen while traveling along State Route 1 through the City, are also considered and protected as a resource of public importance in conformity with the California Coastal Act through the goals and policies of the Conservation and Open Space Element of the City’s General Plan. Protection of the scenic resources could constrain the location and height of future residential development in the specified area.

Noise
Highway 1 continues to be a source of noise along the northern edge of the City. With a growing residential population in a mixed-use environment, there is an increasing awareness of noise from nonresidential uses. The Sand City Municipal Code prohibits excessive and annoying noises in Chapter 8.04. Construction hours are not currently regulated by the Municipal Code. Some noises occur on a continual or a continual but intermittent basis, such as highway noise, or is emitted by mechanical equipment. The General Plan Public Safety and Noise Element contains policies and actions to address noise.

Summary of Non-Governmental Constraints
In summary, while Sand City is subject to the environmental constraints described above, the Housing Element Update includes specific policies and programs in Chapter 2 to reduce or eliminate non-governmental constraints to the extent feasible and practical. 411
Appendix B – Housing Constraints B-49 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 The primary non-governmental constraints and the 6th Cycle Housing Element programs to address them are shown in Table B-9 below:

Table B-9 Non-Governmental Constraints and Programmatic Actions Non-Governmental Constraint Programmatic Action
Land and Construction Costs
As is the case in most Coastal cities, the cost of land and construction costs can be expensive and result in constraints to housing production.

Program 1.N Small Sites Lot Consolidation
Program 1.B: Amend the City’s Zoning Ordinance to align with new Density bonus State laws and include 10
percent density bonus
Program 1.C: Increase Housing Diversity – MU-P Zoning District Amendments
Limited Land
Sand City’s size limits areas where new housing can be constructed.

Program 1.C: Increase Housing Diversity – MU-P Zoning District Amendments
Environmental Constraints
The presence of special status species and environmentally sensitive habitat areas limit areas available for development within the City.

Program 1.H: Habitat Management Plan
Availability of Financing
Developers typically pass the cost of financing development projects on to buyers or tenants, thus affecting the affordability and availability of housing types for residents.

Program 5.C: State and Federal Housing Programs and Funding 412
Appendix B – Housing Constraints B-50 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 This side intentionally left blank.
413
Vacant and Available Sites C

APPENDIX
414
415
Table of Contents
APPENDIX C VACANT AND AVAILABLE SITES ............................................................ C-1 C.1 Introduction ............................................................................................................................ C-1 C.2 Regional Housing Needs Allocation ................................................................................... C-1 C.3 Overview of the Site Inventory............................................................................................ C-2 C.4 Capacity Analysis of Site Inventory .................................................................................. C-20 C.5 Additional Opportunities for Residential Development and Affordable Housing ... C-38 C.6 AFFH Analysis of Sites ...................................................................................................... C-39 C.7 Summary and Conclusions ................................................................................................ C-70 Figures
Figure C-1 Sand City Sites Inventory .........................................................................................C-6 Figure C-2 Mural Development ..................................................................................................C-9 Figure C-3 Site Plan for South of Tioga, with Residential Parcels R1 and R2 ...................C-14 Figure C-4 East Dunes neighborhood paper lots and recent “Bungalow” development C-16 Figure C-5 Typical Missing Middle and Live/Work Developments in Sand City ............C-17 Figure C-6 Consolidation Example Sites, Catalina Lofts (above) and The Sandbox ........C-18 Figure C-7 West End Housing Diversity Overlay Boundary ...............................................C-19 Figure C-8 Salvation Army Site #1...........................................................................................C-20 Figure C-9 Art Park Artist Live Work Concept First Floor.................................................C-24 Figure C-10 Art Park Artist Live Work Concept Second Floor ............................................C-25 Figure C-11 1793 Catalina Street, Site #4..................................................................................C-30 Figure C-12 1712 Catalina Street, Site #5..................................................................................C-32 Figure C-13 Sites Inventory Analysis by TCAC/HCD Opportunity Areas, 2023 ..............C-46 Figure C-14 Sites Inventory Analysis by TCAC/HCD Education Domain, 2021 .............C-48 Figure C-15 Sites Inventory Analysis by TCAC/HCD Economic Domain, 2023 .............C-50 416
Figure C-16 Sites Inventory Analysis by CalEnviroScreen 4.0, 2021....................................C-52 Figure C-17 Sites Inventory Analysis by Predominant Population, 2021 .............................C-55 Figure C-18 Sites Inventory Analysis by Median Income, 2021 ............................................C-58 Figure C-19 Sites Inventory Analysis by Poverty Status, 2021...............................................C-59 Figure C-20 Sites Inventory Analysis by Population with a Disability, 2021 .......................C-63 Figure C-21 Sites Inventory Analysis by Overcrowding, 2021...............................................C-65 Figure C-22 Sites Inventory Analysis by Cost Burdened Renter Households, 2021 ..........C-67 Tables
Table C-1 Sand City’s Regional Housing Needs Allocation – 2023–2031..........................C-2 Table C-2 Sand City’s Adjusted RHNA 2023-2031 ...............................................................C-3 Table C-3 Capacity to Accommodate 2023-2031 RHNA.....................................................C-4 Table C-4 Housing Site Inventory Capacity Overview........................................................C-12 Table C-5 Recently Developed Housing Projects................................................................. C-13 Table C-6 Pipeline Projects, 2022-2023..................................................................................C-13 Table C-7 Site #1 Description................................................................................................. C-22 Table C-8 Site #1 Capacity Assumptions ..............................................................................C-22 Table C-9 Site #2 Description................................................................................................. C-27 Table C-10 Site #2 Capacity Assumptions ..............................................................................C-27 Table C-11 Site #3 Description................................................................................................. C-29 Table C-12 Site #3 Capacity Assumptions ..............................................................................C-29 Table C-13 Site #4 Description................................................................................................. C-31 Table C-14 Site #4 Capacity Assumptions ..............................................................................C-32 Table C-15 Site #5 Description................................................................................................. C-34 Table C-16 Site #5 Capacity Assumptions ..............................................................................C-34 Table C-17 Sites #6 and 7 Description ....................................................................................C-36 Table C-18 Sites #6 and 7 Capacity Assumptions ..................................................................C-36 417
Table C-19 Site #8 Description................................................................................................. C-37 Table C-20 Site #8 Capacity Assumptions ..............................................................................C-38 Table C-21 Projects/Sites Selected to Accommodate Lower Income RHNA Consideration Factors ............................................................................................C-40 Table C-22 AFFH Indicators Table ..........................................................................................C-41 Table C-23 TCAC/HCD Opportunity Area Domains, 2023 ...............................................C-44 Table C-24 Site Inventory Unit Count by TCAC/HCD Opportunity Area, 2023 ............C-45 Table C-25 Site Inventory Unit Count by Diversity Index and Percent Non-Hispanic White Population, 2023..........................................................................................C-54 Table C-26 Site Inventory Unit Count by Median Household Income and Poverty Status, 2021 ..............................................................................................................C-57 Table C-27 Sites Inventory Unit Count by Female-Headed Households, 2021.................C-60 Table C-28 Sites Inventory Unit Count by Population with a Disability, 2021..................C-61 Table C-29 Sites Inventory Unit Count by Overcrowding, 2021 .........................................C-64 Table C-30 Site Inventory Unit Count by Cost Burdened Renter Households, 2021 .......C-66 Table C-31 Programmatic Actions Related to Projected Housing Types ...........................C-69 418
419
Appendix C – Vacant and Available Sites C-1 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Appendix C
Vacant and Available Sites
C.1 Introduction
The 6th Cycle Regional Housing Needs Allocation Plan 2023-20311 has identified the region’s housing need as 33,274 units. The total number of housing units assigned is separated into four income categories that cover housing types for all income levels, from very low-income households to market rate housing. This calculation, known as the Regional Housing Needs Allocation (RHNA), is based on population projections produced by the California Department of Finance as well as adjustments that incorporate the region’s existing housing need. The adjustments result from recent legislation requiring HCD to apply additional adjustment factors to the baseline growth projection from California Department of Finance, in order for the regions to get closer to healthy housing markets. To this end, adjustments focus on the region’s vacancy rate, level of overcrowding and the share of cost burdened households, and seek to bring the region more in line with comparable ones. These new laws governing the methodology for how HCD calculates the RHNA resulted in a significantly higher number of housing units for which the Monterey Bay Area must plan compared to previous cycles.

C.2 Regional Housing Needs Allocation
In April 2022, AMBAG adopted its Draft Regional Housing Needs Allocation Plan. For Sand City, the RHNA required to be planned for this cycle is 260 units, which when achieved will represent a 70 percent increase in the City’s 2022 population.

RHNA Summary
Sand City’s share of the regional housing need for the seven-year period from 2023 to 2031 is 260 units, which is a 472 percent increase over the 55 units required by the 2014 to 2022 RHNA and a 141 percent addition to the City’s total existing housing units. The housing need is divided into the five income categories of housing affordability. Table C-1, Sand City’s Regional Housing Needs Allocation – 2023–2031 shows Sand City’s RHNA for the planning period 2023 through 2031 in comparison to the RHNA distributions for Monterey County and the Monterey Bay Area region.
1 Source: Association of Monterey Bay Area Governments, April 2022 420
Appendix C – Vacant and Available Sites C-2 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table C-1 Sand City’s Regional Housing Needs Allocation – 2023–2031 Income Group Sand City
Units Percent
Monterey
County
Units
Percent
Monterey
Bay Area
Units
Percent
Very Low Income (<50% of AMI) 59 22.7% 4,412 21.7% 7,868 23.6% Low Income (50%-80% of AMI) 39 15.0% 2,883 14.2% 5,146 15.5% Moderate Income
(80%-120% of AMI) 49 18.8% 4,028 19.8% 6,167 18.5%
Above Mod. Income
(>120% of AMI) 113 43.5% 8,972 44.2% 14,093 42.4%
Total 260 100.0% 20,295 100.0% 33,274 100.0%
SOURCE: AMBAG 2022
Progress to Date
The RHNA planning period for the 2023-2031 Housing Element (6th Cycle) is June 30, 2023 through December 15, 2031. The statutory adoption date for the 6th Cycle Housing Element is January 1, 2024—a full six months after the beginning of the planning period. To account for this discrepancy, the City of Sand City must account for the number of housing units issued building permits prior to adoption of the 6th Cycle Housing Element and apply these to the 2023-2031 RHNA. Accordingly, the units permitted in this period count towards the 2023-2031 planning period RHNA and are subtracted from the 6th Cycle RHNA.

Table C-2, Sand City’s Adjusted RHNA 2023-2031, shows the City of Sand City’s adjusted RHNA, which accounts for progress made prior to the adoption of the updated Housing Element document. Accounting for entitled, approved, and pending projects, the City is able to count 16 lower-income, 26 moderate-income, and 322 above-moderate income units towards its RHNA for the 6th cycle. Full details for each pipeline project are provided in section C.3 Overview of the Site Inventory.

C.3 Overview of the Site Inventory
The purpose of the sites inventory is to identify and analyze specific sites that are available and suitable for residential development from 2023-2031 in order to accommodate Sand City’s adjusted RNHA of 260 housing units (see Table C-1, above). The site inventory provides a total capacity for 505 units and opportunities for the development of a variety of housing types to meet the needs of a range of household types and income levels. 421
Appendix C – Vacant and Available Sites C-3 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table C-2 Sand City’s Adjusted RHNA 2023-2031
Very LowIncome
Units
LowIncome
Units
ModerateIncome
Units
Above
ModerateIncome
Units
Total
Units
2023–2031 RHNA 59 39 49 113 260
Units permitted between June 30, 2023 and January 1, 2024 Catalina Lofts 0 0 0 8 8
South of Tioga Parcel R-1 0 0 0 125 125
South of Tioga Parcel R-2 9 7 26 189 231
Remaining RHNA 50 32 23 -209 -
SOURCE: City of Sand City, 2024
The City developed programs and policies to plan for where new housing should go and how many units could be on potential sites. Per state law and Housing Policy (SB 166) the City is required to maintain “no net loss” of the housing capacity represented by this list of parcels and the sites they comprise. To facilitate this, the Sites Inventory has been designed with excess capacity. This allows some degree of flexibility in decision making for individual development projects as they come forward for approval by City Council.

Table C-3, Capacity to Accommodate 2023-2031 RHNA, summarizes Sand City’s sites inventory for the 2023-2031 planning period and capacity to accommodate RHNA goals. The housing Site Inventory assessor parcel numbers (APNs) and addresses are included in Table C-4.

Pursuant to Government Code section 65583.2(b)(7), Figure C-1 provides a map illustrating the Site Inventory. All tables related to the Site Inventory include RHNA income category information, in compliance with Government Code section 65583.2(c).

Following is a synopsis of information related to the Sites Inventory:
 Vacant and underutilized site-specific details are provided in Table C-4;  Pipeline project details are provided for three (3) projects in Table C-5; and  Comprehensive descriptions and capacity analyses are provided for each individual site. 422
Appendix C – Vacant and Available Sites C-4 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table C-3 Capacity to Accommodate 2023-2031 RHNA
Housing Resource
Very
LowIncome
Capacity
LowIncome
Capacity
ModerateIncome
Capacity
Above
ModerateIncome
Capacity
Total
Capacity
2023-2031 RHNA 59 39 49 113 260
Pipeline Projects (Catalina Lofts and
South of Tioga) 9 7 26 322 364
Salvation Army (Site #1) 5 0 0 0 5
City of Sand City Art Park (Site #2) 9 7 0 0 16
The Independent, Phase 2 (Site #3) 46 31 30 0 107
Underutilized Sites (Sites #4-5) 0 0 0 3 3
Vacant Sites (Sites #6-8) 0 0 0 7 7
ADUs (Site #8) 2* 1 0 0 2
Total 71 46 56 332 505
Surplus at 194% RHNA 120% 118% 114% 294% 245
SOURCE: City of Sand City; EMC Planning Group Inc.

NOTE: *One ADU to accommodate very-low income is anticipated with the development of Site #5 and one ADU to accommodate very-low income is anticipated with the development of Site #8.

Sites to Accommodate Lower-Income RHNA
Sites Used in Previous Housing Element Planning Periods Government Code Section 65583.2(c)
Each site includes information indicating if it was used in a prior housing element planning period, and it if is currently vacant. Four sites included in the Sites Inventory were used in the 5th cycle. However, none are of adequate size to accommodate lower-income residential units. Site #2, Art Park, is the only site that was used in the 5th cycle and anticipated to accommodate lowerincome residential units. This is based on City ownership and interest in developing affordable residential units; an ongoing proforma study determining the feasibility to construct affordable units on the site; and community support for the development. Sites #6-8 are less than 0.5 acres and do not have property owner or developer interest in developing affordable residential units.

Sites #6 and #7 are anticipated to undergo a lot consolidation to maximize development potential, and are included in a proforma study, which has not determined the development of affordable units to be feasible on the consolidated site. Further details for each site are provided in section C.4 Capacity Analysis of Site Inventory of this appendix.

Sites #2-8 are located within the West End Housing Diversity Overlay Zone (see Program 1.C).

This Overlay will be adopted prior to December 2024 and will enable all sites to have a density of 423
Appendix C – Vacant and Available Sites C-5 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 up to 81 dwelling units per acre. By-right development review will be the process by which any housing project with less than four (4) units is proposed, and for any housing project that includes five (5) or more units where at least 15 percent of the units are affordable to lower income households. This exceeds requirements set forth in Government Code 65583.2(c), for sites previously identified in the 5th Cycle Housing Element that are proposed to accommodate the low- and very low-income RHNA. Table C-4 provides details for all housing sites identified to satisfy the RHNA.

Appropriate Zoning
Government Code Section 65583.2(c)(3)
For suburban jurisdictions such as Sand City, sites allowing at least 20 units per acre are appropriate to accommodate lower-income housing. The density range for all parcels that anticipate housing units to meet the lower-income RHNA include the default density. The General Plan designation that applies to Sites #2-8 identified in the Site Inventory, which meets this prerequisite, is MU-D, (and/or zoning at MU-P) at a maximum density of 81 dwelling units per acre. Site #1 has a General Plan designation of East Dunes Specific Plan, which allows residential densities between 12-20 dwelling units per acre.

Site Size
Government Code Section 65583.2(c)(2)(A), (B), and (C)
Several factors outside of the City’s control impact the availability and developability of land in the City, including the significant acreage that is within the coastal zone and/or protected habitat areas, and the City’s built-out nature. As a result, approximately 88 percent of sites included in the housing Site Inventory are less than 0.5 acres, of which Sites #1 and #2 are anticipated to accommodate a portion of the lower-income RHNA. Sites #1 and #2 include mission-based property owner interest in developing transitional and supportive housing and City-owned sites.

The sites included in the site inventory have been chosen by the City upon supportive evidence to be the most developable for new housing in the eight-year planning cycle. Several of the sites have property owner interest and the anticipated developments are supported by the City.

Additionally, recent developments in the city include seven residential developments, of which four were less than 0.5 acres; zoned MU-P; and utilized lot consolidation and/or adaptive reuse tools for existing structures. As a result, the size of sites included in the site inventory is not considered a constraint to development.

Moreover, the City has a successful track record for developing housing projects within the constraints of small lot sizes and environmental protections. The use of lot consolidation has contributed to this success, which resulted in recent residential developments including, The Sandbox, Catalina Lofts, and South of Tioga. See Considerations for Capacity Analysis below for more details on these projects.
424
1 2
3 4 5
6 7 8
9 10
California Ave.

Contra Costa St.

Dias Ave.

Redwood Ave.

Ortiz Ave.

Catalina St.

Orange Ave.

Shasta St.

Elder Ave.

Del Monte Blvd.

State Route 1
11 Hickory St.

Holly St.

Sites Inventory
Sand City 6th Cycle Housing Element
0 450 feet
Figure C-1
Source: Monterey County GIS 2023,
Google Earth 2023 City Limit
Coastal Zone
Underutilized
Pipeline Project
Consolidated
Vacant Sites
Sensitive Habitat City Owned
425
Appendix C – Vacant and Available Sites C-7 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 No Net Loss
Government Code Section 65863
Through the eight-year planning period of the 6th Cycle Housing Element, pursuant to the No Net Loss Law, City staff is required to identify an alternative site(s) if a site is developed at a lesser ratio of lower-income units than anticipated with this Sites Inventory. Program 1.F monitors the City’s actions to evaluate the City’s progress in meeting housing objectives and remaining in compliance with the No Net Loss Law (see Chapter 2).

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

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

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

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

The City has identified two (2) underutilized parcels (both at Site #2, Art Park) with intentions to make them available through the Surplus Land Act process over the next five years for the potential development of 16 units (eight (8) units affordable to very low- and eight (8) units affordable to low-income households). The City plans to acquire a privately owned parcel that is adjacent to the two city-owned parcels in order to maximize development potential. The site is planned to remain in City ownership and is anticipated to be made available for development through a long-term land lease for 55 years. The site will be made available for affordable housing consistent with the requirements of the Surplus Land Act. 426
Appendix C – Vacant and Available Sites C-8 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Specific planned actions by the City include the development of a project description, publication of an RFP within 12-18 months, selection of a development partner, two years to enter into an Exclusive Negotiation Agreement, two years for land use entitlements and development agreements, 6-12 months for building permit issuance, and 1-2 years for construction depending on the complexity of the project. Council approval is required for each step in this process. The City has included Program 3.1 to establish and monitor the City’s anticipated timeline and actions for entering into the SLA process (see Chapter 2).

Vacant and Underutilized Sites
Nonvacant Site Analysis Methodology
Government Code Section 65583.2(g)(2)
Existing Uses
All sites selected for the Sites Inventory are either vacant, represent intentional second phase of development, or the use of which has been discontinued. In no case is the existing use of a site considered a constraint.

Nearly all of the anticipated housing capacity within this plan is predicated on not discontinuing existing uses. The single exception is the Salvation Army (Site #1), where two low-intensity industrial uses may be relocated to enable five (5) transitional housing units within an existing building. Discussions with the property owner indicate interest in redeveloping the site to provide transitional housing.

Should displacement of low or very low-income households occur, the City is prepared to comply with the requirements of Government Code section 65915, subdivision (c)(3). Program

2.D in Chapter 2 will be in effect to require replacement housing units subject to the requirements of the Government Code.

Development Trends
Sand City is an arts-centric evolving light industrial mixed-use community that has a legacy for supporting the arts community. This is evident with their mural program, illustrated in Figure C-2, where many commercial and light industrial companies have welcomed artistic displays across their otherwise blank walls. Small and medium scaled mixed use is commonplace within the fabric of the city, across decades of development. Residential adaptive reuse of a commercial building is the single pipeline project for this year in the MU-P Zone, following full development and occupancy of Catalina Lofts (see the Lot Consolidated sub-section within this Appendix for details).

The City has not received any proposals for 100 percent non-residential projects in the MU-P Zone. There is considerable developer interest in residential projects, and the City is actively engaging with non-profit affordable housing developers to build multi-family housing. 427
Appendix C – Vacant and Available Sites C-9 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Developers participating in Sand City Housing Element update outreach events have likened the city’s moment in time to a smaller version of Emeryville, just prior to their boom days. The goal is to set the development stage for plentiful, artist-focused, and varied housing to be constructed within the 6th cycle.

Figure C-2 Mural Development
SOURCE: City of Sand City
Market Conditions
The market does not yet seem to support podium construction or integrated affordable housing for multifamily development, as evidenced in City discussions with developers focused on opportunities at the South of Tioga Parcels R1 and R2. The cost of podium construction is very high, and must be supported by market rents or the purchase of a unit. Integrated affordable housing, as much as that is the City’s desired goal, is very difficult to finance within the context of a single integrated building. Essentially, it requires two different types of financing structures be placed on a single parcel and building with is very difficult to make work in our current market environment.
428
Appendix C – Vacant and Available Sites C-10 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 The City is actively seeking solutions to support construction throughout the City. Following is a list of activities that the City is currently pursuing to increase housing construction opportunities in Sand City:
 City Council has agreed to consider increased density through reopening the Development Agreement at South of Tioga;
 Prohousing Community Designation application is in process;  The City is educating their staff on affordable housing financing tools;  Lot consolidation will continue to be encouraged and small lots have been given greater density allowance to enable increased construction of missing middle housing such as plexes;  City Council is considering Objective Design Standards development in tandem with this Housing Element update;
 The City has initiated an economic development campaign that will include financial analysis, renderings, and a committed webpage;
 The City is leveraging opportunities for City-owned properties, including possible use of an undeveloped right of way; and
 The City is committed to continue seeking opportunities to attract and assist housing developers to consider constructing homes in Sand City.

Dry Utilities and Water Capacity
Central Coast Community Energy (3CE) and Pacific Gas and Electric (PG&E) supply electricity in Sand City. All sites included in the Site Inventory have access to sufficient water, sewer, and dry utilities. Program 2.B has been included in this Housing Element to grant priority water and sewer services to proposed developments that include units affordable to lower-income households (see Chapter 2).

Considerations for Capacity Analysis
Type of Sites
Government Code Section 65583.2(c)
This housing plan and Site Inventory provides capacity for a variety of housing types; including multifamily rental housing, factory-built housing, mobile homes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. The Zoning Ordinance and General Plan for the sites allows the housing types listed above.
429
Appendix C – Vacant and Available Sites C-11 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Adjustment Factors for Realistic Capacity
Government Code Section 65583.2(c)(2)
Land use controls and site improvements requirements have been analyzed for constraints within Appendix B – Housing Constraints, and necessary changes to the review process are included as programs within Chapter 2 – Goals, Policies and Programs. The realistic development capacity for the site begins with assuming those process changes to be in place by or prior to December 2024.

Table C-4 provides details and capacity estimates for each of the parcels identified in the Sites Inventory. These capacity estimates are considered conservative, as there is the potential for lot consolidation beyond what is assumed. Such consolidation would allow the application of the local density incentive program that the City of Sand instituted to encourage lot consolidation. In addition, State Density Bonus might also apply, which could shift affordable unit counts in a positive direction. Finally, the density assumptions applied to the sites are well below the maximum allowed per the City’s zoning regulations/development standards.

Typical densities of existing or approved residential developments at a similar affordability level in Sand City has been considered to discover a yield percentage of the maximum density used for each pipeline project. Tables C-5 and C-6 report details for completed projects from the 5th cycle and recent 6th cycle pipeline projects. These projects were taken into consideration when determining realistic capacity and developments types likely to occur during the 6th cycle. More recent projects, including the South of Tioga development, utilize significantly higher densities (81 du/ac). This is the result of a culmination of efforts by the City to enable the development of affordable residential units, including working with developers to understand what densities are most feasible to develop affordable housing and implementing changes on the ground.

Pipeline Projects
Pipeline projects include entitled, permitted, or constructed projects. Table C-6 exhibits three (3) current housing projects that have earned approval for entitlements and/or permits and will begin construction during the 6th cycle planning period including, South of Tioga Parcel R1, South of Tioga Parcel R2, and Catalina Lofts.

Catalina Lofts
The Catalina lofts, located at 400 Ortiz Avenue, was completed in 2023 and has been issued a Certificate of Occupancy. This site includes eight (8) above-market housing units, with artist/light-industrial/commercial studio space at the ground floor. The density for this 0.35-acre site was 23 dwelling units per acre and the developer maximized it for a total of eight (8) above moderate units.
430
Appendix C – Vacant and Available Sites C-12 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table C-4 Housing Site Inventory Capacity Overview
Map
# APN Address
GENER
AL
PLAN

ZONING ACRES MAX

DENSITY

REALISTIC

CAPACITY
(% of Max
Density)
VL L M AM Total
Salvation Army
1 011-186-020-000 801-803 California Avenue EDSP M 0.3 20 5 5 Subtotal 0.3 83% 5 5
City of Sand City Art Park and adjacent privately owned properties 2 011-196-014-000 502 Ortiz Avenue MU-D MU-P 0.040 81 3 3 6 011-196-020-000 No address MU-D MU-P 0.175 81 3 3 6
011-196-015-000 No address MU-D MU-P 0.130 81 3 1 4
Subtotal 0.345 57% 9 7 16
The Independent, Phase 2
011-232-027-000 524 Elder Avenue MU-D MU-P 0.087 81 2 2 4 3 011-232-022-000 525 Elder Avenue MU-D MU-P 0.087 81 2 2 4 011-232-021-000 526 Elder Avenue MU-D MU-P 0.087 81 2 2 4 011-236-027-000 No address MU-D CZ-MU-P 2.727 81 38 23 30 91 011-236-029-000 No address MU-D CZ-MU-P 0.216 81 2 2 4
Subtotal 3.204 41% 46 31 30 0 107
Underutilized Sites
4 011-243-004-000 1793 Catalina Street MU-D MU-P 0.138 81 18% 2 2 5 011-237-001-000 1712 Catalina Street MU-D MU-P 0.088 81 14%* 1 1 Vacant Sites
6 011-238-012-000 No address MU-D MU-P 0.086 81 50% 3 3 7 011-238-011-000 No Address MU-D MU-P 0.086 81 50% 3 3 8 011-238-021-000 445 Orange Avenue MU-D MU-P 0.045 81 67%* 1 1 Subtotal 60 38 30 10 145
ADUS 2* 1 0 0 3
Pipeline Projects 9 7 26 322 364
Total 71 46 56 332 505
RHNA 59 39 49 113 260
Net Surplus 12 7 7 219 245
Percent Surplus 120% 118% 114% 294% 194%
431
Appendix C – Vacant and Available Sites C-13 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 SOURCE: City of Sand City; EMC Planning Group Inc.

NOTE: *One ADU to accommodate very-low income is anticipated with the development of Site #8 to a total of two units and Site #5 for a total of two units.

Table C-5 Recently Developed Housing Projects
Recent Housing Development;
name, address
Year
Built
Site
Size Zoning Utilized Density
Number of
Units Development Type Affordability/
Tenure
Catalina Lofts; 400 Ortiz Avenue 2023 0.35
acres
MU-P 23 du/acre;
79% 8 Consolidated lots, demo existing building,
new infill construction
Above-market
rate/Ownership
Hickory SFD; 1745 Hickory Street 2023 0.06
acres
MU-P 17 du/acre;
74% 1 Adaptive reuse of existing retail/service onestory structure Above-market
rate/Ownership
The Bungalows 2019 0.22
acres
R-2 PUD 18 du/acre;
150% 4 Existing Single-Family lots developed (small
lots, avg. 2,395 sf)
Above-market
rate/Ownership
The Independent; 600 Ortiz 2014 2.64
acres
CZ-MU-P 23 du/acre;
100% 61 Adaptive re-use of prior Design Center, now
mixed-use
Market-rate/Rental
Affordable/Rental
SOURCE: City of Sand City; EMC Planning Group Inc.

Table C-6 Pipeline Projects, 2022-2023
Project Name Zoning Site
Size
Density
Utilized
VLI
Units
LI
Units
MI
Units
AM
Units
Total
Units
Entitlement
Status Affordability/Tenure
Catalina Lofts MU-P 0.35 23 du/ac 0 0 0 8 8 Approved* Above-market rate/Ownership
South of Tioga Parcel
R1 MU-P 1.74 81 du/ac 0 0 0 125 125 CUP pending** Market rate/Ownership South of Tioga Parcel
R2 MU-P 3.69 81 du/ac 9 7 26 189 231 CUP pending** Market rate/Ownership Affordable/Rental
Total 9 7 26 322 364
SOURCE: City of Sand City, 2022
NOTES: VLI = very low-income; LI = low-income; MI = moderate-income; AM = above moderate-income. *The Catalina Lofts development project was completed in 2023. **Timeline for development is anticipating CUP filed for early 2025 followed by a building permit later in the year of 2025. 432
Appendix C – Vacant and Available Sites C-14 EMC Planning Group Inc.

Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 South of Tioga
The overall South of Tioga project was proposed by DBO Development and includes a hotel and residential development on six (6) newly created parcels (H1, H1A, H2, H2A, R1 and R2) as shown below in Figure C-3. In October 2020, the City Council approved the South of Tioga development project. The project is located in the central portion of the City, generally referred to as the South of Tioga area. The overall South of Tioga project is approximately 10.64 acres bounded by Tioga Avenue to the northeast, California Avenue to the southeast, East Avenue to southwest, and the Merle Street right-of-way (not improved) to the northwest. The South of Tioga site was comprised mostly of blighted light industrial/warehouses, heavy commercial uses, undeveloped but degraded sand dunes, and several dilapidated residential structures. Demolition commenced in 2021; and the last structures were demolished by mid-2022 and site baseline infrastructure and park improvements are underway. Parcels R1 and R2 are discussed in more detail below.

Figure C-3 Site Plan for South of Tioga, with Residential Parcels R1 and R2 SOURCE: City of Sand City
The approved Vesting Tentative and Final Maps dissolved existing public rights-of-way within the area, and introduced a new internal roadway named “Morgan’s Way” after Mr. Kelly Morgan, a retired but long-term serving City Administrator. Morgan’s Way will provide access to all of the newly created parcels and thoroughfare connections between California Avenue and Tioga Avenue.

A segment of East Avenue within the project area was relocated to have a slightly more southerly alignment parallel to and abutting the Salvation Army building. 433
Appendix C – Vacant and Available Sites C-15 EMC Planning Group Inc.

Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 The Environmental Impact Report (EIR) for the overall South of Tioga project was prepared by EMC Planning Group under contract with the City. The City Council approved and certified the EIR as complete and adequate (including responses to comments) on June 5, 2018.

The South of Tioga Parcel R1 Development Agreement has been approved to require a minimum of 125 market-rate residential for sale units to be constructed. 2 A hotel is currently being constructed
within Parcel H1, with plans for an adjacent hotel parking area within parcel H2. An Environmental Impact Report was certified for this development. The residential site, R1 is currently for sale. One clause in the Development Agreement states that the number of affordable units required for the whole of the project may be entirely constructed within Parcel R2. For financing reasons, this may be the preferred option for the affordability split between these two parcels. Infrastructure improvements are nearly complete for this vacant site. Remaining steps for Parcel R1 include obtaining a Use Permit per the City’s design requirements, followed by a building permit.

The South of Tioga Parcel R2 Development Agreement has been approved to require a minimum of 231 residential units to be constructed, including 52 rental units affordable to lower income families as follows: one (1) extremely-low income; three (3) extremely-low-income senior-restricted (i.e., 55 years or older); five (5) very low income; seven (7) low income; and 26 moderate-income, of which 18 are identified as “workforce” units.3 Additionally, there will be 189 above moderate-income units.

An Environmental Impact Report was certified for this development. The residential site, Parcel R2 is currently for sale. Infrastructure improvements are nearly complete for this vacant site. Remaining steps for Parcel R2 include obtaining a Use Permit per the City’s design requirements, followed by a building permit.

South of Tioga Parcels R1 and R2 are anticipated to be constructed at close to 100 percent density capacity due to being constructed as new development with newly built infrastructure, close to a major transit stop, current market conditions, high ratio of affordable unit count, and with City Council supportive of high density.

The development timeline for both Parcels R1 and R2 include filing a CUP application in early 2025 followed by a building permit in mid- 2025. The CUP will go to the City Council for approval (single hearing), which is anticipated to take approximately four months, and building permit review is anticipated to take two to four months for such a large project. Once a building permit is issued, construction is anticipated to begin in late 2025. The City has worked closely with property owners and developers over the past few years to ensure this project is developed during the planning cycle, and intends to facilitate a smooth permitting process to deter any potential constraints to development.
2 See Table C-6 for a breakdown of anticipated residential units according to affordability category. 3 See Table C-6 for a breakdown of anticipated residential units according to affordability category. 434
Appendix C – Vacant and Available Sites C-16 EMC Planning Group Inc.

Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Infrastructure improvements for Parcels R-1 and R-2 of the South of Tioga project is underway and nearly complete. There are no constraints in the Development Agreements that preclude development on these two parcels. The City is preparing to accept the improvements with an estimated timeline of Summer 2024.

Vacant Sites
Vacant sites are sites that allow for residential development that are currently vacant. Many singlefamily zoned parcels were included with an initial public draft that have since been removed from the Site Inventory map. This is because the East Dunes neighborhood, paper lots shown with Figure C-1, requires a full Environmental Impact Report that likely will also involve a Habitat Management Plan. Program 1.H in Chapter 2 addresses this need. All potential housing units within this area are projected to become above-moderate housing units. Recent development (2019) within this neighborhood has resulted in four (4) new single-family homes, “the Bungalows,” which can be seen with Figure C-4. Because Sand City currently exceeds capacity for the above-moderate affordability criteria, and because the environmental constraints will introduce unknowns regarding timeline and mitigation requirements, the East Dunes neighborhood is not included with this capacity analysis.

Figure C-4 East Dunes neighborhood paper lots and recent “Bungalow” development SOURCE: City of Sand City
Underutilized Sites and Market Trends
Underutilized sites include sites that are zoned planned mixed-use (MU-P) and are currently developed but are capable of being developed at a higher residential density. Many mixed-use zoned parcels within the West End of Sand City were included with an initial public draft that have since been removed from the Site Inventory map for social equity reasons. There are many naturally occurring affordable single-family homes within the West End of Sand City. A few of these small 435
Appendix C – Vacant and Available Sites C-17 EMC Planning Group Inc.

Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 single-family sites are currently on the market and therefore included with the Sites Inventory. Small sites typically need additional density allowance to construct missing middle housing opportunities such as duplex, tri-plex, four-plex, etc., which is why density increase incentives will now apply throughout the Mixed-Use zone (see Overview of Strategies to Incentivize Housing Production section below). Many small-scale mixed-use (or Live/Work) structures exist within the West End, with examples illustrated in Figure C-5. This also relieves market pressure that might otherwise unintentionally incentivize displacement.

Figure C-5 Typical Missing Middle and Live/Work Developments in Sand City SOURCE: City of Sand City
Lot Consolidation
Consolidated sites are sites that are comprised of a number of small sites that are adjacent to each other and under the same ownership. Lot consolidation has been encouraged through a local density bonus program for this area, according to Municipal Code 18.13.060 (H).

An example of development that has been constructed among consolidated underutilized lots is the Catalina lofts, located at 400 Ortiz Avenue, which was completed in 2023. This project resulted in the construction of eight (8) above-market rate units designed to enable live/work space with studio 436
Appendix C – Vacant and Available Sites C-18 EMC Planning Group Inc.

Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 spaces at the ground level, as pictured in Figure C-6. The Sandbox is another, prior successful example of consolidated lot residential development that has been transformed into performance space at the street level, with residential units above, also pictured in Figure C-6. South of Tioga is a more recent example of a project that has successfully achieved lot consolidation in the City, and is included in the City’s pipeline projects.

Program 1.C in the Housing Element broadens opportunity for residential development by enabling all MU-P sites the full incentive of 250 percent more density (up to 81 du/acre), without discretionary approval (see Chapter 2).

Figure C-6 Consolidation Example Sites, Catalina Lofts (above) and The Sandbox

SOURCE: City of Sand City
Strategies to Incentivize Housing Production
The entire 0.5 square miles of land that is currently home to 325 people was considered with this capacity analysis. Much of the land within the Coastal Zone was not considered at this time due to the long-time delays involved with sites that are heavily environmentally constrained. The commercial east end of the city was only briefly considered as potential redevelopment opportunities within their expansive parking lots. The commercial areas, Sand Dollar Shopping Center, with Costco as an anchor and Edgewater Shopping Center, with Target as an anchor, are activated longterm lease uses that would be presumed to impede near-term residential construction. 437
Appendix C – Vacant and Available Sites C-19 EMC Planning Group Inc.

Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 West End Housing Diversity Overlay Zone
In order to generate more redevelopment activity of parcels that are served by public infrastructure and do not have constraints such as the presence of environmentally sensitive habitat areas, Program

1.C West End Housing Diversity Overlay, shown in Figure C-7, has been added with this 6th Cycle Housing Element. The program allows for an expansion of the MU-P zoning district density provisions that would permit any MU-P lot of any size a 250 percent density bonus, which equals 81 dwelling units per acre.

Additionally, a minimum density of 20 dwelling units per acre will be applied to all parcels within the Sites Inventory and allow housing development projects up to 85 feet by-right, by eliminating the Conditional Use permit requirements. By doing so, the potential number of units would be significantly increased by incentivizing redevelopment of underutilized properties into multi-family development.

Figure C-7 West End Housing Diversity Overlay Boundary
SOURCE: City of Sand City
Objective Design Standards
To further incentivize and catalyze development within the West End Housing Diversity Overlay area, Program 1.G is being employed immediately (see Chapter 2). The development of Objective Design Standards will encourage more, and denser residential development over time. Residential capacity will be expanded by the adoption of improved and specific design standards that will include a thorough analysis for maximum lot coverage, height, open space, parking, and materials.

The City anticipates draft objective design standards in February 2024, which will be reviewed by the Design Review Committee prior to going before the City Council for adoption. 438
Appendix C – Vacant and Available Sites C-20 EMC Planning Group Inc.

Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 C.4 Capacity Analysis of Site Inventory
This section provides information on the current list of potential sites under consideration for determining how the City will accommodate housing sites beyond the State’s required minimum of 260 housing units. Please note that the site numbers listed here are added only as an additional way to reference the site and easily label it on a map. The site number is not any indication of preference or priority. Figure C-1 (above) shows an overview of the housing sites inventory map developed for Sand City’s 6th Cycle Housing Element Update.

Underutilized Sites
Site 1: Salvation Army Good Samaritan Center
Site #1, The Salvation Army Good Samaritan Center, operates as a day center serving approximately 70-100 homeless and/or ELI families per day, providing services both on and off-site to those in need, including: daily hot meals, food boxes, showers, laundry, and mail services. On a monthly basis, service providers from Valley Health Associates provide medical and mental health services at the facility, as well as work to place families in transitional housing as it becomes available.

Transitional housing is not currently offered at the facility. This organization also operates an emergency shelter and transitional housing units in neighboring Seaside. However, in discussion with the City, the property manager of the facility has indicated a desire to renovate two commercial sites at the street front of the building to enable the development of five (5) transitional housing units.

Figure C-8 shows a street view of the The Salvation Army Good Samaritan Center. The facility is approximately 0.3 acres and currently zoned M. Program 3.B has been included in this Housing Element to commit the City to supporting the provision of services at the Salvation Army day center, including working with non-profit affordable housing developers to encourage the development of transitional and supportive housing (see Chapter 2).

Figure C-8 Salvation Army Site #1
(Street front view from California Avenue in Sand City) SOURCE: City of Sand City
439
Appendix C – Vacant and Available Sites C-21 EMC Planning Group Inc.

Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Developed at a maximum density of 20 dwelling units per acre, the gross acreage of the site would allow a maximum of six (6) units. When factoring for adjustments such as land use controls and site improvements, realistic capacity, and typical densities in Sand City, the net acreage of the site would allow a total of five (5) units (Tables C-7 and C-8).

While the site is less than 0.5 acres, redevelopment of the site is intended to improve and expand the range of services for which the facility currently provides. Therefore, the development is supported by existing leaseholders, the property manager, and the community served through the development.

A property owner interest letter is included in Attachment A. Examples of recent residential developments on small sites in the MU-P Zoning District include Catalina Lofts, 1745 Hickory Street (see Tables C-5 and C-6). While these sites did not produce affordable units, this site is owned by a mission-based organization that currently provides assistive services for lower-income residents, and intends to expand services through the development of transitional and supportive housing.

The MU-P Zoning District is adjacent to the M Zoning District. If the City has not received a building permit by mid-cycle, the City will pursue rezoning the site to MU-P. Program 3.B establishes this alternative action to ensure development of the site (see Chapter 2).

Based on the aforementioned property owner interest and support from the City, this site is anticipated to develop during the planning cycle to accommodate a total of five (5) very low-income units.

Steps for development on this site include filing for a CUP, which includes a single hearing of the City Council and is coupled with site plan review; filing a building permit application; building permit issuance; and construction.
440
Appendix C – Vacant and Available Sites C-22 EMC Planning Group Inc.

Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table C-7 Site #1 Description
Site Description Site Image & Capacity Calculation
APN 011-186-020-000
By-Right with 20% Affordable No, not used in previous cycles.

Size of Site 0.3 acres
Zoning M
General Plan EDSP
Allowable Density 12-20 du/ac
RHNA Affordability Very low-income: 5 units
Existing Use Vacant
Infrastructure Availability Yes, no constraints Realistic Capacity utilizing factors = (0.3 X 20) (.95) (.95) (.95) = 5 units
Environmental Constraints None known. 83% of max density Other Constraints Re-zoning to enable transitional housing uses at this location is necessary. Construction would not need to disrupt services provided.

SOURCE: City of Sand City
Table C-8 Site #1 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 95% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 95% Based on site size and property owner interest in the development of transitional housing units.

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

Infrastructure availability No adjustment Not applicable, no constraints Environmental Constraints No adjustment No known site constraint SOURCE: City of Sand City
441
Appendix C – Vacant and Available Sites C-23 EMC Planning Group Inc.

Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Site 2: Art Park
Site #2, City of Sand City Art Park, is a combination of both publicly and privately owned properties located at the heart of the city, just south of City Hall. The City owns two of the three parcels (APN 011-196-014-000 and 011-196-020-000) and A&R Plumbing owns one (APN 011-196- 015-000). In recent discussions with the City, A&R Plumbing has expressed interest in selling the parcel to the City. In February 2023, the City was awarded approximately $280,000 in Permanent Local Housing Allocation (PLHA) funds, which the City intends, assuming a willing seller, to use for purchase of the A&R Plumbing parcel.

Currently, the City hosts a monthly and annual arts-focused community gathering on the two Cityowned parcels. Residents have expressed a desire for live/work spaces that appeal to the City’s artist community. The City intends to conduct a public workshop with the City Council in the first quarter of 2024 to determine the community and Council’s visions for the Art Park property. The initial intention would be to develop the three parcels to include a live/work space on the ground floor and affordable residential units on the upper levels, while maintaining the Art Park and the uses and events the City desires there.

Figure C-9 and C-10 show the preliminary design sketches for the development. Preliminary design sketches of the potential development illustrate approximately three stories, which the current zoning allows (maximum 80 feet). The design concept caters to a live/work environment with open space on the ground level; separated studios and gallery space on the first floor; and residential units on the second and third floors. This design facilitates a mix of uses, while providing the City’s artist community an affordable place to live and work. Further discussions regarding the vision, development, and design of this site is needed and planned.

The site will remain zoned MU-P. The site is approximately 0.345 acres and consists of paved lots and two commercial structures. While the site is less than 0.5 acres, the City has a strong track record for developing small sites. As previously discussed, Catalina Lofts and The Sandbox are two successful examples of recently completed consolidated lot residential developments (refer back to Tables C-5 and C-6). While these sites did not produce affordable units, this is a City-owned site, which the City has control over and intends to work with nonprofit developers to construct affordable live/work housing.
442
Example Art Gallery
Example Studio Workspace
First Floor Parking
3689 Square Feet 3683 Square Feet
Contra Costa St.

California Ave.

Ortiz Ave.

Redwood Ave.

Live/Work Units
(16 Proposed Units
15024 Square Feet Per Floor)
First Floor Studio Space
(6875 Square Feet)
Open Space
(6112 Square Feet)
First Floor Art Gallery
(3063 Square Feet)
Sand City Art Park
Source: Monterey County GIS 2023,
onthegrid.com 2023
(originally from BastileIE.com),
tideearts.com 2024
Figure C-9
Art Park Long Term Artist Live/Work Housing Idea
Art Park Artist Live/Work Concept: First Floor
0 80 feet
443
Live/Work Units
(16 Proposed Units
15024 Square Feet Per Floor)
Open Space
(6112 Square Feet)
Contra Costa St.

California Ave.

Residential Space Ortiz Ave.

Above Workshop
Residential Space
Above Gallery
Redwood Ave.

Source: Monterey County GIS 2023,
architectmagazine.com 2023,
truthbox.com 2023
Art Park Long Term Artist Live/Work Housing Idea
Figure C-10
Art Park Artist Live/Work Concept: Second Floor
0 80 feet
444
Appendix C – Vacant and Available Sites C-26 EMC Planning Group Inc.

Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Developed at a maximum density of 81 dwelling units per acre, the site would allow a maximum of 27 units. Currently, the City intends to consider developing 16 units to accommodate nine (9) very low- and seven (7) low-income households (Tables C-9 and C-10). Based on City-ownership of the site, and community support to develop affordable artist live/work units, this site is anticipated to develop during the planning cycle to accommodate a total of 16 lower-income units.

Steps for development on this site include continuing negotiations to acquire the A&R Plumbing parcel (APN 011-196-015-000) in 2024. Subsequently, the City will follow the requirements of the Surplus Land Act to lease the land to facilitate the development of affordable residential units. This process includes the development of a project description, publication of an RFP within 12-18 months, selection of a development partner, two years to enter into an Exclusive Negotiation Agreement, two years for land use entitlements and development agreements, 6-12 months for building permit issuance, and 1-2 years for construction. Council approval is required for each step in this process. The City has included Program 3.I to establish and monitor the City’s anticipated timeline and actions for entering into the SLA process (see Chapter 2).

Parcel 011-196-020-000 was previously identified in the 5th cycle planning period. The site did not develop due to its small size. To enable development during the 6th cycle planning period, the City plans to acquire an adjacent parcel to increase the overall site size and development opportunity.

Program 3.I establishes a by-right development process for the site since it was previously identified in the 5th cycle planning period. Pursuant to Government Code section 65583.2(c), if a developer proposes a project with a minimum of 20 percent affordable, the City shall permit development without discretionary action.
445
Appendix C – Vacant and Available Sites C-27 EMC Planning Group Inc.

Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table C-9 Site #2 Description
Site Description Site Image & Capacity Calculation
Address 525 Ortiz Ave. and 502 Ortiz Ave.

APN
011-196-020-000*
011-196-014-000
011-196-015-000 (privately-owned
parcel)
By-Right with 20%
Affordable Yes, used in 5th cycle.

Size of Site 0.345 acres
Zoning MU-P
General Plan MU-D
Allowable Density Max. 81 du/ac
RHNA Affordability Very low-income: 8 units
Low-income: 8 units
Existing Use Vacant
Infrastructure
Availability Yes, no constraints Realistic Capacity utilizing factors = (0.345 X 81) (.90) (.70) (.95) = 16 units
57% of max density Environmental
Constraints None known.

Other Constraints Funding needs to be sourced, potentially through Prohousing Community Designation; an affordable housing developer partnership would need to be initiated and fostered.

SOURCE: City of Sand City
NOTES: *Parcel 011-196-020-000 used in 5th cycle.

Table C-10 Site #2 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 70% Based on site size, retaining existing open park area, City ownership of the parcels, and community support for the development.

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

Infrastructure availability No adjustment Not applicable, no constraints Environmental Constraints No adjustment No known site constraint SOURCE: City of Sand City
446
Appendix C – Vacant and Available Sites C-28 EMC Planning Group Inc.

Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Site 3: The Independent, Phase 2
Site #3 is located just west of Del Monte Boulevard and the eastern City limit. Current use on the site includes The Independent, which is a completed Phase 1 construction of a mixed-use project that included ground-floor commercial uses and 64 upper story residential units (including 11 affordable units). Phase 1 of The Independent was completed in 2007 and there is currently interest from the property owners to add an additional seven (7) residential units in vacant commercial space for a potential total of 71 units.

Intentions for Phase 2 development of the site include five stories of residential development. A property owner interest form is included in Attachment A.

Neighboring paved and unpaved lots that are currently used as accessways, parking, and outdoor art work areas and display storage can contribute to the overall building site that will be, The Independent, Phase 2. The City owns the rights over one of the adjacent vacant lots that could contribute to providing housing and parking in Phase 2.

This site would remain zoned as MU-P with a coastal zone overlay (CZ-MU-P), extending 100 feet into the site from the easterly property line. The current cumulative area of the site of 3.2 acres would allow a maximum of 259 units developed at 81 dwelling units per acre. However, based on adjustments for on-site improvements and typical densities, the site is anticipated to develop 107 lower-income units (Tables C-11 and C-12). The need to accommodate parking also reduces development capacity.

To further incentivize development of the project, the City will consider reduced parking requirements. Program 1.J will regulate this action, which establishes reduced parking standards based on the City’s West End Parking Plan (see Chapter 2).

Based on the successful development of Phase 1, City support for the affordable residential development, and adequate site size to accommodate affordable residential units, this site is anticipated to develop during the planning cycle to accommodate a total of 107 lower-income units.

A non-appealable Coastal Development Permit (CDP) is required for development within the coastal zone overlay area of this site, which would be issued by the City Council according to the certified LCP. This process includes a published public hearing notice that is mailed to the California Coastal Commission prior to City Council consideration; it also includes submitting a "Notice of Action" to the California Coastal Commission after City Council action. Additional steps to development include filing a building permit; building permit issuance; and construction. A CDP is only required if development occurs on the portion of the parcel within the coastal zone overlay of the site.
447
Appendix C – Vacant and Available Sites C-29 EMC Planning Group Inc.

Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table C-11 Site #3 Description
Site Description Site Image & Capacity Calculation
Address 524, 525, and 526 Elder Avenue
and two parcels with no address
APN
011-232-027-000
011-232-022-000
011-232-021-000
011-236-027-000
011-236-029-000
By-Right with 20%
Affordable No, not used in previous cycles.

Size of Site 3.2 acres
Zoning CZ-MU-P and MU-P
General Plan MU-D
Allowable Density Max. 81 du/ac
RHNA Affordability
Very low-income: 46 units
Low-income:31 units
Moderate-income: 30
Existing Use Vacant
Infrastructure
Availability Yes, no constraints Realistic Capacity utilizing factors = (3.2 X 81) (.90) (.49) (.95) = 107 units
41% of max density Environmental
Constraints None known.

Other Constraints If development expands beyond the initial intended footprint, then the design may need to incorporate existing at-grade parking or consider the building of a parking garage.

SOURCE: City of Sand City
Table C-12 Site #3 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 49% Based on adequate site size, developer interest, City support of project, and accommodating parking needs.

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

Infrastructure availability No adjustment Not applicable, no constraints Environmental Constraints No adjustment No known site constraint SOURCE: City of Sand City
448
Appendix C – Vacant and Available Sites C-30 EMC Planning Group Inc.

Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Site 4: 1793 Catalina Street
Site #4, located at 1793 Catalina Street, is a commercial building with a discontinued use that is currently for sale, as shown in Figure C-11. Opportunities for this site include possible adaptive reuse of the existing building or redevelopment to maximize the potential number of residential units.

Figure C-11 1793 Catalina Street, Site #4
SOURCE: City of Sand City
The site would remain zoned MU-P. The site is approximately 0.138 acres, which would allow for a maximum of 11 units developed at 81 dwelling units per acre (Tables C-13 and C-14). However, the site is intended to develop two (2) above-moderate units. This is a result of the small size of the lot, rendering its feasibility to favor the development of townhomes. Discussions with developers conclude that developing mixed-income and affordable housing units is challenging in circumstances where developable land is constrained by small lot sizes.

Additionally, parcels that are less than 0.5 acres are considered inadequate to accommodate housing affordable to lower-income households unless there is developer or property owner interest in constructing affordable units. Without property owner interest in developing affordable housing on the site, it is unrealistic to assume affordable units will be developed. Should the property owner express interest in developing affordable units, the site will be reconsidered for feasibility to develop affordable units. Despite the small size of the site, the City has completed several successful housing developments on small lots (recent projects include Catalina Lofts, The Sandbox, and 1745 Hickory Street).

Existing uses on the site are not an impediment to development of residential units since current commercial uses have been discontinued and the building is for sale. While the MU-P Zoning District allows nonresidential uses, the City has seen an uptick in residential developments and 449
Appendix C – Vacant and Available Sites C-31 EMC Planning Group Inc.

Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 projects in the MU-P zone. Examples of recent developments and current projects in the MU-P zone are included in Tables C-5 and C-6, including the South of Tioga project, which is anticipated to develop a total of 356 residential units. Additionally, the City has increased the density bonus for residential development to 250 percent (81 dwelling units per acre), which is anticipated to increase residential development in the MU-P zone (Program 1.C, see Chapter 2).

Intentions for the site include either extensive remodeling of the existing building or demolition.

Steps for development on this site include filing for a CUP, which includes a single hearing of the City Council and is coupled with site plan review; filing a building permit application; building permit issuance; and construction.

Table C-13 Site #4 Description
Site Description Site Image & Capacity Calculation
Address 1793 Catalina Stret
APN 011-243-004-000
By-Right with 20%
Affordable No, not used in previous cycles.

Size of Site 0.138 acres
Zoning MU-P
General Plan MU-D
Allowable Density Max. 81 du/ac
RHNA Affordability Above moderate-income: 2
Existing Use Vacant
Infrastructure
Availability Yes, no constraints Realistic Capacity utilizing factors = (0.138 X 81) (.90) (.30) (.95) = 2 units
18% of max density Environmental
Constraints None known.

Other Constraints Extensive remodeling and/or demolition of existing building required.

SOURCE: City of Sand City
450
Appendix C – Vacant and Available Sites C-32 EMC Planning Group Inc.

Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table C-14 Site #4 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 30%
Based on feasibility to develop high-end townhomes on small lot sizes.

Limited to above moderate affordability due to small lot size and lack of expressed owner interest to develop affordable units.

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

Infrastructure availability No adjustment Not applicable, no constraints Environmental Constraints No adjustment No known site constraint SOURCE: City of Sand City
Site 5: 1712 Catalina Street
Site #5, located at 1712 Catalina Street, includes a recently condemned single-family home and is currently for sale, as shown in Figure C-12. Redevelopment of this site is likely the course of action to maximize the potential number of residential units.

Figure C-12 1712 Catalina Street, Site #5
SOURCE: City of Sand City
451
Appendix C – Vacant and Available Sites C-33 EMC Planning Group Inc.

Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 The site would remain zoned MU-P. The site is approximately 0.088 acres, which would allow for a maximum of seven (7) units developed at 81 dwelling units per acre (Tables C-15 and C-16).

However, the site is intended to develop one (1) above-moderate unit. Similar to Site #4, recent discussions with developers have concluded that market conditions favor the development of highend townhomes on smaller parcels where high volume is unattainable.

Without property owner interest in developing affordable housing on the site, it is unrealistic to assume affordable units will be developed. Should the property owner express interest in developing affordable units, the site will be reconsidered for feasibility to develop affordable units. Despite the small size of the site, the City has completed several successful housing developments on small lots (recent projects include Catalina Lofts, The Sandbox, and 1745 Hickory Street). Additionally, the site is anticipated to accommodate above-moderate income units, increasing the feasibility of development.

Existing uses on the site are not an impediment to development of residential units since the existing single-family home has been condemned and is for sale. While the MU-P Zoning District allows nonresidential uses, the City has seen an uptick in residential developments and projects in the MUP zone. Examples of recent developments and current projects in the MU-P zone are included in Tables C-5 and C-6, including the South of Tioga project, which is anticipated to develop a total of 356 residential units. Additionally, the City has increased the density bonus for residential development to 250 percent (81 dwelling units per acre), which is anticipated to increase residential development in the MU-P zone (Program 1.C, see Chapter 2).

Intentions for the site include demolition to maximize redevelopment potential for residential units.

Steps for development on this site include filing for a CUP, which includes a single hearing of the City Council and is coupled with site plan review; filing a building permit application; building permit issuance; and construction.
452
Appendix C – Vacant and Available Sites C-34 EMC Planning Group Inc.

Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table C-15 Site #5 Description
Site Description Site Image & Capacity Calculation
Address 1712 Catalina Street
APN 011-237-001-000
By-Right with 20%
Affordable No, not used in previous cycles.

Size of Site 0.088 acres
Zoning MU-P
General Plan MU-D
Allowable Density 81 du/ac
RHNA Affordability Above moderate-income: 1
Existing Use Vacant
Infrastructure
Availability Yes, no constraints Realistic Capacity utilizing factors = (0.088 X 81) (.90) (.30) (.95) = 1 unit
14% of max density Environmental
Constraints None known.

Other Constraints Extensive remodeling and/or demolition of existing building required.

SOURCE: City of Sand City
Table C-16 Site #5 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 30%
Based on feasibility to develop high-end townhomes on small lot sizes.

Limited to above moderate affordability due to small lot size and lack of expressed owner interest to develop affordable units.

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

Infrastructure availability No adjustment Not applicable, no constraints Environmental Constraints No adjustment No known site constraint SOURCE: City of Sand City
453
Appendix C – Vacant and Available Sites C-35 EMC Planning Group Inc.

Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Sites 6 & 7
Sites #6 and #7 are vacant adjacent unpaved lots, which together equal 0.172 acres. Since 2011, accumulation of assorted materials and vehicles has occurred on these otherwise vacant and underutilized lots. It is anticipated the sites will undergo lot consolidation to maximize development potential. As previously discussed, the City has had great success utilizing lot consolidation as a tool to develop housing with limited land availability (recent projects include Catalina Lofts and The Sandbox). Both parcels were used in the 5th cycle, however, due to the small size of the site even with lot consolidation, the site is considered inadequate to accommodate low-income units.

The site would remain zoned MU-P. Developed at a density of 81 dwelling units per acre, the consolidated site would allow a maximum of 13 units (Tables C-17 and C-18). However, the consolidated site is intended to develop six (6) above-moderate units. This is a result of the small size of the lots, rendering its feasibility to favor the development of townhomes or condominiums.

Discussions with developers conclude that developing mixed-income and affordable housing units is challenging in circumstances where developable land is constrained by small lot sizes. Typically, townhomes and condominiums are more feasible to develop under such circumstances. However, the City is currently undergoing a proforma to determine development potential and feasibility of specific sites throughout the City. These particular parcels are included in the proforma study, which in the preliminary stage found that six (6) townhomes or condominiums was most feasible on the site. Upon receiving the final results of the study, the City will adjust assumptions accordingly.

Despite the small size of the sites, it is expected that development will occur, based on the feasibility to develop townhomes/condominiums affordable to above moderate-income households. The City also has a successful track record for developing on small lot sizes (Catalina Lofts, The Sandbox, and 1745 Hickory Street).

Steps for development of the site include lot consolidation, which requires the filing of an application and City Council approval; filing for a CUP, which includes a single hearing of the City Council and is coupled with site plan review; filing a building permit application; building permit issuance; and construction.

There are no existing structures on the site. While the MU-P Zoning District allows nonresidential uses, the City has seen an uptick in residential developments and projects in the MU-P zone.

Examples of recent developments and current projects in the MU-P zone are included in Tables C-5 and C-6, including the South of Tioga project, which is anticipated to develop a total of 356 residential units. Additionally, the City has increased the density bonus for residential development to 250 percent (81 dwelling units per acre), which is anticipated to increase residential development in the MU-P zone (Program 1.C, see Chapter 2).
454
Appendix C – Vacant and Available Sites C-36 EMC Planning Group Inc.

Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table C-17 Sites #6 and 7 Description
Site Description Site Image & Capacity Calculation
Address No address
APN 011-238-012-000
011-238-011-000
By-Right with 20%
Affordable N/A
Size of Site 0.0172 acres
Zoning MU-P
General Plan MU-D
Allowable Density Max. 81 du/ac
RHNA Affordability Above moderate-income: 6
Existing Use Vacant
Infrastructure
Availability Yes, no constraints Realistic Capacity utilizing factors = (0.172 X 81) (.90) (.55) (.95) = 6 units
46% of max density Environmental
Constraints None known.

SOURCE: City of Sand City
Table C-18 Sites #6 and 7 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 25%
Based on feasibility to develop high-end townhomes on small lot sizes.

Limited to above moderate affordability due to small lot size and lack of expressed owner interest to develop affordable units.

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

Infrastructure availability No adjustment Not applicable, no constraints Environmental Constraints No adjustment No known site constraint SOURCE: City of Sand City
Site 8: 445 Orange Avenue
Site #8, located at 445 Orange Avenue, is a vacant lot adjacent to two duplexes. This site was used in the 5th cycle, however, due to the small size of the site, the site is considered inadequate to accommodate low-income units.
455
Appendix C – Vacant and Available Sites C-37 EMC Planning Group Inc.

Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 The site would remain zoned MU-P. The site is approximately 0.045 acres, which would allow a maximum of three (3) units developed at 81 dwelling units per acre (Tables C-19 and C-20).

However, the site is intended to develop two (2) units. This is a result of the small size of the lot, rendering its feasibility to favor the development of a single-family home or a duplex. There are no existing structures on the site. Based on desirability in the area, potential development on the site could include a single-family home with an attached ADU.

As a result of the small lot size, the assumed affordably is limited to above moderate-income households. Without property owner interest in developing affordable housing on the site, it is unrealistic to assume otherwise. Should the property owner express interest in developing affordable units, the site will be reconsidered for feasibility in developing affordable units. Despite the small size of the site, the City has completed several successful housing developments on small lots (recent projects include Catalina Lofts, The Sandbox, and 1745 Hickory Street).

While the MU-P Zoning District allows nonresidential uses, the City has seen an uptick in residential developments and projects in the MU-P zone. Examples of recent developments and current projects in the MU-P zone are included in Tables C-5 and C-6, including the South of Tioga project, which is anticipated to develop a total of 356 residential units. Additionally, the City has increased the density bonus for residential development to 250 percent (81 dwelling units per acre), which is anticipated to increase residential development in the MU-P zone (Program 1.C, see Chapter 2) Table C-19 Site #8 Description
Site Description Site Image & Capacity Calculation
Address 445 Orange Ave
APN 011-238-021-000
By-Right with 20%
Affordable N/A
Size of Site 0.045 acres
Zoning MU-P
General Plan MU-D
Allowable Density 81 du/ac
RHNA Affordability Very low-income: 1 (ADU)
Above moderate-income: 1
Existing Use Vacant
Infrastructure
Availability Yes, no constraints Realistic Capacity utilizing factors = (0.045 X 81) (.90) (.95) (.95) = 2 units
67% of max density Environmental
Constraints None known.

SOURCE: City of Sand City
456
Appendix C – Vacant and Available Sites C-38 EMC Planning Group Inc.

Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table C-20 Site #8 Capacity Assumptions
Site Description Adjustment Reasoning
Land use controls and site
improvements 90% For net acreage due to challenging site geometry, on-site improvements, and utility easement needs.

Realistic capacity of the site 40%
Based on feasibility to develop single-family on small lot. Limited to above moderate affordability due to small lot size and lack of expressed owner interest to develop affordable units.

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

Infrastructure availability No adjustment Not applicable, no constraints Environmental Constraints No adjustment No known site constraint SOURCE: City of Sand City
C.5 Additional Opportunities for Residential Development and Affordable Housing
Accessory Dwelling Units (ADUs and Junior ADUs)
The number of accessory dwelling units constructed in Sand City 2019-2023 averaged less than one (1) per year. Only one (1) ADU was constructed in the eight years for the 5th Cycle. ADU construction is not a viable option for most of the small single-family lots with existing structures that envelop most of the available footprint. JADUs may be encouraged through development of the East Dunes single-family neighborhood, and a new program to incentivize ADU construction within commercial sites to enable greater flexibility than existing state regulations (see Program 1.K in Chapter 2).

Based on past development trends, ADU programs and incentives may lead to at least a doubling of ADU construction in the next eight-year cycle, for a total of two (2) ADU/JADUs. However, coupled with recent interest in Sand City, the City believes that within the eight-year planning cycle the development of ADUs will exceed current projections. The City is utilizing a conservative projection of two ADUs to be counted toward the RHNA.

The Association of Bay Area Governments (ABAG) conducted an analysis of ADU affordability and concluded approximately 30 percent of ADUs are affordable to very low-income households, 30 percent affordable to low-income households, 30 percent affordable to moderate-income households, and 10 percent affordable to above-moderate income households.4 Due to the proximity of Sand City to the ABAG region, these affordability assumptions are suitable to use for Sand City’s ADU projects in the Site Inventory. The Sites Inventory assumes Sand City will produce two (2) very low- and one (1) low ADU, for a total of three (3). 4 ABAG. Using ADUs to satisfy RHNA Technical Memo. https://abag.ca.gov/sites/default/files/documents/2022- 03/ADUs-ProjectionsMemo-final.pdf
457
Appendix C – Vacant and Available Sites C-39 EMC Planning Group Inc.

Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Multi-Family Development
Property owners of The Independent, Phase 1, are proposing an expansion of the number of residential units from 64 to 71 for a total of seven (7) new units. The property owner is currently preparing an application for the additional residential units proposed on the ground floor, which would replace vacant commercial space.

Prohousing Community Designation
As part of the 2019-20 Budget Act, AB 101 enacted the Prohousing Designation Program. This program enables the California Department of Housing and Community Development (HCD) to designate jurisdictions throughout the state as Prohousing when they demonstrate policies and planning that accelerate the production of housing. The benefit to jurisdictions receiving the Prohousing designation includes being given preference and, in some cases, additional points, when participating in various state funded programs including the Affordable Housing and Sustainable Communities (AHSC), and Infill Infrastructure Grant (IIG) programs.

Sand City is in the process of applying to gain Prohousing Designation from HCD concurrent with the preparation and certification of its 6th Cycle Housing Element. Sand City’s housing sites inventory is over 150 percent of RHNA, which furthers its Prohousing application.

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

Due to Sand City’s extremely small population size, capturing data reflective of the city’s demographics has presented challenges. Housing and Community Development’s (HCD) AFFH Data Viewer tool reports data at either the census tract or block group level, both of which report data that extends significantly beyond the population of Sand City. Therefore, place level data reported by the U.S. Census Bureau in ACS 5-year estimates appears to provide the most accurate estimates for household characteristics in Sand City. Both sets of data were analyzed and compared for differences in this report.

Tables C-22 through C-30 and Figures C-13 through C-22 show the distribution of projected units by income category of the following indicators compared to citywide patterns to understand how the projected locations of units will affirmatively further fair housing: TCAC/HCD opportunity 458
Appendix C – Vacant and Available Sites C-40 EMC Planning Group Inc.

Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 areas, predominant population, median income, poverty rates, female-headed households, disability rates, overcrowding, and cost burden. The following sites inventory discussion includes an analysis of the number of projected units by income category, total RHNA capacity, and city acreage by income category to further assess the potential impacts of the sites inventory to affirmatively further fair housing.

The City has a total RHNA of 260 units for the 2023-2031 period. Sand City has adequate sites to accommodate housing development at 194 percent of the RHNA. The site inventory provides a total capacity for 505 units and opportunities for the development of a variety of housing types suitable for a range of households and income levels. Of this, 141 units are to be accommodated through vacant and underutilized sites, second phase development, and ADUs; pipeline projects comprise 364 units. In accordance with State law, all of the sites in the inventory are considered to be zoned appropriately to facilitate housing affordable to lower-income households.

Please note: several of the City’s sites in the inventory list are comprised of multiple parcels (referred to as APNs (Assessor’s Parcel Numbers). Each site is shown with a separate dot symbol on Figures C-12 through C-21.

Overview
Table C-21 illustrates factors that were considered when selecting sites to accommodate lower income households according to RHNA goals. Further details of AFFH site selection consideration are found within this section.

Table C-21 Projects/Sites Selected to Accommodate Lower Income RHNA Consideration Factors
Lower
Income
Sites
Proximity
to Transit
Access To
HighPerforming
Schools and
Jobs
Access to
Amenities
(Parks,
Services)
Access to
Health
Care and
Grocery
Stores
Available
Infrastructure
Environmental
Mitigation Not
Likely
Necessary
Development
Streamlining
Process in
Effect
Catalina
Lofts* x x x x x x
South of
Tioga R1
and R2*
x x x x x x
x
Site #1 x x x x x x
Site #2 x x x x x x
Site #3 x x x x x x
SOURCE: City of Sand City
NOTE: *Catalina Lofts and South of Tioga Parcels R1 and R2 are included as pipeline projects contributing to the 6th cycle RHNA. 459
Appendix C – Vacant and Available Sites C-41 EMC Planning Group Inc.

Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table C-22 AFFH Indicators Table
Assessment of Fair Housing Indicators
Realistic Capacity Access to Opportunity Segregation/Integration Disproportionate Housing Needs
Site
Number APN VLI LI MI AM Poverty Level1

TCAC/HUD
Opportunity
Area2
Median
HH
Income3
Predominant
Race4
Diversity
Index5
Female
Headed
HH6
Disabled7
Cost
Burdened
Renters8
Overcrowded
HH9
Salvation Army
1 011-186-020-000 5

10.8% Moderate $60,682 Non-Hispanic
White 88.8 9.3% 11.6% 74.4% 8.7%
City of Sand City Art Park
2 011-196-023-000 3 3
011-196-020-000 3 3
011-196-015-000 3 1
The Independent, Phase 2
3 011-232-027-000 2 2
011-232-022-000 2 2
011-232-021-000 2 2
011-236-027-000 38 23 30
011-236-029-000 2 2
Underutilized
4 011-243-004-000 2
5 011-237-001-000 1
Vacant
6 011-238-012-000 3
7 011-238-011-000 3
8 (1 VL ADU) 011-238-021-000 1
460
Appendix C – Vacant and Available Sites C-42 EMC Planning Group Inc.

Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Assessment of Fair Housing Indicators
Realistic Capacity Access to Opportunity Segregation/Integration Disproportionate Housing Needs
Site
Number APN VLI LI MI AM Poverty Level1

TCAC/HUD
Opportunity
Area2
Median
HH
Income3
Predominant
Race4
Diversity
Index5
Female
Headed
HH6
Disabled7
Cost
Burdened
Renters8
Overcrowded
HH9
Pipeline Projects
9 011-231-001-000 8
10 011-601-001-000 125
11 011-601-002-000 9 7 26 189
ADUs
N/A 1 1
SOURCE: City of Sand City; U.S. Census ACS 5-Year Estimates, place level data; HCD AFFH Data Viewer; CTCAC/HCD Opportunity Area Maps NOTES: VLI = very low-income; LI = low-income; MI = moderate-income; AM = above moderate-income; HH = household 1 US Census ACS 5-Year Estimate, 2021, Table S1701; place level data 2 CTCAC/HCD Opportunity Area Maps, 2023; census tract level data 3 US Census ACS 5-Year Estimate, 2021, Table DP03; place level data 4 US Census ACS 5-Year Estimate, 2021, Table B03002; place level data 5 HCD AFFH Data Viewer, ESRI, Diversity Index, 2023, census tract level data 6 US Census ACS 5-Year Estimate, 2021, Table B11001; place level data 7 US Census ACS 5-Year Estimate, 2021, Table S1810; place level data 8 US Census ACS 5-Year Estimate, 2021, Table DP04; place level data 9 US Census ACS 5-Year Estimate, 2021, Table S2501; place level data 461
Appendix C – Vacant and Available Sites C-43 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Transit in Sand City
Two major transit stops overlap in Sand City to make all sites within the West End within a halfmile walk to 15-minute interval bus options. Pedestrian improvements are underway to improve sidewalk and pedestrian and bicycle access to the bus stops and among city amenities.

School Access in Sand City
Sand City students are within the boundaries of the Monterey Peninsula Unified School District.

Intra-district school transfers are available for any family with access to the School District, so that opportunities may fit families’ needs. Additionally, charter schools such as the International School of Monterey, Chartwell, and Learning for Life are available to Sand City residents.

Sand City Amenities
Multiple popular commercial shopping opportunities existing within the City of Sand City. The City currently has an Art Park, which is host to many community events, a City Park next to City Hall, and a City Park within the South of Tioga development project. Additionally, the beach is a well-used and loved amenity. The City is applying for grants to improve coastal access and trails as discussed in Chapter 5.

Sand City Health Care and Grocery Stores
Although there are no health care resources within the City boundary for Sand City, neighboring cities such as Seaside and Monterey, have ample health services available within a short distance.

Multiple popular commercial shopping opportunities and grocers exist in Sand City.

Available Infrastructure
Sites #1-3 are anticipated to accommodate lower-income households, both of which have available infrastructure including dry utilities and water capacity. Program 2.B is included in this housing element to ensure priority service is granted for developments that include housing units affordable to lower-income (see Chapter 2). The City will be utilizing its desalination plant water entitlements to satisfy the RHNA.

Environmental Mitigation
While many areas in Sand City were designated for industrial uses, none of the identified housing opportunity sites had previous or existing uses that left a legacy of contaminants (I.e.: dry cleaning, production of coal, coke, tar, dry fertilizers, gelatine, animal glue, turpentine, matches, or paint; processing of nitrating cotton or other materials; magnesium foundry; reduction, refining, smelting or alloying of metals; refining petroleum products; distillation of wood or bones; or tanning of raw or salted hides of skins). Identified housing opportunity sites are located in light industrial areas where common uses included plumbers, electricians, etc. 462
Appendix C – Vacant and Available Sites C-44 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Environmental mitigation is not necessary for the housing opportunity sites selected to accommodate the RHNA. There are no other conditions that pose a constraint to the development of sites identified in the site inventory.

Development Streamlining
The South of Tioga Parcel R2 pipeline project would be streamlined for development review because it was used in the 5th Cycle, and would therefore be ministerial according to Objective Design Standards.

Potential Effect on Access to Opportunity
TCAC/HCD Opportunity Areas
The TCAC/HCD Opportunity Areas are categorized by census tracts into high, moderate, or low-resource areas based on a composite score of economic, education, and environmental factors that have the ability to perpetuate poverty and segregation. These factors include: school proficiency, median income, median housing prices, and environmental pollution. Please note:

TCAC Opportunity Area data is analyzed at the census tract level. While Sand City is within Census Tract 140, this tract also includes the City of Seaside, which may impact data accuracy.

Most of Monterey County is identified as low resource, especially areas along the U.S. 101 corridor. Moderate resource areas are seen in the northwest areas surrounding Monterey Bay, and the highest resource areas are seen in the City of Monterey and areas south along the coast.

Table C-23 reports the census tracts for which housing opportunity sites are located and the associated TCAC/HCD opportunity area domain scores. As shown in Table C-23, Sand City is comprised of only moderate resource areas. Opportunity areas within Census Tract 140 rank lowest in the environmental (0.10) and economic (0.19) domains. A low economic domain score may be an indicator of high rates of poverty, low levels of adult education, lack of employment opportunities, low proximity to jobs, and low median home values. Additionally, a low environmental domain score may be an indicator of high levels of pollution burden. Each domain is individually analyzed further in the following section.

Table C-23 TCAC/HCD Opportunity Area Domains, 2023
Census Tract Economic
Domain
Education
Domain
Environmental
Domain
Composite
Index
Opportunity
Designation
140 0.19 0.66 0.10 3.0 Moderate
Resource
SOURCE: TCAC/HCD Opportunity Map, 2023; City of Sand City 463
Appendix C – Vacant and Available Sites C-45 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table C-24 reports the distribution of housing opportunity units at each income level according to their designated resource area. As shown in Table C-24, all anticipated housing opportunity units are planned to be accommodated in moderate resource areas. Of the anticipated housing opportunity units, approximately 117 are low-, 56 are moderate-, and 332 are above moderateincome.

Table C-24 Site Inventory Unit Count by TCAC/HCD Opportunity Area, 2023 Income Group Moderate Resource Percent
Very Low-Income 71 14%
Low Income 46 9%
Moderate-Income 56 11%
Above Moderate-Income 332 66%
Total 505 100%
SOURCE: TCAC/HCD Opportunity Areas Map, 2023; City of Sand City Figure C-13 illustrates TCAC Opportunity Areas in relation to identified housing opportunity sites. The locations of sites for each income category were chosen to facilitate the development of mixed-income neighborhoods and to increase the availability of affordable housing in proximity to transit, retail, and other services. Reliable public transit access and the option to walk or bike are imperative for low-income residents and/or persons with disabilities to connect to employment opportunities. As discussed in Appendix A – Housing Needs and Fair Housing Report, Sand City residents have a high level of access to transit5 and a high walkability score6.

Appendix A also details the jobs to housing imbalance that the city experiences, which comes as a result of the city’s past serving the Monterey Peninsula as the industrial hub. The City’s land use and zoning patterns were developed to accommodate industrial and manufacturing industries, producing few and scattered residential land uses. The City is now working to reverse the mass of industrial and manufacturing land uses in the city, and introducing more residential focused land uses. Land uses located north of Tioga Avenue are primarily zoned for commercial uses and habitat preservation. Whereas, land uses south of Tioga Avenue are primarily zoned to accommodate a mix of uses including residential. The City has begun extensive planning to develop the southern area of the city, including the 2019 Sand City Vibrancy Plan; 2021 Sand City Sustainable Transportation Plan; and the 2023 Sand City West End Parking Plan. Each of these plans have contributed to promoting the development of residential units in the City’s West End and South of Tioga districts.
5 https://alltransit.cnt.org/fact-sheet/?mapR=248,-121.8600225,36.627557464943905,12.864450190921145,place,2244 6 https://www.walkscore.com/score/sand-city-ca 464
Appendix C – Vacant and Available Sites C-46 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure C-13 Sites Inventory Analysis by TCAC/HCD Opportunity Areas, 2023 SOURCE: HCD AFFH Data Viewer, census tract level data; City of Sand City 465
Appendix C – Vacant and Available Sites C-47 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 As shown in Figure C-13, all anticipated housing opportunity units are located in the City’s West End and South of Tioga Districts. Between these two regions, a mix of residential units are anticipated to accommodate both lower and above moderate-income households. Therefore, there is no isolation of the RHNA according to income group and location. The distribution of units is intended to increase the level of residential opportunity in an area of the City that has a high level of access to transit, public services, is in close proximity to jobs, and is highly walkable.

Increasing the supply of housing affordable to a range of income categories is intended to provide an opportunity for lower-income households to obtain adequate and affordable housing in the city.

To ensure that adequate infrastructure and resources are provided in areas of new housing development, Program 2.A is included in the Housing Element (see Chapter 2). This program monitors the implementation of the City’s five-year Capital Improvement Program and budgeting revenues to improve streets, sidewalks, storm drainage, wastewater and water lines within the West End District. Approximately 28 percent of the new housing opportunity sites are anticipated within the West End District and will benefit from the infrastructure improvements.

The South of Tioga District has recently undergone significant infrastructure improvements, including accessible potable water, stormwater, sewer lines, streets and sidewalks. Approximately 72 percent of the new housing opportunity sites are anticipated within the South of Tioga District. The City will receive ownership of the streets and associated improvements by Summer 2024.

Educational Opportunities, Economic Mobility, and Environmental Health As discussed at length in Appendix A, Sand City, Census Tract 140, scores moderately in the educational, economic, and environmental domains that comprise TCAC/HCD opportunity area designations. Also previously stated, Census Tract 140 includes the cities of Sand City and Seaside, which may impact data accuracy.

Education
The TCAC/HCD Opportunity Area Education score is based on math proficiency, reading proficiency, high school graduation rates, and the student poverty rate. As shown in Table C-23, the educational domain score for Sand City is 0.66, indicating moderate educational outcomes.

According to the AFFH Data Viewer, there is no geographic variation in educational opportunity in Sand City, meaning residents across the city experience similar access to educational opportunity (Figure C-14).
466
Appendix C – Vacant and Available Sites C-48 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure C-14 Sites Inventory Analysis by TCAC/HCD Education Domain, 2021 SOURCE: HCD AFFH Data Viewer, census tract level; City of Sand City 467
Appendix C – Vacant and Available Sites C-49 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Sand City is served by the Monterey Peninsula Unified School District (MPUSD). There are no school facilities in Sand City, therefore all students must travel outside of the city to local schools within the district. However, the neighboring Cities of Seaside and Monterey have school facilities for elementary, middle, and high school students, which may accommodate students of Sand City. According to the Monterey Peninsula Unified School District (MPUSD), graduation rates for 2022 were 94.6 percent among all students in the district, which is higher than the statewide average (87.4 percent) and the County average (86.2 percent).

As shown in Figure C-14, all anticipated housing opportunity units are located in the City’s West End and South of Tioga districts. Between these regions, a mix of residential units are anticipated to accommodate both lower and above moderate-income households. Therefore, there is no isolation of the RHNA according to income group and location. As later discussed, approximately 10.8 percent of households in the city live below the poverty line.

Based on the MPUSD reported graduation rates, the city’s poverty status is the likely factor impacting is TCAC educational score. To specifically address the needs of students that are experiencing poverty in Sand City, the City will meet bi-annually with MPUSD to determine what, if any, outside factors impede school performance that can be alleviated, such as stable housing opportunities, childcare opportunities for working parent(s)/guardian(s), and/or other factors. The City has included Program 3.N to establish and monitor these actions (see Chapter 2). The City is committed to improving housing stability for extremely low-income households and households with children, including increasing housing opportunity for extremely lowincome households. The City has developed a suite of programs to facilitate the construction of housing affordable to lower-income households and support lower-income households through continued education (Programs 1.A, 1.B, 1.C, 1.D, 1.G; 1.J, 1.K, 1.L, 1.M, 1.N, 1.O, 1.P, 1.Q; 1.S;

3.B, 3.C, 3.D, 3.E, 3.F, 3.G, 3.H, 3.I, 3.J, 3.K, see Chapter 2).

Economic
The TCAC/HCD Opportunity Area Economic score is based on poverty, adult education, employment, proximity to jobs, and median home value. As shown in Table C-23, the economic domain score for Sand City is 0.19, indicating low economic mobility. According to the AFFH Data Viewer, there is no geographic variation in economic opportunity, meaning residents across the city experience similar access to economic opportunity such as, public resources, education, employment, proximity to jobs, median home values, and overall neighborhood characteristics (Figure C-15).
468
Appendix C – Vacant and Available Sites C-50 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure C-15 Sites Inventory Analysis by TCAC/HCD Economic Domain, 2023 SOURCE: HCD AFFH Data Viewer, census tract level data; City of Sand City 469
Appendix C – Vacant and Available Sites C-51 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 As shown in Figure C-15, all anticipated housing opportunity units are located in the city’s West End and South of Tioga districts. Between these regions, a mix of residential units are anticipated to accommodate both lower and above moderate-income households. Therefore, there is no isolation of the RHNA according to income group and location. The City’s intentional distribution of new residential units in the West End and South of Tioga districts, is anticipated to cultivate a mix of uses, both residential and commercial, to provide local employees housing opportunities. Increasing residential opportunities in the city will reduce impacts contributing to a lack of economic mobility such as, proximity to jobs, median home values, and overall neighborhood characteristics by reducing the gap between supply and demand for affordable housing.

Environmental
The TCAC/HCD Opportunity Areas Environmental scores are based on the CalEnviroScreen

4.0 indicators, which identify areas disproportionately vulnerable to pollution sources such as ozone, PM2.5, diesel PM, pesticides, toxic release, traffic, cleanup sites, groundwater threats, hazardous waste, impaired water bodies, and solid waste sites.

As shown in Table C-23, Sand City has a low environmental domain score of 0.10, indicating a high level of pollution burden in the city. As shown in Figure C-16, Sand City’s environmental score is within the 60-80 percentile range, indicating residents are more likely to have health problems resulting from poor environmental conditions. According to the AFFH Data Viewer, there is no geographic variation in economic opportunity, meaning residents across the city experience similar exposure to pollution sources.

As previously mentioned, Sand City has historically served the Monterey Peninsula as the industrial hub. This likely impacts the city’s environmental domain score. Over the last decade, the city’s industrial activity has primarily converted to commercial and light industrial uses. None of the housing opportunity sites are located on parcels where a legacy of contaminants exists. The City’s General Plan includes policies regulating the location of sites that would include storage or use of hazardous materials and policies designed to protect local water quality. Additionally, the City has included Program 3.M to facilitate site cleanup for areas where land uses are anticipated to transition from industrial to mixed and residential uses in the future (see Chapter 2). This program establishes City commitments to working with property owners and developers in seeking funding opportunities and providing technical assistance on funding applications for brownfield remediation.
470
Appendix C – Vacant and Available Sites C-52 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure C-16 Sites Inventory Analysis by CalEnviroScreen 4.0, 2021 SOURCE: HCD AFFH Data Viewer, census tract level data; City of Sand City 471
Appendix C – Vacant and Available Sites C-53 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Due to Sand City’s extremely small population size and lack of local data, it is difficult to definitively determine the accuracy of the TCAC designation. Overall, residents across the city experience similar access to educational opportunities, economic mobility, and levels of pollution burden. Therefore, the distribution of housing opportunity sites and units at each affordability level will not create a discrepancy in access or perpetuate existing barriers to access. Rather, the increase in housing supply is intended to create more balanced and positive living patterns in Sand City. The City has developed a suite of programs to facilitate the construction of housing affordable to lower-income households, and to support lower-income and special needs households. All policies and programs are detailed in Chapter 2.

Potential Effect on Patterns of Integration and Segregation Racial Diversity
According to ACS 2021 5-year estimates, non-Hispanic White residents comprise the largest racial group in Sand City (43.1 percent of population), followed by Hispanic/Latino (32.4 percent), Some Other Race (12 percent), Black or African American (5.7 percent), Asian/Pacific Islander (3.4 percent), and American Indian or Alaska Native populations (3.1 percent).

As previously stated, Sand City is located within Census Tract 140, Block Group 1. However, data reported for Block Group 1 includes a population of approximately 1,428, whereas place level data reports Sand City includes a population of 348. Therefore, the extremely small population size of Sand City presents challenges to interpreting data. When analyzing predominant populations in Sand City, there appears to be no geographic variation at the census tract or block group level, non-Hispanic White residents makeup the majority across the city.

However, due to Sand City’s extremely small population size and lack of local data, it is difficult to definitively determine if concentrations of minority populations exist within the city.

Table C-25 reports the distribution of units at each income level by the Diversity Index score according to block group data, developed by ESRI in 2023, and the percent of non-Hispanic White population present according to place level data.7 The Diversity Index represents the likelihood that two people, chosen at random from the same area, belong to different race or ethnic groups.
7 The Bureau of the Census defines a place as a concentration of population; a place may or may not have legally prescribed limits, powers, or functions. This concentration of population must have a name, be locally recognized, and not be part of any other place. https://www2.census.gov/geo/pdfs/reference/GARM/Ch9GARM.pdf. Data reported for Sand City uses “place” data as this appears to be the most accurate data reported for the city. 472
Appendix C – Vacant and Available Sites C-54 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table C-25 Site Inventory Unit Count by Diversity Index and Percent Non-Hispanic White Population, 2023
Income Group Diversity Score 88.8
Non-Hispanic White Population 43% Percent
Very Low-Income 71 14%
Low Income 46 9%
Moderate-Income 56 11%
Above Moderate-Income 332 66%
Total 505 100%
SOURCE: HCD AFFH Data Viewer, 2023; U.S. Census Bureau, ACS 5-Year Estimate 2021, Table B03002, Place level data According to the Diversity Index, diversity in Sand City is high. As shown in Table C-25, Census Tract 140 has a Diversity Index score of 88.8, indicating that there is a probability of approximately 88.8 percent, that two people randomly chosen from Sand City would belong to different race or ethnic groups. Due to the difference in data reported at the block group level and place level, the Diversity Index is a not a reliable method of determining the level of diversity in Sand City. It should be understood, that based on ACS 5-year estimates using place level data, Sand City has a moderate level of diversity with only a slightly higher proportion of non-Hispanic White residents compared to Hispanic/Latino residents.

As shown in Table C-25, Sand City is anticipated to accommodate 117 lower-income, 56 moderate-income, and 332 above moderate-income housing opportunity units. Figure C-17 shows the distribution of anticipated housing opportunity units at each income level according to predominant population.

As shown in Figure C-17, all anticipated housing opportunity units are located in the city’s West End and South of Tioga districts. Between these regions, a mix of residential units are anticipated to accommodate both lower and above moderate-income households. Therefore, there is no isolation of the RHNA according to income group and location. The distribution of units is intended to increase the level of diversity in the area. Increasing the supply of housing affordable to a range of income categories is intended to provide an opportunity for lower-income households to obtain adequate and affordable housing in the city. 473
Appendix C – Vacant and Available Sites C-55 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure C-17 Sites Inventory Analysis by Predominant Population, 2021 SOURCE: HCD AFFH Data Viewer, census tract level data; City of Sand City 474
Appendix C – Vacant and Available Sites C-56 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 The City’s historic land use and zoning has primarily enabled the development of industrial and commercial facilities, which coupled with limited available land, coastal zoning, and many sensitive and protected habitats, has posed barriers to the development of residential structures over the last two decades. However, the combined effect of State mandates and local ordinances has weakened the impacts of such barriers. For example, State density bonuses and ADU laws have expanded, developer incentives have increased, the City has increased allowable densities in the MU-P District, and the development review process has been streamlined. These actions are facilitating the development of affordable residential units in a largely built out post-industrial community that is evolving into a more culturally inclusive and residential landscape.

To support households in need of assistance, the City has partnered with several service organizations in the region to connect residents with the appropriate assistance (I.e., transitional and supportive housing, employment, accessible transit, etc.). Specific service providers for special needs groups are listed in Appendix A. Additionally, the City coordinates with the County and State to provide fair housing resources to ensure that all residents are aware of the processes to file a complaint, receive counseling on housing and employment, and mediate landlord/tenant disputes. These efforts to affirmatively further fair housing for all ages, races, and ethnicities are rooted in enabling a variety of housing types for a range of households to secure housing in Sand City.

To further enable the development of affordable residential units, the City has established a suite of programs to ensure land use and zoning regulations support a variety of housing types; assistive services are identified for income-restricted and special needs households; and the review process is streamlined for multifamily housing projects. These programs include, Programs 1.A, 1.B, 1.C, 1.D, 1.G; 1.J, 1.K, 1.L, 1.M, 1.N, 1.O, 1.P, 1.Q; 1.S; 3.B, 3.C, 3.D, 3.E,

3.F, 3.G, 3.H, 3.I, 3.J, 3.K, see Chapter 2).

Median Household Income
According to the AFFH Data Viewer, the median household income in Sand City at the census tract level is less than $55,000 and coincides with a moderate rate of poverty ranging from 20 to 30 percent. The Data Viewer reports no geographic variation at the census level tract. However, 2021 ACS 5-year estimates report the median household income for Sand City at the place level is $60,682 and the level of poverty is 10.8 percent. Again, due to the extremely small population size of Sand City, and the AFFH Data Viewer use of census tract level data, the Data Viewer tool does not present an accurate report for Sand City.

Table C-26 reports the distribution of housing opportunity sites by income category according to median household income and poverty status. As shown in Table C-26, Sand City is anticipated to accommodate 117 lower-income, 56 moderate-income, and 332 above moderate-income 475
Appendix C – Vacant and Available Sites C-57 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 housing opportunity units. According to 2021 ACS 5-year estimates, all units will be located in areas with a low level of poverty (10.8 percent) and a median household income of approximately $60,682.

Table C-26 Site Inventory Unit Count by Median Household Income and Poverty Status, 2021
Income Group Poverty Level 10.8%
Median Household Income $60,682 Percent
Very Low-Income 71 14%
Low Income 46 9%
Moderate-Income 56 11%
Above Moderate-Income 332 66%
Total 505 100%
SOURCE: U.S. Census Bureau ACS 5-Year Estimate, 2021, Table S1701, Place level data; City of Sand City Figure C-18 and Figure C-19 illustrate the distribution of anticipated housing opportunity units at each income level according to median household income and poverty status, respectively. As shown in Figures C-18 and C-19, all anticipated housing opportunity units are located in the city’s West End and South of Tioga Districts, where the reported median income is approximately $60,682 and poverty levels are approximately 10.8 percent.

In the West End District, between Catalina and Shasta Street, there are sites anticipated to accommodate only above moderate-income units. This is a result of the many small lots located in this area, which render the development of affordable units unfeasible. Due to the abundance of small sites in the city, the City is currently undergoing a proforma to determine the financial feasibility of sites. The proforma results have not been finalized, but preliminary findings have informed the Sites Inventory. Also, within the West End District, between Contra Costa and Hickory Street, there are sites anticipated to accommodate lower and moderate-income units. Just north of California Avenue, in the South of Tioga District, all income categories are anticipated through the South of Tioga mixed-use development.

Between the West End and South of Tioga Districts, a mix of residential units are anticipated to accommodate both lower and above moderate-income households. Therefore, there is no isolation of the RHNA according to income group and location. The distribution of units is intended to prevent income based segregated living patterns, while also alleviating existing affordability pressures for lower-income households. Generally, increasing the housing supply in the city will provide increased opportunities for local employees to obtain housing in the city. 476
Appendix C – Vacant and Available Sites C-58 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure C-18 Sites Inventory Analysis by Median Income, 2021 SOURCE: HCD AFFH Data Viewer, census tract level data; City of Sand city 477
Appendix C – Vacant and Available Sites C-59 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure C-19 Sites Inventory Analysis by Poverty Status, 2021 SOURCE: HCD AFFH Data Viewer, census tract level data; City of Sand City 478
Appendix C – Vacant and Available Sites C-60 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 To prevent future segregated living patterns, the City identified housing opportunity sites within the West End and South of Tioga Districts that can accommodate a mix of housing types and affordability levels. Development is anticipated to occur through utilization of lot consolidation, high density mixed-use residential development, and the construction of duplexes/townhomes.

To facilitate the development of residential units, the City has committed to amending its Municipal Code to enable higher residential densities (enabling 81 dwelling units per acre in the MU-P Zone, Program 1.C, see Chapter 2); continues to work with non-profit developers to determine the feasibility of sites throughout the city; and identified city-owned sites for the development of affordable residential units.

Female-Headed Single-Parent Households
According to 2021 ACS data, female-headed households comprise 9.3 percent of all households in Sand City. Table C-27 reports the distribution of anticipated housing opportunity units at each income level according to the concentrations of single-parent families with a female-headed household. This data is reported at the place level using 2021 ACS 5-year estimates. As discussed in Appendix A – Housing Needs and Fair Housing Report, Sand City has a lower percentage of female-headed households than Monterey County and nearby jurisdictions.

As shown in Table C-27, Sand City is anticipated to accommodate 117 lower-income, 56 moderate-income, and 332 above moderate-income housing opportunity units. According to 2021 ACS 5-year estimates, all anticipated housing opportunity units will be located in moderate resource areas with a low level of poverty (10.8 percent); a median household income of approximately $60,682; and approximately 9.3 percent of households are female-headed.

Table C-27 Sites Inventory Unit Count by Female-Headed Households, 2021 Income Group Female-Headed Households 9.3% Percent
Very Low-Income 71 14%
Low Income 46 9%
Moderate-Income 56 11%
Above Moderate-Income 332 66%
Total 505 100%
SOURCE: U.S. Census Bureau ACS 5-Year Estimate, 2021, Table B11001, place level data; City of Sand City The City identified housing opportunity sites within the West End and South of Tioga Districts that can accommodate a mix of housing types and affordability levels. Development is anticipated to occur through utilization of lot consolidation, high density mixed-use residential development, and the construction of duplexes/townhomes. The distribution of lower-income 479
Appendix C – Vacant and Available Sites C-61 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 units throughout the city is intended to mitigate current and future concentrations of femaleheaded households. Additionally, increasing housing supply in the city is expected to mitigate the overpayment, housing scarcity, and displacement that lower-income persons and single-parent households are susceptible to. Increasing housing supply will be coupled with programs to incentivize the development of affordable housing for lower-income and special needs households (Programs 2.A, 2.C, 3.A, 3.B, 3.F, 3.G, see Chapter 2).

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

Population with a Disability
According to 2021 ACS data, approximately 11.6 percent of Sand City’s population live with at least one disability. Table C-28 shows the distribution of anticipated housing opportunity units at each income level according to the population with a disability.

According to the AFFH Data Viewer, the population living with a disability in Sand City at the census tract level ranges between 10 and 20 percent. The Data Viewer reports no geographic variation at the census level tract.

As shown in Table C-28, Sand City is anticipated to accommodate 117 lower-income, 56 moderate-income, and 332 above moderate-income housing opportunity units. According to 2021 ACS 5-year estimates, all anticipated housing opportunity units will be located in moderate resource areas with a low level of poverty (10.8 percent); a median household income of approximately $60,682; approximately 9.3 percent of households are female-headed; and approximately 11.6 percent of the population have a disability.

Table C-28 Sites Inventory Unit Count by Population with a Disability, 2021 Income Group Population with a Disability 11.6% Percent Very Low-Income 71 14%
Low Income 46 9%
Moderate-Income 56 11%
Above Moderate-Income 332 66%
Total 505 100%
SOURCE: U.S. Census Bureau ACS 5-Year Estimate, 2021, Table S1810, place level data; City of Sand City 480
Appendix C – Vacant and Available Sites C-62 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure C-20 illustrates the distribution of anticipated housing opportunity units at each income level according to the population with a disability. As shown in Figure C-20, all anticipated housing opportunity units are located in the City’s West End and South of Tioga Districts, where approximately 11.6 percent of the population has a disability.

Between the West End and South of Tioga Districts, a mix of residential units are anticipated to accommodate both lower and above moderate-income households. Therefore, there is no isolation of the RHNA according to income group and location. The distribution of units is intended to meet existing housing needs, while also mitigating concentrations of residents living with a disability. Increasing the supply of housing affordable to a range of income categories is expected to mitigate the overpayment, housing scarcity, and displacement that lower-income persons with disabilities are susceptible to.

To address barriers to obtaining accessible and affordable housing for residents/households living with a disability, the City has included Program 3.C, which commits the City to revising procedures for reasonable accommodation, as well as marketing the efforts of local nonprofit agencies that provide direct housing assistance to senior and disabled individuals (see Chapter 2).

Additionally, the City included Program 1.L, which establishes the adoption of a Universal Design ordinance to accommodate people living with a disability (see Chapter 2).

Potential Effect on Disproportionate Housing Needs & Displacement Risk
Overcrowding
Overcrowding is defined as a household with more than one occupant per room excluding bathrooms and kitchens. Units with more than 1.5 persons per room are considered severely overcrowded. Table C-29 shows the distribution of housing opportunity units at each income level according to overcrowding.

According to the AFFH Data Viewer, the percentage of overcrowded households in Sand City at the census tract level ranges between 5 to 10 percent. The Data Viewer reports no geographic variation at the census level tract. According to 2021 ACS 5-year estimates reported at the place level, approximately 8.7 percent of households in Sand City experience some level of overcrowded living conditions. As discussed in Appendix A – Housing Needs and Fair Housing Report, the level of overcrowding in Sand City is lower than Monterey County and neighboring Seaside.
481
Appendix C – Vacant and Available Sites C-63 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure C-20 Sites Inventory Analysis by Population with a Disability, 2021 SOURCE: HCD AFFH Data Viewer, census tract level data; City of Sand City 482
Appendix C – Vacant and Available Sites C-64 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Table C-29 Sites Inventory Unit Count by Overcrowding, 2021 Income Group Overcrowded Households 8.7% Percent
Very Low-Income 71 14%
Low Income 46 9%
Moderate-Income 56 11%
Above Moderate-Income 332 66%
Total 505 100%
SOURCE: U.S. Census Bureau ACS 5-Year Estimates, 2021, Table S2501, place level data; City of Sand City As shown in Table C-29, Sand City is anticipated to accommodate 117 lower-income, 56 moderate-income, and 332 above moderate-income housing opportunity units. According to 2021 ACS 5-year estimates, all anticipated housing opportunity units will be located in moderate resource areas where there is a low level of poverty (10.8 percent); a median household income of approximately $60,682; approximately 9.3 percent of households are female-headed; approximately 11.6 percent of the population have a disability; and approximately 8.7 percent of households experience overcrowding.

Figure C-21 illustrates the distribution of housing opportunity units at each income level according to overcrowding. As shown in Figure C-21, all anticipated housing opportunity units are located in the City’s West End and South of Tioga Districts, where approximately 8.7 percent of households experience overcrowding.

Between the West End and South of Tioga Districts, a mix of residential units are anticipated to accommodate both lower and above moderate-income households. Therefore, there is no isolation of the RHNA according to income group and location. The distribution of housing opportunity units is anticipated to reduce overcrowding by increasing housing supply in the city.

A total of 117 lower-income units are anticipated in Sand City to meet the existing need for affordable residential units and mitigate future concentrations of household overcrowding. The City has developed a suite of programs to facilitate the development of a variety of housing types for all income levels (Programs 1.K, 1.M, 3.B, 3.C, 3.D, 3.E, 3.F, 3.G, 3.J, 3.K, see Chapter 2). 483
Appendix C – Vacant and Available Sites C-65 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure C-21 Sites Inventory Analysis by Overcrowding, 2021 SOURCE: HCD AFFH Data Viewer, census tract level; City of Sand City 484
Appendix C – Vacant and Available Sites C-66 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Cost Burden & Displacement Risk
Cost burden is measured as households spending more than 30 percent of their gross income including utilities for housing. Consistent with the region, households throughout Sand City are overpaying for housing due to rapidly increasing market conditions that outpace wage increases.

According to the AFFH Data Viewer, the percentage of cost burdened households in Sand City at the census tract level ranges between 60 to 80 percent. The Data Viewer reports no geographic variation at the census level tract. According to 2021 ACS 5-year estimates reported at the place level, approximately 74.4 percent of renter households in Sand City are cost burdened. As discussed in Appendix A – Housing Needs and Fair Housing Report, Sand City has higher rates of renter cost burden than Monterey County and nearby jurisdictions.

Table C-30 shows the distribution of housing opportunity units at each income level according to the percentage of cost burdened renter households. As shown in Table C-30, Sand City is anticipated to accommodate 117 lower-income, 56 moderate-income, and 332 above moderateincome housing opportunity units. According to 2021 ACS 5-year estimates, all anticipated housing opportunity units will be located in moderate resource areas where there is a low level of poverty (10.8 percent); a median household income of approximately $60,682; approximately 9.3 percent of households are female-headed; approximately 11.6 percent of the population have a disability; approximately 8.7 percent of households experience overcrowding; and 74.4 percent of renter households experience cost burden.

Table C-30 Site Inventory Unit Count by Cost Burdened Renter Households, 2021 Income Group Cost Burdened Renter Households 74.4% Percent Very Low-Income 71 14%
Low Income 46 9%
Moderate-Income 56 11%
Above Moderate-Income 332 66%
Total 505 100%
SOURCE: U.S. Census Bureau, ACS 5-Year Estimates, 2021, Table DP04, place level data; City of Sand City Figure C-22 illustrates the distribution of housing opportunity units at each income level according to the percentage of cost burdened renter households. As shown in Figure C-22, all anticipated housing opportunity units are located in the City’s West End and South of Tioga Districts, where approximately 74.4 percent of renter households experience cost burden. 485
Appendix C – Vacant and Available Sites C-67 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Figure C-22 Sites Inventory Analysis by Cost Burdened Renter Households, 2021 SOURCE: HCD AFFH Data Viewer, census tract level data; City of Sand City 486
Appendix C – Vacant and Available Sites C-68 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Between the West End and South of Tioga Districts, a mix of residential units are anticipated to accommodate both lower and above moderate-income households. Therefore, there is no isolation of the RHNA according to income group and location. The distribution of housing units is intended to alleviate existing conditions of cost burden among renter households by increasing the supply of affordable housing in areas where it is needed most, while also acting as a mitigation measure against segregated living patterns based on income. The City intends the housing site inventory distribution to encourage a balanced environment for future housing development. To ensure that available land and underutilized sites maximize their development potential, the City is undergoing a proforma to determine the feasibility of identified sites in the city. The proforma has not been finalized, but preliminary findings have guided assumptions for sites identified in the Sites Inventory.

To address barriers to obtaining affordable housing for lower-income and special needs households, the City has developed a suite of programs to assist and support lower-income households through continued education of fair housing law and resources (Programs 3.A, 3.B,

3.C, 3.D, 3.E, 3.F, 3.G, 3.H, 3.I, 3.J, 3.K, 4.B, 4.C, 5.A, 5.B, see Chapter 2).

Summary of AFFH Analysis of Sites
Over the last two decades, the City has worked to reshape the land use and zoning designations that historically enabled the development of a predominantly industrial and commercial city. The City continues to work with developers to determine where affordable residential development is most feasible and how to maximize the limited available land. Efforts on behalf of the City also include analyzing the City’s Municipal Code to identify governmental constraints that may pose barriers to the development of affordable residential development.

Generally, Sand City is designated a moderate resource area with a moderate level of diversity, low levels of poverty, and predominantly comprised of non-Hispanic White households. There are no RCAAs or R/ECAPS in Sand City. The median household income is $60,682. Household overcrowding is 8.7 percent and cost burden among renter households is 74.4 percent. The percentage of residents living with a disability is 11.6 percent and female headed-households comprise a total of 9.3 percent of all households in Sand City.

The selected housing opportunity sites were determined to be the most developable for the eightyear planning cycle and include second phase development to provide high density affordable housing; city-owned sites intended for affordable artist housing; mission-based sites to provide transitional and supportive housing; and above-market rate housing on underutilized small lots that are inadequate to provide affordable housing.
487
Appendix C – Vacant and Available Sites C-69 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 The sites are distributed throughout the City’s West End and South of Tioga Districts, where current land use designations and zoning permit residential uses. The City has developed several plans over the last five years to support residential development in these districts including the 2019 Sand City Vibrancy Plan; 2021 Sand City Sustainable Transportation Plan; and the 2023 Sand City West End Parking Plan. Each of these plans have contributed to promoting the development of residential units in the City’s West End and South of Tioga Districts. Residential development within the districts is anticipated to mitigate segregated patterns of development and increase opportunities through the integration of housing units at all affordability levels.

Overall, Sand City’s small geographical nature has not enabled the concentration of or variation in unequal housing opportunity. Rather, the city’s historical past has lent itself to the development of industrial and commercial space, rather than residential development. In an effort to facilitate residential development that is inclusive and caters to the needs of Sand City residents, the City is prioritizing working with developers and non-profits to develop new affordable housing. The City is committed to the programs listed in Table C-31, to support a diversity of housing types.

Table C-31 Programmatic Actions Related to Projected Housing Types Housing Type Programmatic Action
Multi-family Residential
The City commits to continuing the development of the South of Tioga with multi-family residential, including affordable units.

Program 1.A Develop the “South of Tioga” area with
Multi-Family Residential
Density Bonus
The City commits to amending the Zoning Ordinance to align with new State Density Bonus Laws, of which the City is going beyond and increasing the density above current State law thresholds to encourage maximizing the use of property for residential units.

Program 1.B Amend the City’s Zoning Ordinance to
align with new State Density Bonus laws and
include 10 percent density bonus
Affordable Housing
The City commits to creating an overlay that supersedes requirements of underlying zoning districts within the West End. The City’s goal is to encourage the development of market-rate and affordable housing in multi-family, mixed-use, and planned unit development through the overlay with little discretionary review/requirements.

Program 1.C West End Housing Diversity Overlay
Higher Density
The City commits to setting minimum densities of 20 du/ac to encourage a higher multi-family unit yield and to allow housing development projects up to 85 feet by-right.

Program 1.D Minimum Density 20 Dwelling Units per
Acre for Selected Sites
SB 9
The City commits to codifying SB 9 regulations to facilitate new construction.

Program 1.I California Housing Opportunity and More
Efficiency (HOME) Act
SOURCE: City of Sand City
488
Appendix C – Vacant and Available Sites C-70 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 For in-depth details of the programs listed above and additional programs intended to facilitate the construction of housing, see Chapter 2 of the Housing Element.

C.7 Summary and Conclusions
Sand City is committed to the process of gaining a Prohousing designation from HCD, concurrent with the preparation and certification of its 6th Cycle Housing Element. Part of that effort includes an effort to maintain a housing sites inventory that enables capacity for at least a minimum of 150 percent of RHNA.

The vacant, underutilized sites, and pipeline projects identified in this report are sufficient to accommodate approximately 194 percent of the Sand City’s Regional Housing Needs Allocation for the 6th Cycle planning period. This “cushion” is highly recommended because of the state’s no net loss policy, which precludes jurisdictions from approving development that results in an overall housing site deficit. The “cushion” essentially provides a degree of flexibility for developers and policy makers as they make development decisions.

Several efforts and programs have been activated in support of greater housing production in Sand City. Leadership, staff (both contracted and direct hires) are motivated to encourage a range of affordable housing to be constructed within this next eight years. The public does not oppose this planned doubling of the population, and outreach efforts will continue to support local participation in determining how the community may evolve to become an inclusive home to many more individuals and families.
489
Review of Previous Housing Element D

APPENDIX
490
491
Table of Contents
APPENDIX D REVIEW OF PREVIOUS HOUSING ELEMENT ........................................ D-1 D.1 Introduction ........................................................................................................................... D-1 D.2 Effectiveness of the Element............................................................................................... D-1 D.3 Progress in Implementation ................................................................................................. D-4 D.4 Summary .............................................................................................................................. D-13 Tables
Table D-1 Overview of Adopted Programs ............................................................................ D-6 Table D-2 Housing Units Produced, 2015-2023................................................................... D-12 492
493
Appendix D – Review of Previous Housing Element D-1 EMC Planning Group Sand City 6th Cycle Housing Element HCD Revised Draft May 2024 Appendix D
Review of Previous Housing Element
D.1 Introduction
In order to effectively plan for the future, it is important to reflect back on the goals of the previous Housing Element and to identify those areas where progress was made and those areas where continued effort is needed. State Housing Element guidelines require communities to evaluate their previous Housing Element according to the following criteria:
 Effectiveness of the Element;
 Progress in Implementation; and
 Appropriateness in Goals, Objectives and Policies.

The City’s 5th Cycle Housing Element has conditional certification status. The areas HCD identified for further information, the East Dunes and the South of Tioga planning areas, are addressed below in more detail.

D.2 Effectiveness of the Element
The City’s 2015 Housing Element identified the following goals:
 Goal 4.1: Provide adequate sites with sufficient infrastructure as needed to meet the City's regional housing needs allocation;
 Goal 4.2: Support the development of affordable housing, especially housing for very low-, lowand moderate-income households;  Goal 4.3: Preserve existing housing units in neighborhoods appropriate for continued residential use;
 Goal 4.4: Support the development of housing for special needs households;  Goal 4.5: Ensure that all persons have equal access to housing opportunities; and  Goal 4.6: Promote energy and water conservation measures in both existing and new residential construction.
494
Appendix D – Review of Previous Housing Element D-2 EMC Planning Group Sand City 6th Cycle Housing Element HCD Revised Draft May 2024 In order to achieve these goals, the 2015 Housing Element listed a series of policies and actions. The policies covered a range of actions, including: development of mixed-use projects with high-density housing, including in the “South of Tioga” area; rezoning of the East Dunes Area for housing affordable to very low- and low-income households; granting sewer and water priority to affordable housing projects; identification of a sites suitable for an emergency homeless shelter; providing adequate sites to enable construction of new housing units, including units affordable to lowerincome households; and amending the City’s zoning code to comply with new State housing law regarding transitional and supportive housing, SROs, reasonable accommodations, and density bonus. The 2015 policies and programs complied with State Housing Law guidelines in effect at the time. Because the City’s conditional status focused on the programs related to the South of Tioga and East Dunes areas, both areas are discussed in more detail below.

Develop the “South of Tioga” Area with a Mixed-Use Project Program 4.1.1.A focused on consolidated in parcels and rezoning at least 3 acres to R-3, reserved for high density, multi-family housing with a density of up to 43 units per acre. To date, the area was rezoned MU-P Planned Mixed-Use, parcels were consolidated, and infrastructure improvements are underway.

Background
The South of Tioga project originated as a result of the Request for Qualifications (RFQ) put out by the former Sand City Redevelopment Agency (the “RDA”) where after that Redevelopment Agency in 2001 signed an Exclusive Negotiation Agreement (the “ENA”) with the Applicant to redevelop the South of Tioga Planning District to mitigate ongoing conditions of blight and provide economic stimulus for the City; and though the City’s RDA has since been dissolved by the State of California, the property acquisition by the Applicant and development strategies that commenced under the ENA had continued until submission of the Applicant’s land entitlement application packet to the City in 2017.

The project proponent acquired 39 of 41 parcels within the project area, which are to be merged to crate six new larger parcels (consistent with Sand City Housing Element Programs 4.1.1.A and

4.1.1.B). The merged parcels require the City to abandon multiple inadequate width street rights-ofway and realignment of one (1) existing road and creation of one (1) new road.

The two new residential parcels of the South of Tioga Project, established by project design, lot consolidation, and Vesting Tentative Map approval are Parcels R1 and R2. Parcel R1 consists of

1.78 acres approved for 125 dwelling units (a density of 70.2 du/ac). Parcel R2 consists of 3.70 acres, approved for 231 dwelling units (a density of 62.4 du/ac). These densities far exceed the maximum 43 dwelling units per acre allowed under the City’s R3 (high density residential) zoning.

The properties were subsequently rezoned to Mixed-Use zoning which allows exponentially increasing housing density bonuses for ever larger consolidated lots and building sites, maxing out at 81du/ac.
495
Appendix D – Review of Previous Housing Element D-3 EMC Planning Group Sand City 6th Cycle Housing Element HCD Revised Draft May 2024 Rezoned MU-P Planned Mixed-Use
Housing Element Program 4.1.1 states “Ensure that land is zoned at residential densities appropriate to meet the regional housing need.” Furthermore, Policy 4.1.1.A of that Program is titled “Develop the South of Tioga” area with a Mixed Use Project. This program targeted development of at least 200 dwelling units within South of Tioga. The recent vesting tentative map approval for the South of Tioga Area granted up to 356 dwelling units; which will include 52 affordable rental housing units secured under a deed restriction for 55-years (commencing upon issuance of a certificate of occupancy upon completion of construction) comprised of 9 Very-Low, 7 Low, 18 Moderate and 18 Workforce. These 52 affordable housing units exceed the 5th Cycle Housing Element’s (Program

4.1.1.A) required 16 units. This was accomplished through the increased unit density discretionarily allowed under the MU-P zoning. The R3 zoning would allow only 235 units and would not have fallen 121 units short of accomplishing the residential density of 356 total units, (all of which meet the default density of 20 units per acre, and 52 of which are deed-restricted affordable units).

Constraints Overcome
Development constraints in the South of Tioga area included the cost of extensive site demolition, replacement of all utility infrastructure in the area, and the establishment of land for habitat restoration/conservation to accommodate U.S. Fish and Wildlife and the California Department of Fish and Wildlife requirements. These constraints placed an extreme financial burden upon any developer that, in effect, severely limited the types of development economical viable for this area.

These constraints required higher residential density and a commercial component for this project to “pencil out”. Without economic viability for a developer, there would be no project, resulting in no housing or affordable units at all.

The mixed use zoning does not preclude a development from being 100 percent residential. A project may be 100 percent residential, 100 percent commercial, or any combination. The intent of the City’s mixed-use zoning is to create a “mixed-use” neighborhood/community, and is not focused on mixed use properties. This should satisfy Gov. Code 65583.2(h) in regards to “...a city or county may accommodate all of the very low and low-income housing need on sites designated for mixed uses if those sites allow 100 percent residential use, and require that residential use occupy 50 percent of the total floor area of a mixed-use project.” The mixed use zoning does allow “By right” transitional and supportive housing wherever any residential use has already been discretionarily allowed. Multi-family residential does require a conditional use permit; however, the allowable density is only limited by a project’s site area and ability to provide sufficient tenant parking. In the South of Tioga area, Parcel R2 will be 100% residential (with appurtenant uses such as parking and open space) with 231 units. Parcel R1 will be residential on all floors with 125 units; but may include a commercial rooftop restaurant.
496
Appendix D – Review of Previous Housing Element D-4 EMC Planning Group Sand City 6th Cycle Housing Element HCD Revised Draft May 2024 The timespan from initial application submittal to City Council action approving the vesting tentative map was 13 ½ months (April 20, 2017 to June 5, 2018), including preparation of an EIR.

This demonstrates the efficiency with which the City processes complicated development applications, ensuring that additional levels of non-discretionary approval do not unduly extend approval times or burden developers.

Outreach Ongoing
To date, demolition of the existing building has occurred and construction of infrastructure, streets, sewers, sidewalks is underway. The City and contracted planning staff area actively working with the current property owner and reaching out to residential developers, including those that focus on affordable housing. Additionally, the 6th Cycle Housing Element includes a program to reconsider the existing Development Agreement to increase the number of units in order to make the project financially viable.

Rezone Acreage in East Dunes Areas
Program 4.1.1.c Rezone Acreage in East Dunes Area focused on assisting a master developer to process and rezone 15 acres in the East Dunes Area. The aim of the rezoning was to require development of up to at least 20 units per acre with a minimum of 16 units per site for affordable housing for Very Low- and Low-Income residents.

The City rezoned the East Dunes area from C-2 and C-3 to R-3 residential during the 5th Cycle period; however, this area’s constraints, similar to the South of Tioga area include fragmented ownership, lack of infrastructure and the presence of environmentally sensitive habitat. The City learned many lessons from the South of Tioga area and is taking a pragmatic and measured approach to development in this area.

Habitat Management Plan
In order to facilitate development of this area, portions of which contain environmentally sensitive habitat that must be considered and addressed, the 6th Cycle Housing Element includes a program to initiate a Habitat Management Plan to address current regulatory requirements that are lengthy and complex.

D.3 Progress in Implementation
To assess the City’s progress in implementing the 2015 Housing Element, the following key areas were reviewed:
 Adopted Programs;
 Production of Housing;
497
Appendix D – Review of Previous Housing Element D-5 EMC Planning Group Sand City 6th Cycle Housing Element HCD Revised Draft May 2024  Preservation of “At Risk” Units; and
 Rehabilitation of Existing Units.

Each of these areas is discussed in detail below.

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

Production of Housing
The 2015 Housing Element identified a Regional Housing Needs Allocation of 55 housing units in Sand City between January 1, 2015 and June 30, 2023. The RHNA was divided into the following income categories:
 13 units affordable to extremely low- and very low-income households;  9 units affordable to low-income households;
 10 units affordable to moderate-income households; and  23 units affordable to above moderate-income households. 498
Appendix D – Review of Previous Housing Element D-6 EMC Planning Group Sand City 6th Cycle Housing Element HCD Revised Draft May 2024 Table D-1 Overview of Adopted Programs
Program
Number
Programs/Actions
[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element]
Achievements/Effectiveness
Continue/
Modify/
Delete
Goal 4.1: Provide Adequate Sites with Sufficient Infrastructure as Needed to Meet the City's Regional Housing Needs Allocation Program 4.1.1.A
Develop the “South of Tioga” Area with a Mixed-Use Project Consolidate parcels and rezone at least 3 acres to R-3, reserved for high density, multi-family housing with a density of up to 43 units per acre
The South of Tioga area was rezoned to mixed-use, MU-P, not R3, and allows mixed-use multi-family development at increased densities. Parcels were also assembled and consolidated to facilitate multi-family development with an affordable unit component. Planning entitlements are complete with the exception of design review. Gaining entitlements was complex, given parcel assembly and the presence of environmentally sensitive species and involved many outside agencies, The owner is actively seeking a housing developer to construct over 350 new predominantly multi-family housing units. A conditional use permit and associated design review is required once a housing developer is secured. City staff time was dedicated to this complicated project over the course of the 5th Cycle and construction is anticipated during the 6th Cycle. The site is currently in the process of being graded and site improvements are under construction.

Modify
Program 4.1.1.B
Mixed-Use and Planned Unit Development
Monitor the production of units in mixed-use and planned unit development areas; reduce on-site property standards
In 2017, the City amended mixed-use zoning to allow for greater densities for larger sites and higher building heights if criteria are met (i.e., must obtain airport district approval; must be on top of parking structure). Development is discretionary to City Council. The South of Tioga project was the first major development project to benefit from these modifications.

In order to encourage more redevelopment in the MU-P zoning district the densities will be increased.

Modify
Program 4.1.1.C
Rezone Acreage in East Dunes Area
Assist a master developer in processing the rezoning of 15 acres in the East Dunes area; rezoning of this area will require development up to at least 20 units per acre with a minimum of 16 units per site for affordable housing for very low- and lowincome residents.

The City rezoned the East Dunes area from C-2 and C-3 to R-3 residential. In order to further develop this area, portions of which contain environmentally sensitive habitat that must be considered and addressed, the City will initiate a Habitat Management Plan to address current regulatory requirements that are lengthy and complex.

Delete; modified to
develop Habitat
Management Plan
499
Appendix D – Review of Previous Housing Element D-7 EMC Planning Group Sand City 6th Cycle Housing Element HCD Revised Draft May 2024 Program
Number
Programs/Actions
[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element]
Achievements/Effectiveness
Continue/
Modify/
Delete
Program 4.1.2.A
Capital Improvements Program
Continue to implement its Master Facilities Plan and continue budgeting revenues into the capital improvement budget to improve streets, sidewalks, drainage, and water lines within the West End area
A draft CIP update was presented to City Council in January 2023. The City is currently working on multiple projects for the improvement of street sidewalks and drainage. Grants have been secured for capital improvements for Contra Costa Street and Catalina Street including, stormwater improvements, integrated sidewalks, intersection crosswalks (ADA improvements included), landscaping, and impervious pavements ($1.2M & $900+K). The aforementioned improvement areas will benefit residents of the Catalina Lofts Project and East Dunes area.

Continue
Program 4.1.3.A
Adequate Land Inventory
Continue to provide an inventory of land at appropriate zoning designations that will accommodate the Regional Housing Need.

The City has maintained and continues to maintain an inventory of available land for housing. Continue
Program 4.1.3.B
Second Dwelling Unit Program
Revise standards in the R-2 and R-3 zone to permit
manufactured homes equally with single family homes
The City has amended the R-2 and R-3 zoning district standards three (3) times to promote this program. In order to further promote ADU and JADU development the City will modify the program to better promote the ADU program and will refer low income property owners to Habitat for Humanity Monterey Bay’s ADU financing program for low income households.

Modify to integrate
State ADU laws and
JADU Program.

Program 4.1.3.C
Small Lots/Sites and Mixed-Use Program
Facilitate lot consolidations; offer the following incentives:

Allow affordable projects to exceed the maximum height limits; Reduce setbacks;
Reduce parking requirements;
Prohibiting water and sewer providers from denying service; and Offsetting fees and fast-tracking of project application reviews.

One of the issues impeding multi-family development is the preponderance of small lots in the which reflect the City’s light industrial history. The City’s 2017 zoning amendment to allow Mixed-Use zoning has encouraged lot consolidations. The South of Tioga project has taken advantage of the zoning changes, of which half of all lots were acquired and consolidated by the developer during 5th Cycle. The City will continue to facilitate lot consolidation in an effort to create lots between 0.5 and 10 acres which is considered by HCD an optimum parcel size for developments with affordable units.

Continue
Program 4.1.3.D
Consistency with Employee Housing Act
Update the Zoning Code to be consistent with the Employee Housing Act, which requires employee housing to be permitted by-right, in single-family zones for six persons or fewer, and in all zones that allow agricultural uses with no more than 12 units or 36 beds.

The City adopted Ordinance 16-05 and complies with the Employee Housing Act. Delete
500
Appendix D – Review of Previous Housing Element D-8 EMC Planning Group Sand City 6th Cycle Housing Element HCD Revised Draft May 2024 Program
Number
Programs/Actions
[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element]
Achievements/Effectiveness
Continue/
Modify/
Delete
Goal 4.2: Support the Development of Affordable Housing, Especially Housing for Very Low-, Low- and Moderate-Income Households Program 4.2.1.A Water and Sewer Providers
Grant water and sewer priority to affordable housing projects The City partners with the Seaside County Sanitation District for sewer management and Monterey One Water for permitting and fee collection. Sand City is one of the few cities on the Monterey Peninsula that has available water to allocate to new housing units. The allocation of water from the City’s Desal Facility is discretionary by City Council and the City will develop a water policy to guide allocations with a priority for affordable housing units.

No housing projects have been denied water since the Desal project began in 2011.

Continue
Program 4.2.2.A
State and Federal Housing Programs and Funding
Assess the possibility of implementing a Community
Revitalization Authority
The City currently has a CDBG grant for upgrading Calabrese East Park to improve ADA accessibility features and a PLHA grant to acquire and rehabilitate affordable rental housing. The City’s HOME funds are not active due to lack of residential interest. The City has worked with the County to get property owners access to solar. The City will modify the program to affirmatively market and increase participation, particularly with HOME funds.

Modify to increase
program participation.

Goal 4.3: Preserve Existing Housing Units in Neighborhoods Appropriate for Continued Residential Use Program 4.3.1.A
Conservation of Existing Units
Provide written marketing information describing the resources available to community groups and organizations that represent lower-income households
The City has not provided online marketing information to date due to resource constraints. However, this information is addressed through the City’s municipal code and through Code Enforcement measures which take an education first approach. In order to increase outreach the program will be modified to include efforts and resources to provide materials proactively outside a Code Enforcement environment.

Modify
Program 4.3.2.A
Housing Conservation and Preservation Program
Direct public funding resources to the conservation of existing housing units where continued residential use is appropriate. The City will provide written marking information describing resources available to community groups and organizations that represent lower-income households.

The City’s outreach to date was limited due to resource and staffing constraints. In order to more proactively reach low-income households that would benefit from repair and/or rehabilitation the program will be modified to preparing materials to distribute to community groups and organizations, including the Salvation Army Day Center, that represent lower-income households. The City was recently awarded a Permanent Local Housing Allocation Program grant to be used for acquisition and rehabilitation of affordable units and the City will affirmatively market the program.

Modify
501
Appendix D – Review of Previous Housing Element D-9 EMC Planning Group Sand City 6th Cycle Housing Element HCD Revised Draft May 2024 Program
Number
Programs/Actions
[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element]
Achievements/Effectiveness
Continue/
Modify/
Delete
Goal 4.4: Support the Development of Housing for Special Needs Households Program 4.4.1.A
Support the County of Monterey’s Homeless Continuum of
Care Plan
Support housing opportunities for homeless individuals and families
The, City’s Public Facilities zoning code language has been updated to address building and/or providing housing for homeless persons. The program will be improved by including information on the City’s housing web page with links to County programs and contacts; distributing flyers at local events; and supporting and partnering with the Salvation Army Day Center.

Modify
Program 4.4.1.B
Homeless: Support for Day Facility
Support the provision of services at the day facility for homeless individuals
The Salvation Army Day Center continues to operate under a conditional use permit and owns the property. This facility provides support for between 70- 100 homeless and at-risk families daily. Presently, the City does not conduct an annual review on conditional use permits unless a complaint is reported (i.e., conditional use permit does not allow overnight sleeping, but does allow the provision of office support, laundry facilities, mailing services, vaccinations, etc.) The property owner has indicated a desire to build transitional housing to supplement the day center facility. The City will initiate a zoning code amendment to allow additional related activities to support skills development and basic needs as well as allowing transitional housing.

Modify
Program 4.4.1.C
Elderly and Disabled: Support and Marketing of Countywide Programs
Support and market the efforts of local nonprofit agencies that provide direct housing assistance to elderly and disabled individuals
The city will continue to support County programs that direct housing assistance to senior and disabled residents. In order to increase outreach the City will engage in a wider variety of outreach efforts. Additionally, the City will prioritize pro-housing developments that include units for seniors and disabled residents.

Modify
Program 4.4.1.D
Remove Constraints to Housing Development and
Encourage Accessible Housing for Persons with Disabilities Remove constraints for disabled persons seeking reasonable accommodations for accessible housing
The number of accessible housing units constructed was limited. In order to facilitate the construction of accessible units, the City is working to incorporate an Objective Design Standards program in tandem with a Universal Design amendment to the City’s Building Code. the city continues to have the lowest fees on the Monterey Peninsula, minimizes public hearing continuance, and implemented a Sustainable Transportation Plan that addresses ADA accessibility within the City.

Modify.

Program 4.4.1.E
Identify Methods to Support Homeless Services and
Shelters
[no action identified by the program]
The City amended the Public Facilities (non-coastal only) Zoning District to allow for a homeless shelter as a permitted use. Since 1989, the City has been a member of a Service Agreement with Community Human Services (CHS). CHS provides mental health, substance abuse and homeless services Modify to allow
additional areas such
as parking lot near
City Hall or Desal
502
Appendix D – Review of Previous Housing Element D-10 EMC Planning Group Sand City 6th Cycle Housing Element HCD Revised Draft May 2024 Program
Number
Programs/Actions
[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element]
Achievements/Effectiveness
Continue/
Modify/
Delete
to Monterey County residents. Additionally, the City donates funds annually to the Salvation Army Day Center. The City includes a line item for donations in the Annual Budget.

Plant; propose new
program to amend
zoning
Program 4.4.1.F
Ensure the Availability of Appropriate Sites for Emergency Shelters per Senate Bill 2
Reserve enough land so that an emergency shelter large enough to meet the City’s need (15 beds) can be constructed at the desalination plant site; outside the Coastal Zone, the City will rezone the remainder of the water treatment plant parcel to CZ-PF to provide more area for emergency shelter facilities.

The City amended the Public Facilities (non-coastal only) Zoning District to allow for a homeless shelter as a permitted use. The existing Salvation Army Day Center includes case workers that among other services including providing rent relief funds and funds for utilities and transportation, also refers clients to their emergency shelter and transitional housing facility in the adjacent City of Seaside. The City will continue to support this facility. In the event of an emergency the Day Center has functioned as an emergency shelter during times of urgent need.

Continue
Program 4.4.1.G
Amend the City’s Zoning Ordinance to Comply with
Statutory Requirements for Transitional and Supportive
Housing
Update Zoning Ordinance to include definitions of transitional and supportive housing; allow both housing types as a permitted use subject to the same restrictions on other residential uses contained in the same type of structure
The City incorporated transitional supportive housing in 2016, which is considered a permitted use for mixed-use and residential zones. Ordinance 16-05
Delete
Program 4.4.1.H
Amend the City’s Zoning Ordinance to Comply with
Statutory Requirements for Single-Room Occupancy
Residences
Update Zoning Ordinance to allow SROs by conditional use permit in an overlay district in the West End district; prioritize funding and/or offer financial incentives or regulatory concessions to encourage the development of SROs
The City adopted Single-Room Occupancies as a conditional use in 2016. Delete Program 4.4.1.I
Develop a Reasonable Accommodation Process for Persons
with Disabilities
Develop and formalize a general process and specific guidelines for reasonable accommodation of persons with physical and developmental disabilities; make information available through postings and pamphlets at the City’s planning counter and on the City’s website
The City has a formalized process for accommodation of persons with disabilities per S.18.78.060. In an effort to better reach residents that may not be aware of the process, the City will enhance outreach efforts by and affirmatively marketing to people with disabilities.

Modify to include
additional outreach
methods.
503
Appendix D – Review of Previous Housing Element D-11 EMC Planning Group Sand City 6th Cycle Housing Element HCD Revised Draft May 2024 Program
Number
Programs/Actions
[The text provided in this column is a synopsis only; for complete program language please refer to the 2015 Housing Element]
Achievements/Effectiveness
Continue/
Modify/
Delete
Program 4.4.1.J
Amend the City’s Zoning Ordinance to Accommodate for the City’s Homeless Shelter and Supportive Housing Needs
Amend the Zoning Ordinance to remove the 2-bed limit in the Public Facilities zoning district to accommodate for more homeless persons in emergency shelters; add definition of supportive housing and allow supportive housing by-right.

The City amended the Zoning Ordinance to remove 2-bed limit in the Public Facilities Zoning District, added the definition of supportive housing and enabled the use to be By Right. Ordinance 16-05.

Delete
Program 4.4.1.K
Amend the City’s Zoning Ordinance to Increase the City’s Density Bonus/Incentive
Amend Density Bonus section 18.59 of the Zoning Ordinance to comply with AB 2222
The City amended the Zoning Ordinance in 2016 to comply with AB 1866 and AB 2222. Ordinance 16-05. The City will amend the ordinances to reflect current state law.

Modify.

Goal 4.5: Ensure That All Persons Have Equal Access to Housing Opportunities Program 4.5.1.A
Fair Housing Services and Information
Support and promote the services of organizations that provide fair housing programs; market the availability of services through written material available at City Hall and on the City’s website The City continues to market Fair Housing Services and provide information.

The City will enhance outreach efforts by including posting locations; online presence improvement by City Clerk; working with local nonprofits like the Salvation Army; staff booths at City events and issue a Council proclamation at a public Council meeting.

Modify
Goal 4.6: Promote Energy and Water Conservation Measures in Both Existing and New Residential Construction Program 4.6.1.A
Energy Conservation Opportunities
Enforce Title 24 and California Green Building Standards Code and evaluate utilizing the following:
• California Multi-Family New Homes
• Energy Efficiency for Multi-Family Properties
• New Solar Home Partnership
• Home Energy Renovation Opportunity Program
The City adopted the 2022 California Building Code and new construction reflects the highest energy standards available to date. The City will continue to promote optimum lot and building configuration for the use of solar energy systems.

Continue - Update per
new program
availability
Program 4.6.1.B
Support Solar Energy Opportunities Through Design Review Use the design review process to promote optimum lot and building configuration for solar orientation and use of solar energy systems
The City continues to promote solar orientation and use of solar energy during the design review process Modify
SOURCE: City of Sand City
504
Appendix D – Review of Previous Housing Element D-12 EMC Planning Group Sand City 6th Cycle Housing Element HCD Revised Draft May 2024 Table D-2, Housing Units Produced, 2015-2023 provides a summary of housing units produced in the City from 2015-2023. During the 2015–2023 planning period, seven (7) new units were added to the City’s housing stock, achieving approximately 13 percent of the City’s RHNA. This indicates that residential growth was slower than anticipated, which may be in part due to the COVID pandemic, the cost of land, small lot pattern, predominance of light industrial and retail uses, an unclear planning permitting process and the overall lack of interest for new housing development in Sand City amongst the development community. All units produced were affordable to households with above-moderate incomes.

Table D-2 Housing Units Produced, 2015-2023
Affordability New Construction Need Housing Units Produced Percent Achieved Very Low 13 0 0.0%
Low 9 0 0.0%
Moderate 10 0 10.0%
Above Moderate 23 7 30.4%
Total 55 7 13.0%
SOURCE: HCD Annual Progress Report Dashboard (as of November 1, 2022).

Preservation of “At Risk” Units
According to the 2015 Housing Element, there was no affordable project at risk of converting to market rate within the eight-year planning period (2015–2023). Appendix A identifies various options that are available to the City to preserve units and the City will continue to focus efforts on building more affordable units and promoting the use of Housing Choice Vouchers to address preservation of “at risk” units.

Rehabilitation of Existing Units
The 2015 Housing Element identified an objective of rehabilitating a total of 10 units in the 2015– 2023 planning period. HCD’s Annual Progress Report Dashboard reported no rehabilitated units in Sand City for the period 2018 through 2021; however, the City issued building permits for electrical, plumbing and reroof maintenance items during this period. 505
Appendix D – Review of Previous Housing Element D-13 EMC Planning Group Sand City 6th Cycle Housing Element HCD Revised Draft May 2024 D.4 Summary
Like many communities, the City of Sand City experienced less development than expected in its 2015–2023 planning period. Of the 55 units it identified in the City’s Regional Housing Needs Allocation, the City permitted seven (7) units (approximately 13 percent), all of them for above moderate-income households; however, the City was diligently pursing planning entitlements in the complex South of Tioga planning area during this time which will enable the development of over 350 housing units during the Housing Element 6th Cycle. This area was rezoned to MU-P which includes a local density bonus, many smaller parcels were consolidated over time and permits with outside regulatory agencies related to environmentally sensitive habitat took more time than anticipated to obtain; however, this area is poised to develop in the 6th Cycle.

The City is quite small size and has limited staffing capacity which also played a role in the lack of new units constructed during this planning cycle. The City has hired a consulting firm to increase staff and planning permit entitlement capacity.

Additionally, the City has not historically been associated with residential uses or neighborhoods and the City’s small lot light industrial development pattern combined with environmentally sensitive habitat made attracting residential development challenging.

The goals, objectives, and policies identified in the 2015 Housing Element were appropriate for the 2015-2023 timeframe because they complied with the program requirements mandated by State law at the time. Nonetheless, a great deal has changed in the intervening years, including attention from the Office of the Governor of California. The 6th Cycle Housing Element will be revised to address new state mandates and to position Sand City to meets its housing obligations. 506
Appendix D – Review of Previous Housing Element D-14 EMC Planning Group Sand City 6th Cycle Housing Element HCD Revised Draft May 2024 This side intentionally left blank.
507
Outreach and Public Participation E

APPENDIX
508
509
Table of Contents
APPENDIX E OUTREACH AND PUBLIC PARTICIPATION............................................. E-1 E.1 Introduction ........................................................................................................................... E-1 E.2 List of Contacted Organizations ......................................................................................... E-1 E.3 City Contact List.................................................................................................................... E-4 E.4 Tribal Consultation ................................................................................................................ E-4 E.5 Additional Outreach .............................................................................................................. E-7 E.6 Property Owner Interest Forms.......................................................................................... E-7 Attachment
Attachment A Property Owner Interest Forms
510
511
Appendix E – Outreach and Public Participation E-1 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Appendix E
Outreach and Public Participation
E.1 Introduction
This appendix provides the names of organizations, tribal units, and other stakeholders that were contacted during the preparation of Sand City’s 6th Cycle Housing Element. In addition to these contacts, the City created a dedicated housing element update webpage which can be found at http://www.sandcity.org/government/city-departments/planning-department/6th-cycle-housingelement-update. This website provides a portal to all of the housing-element-related public engagement activities that were available to members of the public during the update process. This includes information on housing element basics, site surveys, an SB-9 survey, and materials from community workshops.

E.2 List of Contacted Organizations
This section provides contact information for organizations and agencies in the Monterey Bay Area that were contacted during housing element preparation.

Organizations and Agencies
 Association of Monterey Bay Area Governments
2458- Silver Cloud Court
Monterey, CA 93940
[email protected]
(831) 883-3750
 Housing Authority of the County of Monterey
123 Rico Street
Salinas, CA 93907
(831) 775-5000
 Monterey County Department of Social Services
1000 South Main Street
Salinas, CA 93901
(831) 755-4448
512
Appendix E – Outreach and Public Participation E-2 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024  Catholic Charities Dioceses of Monterey
922 Hilby Avenue, Suite C.

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

 ECHO Fair Housing Services
580 Pacific Street
Monterey, CA 93940
(831) 566-0824
https://www.echofairhousing.org/fair-housing-services.html 513
Appendix E – Outreach and Public Participation E-3 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024  Central Coast Center for Independent Living
318 Cayuga Street
Suite 208
Salinas, CA 93901
(831) 757-2968
https://www.cccil.org/
 Center for Community Advocacy
22 West Gabilan Street
Salinas, CA 93901
(831) 753-2324
https://cca-viva.org/
 The Salvation Army Good Samaritan Day Center
800 Scott St.

Sand City, California 93955; and
Transitional Housing Center
1491 Contra Costa
Seaside, California 93955
(831) 899-4911
https://montereypeninsula.salvationarmy.org/
 Hope Services
1144 Fremont Blvd.,
Suite D
Seaside, CA 93955
(831) 393-1575
https://www.hopeservices.org/
 Coalition of Homeless Service Providers
1942 Fremont Boulevard
Seaside, CA 93955
(831) 883-3080
https://chsp.org/
 Monterey County Stand Down for Homeless Veterans
https://www.montereystanddown.org/
514
Appendix E – Outreach and Public Participation E-4 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024  Diocese of Monterey
425 Church Street
Monterey, CA 93940
(831) 373-4345
https://dioceseofmonterey.org/
E.3 City Contact List
This section provides contact information for City officials that were contacted during housing element preparation.

Elected and Appointed Officials
City Council
 Mary Ann Carbone, Mayor;
 Jerry Blackwelder, Vice Mayor;
 Marilee Diaz, Councilmember;
 Gregory Hawthorne, Councilmember; and
 Elizabeth Sofer.

City Staff
 Vibeke Norgaard, City Manager;
 Zane Mortenson, Interim City Planner;
 Kerry Lindstrom, City Clerk;
 Mark Parker, Public Works Supervisor; and
 Leon Gomez, City Engineer.

E.4 Tribal Consultation
This section provides contact information for tribal consultation that were contacted during housing element preparation.
 Amah Mutsun Tribal Band
Valentin Lopez, Chairperson
P.O. Box 5272 Galt, CA, 95632
Phone: (916) 743-5833
[email protected]
515
Appendix E – Outreach and Public Participation E-5 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024  Amah Mutsun Tribal Band of Mission San Juan Bautista
Irenne Zwierlein, Chairperson
789 Canada Road Woodside, CA, 94062
Phone: (650) 851-7489
Fax: (650) 332-1526
[email protected]
 Costanoan Rumsen Carmel Tribe
Tony Cerda, Chairperson
244 E. 1st Street
Pomona, CA 91766
Phone: (909) 629-6081
[email protected]
 Esselen Tribe of Monterey County
Tom Little Bear Nason, Chairman
P.O. Box 95
Carmel Valley, CA 93924
Phone: (831) 659-2153
[email protected]
 Esselen Tribe of Monterey County
Susan Morley, Cultural Resources
3059 Bostick Avenue
Marina, CA 93933
Phone: (831) 262-2300
[email protected]
 Indian Canyon Mutsun Band of Costanoan
Ann Marie Sayers, Chairperson
P.O. Box 28 Hollister, CA, 95024
Phone: (831) 637-4238
[email protected]
 Indian Canyon Mutsun Band of Costanoan
Kanyon Sayers-Roods, MLD
1615 Pearson Court
San Jose, CA 95122
516
Appendix E – Outreach and Public Participation E-6 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Phone (408) 673-0626
[email protected]
 Ohlone/Costanoan-Esselen Nation
Louise Miranda-Ramirez, Chairperson
P.O. Box 1301
Monterey, CA 93942
Phone (408) 629-5189
[email protected]
 Ohlone/ Costanoan-Esselen Nation
Christanne Arias, Vice Chairperson
519 Viejo Gabriel
Soledad, CA 93960
Phone (831) 235-4590
 Wuksache Indian Tribe. Eshom Valley Band
Kenneth Woodrow, Chairperson
1179 Rock Haven Ct.

Salinas, CA 93906
Phone (831) 443-9702
[email protected]
 Kakoon Ta Ruk Band of Ohlone-Costanoan Indians of the Big Sur Rancheria Isaac Bojorquez, Chairman
P.O. Box 8355
Woodland, CA 95776
Phone (916) 572-8036
[email protected]
 Rumsen Am:a Tur:ataj Ohlone
Dee Dee Ybarra, Chairperson
14671 Farmington Street
Hesperia, CA 92345
Phone (760) 403-1756
[email protected]
517
Appendix E – Outreach and Public Participation E-7 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 E.5 Additional Outreach  Website: “https://www.sandcity.org/government/city-departments/planningdepartment/2023-2031-housing-element-update-2-0”. The website includes frequently asked questions, a link to the stakeholder survey, and the public review draft. Information continues to be posted on this website;
 February 21, 2023 – City Council Meeting to provide an introduction to the 6th Cycle Housing Element process;
 May 5, 2023 – The Public Review Draft was posted to the Housing Element website for a 30- day public review and comment period;
 May 5, 2023 – Public Outreach event at the Night Market in Sand City, with an emphasis on informing community members about the Public Review Draft and 30-day public review and comment period and gathering a stakeholder list;
 May 16, 2023 – City Council Meeting to discuss Public Review Draft and accept verbal comments;
 June 14, 2023 and August 17, 2023 – Stakeholder Outreach with Major John Bennet of the Salvation Army Day Center to discuss transitional housing in Sand City;  August 4, 2023 – Email sent to stakeholders to encourage them to take the stakeholder survey;  August 15, 2023 – City Council Hearing to receive guidance on the HCD Initial Draft;  August 25-26, 2023 – Public outreach event at the West End Celebration in Sand City, with an emphasis on collecting stakeholder surveys gathering a stakeholder list; and  February 8, 2024 – Design Review Committee Meeting announcement of the seven-day public review period for the Revised Draft Housing Element.

E.6 Property Owner Interest Forms
The following property owner interest letters were received via email just after the 30-day public comment period. The full letters are attached under Attachment A.

1. Major John Bennett, letter dated June 21, 2023;

2. Christopher Barlow, property owner interest form submitted May 30, 2023; and

3. PK Diffenbaugh, letter dated June 27, 2023.
518
Appendix E – Outreach and Public Participation E-8 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 This side intentionally left blank.
519
Property Owner Interest Forms A

ATTACHMENT
520
521
522
8/30/23, 9:33 AM Property Owner Interest Form: Sand City Housing Element Update https://docs.google.com/forms/d/1ORlcyKB9fxWeJD-H7ha4tvmX2ZBYpSvQkg7duQdP8mo/edit#responses 1/5 Property Owner Interest Form: Sand City
Housing Element Update
Please scroll down to fill out the form.
523
8/30/23, 9:33 AM Property Owner Interest Form: Sand City Housing Element Update https://docs.google.com/forms/d/1ORlcyKB9fxWeJD-H7ha4tvmX2ZBYpSvQkg7duQdP8mo/edit#responses 2/5 Introduction and Purpose
Sand City is preparing the 6th Cycle Housing Element update and wants to hear from property owners who may be interested in future housing development.  For most residential property owners, this could be adding an Accessory Dwelling Unit (ADU) or Junior ADU. For commercial property owners, this could range from converting underutilized space to new housing units to construction of a new building.

The information you provide here is not meant to be a formal commitment, but an opportunity to express potential interest. The City may contact you for further information. As you fill out the form below, please read the questions carefully as well as the descriptions below the question. Some of the questions are more technical in nature, and you are welcome to respond with "unsure" to any of these questions.

I received a letter from the City and I would like to OPT OUT of this process. I do not want my property to be considered for future housing development.

I received a letter from the City and I would like to OPT IN to this process. I am interested in future housing development on my property.

I received a letter from the City and I am unsure if I'd like to participate in this process. I would like more information.

Other:

Basic Information about your Property
Please fill out this section only if you are interested in exploring opportunities to add housing units to your site.

If you received a letter from the City and would like to "opt out" of the process, you may skip this section and submit the form.

If you received a letter from the City about your property, please let us know whether you'd like to opt out of this process if you do not want to consider development of your property in the near future.

If you did not receive a letter from the City about your property, you can skip this question and click "Next". 524
8/30/23, 9:33 AM Property Owner Interest Form: Sand City Housing Element Update https://docs.google.com/forms/d/1ORlcyKB9fxWeJD-H7ha4tvmX2ZBYpSvQkg7duQdP8mo/edit#responses 3/5 Property Owner contact information. *
Full name and preferred method of contact (email address or phone number).

Property Representative contact information.

If different than above, provide the representative's full name and preferred method of contact (email address or phone number).

Property Location and Assessor Parcel Number (APN), if known. * 600 Ortiz Avenue, Sand City CA
Property Size (acres or square feet), if known.

2.5 acres
525
8/30/23, 9:33 AM Property Owner Interest Form: Sand City Housing Element Update https://docs.google.com/forms/d/1ORlcyKB9fxWeJD-H7ha4tvmX2ZBYpSvQkg7duQdP8mo/edit#responses 4/5 Lot split through the SB 9 process
Accessory Dwelling Unit (ADU)
Junior Accessory Dwelling Unit (JADU)
Single Family Home
Duplex, Triplex, or Fourplex
Multi-Family Housing (5+ units)
Unsure
Other:
at least ten (10) additional housing units
Yes
No
Not sure

1. What type of housing would you like to develop? *
Please check all that apply.

2. How many (additional) housing units would you like to develop on this property? *

3. Did you purchase Malpaso Water with plans to construct new housing? * 526
8/30/23, 9:33 AM Property Owner Interest Form: Sand City Housing Element Update https://docs.google.com/forms/d/1ORlcyKB9fxWeJD-H7ha4tvmX2ZBYpSvQkg7duQdP8mo/edit#responses 5/5 Yes
No
Maybe
Unsure
Other:

Vacant
Single Family Home
Multi-Family Units
Commercial
Office
Unsure
Other:

Click the "Submit" button below to complete the form.

This content is neither created nor endorsed by Google.

4. Do you believe a rezone is necessary to construct the number of housing units you'd like to develop on this property?
*

5. What existing development is present on the property (check all that apply)? * Forms 527

Monterey Peninsula Unified School District
PK Diffenbaugh, Superintendent
700 Pacific Street, Monterey, CA 93940
Phone: 831.645.1204 Fax: 831.649.4175
June 27, 2023
Re: Housing element program for ministerial permitting of employersponsored housing Dear Planning Director:

The Monterey Peninsula Unified School District (MPUSD) depends on highly qualified and diverse staff in order to meet our educational mission. One of the key constraints to attracting and retaining staff is Monterey County’s critical housing shortage and high cost of living. In order to be a proactive part of the solution to our housing crisis, MPUSD is interested in building housing for our employees on underutilized District owned property. I write to propose a program to make production of employer-sponsored housing more feasible on District owned property.

As you update your General Plan Housing Element for the 6th Cycle RHNA, state law requires you to review and mitigate governmental constraints to housing production. A critical governmental constraint is the uncertainty, delay, and expense of obtaining entitlements to build housing.

To address this constraint, the District proposes the adoption of a policy and a program for streamlined ministerial permitting of employer-sponsored housing.

Modeled after existing law AB 2295 (which was enacted in 2022 and becomes fully effective on January 1, 2024) and SB 35, the program would be implemented by an ordinance providing ministerial approval of multi-family infill housing that meets objective development and design review standards. This housing would be offered first to our employees, then to public agency employees, and then to members of the public in accordance with existing law.

The program would not apply to environmentally sensitive sites or sites with existing affordable housing or historic buildings.

Our proposal is set out in the sample language for a policy and program that could be incorporated into your forthcoming Housing Element update.

Ministerial permitting of infill housing through a well-defined, streamlined process would enable local educational agencies to make significant investments in housing to ensure the continued vitality of our educational program, our employees, and the community at large.
528
We welcome the opportunity to discuss our proposal with you and address your questions.

Sincerely,
PK Diffenbaugh
Superintendent
Attachment: Proposed Employer-Sponsored Housing Policy and Program 529
Proposed Housing Element Policy
The City shall provide streamlined ministerial permitting for workforce housing on sites owned by a local education agency.

Proposed Implementing Program
The City shall enact an ordinance to provide for ministerial permitting of housing development projects on sites owned by a local education agency.

Qualifying projects: Projects shall meet the following qualifications:
• The project shall meet all requirements of AB 2295, including but not limited to:
§ The project is on an infill site as defined by AB 2295; § The project qualifies as an allowable use under AB 2295; § The project meets the density and height standards applicable under AB 2295; and
§ The project meets other objective development standards applicable under AB 2295.
• The project shall not be sited on habitat for endangered, rare or threatened species; farmland of statewide and local importance; wetlands; earthquake/ seismic hazard zones; federal, state, and local preserved lands, NCCP and HCP plan areas, and conservation easements; riparian areas; Department of Toxic Substances Control (DTSC) facilities and sites; landslide hazard, flood plains and, floodways; and wildfire hazard as determined by the Department of Forestry and Fire Protection. • The project does not require demolition of deed-restricted affordable units, rent-controlled units, or historic structures on a national, state, or local register and will not use a mobilehome site.
• The project does not require subdivision.

Application: The City shall notify a sponsoring employer within 60 days of submission whether or not an application meets objective zoning standards.

Absent such notice, applications shall be deemed to meet objective zoning standards.

Design Review: The City shall notify a sponsoring local education agency within 90 days of submission whether or not an application meets objective design review standards. Absent such notice, applications shall be deemed to meet objective design review standards.

Expiration: Approvals shall expire within 3 years unless vertical construction is in progress. A one-year extension may be granted if the employer sponsor demonstrates significant progress such as applying for a building permit. 530
531
Stakeholder Survey List of Contacted Organizations

APPENDIX
F
532
533
Table of Contents
APPENDIX F STAKEHOLDER SURVEY ............................................................................... F-1 F.1 Stakeholder Survey .................................................................................................................F-1 Attachment
Attachment A Public Outreach Flyer
534
535
Appendix F – Stakeholder Survey F-1 EMC Planning Group
Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Appendix F
Stakeholder Survey
F.1 Stakeholder Survey
The Housing Element Stakeholder Survey was posted on May 5, 2023 and will remain open through September 30, 2023, or throughout the entire HCD Initial draft comment period, whichever is longer. The survey provides residents, business owners, visitors, and people working in Sand City with an opportunity to share their input on what housing needs exist in Sand City and allows community members to share ideas on how Sand City can achieve its Regional Housing Needs Allocation (RHNA). The survey consisted of 32 questions designed to inform the City of what demographics exist in the City, what the affordable housing needs are, and how the 6th Cycle Housing Element can best meet these housing needs. The survey also helped the City understand what factors are contributing to housing inequities within the City. The survey was available online at the Sand City Housing Element page.

Sand City conducted two public outreach events in which the public were informed about the survey and were encouraged to take it. The first event was Sand City’s Night Market on May 5, 2023. The second event was Sand City’s Annual West End Celebration on August 26, 2023 and August 27, 2023. During both events, EMC Planning Group staffed a booth which provided information about the 6th Cycle Housing Element and handed out flyers with a QR code to the survey. A total of 24 survey responses were received as of August 29, 2023.

Online Survey Results
Respondent Demographics
As shown in Figure 1 below, survey respondents ages range from less than 18 years old to 75 years and older. The fewest survey responses were collected from respondents who were less than 18 years old (4 percent) and from respondents who were 75 years or older (4 percent). The majority of the survey responses collected were from respondents ages 55-74 (36 percent). Twenty-four percent of respondents were aged 18-34 and 35-54. These results indicate a representation of all ages in the survey responses.

Of the respondents, 54 percent identified as non-Hispanic White and 25 percent of respondents identified as having an annual household income between $75,000-$100,000 and $100,001-$200,000.

Seventeen percent of survey respondents preferred not to disclose their annual income. In general, the respondents represent a mix of ages, ethnicities, and incomes, as shown in Figures 1 through 3 below. 536
Appendix F – Stakeholder Survey F-2 EMC Planning Group
Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 4%
4%
8%
24%
24%
36%
0% 5% 10% 15% 20% 25% 30% 35% 40%
<18
75+
Prefer not to say.
35-54
18-34
55-74
Figure 1: "How old are you?"
0%
4%
8%
8%
13%
25%
54%
0% 10% 20% 30% 40% 50% 60%
Native American
Asian or Asian American
Black or African American
Native Hawaiian or Pacific Islander
Prefer not to say
Hispanic, Latino, or Spanish Origin
White (non-Hispanic)
Figure 2: "Which racial or ethnic group(s) do you identify as?" 537
Appendix F – Stakeholder Survey F-3 EMC Planning Group
Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 0%
4%
8%
17%
21%
25%
25%
0% 5% 10% 15% 20% 25% 30%
$200,000 or more
$0-$25,000
$25,001-$50,000
Prefer not to say.
$50,001-$75,000
$75,001-$100,000
$100,001-$200,000
Figure 3: "What is your annual household income?"
0%
0%
0%
25%
25%
54%
0% 10% 20% 30% 40% 50% 60%
Disabled
Unhoused
Single-Parent Household
Senior
Female-Headed Household
None of the above apply
Figure 4: "Do you identify with any of the following?"
538
Appendix F – Stakeholder Survey F-4 EMC Planning Group
Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Housing Needs and Constraints
Figure 5 below demonstrates that the majority of the survey respondents do not currently live in Sand City but would like too. Eighteen percent of respondents work in Sand City and 18 percent rent in Sand City.
9%
14%
14%
18%
18%
27%
0% 5% 10% 15% 20% 25% 30%
I live nearby
Other
I own property in Sand City but live elsewhere
I live in Sand City and rent my home
I work in Sand City
No, but I would like too.

Figure 5: "Do you live in Sand City?"
7%
7%
7%
7%
20%
33%
47%
73%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Apartment purchased vs. rental
NA
Senior Living Community
Work/live space
Accessory Dwelling Unit
Apartment
Townhome
Single-Family Home
Figure 6: "In which of these housing types would you prefer to live?"
539
Appendix F – Stakeholder Survey F-5 EMC Planning Group
Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 In Figure 6 above survey respondents were asked to identify which housing types they would prefer to live in, of which approximately 73 percent identified single-family homes, 47 percent identified townhomes, and 33 percent identified apartments. The responses also indicate community member interest in living in accessory dwelling units, live-work spaces, and senior living communities.

Figure 7 demonstrates the majority of respondents identify limited housing supply (60 percent), limited variety of housing options (53 percent) and affordability (53 percent) as the main barriers to living in Sand City.

Benefits of Living in Sand City
Survey respondents were asked what factors would attract them to live in Sand City. The majority of respondents identify housing affordability (67 percent), parks (60 percent), and public engagement opportunities (40 percent). Respondents also recognized the artisan community as a reason they would like to live in Sand City.
7%
7%
7%
7%
20%
53%
53%
60%
0% 10% 20% 30% 40% 50% 60% 70%
Doesn't seem like there are very many houses
Housing looks poor
Not applicable
None
Employment opportunities
Affordability
Limited variety of housing options
Limited supply of housing
Figure 7: "What factors prevent you from being able to live in Sand City? Select all that apply"
540
Appendix F – Stakeholder Survey F-6 EMC Planning Group
Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Respondents were asked, “How would living in Sand City would benefit you?” The following responses were received:
 Being closer beach access, being able to walk, bike or skate to the beach.  Close to the beach - close to work
 It is so BEAUTIFUL here!
 It's close to work that's a great time saver
 Better my commute
 I live here
 Better quality of life
 Amazing environment
 It would be nice to be near the beach
 Expecting to downsize with aging. Sand City has accessible public transportation, convenient access to hiking/beach/bike trails, includes affordable shopping center with essentials.  I know several artist friends who would like to live in Sand City.  Could live where I work.

Common responses include: living closer to the beach and living closer to work. 7%
7%
7%
20%
33%
40%
60%
67%
0% 10% 20% 30% 40% 50% 60% 70% 80%
I commute for work only
Public Art/Murals/Active Seniors
Artisan Community
Better employment opprotunities
Recreational Centers
Public Engagement Opportunities
Parks
Housing Affordability
Figure 8: "What factors would attract you to Sand City?" 541
Appendix F – Stakeholder Survey F-7 EMC Planning Group
Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 AFFH Resources
Respondents were asked, ‘What do you see contributing to homelessness in the Monterey Peninsula?” The following three responses were received:
 People need mental health facilities available to them. They also need housing and rehabilitation.

It is a nation wide problem, but it is often pushed aside because we are a “touristy area”. Funny how you do not see many homeless on the beaches when it is car week or during the At&t proam.  Increased rents and shortages
 Affordability – just received $450 per month rent increase Respondents were asked, “What do you expect from your city or county regarding homelessness/housing?” The following three responses were received:
 Bunk houses could be made somewhere that they could spend a night, for maybe 20$\night, but it would have to have rules, like no drugs or alcohol allowed. This type of place would be great, but Sand City does not have the space for it. The powers that be have chosen, instead to build a hotel and more unaffordable apartments. Unaffordable to people that work in Sand City or Monterey. No place in our area is “affordable”. This is why people are homeless or cannot move to Monterey or Sand City areas. It is sad that city councils and our governor turn a blind eye to the housing problem that exists. Instead, more required housing is now being put on all counties. This does nothing to fix the problem.
 Sand City Housing Authority formation.
 The City to understand the helplessness when landlords refuse to honor agreements especially as it relates to limited income housing.

Respondents were asked, “What affordable housing resources do you believe should be either promoted or created in Sand City?” The following three responses were received:
 Long term rental database
 Unknown
 Multi language speakers such as Spanish
Respondents were asked, “What are the best ways to provide work-live space for artists?” The following response was received:
 They can’t make a living and afford to live in Monterey area 542
Appendix F – Stakeholder Survey F-8 EMC Planning Group
Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Property Owner Re-development Interest
A series of questions were asked to commercial property owners in Sand City to help the City better understand property owner interest in redeveloping their commercial spaces to include residential.

Two responses were received on Figure 14 below.

The commercial property owners were asked, “If you own or lease a commercial property, what would it take for you to consider integrating a housing unit into your property, such as an accessory dwelling unit?” The following two responses were received:
 Cooperation from the planning department
 Doesn’t make sense at this time
Discussion of Results
Responses were received from a variety of age ranges, ethnicities, and income levels. The majority of respondents want to live in Sand City but don’t currently. This indicates responses from a group who is diverse and may be facing barriers to finding housing in Sand City.

Although respondents indicated their preferred housing type is a single-family dwelling, respondents did indicate the need for more diverse housing types. Some respondents identified interest in living in townhomes, apartments, accessory dwelling units, live/work units, and senior housing. The 6th Cycle Housing Element includes programs to increase these housing types. Program 1.A (Develop the “South of Tioga” area with Multi-Family Residential) will support the approval of a large multifamily housing project and Program 1.C (West End Housing Diversity Overlay) will enable more multi-family unit development by allowing multi-family residential as a permitted use in the MU-P 1 1
No
Yes
Figure 14: "If you own or lease a commercial property, would you consider redeveloping your site to include housing?"
543
Appendix F – Stakeholder Survey F-9 EMC Planning Group
Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 zoning district and will allow for higher density than is currently allowed in the MU-P district. The City will incentive construction of JADUs and ADUs (Program 1.K) by allowing ministerial approval consistent with state law and promoting construction through community outreach and a dedicated ADU/JADU website. Program 3.G (Artist Live/Work Housing) is Sand City’s commitment to continue to support the artist community in the City by exploring development of the City-owned Art Park to provide affordable artist live/work units.

When asked what factors prevent respondents from being able to live in Sand City, the most common selected responses out of the provided options were: 1) limited supply of housing, 2) limited variety of housing options, and 3) affordability.

Number one will be addressed by:
 Program 1.A (Develop the “South of Tioga” area with Multi-Family Residential); and  Program 1.C (West End Housing Diversity Overlay) which will encourage high-density housing.

Number two will be addressed by:
 Program 1.A (Develop the “South of Tioga” area with Multi-Family Residential);  Program 1.C (West End Housing Diversity Overlay);
 Program 1.K (Accessory Dwelling Unit (ADU) and Junior Accessory Dwelling Unit (JADU) Program);
 Program 3.G (Artist Live/Work Housing); and
 Program 1.M (“Missing Middle” Housing).

Number three will be addressed by:
 Program 3.G (Artist Live/Work Housing);
 Program 1.N (Small Sites Lot Consolidation);
 Program 1.R (Prepare Checklist and Procedures for SB35); and  Program 3.F (Affordable Housing Services for Extremely Low- and Other-Income Restricted Residents).

When asked what respondents expect from the City or County regarding homelessness/housing, three responses were received. One response recommends bunk-houses for 20$/night. Program 3.B (Homeless and Extremely Low Income: Support for Day Center Facility and transitional housing) is Sand City’s commitment to work with the Salvation Army to continue to provide and expand services for homeless and extremely low-income families and individuals. When asked what affordable housing resources respondents believe should be promoted or created in Sand City, three responses were received. One respondent recommended a long-term rental database. Program 5.A (Fair Housing Services and Information) will expand dissemination of fair housing information. 544
Appendix F – Stakeholder Survey F-10 EMC Planning Group Sand City 6th Cycle Housing Element Update HCD Revised Draft May 2024 Respondents were asked a few questions about the benefits of living in Sand City. When asked what factors would attract you to Sand City, out of the options provided, the majority of respondents selected housing affordability and parks. Some respondents left “free responses”. These free responses include respondents’ attraction to the artisan community and the public art/murals/active seniors. Respondents were also asked how living in Sand City would benefit them. Out of the free responses received, themes include ability to live close to the beach, ability to walk to the beach, and being closer to work. Other responses include accessible public transportation and artists who desire to live in Sand City. It is clear that Sand City’s vibrant artist community is one of the reasons people are interested in living in Sand City. Sand City seeks to support this need by committing to explore artist live/work unit opportunities on City-owned land.

Lastly, commercial property owners were asked a few questions about their interest in redeveloping their properties to include residential. Of the two responses received, one respondent was interested and one was not.
545
Public Outreach Flyer A
Attachment
546
547
2023-2031 Housing Element

S A N D C I T Y

WHY DOES MY
PARTICIPATION MATTER?
The State of California has declared a
'housing supply crisis' and holds all local
communities accountable for a portion of
the housing need, regardless of available
land capacity. Your participation is
essential to creating a plan that
represents Sand City's core values while
meeting regional and state-mandated
housing goals. Local power resides in
discovering how Sand City will meet
these state requirements.

As part of the Housing Element Update,
we are asking the community to provide
input regarding housing priorities and
challenges. Participation from our
residents is vital to ensure our
community’s values are identified and
articulated in the Housing Element and
the City’s approach provides the best fit.

KNOW A PROPERTY

OWNER INTERESTED IN
HOUSING DEVELOPMENT?
Property owners can actively participate
in the 6th Cycle Housing Element by
adding an Accessory Dwelling Unit
(ADU) or undergoing an SB 9 lot split to
make way for new housing.

If you're interested, fill out the Property
Owner Interest form online via the QR
code below

STAY CONNECTED
The Initial Public Draft
Housing Element is
available for 30 days of
public comment through
Monday, June 5.

Scan the QR code to
access the draft!
548

KEY PHASES OF THE

HOUSING ELEMENT

WHAT IS A HOUSING
ELEMENT?
A Housing Element is a local plan for
creating new homes and meeting the
housing needs for all members of a
community. Housing Elements lay the
foundation for housing policies for the
next decade to ensure every Californian
has a place to call home.

Without a Housing Element that is
compliant with State law, cities are at
risk of legal repercussion, losing funding
opportunities, and forfeiting control of
where new housing is developed.

AFFIRMATIVELY

FURTHERING FAIR

HOUSING
Per AB 686, all jurisdictions are required
to affirmatively further fair housing
through the implementation of programs
and policies, including a Fair Housing
Assessment within the housing element.

Housing plans must protect people
against discrimination for housing
opportunities and ensure that new homes
are being located fairly so all residents
have access to good schools, jobs, and
transportation opportunities.

Community participation is integral to
this process of finding an inclusive path
forward.

State forecasts regional housing needs
considering jobs, costs to buy/rent, and
overcrowding.

AMBAG (Association of Monterey Bay
Area Governments) allocates housing
for each jurisdiction, known as the
Regional Housing Needs Allocation
(RHNA).

Local governments develop new
policies, programs, and land uses to
address current and future housing
needs.

Local governments draft a housing
plan, known as the housing element, to
meet the assigned RHNA.

HOW MANY UNITS DO
WE NEED?
Sand City is responsible for 260 new
housing units for the 6th Cycle.

STAKEHOLDER SURVEY
Help the City gain a
better understanding of
the community and any
possible barriers to
residing in Sand City.

Take a quick survey to
inform the process! Scan
the QR code.
549
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
December 21, 2023
Vibeke Norgaard, City Manager
City of Sand City
1 Pendergrass Way
Sand City, CA 93955
Dear Vibeke Norgaard:

RE: City of Sand City’s 6th Cycle (2023-2031) Draft Housing Element Thank you for submitting the City of Sand City’s (City) draft housing element received for review on September 27, 2023. Pursuant to Government Code section 65585, the California Department of Housing and Community Development (HCD) is reporting the results of its review. Our review was facilitated by a conversation, with you, Anastazia Aziz, Kylie Pope, and Michael Groves on November 29, 2023. In addition, HCD considered comments from LandWatch and David Kellogg pursuant to Government Code section 65585, subdivision (c).

The draft element addresses many statutory requirements; however, revisions will be necessary to comply with State Housing Element Law (Gov. Code, § 65580 et seq). The enclosed Appendix describes the revisions needed to comply with State Housing Element Law.

Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate. Please be aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD.

Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant, the Affordable Housing and Sustainable Communities program, and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to 550
Vibeke Norgaard, City Manager