Scotts Valley City Council
June 28, 2023

AGENDA
Joint Special Meeting of the
Scotts Valley City Council
and the Planning Commission
In-Person and Remote Access
Date: June 28, 2023
Time: 6:30 PM

CONTACT

INFORMATION

MEETING LOCATION POSTING
City of Scotts Valley
1 Civic Center Drive
Scotts Valley, CA
95066
(831) 440-5600
City Council Chambers
1 Civic Center Drive
Scotts Valley, CA 95066
OR
Zoom Video Conference
https://us02web.zoom.us/j/86813284631
The agenda was posted
on 06-23-2023 at City
Hall, SV Senior Center,
SV Public Works Building,
and on the Internet at
www.scottsvalley.gov.

ELECTED OFFICIALS CITY STAFF MEMBERS
Jack Dilles, Mayor
Randy Johnson, Vice Mayor
Donna Lind, Council Member
Derek Timm, Council Member
Allan Timms, Council Member
Mali LaGoe, City Manager
Kirsten Powell, City Attorney
Taylor Bateman, Community Development
Director
Sarah Wikle, Senior Planner
Cathie Simonovich, City Clerk

APPOINTED OFFICIALS

PLANNING COMMISSIONERS
Lori Gentile, Chair
Chuck Maffia, Vice Chair
David Hodgin, Commissioner
Shawn Mosley, Commissioner
Steve Simonovich, Commissioner

MEETING NOTICE AND AGENDA PACKET MATERIALS
Agenda and Agenda Packet Materials:

For Special City Council Meetings, the agenda and the complete agenda packet are available for review, at last 24 hours prior to the meeting, on the Internet at the City’s website:
www.scottsvalley.gov and in the lobby of City Hall at 1 Civic Center Drive, Scotts Valley, CA.

Pursuant to Government Code §54957.5, materials related to an agenda item, submitted after distribution of the agenda packet, are available for public inspection in the lobby of City Hall during normal business hours, Monday-Friday, 8am-12 pm and 1-5 pm. In accordance with AB

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Date: June 28, 2023
1344, such documents will be posted on the City’s website at www.scottsvalley.gov.

Public Participation:

The meeting will be available on Zoom and livestreamed to the City of Scotts Valley’s YouTube channel: https://www.youtube.com/channel/UCLNTBScelB4wTfidYHrocWA For those wishing to participate via Zoom you can join the following ways:

Zoom Webinar meeting link: https://us02web.zoom.us/j/86813284631 Or dial one of these numbers: (669) 900-9128 or (669) 444-9171 Webinar ID: 868 1328 4631
Whether attendance is in-person or remote, you will be given opportunities to provide public comment at the appropriate times throughout the meeting. The time limit is up to 3 minutes for an individual, or 5 minutes for someone who is representing a group of three or more, at the discretion of the Mayor. Please note that this is not a question-and-answer time, but simply a time to provide comments to the Council. At the appropriate times during the meeting for public comment on specific agenda items, the Mayor will announce that public comment will be accepted.

How to comment via in-person attendance:

Please proceed to the public comment podium when the Mayor opens the item for public comment.

How to comment via Zoom Webinar:

Use the webinar attendee option to “raise hand” when the Mayor opens the item for public comment. The Clerk will unmute you when it is your turn. If you have joined via Zoom phone call, dial *9 or your phone to “raise your hand”, and the Clerk will unmute you when it is your turn.

CALL TO ORDER 6:30 PM
PLEDGE OF ALLEGIANCE and MOMENT OF SILENCE

ROLL CALL

REGULAR AGENDA
Persons wishing to speak on any item may do so by raising their hand to be recognized by the Mayor.

1. 6th Cycle Housing Element Update Review for HCD Submittal

ADJOURNMENT

ADA NOTICE
The City of Scotts Valley does not discriminate against persons with disabilities. The

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Date: June 28, 2023
City Council Chambers is an accessible facility. If you wish to attend a City Council meeting and require assistance such as sign language, a translator, or other special assistance or devices in order to attend and participate at the meeting, please call the City Clerk's office at (831) 440-5600 five to seven days in advance of the meeting to make arrangements for assistance. If you require the agenda of a City Council meeting be available in an alternative format consistent with a specific disability, please call the City Clerk’s Office. The California State Relay Service (TTY/VCO/HCO to Voice:

English 1-800-735-2929, Spanish 1-800-855-3000; or, Voice to TTY/VCO/HCO: English 1-800-735-2922, Spanish 1-800-855-3000), provides Telecommunications Devices for the Deaf and Disabled and will provide a link between the TDD caller and users of telephone equipment.

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Date: June 28, 2023

PROCEDURAL INFORMATION FOR THE PUBLIC

THE FOLLOWING IS THE PROCEDURE COUNCIL SHOULD TAKE IN
APPROVAL OF A RESOLUTION:

1. Move the Resolution number for approval.

2. Second the motion.

3. Vote by body, a roll call vote is not required.

THE FOLLOWING IS THE PROCEDURE COUNCIL SHOULD TAKE IN
INTRODUCTION/ADOPTION OF AN ORDINANCE:

1. Move the Ordinance number for introduction (or adoption).

2. Move the Ordinance be introduced by title only and waive the reading of the text.

3. Read the Ordinance title.

4. Second the motion.

5. Vote by body, a roll call vote is not required.

THE FOLLOWING IS THE PROCEDURE COUNCIL SHOULD TAKE IN
PUBLIC COMMENT/PUBLIC HEARINGS:

Unless otherwise determined by the presiding officer of the meeting:

1. Three minutes allowed per individual to speak.

2. Five minutes allowed per individual representing a group of three or more. ❖❖❖❖❖❖❖❖
The City of Scotts Valley does not discriminate against persons with disabilities. The City Council Chambers is an accessible facility. If you wish to attend a City Council meeting and require assistance such as sign language, a translator, or other special assistance or devices in order to attend and participate at the meeting, please call the City Clerk's office at (831) 440- 5602 five to seven days in advance of the meeting to make arrangements for assistance. If you require the agenda of a City Council meeting be available in an alternative format consistent with a specific disability, please call the City Clerk’s Office. The California State Relay Service (TTY/VCO/HCO to Voice: English 1-800-735-2929, Spanish 1-800-855-3000; Voice to TTY/VCO/HCO: English 1-800-735-2922, Spanish 1-800-855-3000; or, from or to Speech-toSpeech, English & Spanish 1-800-854-7787), provides Telecommunications Devices for the

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Date: June 28, 2023
Deaf and Disabled and will provide a link between the TDD caller and users of telephone equipment.

CITY OF SCOTTS VALLEY
City Council Staff Report
DATE: June 28, 2023
TO: Honorable Mayor, City Council, and Planning Commission FROM: Taylor Bateman, Community Development Director
APPROVED: Mali LaGoe, City Manager
SUBJECT: 6th Cycle Housing Element Update Review for HCD Submittal

BACKGROUND
The Housing Element is one of seven mandated elements of the City’s General Plan. It identifies the current and future housing needs of the City with proposed actions to facilitate the provision of housing to meet those needs at all income levels. Updates to the Housing Element is required by State law every eight years and reflects the State’s housing goal of "attaining decent housing and a suitable living environment for every California family," as well as incorporating the unique concerns of the community.

The current Housing Element, which was adopted by the City Council in March 2016 and certified by the State, covers the planning period from 2015 to 2022 (the 5th Cycle). The next Housing Element Update (the 6th Cycle) must be adopted by December 2023, to address the period from 2023 to 2031. State law establishes a series of very specific requirements as to the scope, content, and process by which a Housing Element is updated and adopted, including review and approval (known as certification) by the California Department of Housing and Community Development (HCD).

PUBLIC REVIEW DRAFT HOUSING ELEMENT
On May 19, 2023, the City accomplished a major milestones with the publishing of the Public Review Draft.

This represents the first complete, public draft which incorporates public comments and recommendations from the City Council and Planning Commission. Per State law requirements, the Public Review Draft was available for a 30-day review through June 19, 2023, and public comment submittal was available through the online Feedback Form. Following the mandated 30-day review, the City must now compile and consider the public comments for a minimum of 10 business days. The Public Review Draft Housing Element includes the following chapters and appendices:
• Chapter 1: Introduction
• Chapter 2: Housing Plan
• Appendix A: Review of Past Performance
• Appendix B: Housing Needs Assessment
• Appendix C: Housing Constraints
• Appendix D: Housing Resources
• Appendix E: Affirmatively Furthering Fair Housing
• Appendix F: Candidate Housing Sites
• Appendix G: Community Engagement Summary
• Appendix H: Glossary of Terms

COMMENTS ON THE PUBLIC REVIEW DRAFT HOUSING ELEMENT
Staff received two online feedback form submissions and six letters via email. Comments ranged from RHNA sites strategy recommendations to policy program updates to informational comments. Attachment

2 provides a table of the comments received. These comments will be reviewed by staff and as appropriate, edits will be incorporated into the HCD Review Draft Housing Element. 125 Bethany Drive
One letter in particular was received from a co-owner of 125 Bethany Drive requesting that their property be removed for consideration for rezoning as identified in the Sites Inventory (discussed below). The Public Review Draft Housing Element calls for rezoning this 1.35-acre property from C-P Professional to R-H High Density to accommodate up to 41 multi-family residential units.

The property owner has submitted a development application to the City to construct a 66,204 square foot storage facility; including 42,475 net square feet of storage, and 11,549 net square feet of professional and administrative office space
Based on the request from the property owner, and the fact that they have a pending development application, staff recommends removing 125 Bethany from the Sites Inventory.

CANDIDATE SITES
Through the Housing Element update, the City must show that it can accommodate its Regional Housing Needs Allocation (RHNA). For the 6th Cycle, the City of Scotts Valley was allocated a total of 1,220 housing units (as outlined in Table 1). The City is required to identify strategies and exact parcels with the capacity to accommodate the entirety of the RHNA, plus a buffer to avoid a “No-Net-Loss” situation. This refers to a site developing less units than identified in the Housing Element and thus falling below the required RHNA; in that case, the City would have to update its Housing Element and identify new sites to accommodate the shortfall. To avoid this, HCD recommends each jurisdiction accounts for buffers of 15 to 30 percent at each income category.

Table 1 – 6th Cycle RHNA
Income Range1
Income Category
Percent of Area
Median Income
(AMI) Minimum Maximum
RHNA
(Housing
Units)
Very Low Income 0 – 50% -- $77,750 392
Low Income 51 – 80% $77,751 $124,750 257
Moderate Income 81 – 120% $124,751 $143,150 154
Above Moderate
Income
>120% $143,150 -- 417
TOTAL: 1,220 units
On April 5, 2023, Staff presented the City Council and Planning Commission a number of strategies to accommodate this RHNA and received guidance on preferred methods and recommendations.

Recommendations included: 1) proceed with including mixed-use development opportunities along Scotts Valley Drive, 2) consider additional capacity at Town Center, 3) outreach to current project applications to increase unit capacity on respective properties, 4) proceed with studying commercial and residential areas for higher density residential development capacity, 5) decrease the total and above moderate-income buffer.

Staff also received recommendations from stakeholders and local property owners to increase the mixeduse residential maximum over the current 50 percent. Based on further guidance from the City Council and Planning Commission from the first Joint Study Session, the number of residential units were decreased, 1 Income range is based on the 2022 HUD Area Median Income (AMI) for Santa Cruz County of $119,300 for a family of 4.

and the number of mixed-use units were increased. The final units associated with the sites inventory and their buffer over the RHNA are shown in Table 2. The location of sites are illustrated in Attachment 2.

Table 2 – Public Review Draft RHNA Sites Inventory
Strategies
Very
LowIncome
LowIncomeModerateIncome
Above
ModerateIncomeTOTAL
6 th Cycle RHNA 392 257 154 417 1,220
Existing Residential Capacity 12 2 58 72
Pipeline Projects 51 13 353 417
Projected ADUs 24 12 4 40
Town Center Specific Plan 427 39 191 657
Residential 38 9 48 95
Rezones
Mixed-Use 354 93 444 891
TOTAL 906 168 1,098 2,077
Buffer Over RHNA 40% 9% 163% 70%
Existing Residential Capacity
As a result of guidance to decrease the above moderate-income buffer, Staff has removed all vacant residential sites and underutilized residential sites with the capacity to accommodate only above moderateincome units. Only sites with the existing zoning to accommodate lower and moderate-income units are remaining.

Pipeline Projects
The Public Review Draft inventory includes increased Pipeline Project units since the April 5, 2023, Joint Study Session. This is a result of discussions with the Valley Gardens applicant to increase the proposed units.

In total, Pipeline Project units increased from 369 total units to 417 total units.

Accessory Dwelling Units (ADUs)
The Public Review Draft inventory includes increased ADU projections (1.5 times of the 2018 to 2022 average) for a minimum projection of five ADUs per year, consistent with HCD guidelines. HCD guidelines recommend reviewing past construction trends and inclusion of programs that incentivize ADU construction to inform ADU projections for the 6th Cycle. This will be facilitated through a number of program actions included in the Housing Plan. Program H-1.1 addresses the City’s total RHNA and its identified housing unit capacity through projects in various strategies, including the projected ADU development. Through program H-1.4, the City shall facilitate the development of ADUs per State law requirements. The City will establish an ADU monitoring program to track ADU development, review ADU production and affordability levels annually, and implement actions in this Program as a means of promoting increased ADU development.

Town Center Specific Plan
For the April 5 Study Session, Staff presented a total capacity of 250 units in the Town Center Specific Plan area. Upon further analysis, parcels in the Specific Plan area were strategically selected based on propensity and ability to control the development of affordable units. This resulted in the selection of three City-owned parcels, the METRO Cavallaro transit center parcel, and the Kings Village shopping center parcel. A total of 657 units may be accommodated over these five parcels.

Rezone Strategies
Through the strategies identified above, the City cannot fully accommodate its lower and moderate-income RHNA. As such, two rezone strategies are proposed for select sites; residential and mixed-use rezones.

The sites selected for rezoning are predominantly located along Scotts Valley Drive and Mount Hermon Road – in an effort to affirmatively further fair housing by creating affordable housing development along major corridors. Sites were selected based on their likelihood of developing such as vacant parcels, underutilized parcels2, and parcels with property owner and developer interest. Attachments 3 and 4 show the location of sites selected for rezoning.

Residential Rezone
The first strategy includes the increase of zoning of select parcels to a high-density zoning designation allowing 40 dwelling units per acre. In total, 95 units are possible through this residential rezone.

Mixed-Use Rezone
The second strategy includes the increase of zoning of select sites to a mixed-use zoning designation allowing 40 dwelling units per acre and with a permitted residential component of 70 percent instead of the current 50 percent. In total, 891 units are possible through this mixed-use rezone.

No-Net-Loss Buffer
It is important to note that the City must not only show it can accommodate its RHNA, but that it also has a “buffer.” HCD recommends a buffer between 15 and 30 percent at each income category. This buffer allows development to occur at potentially lower rates than anticipated in the Housing Element while maintaining adequate sites to accommodate the total RHNA, and thus avoiding “No Net Loss.” If the City were to fall below the RHNA (“No Net Loss”), it would need to amend the Housing Element and potentially identify new sites to be rezoned to maintain adequate sites to accommodate RHNA throughout the entirety of the planning period – as required by SB 166.

At the April 5, 2023, Joint Study Session, City Council and Planning Commission recommended Staff work towards decreasing both the above moderate-income and total buffers. Table 3 shows the buffer that was proposed during the last Study Session versus what is now included in the Public Review Draft. As shown, the two categories were largely decreased, and the lower income category almost doubled.

Table 3 – No-Net-Loss Buffer
Buffer
Very
LowIncome
LowIncomeModerateIncome
Above
ModerateIncomeTOTAL
April 5 Joint Study Session Buffer 28% 31% 762% 279%
Public Review Draft Buffer 40% 9% 164% 78%

POLICY PROGRAMS
The Chapter 2: Housing Plan establishes the goals, policies, and programs that the City will implement throughout the planning period to meet its RHNA, address potential constraints to housing development, and affirmatively further fair housing. The programs include concrete actions and timeframes, per HCD guidelines. Additional programs have also been added in response to the analysis conducted in the Draft Housing Element’s appendices; these include new State law requirements and actions to further facilitate affordable housing development and remove development constraints. Further information on updates to State Law that are informing a number of the Policy Programs in the Housing Plan can be found in Attachment 6.
2 Parcels are considered underutilized when the land value exceeds the improvement value. Improvements refer to buildings and structures constructed on the land.

New program topics included in the Housing Plan include:
• Actions to facilitate ADU development;
• Removal of development constraints, such as parking requirements for multi-family developments; • Affirmatively Furthering Fair Housing (AFFH);
• Update to the city’s definition of “Family” to remove limitations to the number of unrelated persons and differentiation between related and unrelated individuals living together • Amending zoning to permit employee housing;
• Amending zoning to update parking requirements for emergency shelters, expand the City’s definition of “emergency shelters,” and monitor an inventory of sites appropriate to accommodate emergency shelters;
• Update the Density Bonus Ordinance to comply with recent update to State law; and • Amending zoning to permit low barrier navigation centers in compliance with State law.

NEXT STEPS
Staff is continuing to make refinements to the Public Review Draft Housing Element. Staff will also take into consideration Planning Commission and Councilmember comments as well as public comment. Staff anticipates submitting the HCD Review Draft Housing on July 5th.

Upon submittal, the City will be assigned a reviewer at HCD, and the State is allowed up to 90 days to provide comments on the submittal. Staff will seek early and regular feedback from HCD during their review period and expects to receive formal comments from the State in October. Staff will address those comments and return to City Council prior to the second formal submittal to HCD. HCD will then have 60- days to respond. Following review by HCD and further revisions based on HCD and subsequent public review comments, a final draft Housing Element will go through a formal public hearing process including review by the Planning Commission and City Council prior to formal City Council adoption.

The deadline for Housing Element certification is December 2023, and staff is working to present a certifiable Housing Element to Council for approval before that date. Based on these review times, there is no flexibility for delay in this schedule if the City wishes to have a certifiable Housing Element complete in December. In order to meet this timeframe, it is important for the City’s initial submittal to be comprehensive to meet or exceed HCD’s expectations. This will minimize back and-forth during the review periods and help ensure a smoother path to certification.

The timely development and implementation of a Housing Element is essential to avoid consequences that come from failing to do so. Among these could be the inability of the City to qualify for certain state or federal funding programs for transportation, infrastructure, and housing; shortened deadlines for completing any necessary rezones associated with Housing Element Law compliance; “Builder’s Remedy” projects3; lawsuits from third party organizations or the State; suspension of local control on building matters; and fines. In a growing effort by the State to increase accountability and enforcement of new State housing laws (see Attachment 6) and to better address the housing needs of Californians, HCD increased its accountability efforts and formed the Housing Accountability Unit (HAU). The HAU is in charge of holding jurisdictions accountable for their Housing Element commitments, as well as compliance with other State housing laws. Violations of these laws may lead to consequences including revocation of housing element certification and/or referral to the California Office of the Attorney General.

RECOMMENDATION
Staff recommends that the City Council and Planning Commission provide comments on the Draft 6th Cycle Housing Element.
3 Government Code section 65589.5(d)(5) prevents jurisdictions without a substantially compliant Housing Element from denying residential projects that meet specific requirements even if they do not comply with the Zoning Code or General Plan. These projects must be predominantly made up of residential uses and meet the affordability threshold.

FISCAL IMPACTS
There are no additional financial impacts anticipated as a result of this action. The cost of the Housing Element Update is included as part of the contract agreement approved by City Council on October 5, 2022.

ATTACHMENTS
Attachment 1 – Public Review Draft 2023-2031 Housing Element Attachment 2 –Public Comments (May 19-June 22) on the Public Review Draft Housing Element Attachment 3 – Complete Map of Candidate Housing Sites
Attachment 4 – Map of Candidate Housing Sites for Rezoning – Mixed-Use Attachment 5 – Map of Candidate Housing Sites for Rezoning – Residential Attachment 6 – Updates to State Law

The Housing Element identifies and plans for the City
of Scotts Valley existing and projected housing needs
for all economic segments of the community, as well
as maintains compliance with all State housing laws.

It contains a detailed work program of the City’s
goals, policies, programs, and objectives that
preserve, improve, and ensure housing for a
sustainable future. Each eight-year planning cycle,
the City is allocated a specific number of housing
units to plan for – the Regional Housing Needs
Allocation (RHNA) – and is determined by the
Association of Monterey Bay Area Governments
(AMBAG). The RHNA quantifies current and future
housing growth for all jurisdictions within the region.

Through research and analysis, the Housing Element
identifies available candidate housing sites and
establishes policies and programs to accommodate
the RHNA.

MAY 2023 PUBLIC REVIEW DRAFT

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T A B L E O F C O N T E N T S
Chapter 1: Introduction
Table of Contents ........................................................................................................................ 1-2 State Requirements ..................................................................................................................... 1-6 Regional Housing Needs Allocaiton ............................................................................................ 1-8 Relationship to Other General Plan Elements ............................................................................ 1-8 Public Participation ..................................................................................................................... 1-9 Chapter 2: Housing Plan
Goals, Policies & Programs ......................................................................................................... 2-2 Housuing Actions Implementation Summary ........................................................................... 2-25 Appendix A: Review of Past Performance
Program Evaluation for Households with Special Needs ........................................................... A-3

1. Seniors ............................................................................................................................ A-3

2. Persons with Disabilities ................................................................................................. A-3

3. Large Households ........................................................................................................... A-4

4. Single-Parent Households .............................................................................................. A-5 2015-2023 Program Accomplishments ...................................................................................... A-6 Appendix B: Housing Needs Assessment
Population Characteristics .......................................................................................................... B-3

1. Population Growth ......................................................................................................... B-3

2. Age Characteristics ......................................................................................................... B-3

3. Single-Parent Households .............................................................................................. B-4 Economic Characteristics ............................................................................................................ B-6

1. Employment and Wage Scale ........................................................................................ B-6 Household Characteristics .......................................................................................................... B-9

1. Household Type ............................................................................................................. B-9

2. Household Size ............................................................................................................. B-10

3. Household Income ........................................................................................................ B-10 Housing Problems .................................................................................................................... B-13

1. Overcrowding .............................................................................................................. B-14

2. Overpayment (Cost Burden)......................................................................................... B-15 Special Needs Groups ............................................................................................................... B-16

1. Seniors ......................................................................................................................... B-16

2. Persons with Physical and Developmental Disabilities ................................................ B-17

3. Large Households ......................................................................................................... B-19

4. Single-Parent Households ........................................................................................... B-20

5. Farmworkers ................................................................................................................. B-21

6. Extremely Low-Income (ELI) and Poverty Status ......................................................... B-21 DRAFT

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7. Persons Experiencing Homelessness ........................................................................... B-23

8. Students ........................................................................................................................ B-24 Housing Stock Characteristics ................................................................................................... B-25

1. Housing Growth ............................................................................................................. B-3

2. Housing Types ................................................................................................................. B-3

3. Housing Availability and Tenure ..................................................................................... B-4

4. Housing Age and Conditions.......................................................................................... B-3

5. Housing Costs and Affordability ..................................................................................... B-3 Appendix C: Housing Constraints
Non-Governmental Constraitns .................................................................................................. C-3

1. Land Costs and Constructions ....................................................................................... C-3

2. Availability of Financing .................................................................................................. C-5

3. Economic Constraints ..................................................................................................... C-7 Environmental Constraints ......................................................................................................... C-8

1. Geological and Seismic Hazards .................................................................................... C-8

2. Flood Hazards ................................................................................................................. C-9

3. Fire Hazards .................................................................................................................. C-11 Govnernmental Constraints ...................................................................................................... C-12

1. Land Use Controls ........................................................................................................ C-12

2. Zoning Districts ............................................................................................................. C-13

3. Variety of Housing Permitted ....................................................................................... C-16

4. Residential Development Standards ........................................................................... C-23

5. Housing for Persons with Disabilities ........................................................................... C-25

6. Planned Development Zones ....................................................................................... C-29

7. Local Ordinances ......................................................................................................... C-29

8. Specific Plans ................................................................................................................ C-34

9. Local Processing and Permit Procedures ..................................................................... C-39

10. Development Fees ....................................................................................................... C-40

11. On-/Off-Site Improvements ......................................................................................... C-43

12. Building Codes and Code Compliance .......................................................................... C-44 Infrastructure Constraints ......................................................................................................... C-44

1. Dry Utilities .................................................................................................................. C-44

2. Water Supply ................................................................................................................ C-45

3. Fire and Emergency Services ........................................................................................ C-47

4. Police Services .............................................................................................................. C-47 Appendix D: Housing Resources
Resources for Special Needs Groups .......................................................................................... D-3

1. Seniors ........................................................................................................................... D-3

2. Persons with Disabilities ................................................................................................ D-4

3. Persons Experiencing Homelessness ............................................................................. D-4 DRAFT

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Financial Resources ..................................................................................................................... D-5

1. Section 8 Housing Vouchers .......................................................................................... D-5

2. Community Development Block Grants (CDBG) ........................................................... D-5

3. Home Investment Partnership Program ....................................................................... D-6

4. Local Early Action Planning (LEAP) Grant ...................................................................... D-6

5. SB 2 Grant ...................................................................................................................... D-6

6. Affordable Housing Programs ....................................................................................... D-6 Opportunities for Energy Conservation ....................................................................................... D-7

1. Energy Use and Providers .............................................................................................. D-7

2. Energy Conservation ...................................................................................................... D-7 Appendix E: Affirmatively Furthering Fair Housing
Assessment of Fair Housing Issues ............................................................................................. E-3

1. TCAC/HCD Opportunity Scores ...................................................................................... E-3

2. Patterns of Integration and Segregation ....................................................................... E-5

3. Access to Opportunities .............................................................................................. E-19

4. Disproportionate Housing Need and Displacement ................................................... E-28 Fair Housing Enforcement and Outreach Capacity................................................................... E-39 Contributing Factors ................................................................................................................. E-43 Appendix F: Candidate Housing Sites
Candidate Sites Inventory ............................................................................................................ F-2

1. General Plan Consistency ............................................................................................... F-4

2. Zoning Consistency ......................................................................................................... F-4

3. CEQA Streamlining .......................................................................................................... F-4

4. Access to Transportation ................................................................................................ F-4

5. Infrastructure and Public Services Capacity ................................................................... F-4 Projected Development ............................................................................................................... F-2

1. Accessory Dwelling Units ................................................................................................ F-4

2. Pipeline Projects ............................................................................................................. F-7 Existing Residential Capacity ..................................................................................................... F-10

1. Residentially Zoned Land ............................................................................................. F-10

2. Town Center Specific Plan ........................................................................................... F-12 Rezone Strategies ..................................................................................................................... F-15

1. Residential Rezones ..................................................................................................... F-16

2. Mixed-Use Rezones ..................................................................................................... F-19 Adequacy of Sites ...................................................................................................................... F-21

1. Availability of Water, Sewer, and Dry Utilities ............................................................ F-21

2. Larger and Smaller Parcels .......................................................................................... F-21

3. City-Owned Parcels...................................................................................................... F-22

4. Vacant Parcels ............................................................................................................. F-22

5. Non-Vacant Parcels ..................................................................................................... F-22 DRAFT

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6. 5
th and 4th Cycle Housing Element Parcels .................................................................. F-22 Appendix G: Community Engagement
Summary of Community Engagement ........................................................................................ G-2

1. Community Workshop #1 .............................................................................................. G-2

2. Joint Study Session ........................................................................................................ G-3

3. Housing Element Webpage ........................................................................................... G-3 Public Comments ........................................................................................................................ G-4 Appendix H: Glossary of Terms
Glossary ....................................................................................................................................... H-5 Acronyms .................................................................................................................................. H-13 DRAFT

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S T A T E R E Q U I R E M E N T S
California State Housing Element Law (California Government Code Article 10.6) establishes requirements for the Housing Element. California Government Code Section 65588 also requires that local governments review and revise the Housing Element of their comprehensive General Plans not less than once every eight years.

Section 65580 of the California Government Code states:
a. The availability of housing is of vital statewide importance, and the early attainment of decent housing and a suitable living environment for every Californian, including farmworkers, is a priority of the highest order.
b. The successful development of housing requires cooperative participation of government and the private sector to expand housing opportunities and accommodate the housing needs of Californians in all economic levels.
c. The provisions of housing, affordable to low- and moderate-income households, requires the cooperation of all levels of the government.
d. Local and State governments have a responsibility to use the powers vested in them to facilitate the improvement and development of housing to make adequate provision for housing needs of all economic segments of the community. e. The Legislature recognizes that in carrying out this responsibility, each local government also has the responsibility to consider economic, environmental, and fiscal factors and community goals set forth in the general plan and to cooperate with other local governments and the state in addressing regional housing needs. f. Designating and maintaining a supply of land and adequate sites suitable, feasible, and available for the development of housing sufficient to meet the locality’s housing need for all income levels is essential to achieving the state’s housing goals and the purposes of this article.

Table 1-1 summarizes the Housing Element requirements and identifies where these requirements are addressed in this document.

DRAFT

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Table 1-1: Housing Element Requirements
Housing Element Requirement(s) Government Code
Chapter
Section
Reference
Analysis of employment trends. Section 65583.a Appendix B Projection and quantification of existing and projected housing needs for all income groups. Section 65583.a Appendix B
Analysis and documentation of the City’s housing characteristics, including cost for housing compared to ability to pay, overcrowding, and housing condition.

Section 65583.a Appendix B
An inventory of land suitable for residential development including vacant sites and sites having redevelopment potential. Section 65583.a Appendix F Analysis of existing and potential governmental constraints upon the maintenance, improvement or development of housing for all income levels.

Section 65583.a Appendix C
Analysis of existing and potential nongovernmental (private sector) constraints upon maintenance, improvement or development of housing for all income levels.

Section 65583.a Appendix C
Analysis concerning the needs of the homeless. Section 65583.a Appendix B Analysis of special housing needs: handicapped, elderly, large families, farm workers, and female-headed households. Section 65583.a Appendix B Analysis of opportunities for energy conservation with respect to residential development. Section 65583.a Appendix D
Identification of Publicly Assisted Housing Developments. Section 65583.a Appendix E Identification of Units at Risk of Conversion to Market Rate Housing. Section 65583.a Appendix E Identification of the City’s goal relative to the maintenance, improvement, and development of housing. Section 65583.a Chapter 2
Analysis of quantified objectives and policies relative to the maintenance, improvement, and development of housing. Section 65583.b Chapter 2 Identification of adequate sites that will be made available through appropriate action with required public services and facilities for a variety of housing types for all income levels.

Section 65583.c(1) Appendix F
Identification of strategies to assist in the development of adequate housing to meet the needs of low and moderate-income households. Section 65583.c(2) Chapter 2 Description of the Public Participation Program in the formulation of Housing Element Goals, Policies, and Programs. Section 65583.d Appendix G Description of the Regional Housing Needs Allocation (RHNA) prepared by the Association of Monterey Bay Area (AMBAG) Governments. Section 65583.e Chapter 1 Analysis of Fair Housing, including Affirmatively Furthering Fair Housing. Section 8899.50 Appendix E Review of the effectiveness of the past Housing Element, including the City’s accomplishments during the previous planning period. Section 65583.f Appendix A Source: State of California, Department of Housing and Community Development.

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R E G I O N A L H O U S I N G N E E D S A L L O C A T I O N Government Code Section 65583 sets forth the requirements of local jurisdictions to provide their “fair share” of regional housing needs. RHNA is the methodology used for determining housing need by income category and is based on trends in population, households, and employment. The statewide determination is under the administration of California Department of Housing and Community Development (HCD), who reviews, certifies, and enforces Housing Elements. The quantified housing need is then allocated among the State’s 18 Metropolitan Planning Organizations (MPOs) – AMBAG for the City of Scotts Valley.

In accordance with California Government Code Section 65583, AMBAG is tasked with creating a methodology for distributing the RHNA to its member jurisdiction. The City’s RHNA is divided into four income categories, which is based on the Santa Cruz County HUD Area Median Family Income (HAMFI) for an assumed family of four. Table 1-2 identifies the Scotts Valley’s RHNA by household income category for the 2023-2031 planning period.

Table 1-2: City of Scotts Valley 6th Cycle RHNA by Income Category Income Category
Percent of HUD Area
Median Family Income
(HAMFI)
RHNA
Very Low-Income 0-50% HAMFI 392
Low-Income 51-80% HAMFI 257
Moderate-Income 81-120% HAMFI 154
Above Moderate-Income >120% HAMFI 417
Total RHNA 1,220
*The Scotts Valley AMI is $119,300 for a family of four, according to the 2022 HCD Income Limits.

R E L A T I O N S H I P T O O T H E R G E N E R A L P L A N

E L E M E N T S
The Housing Element works in tandem with all Scotts Valley General Plan Elements. The General Plan was adopted in 1994. In 2012 the City began the process to update the Plan through 2040. The other Elements of the Scotts Valley General Plan include those listed below.

The Housing Element must remain consistent with each of these Element.  Land Use
 Circulation
 Open Space and Conservation
 Noise
 Safety
 Public Service and Facilities
DRAFT
 Parks and Recreations

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The Land Use Element is the guide for decision makers on the pattern, distribution, density, and intensity of land uses that help the City achieve its vision for the future. By designating residential development, the Land Use Element establishes the densities and types of housing units constructed in the City. Land use patterns and decisions are influenced by:
 Population
 Economic growth (which create
market demand)
 Transportation access and
opportunities
 Availability of infrastructure
 Environmental constraints
 Quality of life reflected in parks
and recreational actives
 Look and feel of the City
 Cultural amenities
The presence and potential for jobs affects the current and future demand for housing at the various income levels in the City.

The Housing Element also works with the Circulation Element to connect housing, community resources and services, employment, and recreation. Scotts Valley’s Circulation Element supports continuing programs to improve travel by vehicles, bikes, and walking. It also provides guidance on expanding options for transit and active transportation. In conjunction with the Housing Element, the Circulation Element provides policies and incentives that consider the types of infrastructure essential for residential developments, in addition to mitigating the effects of growth in the City.

The Housing Element has been reviewed for consistency with the other General Plan Elements; policies and programs are consistent with the policy direction contained in other parts of the Scotts Valley General Plan. As portions of the General Plan are amended in the future, the Housing Element will be reviewed to ensure that internal consistency is maintained.

P U B L I C P A R T I C I P A T I O N
Public participation is a vital component to the Housing Element update process. Public engagement creates opportunities for community members to provide their input and feedback, information which then directs the Housing Element’s goals, policies, and programs.

Section 65583 of the Government Code states, "local government[s] shall make diligent effort to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort." Community participation ensures that a variety of stakeholders and community members are offered a platform to engage in the City’s planning process.

As required by Government Code Section 65585(b)(2), all written comments regarding the Housing Element have been provided to each member of the City Council. Appendix G contains all outreach conducted and public comments received during the update process.

DRAFT

The Housing Element’s fundamental priority is to
provide housing that fulfills the diverse needs of the
Scotts Valley community – the Housing Plan provides
the methodology to achieve that. The goals and
policies contained in this chapter address Scotts
Valley’s identified housing needs, which are
implemented by a series of housing programs.

Housing programs include current City efforts and
new initiatives that address the City’s unmet housing
needs and updates to State housing law.

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Goals, Policies & Programs
Goal H-1 Promote a balanced mix of housing types, prices, and opportunities by increasing the number of housing units to accommodate population and employment growth.

Policies
Policy H-1.1 Housing Variety
Encourage the production of new residential development which provides a choice of housing type, density, and cost to meet the housing needs of all segments of the community.

Policy H-1.2 Appropriate Infrastructure
Ensure that new residential sites have appropriate community services and public facilities, including streets and roadways, water, sewer, and other needed infrastructure.

Policy H-1.3 Mixed-Use Development
Facilitate and encourage the development of mixed-use residential and commercial projects at appropriate locations along major corridors, within established design guidelines.

Policy H-1.4 Affordable Housing Development Incentives and Concessions Offer regulatory incentives and concessions for affordable housing, such as modified development standards, density bonuses, or fee waivers where deemed to be appropriate.

Policy H-1.5 Town Center Specific Plan
Continue to support the development of Town Center to provide a range of housing types, retail, commercial uses, public facilities, and open space that serve as the focal point for the community.

Policy H-1.6 Quality Affordable Housing
Encourage density levels and incentives, for affordable housing, sufficient to DRAFT
facilitate the production of quality affordable housing.

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Programs
Program H-1.1 6th Cycle Regional Housing Needs Allocation The City has a total RHNA of 1,220. State law requires the City to identify sites to accommodate its fair share allocation for the 2023-2031 planning cycle. The City has identified housing unit capacity through projects in the pipeline, projected ADU development, and the Town Center Specific Plan. To meet the remaining RHNA need across all income categories, the City has identified the rezone actions listed below, including increased density residential rezones and mixed-use rezones with higher residential percentages at higher densities.

Additionally, the City shall continue to use the Town Center Specific Plan and appropriate zoning to ensure that adequate sites are available (as defined by Government Code section 65583) to accommodate the City’s RHNA for all income categories.

The City shall also monitor housing development city-wide on an ongoing basis to ensure that the sites identified in Appendix F are developed at densities appropriate for fulfilling its RHNA requirement for the 6th Cycle.

Should a project be approved on a sites with a lower density than that identified in the 6th Cycle Housing Element, the City will assess its continued ability to accommodate the RHNA. Should the project result in a shortfall in sites, the City will address the “No Net Loss” requirements by identifying additional sites to replenish the candidate sites inventory in accordance with State law within 180 days.

Actions:
 Residential Rezones: Adopt a zoning ordinance amendment to rezone 1.81 acres on 3 parcels (identified in Appendix F) to permit residential uses at an assumed density of 40 dwelling units per acre.

The rezoning would accommodate 191 units, including 76 lower income units.
 Mixed-Use Rezones: Adopt a zoning ordinance amendment to rezone

40.35 acres on 33 parcels (identified in Appendix F) to permit mixeduse developments at an assumed density of 40 dwelling units per acre with up to 70 percent residential. The rezoning would accommodate 796 units, including 316 lower income units.
 Town Center Specific Plan: Adopt a Specific Plan amendment to allow DRAFT
for residential development at the scale established in Appendix F.

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 Continue to implement appropriate zoning to ensure that adequate sites are available (as defined by Government Code section 65583) to accommodate the City’s RHNA for all income categories.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Adopt rezones within 3 years of the 6th Cycle Housing Element statutory deadline Program H-1.2 Sites Inventory Monitoring Program
Establish a Sites Inventory Monitoring Program consisting of an ongoing record of the number of units and income categories of the development approved on sites listed in the Housing Element, to ensure that the City at all times maintains an ongoing supply of available sites with appropriate densities to meet projected housing needs for all income categories. Make findings required by ‘no net loss’ law (Section 65863) if the City approves projects with fewer units or different income categories than shown in the Housing Element. If project approval results in fewer units in any income category to meet the City’s remaining RHNA, take action within 180 days to make adequate sites available.

Actions:
 Establish and maintain a Sites Inventory Monitoring Program.  Adopt findings with each City approval for residential projects identifying the breakdown of units by income category and establish whether the City is maintaining enough sites to accommodate the remaining RHNA, or if no net loss applies; if it does apply, the City has 180 days to make adequate sites available.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Establish a Sites Inventory Monitoring Program by January 2025; adopt findings with each City-approval for residential projects on a Housing Element site.

Program H-1.3 Planned Development
Provide development flexibility through the Planned Development District (PD). The PD District is designed to enable projects to modify specific development standards for a site that facilitate quality development and respond to unique site or environmental conditions. For example, a PD district allows smaller lots than normally allowed under the Zoning Code to preserve trees and sloped areas. In these cases, the PD district provides a DRAFT
means of flexibility to secure modifications to otherwise set development

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standards. PD districts are not pre-established throughout the City; rather, an applicant would apply for one if they were seeking to modify specific development standards.

Actions:
 Continue to provide flexible design through the PD zoning district.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: On a project-by-project basis.

Program H-1.4 Accessory Dwelling Unit Program
The City shall facilitate the development of Accessory dwelling units (ADUs; also referred to as secondary dwelling units or “granny units”) per State law requirements. ADUs are accessory to a primary residence and include complete independent living facilities. ADUs may be detached or attached to the primary structure; converted existing space, such as a garage, storage area, or similar use; or a Junior ADU (JADU) which is entirely contained within an existing or proposed single-family residence. Existing single-family parcels may provide a cost-effective solution for current housing needs through ADU development.

State law updates since 2016 have played an important role in facilitating ADU development. The City will amend its current “Secondary Dwelling Unit Program” to comply with State law requirements.

The City will establish an ADU monitoring program to track applications and affordability to ensure adequate ADU development is occurring to meet the 6th Cycle RHNA goals. The City will review ADU production and affordability levels annually to determine if assumptions made in the Housing Element are accurate. If assumptions are not met, and depending on the results of the survey, the City will take additional actions, which could include additional public outreach efforts, modifications to processes, further streamlining and incentivization, rezoning additional sites, or similar actions.

The City will also implement the actions listed in this Program as a means of promoting increased ADU development, as projected in Appendix F of this Housing Element, and facilitating the development of affordable ADUs.

Actions:
 Amend the current “Secondary Dwelling Unit Program” in compliance with State ADU laws. Submit revised ordinance to HCD in compliance DRAFT
with State law.

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 Establish and promote permit-ready ADU plans to minimize design costs, expedite permit processing, and provide development certainty.  Establish and maintain an ADU Manual guiding applicants through the permitting and construction of an ADU.
 Establish and maintain an ADU webpage informing the community on ADU related codes, processes, and incentives.
 Establish an incentive program for deed-restricted affordable ADUs such as waived permitting fees and/or priority processing.  Establish an ADU monitoring program, and biennially review, for development trends for potential gaps. If gaps are identified, implement changes within one year.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Amend the “Secondary Dwelling Unit Program” by January 2025; Establish permit-ready ADU plans, an ADU Manual, an ADU webpage, an incentives program, and an ADU monitoring program by January 2026
Program H-1.5 Removal of Residential Development Constraints The City shall facilitate housing development, particularly affordable housing, by reviewing residential development standards for possible constraints. The City will continue to monitor development trends and meet with the development community to discuss the permitting and development process.

As of May 2023, the City requires two parking spaces for each multi-family dwelling units, plus one space for each five units. Per HCD guidance, this requirement may create a constraint to the development of affordable housing units. The City will conduct research and adopt changes to the parking requirements to address this constraint.

Actions:
 Research and adopt an amendment to residential development standards to remove constraints from parking requirements for multifamily developments.  Annually review development trends and biennially meet with the development community to receive input and feedback. If constraints are identified that inhibit the development of affordable housing, DRAFT
adopt changes with two years.

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Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Adopt an amendment to parking standards for multi-family developments by January 2027; Annually review development trends and biennially meet with the development community; if constraints are identified throughout the Planning Period, adopt changes within two years.

Program H-1.6 Mixed-Use Development
The City shall continue to allow for mixed-use developments along corridors to create opportunities for higher density residential paired with commercial uses that promote convenient access to jobs, shopping services, recreation, and multi-modal transportation. Residents in these developments and adjacent neighborhoods may benefit from less dependency on single-vehicle occupancy resulting in decreased congestion, reduced emissions, and decreased household expenses for vehicle use.

Through Program H-1.1, the City shall rezone 33 parcels to allow for a density of 40 dwelling units per acre and a residential component of 70 percent in order to facilitate the development of 796 possible units.

Actions:
 Establish development incentives for mixed-use developments along corridors.
 Annually meet with the development community and property owners to identify development opportunities and interest.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Establish development incentives in conjunction with the rezones; annually meet with the development community and property owners
Program H-1.7 Facilitation of Affordable Housing Development In addition to rezoning strategies to facilitate affordable housing development, the City shall expand the existing Inclusionary Housing Ordinance city-wide.

The City shall also collaborate with affordable housing developers to identify opportunities, incentives, and funding to facilitate affordable housing development.

Actions:

DRAFT  Amend the City’s Inclusionary Housing Ordinance to apply city-wide.

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 Annually meet with the development community and property owners to identify opportunities, incentives, and funding to facilitate affordable housing development.
 Create and maintain information on the City’s website on the development of affordable housing.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Amend the Inclusionary Housing Ordinance by January 2027; Meet with the development community and property owners annually; create an informational webpage by January 2027 Goal H-2 Foster high-quality, safe, and livable housing and residential neighborhoods through the preservation of Scotts Valley’s current housing stock. Preserve the City’s supporting services and programs that are intended to maintain and preserve the quality, the continued availability, and the affordability of housing and the City’s residential neighborhoods.

Policies
Policy H-2.1 Property Maintenance Standards
Maintain the quality of ownership and rental housing through periodic revision and enforcement of housing and property maintenance standards.

Policy H-2.2 Access to Infrastructure
Continue to support the repair and upgrade of infrastructure, services, and public facilities in existing neighborhoods.

Policy H-2.3 High Quality Residential Design
Continue to ensure residential projects are of high quality and thoughtful design through the implementation of architectural and design standards.

Policy H-2.4 Preservation of Affordable Housing
Preserve the supply of affordable rental housing, including mobile home DRAFT
parks, and subsidized rental housing, and special needs housing.

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Programs
Program H-2.1 Code Enforcement
Continue to enforce City ordinances related to property maintenance, building conditions, and other issues through the City’s Building Department.

Zoning and building codes are designed to preserve housing in good condition and maintain the quality of neighborhoods.

Actions:
 Continue to implement a proactive code enforcement program through the Building Department and inform residents of rehabilitation assistance grants when available at City Hall and on the City’s website.
 Conduct a biennial review of code enforcement cases to identify potential trends in the location or type of case. Adopt prevention and assistance programs if trends are identified to proactively decrease future issues.

Responsible Agency: Planning and Building Departments
Funding Source: General Fund
Timeframe: Implement a proactive code enforcement program throughout the Planning Period; provide information at City Hall and online by January 2027; Conduct a biennial review of cases – if trends are identified adopt prevention assistance programs within one year Program H-2.2 Design Review
Continue to require Design Review to ensure that new housing projects blend in with the character of the neighborhood, respect topographical and environmental features in Scotts Valley, and ensure compatibility with surrounding land uses. Design Review is required for mixed-use projects, multifamily residential projects, and projects located in the hillside combining district.

Actions:
 Continue to review projects to ensure consistency with the General Plan Zoning Ordinance and area design guidelines. Priority processing will go to affordable housing projects.
 Review the Residential Design Handbook and design review process for subjective language and adopt modifications.

DRAFT  Adopt objective design standards for all residential uses.

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Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Review projects and provide priority to affordable housing projects as applications are submitted; Review the Residential Design Handbook and design review process by January 2025; Adopt objective design standards by January 2025
Program H-2.3 Monitor and Preserve Affordable Housing
The City will inventory and gather information to proactively monitor publicly assisted housing units that have the potential to convert to market rate.

Appendix E of this Housing Element identifies 22 affordable units at-risk of conversion through 2033.

The City will continue to monitor the status of projects and provide technical and financial assistance as feasible to ensure the projects remain affordable for the long-term.

Actions:
 Continue to maintain the Affordable Housing Opportunities Database with detailed information on all subsidized units, including those that have affordability covenants.
 Pursue funding sources such as HUD Section 208/811 loans, HOPE II and II Homeownership Program funds, HOME funds, CDBG funds, Low-Income Housing Tax Credit Programs, California Housing Finance Agency single-family and multi-family programs, and other similar programs to stimulate private developer and non-profit entity efforts in the development and financing of housing for lower and moderateincome households.  Pursue partnership opportunities with non-profits to preserve and expand affordable housing in the City.
 Coordinate with property owners to preserve affordable units at risk to maintain and extend affordability. This may include technical assistance, funding application support, and/or recommending agencies or organizations that may provide additional assistance.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Maintain the Affordable Housing Opportunities Database throughout the Planning Period; Annually pursue funding sources and partnerships until at-risk units are maintained; Begin coordination with property owners upon adoption of the Housing Element and outreach annually until at-risk units are maintained
DRAFT

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Program H-2.4 Mobile Home Park Conversion Ordinance
Continue to implement the City’s Mobile Home Park Conversion Ordinance which recognizes that the unrestricted conversion of mobile home parks to other uses can further diminish the availability of mobile home parks and rental space and can subject tenants to the costs and inconvenience of relocation. The Ordinance provides a formal application procedure for mobile home park conversion and requires approval by the Planning Commission or City Council.

Actions:
 Continue to implement the Mobile Home Park Conversion Ordinance in an effort to protect existing mobile home parks and the supply of affordable housing, subject to the limitations imposed by State law.  Provide information on the Mobile Home Park Conversion Ordinance and other fair housing information on the City’s website and at City Hall.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Implement the Mobile Home Park Conversion Ordinance throughout the Planning Period; Provide information at City Hall and online by January 2027 Program H-2.5 Mobile Home Park Rent Stabilization Ordinance Continue to implement the Mobile Home Park Rent Stabilization Ordinance which recognizes the need to protect the residents of mobile homes from unreasonable space rent increases, while at the same time recognizing the need for mobile home park owners to receive a reasonable income and return on investment. The City receives, investigates, and holds hearings on requests for rent adjustments through the City’s Mobile Home Rent Review Commission.

Actions:
 Continue to implement the Mobile Home Park Rent Stabilization Ordinance in an effort to promote and enhance fairness in the economic relationship between mobile home park owners and mobile homeowners.
 Provide information on the Mobile Home Park Conversion Ordinance and other fair housing information on the City’s website and at City Hall.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Implement the Mobile Home Park Rent Stabilization Ordinance throughout the Planning Period; Provide information at City Hall and online by January 2027 DRAFT

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Goal H-3 Expand and protect a range of housing opportunities for all demographic, economic, and special needs groups in the
community.

Policies
Policy H-3.1 Housing for Special Needs Groups
Encourage the provision of support and housing services for special needs groups, including seniors, large families, disabled persons, persons with developmental disabilities, single parents, college students, persons experiencing homelessness, farmworkers, and others.

Policy H-3.2 Partnerships with Nonprofit Housing and Service Providers Work with nonprofit housing and service providers to ensure that housing and supportive service needs of residents are met.

Policy H-3.3 Promote Equal Housing Opportunities
Promote equal housing opportunities and discourage discrimination in the sale, rental, or occupancy of housing.

Programs
Program H-3.1 Promoting Housing Choice Voucher (HCV) Program The City shall promote the Housing Choice Voucher (HCV) Program which extends rental subsidies to very low-income households. The program offers a voucher that pays the difference between the current fair market rent established by the Santa Cruz County Housing Authority and what a tenant can afford to pay (i.e. 30 percent of household income).

The HCV Program also includes a homeownership opportunity – renters who have participated in the Program for a minimum of one year, are ready to buy a house, and are pre- qualified for a mortgage loan from a participating lender, may have their monthly housing assistance payment applied to a mortgage payment rather than rent. A three percent down-payment is required to be paid by the prospective homebuyer. As the City has little control over how the County’s programs are administered, the City will DRAFT
facilitate information sharing and coordination with the County.

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Actions:
 Continue to participate with the Housing Authority of Santa Cruz County Voucher Rental Assistance Program.
 Annually host an informational workshop with the Housing Authority of Santa Cruz County for renters, property owners, and prospective homeowners to provide information on the voucher program and source of income discrimination, as well as increase participating properties.
 Continue to refer residents to the County program and provide information at City Hall and on the City’s website.
 Biennially outreach to property owners and landlords to market the voucher program and enforce State law banning source of income discrimination.

Responsible Agency: Planning Department; Housing Authority of Santa Cruz County Funding Source: HUD HCD Fund
Timeframe: Continue to participate in the Housing Authority of Santa Cruz County Voucher Rental Assistance Program and refer residents throughout the Planning Period; Annually host a workshop; Biennially outreach to property owners
Program H-3.2 Affirmatively Furthering Fair Housing
Pursuant to Assembly Bill 686 (AB 686), the City shall affirmatively further fair housing by taking meaningful actions that foster inclusive communities free from barriers that restricts access to opportunities based on protected characteristics, as defined by State law.

Based on analysis in Appendix E, Scotts Valley is made up of high resource areas with high economic, education, and in proximity to employment sources. Scotts Valley households may currently be defined as mostly White, affluent, and with no risk of displacement. Residents in the City also benefit from very low environmental burdens. Given the City’s high quality level of living and access to resources, this program’s actions aim to create opportunities for increased diversity and access to a variety of affordable housing options. The actions also aim to protect the City’s existing lower income population from possible displacement. In the process, the City shall collaborate with the community, stakeholders, and appropriate organizations DRAFT
and agencies to address potential fair housing issues.

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Actions Geographic
Target Timeframe
Housing Mobility Strategies
Create and promote informational materials on the location of participating voucher properties and availability of voucher programs/financial assistance. See Action H-3.1.

City-wide. By January 2026;
throughout the Planning
Period
Annually outreach to landlords to expand the location of participating voucher properties.

Census tracts

12.08, 12.09,

12.12. Annually throughout the
Planning Period
Partner with the Santa Cruz Housing Authority to host an annual educational workshop on voucher programs and source of
income discrimination.

City-wide. Annually throughout the
Planning Period
Extend housing choice voucher search times for particular groups, such as larger families with children or persons with disabilities. Aim to assist 20 households with special needs access housing choice vouchers.

City-wide and
aimed at
special housing
needs
populations in
the City.

By January 2026
Affirmatively market government assistance and new affordable housing units, as available, to community organizations and agencies assisting lower income households in the region.

Promote the information in multiple languages on the City’s website and at City Hall.

City-wide with
a goal of
addressing
RCAAs.

As new units and
resources become
available; annually
throughout the Planning
Period
New Housing Choices and Affordability in Areas of Opportunity Continue to implement the Inclusionary Housing Below Market Rate (BMR) Program.

City-wide and
on candidate
sites.

Throughout the Planning
Period and as project
applications are
submitted
Facilitate the development of ADUs at affordable rates. See Action H-1.3.

City-wide and
with added
focus on singlefamily
neighborhoods.

Throughout the Planning
Period
Facilitate the development of affordable housing units for special housing needs population. This may include, but is not limited to, technical assistance, support for funding applications, permitting fee waivers, and development standards
concessions, and other similar actions.

Along Mount
Hermon Road
and Scotts
Valley Drive – in
close proximity
to community
resources and
services.

Throughout the Planning
Period and as project
applications are
submitted
Review future policies and programs for potentially restrictive practices that would limit diversity in the Racially Concentrated Areas of Affluence (RCAAs).

Census tracts

12.08, 12.09,

12.12. Throughout the Planning
Period
Establish specific incentives for the development of affordable units in the RCAAs including, but not limited to, permit streamlining and reduced fees.

Census tracts

12.08, 12.09,

12.12. DRAFT
By January 2026

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Actions Geographic
Target Timeframe
Place-Based Strategies to Encourage Community Conservation and Revitalization Create and promote informational materials on housing
accessibility, rehabilitation, and maintenance resources.

Materials to be distributed at the senior center, library, Civic Center, and at community events. Aim to provide home repair and rehabilitation assistance for at least 20 households.

City-wide By January 2026;
materials to be
distributed and promoted
annually
Annually hold a community workshop or webinar with relevant community organizations and agencies to discuss and promote available resources.

City-wide Annually
Protecting Existing Residents from Displacement
Annually hold a community workshop with relevant community organizations and agencies to discuss the needs of persons with disabilities and identify whether additional resources and development concessions are needed. If necessary changes are identified, adopt amendments within 6 months.

City-wide Annually; adopt
necessary changes within
6 months
Establish an accessibility program to improve access to housing, transit, public buildings and facilities, sidewalks, pedestrian crossings, and businesses for persons with disabilities.

City-wide By January 2026
Pursue at least 2 funding opportunities to address accessibility for persons with disabilities.

City-wide Annually
Provide information and educational materials on fair housing services for property owners, apartment managers, and tenants at City Hall and online.

City-wide Annually throughout the
Planning Period
Monitor and respond to complaints of discrimination and refer tenants to the California Department of Fair Employment and Housing for proper intake, investigation, and resolution of fair housing complaints.

City-wide As complaints are
submitted
Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: See individual actions
DRAFT

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Program H-3.3 Childcare and Daycare Facilities
The City shall continue to make high quality childcare services available, affordable, and accessible to those persons who either live or work in the City and who desire or need such services. Scotts Valley recognizes that children represent our future community, but also recognizes that existing childcare services and facilities may not be adequate to meet today’s increasing demand. To ignore this fact jeopardizes the long-term quality of the City’s social, physical, and economic well-being.

Actions:
 Continue to work with childcare providers and the County to promote adequate childcare facilities within the community.
 Provide information at City Hall and on the City’s website on current zoning regulations that apply to childcare and daycare facilities.  Continue to encourage new development to provide childcare and daycare facilities through a variety of activities, including outreaching to developers; providing financial assistance, when available; providing expedited processing; identifying grant and funding opportunities; and providing information on the City’s Density Bonus Ordinance.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Continue to work with childcare providers and the County throughout the Planning Period; Provide information at City Hall and online by January 2027; Coordinate with developers on a project-by-project basis
Program H-3.4 Reasonable Accommodation
In compliance with Government Code Section 65583, the City shall remove potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels and for persons with disabilities. The Fair Housing Act, as amended in 1988, requires that cities and counties provide reasonable accommodation to rules, policies, practices, and procedures where such accommodation may be necessary to afford individuals with disabilities equal housing opportunities. Reasonable accommodation provides a basis for residents with disabilities to request flexibility in the application of land use and zoning regulations or, in some instances, even a waiver of certain restrictions or requirements from the local government to ensure equal access to housing opportunities. In general, City Staff takes into consideration the provisions of the California DRAFT
Americans with Disabilities Act (Cal ADA) in the review and approval of

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housing projects and grants modifications and deviations from the Municipal Code to accommodate the needs of persons with disabilities. The City shall continue to implement the Reasonable Accommodation Ordinance adopted in 2014.

Actions:
 Maintain updated information online on the reasonable accommodation ordinance, including information on the application process, fees, and requirements.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: By January 2026
Program H-3.5 Housing for Persons with Developmental Disabilities The City shall promote and facilitate the development of housing for persons with developmental disabilities. The housing needs of persons with developmental disabilities are typically not addressed by Title 24 (California Building Standards Code) regulations or local zoning regulations and may require modifications to existing units and/or a varying range of supportive housing facilities. The design of housing accessibility modifications, the proximity to services and transit, and the availability of group living opportunities represent some of the types of considerations that are important in serving this population. Incorporating “barrier-free” design in all new multi-family housing (as required by California and Federal Fair Housing laws) is especially important to provide the widest range of choices for residents with disabilities.

Actions:
 Encourage construction and rehabilitation of housing with supportive services by reviewing and identifying regulatory incentives for projects proposing housing for persons with developmental disabilities.
 Seek State and Federal funding to support housing construction for persons with developmental disabilities.
 Collaborate with housing developers and local organizations to identify the needs of local persons with developmental disabilities.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Review regulatory incentives by January 2027; Annually seek funding opportunities; Biennially collaborate with developers and organizations DRAFT

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Program H-3.6 Housing for Lower Income Households
The City shall work with developers and property owners in identifying development options to create affordable housing units for extremely low-, very low-, and low-income households who may have limited housing options in Scotts Valley.

Actions:
 Coordinate with housing developers, property owners, and local organizations to identify development opportunities, funding resources, and incentives.
 Meet with housing developers to discuss available programs and fundings sources to develop housing units affordable to lower income households.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Annually coordinate and meet with developers, property owners, and local organizations Program H-3.7 Definition of Family
The City shall amend its definition of “Family” to remove limitations to the number of unrelated persons and differentiation between related and unrelated individuals living together, as prohibited by the California Constitution.

Actions:
 Adopt a zoning ordinance amendment to update the definition of “family” in compliance with State law.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: In conjunction with the ongoing General Plan update, which will be completed by the end of 2024.

Program H-3.8 Agricultural and Employee Housing
The City shall adopt a zoning ordinance amendment consistent with the requirements of Health and Safety Codes Section 17021.5 and 17021.6.

Sections 17021.5 and 17021.6 of the State Health Safety Code are part of the Employee Housing Act, and it sets standards for the construction, maintenance, use, and occupancy of living quarters called “employee DRAFT
housing” as defined in Section 17008 of the Health and Safety Code. The

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intent of these two sections is to broaden opportunities for agricultural employee housing in single-family residential zoning districts.

Actions:
 Adopt a zoning ordinance amendment consistent with the requirements of Health and Safety Codes Section 17021.5 and 17021.6 as it relates to agricultural and employee housing.

Responsible Agency: Planning Departments
Funding Source: General Fund
Timeframe: By January 2025
Program H-3.9 Emergency Shelters
The City shall facilitate the development of emergency shelters and similar housing types to address the needs of persons experiencing homelessness or those at-risk of homelessness. While persons experiencing homelessness represent a small percent of the Scotts Valley population, they represent an important segment of the regional population for whom housing and assistance must be addressed. No emergency shelters are currently located within the City’s boundaries; however, they are permitted without discretionary permits in the C-SC, P, and C-S districts.

Actions:
 Amend the City’s Zoning Ordinance for parking requirements for emergency shelters in compliance with AB 139.
 Adopt a Zoning Ordinance amendment to expand the definition of “emergency shelters” to include other interim interventions, including, but not limited to, navigation centers, bridge housing, and respite or recuperative care.
 Create and monitor an inventory of sites appropriate to accommodate emergency shelters and work with the appropriate organizations to ensure the needs of homeless and extremely lowincome residents are addressed.  Prioritize available funding and other available incentives for projects that provide housing for homeless and extremely low-income residents.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Adopt amendments and create an inventory of sites to accommodate emergency shelters by January 2026; Prioritize funding and other incentives on a project-by-project basis DRAFT

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Program H-3.10 Density Bonus Ordinance
The City shall update its Density Bonus Ordinance to comply with State law, as well as promote the Program as a means of developing additional affordable housing units. State density bonus law (Government Code Section 65915 et seq.) requires a density bonus of up to 50 percent for mixed income projects when a qualifying percentage of Below Market Rate (BMR) units are proposed.

Entirely affordable projects are entitled to unlimited bonuses in some cases and up to 80 percent bonuses in other cases. State density bonus law also authorizes an applicant to receive incentives/concessions, waivers, and parking reductions.

Actions:
 Adopt a Density Bonus Ordinance amendment in compliance with State density bonus law.
 Promote the Density Bonus Ordinance to multi-family developers on a project-by-project basis to promote affordable housing unit development.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: By January 2026; on a project-by-project basis Program H-3.11 Low Barrier Navigation Centers
The City shall adopt a zoning ordinance amendment to approve by-right lowbarrier navigation centers that meet State requirements. Low-barrier navigation centers are generally defined as service-enriched temporary living facilities focused on the transition of persons experiencing homelessness or at-risk of becoming homeless into permanent housing. Low-barrier navigation centers connect individuals to income, public benefits, health services, and housing. Government Code section 65660 et seq. requires byright approval of low-barrier navigation centers that meet specified State requirements, including: access to permanent housing, use of a coordinated entry system (i.e. Homeless Management Information System), use of Housing First according to Welfare and Institutions Code section 8255 (Government Code section 65662).

Actions:
 Adopt a zoning ordinance amendment to approve low-barrier DRAFT
navigation centers that meet State requirements by-right.

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Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: By January 2026
Program H-3.12 Condominium Conversion Ordinance
Rental housing units provide an important part of the City’s housing stock, particularly in providing housing affordable to a wider range of the community. The City shall adopt a Condominium Conversion Ordinance to preserve the existing, and future, rental housing stock by establishing a maximum percent of the City’s total housing stock that can be converted over a certain period of time. The Ordinance shall also establish tenant notification and relocation assistance requirements, limit rent increases once a notice of intent to convert has been filed and give tenants the priority to purchase units.

Actions:
 Adopt a Condominium Conversion Ordinance.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: By January 2026
Goal H-4 Protect its unique sensitive environmental, archaeological, and paleontological assets and encourage resource conservation measures in all new housing developments.

Policies
Policy H-4.1 Resource Conservation
Work with other local, State, and federal agencies, public utilities, and community organizations to implement resource conservation programs and ensure that adequate water remains available.

Policy H-4.2 New Development Impacts
Ensure that new development proposals are adequately evaluated for their impact upon cultural resources, sensitive habitats and species, environmental features, and other such factors.

Policy H-4.3 Development Integration into Natural Landscape DRAFT
Require that all residential developments be thoughtfully integrated into the

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natural environment, including woodlands, hillsides, viewsheds, wetlands, and other features of the natural terrain.

Programs
Program H-4.1 Hillside Development and Design
Scotts Valley is located in the Santa Cruz Mountains and has many areas with slopes of varying degrees of steepness. The City shall continue to protect environmental resources by implementing the City’s Zoning Code regulations and development standards for hillside development. For instance, the Code prohibits development on slopes with an average grade of more than 40 percent. For slopes where development is permitted, the City provides design guidelines to the project applicant(s) to ensure that hillsides are preserved. For slopes greater than 10 percent, the City has established a Hillside Residential Combining District, which requires a variety of development and design standards to help preserve and conserve natural vegetative and topographic features and open space. City staff and/or the Design Review Board (Planning Commission) are responsible to review the project to ensure that applicable standards have been fully addressed.

Actions:
 Maintain information online and at City Hall on hillside development and design.

Responsible Agency: Planning Department; water and sewer service providers Funding Source: General Fund
Timeframe: Provide information by January 2027; Coordinate with developers on a projectby-project basis Program H-4.2 Resource Conservation
The City shall continue to encourage the conservation of resources in the development and improvement of new housing. Buildings should be designed to minimize mechanical heating and cooling. Sunlight should be used for direct heating and illumination, whenever possible. Natural ventilation and shading should be used to cool a building. Active and passive solar heating is encouraged. Solar access shall be planned into the site design where possible. Solar access shall be reserved, where appropriate, through recorded easements or other devices or instruments. Climatic factors such as DRAFT
prevailing winds, shade trees, window and door orientation and the

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positioning of buildings on the site shall all be coordinated to maximize energy conservation.

Actions:
 Encourage energy conservation measures and devices to be incorporated in the development and improvement of housing. Review such requirements through the Design Review and Building Permit process.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: On a project-by-project basis
Program H-4.3 Water and Sewer Service Providers
Pursuant to Chapter 727, Statues of 2005 (SB 1087), the City shall deliver its adopted Housing Element, and any amendments thereto, to local water and sewer service providers. This legislation allows for coordination between the City, water, and sewer providers when considering approval of new residential projects, and to ensure that the providers have an opportunity to provide input on the Element. Additionally review of the Housing Element ensures that priority for water and sewer services is granted to projects that include units affordable to lower-income households.

Actions:
 Submit the adopted 6th Cycle Housing Element, and any subsequent amendments, to local water and sewer providers for their review and input.

Responsible Agency: Planning Department; water and sewer service providers Funding Source: General Fund
Timeframe: Immediately upon adoption of the 6th Cycle Housing Element and any subsequent amendments
Program H-4.4 Cultural Resources
The City shall continue to protect sensitive cultural resources. Scotts Valley’s location on an ancient seabed has contributed to a wealth of archaeological and paleontological resources in the community today. In fact, the present City Hall site contains a 10,000- to 15,000-year old archaeological site. The General Plan designates various areas throughout the community as moderate or high cultural resource sensitivity zones. In these areas, development proposals must have appropriate environmental clearance DRAFT
pursuant to State and federal laws, which is reviewed by the City’s Cultural

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Resource Commission. Procedures and scope of authority of the Commission is set forth in Chapter 17.44 of the Scotts Valley Municipal Code.

Actions:
 Continue to review cultural resources through the Cultural Resource Commission.

Responsible Agency: Planning Department; water and sewer service providers Funding Source: General Fund
Timeframe: On a project-by-project basis
DRAFT

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Housing Actions Implementation Summary
Table 2-1: Housing Program Implementation Summary
Housing Program Actions Responsible
Agency
Funding
Source Timeframe
Goal 1
Program H-1.1
6 th Cycle Regional Housing Needs Allocation
Adopt a zoning ordinance amendment to rezone 1.81 acres on 3 parcels (identified in Appendix F) to permit residential uses at an assumed density of 40 dwelling units per acre.

The rezoning would accommodate 191 units, including 76
lower income units.

Planning
Department
General Fund Adopt rezones within 3
years of the 6th Cycle
Housing Element statutory
deadline.

Adopt a zoning ordinance amendment to rezone 40.35
acres on 33 parcels (identified in Appendix F) to permit mixed-use developments at an assumed density of 40
dwelling units per acre with up to 70 percent residential.

The rezoning would accommodate 796 units, including 316 lower income units.

Adopt a Specific Plan amendment to allow for residential development at the scale established in Appendix F.

Continue to implement appropriate zoning to ensure that adequate sites are available (as defined by Government
Code section 65583) to accommodate the City’s RHNA for
all income categories.

Program H-1.2
Sites Inventory Monitoring Program
Establish and maintain a Sites Inventory Monitoring
Program.

Planning
Department
General Fund Establish a Sites Inventory
Monitoring Program by
January 2025; adopt
findings with each Cityapproval for residential
projects on a Housing
Element site.

Adopt findings with each City approval for residential
projects identifying the breakdown of units by income
category and establish whether the City is maintaining
enough sites to accommodate the remaining RHNA, or if no net loss applies; if it does apply, the City has 180 days to make adequate sites available.

Program H-1.3
Planned Development
Continue to provide flexible design through the PD zoning district.

Planning
Department
General Fund On a project-by-project
basis.

DRAFT

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Housing Program Actions Responsible
Agency
Funding
Source Timeframe
Program H-1.4
Accessory Dwelling Unit Program
Amend the current “Secondary Dwelling Unit Program” in
compliance with State ADU laws. Submit revised ordinance to HCD in compliance with State law.

Planning
Department
General Fund Amend the “Secondary
Dwelling Unit Program” by
January 2025; Establish
permit-ready ADU plans,
an ADU Manual, an ADU
webpage, an incentives
program, and an ADU
monitoring program by
January 2026.

Establish and promote permit-ready ADU plans to minimize design costs, expedite permit processing, and provide
development certainty.

Establish and maintain an ADU Manual guiding applicants through the permitting and construction of an ADU.

Establish and maintain an ADU webpage informing the
community on ADU related codes, processes, and
incentives.

Establish an incentive program for deed-restricted
affordable ADUs such as waived permitting fees and/or
priority processing.

Establish an ADU monitoring program, and biennially
review, for development trends for potential gaps. If gaps are identified, implement changes within one year.

Program H-1.5
Removal of Residential
Development Constraints
Research and adopt an amendment to residential
development standards to remove constraints from
parking requirements for multi-family developments.

Planning
Department
General Fund Adopt an amendment to
parking standards for
multi-family developments
by January 2027; Annually
review development
trends and biennially meet
with the development
community; if constraints
are identified throughout
the Planning Period, adopt
changes within two years.

Annually review development trends and biennially meet
with the development community to receive input and
feedback. If constraints are identified that inhibit the development of affordable housing, adopt changes with
two years.

Program H-1.6
Mixed-Use Development
Establish development incentives for mixed-use
developments along corridors.

Planning
Department
General Fund Establish development
incentives in conjunction
with the rezones; annually
DRAFT

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Housing Program Actions Responsible
Agency
Funding
Source Timeframe
Annually meet with the development community and
property owners to identify development opportunities
and interest.
meet with the
development community
and property owners.

Program H-1.7
Facilitation of Affordable
Housing Development
Amend the City’s Inclusionary Housing Ordinance to apply city-wide.

Planning
Department
General Fund Amend the Inclusionary
Housing Ordinance by
January 2027; Meet with
the development
community and property
owners annually; create an
informational webpage by
January 2027.

Annually meet with the development community and
property owners to identify opportunities, incentives, and funding to facilitate affordable housing development.

Create and maintain information on the City’s website on the development of affordable housing.

Goal 2
Program H-2.1
Code Enforcement
Continue to implement a proactive code enforcement
program through the Building Department and inform
residents of rehabilitation assistance grants when available at City Hall and on the City’s website.

Planning and
Building
Departments
General Fund Implement a proactive
code enforcement
program throughout the
Planning Period; provide
information at City Hall
and online by January
2027; Conduct a biennial
review of cases – if trends
are identified adopt
prevention assistance
programs within one year.

Conduct a biennial review of code enforcement cases to
identify potential trends in the location or type of case.

Adopt prevention and assistance programs if trends are
identified to proactively decrease future issues.

Program H-2.2
Design Review
Continue to review projects to ensure consistency with the General Plan Zoning Ordinance and area design guidelines.

Priority processing will go to affordable housing projects.

Planning
Department
General Fund Review projects and
provide priority to
affordable housing
projects as applications
are submitted; Review the
Residential Design
Handbook and design
review process by January
2025; Adopt objective
Review the Residential Design Handbook and design review process for subjective language and adopt modifications.

Adopt objective design standards for all residential uses.

DRAFT

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Housing Program Actions Responsible
Agency
Funding
Source Timeframe
design standards by
January 2025
Program H-2.3
Monitor and Preserve
Affordable Housing
Continue to maintain the Affordable Housing Opportunities Database with detailed information on all subsidized units, including those that have affordability covenants.

Planning
Department
General Fund Maintain the Affordable
Housing Opportunities
Database throughout the
Planning Period; Annually
pursue funding sources
and partnerships until atrisk units are maintained;
Begin coordination with
property owners upon
adoption of the Housing
Element and outreach
annually until at-risk units
are maintained
Pursue funding sources such as HUD Section 208/811
loans, HOPE II and II Homeownership Program funds,
HOME funds, CDBG funds, Low-Income Housing Tax Credit
Programs, California Housing Finance Agency single-family and multi-family programs, and other similar programs to stimulate private developer and non-profit entity efforts in the development and financing of housing for lower and
moderate-income households.

Pursue partnership opportunities with non-profits to
preserve and expand affordable housing in the City.

Coordinate with property owners to preserve affordable
units at risk to maintain and extend affordability. This may include technical assistance, funding application support, and/or recommending agencies or organizations that may
provide additional assistance.

Program H-2.4
Mobile Home Park Conversion
Ordinance
Continue to implement the Mobile Home Park Conversion
Ordinance in an effort to protect existing mobile home
parks and the supply of affordable housing, subject to the limitations imposed by State law.

Planning
Department
General Fund Implement the Mobile
Home Park Conversion
Ordinance throughout the
Planning Period; Provide
information at City Hall
and online by January
2027
Provide information on the Mobile Home Park Conversion
Ordinance and other fair housing information on the City’s website and at City Hall.

Program H-2.5
Mobile Home Park Rent
Stabilization Ordinance
Continue to implement the Mobile Home Park Rent
Stabilization Ordinance in an effort to promote and
enhance fairness in the economic relationship between
mobile home park owners and mobile homeowners.

Planning
Department
General Fund Implement the Mobile
Home Park Rent
Stabilization Ordinance
DRAFT
throughout the Planning

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Housing Program Actions Responsible
Agency
Funding
Source Timeframe
Provide information on the Mobile Home Park Conversion
Ordinance and other fair housing information on the City’s website and at City Hall.

Period; Provide
information at City Hall
and online by January
2027.

Goal 3
Program H-3.1
Promoting Housing Choice Voucher
(HCV) Program
Continue to participate with the Housing Authority of Santa Cruz County Voucher Rental Assistance Program.

Planning
Department;
Housing Authority
of Santa Cruz
County

HUD HCD
Fund
Continue to participate in
the Housing Authority of
Santa Cruz County
Voucher Rental Assistance
Program and refer
residents throughout the
Planning Period; Annually
host a workshop;
Biennially outreach to
property owners.

Annually host an informational workshop with the Housing Authority of Santa Cruz County for renters, property
owners, and prospective homeowners to provide
information on the voucher program and source of income discrimination, as well as increase participating properties.

Continue to refer residents to the County program and
provide information at City Hall and on the City’s website.

Biennially outreach to property owners and landlords to market the voucher program and enforce State law
banning source of income discrimination.

Program H-3.2
Affirmatively Furthering Fair
Housing
Housing Mobility Strategies
Create and promote informational materials on the
location of participating voucher properties and availability of voucher programs/financial assistance. See Action H-3.1.

Planning
Department
General Fund By January 2026;
throughout the Planning
Period
Annually outreach to landlords to expand the location of participating voucher properties.

Planning
Department
General Fund Annually throughout the
Planning Period
Partner with the Santa Cruz Housing Authority to host an annual educational workshop on voucher programs and
source of income discrimination.

Planning
Department
General Fund Annually throughout the
Planning Period
Extend housing choice voucher search times for particular groups, such as larger families with children or persons with disabilities. Aim to assist 20 households with special needs access housing choice vouchers.

Planning
Department
General Fund By January 2026
Affirmatively market government assistance and new
affordable housing units, as available, to community
organizations and agencies assisting lower income
Planning
Department
General Fund As new units and
resources become
DRAFT
available; annually

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Housing Program Actions Responsible
Agency
Funding
Source Timeframe
households in the region. Promote the information in
multiple languages on the City’s website and at City Hall. throughout the Planning
Period
New Housing Choices and Affordability in Areas of Opportunity Continue to implement the Inclusionary Housing Below
Market Rate (BMR) Program.

Planning
Department
General Fund Throughout the Planning
Period and as project
applications are submitted
Facilitate the development of ADUs at affordable rates. See Action H-1.3.

Planning
Department
General Fund Throughout the Planning
Period
Facilitate the development of affordable housing units for special housing needs population. This may include, but is not limited to, technical assistance, support for funding applications, permitting fee waivers, and development
standards concessions, and other similar actions.

Planning
Department
General Fund Throughout the Planning
Period and as project
applications are submitted
Review future policies and programs for potentially
restrictive practices that would limit diversity in the Racially Concentrated Areas of Affluence (RCAAs).

Planning
Department
General Fund Throughout the Planning
Period
Establish specific incentives for the development of
affordable units in the RCAAs including, but not limited to, permit streamlining and reduced fees.

Planning
Department
General Fund By January 2026
Place-Based Strategies to Encourage Community Conservation and Revitalization Create and promote informational materials on housing
accessibility, rehabilitation, and maintenance resources.

Materials to be distributed at the senior center, library, Civic Center, and at community events. Aim to provide
home repair and rehabilitation assistance for at least 20 households.

Planning
Department
General Fund By January 2026; materials
to be distributed and
promoted annually
Annually hold a community workshop or webinar with
relevant community organizations and agencies to discuss and promote available resources.

Planning
Department
General Fund Annually
Protecting Existing Residents from Displacement
Annually hold a community workshop with relevant
community organizations and agencies to discuss the
Planning
Department
General Fund Annually; adopt necessary
DRAFT
changes within 6 months

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Housing Program Actions Responsible
Agency
Funding
Source Timeframe
needs of persons with disabilities and identify whether additional resources and development concessions are
needed. If necessary changes are identified, adopt
amendments within 6 months.

Establish an accessibility program to improve access to housing, transit, public buildings and facilities, sidewalks, pedestrian crossings, and businesses for persons with
disabilities.

Planning
Department
General Fund By January 2026
Pursue at least 2 funding opportunities to address
accessibility for persons with disabilities.

Planning
Department
General Fund Annually
Provide information and educational materials on fair
housing services for property owners, apartment
managers, and tenants at City Hall and online.

Planning
Department
General Fund Annually throughout the
Planning Period
Monitor and respond to complaints of discrimination and refer tenants to the California Department of Fair
Employment and Housing for proper intake, investigation, and resolution of fair housing complaints.

Planning
Department
General Fund As complaints are
submitted
Program H-3.3
Childcare and Daycare Facilities
Continue to work with childcare providers and the County to promote adequate childcare facilities within the
community.

Planning
Department
General Fund Continue to work with
childcare providers and
the County throughout the
Planning Period; Provide
information at City Hall
and online by January
2027; Coordinate with
developers on a projectby-project basis
Provide information at City Hall and on the City’s website on current zoning regulations that apply to childcare and daycare facilities.

Continue to encourage new development to provide
childcare and daycare facilities through a variety of
activities, including outreaching to developers; providing financial assistance, when available; providing expedited processing; identifying grant and funding opportunities; and providing information on the City’s Density Bonus
Ordinance.

Program H-3.4
Reasonable Accommodation
Maintain updated information online on the reasonable
accommodation ordinance, including information on the
application process, fees, and requirements.

Planning
Department
General Fund By January 2026
DRAFT

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Housing Program Actions Responsible
Agency
Funding
Source Timeframe
Program H-3.5
Housing for Persons with
Developmental Disabilities
Encourage construction and rehabilitation of housing with supportive services by reviewing and identifying regulatory incentives for projects proposing housing for persons with developmental disabilities.

Planning
Department
General Fund Review regulatory
incentives by January
2027; Annually seek
funding opportunities;
Biennially collaborate with
developers and
organizations
Seek State and Federal funding to support housing
construction for persons with developmental disabilities.

Collaborate with housing developers and local
organizations to identify the needs of local persons with developmental disabilities.

Program H-3.6
Housing for Lower Income
Households
Coordinate with housing developers, property owners, and local organizations to identify development opportunities, funding resources, and incentives.

Planning
Department
General Fund Annually coordinate and
meet with developers,
property owners, and local
Meet with housing developers to discuss available organizations. programs and fundings sources to develop housing units
affordable to lower income households.

Program H-3.7
Definition of Family
Adopt a zoning ordinance amendment to update the
definition of “family” in compliance with State law.

Planning
Department
General Fund In conjunction with the
ongoing General Plan
update, which will be
completed by the end of
2024.

Program H-3.8
Agricultural and Employee Housing
Adopt a zoning ordinance amendment consistent with the
requirements of Health and Safety Codes Section 17021.5 and 17021.6 as it relates to agricultural and employee
housing.

Planning
Department
General Fund By January 2025.

Program H-3.9
Emergency Shelters
Amend the City’s Zoning Ordinance for parking
requirements for emergency shelters in compliance with
AB 139.

Planning
Department
General Fund Adopt amendments and
create an inventory of
sites to accommodate
emergency shelters by
January 2026; Prioritize
funding and other
Adopt a Zoning Ordinance amendment to expand the
definition of “emergency shelters” to include other interim interventions, including, but not limited to, navigation centers, bridge housing, and respite or recuperative care.

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Housing Program Actions Responsible
Agency
Funding
Source Timeframe
Create and monitor an inventory of sites appropriate to accommodate emergency shelters and work with the
appropriate organizations to ensure the needs of homeless and extremely low-income residents are addressed.
incentives on a project-byproject basis
Prioritize available funding and other available incentives for projects that provide housing for homeless and
extremely low-income residents.

Program H-3.10
Density Bonus Ordinance
Adopt a Density Bonus Ordinance amendment in
compliance with State density bonus law.

Planning
Department
General Fund By January 2026; on a
project-by-project basis.

Promote the Density Bonus Ordinance to multi-family
developers on a project-by-project basis to promote
affordable housing unit development.

Program H-3.11
Low Barrier Navigation Centers
Adopt a zoning ordinance amendment to approve lowbarrier navigation centers that meet State requirements by-right.

Planning
Department
General Fund By January 2026.

Program H-3.12
Condominium Conversion
Ordinance
Adopt a Condominium Conversion Ordinance. Planning
Department
General Fund By January 2026.

Goal 4
Program H-4.1
Hillside Development and Design
Maintain information online and at City Hall on hillside development and design.

Planning
Department;
water and sewer
service providers
General Fund Provide information by
January 2027; Coordinate
with developers on a
project-by-project basis
Program H-4.2
Resource Conservation
Encourage energy conservation measures and devices to
be incorporated in the development and improvement of
housing. Review such requirements through the Design
Review and Building Permit process.

Planning
Department
General Fund On a project-by-project
basis.

Program H-4.3
Water and Sewer Service Providers
Submit the adopted 6th Cycle Housing Element, and any
subsequent amendments, to local water and sewer
providers for their review and input.

Planning
Department;
water and sewer
service providers
General Fund Immediately upon
adoption of the 6th Cycle
Housing Element and any
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subsequent amendments

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Housing Program Actions Responsible
Agency
Funding
Source Timeframe
Program H-4.4
Cultural Resources
Continue to review cultural resources through the Cultural Resource Commission.

Planning
Department;
water and sewer
service providers
General Fund On a project-by-project
basis
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This Appendix provides a Review of Past
Performance for the 2015-2023 Housing Element. It
is an evaluation of the 5th Cycle’s Policy Program and
considers all current and existing programs and
projects, as well as the most effective and
appropriate policies and programs for the 2023-2031
6 th Cycle.

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P R O G R A M E V A L U A T I O N F O R H O U S E H O L D S

W I T H S P E C I A L N E E D S
As part of analyzing prior programs, this Appendix provides an outline of the effectiveness of goals, policies, programs, and objectives in meeting the housing needs of Scotts Valley’s special needs population. The following section identifies 5th Cycle accomplishments by special needs groups.

1. Seniors
The Housing Needs Assessment shows that 20.4 percent (2,463 residents) of Scotts Valley residents are over the age of 65. Over the years, the senior population has seen an increase from 2010 to 2020. In terms of household characteristics, from 2010 to 2020 householder ages 65 or above grew 4.4 percent.

The special needs of seniors can be met through a range of services, including congregate care, rent subsides, shared housing, and housing rehabilitation assistance. Affordable housing opportunities in Scotts Valley for seniors include:
 “Oak Tree Villa” (Brookdale Renaissance Senior Living Communities) at 100 Lockewood Lane – 204 units for active seniors and assisted living  Mystic Oaks at 163 Glenwood Drive – provides assisted living services Senior residents can benefit from various classes, activities, and programs offered at the Scotts Valley Senior Center. The Senior Center provides a place where seniors may find companionship, help and the opportunity to pursue their interests in educational, recreational and craft activities. Additionally, the Center assists in promoting the goodwill and public interests of the community.

The Scotts Valley Senior Life Association (SVSLA) also provides services and resources to seniors. SVSLA is a non-profit organization established to provide education and support relating to the health and welfare of senior citizens living in Scotts Valley. They seek to enhance and add enjoyment to lives of seniors in the community, provide educational opportunities with a focus on healthy living habits, and provide access to facilities that help seniors create their own healthy and fulfilling lives.

2. Persons with Disabilities
Disability is a physical or mental condition that substantially limits one or more major life activities. Physical and mental disabilities can hinder access to traditionally designed housing units as well as potentially limit the ability to earn adequate income. The Housing Needs Assessment
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shows that 12.6 percent of Scotts Valley’s population has a disability. The most

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common disabilities in Scotts Valley are ambulatory difficulty, independent living difficulty, and vision difficulty.

There is a variety of organizations within and around Scotts Valley that serves individuals with disabilities. The San Andreas Regional Center is a non-profit that serves individuals with developmental disabilities and their families who reside within Monterey, San Benito, Santa Clara, and Santa Cruz Counties. The County of Santa Cruz Human Resources Agency coordinates federal, state, and county government funding for programs and services for disabled populations in the City of Scotts Valley. The Central Coast Center for Independent Living (CCCIL) is a community-based, cross-disability, non-profit organization that is designed and operated with people with disabilities. The organization provides a variety of programs from peer support, housing assistance, and independent living skills training.

3. Large Households
Appendix B shows that about 7 percent of Scotts Valley households have five or more members, this includes 5 percent 5-person households, 2 percent 6-person household, and less than one percent 7-or-more-person households. The percentage of owner-occupied households (288) and renter-occupied households (48) that are large households is approximately 8.3 percent and 3.7 percent, respectively.

Larger, lower income families may qualify for Housing Choice Vouchers. Housing Choice Vouchers go to federally assisted rental housing properties that enable families access to subsidized housing below current fair market rental pricing. The City continues to encourage affordable housing development for large households through partnerships with developers and entities and providing homebuyer assistance.

4. Single-Parent Households
Single-parent households often require special consideration and assistance due to their greater need for affordable and accessible day care, health care, and other supportive services.

Single parents make up 10 percent of Scotts Valley households.

The Scotts Valley Unified School District (SVUD) offers a variety of community resources for children and single parents in the community. For instance, Vine Hill and Brook Knoll Elementary School provides after school care programs to residents with children and the SVUD provides free and reduced-price meals. SVUD serves over 2,000 students from preschool through twelfth grade. SVUD includes two elementary schools, one middle school, and one high school.

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5. Persons Experiencing Homelessness
Homelessness has become an increasingly important issue in the region and throughout California. Homelessness is the result of expensive housing or an insufficient income to pay for housing. Other possible contributing factors include mental disabilities, domestic violence, and alcohol and drug addiction. The 2022 Santa Cruz County Homeless Point-in-Time (PIT) Count and Survey identifies where homeless individuals are living in the County. Of the responses collected, the top two primary conditions that led to homelessness in Scotts Valley were eviction and employment loss; Scotts Valley had a homeless population of 48 in 2022.

Scotts Valley works to meet the homeless needs through a variety of programs. The City permits emergency shelters in Service Commercial districts (C-S) and Shopping Center Commercial districts (C-SC); and permits them with a conditional use permit in the Public/Quasi-public districts (P). These zoning districts are located along the City’s main thoroughfares. Transitional and supportive housing are permitted by-right in all residential zones; and permits transitional housing with a conditional use permit in the Light Industrial district (I-L).

The PIT Count and Survey reported the top six services being accessed in Santa Cruz County were free meals (64 percent), bus passes (46 percent), health services (46 percent), shelter day services (36 percent), mental health services (30 percent), and legal services (27 percent).

Within the City, Camp Recovery Center provides adults and teens with alcohol and drug problems specialized detox, residential, outpatient and aftercare treatment programs. San Augustine and St. Philips church have food pantries. AFC Faith Community Shelter rotates its shelter program with different churches in Santa Cruz, Scotts Valley, and Aptos.

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2 0 1 5 - 2 0 2 3 P R O G R A M A C C O M P L I S H M E N T S As required in Government Code 65588, local governments are to review its housing element as frequently to evaluate the appropriateness of the housing goals, objectives, and policies in contributing to the attainment of the state housing goal. Table A-1 provides detailed, program-specific accomplishments for 2015-2023. The City of Scotts Valley has demonstrated significant effort in working towards accomplishing many of the objectives established in the 5th Planning Cycle Housing Element. The City’s successful programs have been identified as on-going for the 6th Planning Cycle. Various programs have been modified in the 6th Cycle Housing Plan to account for new requirements and changes in State Law.

Table A-1: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments Status for Sixth Cycle GOAL 1. It is the goal of the City of Scotts Valley to promote a balanced mix of housing types, prices, and opportunities by increasing the number of housing units to accommodate population and employment growth.

Program 1.1 The City Council rezoned 11 acres of residential and commercial land to very high density residential,
allowing densities from 15 to 20 units per acre during the 2009-2014 planning period. including an additional 12 acres was rezoned for mixed residential and commercial uses
along major corridors. The City has determined that the sites inventory previously identified has remaining capacity to meet the 2015-2023 RHNA. As discussed in Chapter 4 and outlined in Chart 4-4, these sites are located along Scotts Valley Drive, Mt. Hermon Road, and specific plan locations, such as the Gateway Specific Plan. To ensure sufficient residential capacity to accommodate the identified regional need for lower income households is maintained, the City will develop and implement a formal monitoring program.

The program will track development approvals on identified sites and ensure that no net loss occurs. This means that if any of the identified sites are not developed in accordance with the development requirements outlined in the Zoning Code, an alternative site or sites must be identified and rezoned to maintain overall affordable unit capacity.

Report on the progress of
development in the identified
sites inventory in the Annual
Progress Report to HCD as
required pursuant to
Government Code Section
65400 and due April 1 of each
year.
2015:

Scotts Valley was preparing its 2015-2016
Housing Element.
2016:

Two developments were approved on -
opportunity sites, The Cove and The Grove.
2017:

The construction of The Grove was ongoing.

Building permits were issued for 3 deed
restricted lower income units and 4 deed
restricted moderate income units.
2018:

Building permits issued for The Cove and The
Terrace. An application was submitted for the
Oak Creek Park opportunity site.
2019:

Building permits issued for 12 residential
units on scattered sites throughout the City.

Certificates of Occupancy for The Grove was
issued.
2020:

Modify.

The program is modified to
meet the 6th Cycle RHNA
through a variety of
strategies established in
Appendix F.

Monitor development
approvals on identified sites
and ensure that no net loss
occurs.

Continue to implement the
City’s 15% inclusionary
housing requirement and Title
14 Affordable Housing
Production requirements.

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Goals and Programs Objective Program Accomplishments Status for Sixth Cycle Building permits issued for 10 residential
units. The construction for the Cove was
completed.
2021 - 2022:

The City monitored the remaining sites in the
2016 inventory to assure that land at
appropriate densities is available to meet any
unmet RHNA needs. The Town Center
Specific Plan as listed in the 2016 site
inventory represented a significant site for
additional housing opportunities. The City
continues to implement the 15% Inclusionary
Housing requirement and is planning to
evaluate the Inclusionary Housing Ordinance
and to propose changes as needed to
increase its effectiveness in producing
affordable housing. The City has also been
awarded SB2, LEAP, and REAP funds for
improved permit processing, updating the
City’s Housing Element, and revisions to the
ADU/Second Dwelling Unit Ordinance.

Program 1.2 The Planned Development District (PD) is
designed to enable projects to create specific development standards for a site that facilitate quality development and responds to unique site or environmental conditions. For example, a PD district allows smaller lots than normally allowed under the Zoning Code to preserve trees and sloped areas. In these cases, the Planned Development district provides a means of flexibility other than a variance to secure modifications to otherwise set development
standards. A Planned Development district is approved by the Planning Commission and City Council. The City has
successfully used PD districts in recent years to facilitate affordable projects including the Baytree Apartments,
Continue providing flexible
design through the PD zoning
district.
2015:

The City was preparing the 2015/2016
Housing Element, which included
implementation of flexible design standards
through a PD Zoning District.
2016 - 2022:

The City worked with the development
community by encouraging and supporting
flexible design standards in the PD Zoning
District.

Ongoing.

The efforts for Program 1.2
will continue to provide
flexible design throughout
the PD Zoning District.

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Goals and Programs Objective Program Accomplishments Status for Sixth Cycle Bluebonnet Condominiums, and Windward single-family
homes.

Program 1.3 The City of Scotts Valley could also
accommodate a significant number of secondary dwelling
units and guest houses. Since 2000, the City has facilitated the development of secondary dwelling units by reducing development standards, permitting them by right in
residential zoning districts, and providing a means to
address illegal conversion.

Continue to publicize its
secondary dwelling unit
program by developing
brochures, updating its web
site, and making available
brochures available at the
public counter.
2015:

The City was preparing the development and
implementation of this program.
2016:

This City program was still in progress.
2017:

The City issued 3 building permits for two
dwelling units.
2019 - 2022:

The City received SB2 grant funds that will be
used to update the City’s Secondary Dwelling
Unit Ordinance so that it reflects all of the
recent legislative changes as mandated by
the State of California. These include
Assembly Bill 68, Assembly Bill 881 and
Senate Bill 13, all of which became effective
as of January 1, 2020.

Modify.

The program is modified to
amend it’s current
“Secondary Dwelling Unit -
Ordinance” to comply with
State law requirements and
imitations on required
Periodically review program development standards.
and make adjustments as
feasible to facilitate the
development of secondary
dwelling units.

Program 1.4 In compliance with Senate Bill 2, the City of Scotts Valley amended the Zoning Code to allow emergency shelters by-right in the Service Commercial (C-S), Shopping Center Commercial (C-SC), and Public/Quasi-Public (P)
zoning districts. These zoning districts were selected due to multiple opportunities of underutilized and vacant sites for the development of new emergency shelters.

Continue to monitor the
inventory of sites appropriate
to accommodate emergency
shelters and work with the
appropriate organizations to
ensure the needs of homeless
and extremely low-income
residents are met.
2015:

The City was preparing the development and
implementation of this program.
2016:

In Progress.
2017:

This City program was still in progress
2018 – 2022:

The City continued to monitor the inventory
of sites appropriate to accommodate
emergency shelters and worked with
appropriate organizations.

Modify.

The program is modified for
the 6th Cycle to meet the
requirements of AB 139.

Prioritize available funding
and other available incentives
for projects that provide
housing for homeless and
extremely low-income
residents whenever possible.

Program 1.5 In compliance with Senate Bill 2, the City of Scotts Valley amended the Zoning Code to allow transitional and supportive housing by-right in all residential zones, Continue to monitor the
inventory of sites appropriate
to accommodate transitional
2015:

The City was preparing the development and
implementation of this program.

Ongoing.

The efforts for Program 1.5
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Goals and Programs Objective Program Accomplishments Status for Sixth Cycle subject to only those regulations that apply to other
residential uses of the same type in the same zone. These types of housing provide important housing opportunities for the City’s homeless and extremely low-income
households.
and supportive housing and
work with the appropriate
organizations to ensure the
needs of homeless and
extremely low-income
residents are met.
2018 – 2022:

Transitional and Supportive housing are
permitted by-right in all residential zones.
availability of transitional and
supportive housing sites in all
residential zones.

Prioritize available funding
and other available incentives
for projects that provide
housing for homeless and
extremely low-income
residents whenever possible.

Program 1.6 To facilitate development, the City offers
developers the opportunity to participate in a Density Bonus Program which provides a density increase of 35 percent plus development incentives for qualified affordable
projects to be eligible for the program, the affordable project must contain: (1) at least 10 percent of the units reserved for low-income households; (2) at least 5 percent reserved for low-income households; or (3) an entire
development reserved for senior households. The unit must remain affordable for at least 55 years if the density bonus is granted.

Provide information on the
Density Bonus Program at City
Hall and on the City’s website.
2015:

The City was preparing the development and
implementation of this program.
2018:

Density Bonus Program information is
included on page 4 of the City’s 2018
“Affordable Housing Action Plan Brochure.”
2019:

Density Bonus Program information is
included on page 4 of the City’s 2019
“Affordable Housing Action Plan Brochure.”
2020:

Density Bonus Program information is
included on page 4 of the City’s 2020
“Affordable Housing Action Plan Brochure.”
2021 - 2022:

The Density Bonus Program information is
included in Section 17.62 of the SVMC.

Modify.

The program is modified to
include a update of the
Density Bonus Ordinance in
compliance with State law
requirements.

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Goals and Programs Objective Program Accomplishments Status for Sixth Cycle GOAL 2. It is the goal of the City of Scotts Valley to foster high-quality, safe and livable housing and residential neighborhoods through the preservation of Scotts Valley’s current housing stock that meets the needs of all income segments of Scotts Valley’s community and through the preservation of the City’s supporting services and programs that are intended to maintain and preserve the quality, the continued availability and the affordability of that housing and the City’s residential neighborhoods, as deemed appropriate by the City.

Program 2.1 Zoning and building codes are designed to
preserve housing in good condition and maintain the quality of neighborhoods. The City’s Code Enforcement staff
enforces City ordinances related to property maintenance, building conditions, and other issues.

Continue to implement a
proactive code enforcement
program through the Building
Department and inform
residents of rehabilitation
assistance grants when
available at City Hall and on
the City’s website.
2018 - 2022:

The City continued to implement a proactive
code enforcement program.

Ongoing.

The efforts of program 2.1
will continue to implement
the proactive code
enforcement program.

Conduct a biennial review of
code enforcement cases to
identify potential trends in
the location or type of case.

Program 2.2 Design review ensures that new housing
projects are designed to blend in with the character of the neighborhood, respect topographical and environmental
features in Scotts Valley, and ensure compatibility with surrounding land uses. Design review is required for
projects at the tentative map stage and for apartment
projects and for projects in hillside combining districts and other sensitive areas. The City has streamlined the design review process in recent years. Design review is presently conducted by the City staff and reviewed by the Planning Commission, rather than separate commissions in the
community. City staff assists developers by providing a booklet with design guidelines.

Continue to review projects to
ensure consistency with the
General Plan, Zoning
Ordinance and area Design
Guidelines. The City will give
processing priority to
affordable housing projects.
2015:

The City was preparing the development and
implementation of this program.
2018 - 2019:

The City continued to conduct project
reviews to ensure consistency with the
General Plan and Zoning Ordinance and
provided priority process to affordable
housing projects.
2020 - 2022:

The City continued to conduct project
reviews to ensure consistency with the
General Plan and Zoning Ordinance and
provided priority process to affordable
housing projects as allowed by recent State
of California legislation.

Modify.

The program is modified to
reflect updates in the design
review processes.

Program 2.3 The City will inventory and gather information to proactively monitor publicly assisted housing units that have the potential to convert to market rate. This will include an annual review of the conversation status of all subsidized housing. Although no affordable project is at-risk of conversion during the planning period, the City will Develop and maintain an AB
987 database to include
detailed information on all
subsidized units, including
those that have affordability
covenants.
2015:

The City was preparing the development and
implementation of this program.
2018 – 2020:

The City maintained a data base and annually
publishes an inventory of affordable housing
Ongoing.

The efforts for Program 2.3
will continue through the
next cycle. Develop AB 987
database within one-year of
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Goals and Programs Objective Program Accomplishments Status for Sixth Cycle continue to monitor the status of projects and provide
technical and financial assistance as feasible to ensure the projects remain affordable for the long-term.

Explore funding sources such
as HUD Section 208/811
loans, HOPE II and II
Homeownership Program
funds, HOME funds, CDBG
funds, Low-Income Housing
Tax Credit Programs,
California Housing Finance
Agency single-family and
multi-family programs, and
other programs to stimulate
private developer and nonprofit entity efforts in the
development and financing of
housing for lower and
moderate-income
households.
opportunities entitled the “Affordable
Housing Action Plan Brochure.” The most
recent brochure was distributed in May 2020.

The City continues to explore available
federal and state funding resources that
would assist private and non-profit
developers in producing affordable housing.

The City had an on-going contractual
relationship with the Housing Authority of
Santa Cruz County to provide eligibility and
monitoring assistance of affordable units.
2021 - 2022:

The City maintained a data base and annually
published an inventory of affordable housing
opportunities
(https://www.housekeys15.com). The City
continued to explore available federal and
state funding resources that would assist
private and non-profit developers in
producing affordable housing. The City had
an on-going contractual relationship with
HouseKeys to provide eligibility and
monitoring assistance of affordable units.

Housing Element adoption
and update annually.

Continue to monitor at-risk
developments throughout the
planning period and pursue
partnership opportunities
with non-profits to preserve
and expand affordable
housing in the City.

Programs 2.4 The City’s Mobile Home Park Conversion
Ordinance recognizes that the unrestricted conversion of mobile home parks to other uses can further diminish the availability of mobile home parks and rental space and can subject tenants to the costs and inconvenience of
relocation. The ordinance provides a formal application procedure for mobile home park conversion and requires
approval by the Planning Commission or City Council. The City will continue to implement the ordinance in an effort to protect the community’s existing mobile home parks.

Continue to implement the
mobile home park conversion
ordinance in an effort to
protect existing mobile home
parks and the supply of
affordable housing.
2018 – 2022:

The City continued to implement the Mobile
Home Park Conversion Ordinance to protect
existing mobile home parks. Information
about the ordinance and other fair housing
information was available at City Hall and on
the City’s web site.

Ongoing.

The efforts for Program 2.4
will continue through the
next cycle.

Provide information on the
mobile home park conversion
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Goals and Programs Objective Program Accomplishments Status for Sixth Cycle housing information on the
City’s website and at City hall.

Program 2.5 The Mobile Home Park Rent Stabilization
Ordinance recognizes the need to protect the residents of mobile homes from unreasonable space rent increases,
while at the same time recognizing the need for mobile
home park owners to receive a reasonable income and
return on investment. The City receives, investigates, and holds hearings on requests for rent adjustments through the City’s Rent Review Commission. To ensure that conditions are preserved to promote and enhance fairness in the
economic relationship between mobile home park owners
and mobile home owners the City will continue to
implement the Mobile Home Park Rent Stabilization
Ordinance.

Continue to implement the
mobile home park rent
stabilization ordinance to
ensure that mobile home
owners and residents are
protected from unreasonable
space rental increases while
recognizing the need of
mobile home park owners to
receive a just and reasonable
return on their investment.
2018 – 2022:

The City continued to implement the Mobile
Home Park Rent Stabilization Ordinance to
protect existing mobile home parks.

Information about the ordinance and other
fair housing information was available at City
hall and on the City’s web site. In addition,
the City’s Mobile Home Park Rent Review
Commission receives, investigates and can
hold hearings as needed on proposed rent
adjustments.

Ongoing.

The efforts for Program 2.5
will continue to implement
and monitor the Mobile
Home Park Rent Stabilization
Ordinance throughout the 6th
Planning Cycle. Provide
information at City Hall and
on the City’s website within
one-year of Housing Element
adoption.

Provide information on the
mobile home park rent
stabilization ordinance and
other fair housing information
on the City’s website and at
City Hall.

GOAL 3. It is the goal of the City of Scotts Valley to expand and protect a range of housing opportunities for all demographic, economic, and special needs groups in the community.

Program 3.1 The Section 8 Rental Assistance Program
extends rental subsidies to very low-income households.

The program offers a voucher that pays the difference
between the current fair market rent established by the Housing Authority and what a tenant can afford to pay (i.e. 30 percent of household income). The voucher allows a
tenant to choose housing that costs above the payment
standard, provided the tenant pays the extra rent above the payment standard.

The Housing Choice Voucher Program has recently been
expanded to include a homeownership opportunity. Under
the new program, renters who have participated in the
Housing Choice Voucher program for a minimum of one
year are ready to buy a house, and have pre- qualified for a mortgage loan from a participating lender, may have their Continue to participate with
the Housing Authority of
Santa Cruz County Section 8
Certificate/Voucher Rental
Assistance Program.
2018 - 2020:

The City continued to participate with the
Housing Authority of Santa Cruz County and
provided information about the Housing
Authority’s services in the City’s 2020
“Affordable Housing Action Plan Brochure.”
2021 – 2022:

The City continued to participate with the
Housing Authority of Santa Cruz County and
provides information about the Housing
Authority’s services.

Modify.

The program is modified for
the 6th Cycle to include
information on
homeownership
opportunities through the
Housing Choice Voucher
Program.

Continue to refer residents to
the County program and
provide information at City
hall and on the City’s website.

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Goals and Programs Objective Program Accomplishments Status for Sixth Cycle monthly housing assistance payment applied to a mortgage payment rather than rent. A three percent down-payment is required to be paid by the prospective homebuyer. As the City has little control over how the County’s programs are administered, the City will be responsible for providing information to residents.

Program 3.2 Since 1992, Scotts Valley has participated in the Mortgage Credit Certificate (MCC) program through the Housing Authority of the County Santa Cruz. The MCC
program provides a tax credit of up to 20 percent of the annual interest paid on the applicant’s mortgage, reducing the amount of Federal income tax the homeowner pays and freeing more income to qualify and pay for a loan. The
Housing Authority also offers a specialized MCC program for teachers and principals of eligible schools. Currently the schools located in Scotts Valley are not eligible for the program. As the City has little control over how the County’s programs are administered, the City will be responsible for providing information to residents.

Continue to refer residents to
the County program and
provide information at City
Hall and on the City’s website.
2017:

The Mortgage Credit Certificates are no
longer issued in Santa Cruz County.
2018 – 2022:

The Housing Authority of the County of Santa
Cruz no longer administers a Mortgage Credit
Certificate (MCC) Program. They continued
the administration of the Reissued Mortgage
Credit Certificate (RMCC) program for those
MCC’s issued by the Housing Authority.

Modify.

The program is modified to
refer residents who were on
the MCC program to the
RMCC program.

Program 3.3 Fair housing is a broad topic that covers topics ranging from fair housing services to providing sufficient housing opportunities. For fair housing services, the City currently refers fair housing discrimination activities to the California Department of Fair Employment and Housing
(DFEH). The mission of the DFEH it to protect Californians from employment, housing, and public accommodation
discrimination.

Continue to provide
informational and educational
materials on fair housing
services for property owners,
apartment managers, and
tenants at City Hall and on the
City’s website.
2018 – 2022:

Fair Housing information is provided on the
City’s web site and at City Hall as well as
through the Housing Authority of the County
of Santa Cruz. This information is available to
property owners, apartment managers,
tenants and the general public.

Ongoing.

The efforts for Program 3.3
will continue to monitor and
respond to fair housing
discrimination activities
throughout the 6th planning
cycle.

Continue to monitor and
respond, as appropriate, to
complaints of discrimination,
and continue to refer tenants
to the California Department
of Fair Employment and
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Goals and Programs Objective Program Accomplishments Status for Sixth Cycle investigation, and resolution
of fair housing complaints.

Program 3.4 Scotts Valley recognizes that children represent our future community, but also recognizes that existing childcare services and facilities may not be adequate to meet today’s demand and that this demand is increasing. To ignore this fact jeopardizes the long-term of the City’s social, physical, and economic well-being. Thus, the City is committed to making high quality childcare services
available, affordable, and accessible to those persons who either live or work in the City and who desire or need such services.

Continue to work with child
care providers and the County
to promote adequate child
care facilities within the
community.
2018 – 2022:

The City continues to provide information at
City Hall and on the City’s web site regarding
current zoning regulations that apply to child
care and day care facilities. In addition, the
City continued to encourage the provision of
child care and day care facilities in all new
proposed development activities.

Ongoing.

The efforts for Program 3.4
will continue to develop new
child care facilities within the
community.

Provide information at City
Hall and the City’s website on
current zoning regulations
that apply to child care and
day care facilities.

Continue to encourage new
development to provide child
care and day care facilities
through a variety of activities,
including outreaching to
developers; providing
financial or in-kind technical
assistance, when available;
providing expedited
processing; identifying grant
and funding opportunities;
and providing information on
the City’s Density Bonus
Ordinance.

Program 3.5 Pursuant to Government Code Section 65583,
the City of Scotts Valley is obligated to remove potential and actual governmental constraints upon the maintenance,
improvement, or development of housing for all income
levels and for persons with disabilities. The Fair Housing Act, as amended in 1988, requires that cities and counties
provide reasonable accommodation to rules, policies,
practices, and procedures where such 5-13 accommodation may be necessary to afford individuals with disabilities equal housing opportunities. Reasonable accommodation
Provide informational
handouts and information at
City Hall and on the City’s
website about reasonable
accommodation procedures.
2018 – 2022:

Chapter 17.60 of the City’s Municipal Code
provided Reasonable Accommodation
standards and procedures. The Municipal
code is on the City’s website as well as at City
Hall.

Modify.

The program is modified to
continue reviewing
reasonable accommodation
procedures to remove
Continue to work with potential constraints.
developers and individual
home owners to encourage
design and construction of
DRAFT
projects that include features

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Goals and Programs Objective Program Accomplishments Status for Sixth Cycle provides a basis for residents with disabilities to request flexibility in the application of land use and zoning
regulations or, in some instances, even a waiver of certain restrictions or requirements from the local government to ensure equal access to housing opportunities. The ADA
Committee continues as a City Commission that identifies opportunities to increase ADA accessibility throughout the City. In general, City Staff takes into consideration the provisions of the California Americans with Disabilities Act (Cal ADA) in the review and approval of housing projects and grants modifications and deviations from the Municipal Code to accommodate the needs of persons with
disabilities. In 2014, the City adopted a reasonable
accommodation ordinance per requirements of State law.
to make the units usable for
persons with disabilities.

Program 3.6 The housing needs of persons with
developmental disabilities are typically not addressed by Title 24 Regulations, and requires, in addition to basic affordability, slight modifications to existing units, and in some instances, a varying range of supportive housing
facilities. The design of housing accessibility modifications, the proximity to services and transit, and the availability of group living opportunities represent some of the types of considerations that are important in serving this need
group. Incorporating “barrier-free” design in all new multifamily housing (as required by California and Federal Fair Housing laws) is especially important to provide the widest range of choices for residents with disabilities.

Seek State and Federal
monies, as funding becomes
available, in support of
housing construction and
rehabilitation targeted for
persons with developmental
disabilities.
2018 – 2022:

The City continued to seek available funding
and provide regulatory incentives to assist
projects for persons with developmental
disabilities. The City also continued to work
with nonprofit developers who intend to
provide housing for persons with
developmental disabilities. Information on
housing and services for persons with
developmental disabilities is available at City
Hall and on the City’s web site.

Modify.

The program is modified to
amend the Zoning Code to
permit large Community Care
Residential Facilities in all
residential zones to remove
constraints for persons with
Provide regulatory incentives, disabilities.
such as expedited permit
processing, and fee waivers
and deferrals, to projects
targeted for persons with
developmental disabilities.

Work with the San Andreas
Regional Center to implement
an outreach program
informing households within
the City of housing and
DRAFT
services available for persons

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Goals and Programs Objective Program Accomplishments Status for Sixth Cycle with developmental
disabilities.

Provide information on
housing and services available
for persons with
developmental disabilities at
City Hall and on the City’s
website.

Program 3.7 Extremely low-, and low-income households
have limited housing options in Scotts Valley. Housing types appropriate for these groups include: emergency shelters, and transitional and supportive housing. To accommodate this population group the City amended the Zoning Code to address these housing types per requirements of Senate Bill

2. The City has amended the City’s Zoning Code to allow emergency shelters by-right in at least one zoning district, and to permit transitional and supportive housing in all residential zones by-right without any discretionary action, subject only to those regulations that apply to other
residential dwelling units of the same type in the same zone.

Encourage the development
of housing for lower income
households, including
extremely low-, very low-, and
low-income, through a variety
of activities, such as
outreaching to housing
developers; providing
financial or in-kind technical
assistance, when available;
providing expedited
processing; identifying grant
and funding opportunities;
and offering additional
incentives beyond density
bonus provisions.
2018:

The City encouraged lower income housing
(including low, very low and extremely low
income) by providing information and
assistance to both private and non-profit
developers. In 2018, the City continued
discussions with the developer of a proposed
19 unit project (Bay Photo) to designating 2
rental units for lower income households.
2019 – 2022:

The City encouraged lower income housing
(including low, very low and extremely low
income) by providing information and
assistance to both private and non-profit
developers. The City also approved the
Encore and Erba Lane projects during these
years, with each providing 2 rental units
affordable to lower income households.

Ongoing.

The efforts for Program 3.7
will continue to encourage
the development of lowerincome housing and provide
assistance to developers.

Program 3.8 The City’s Municipal Code currently defines a family as “a person or persons related by blood, marriage or adoption or a group of not more than five persons,
excluding servants, not related by blood, marriage or
adoption, living together as a single housekeeping unit in a dwelling unit.” The City evaluated the current definition and found that revisions are necessary to be consistent with State and federal fair housing laws.

Amend, as appropriate, the
definition of “family” to be
consistent with State and
federal fair housing laws.
2018 – 2022:

An updated definition of “family” is
scheduled to be reviewed at the time of the
General Plan Update.

Ongoing.

The efforts for Program 3.8
will adopt the General Plan
Update that includes an
updated definition of
“family” that complies with
state and federal fair housing
DRAFT
laws.

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Goals and Programs Objective Program Accomplishments Status for Sixth Cycle Program 3.9 Sections 17021.5 and 17021.6 of the State
Health Safety Code are within part of the Employee Housing Act. The act sets standards for the construction,
maintenance, use, and occupancy of living quarters called “employee housing” as defined in Section 17008 of the
Health and Safety Code. The intent of these two sections is to broaden opportunities for agricultural employee housing in single-family residential districts and agricultural districts.

The City will amend the Zoning Ordinance and meet the
requirements of Health and Safety Codes Section 17021.5 and 17021.6 as it relates to agricultural employee housing.

Amend the Zoning Ordinance
to meet the requirements of
Health and Safety Codes
Section 17021.5 and 17021.6
as it relates to agricultural
employee housing.
2018 – 2022:

The City continued to review Health and
Safety Codes as they relate to agricultural
employee housing in order to amend the
Zoning Ordinance if necessary.

Ongoing.

The efforts for Program 3.9
will continue to amend the
Zoning Ordinance necessary
to broaden opportunities for
agricultural housing in singlefamily residential districts.

GOAL 4. It is the goal of the City of Scotts Valley to protect its unique sensitive environmental, archaeological, and paleontological assets and encourage resource conservation measures in all new housing developments.

Programs 4.1 The City’s Zoning Code enforces certain
regulations and development standards to ensure that its environmental resources are protected. For instance, the Code prohibits development on slopes with an average
grade of more than 40 percent. For slopes where
development is permitted, the City provides design
guidelines to the project applicant(s) to ensure that hillsides are preserved. For slopes greater than 10 percent, the City has established a Hillside Residential Combining District, which requires a variety of development and design
standards to help preserve and conserve natural vegetative and topographic features and open space. City staff and the Design Review Board (Planning Commission are responsible to review the project to ensure that applicable standards have been fully addressed.

Continue to enforce the
setback, height, and density
standards identified in the
Hillside Residential Combining
District.
2018 – 2022:

The City continued to enforce the various
standards as identified in the Hillside
Residential Combining District.

Ongoing.

The efforts for Program 4.1
will continue to implement
standards established in the
Hillside Residential
Combining District.

Program 4.2 The City encourages the conservation of
resources in the development and improvement of new
housing throughout the City. Buildings should be designed to minimize mechanical heating and cooling. Sunlight should be used for direct heating and illumination whenever
possible. Natural ventilation and shading should be used to Encourage energy
conservation measures and
devices to be incorporated in
the development and
improvement of housing.

Review such requirements
2018 – 2022:

The City reviewed energy conservation
measures and devices through the Design
Review and the building permit process.

Ongoing.

The efforts for Program 4.2
will continue to review
requirements to incorporate
resource conservation into
DRAFT
new residential projects

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Goals and Programs Objective Program Accomplishments Status for Sixth Cycle cool a building. Active and passive solar heating is
encouraged. Solar access shall be planned into the site design where possible. Solar access shall be reserved, where appropriate, through recorded easements or other devices or instruments. Climatic factors such as prevailing winds, shade trees, window and door orientation and the
positioning of buildings on the site shall all be coordinated to maximize energy conservation.
through the Design Review
and Building Permit process.
through the Design Review
and the building permit
process.

Program 4.3 Pursuant to Chapter 727, Statues of 2005 (SB 1087), the City of Scotts valley is required to deliver its adopted Housing Element and any amendments thereto to
local water and sewer service providers. This legislation allows for coordination between the City, water, and sewer providers when considering approval of new residential
projects, and to ensure that the providers have an
opportunity to provide input on the Element. Additionally, review of the Housing Element ensures that priority for water and sewer services is granted to projects that include units affordable to lower-income households.

Submit the adopted Housing
Element, and any subsequent
amendments, to local water
and sewer providers for their
review and input.
2018 – 2022:

The 2016 Housing Element had been
submitted to local water and sewer
providers. Future amendments to the 2016
Housing Element will also be submitted to
local water and sewer providers.

Ongoing.

The efforts for Program 4.3
will continue to provide the
Housing Element to the local
water and sewer service
providers.

Program 4.4 Scotts Valley’s location on an ancient seabed has contributed to a wealth of archaeological and
paleontological resources in the community today. In fact, the present City Hall site contains a 10,000- to 15,000- yearold archaeological site. The General Plan designates various areas throughout the community as moderate or
high cultural resource sensitivity zones. In these areas, development proposals must have appropriate
environmental clearance pursuant to state and federal laws, which is reviewed by the City’s Cultural Resource
Commission. Procedures and scope of authority of the
Commission is set forth in Chapter 17.44 of the Scotts Valley Municipal Code.

Continue to review proposals
for new housing to ensure
that the City’s cultural
resources are adequately
protected.
2018 – 2022:

The City continued to monitor proposed
development activity in areas designed as
“moderate or high cultural resource
sensitivity zones” in the General Plan.

Ongoing.

The efforts for Program 4.4
will continue to monitor
proposed development
activity in areas designated
as “moderate or high cultural
resource sensitivity zones” in
the 6th Cycle.

DRAFT

The Housing Needs Assessment provides an
overview of the City’s housing and population
characteristics and evaluates the factors that
contribute to the supply and demand of housing in
Scotts Valley. To create a comprehensive evaluation
of Scotts Valley’s housing needs, the housing needs
assessment discusses population, household,
economic and housing stock characteristics, and
presents each of these components in a regional
context. This assessment serves as the basis for
identifying the appropriate goals, policies, programs,
and quantified objectives for the City to implement
during the 2023-2031 Housing Element Cycle.

DRAFT

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P O P U L A T I O N C H A R A C T E R I S T I C S
Understanding the characteristics of a population is critical to plan for the needs of a community. Population growth, age composition, race, and ethnicity, and employment trends influence the type and extent of housing needs and the ability of the local population to afford housing costs. The following describes and analyzes the various population characteristics and trends that affect housing need.

1. Population Growth
Table B-1 displays the forecasted population growth for Scotts Valley in comparison to Santa Cruz County and surrounding communities. According to the U.S. Census and AMBAG Projections, the Santa Cruz County population is forecasted to increase by 8.1 percent through 2040. From 2015 to 2020, the County experienced a 0.9 percent drop in population. The City’s population decreased by 2.1 percent between 2015 and 2020 and is forecasted to increase by

1.5 percent between 2020 and 2040.

Table B-1: Population Growth (2010-2040)
Source: 2022 Regional Growth Forecast AMBAG, Table 8

2. Age Characteristics
Housing choices may differ based on the age of residents. Young adults (18 to 30 years old) and seniors (65 years or older) typically favor apartments, low- to moderate-cost condominiums, and smaller or more affordable single-family residences as they tend to have limited incomes or smaller families. As a community’s population ages, housing must also accommodate new or adjusted needs. A variety of housing options is needed to accommodate all stages of life to produce a well-balanced and healthy community.

Figure B-1 below displays ACS data for age distribution in Scotts Valley. Age groups from 5 to 9 years old, 10 to 14 years old, 35 to 44 years old, and 45 to 54 years old saw a decrease from 2010 to 2020. Older adults 65 years and older saw the most amount of growth with a 7.5 percent increase from 2010 to 2020. This age group was the largest age distribution in Scotts Valley. This is an indication of an aging population. The most significant drop and in age distribution was between the 55- to 59-year-old. From 2010 to 2015, the percentage dropped Jurisdictions
Population Percent Change
2015
Actual
2020
Actual
2030
Projected*
2040
Projected* 2015-2020 2020-2040
Santa Cruz County 273,793 271,233 284,146 293,156 -0.9% 8.1% Capitola 10,224 10,108 10,794 11,049 -1.1% 9.3%
Santa Cruz 64,223 64,424 72,218 78,828 0.3% 22.4%
Scotts Valley 11,946 11,693 11,837 11,868 -2.1% 1.5%
Watsonville 52,410 51,515 54,270 55,786 -1.7% 8.3%
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to 0.08 percent (a 5.92 percent decrease). From 2015 to 2020, the percentage increased to 9.20 percent.

Figure B-1: Scotts Valley Age Distribution
Source: American Community Survey, Table S0101, 5-Year Estimates, 2010, 2015, and 2020 Table B-2 below shows the age distribution of Scotts Valley residents in comparison to surrounding communities. Scotts Valley’s adult population between 35 to 49 represent the highest percentages in comparison to neighboring communities. Scotts Valley also has the highest percentages of residents under the age of 5 after Watsonville.

Table B-2: Age Characteristics/Age Distribution
Jurisdiction Under 5 5 to 19 20 to 34 35 to 49 50 to 64 65 years + Santa Cruz County 5.30% 19.3% 22.4% 24.3% 13.7% 15.0%
Capitola 3.7% 16.1% 20.8% 25.8% 12.9% 20.6%
Santa Cruz 3.1% 21.0% 33.3% 20.3% 9.7% 12.5%
Scotts Valley 6.5% 18.2% 18.6% 27.2% 13.3% 16.0%
Watsonville 9.7% 24.0% 23.8% 23.9% 9.1% 9.6%
Source: American Community Survey, Table S0101, 5-Year Estimates, 2020

3. Race/Ethnicity Characteristics
Analyzing and understanding the racial and ethnic composition of a community is important as different racial and ethnic groups may have varying household characteristics, income levels, and cultural backgrounds that may affect their housing needs, housing choice, and housing type. Cultural influences may reflect preference for a specific type of housing or other characteristics, such as location and mobility.

It is important to note that while race and ethnicity are used to identify different sections of a community’s population, they are not the same and are not mutually exclusive. The data identified below shows the racial and ethnic composition of Scotts Valley and nearby Under 5
years
5 to 9
years
10 to 14
years
15 to 19
years
20 to 24
years
25 to 34
years
35 to 44
years
45 to 54
years
55 to 59
years
60 to 64
years
65 years +
2010 5.5% 7.8% 8.0% 8.3% 5.8% 9.3% 14.0% 17.2% 6.0% 5.2% 12.9% 2015 5.7% 5.4% 7.0% 8.9% 8.1% 9.7% 12.9% 14.6% 0.1% 0.1% 14.1% 2020 5.1% 5.2% 4.8% 5.2% 8.3% 9.5% 10.0% 14.1% 9.2% 8.2% 20.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%
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jurisdictions using ACS, which allows Census respondents to identify one’s race and ethnicity.

Therefore, overlap may occur.

Figure B-2 and Table B-3 show persons who identify as White make up the largest racial group in Scotts Valley (76.1 percent), which is larger than that of the County (56.9 percent) and neighboring jurisdictions. In contrast, the Hispanic or Latino population made up the second largest population group at a much smaller rate of 10.8 percent. Persons who identify as Black, American Indian/Alaska Native, Native Hawaiian/Other Pacific Islander, and Some Other Race represent less than one percent of the City’s population combined.

Figure B-2: Racial Ethnic Composition
Source: American Community Survey, Table B03002, 5-Year Estimates, 2020 Table B-3: Racial/Ethnic Composition
Jurisdiction White* Black*
American
Indian/
Alaska
Native*
Asian*
Native
Hawaiian
/Other
Pacific
Islander*
Some
Other
Race*
Two or
More
Races*
Hispanic
or Latino
(of any
race)
Santa Cruz County 56.9% 1.0% 0.1% 4.7% 0.1% 0.3% 3.3% 33.6% Capitola 62.0% 0.6% 0.1% 4.8% 0.0% 0.0% 6.7% 25.8%
Santa Cruz 62.1% 1.8% 0.1% 10.2% 0.1% 0.4% 4.6% 20.7%
Scotts Valley 76.1% 0.5% 0.0% 6.8% 0.0% 0.3% 3.5% 10.8% Watsonville 15.0% 0.4% 0.1% 2.2% 0.0% 0.0% 0.6% 81.7%
*Non-Hispanic
Source: American Community Survey, Table B03002, 5-Year Estimates, 2020 Table B-4 shows mostly moderate changes in racial and ethnic demographics between 2010 and 2020. Persons that identified as Asian experienced the largest increase from 5.4 percent to 8 percent. In contrast, those that identify as White decreased from 80.7 percent to 75.6 percent White
Black or
African
American
American
Indian and
Alaska
Native
Asian
Native
Hawaiian/O
ther Pacific
Islander
Some
Other Race
Two or
More Races
Hispanic or
Latino
Origin
Scotts Valley 76.1% 0.5% 0.0% 6.8% 0.0% 0.3% 3.5% 10.8%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%
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a 5.1 percent decrease. Those who identify as Black or African American and Native Hawaiian/Other Pacific Islander also experienced similar decrease from 0.1 percent and 0.8 percent, respectively. The population that identifies as two or more races increased by 1.06 percent from 2010 to 2020.

Table B-4: Racial/Ethnic Composition of Scotts Valley (2010-2020) Race/Ethnicity 2010 2015 2020 Change from
2010 to 2020
White* 80.7% 78.2% 75.6% -5.1%
Black or African American* 0.4% 0.8% 0.4% -0.1%
American Indian and Alaska Native* 0% 0% 0% 0%
Asian* 5.4% 5.4% 8% 2.6%
Native Hawaiian/Other Pacific Islander* 0.8% 0% 0% -0.8% Some other Race* 0 0.3% 0.9% 0.9%
Two or more races* 2.8% 4.9% 3.9% 1.1%
Hispanic or Latino Origin 9.9% 10.4% 11.4% 1.5%
White alone 6.2% 8.1% 5.8% -0.4%
Black or African American alone 0.1% 0.1% 0.0% -0.1%
American Indian and Alaska Native
alone 0.3% 0.0% 0.7% 0.4%
Asian alone 0.3% 0.2% 0.0% -0.3%
Native Hawaiian and Other Pacific
Islander alone 0.0% 0.0% 0.0% 0.0%
Some other race alone 1.6% 0.7% 2.6% 1.0%
Two or more races 1.4% 1.2% 2.3% 0.9%
*Non-Hispanic
Source: American Community Survey, Table B03002, 5-Year Estimates, 2010, 2015, and 2020

E C O N O M I C C H A R A C T E R I S T I C S
In addition to demographics, economic characteristics may also indicate different housing needs. Employment and income trends may indicate a need for more affordable housing units and assistance programs. The data in this section provides valuable insight into the Scotts Valley community’s ability to access the housing market and to afford housing. Specifically, incomes associated with different employment sectors and the number of workers in a household may affect housing affordability need and choice. Local employment growth is also linked to local housing demand, and vice versa. Therefore, to consider a healthy balance between jobs and housing, it is important to consider the employment characteristics of a community.

1. Employment and Wage Scale
Employment and income directly affect housing needs as they provide the ability to purchase and rent housing, as well as influence the types of housing residents can afford. Job growth refers to the number of jobs created in the jurisdiction whereas employment growth refers to the number of residents in a jurisdiction that are employed. Table B-5 outlines job growth from 2015 through 2045 for Scotts Valley and nearby jurisdictions. By 2045, the City is forecasted to experience a 14.2 percent job growth from 2015 to 2045 (approximately 1,339 new jobs). The DRAFT

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figures in Table B-5 provide a deeper understanding of economic growth as compared to forecasted population growth, shown in Table B-1.

Table B-5: Total Jobs Growth (2015-2045)
Jurisdiction 2015 2025 2035 2045 Change
2015-2045
Santa Cruz County 130,436 141,391 147,125 153,261 17.5% Capitola 11,666 12,376 12,902 13,454 15.3%
Santa Cruz 40,840 44,317 46,863 49,636 21.5%
Scotts Valley 9,458 10,185 10,489 10,797 14.2%
Watsonville 42,069 45,748 47,366 49,071 16.6%
Source: Association of Monterey Bay Area Governments, 2022 Regional Growth Forecast Table B-6: Employment by Sector (2010-2020)
Industry Sector
2010 2020 Change
2010-2020 People
Employed
Percent City
Employment
People
Employed
Percent City
Employment
Agriculture, forestry, fishing and
hunting, and mining 0 0% 0 0% 0%
Construction 362 10.3% 205 5.3% -5%
Manufacturing 616 17.5% 635 16.5% -1%
Wholesale trade 61 1.7% 133 3.5% 1.7%
Retail trade 264 7.51% 401 10.4% 2.9%
Transportation and warehousing,
and utilities 67 1.9% 157 4.1% 2.2%
Information 137 3.9% 199 5.2% 1.3%
Finance and insurance, real
estate, and rental leasing 316 9% 265 6.9% -2.1%
Professional, scientific,
management, and administrative
services
485 13.8% 509 13.3% -0.6%
Education services, health care,
and social assistance 632 18% 662 17.2% -0.8%
Arts, entertainment, recreation,
accommodation, and food
services
198 5.6% 149 3.9% -1.8%
Other services (except public
administration) 119 3.4% 98 2.6% -0.8%
Public Administration 257 7.3% 427 11.1% 3.8%
Total 3,514 100% 3,840 100% 9.3%
Source: American Community Survey, 5- Year Estimates, 2010 and 2020 Economists estimate a 3.5 percent to 4.5 percent unemployment rate as natural as it reflects the real voluntary economic forces within a jurisdiction. Table B-7 shows the City of Scotts Valley had an unemployment rate of 6.9 percent in 2010 and 4.3 percent in 2020. The rate of unemployment went down by 2.6 percent from 2010 to 2020. This puts the City at the lowest unemployment rate compared to the surrounding jurisdiction and at a natural rate.

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Table B-7: Unemployment Rate
Jurisdiction Unemployment Rate*
Percent Change 2010 2020
Santa Cruz County 8.3% 6.1% -2.2%
Capitola 8.6% 1.6% -7%
Santa Cruz 8.3% 6.9% -1.4%
Scotts Valley 6.9% 4.3% -2.6%
Watsonville 11% 8% -3%
*Population 16 years and over
Source: American Community Survey, Table DP03, 5-Year Estimates, 2010 and 2020 The County of Santa Cruz’s median income for a household of four is $199,300, according to the 2022 State of California Income Limits for Santa Cruz County. Occupations that fall under $59,650 would have an average income in the very low-income category. As Table B-8 shows, the majority of the occupational salaries in Santa Cruz County fall below 50 percent of the HUD Area Median Family Income (HAMFI). Based on these salaries, housing stock in the City would need to be affordable to accommodate lower income households.

Table B-8: Santa Cruz County Median Salary by Occupation Occupation Salary
Legal $96,222
Computer and Mathematical $87,551
Architecture and Engineering $86,641
Management $79,419
Transportation and Material Moving $77,256
Life, Physical and Social Sciences $70,746
Business and Financial Operations $70,708
Healthcare Practitioners and Technical $66,811
Arts, Design, Entertainment, Sports and Media $56,649
Protective Services $54,640
Education, Training and Library $52,376
Installation, Maintenance and Repair $50,166
Community and Social Service $48,070
Sales $47,973
Construction and Extraction $43,993
Production $40,481
Office and Administration Support $40,014
Farming, Fishing and Forestry $30,567
Healthcare Support $30,270
Building, Grounds Cleaning, and Maintenance $29,735
Personal Care and Service $28,513
Food Preparation and Serving Related $25,375
Source: American Community Survey, 5-Year Estimates, 2020 DRAFT

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H O U S E H O L D C H A R A C T E R I S T I C S
Households include all individuals that occupy a single housing unit in a shared state whether they are single occupants, families, or unrelated people sharing a housing unit. Household characteristics provide insight on growth and determining a community’s housing needs.

Income and affordability are best measured at the household level, as well as the special needs of certain groups, such as large families, single-parent households, or lower-income households.

1. Household Type
Table B-9 shows different household characteristics in the City. Scotts Valley contains 4,779 total households. This represents about 4.96 percent of total Santa Cruz County households.

About 55.4 percent of total households in Scotts Valley are married-couple family households.

This population tend to seek occupancy in a single-family residence with multiple bedrooms. In contrast, non-family households make up 32.5 percent of total households. This may include unrelated persons living together or persons living alone. Non-family households tend to occupy multi-family units or seek out more affordable housing options.

Table B-9: Household Characteristics
Jurisdiction
Married-Couple Family
HH
Female HH, No Spouse
Present Non-Family HH Total HH
County % of Total HH County % of Total HH County % of Total HH Santa Cruz
County 46,297 48.1% 9,718 10.1% 35,405 36.8% 96,275
Capitola 1,783 38.3% 457 9.8% 2,209 47.4% 4,658
Santa Cruz 8,006 35.4% 1,680 7.4% 11,950 52.8% 22,644
Scotts Valley 2,649 55.4% 263 5.5% 1,551 32.5% 4,779
Watsonville 7,345 51.3% 2,524 17.6% 3,199 22.3% 14,317
Note: HH = Households
Source: American Community Survey, Table B11001, 5-Year Estimates, 2020 Table B-10 illustrates the changes in household types from 2010 through 2020. Scotts Valley experienced a growth of approximately 482 new households from 2010 to 2020. During this time, householders ages 65 or above grew 4.4 percent. Male households with no spouse present experienced a decline by 4.1 percent.

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Table B-10: Changes in Household Types
Household Types 2010 2015 2020
Count Percent Count Percent Count Percent
Married-couple Family Households 2,411 56.1% 2,425 56% 2,649 55.4% Female Households, No Spouse Present 414 9.6% 417 9.6% 263 5.5% Male Households, No Spouse Present 190 4.4% 193 4.5% 316 6.6% Non-Family Households 1,282 29.8% 1,297 29.9% 1,551 32.5% Householder Ages 65 or Above 468 10.9% 550 12.7% 731 15.3% Total Households 4,297 100% 4,332 100% 4,779 100%
Source: American Community Survey, Table S11001, 5-Year Estimates, 2010, 2015, 2020

2. Household Size
Understanding household size helps identify the basic unit of demand for housing as it identifies the type and size of housing needed by the community. It is also an indicator of population growth and household character. The measure of person per household provides an indicator of the number of persons residing in a housing unit. Average household size can be both a result and indicator of housing affordability and other household economic conditions and is important in understanding housing need by size and type of housing.

Table B-11 illustrates the household size for the City and nearby communities. Scotts Valley has approximately 2.5 persons per household making it the third largest household size in the area.

Larger households may require additional bedrooms and may results in overcrowding.

Table B-11: Average Household Size
Jurisdiction Average Persons per
Household
Santa Cruz County 2.7
Capitola 2.1
Santa Cruz 2.4
Scotts Valley 2.5
Watsonville 3.6
Source: American Community Service, 5-Year Estimates 2020

3. Household Income
Household income is connected to affordability. As household income increases, households are more likely to afford market-rate units, larger units, and/or pursue ownership opportunities. On the contrary, as household income decreases, households tend to pay a disproportionate amount of their income for housing. This could lead to increased incidences of overcrowding and substandard living conditions.

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HCD has identified the following income categories based on the Santa Cruz County HAMFI:
 Extremely Low-Income: Households earning up to 30 percent of the HAMFI  Very Low-Income: Households earning between 31 and 50 percent of the HAMFI  Low-Income: Households earning between 51 and 80 percent of the HAMFI  Moderate-Income: Households earning between 81 and 120 percent of the HAMFI  Above Moderate-Income: Households earning over 120 percent of the HAMFI Together, the extremely low-, very low-, and low-income categories are referred to as lower income1. Comprehensive Housing Affordability Strategy (CHAS) estimates based on 2015-2019 ACS 5-year average data are used below. The CHAS, developed by the Census Bureau for the U.S. Department of Housing and Urban Development (HUD), provides detailed information on housing needs by income level for different types of households in Santa Cruz. The most recent available CHAS data for Santa Cruz was published in May 2022.

Table B-12 displays the households by income categories. The majority of owners, renters, and households all are in the moderate- or above-income category. Homeowners had the highest percentage of households in the moderate- or above-income category (74.4 percent).

Approximately 16.1 percent of Scotts Valley households have a low-income – with 7.9 percent earning an extremely low-income.

Table B-12: Households by Income Category
Income Category (% of County HAMFI) Owner Renter Households Total Percent Total Percent Total Percent
Extremely Low (30% HAMFI or less) 135 4.3% 215 17.1% 350 7.9% Very Low (31 to 50% HAMFI) 265 8.4% 145 11.6% 410 9.3%
Low (51 to 80% HAMFI) 415 13.1% 295 23.5% 710 16.1%
Moderate or Above (over 80% to 100% HAMFI) 2,355 74.41% 600 47.8% 2,955 66.9% Total 3,165 100% 1,255 100% 4,420 100%
Source: HUD Comprehensive Housing Affordability Strategy, 2015-2019 The ACS 2020 data shown in Figure B-3 below depicts median household income for the City of Scotts Valley, the surrounding jurisdiction, and Santa Cruz County. Scotts Valley has a median household income of $103,783, which is $13,797 higher than Santa Cruz County. The City has the highest household income in the area. Larger household income allows for more flexibility and opportunity of housing choice. Households with lower median incomes are more susceptible to housing cost burdens and may have fewer choices. Additionally, lower-income 1 Federal housing and community development programs typically assist households with incomes up to 80 percent of the HAMFI and use different terminology. For example, the Federal Community Development Block Grant (CDBG) program refers households with incomes between 51 and 80 percent HAMFI as moderate-income (compared to low-income based on State definition).

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households may not be able to afford adequate housing. Low-income households may have a challenging time finding housing that can fit the needs of a larger household because larger housing tends to be owned, rather than rented, and is more expensive than smaller rental units. As a result, cost burden, displacement, and overcrowding may occur.

Figure B-3: Median Household Income by City
Source: American Community Survey, S1901, 5-Year Estimates, 2020 Table B-13 shows the median household income of nearby jurisdictions and compares the percentage difference with the Santa Cruz County median income. Scotts Valley’s median household is 15.3 percent above that of Santa Cruz County; it is the highest of the surrounding jurisdictions.

Table B-13: Median Household Income
Jurisdiction Median Income Difference with
County Median
Santa Cruz County $89,986 --
Capitola $81,617 -9.3%
Santa Cruz $86,618 -3.7%
Scotts Valley $103,783 15.3%
Watsonville $61,496 -31.7%
Source: American Community Survey, Table S1901, 5-Year Estimates, 2020 Figure B-4 below outlines Scotts Valley’s income, broken down by income level. 61.7 percent of Scotts Valley households earn an income below $150,000, with 22 percent earning less than $50,000, and 5 percent earning less than $10,000. Approximately 23 percent of Scotts Valley households earn $200,000 or more annually.
$81,617 $86,618
$103,783
$61,496
$89,986
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
Capitola Santa Cruz Scotts Valley Watsonville
Jurisdictions Santa Cruz County
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Figure B-4: Scotts Valley Household Income Breakdown by Category Source: American Community Survey, Table S1901, 5-Year Estimates, 2020

H O U S I N G P R O B L E M S
CHAS provides detailed information on housing problems by income level for different types of households in the City. The most recent available CHAS data was published in May 2022 and is based on 2020 ACS data. Housing problems considered by CHAS include:

Housing Problems:
 Units with physical defects (lacking
complete kitchen or bathroom);
 Overcrowded conditions (more than
one person per room); or
 Cost burdens exceeding 30 percent
of gross income (including utilities).

Severe Housing Problems:
 Units with physical defects (lacking
complete kitchen or bathroom);
 Overcrowded conditions (more than

1.5 persons per room); or
 Cost burdens exceeding 50 percent
of gross income (including utilities).

Types of housing problems in Scotts Valley vary according to household income, type, and tenure. Table B-14 shows the housing assistance needs of lower-income households.

Approximately 22.7 percent of owner-occupied households experience at least one housing problem. For renters, 48.9 percent of households experience at least one housing problem. An Less than $10,000
5%
$10,000 to $14,999
1%
$15,000 to $24,999
4%
$25,000 to $34,999
6%
$35,000 to $49,999
6%
$50,000 to $74,999
11%
$75,000 to $99,999
16%
$100,000 to
$149,999
13%
$150,000 to
$199,999
15%
$200,000 or more
23%
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estimated 22 percent of households in Scotts Valley experience at least one severe housing problems. There are a slightly more renters (11.7 percent) than owners (10.3 percent) that experience severe housing problem. These findings may reflect the level of control over maintenance and repairs. Renters typically rely on property owners and management companies to provide repair services and maintenance, which can result in higher levels of housing problems.

Table B-14: Housing Assistance Needs of Lower-Income Households Housing Problems Owner % of total
HH Renter % of total HH Total % of total HH
Housing Problems Overview
Household has at least one of four
Housing Problems 1,005 22.7% 745 16.9% 1,750 39.6%
Household has no Housing
Problems or cost burden not
available, no other problems
2,160 48.9% 510 11.5% 2,670 60.4%
Total 3,165 71.61% 1,255 28.4% 4,420 100%
Severe Housing Problems Overview
Household has at least one of four
Severe Housing Problems 455 10.3% 515 11.7% 970 22%
Household has no Severe Housing
Problems or cost burden not
available, no other problems
2,710 61.3% 735 16.6% 3,445 77.9%
Total 3,165 71.6% 1,255 28.4% 4,420 100%
Source: HUD, Comprehensive Housing Affordability Strategy, 2015-2019

1. Overcrowding
“Overcrowding” is generally defined as a housing unit occupied by more than one person per room in a unit (including bedrooms, living room, and dining room, but excluding hallways, the kitchen, and bathrooms). An overcrowded household results from either a lack of affordable housing (which forces more than one household to live together) and/or a lack of available housing units of adequate size, especially for large families.

Overcrowded (more than one person per room) and severely overcrowded (more than 1.5 persons per room) households can lead to neighborhood deterioration due to the intensive use of individual housing units leading to excessive wear and tear, and the potential cumulative overburdening of community infrastructure and service capacity. Furthermore, overcrowding in neighborhoods can lead to an overall decline in social cohesion and environmental quality. Such decline can often spread geographically and impact the quality of life and the economic value of property. The combination of lower incomes and high housing costs results in many households living in overcrowded housing conditions.

Table B-15 below illustrates the severity of overcrowding in Scotts Valley by household tenure.

About 0.7 percent of owner-occupied units experience overcrowding, while 0.8 percent of renter-occupied units experience overcrowding. Additionally, there are no owner-occupied units that experience severely overcrowded units, while 1.6 percent of renter-occupied units DRAFT

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experience severe overcrowding. Overall, 55 units (1.2 percent) experience some form of overcrowding in Scotts Valley. Increasing the opportunities for housing for all types and appropriate sizes for different households can help mitigate overcrowded units.

Table B-15: Overcrowding by Tenure in Scotts Valley
Tenure
Overcrowded Units
(1.0 to 1.50 persons/room)
Severely Overcrowded Units
(>1.51 persons/room)
Total Overcrowded
Occupied Units
Count Percent of Total
Occupied Units Count Percent of Total Occupied Units Count Percent of Total Occupied Units Owner
Occupied 24 0.7% 0 0% 24 0.5%
Renter
Occupied 10 0.8% 21 1.6% 31 0.7%
Total 34 1.5% 21 1.6% 55 1.2%
Source: American Community Survey, Table B25014, 5-Year Estimates, 2020 Table B-16 below shows that owner-occupied housing units make up 0.4 percent of the overcrowded units in the City. Similarly, renter-occupied units made up 0.5 percent of overcrowded units. Scotts Valley has the lowest percentage of renter-occupied overcrowded units compared to the nearby jurisdictions.

Table B-16: Overcrowded Housing Units by Tenure
Jurisdiction
Owner-Occupied
Overcrowded Units
Renter-Occupied
Overcrowded Units Total Overcrowded Units
Count Percent Count Percent Total Percent
Santa Cruz County 2,028 30.8% 4,563 69.2% 6,591 6.8%
Capitola 24 0.4% 147 2.2% 171 3.7%
Santa Cruz 215 3.3% 854 13.0% 1,069 4.7%
Scotts Valley 24 0.4% 31 0.5% 55 1.2%
Watsonville 648 9.8% 2,044 31.0% 2,692 6.8%
Source: American Community Survey, Table B25014, 5-Year Estimates, 2020

2. Overpayment (Cost Burden)
State and federal standards indicate that a household paying more than 30 percent of its income for housing is overpaying. Overpayment for housing can cause an imbalance on the remainder of a household’s budget.

Table B-17 below summarizes Scotts Valley’s cost burdened households. About 51.8 percent of renters are cost burdened, and 33.1 percent are severely cost burdened. In comparison, 31.4 percent of homeowners are cost burdened, and 11.7 percent are severely cost burdened. As shown below, renters are less likely to experience a severe cost burden but still may experience a cost burden as their income increases.

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Table B-17: Summary of Housing Overpayment
Income by Cost
Burden*
Owner Renter
Cost
Burden
> 30%
% of
Owner
HH
Cost
Burden
> 50%
% of
Owner
HH
Cost
Burden
> 30%
% of
Renter
HH
Cost
Burden
> 50%
% of
Renter
HH
Household
Income is < 30%
HAMFI
120 3.8% 100 3.2% 200 15.9% 155 12.4%
Household
Income is 31% to
50% HAMFI
200 6.3% 150 4.7% 145 11.6% 145 11.6%
Household
Income is 51% to
80% HAMFI
215 6.8% 120 3.8% 175 13.9% 70 5.6%
Household
Income is 81% to
100% HAMFI
180 5.7% 0 0% 120 9.6% 45 3.6%
Household
Income is >100%
HAMFI
280 8.9% 0 0% 10 0.8% 0 0%
Total 995 31.4% 370 11.7% 650 51.8% 415 33.1%
Note: HAMFI equals HUD area median family income, this is the median-family income calculated by HUD for each jurisdiction, to determine Fair Market Rents (FMRs) and income limits for HUD programs. HAMFI will not necessarily be the same as other calculations of median incomes (such as a simple Census number), due to a series of adjustments that are made. * Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities). For owners, housing cost is "select monthly owner costs", which includes mortgage payment, utilities, association fees, insurance, and real estate taxes.

Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) 2015-2019

S P E C I A L N E E D S G R O U P S
Special needs populations include seniors, persons with disabilities, single-parent households, large households, farmworkers, persons experiencing homelessness, and students. Special needs groups may have lower-incomes because of their conditions. Consequently, certain residents in Scotts Valley may experience higher incidences of housing overpayment (cost burden), overcrowding, or other housing problems.

1. Seniors
The senior population is generally defined as those 65 years or older. They may have several concerns such as limited and fixed incomes, high health care costs, higher incidence of mobility and self-care limitations, and transit dependency. As a result, the senior population require specific housing needs which includes affordable housing, care facilities, and other housing that includes planned service components. Table B-18 shows that the City has the second highest percentage of persons aged 65 and over, compared to nearby jurisdictions.

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Table B-18: Persons Aged 65 and Over
Jurisdiction Population Count Percent
Santa Cruz County 44,913 16.4%
Capitola 2,143 21.2%
Santa Cruz 8,117 12.5%
Scotts Valley 2,463 20.4%
Watsonville 5,635 10.8%
Source: American Community Survey, Table S0101, 5-Year Estimates, 2020 Table B-19 summarizes the income of senior householders in the City. Of all senior householders, 16.5 percent earn less than 30 percent of the HAMFI, and 35.7 percent earn less than 50 percent of the HAMFI. In total, 62.1 percent of senior households are considered lowincome and earn less than 80 percent of the HAMFI.

Table B-19: Elderly Householders by Income
Income Category Total Percent of Total Elderly
Householders
Extremely Low (<30% HAMFI) 295 16.5%
Very Low (31% to 50% HAMFI) 344 19.2%
Low (51% to 80% HAMFI) 472 26.4%
Moderate (81% to 100% HAMFI) 119 6.6%
Above Moderate (>100% HAMFI) 561 31.3%
Total 1,791 --
Note: HAMFI - $103,783
Source: American Community Survey, Table B19037, 5-Year Estimates, 2020.

2. Persons with Physical and Developmental Disabilities Physical and developmental disabilities can hinder access to traditionally designed housing units as well as potentially limit the ability to earn adequate income. Physical, mental, and/or developmental disabilities may deprive a person from earning income, restrict mobility, or make self-care difficult. Thus, persons with disabilities often have special housing needs related to limited earning capacity, a lack of accessible and affordable housing, and higher health costs.

Some residents suffer from disabilities that require living in a supportive or institutional setting.

Housing opportunities for persons with disabilities can be addressed through the provision of affordable, barrier-free housing. Rehabilitation assistance can be targeted toward renters and homeowners with disabilities for unit modification to improve accessibility.

The ACS identifies six disability types: hearing, vision, cognitive, ambulatory, self-care, and independent living. The U.S. Census and ACS provide clarifying questions to determine persons with disabilities and differentiate disabilities within the population. The ACS defines a disability as a report of one of the six disabilities identified by the following questions:
 Hearing Disability
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: Is this person deaf or do they have serious difficulty hearing?

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 Visual Disability: Is this person blind or do they have serious difficulty seeing even when wearing glasses?
 Cognitive Difficulty: Because of a physical, mental, or emotional condition, does this person have serious difficulty concentrating, remembering, or making decisions?  Ambulatory Difficulty: Does this person have serious difficulty walking or climbing stairs?
 Independent Living Difficulty: Because of a physical, mental, or emotional condition, does this person have difficulty doing errands alone such as visiting a doctor’s office or shopping?
According to the 2020 ACS data, about 12.6 percent of the Scotts Valley population has at least one disability (Table B-20). The top three disability types are ambulatory difficulties, independent living difficulties, and vision difficulties.

Table B-20: Disability Status
Disability Type
Population with a Disability
Total
Percent of
Population with
Disability
Percent of
Total
Population Under 18 18 to 64 65 and
Over
Population with a
Hearing Difficulty 0 183 234 417 12.5% 3.5%
Population with a
Vision Difficulty 35 307 243 585 17.6% 4.9%
Population with a
Cognitive Difficulty 0 286 121 407 12.2% 3.4%
Population with an
Ambulatory Difficulty 0 371 388 759 22.8% 6.3%
Population with a
Self-care Difficulty 0 314 101 415 12.5% 3.5%
Population with an
Independent Living
Difficulty
0 399 346 745 22.4% 6.2%
Total 35 1,860 1,433 3,328 100% 12.6%
Source: American Community Survey, Table S1810, 5-Year Estimates, 2020 The California Department of Developmental Services (CDDS) provides estimates of 69 persons with developmental disabilities in ZIP code area 95066 in January 2022, as shown in Table B-21.

Specifically, this includes 32 children and 37 adults.

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Table B-21: Developmental Disability Status for ZIP Code 95066 Disability Type Number of Residents
Living Arrangement
Home of Parent/Guardian 59
Independent/Supported Living 11
Community Care Facility 11
Intermediate Care Facility 0
Foster/Family Home 0
Other 0
Age Range
0-17 Years Old 32
18* Years Old 37
Source: CA DDS data by ZIP Code, January 2022
Many people with developmental disabilities can live and work independently within a conventional housing environment. Individuals with more severe developmental disabilities may require a group living environment where supervision is provided. The most severely affected individuals may require an institutional environment where medical attention and physical therapy are provided. Because developmental disabilities exist before adulthood, the first issue in supportive housing for persons with developmental disabilities is the transition from the person’s living situation as a child to an appropriate level of independence as an adult.

There are resources that may be beneficial for people living with a development disability, including rent subsidized homes, licensed and unlicensed single-family residences, inclusionary housing, Section 8 vouchers, special programs for home purchase, HUD housing, and SB 962 (veterans) homes. The design of housing-accessibility modifications, the proximity to services and transit, and the availability of group living opportunities represent some of the types of considerations that are important in serving the needs of this group. Incorporating ‘barrier-free’ design in new multi-family residences (as required by California and Federal Fair Housing laws) is especially important to provide the widest range of choices for residents with disabilities.

Special consideration should also be given to the affordability of housing, as people with disabilities may be living on a fixed income.

3. Large Households
Large households are defined as those consisting of five or more members. These households comprise a special needs group because many communities have a limited supply of adequately sized, affordable housing units. To save for other necessities such as food, clothing, and medical care, it is common for lower-income large households to reside in smaller units with an inadequate number of bedrooms, which frequently results in overcrowding and can contribute to fast rates of deterioration.

Securing housing large enough to accommodate all members of a household is more challenging for renters, because multifamily rental units are typically physically smaller than DRAFT

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single-family ownership units. While apartment complexes offering two and three bedrooms are common, apartments with four or more bedrooms are rare. It is more likely that large households will experience overcrowding in comparison to smaller households. Additionally, throughout the region, single-family residences with higher bedroom counts, whether rental or ownership units, are rarely affordable to lower-income households.

Table B-22 below provides a breakdown of large households by tenure in Scotts Valley. The data identifies the household size of homeowners and renters living in a large household. Large households are units with five or more occupants. About 7.03 percent of all households in Scotts Valley are large households. There are more owner-occupied units (288 households) with five or more person household than renter-occupied households (48 households).

Table B-22: Large Households by Tenure
Source: American Community Survey, Table B25009, 5-Year Estimates, 2020

4. Single-Parent Households
Single-parent households often require special consideration and assistance. They have a greater need for affordable and accessible day care, health care, and other supportive services.

Many of the female-headed households are more likely to have lower incomes than similar two-parent households.

The City of Scotts Valley has 579 single-parent households, as shown in Table B-23. Out of the total Scotts Valley households, 4.3 percent are single-parent males and 5.7 percent are singleparent females. In comparison, the county is made up of 4.6 percent households that are single-parent males and 9 percent single-parent females. In the City, about 0.8 percent of family households were reported to be single-parent household living in poverty in 2020.

Table B-23: Single Parent Households
Jurisdiction
Single-Parent Male,
No Spouse Present
Single ParentFemale, No Spouse
Present
Single-Parent HH
Living in Poverty Single
Parent HH
Percent of
Total HH
Count Percent1 Count Percent1 Count Percent1
Scotts Valley 139 4.3% 185 5.7% 25 0.8% 324 10.0%
Santa Cruz County 2,787 4.6% 5,493 9.0% 1,670 2.7% 8,280 13.6% Note: HH = Households

1. Percent of total Households
Source: American Community Survey, Table B17010, 5-Year Estimates, 2020 Table B-24 shows the breakdown of female-headed households in the City. Of the total Scotts Valley households, 8.1 percent are single female households with no spouse present. From Household Size
Owner Renter Total
Count Percent of
Owner HH Count Percent of Renter HH Count Percent of Total HH 5-Person Household 195 5.6% 38 2.9% 233 4.9%
6-Person Household 63 1.8% 10 0.8% 73 1.5%
7-or-More Person Households 30 0.9% 0 0.0% 30 0.6%
Total 288 8.3% 48 3.7% 336 7.0%
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those households, 0.8 percent are single parent households living in poverty. These percentages are much lower compared to the County.

Table B-24: Female Headed Households
Jurisdiction
Single Female HH,
No Spouse Present
Single Female HH
Living in Poverty
Single Parent
Female, No Spouse
Present
Single Parent
Female HH Living in
Poverty
Count Percent1 Count Percent1 Count Percent1 Count Percent1 Scotts Valley 263 8.1% 25 0.8% 185 5.7% 25 0.8%
Santa Cruz County 9,718 16.0% 1,676 2.8% 5,493 9.0% 1,200 2.0% Note: HH = Households

1. Percent of total Households
Source: American Community Survey, Table B17012, 5-Year Estimates, 2010

5. Farmworkers
Farmworkers are traditionally defined by HCD as people whose primary incomes are earned through permanent or seasonal agricultural labor. Generally, permanent farmworkers (working 150 days or more) work in the fields, processing plants, or support activities on a year-round basis. When workload increases during harvest periods, the labor force is supplemented by seasonal farmworkers, often supplied by a labor contractor. For some crops, farms may hire migrant farmworkers, defined as those whose travel distance prevents them from returning to their primary residence daily. Farmworkers have special housing needs because they earn lower incomes than many other workers and move throughout the year from one harvest location to the next.

The U.S. Department of Agriculture, National Agriculture Statistics provides data on hired farmworkers across the United States at both a state and county level. Within Santa Cruz County, there were a total of 16,114 hired farmworkers in 2017. A total of 11,254 are considered permanent and 4,860 were considered seasonal (working less than 150 days annually). The County also reported a total of 2,254 migrant farmworkers.

According to the American Community Survey, Scotts Valley residents employed in Farming, Fishing, and Forestry occupation earn one of the lowest salaries in comparison to other occupations, with an estimated median income of $30,567. This is considered an extremely low-income for Scotts Valley.

6. Extremely Low-Income (ELI) and Poverty Status
CHAS data indicates there are approximately 710 low-income households and 410 very lowincome households in Scotts Valley. Very low-income households are those households that earn 50 percent or less than the HAMFI for Santa Cruz County. Extremely low-income households are those households that earn less than 30 percent of HAMFI. Extremely lowincome households are generally more likely to experience overpayment, overcrowding, or DRAFT

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substandard housing conditions, and are more likely to include transition and supportive housing.

According to CHAS, there are approximately 350 extremely low-income households in Scotts Valley (renters and owners). Table B-25 includes data characterizing affordability and cost burden for various income groups. More renters than homeowners are subject to at least one housing problem in Scotts Valley. The extremely low-income household need is generally estimated as 50 percent of the very low-income RHNA. The City’s very low-income RHNA is 392 units; therefore, the projected housing need for extremely low-income households is 196 units.

According to 2020 data, 5.5 percent of Scotts Valley’s population lives in poverty. Figure B-5 illustrates the percentage of people within each racial and ethnic group living below the poverty level. American Indian and Alaska Native experienced the most poverty at 100 percent.

Figure B-5: Population Below Poverty Level by Race and Hispanic Or Latino Origin Source: American Community Survey, Table S1701, 2020
The County of Santa Cruz’s extremely low income for a household of four is $46,650, according to the 2022 State of California Income Limits for Santa Cruz County

4.6%

0.0%
100.0%

0.2% 0.0%

43.1%

0.0%

12.9%

0.0%

20.0%

40.0%

60.0%

80.0%
100.0%
120.0%
White alone Black or
African
American
alone
American
Indian and
Alaska Native
alone
Asian alone Native
Hawaiian and
Other Pacific
Islander alone
Some other
race alone
Two or more
races Hispanic orLatino origin
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Table B-25: Housing Problems by Income Category
Income Category
Owner
Household has
at least one of
four Housing
Problems
% of Owner HH
Household has
no Housing
Problems OR
cost burden not
available
% of Owner HH
Extremely Low (< 30% HAMFI) 120 3.8% 15 0.5%
Very Low (31% to 50% HAMFI) 200 6.3% 65 2.1%
Low (51% to 80% HAMFI) 225 7.1% 190 6%
Moderate (81% to 100% HAMFI) 180 5.7% 130 4.1%
Above Moderate (>100% HAMFI) 280 8.9% 1,765 55.8%
Total 1,005 31.8% 2,165 68.4%
Income Category
Renter
Household has
at least one of
four Housing
Problems
% of Renter HH
Household has
no Housing
Problems OR
cost burden not
available
% of Renter HH
Extremely Low (< 30% HAMFI) 200 15.9% 15 1.2%
Very Low (31% to 50% HAMFI) 145 11.6% 0 0.0%
Low (51% to 80% HAMFI) 190 15.1% 105 8.4%
Moderate (81% to 100% HAMFI) 120 9.6% 80 6.4%
Above Moderate (>100% HAMFI) 90 7.2% 310 24.7%
Total 745 59.4% 510 40.6%
Total Households (Owner and Renter) 1,490 33.7% 1,020 23.1% Note: HAMFI equals HUD Area Median Family Income, this is the median family income calculated by HUD for each jurisdiction, to determine Fair Market Rents (FMRs) and income limits for HUD programs. HAMFI will not necessarily be the same as other calculations of median incomes (such as a simple Census number), due to a series of adjustments that are made.

Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) 2015-2019

7. Persons Experiencing Homelessness
Homelessness has become an increasingly important issue across the State and the region.

General factors contributing to the rise in homelessness include increased unemployment and underemployment, a lack of housing affordable to lower- and moderate-income persons (especially extremely low-income persons), reductions in public subsidies to the poor, and the de-institutionalization of the mentally ill.

State law mandates that municipalities address the special needs of homeless persons within their jurisdictional boundaries. “Homelessness” as defined by HUD has been updated to include the following descriptions:
 People who are living in a place not meant for human habitation, in an emergency shelter, in transitional housing, or exiting an institution where they temporarily resided.

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 People who are losing their primary nighttime residence, which may include a motel or hotel or a doubled-up situation, within 14 days and lack resources or support networks to remain in housing.
 Families with children or unaccompanied youth who are unstably housed and likely to continue in that state. This applies to families with children or unaccompanied youth who have not had a lease or ownership interest in a housing unit in the last 60 days or more, have had two or more moves in the last 60 days, and who are likely to continue to be unstably housed because of disability or multiple barriers to employment.  People who are fleeing or attempting to flee domestic violence, have no other residence, and lack the resources or support networks to obtain other permanent housing.
 These definitions do not include persons living in substandard or overcrowded housing units, persons being discharged from mental health facilities (unless the person was homeless when entering and is considered homeless at discharge), or persons who may be at risk of homelessness.

The 2022 Santa Cruz County Homeless Point-in-Time (PIT) County and Survey identifies where homeless individuals are living in the County. HUD requires communities to conduct the Pointin-Time Count every two years. The count results are shown in Table B-26. In 2022, the County counted 2,299 individuals experiencing homelessness in Santa Cruz County. Of those counted, 1,774 were unsheltered and 525 were sheltered. The number of individuals who experienced homelessness rose by 132 from 2019 to 2022. Across the two survey years listed above, Scotts Valley City had one of the lowest numbers of homelessness compared to nearby jurisdictions.

Table B-26: Homelessness in Scotts Valley and Surrounding Cities (2019-2022) Jurisdictions
Unsheltered Sheltered Total
2019 2022 2019 2022 2019 2022 Change
2019-2022
Santa Cruz County 1,700 1,774 467 525 2,167 2,299 132
Capitola 6 35 0 0 6 35 29
Santa Cruz 865 1,058 332 381 1,197 1,439 242
Scotts Valley 4 48 0 0 4 48 44
Watsonville 257 222 113 144 370 366 -4
Source: Santa Cruz County Homeless Census & Survey Comprehensive Report 2019

8. Students
The need for student housing is another significant factor affecting housing demand. Student housing often only produces a temporary housing need based on the duration of the educational institution enrolled in. The impact upon housing demand is critical in areas that surround universities and colleges. Located in close proximity to Scotts Valley is University of California, Santa Cruz; Cabrillo College; West Valley College; San Jose State University; and others. According to 2020 ACS data, there are 1,267 students enrolled in college or graduate school currently living in Scotts Valley.

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Typically, students are low-income and are, therefore, affected by a lack of affordable housing, especially within easy commuting distance from campus. Therefore, it is important for the City to consider and accommodate the student population within the community. They often seek shared housing situations to decrease expenses and can be assisted through roommate referral services offered on and off campus. A lack of affordable housing also influences choices students make after graduating.

H O U S I N G S T O C K C H A R A C T E R I S T I C S
Scotts Valley’s housing stock includes all housing units located within its jurisdiction. Housing stock growth, type, age and condition, tenure, vacancy, and cost are all important factors in determining the community’s housing needs. This section details the City’s housing stock characteristics to identify how well the needs of current and future residents are addressed.

1. Housing Growth
Table B-27 below displays housing stock growth data for Scotts Valley and nearby jurisdictions.

According to the ACS data, Scotts Valley added 862 additional housing units between 2015 and 2020, a 19.6 percent increase. Between 2010 and 2015, ACS data reports a decrease in units in Scotts Valley – as this data is based on estimates and not City housing data, this is likely not an accurate depiction.

Table B-27: Housing Unit Growth Trends
Jurisdiction 2010 2015 2020 Percent Change
2010 to 2015
Percent Change
2015 to 2020
Santa Cruz County 104,444 105,034 105,819 0.6% 0.7%
Capitola 5,616 5,112 5,292 -9.0% 3.5%
Santa Cruz 23,614 23,499 24,250 -0.5% 3.2%
Scotts Valley 4,661 4,390 5,252 -5.8% 19.6%
Watsonville 14,498 14,744 14,881 1.7% 0.9%
Source: American Community Survey, Table DP04, 5-Year Estimates, 2010, 2015, 2020

2. Housing Types
Table B-28 provides a breakdown of number of housing units by type of Scotts Valley and Santa Cruz County. Majority of the housing in the City is detached single-family (54.4 percent). About

18.3 percent of the City’s housing units are multi-family residences. Single-family attached housing makes up the smallest housing units by type.

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Table B-28: Total Housing Units by Type
Jurisdiction
Single- Family
Detached
Single-Family
Attached Multi-Family
Mobile Homes,
Boats, and other
Types of Housing
Count Percent Count Percent Count Percent Count Percent Scotts Valley 2,600 54.4% 610 12.8% 875 18.3% 694 14.5% Santa Cruz County 61,698 64.1% 7389 7.7% 20,879 21.7% 6,309 6.6% Source: American Community Survey, Table S2504, 5-Year Estimates, 2020

3. Housing Availability and Tenure
Housing tenure and vacancy rates generally influence the supply and cost of housing. Housing tenure defines if a unit is owner occupied or renter occupied. The tenure characteristics in a community can indicate several aspects of the housing market, such as affordability, household stability, and availability of unit types, among others. In many communities, tenure distribution generally correlates with household income, composition, and age of the resident.

Homeowners tend to gravitate towards single-family, detached residences as they are typically better suited for larger households and more affordable to home buyers rather than renters.

Table B-29 shows this is true for Scotts Valley where the majority of homeowners live in singlefamily homes. In contrast, renters occupying multi-family units have increased from 40 percent in 2010 to 62 percent in 2020. Homeowners also represent a higher percentage of those occupying mobile homes as they tend to be ownership units. Renters occupying mobile homes and other similar types of housing decreased from 8 percent in 2010 to zero in 2020.

Table B-29: Housing Types and Ownership (2010-2020)
Housing Type Owner Occupied Renter Occupied
2010 2020 2010 2020
Single-Family Detached 64.7% 64.2% 31.4% 28.0%
Single-Family Attached 11.4% 13.5% 20.1% 10.8%
Multi-Family 5.9% 2.4% 40.4% 61.3%
Mobile Homes and Other Types of
Housing 18.0% 19.9% 8.1% 0%
Total Number of Occupied Units 3,240 3,488 1,057 1,291
Total Percent of Occupied Units 75.4% 73.0% 24.6% 27.0% Source: American Community Survey Table B25032, 5-Year Estimates, 2010 and 2020 Scotts Valley has the smallest average household sizes compared to the nearby jurisdiction.

Table B-30 shows that the City’s owner-occupied households is similar to that of the County.

Scotts Valley has about 2.63 persons per owner-occupied household and 2.08 per renteroccupied household.

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Table B-30: Average Household Size by Tenure
Jurisdiction Owner-Occupied
Households1
Average Owner
Household Size
Renter-Occupied
Households1
Average Renter
Household Size
Santa Cruz County 60.3% 2.68 39.7% 2.73
Capitola 47.7% 2.06 52.3% 2.18
Santa Cruz 46.3% 2.53 53.7% 2.31
Scotts Valley 73.0% 2.63 27.0% 2.08
Watsonville 45.0% 3.44 55.0% 3.79
Source: American Community Survey Table B25010 and B25032, 5-Year Estimates, 2020 Vacancy rates are also an important housing indicator as they indicate the degree of housing choices available. High vacancy rates usually indicate low demand and/or high supply conditions in the housing market. High vacancy rates can be difficult for owners trying to sell or rent. Low vacancy rates usually indicate high demand and/or low supply conditions in the housing market. Low vacancy rates can inflate prices making it more difficult for lower- and moderate-income households to find housing. Vacancy rates between two to three percent are usually considered healthy for single-family or ownership housing, and vacancy rates of five to six percent are usually considered healthy for multi-family or rental housing. Vacancy rates must be viewed in the context of all local and regional market characteristics. Scotts Valley has the second highest vacancy rate behind Capitola. As shown in Figure B-6, Scotts Valley has a vacancy rate of 9 percent.

Figure B-6: For-Sale and Rental Unit Vacancy Rates by Jurisdiction Source: American Community Survey Table CP04, 5-Year Estimates, 2020

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%
Capitola
Santa Cruz
Scotts Valley
Watsonville
Santa Cruz County
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Table B-31 below displays ACS data for types of vacancy rates in Scotts Valley. “Other” vacant housing units not mentioned on this table represent the largest percent of vacancy rates in the City (59.41 percent). This is followed by seasonal, recreational, or occasional use housing units (24.31 percent), which include secondary vacation homes; these homes often do not contribute to the housing needs of a community as they are not considered valuable for long-term rental or occupancy purposes.

Table B-31: Scotts Valley Vacant Housing Units by Type
Type of Housing Estimate Percent of
Vacant
For rent 0 0.0%
Rented, not occupied 0 0.0%
For sale only 18 3.8%
Sold, not occupied 59 12.5%
For seasonal, recreational, or occasional use 115 24.3% Other vacant 281 59.4%
Total 473 100%
Source: American Community Survey, Table B25004, 5-Year Estimates, 2020

4. Housing Age and Conditions
Housing age can be an important indicator of housing conditions within a community. Many federal and state programs also use the age of housing as one factor in determining housing rehabilitation needs. Figure B-7 illustrates the housing stock age in Scotts Valley. The City experience a housing boom between 1970 and 1999 when 61 percent of the City’s housing stock was created. Units built over 30 years ago can generally be considered in need of a certain level of upgrades or repairs (such as roofing); however, this does not include historic structures which are typically well maintained. Approximately 57.9 percent of the City’s housing stock was built over 30 years ago.

Figure B-7: Housing Stock Age
Source: American Community Survey, Table B25034, 5-Year Estimates, 2020 2014 or
later
2010 to
2013
2000 to
2009
1990 to
1999
1980 to
1989
1970 to
1979
1960 to
1969
1950 to
1959
1940 to
1949
1939 or
earlier
Scotts Valley 2.2% 3.1% 14.7% 22.1% 17.9% 21.0% 9.4% 4.5% 3.1% 2.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%
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Figure B-8 below displays housing units by the year they were built and sorted by whether they are currently occupied by homeowners or renters. The data does not point towards a particular preference for older or newer units, but renters do not occupy units built since 2010. A higher percentage of renters occupy units built between 1990 and 1999.

Figure B-8: Tenure by Year Structure Built
Source: American Community Survey, Table B25036, 5-Year Estimates, 2020 The City receives concerns regarding structures in need of rehabilitation or for construction without permit, and typically investigate 1 to 2 such cases per month. The City works to correct compliance issues which may require entitlements and building permits. A code compliance case is deemed to be resolved if the Enforcement Official serves a Notice of Compliance to the responsible person or property owner, documenting that all violations have been corrected, all necessary penalties have been paid, all permits have been issued and finalized, and all administrative fees have been paid.

5. Housing Costs and Affordability
Housing costs reflects the supply and demand of housing in a community. The following summarizes the cost and affordability of Scotts Valley housing stock.

Table B-32 below shows the median home value in Scotts Valley was $811,900 in 2020. This is above the County median home value at $787,000. Table B-33 shows median monthly rental rates for units in Scotts Valley. The monthly rental rates for all unit types increased from 2016 to 2020, with the highest increase to 3 bedrooms units. The true costs of rent may be higher 2014 or
later
2010 to
2013
2000 to
2009
1990 to
1999
1980 to
1989
1970 to
1979
1960 to
1969
1950 to
1959
1940 to
1949
1939 or
earlier
Owner Occupied 1.4% 3.5% 12.9% 11.4% 12.9% 13.4% 9.0% 4.6% 2.8% 1.2% Renter Occupied 0.0% 0.0% 9.5% 37.5% 19.7% 22.3% 5.2% 1.2% 2.2% 2.4%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%
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than the ACS estimates, but the overall trend and increase in rental costs highlights the dramatic increase in less than a decade.

Table B-32: Regional Median Home Values
Jurisdictions Median Home Value
Santa Cruz County $787,000
Capitola $712,000
Santa Cruz $895,800
Scotts Valley $811,900
Watsonville $500,300
Source: American Community Survey, Table DP04, 5-Year Estimates, 2020 Table B-33: Median Gross Rent by Bedroom (2016-2020)
Unit Type 2016 2017 2018 2019 2020 % Change
2016-2020
Studio $1,363 $1,301 $1,264 $1,102 $1,381 1.3%
1 bedroom N/A N/A N/A N/A $1,279 0.0%
2 bedrooms $1,881 $1,921 $1,975 $1,879 $1,976 5.1%
3 bedrooms $2,705 $2,799 $3,111 $3,155 $3,418 26.4%
4 bedrooms + $3,103 N/A N/A N/A $3,472 11.9%
Source: American Community Survey, Table B25031, 5-Year Estimates, 2016, 2017, 2018, 2019, 2020 Housing affordability can be inferred by comparing the cost of renting or owning a home in the City with the maximum affordable housing costs for households at different income levels.

Taken together, this information can generally show who can afford what size and type of housing and indicate the type of households most likely to experience overcrowding and overpayment.

HUD conducts annual household income surveys nationwide to determine a household’s eligibility for federal housing assistance. Households in the lower end of each category can afford less by comparison than those at the upper end. The maximum affordable home and rental prices for residents in Santa Cruz County are shown in Table B-34 and Table B-35.

The data shows the maximum amount that a household can pay for housing each month without incurring a cost burden (overpayment). This amount can be compared to median home value (Table B-33) and monthly rental rates (Table B-33) to determine what types of housing opportunities a household can afford.

Extremely Low-Income Households
Extremely low-income households earn less than 30 percent of the County HAMFI – up to $32,700 for a one-person household and up to $50,400 for a five-person household in 2022.

Extremely low-income households cannot afford market-rate rental or ownership housing in Scotts Valley without assuming a substantial cost burden. The affordable purchase cost for an extremely low-income household in Scotts Valley is between $97,500 and $141,700 depending on household size; the affordable monthly rental cost is between $818 to $1,260.

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Very Low-Income Housing
Very low-income households earn between 31 percent and 50 percent of the County HAMFI – up to $54,450 for a one-person household and up to $84,000 for a five-person household in 2022. The maximum affordable price for very low-income households is $196,000 for a oneperson household and $293,600 for a five-person household. A one-person very low-income household can afford to pay up to $1,361 in monthly rent and a five-person very low-income household can pay up to $2,100 in monthly rent. Given housing costs, very low-income households cannot afford market-rate rental or ownership housing in Scotts Valley without assuming a substantial cost burden.

Low-Income Housing
Low-income households earn between 51 percent and 80 percent of the County’s HAMFI - up to $87,350 for a one-person household and up to $134,750 for a five-person household in 2022.

The maximum affordable home price for a low-income household is $345,000 for a one-person household and $523,250 for a five-person household. A one-person low-income household could afford to pay up to $2,184 in rent per month and a five-person low-income household could afford to pay as much as $3,369 per month. Low-income households in Scotts Valley would not be able to find adequately sized affordable apartment units (Table B-34).

Moderate-Income Housing
Persons and households of moderate-income earn between 81 percent and 120 percent of the County’s HAMFI – up to $100,200 for a one-person household and up to $154,600 for a fiveperson household in 2022. The maximum affordable home price for a moderate-income household is $402,930 for a one-person household and $613,120 for a five-person household.

Moderate income households may be able to purchase a home in Scotts Valley, depending on the household size. The maximum affordable rent payment for moderate-income households is between $2,505 and $3,865 per month. Appropriately sized, market-rate rental housing is generally affordable to moderate-income households.

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Table B-34: Affordable Housing Costs for Homeowners (2022) Annual Income Mortgage Utilities1 Tax and
Insurance
Total
Affordable
Monthly
Housing Cost
Affordable
Purchase Price
Extremely Low-Income (30% of HAMFI)
1-Person $32,700 $458 $237 $123 $818 $97,500
2-Person $37,350 $540 $254 $140 $934 $115,000
3-Person $42,000 $593 $300 $158 $1,050 $126,250
4-Person $46,650 $645 $346 $175 $1,166 $137,500
5-Person $50,400 $665 $406 $189 $1,260 $141,700
Very Low-Income (50% of HAMFI)
1-Person $54,450 $920 $237 $204 $1,361 $196,000
2-Person $62,200 $1,068 $254 $233 $1,555 $227,500
3-Person $70,000 $1,188 $300 $263 $1,750 $253,000
4-Person $77,750 $1,306 $346 $292 $1,944 $278,200
5-Person $84,000 $1,379 $406 $315 $2,100 $293,600
Low-Income (80% HAMFI)
1-Person $87,350 $1,619 $237 $328 $2,184 $345,000
2-Person $99,800 $1,867 $254 $374 $2,495 $397,600
3-Person $112,300 $2,086 $300 $421 $2,808 $444,320
4-Person $124,750 $2,305 $346 $468 $3,119 $490,880
5-Person $134,750 $2,457 $406 $505 $3,369 $523,250
Moderate-Income (120% HAMFI)
1-Person $100,200 $1,892 $237 $376 $2,505 $402,930
2-Person $114,500 $2,179 $254 $429 $2,863 $464,050
3-Person $128,850 $2,438 $300 $483 $3,221 $519,200
4-Person $143,150 $2,696 $346 $537 $3,579 $574,150
5-Person $154,600 $2,879 $406 $580 $3,865 $613,120

1. Utilities include garbage, sewer, water, refrigerator, range, water heating, cooking, heating, and general utilities such as lights.

Source: Santa Cruz County Housing Authority Utility Allowance Schedule; California Department of Housing and Community Development, 2022 State Income Limits, and Kimley Horn and Associates.

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Table B-35: Affordable Monthly Housing Cost for Renters (2022) Annual Income Rent Utilities1 Total Affordable Monthly
Housing Cost
Extremely Low-Income (30% of HAMFI)
1-Person $32,700 $581 237 $818
2-Person $37,350 $680 254 $934
3-Person $42,000 $750 300 $1,050
4-Person $46,650 $820 346 $1,166
5-Person $50,400 $854 406 $1,260
Very Low-Income (50% of HAMFI)
1-Person $54,450 $1,124 237 $1,361
2-Person $62,200 $1,301 254 $1,555
3-Person $70,000 $1,450 300 $1,750
4-Person $77,750 $1,598 346 $1,944
5-Person $84,000 $1,694 406 $2,100
Low-Income (80% HAMFI)
1-Person $87,350 $1,947 237 $2,184
2-Person $99,800 $2,241 254 $2,495
3-Person $112,300 $2,508 300 $2,808
4-Person $124,750 $2,773 346 $3,119
5-Person $134,750 $2,963 406 $3,369
Moderate-Income (120% HAMFI)
1-Person $100,200 $2,268 237 $2,505
2-Person $114,500 $2,609 254 $2,863
3-Person $128,850 $2,921 300 $3,221
4-Person $143,150 $3,233 346 $3,579
5-Person $154,600 $3,459 406 $3,865

1. Utilities include garbage, sewer, water, refrigerator, range, water heating, cooking, heating, and general utilities such as lights.

Source: Santa Cruz County Housing Authority Utility Allowance Schedule; California Department of Housing and Community Development, 2022 State Income Limits, and Kimley Horn and Associates.

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A variety of constraints may affect the provisions and
opportunities for adequate housing in the City.

Housing Constraints consist of both governmental
constraints (including, but not limited to,
development standards and building codes, land use
controls, and permitting processes) and nongovernmental or market constraints (including, but not limited to, land costs, construction costs, and
availability of finances). Potential infrastructure and environmental obstacles are also classified as
housing constraints. Combined, these factors can
create barriers to availability and affordability of new housing, especially for lower and moderate-income
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N O N - G O V E R N M E N T A L C O N S T R A I N T S
Non-governmental constraints largely affect the cost of housing in Scotts Valley and can produce barriers to housing production and affordability. These constraints may include real wages, the availability and cost of land for residential development, the demand for housing, financing and lending, construction costs, and the availability of labor, which can make it expensive for developers to build any housing and especially affordable housing. The following highlights the primary market factors that affect the production of housing in Scotts Valley.

1. Land Costs and Constructions
Construction costs vary widely according to the type of development, with multi-unit housing generally less expensive per unit to construct than single-unit homes. However, there is variation within each construction type, depending on the size of the unit and the number and quality of amenities provided. An indicator of construction costs is Building Valuation Data compiled by the International Code Council (ICC). The International Code Council was established in 1994 with the goal of developing a single set of national model construction codes, known as the International Codes, or I-Codes. The ICC updates the estimated cost of construction at six-month intervals and provides estimates for the average cost of labor and materials for typical Type VA wood-frame housing. Estimates are based on “good-quality” construction, providing for materials and fixtures well above the minimum required by state and local building codes.

In February 2022, the ICC estimated that the average per square-foot cost for good-quality housing was approximately $144.50 for multi-unit housing, $160.35 for single-unit homes, and $181.25 for residential care/assisted living facilities. Construction costs for custom homes and units with extra amenities, run even higher. Construction costs are also dependent upon materials used and building height, as well as regulations set by the City’s adopted Building Code. For example, according to the ICC, an accessory dwelling unit (ADU) or converting a garage using a Type VB wood framed unit would costs about $150.87 per square foot. Although construction costs are a significant portion of the overall development cost, they are consistent throughout the region and, especially when considering land costs, are not considered a major constraint to housing production in Scotts Valley.

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Table C-1: Square Foot Construction Costs for Type VA Wood-frame Housing Group (2021 International Building Code) VA
A-1 Assembly, theaters, with stage $244.80
A-1 Assembly, theaters, without stage $218.59
A-2 Assembly, nightclubs $183.68
A-2 Assembly, restaurants, bars, banquet halls $181.68
A-3 Assembly, churches $223.05
A-3 Assembly, general, community halls, libraries, museums $179.77 A-4 Assembly, arenas $216.59
B Business $172.02
E Educational $189.21
F-1 Factory and Industrial, moderate hazard $92.69
F-2 Factory and industrial, low hazard $92.69
H-1 High Hazard, explosives $84.34
H234 High Hazard $84.34
H-5 HPM $172.02
I-1 Industrial, supervised environment $181.25
I-2 Institutional, hospitals $331.40
I-2 Institutional, nursing homes $211.75
I-3 Institutional, restrained $206.24
I-4 Institutional, day care facilities $181.25
M Mercantile $123.17
R-1 Residential, hotels $183.44
R-2 Residential, multiple family $144.50
R-3 Residential, one- and two-family d $160.35
R-4 Residential, care/assisted living facilities $181.25 S-1 Storage, moderate hazard $82.34
S-2 Storage, low hazard $82.34
U Utility, miscellaneous $63.42
International Code Council Building Valuation Data, February 2022 Notes: 1) Private Garages use Utility, miscellaneous, 2) For shell only buildings deduct 20 percent, 3) N.P. = not permitted, 4) Unfinished basements (Group R-3) = $23.20 per sq. ft.

Land costs can also pose a significant constraint to the development of affordable and middleincome housing and represents a significant cost component in residential development. Land costs may vary depending on whether the site is vacant or has an existing site that must be removed. Similarly, site constraints such as environmental issues (e.g., steep slopes, soil stability, seismic hazards, flooding) can also be factored into the cost of land. Additional costs may be associated with redeveloping and/or converting sites which may influence the cost of the rental units or home value.

A Zillow search for vacant lots sold since 2020 returned lots ranging from 0.14 acres to 48 acres.

Of the lots listed, the costs ranged higher in the southern part of the City near Mt. Hermon Road and Scotts Valley Drive, while costs were lower for sites located in the northern, undeveloped forest regions. Table C-1 shows the acreage cost of vacant land in Scotts Valley compared to neighboring jurisdictions. Scotts Valley’s average cost per square-foot is just below the total average for all five of the jurisdictions. Costs are the highest in Felton and Ben Lomond DRAFT

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and the lowest in the mountainous areas of Santa Cruz. Given these figures, the cost of land is not considered a constraint to development as it is not uniquely high in Scotts Valley and is similar to that of the surrounding region for similar communities.

Table C-1: Average Vacant Land Cost
Jurisdiction Vacant Lots Sold Average Lot Acreage Average Cost Per SquareFoot Felton 45 9.52 acres $48.38
Scotts Valley 28 3.98 acres $21.86
Ben Lomond 16 15.09 acres $53.87
Boulder Creek 113+ 45.06 acres $14.17
Santa Cruz1 51 5.07 acres $6.73

1. Accounts for parcels located in the Santa Cruz Mountain, not along the coast.

Source: Zillow.com (Accessed February 2023).

2. Availability of Financing
The availability of financing in a community depends on a number of factors, including: the type of lending institutions active in a community, lending practices, algorithms, rates, and fees charged, laws and regulations governing financial institutions, and equal access to such loans.

Additionally, availability of financing affects a person’s ability to purchase or improve a home.

Under the Home Mortgage Disclosure Act (HMDA), lending institutions are required to disclose information on the disposition of loan applications and the income, gender, and race of loan applicants. The primary concern in a review of lending activity is to determine whether home financing is available to all residents of a community, regardless of income, sex, race, or ethnicity. The data presented in this section include the disposition of loan applications submitted to financial institutions for home purchase, home improvement, and refinancing in the Santa Cruz-Watsonville Metropolitan Statistical Areas/Metropolitan Divisions (MSA/MD).

Table C-2 below displays the disposition of loan applications for the Santa Cruz-Watsonville MSA/MD per the 2021 Home Mortgage Discloser Act report. According to the data, applications in the 100-119 percent of the MSA/MD median had the highest rates of loan approval. Within that income category, those who identify as Native Hawaiian or other Pacific Islander had the highest approval rates (80 percent), while those who identify as American Indian and Alaska Native and Hispanic or Latino had the lowest rates (60 and 65.2 percent, respectively). There is no general trend across income categories. Those who identify as White had significantly more applications than any other racial or ethnic group. Persons who identify as White accounted for 81 percent of all applications received. Some racial or ethnic groups only had a handful of applications in certain income categories which has skewed the results.

According to the data, applicants who identify as Black or African American were on average more likely than other race to receive a loan approval (70.1 percent). Given the generally high rates of loan approvals, home financing is typically available and not considered to be a constraint to the provision and maintenance of housing in Scotts Valley.

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Table C-2: Disposition of Loan Applications by Race/Ethnicity – Santa Cruz-Watsonville MSA/MD Applications by Race/Ethnicity Approved Denied Other(1) Total Count LESS THAN 50% OF MSA/MD MEDIAN
American Indian and Alaska Native 21.4% 42.9% 35.7% 14
Asian 35.7% 31.0% 33.3% 42
Black or African American 61.5% 23.1% 15.4% 13
Native Hawaiian or other Pacific Islander 0.0% 100.0% 0.0% 2 White 48.6% 26.1% 25.3% 1,086
Hispanic or Latino 41.9% 32.6% 25.6% 227
50-79% OF MSA/MD MEDIAN
American Indian and Alaska Native 46.2% 23.1% 30.8% 13
Asian 46.7% 30.7% 22.7% 75
Black or African American 50.0% 25.0% 25.0% 12
Native Hawaiian or other Pacific Islander 66.7% 16.7% 16.7% 6 White 65.0% 14.9% 20.1% 1,942
Hispanic or Latino 60.2% 17.1% 22.7% 467
80-99% OF MSA/MD MEDIAN
American Indian and Alaska Native 33.3% 66.7% 0.0% 6
Asian 56.0% 8.0% 36.0% 25
Black or African American 100.0% 0.0% 0.0% 3
Native Hawaiian or other Pacific Islander 50.0% 0.0% 50.0% 2 White 69.1% 8.8% 22.1% 748
Hispanic or Latino 61.4% 14.3% 24.3% 140
100-119% OF MSA/MD MEDIAN
American Indian and Alaska Native 60.0% 20.0% 20.0% 10
Asian 69.9% 8.7% 21.4% 103
Black or African American 76.5% 11.8% 11.8% 17
Native Hawaiian or other Pacific Islander 80.0% 20.0% 0.0% 5 White 73.6% 8.7% 17.7% 2,212
Hispanic or Latino 65.2% 10.5% 24.3% 362
120% OR MORE OF MSA/MD MEDIAN
American Indian and Alaska Native 65.2% 4.3% 30.4% 23
Asian 71.3% 6.6% 22.1% 470
Black or African American 62.5% 12.5% 25.0% 32
Native Hawaiian or other Pacific Islander 71.4% 7.1% 21.4% 14 White 74.5% 7.5% 18.0% 7,018
Hispanic or Latino 68.9% 12.7% 18.4% 550
Notes: 1. “Other” includes: applications withdrawn, files closed for incompleteness, and purchased loans.

Source: Consumer Financial Protection Bureau, Disposition of loan applications, by Ethnicity/Race of applicant, 2021. DRAFT

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3. Economic Constraints
Market forces on the economy and the trickle-down effects on the construction industry can act as a barrier to housing construction and especially to affordable housing construction. It is estimated that housing price growth will continue in the City and the region for the foreseeable future. Moving into 2020, the economy was growing, California was seeing a 1.6 percent growth in jobs from 2019 and experiencing all-time lows for unemployment rates. The COVID19 pandemic had stalled much of the economy in early 2020; however, as Figure C-1 shows, the Scotts Valley housing market has maintained overall growth Figure C-2 shows decline in number of homes sold in Scotts Valley which may indicate a lack of inventory, which contributes to higher median sale prices.

Figure C-1: Scotts Valley Housing Market Trends – Median Sale Price 2020-2022 Source: Redfin, Scotts Valley Housing Market Trends (Accessed January 24, 2023).

Figure C-2: Scotts Valley Housing Market Trends – Number of Homes Sold 2020-2022 Source: Redfin, Scotts Valley Housing Market Trends (Accessed January 24, 2023). $800,000.00
$1,000,000.00
$1,200,000.00
$1,400,000.00
$1,600,000.00
$1,800,000.00
$2,000,000.00
2020 2021 2022
5 10
15 20
25 30
35 2020
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2021 2022

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An October 2022 California Association of Realtors (CAR) report found that single-family homes on the market in Santa Cruz County had a median sold price of $1,362,000 and experienced a year-to-year change of 19.9 percent. Santa Cruz County is found in the Central Coast region which has a median sold price of $937,500 during the same period. Single-family homes on the market in the San Francisco Bay Area had the highest median sold price in the State of California at $1,250,000.

According to a CAR First-Time Buyer Housing Affordability Index report for the third quarter of 2022, the median home price for a single-family home in Santa Cruz County was $1,066,750 with monthly payments of $6,120 (including taxes and insurance). This required a minimum qualifying income of $183,600. In comparison, the median cost for a single-family home in California was $705,300 with monthly payments of $4,050 and a minimum qualifying income of $121,500.

The cost of land and home prices in Scotts Valley may be considered a constraint to the development of and access to housing, particularly the development of and access to affordable housing; however, as these home and land costs are consistent with jurisdictions in the region, and lower than nearby coastal communities, they are not considered a unique constraint.

E N V I R O N M E N T A L C O N S T R A I N T S
Scotts Valley may be susceptible to several environmental constraints. Features such as hillsides and waterways can present risks due to flood, geologic, and seismic hazards. In addition, human-caused risks, such as hazardous materials, can pose risks to community health and safety. Effective planning to prepare for and mitigate the adverse effects of these risks can help ensure that Scotts Valley maintains a high level of safety for its residents. The City plans and engages mitigation techniques through the City’s Safety and Noise Element.

1. Geological and Seismic Hazards
Geologic and seismic hazards in Scotts Valley include those related to earthquakes, steep slopes and landslides, erosion, and soil subsidence. According to the USGS Interactive Fault Map, major faults near Scotts Valley include the Zayante Fault, San Andreas Fault, Butano Fault, and Ben Lomond Fault. The Zayante Fault Zone is located approximately 1.5 miles north of Scotts Valley and is the closest major fault to the City. Residential development within a seismically active zone could expose Scotts Valley residents to adverse effects.

A lesser geological hazard relates to soil stability in the City. Hillsides located mostly on the periphery of the City can be subject to landslides and portions of the City have expansive soil types. In addition, some areas may be subject to liquefaction during a seismic event if groundwater is present near the surface. To ensure structural stability, seismic and geologic DRAFT

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hazards are addressed through the environmental and development review and permitting process. The City’s General Plan also establishes policies to address potential hazards.

2. Flood Hazards
Potential flooding in Scotts Valley is attributable to heavy rainfalls, localized drainage problems, and failures of flood control. The City is principally drained by Carbonera Creek, which begins

1.3 miles north of the City limits. Insufficient channel capacity to handle peak flood flows and obstruction (such as vegetation) in the stream channel can increase flood potential. Scotts Valley’s geographic location in proximity to several creeks and waterways contribute to the flood risk within the City. Flooding has occurred primarily along Carbonera Creek and Bean Creek, which are included as flood hazard areas in existing Federal Emergency Agency (FEMA) maps.

The City, in conjunction with the Army Corps of Engineers, works to improve flood capacity along Carbonera Creek. To reduce potential flood hazards, the City’s floodplain management ordinance requires flood proofing or elevation of structures above flood heights in federally designated flood plains. The City regulates development in flood hazard areas in accordance with the floodplain management ordinance. Figure C-3 shows the flood risk throughout the City.

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Figure C-3: FEMA Flood Zones
Source: HCD AFFH Data Viewer – Special Flood Hazard Areas DRAFT

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3. Fire Hazards
Fire hazards are generally categorized as wildland fires and structural fires. Wildland fires (large-scale brush and grass fires) post the most risk to the City and particularly neighborhoods near areas of high vegetation. The City is surrounded by undeveloped hillsides with high vegetation that are at high-risk of human-caused wildfires. The factors contributing to fires include highly flammable brush, rugged terrain, dry northeast winds, periods of drought, and an expanding population. In addition to wildland fires, the City experiences fires from structural, vehicular, utility, and other sources as well. According to the General Plan, fires in Scotts Valley tend to be structural year-round while wildland fires in nature occur during summer months.

CalFire has mapped the fire hazard severity zones for cities in California. The CalFire Map shows three severity zones: Moderate, High, and Very High. Figure C-4 shows that portions of the City are located in Moderate fire hazard severity zones. While the City is not located in any Very High or High fire hazard severity zones, the surrounding area includes areas in Moderate to High severity zones, making the City at-risk for potential fire hazards.

Figure C-4: CalFire Fire Hazard Severity Zones
Source: CalFire Hazard Severity Zones in Local Responsibility Areas – Santa Cruz County Although the City has identified environmental factors above, they do not impact the City’s ability to accommodate the number of units required to meet the RHNA obligation.

The City has reviewed all sites for the above environmental concerns and considerations as well as development regulation and land use restrictions. Additionally, each site has been reviewed for access to infrastructure, water, utilities, and additional development constraints. Where the DRAFT

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analysis showed increased barriers to development related to environmental concerns, infrastructure concerns or existing conditions and development concerns (such as fire hazards, hazardous surrounding uses, restrictive development standards, etc.) the sites were removed.

The result is a list and analysis of sites which are most appropriate for development or redevelopment for housing, a complete analysis of the sites is provided in Appendix F.

G O V E R N M E N T A L C O N S T R A I N T S
In addition to market constraints, local policies and regulations also affect the price of affordability of housing and the provision of affordable housing. For example, State and Federal regulations affect the availability of land for housing and the cost of housing production, making it difficult to meet the demand for affordable housing and limiting supply in a region.

Regulations related to environmental protection, building codes, and other topics may have significant, often adverse, impacts on housing cost and affordability.

While the City has no control over State and Federal policies and regulations that affect housing, the City’s Housing Element can address local policies and regulations that create a constraint on the development of housing, and particularly affordable housing.

1. Land Use Controls
Jurisdictions in California are required by Law to prepare a comprehensive, long-term General Plan to guide future development. The Land Use Element of the General Plan establishes permitted land uses and development density throughout the City. These land uses provide a wide variety of housing types throughout the City, while also ensuring compatibility between neighboring uses. Table C-3 lists the land uses that permit residential developments and their density ranges with the number of new dwelling units at buildout– this information is readily available on the City’s website, in compliance with State transparency requirements.

Table C-3: Residential Land Uses and Density Ranges
General Plan Land Uses
Density Range
(dwelling unit per
acre)
Population Density
(persons per acre)
Total Vacant
Acres
Number of New
Dwelling Units at
Buildout
Very High Residential R-VH 15.1 – 20 37.7 – 50 11 168 – 220 High Residential RM-15 9.0 – 15.0 22.5 – 37.5 12.8 115 – 192 Medium High Residential RM 6
/ RM 8 5.0 – 9.0 12.5 – 22.5 25 125 – 225
Medium Residential R-1-20 2.0 – 5.0 5.0 – 12.5 91 182 – 455 Low Residential R-1-10 2 5 71 142
Estate Residential R-1-40 1 2.5 46 46
Rural Residential RR 2.5 1 1 203 82
Mountain Residential RMT-5 1 0.5 25 5
Source: City of Scotts Valley General Plan, Land Use Element, Table LU – 2 Vacant Residential Land DRAFT

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2. Zoning Districts
The City’s Zoning Code establishes the following residential zoning districts:
 Residential Single-Family Zoning District (R-1) – Designed to provide areas for singlefamily residential development where lot sizes and densities are designed to accommodate large areas of open space for recreational activities compatible with a residential environment.
 Multiple Residential Zoning District (R-M-6/R-M-8) – Designed to provide areas for single-family subdivisions and townhouse and condominium development at lower density ranges than the R-H district.
 High-Density Residential District (R-H) – Designed to provide areas for apartments, townhomes, condominiums, and similar development with a maximum of open space and other amenities which will enhance the living qualities of the development and promote the housing goals of the general plan.
 Very High-Density Residential District (R-VH) – Designed to provide areas for apartments, townhouses, condominiums, and similar development with open space and other amenities which will enhance the living qualities of the development and promote the housing goals of the general plan.
 Residential-Rural District (R-R-2.5) – Designed to provide areas for large-lot residential living and minor agricultural activities for areas designated in the General Plan as “rural residential.”
 Residential-Mountain District (R-MT-5) – Designed primarily for hillside areas designated as “mountain residential” in the General Plan where environmental constraints require development at lower densities.
 Service Commercial (C-S) – Designed to create and maintain areas accommodating citywide and regional service that may be inappropriate in neighborhood or pedestrianoriented shopping areas and which generally require automotive access for customer convenience, servicing of vehicles or equipment, loading or unloading, or parking of commercial service vehicles. Multi-family dwelling units are permitted if they are located either above the ground-level commercial use or at ground level at the rear of a commercial space.

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Figure C-5: City of Scotts Valley Zoning Map
Source: Scotts Valley’s Zoning Map
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Combining Zoning Districts
A Combining Zoning District is a regulatory tool that adds special provisions and regulations to an area. This may be added to a neighborhood or corridor on a map, or it may apply to the City as whole and be applied under certain circumstances. All proposed developments within the Combining District must comply with the District’s applicable development standards in addition to the Zoning Code standards. In the event of a conflict between the regulations of the base zoning district and the regulations of the Combining District, the regulations of the Combining District will come first. Combining zoning may be a constraint to the development of housing when it sets standards which are more restrictive than the Zoning Code; however, no sites have been identifies within these districts as part of the candidate sites analysis. Below are Combining Zoning districts present in Scotts Valley:
 TP Timberland Production Zoning District – Intended to protect and maintain the timberland by regulating timberland use. The TP Zoning District is a combining district intended to be attached to an open space (OS) base district and allows one single-family dwelling, with accessory structures and utilities, on a separate legal parcel with a minimum of forty acres. Under a conditional use permit, the district permits one or more single-family dwellings, with accessory structures, at a density maximum of one dwelling unit per ten acres.
 ST Special Treatment Combining District – Intended to encourage the incorporation of special design considerations into project development to implement a visually pleasing environment in areas deemed to be of special importance to the community image. Development is subject to the submittal requirements of a specific plan.
 FW Floodway Combining District – Establishes provisions designed to promote the public health, safety, and general welfare and to minimize public and private losses due to flood conditions. For example, potential buyers must be notified if a parcel is in an area of a special flood hazard. The FW Combining District is intended to apply to all land within the one-hundred-year flood zone according to federal flood insurance rate maps.
 HR Hillside Residential Combining District – Intended to encourage and provide incentives for excellence in design principles and engineering techniques for all residential land and parcels on an average slope greater than ten percent while also minimizing disturbance to the natural slope. The HR District is intended to provide for a variety of dwelling types where consolidation of parcels and unified DRAFT
development may be appropriate.

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3. Variety of Housing Permitted
Housing Element Law requires jurisdictions to identify sites to be made available through zoning and development standards in order to facilitate development of a variety of housing types for all socioeconomic levels of the population. Housing types include single-unit dwellings, multi-unit housing, accessory dwelling units, factory-built housing, mobile homes, employee and agricultural work housing, transitional and supportive housing, single-room occupancy units (SROs), and housing for persons with disabilities. Table C-4 shows the various housing types permitted throughout the City in zoning districts which permit housing or care facility uses. The City is in compliance with all transparency requirements and all zoning information, development standards, and fees are available on the City’s website and at the Planning Department Counter.

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Table C-4: Housing Types Permitted
Residential Uses R-VH R-H R-M-6 R-M-8 R-1 R-R-2.5 R-MT-5 C-S C-SC I-L P OS TP Agricultural and Employee Housing - - - - - - - - - - - - - Community Care Residential Facility (Small) P P P P P P P - - - P - - Community Care Facility and Institution
(Large) CUP CUP CUP CUP CUP CUP - - - - - -
Day Care Centers CUP CUP CUP CUP CUP CUP CUP - - - CUP - - Duplex - - - - - - - - - - - -
Emergency Shelter (less than or equal to 25
occupants) - - - - - - - P P - P - -
Emergency Shelter (more than 25
occupants) - - - - - - - CUP CUP - CUP - -
Family Child Care Homes (Small) P P P P P P P - - - - - - Family Child Care Homes (Large) - - P P CUP CUP CUP - - - - - - Foster Homes (Six or Fewer) - - CUP CUP P P P - - - - - - Foster Homes (Exceeds Six) - - - - CUP CUP CUP - - - - - - Low Barrier Navigation Centers - - - - - - - - - - - - - Mobile Home/Manufactured Housing P P P P - - - - - - - - Multi-Family Dwellings P P P P - - - CUP/P* - - - - -
Student Housing - - - - - - - - - - CUP - -
Residential Care Facilities - - - - - - - - - - CUP - - Secondary Dwelling Units - - - - P P P - - - - CUP P/CUP Single-Family Dwellings - P P P P P P - - - P CUP P/CUP Transitional And Supportive Housing P P P P P P P CUP - CUP - - - Notes: Refer to Scotts Valley Code of Ordinances under Title 17 Zoning for full definitions of each residential use.

P – Permitted
CUP – Conditional Use Permit
*When located above a ground-level commercial use or at ground level at the rear of a commercial space on sites designated in the 5th Cycle Housing Element. CUP required for all other mixed-use multifamily residential projects.

Source: Scotts Valley Municipal Code (SVMC) Title 17 – Zoning DRAFT

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Single-Family Dwelling
A single-family dwelling is defined as a detached building designed or used for residence purposes by one housekeeping unit. Single-family dwellings are permitted as a primary use in the R-H, R-M-6, R-M-8, R-1, R-R-2.5, R-MT-5, P, and T districts.

Multi-Family Dwelling
A multi-family dwelling is defined as a building, or portion thereof, designed or used for residence purposes by two or more families or housekeeping units. Multi-family dwellings are permitted as a primary use in R-VH, R-H, R-M-6, and R-M-8 districts.

Multi-family dwellings are a conditionally permitted use in the C-S district when located above a ground-level commercial use or at the ground level at the rear of a commercial space. If the project site was designated in the Housing Element, then a mixed-use project is permitted as a primary use.

Accessory Dwelling Unit (ADU)
An accessory dwelling unit, also known as secondary dwelling units, is defined as an attached or detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a parcel with a proposed or existing dwelling. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multi-family dwelling is or will be situated. ADUs also includes the following:

1. An efficiency unit, as defined in Section 17958.1 of the California Health and Safety Code; and

2. A manufactured home, as defined in Section 18007 of the California Health and Safety Code.

ADUs may be created or occupied only if the unit meets all of the restrictions and standards set out in State Law. A program is included in the Housing Plan to ensure the ADU Program complies with State housing laws and facilitates development throughout the planning period.

Manufactured/Mobile Homes
Manufactured homes, mobile homes, or modular homes are defined as a single-family housing units. They are certified under the National Mobile Home Construction and Safety Standards Act of 1974. Furthermore, mobile homes are to be placed on a foundation system, pursuant to Section 18551 of the Health and Safety Code or constructed in accordance with the appropriate Uniform Building Code, Plumbing Code, Electrical Code, etc., that has been adopted and is in effect within Scotts Valley. Mobile home parks are defined as subdivisions that are designed to accommodate mobile homes. All manufactured homes shall meet the anchoring standards of Section 15.16.180 of the Municipal Code. Manufactured homes and mobile homes are R-VH, RH, R-M-6, R-M-8, and R-1 districts.

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Community Care Residential Facility
A community care residential facility is any family home, group-care facility, or similar facility determined pursuant to State law, for twenty-four-hour non-medical care of persons in need of personal service, supervision, or assistance essential for sustaining the activities of daily living or for the protection of the individual. A small community care residential facility is one which serves six or fewer persons, whereas a large community care facility has seven or more residents. Small community care residential facilities are permitted in P, R-VH, R-H, R-1, R-R-2.5, R-MT-5, R-M-6, and R-M-8 districts. Large community care residential facilities are permitted in P district and conditionally permitted in R-H, R-1, R-R-2.5 districts.

Supportive Housing
Supportive Housing is defined as housing with no limit on length of stay, that is occupied by the target population, and that is linked to on-site or off-site services that assist the supportive housing resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community. Supportive housing is considered a residential use and is subject only to the restrictions and standards that apply to other residential dwellings of the same type (e.g., single-family residence(s) or multifamily development) in the same zone. Supportive housing is permitted in R-VH, R-H, R-M-6, R-M-8, R1, R-MT-5, and R-R-2.5 districts.

Transitional Housing
Transitional Housing is defined as buildings configured as rental housing developments but operated under program requirements that call for the termination of assistance or recirculation of the assisted unit to another eligible program recipient at some predetermined future point in time, which shall be no less than six months. Transitional Housing is considered a residential use and is subject only to the restrictions and standards that apply to other residential dwellings of the same type (e.g., single-family residence(s) or multi-family development) in the same zone. Transitional housing is permitted in R-VH, R-H, R-M-6, R-M-8, R-1, R-MT-5, and R-R-2.5 districts.

Emergency Shelter
An 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.

In compliance with AB 139, emergency shelters with 25 occupants or less are permitted in C-SC, P, and C-S districts without approval of any discretionary permits. If an emergency shelter has greater than 25 occupants, it is conditionally permitted in C-SC, P, and C-S districts. These three zoning districts are located along the City’s two main corridors – Mt. Hermon Road and Scotts Valley Drive – which provide for efficient access to community resources, services, and public transportation (see Figure C-5). AB 139 also states that jurisdiction may impose parking requirements to accommodate emergency shelter staff. Currently, proposed emergency DRAFT

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shelters must provide off-street parking at the ratio of one space per three beds, and/or 1 per bedroom designated as a family units with children, plus one space per staff member. A program is included in the Housing Plan to amend these requirements in compliance with AB 139.

Additionally, Figures C-8a and C-8b show hazardous waste generators and percentiles for the region and the City. The hazardous waste percentiles for Scotts Valley are 62 and 90, which means the number and type of hazardous wase generators and sites throughout the City is higher than 62 and 90 percent of the census tracts in California. This represents data collected between 2018 and 2020. The specific generators located within the City are:
 Kaiser Permanente Scotts Valley
medical offices
 Threshold Enterprises
(distributor of fine, natural,
nutritional, and specialty
products)
 Scotts Valley Sportsmen’s Club
Shooting Range
 Fox Factory Inc. Racing Shox
(corporate campus)
 Palo Alto Medical Foundation
 Bay Photo Lab
 Walgreens
 CVS Pharmacy
While considered hazardous waste generators, these businesses do not create an environment unfit for human habitation. Furthermore, residential units currently safely exist around the uses, and residents benefit from their products and employment opportunities. As such, they do not pose a threat to the development and use of future emergency shelters.

Figure C-8a: Regional Hazardous Waste Generators
Source: CalEnviroScreen 4.0
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Figure C-8b: Scotts Valley Hazardous Waste Generators
Source: CalEnviroScreen 4.0
Additionally, the Mt. Hermon Road and Scotts Valley Drive corridors have direct access to the Santa Cruz METRO routes 35/35E, which provides access throughout the San Lorenzo Valley and connects to the City of Santa Cruz (Figure C-9). Highway 17 Express – Amtrak Thruway also stops at the Cavallaro Transit Center in the heart of Scotts Valley – connecting the City to San Jose and the Bay Area. Potential emergency shelter occupants are located within a half a mile to public transportations with destinations throughout the entire region.

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Figure C-9: Santa Cruz METRO Route 35/35E
Source: Santa Cruz METRO
Agricultural and Employee Housing
California Health and Safety Code Sections 17021.5 and 17021.6 requires agricultural housing to be permitted by-right, without a conditional use permit (CUP), in single-family zones for six or fewer persons and in agricultural zones with no more than 12 units or 36 beds. A program is included in the Housing Plan to ensure the City’s development standards comply with these requirements.

Low Barrier Navigation Centers
Low-barrier navigation centers are defined as 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. Low-barrier navigation centers are required by State law as a use by-right in areas zoned for mixed uses and non-residential zones permitting multi-family uses if it meets specified requirements. A program is included in the Housing Plan to ensure compliance with State law.

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4. Residential Development Standards
The City’s Zoning Code establishes regulations and development standards for each residential district to provide a range of housing types. These standards and regulations are intended to create, preserve, and enhance residential neighborhood sites for a range of development types and lifestyles. The City establishes development standards to regulate development through its Zoning Code (Table C-5). All information regarding the City’s zoning and development standards are available online pursuant to Government Code §65940.1 (a)(1)(B).

Table C-5: Scotts Valley Residential Development Standards Zone
Min. Dimensions (Sq. Ft) Min. Yard Setbacks* (Feet) Construction Standards Lot Size
(sf)
Lot
Width
Min. Lot
Depth (feet) Front Side Rear Max. Height (feet)
Max. Density
(sf/du)
SiteSite
coverage
R-VH 6,000 60 60 10 10 20% of
lot depth 35 2,100 55%
R-H 6,000 60 60 20 10% of lot width 20% of
lot depth 35 3,000** 55%
R-M-6 6,000 50 100 20 10% of lot width,
max 6 feet 15 35 5,000** 55%
R-M-8 8,000 60 100 20 10% of lot width
with max 8 feet 15 35 8,000 55%
R-1-10 10,000 60 100 20 10% of lot width
with max 10 feet 15 35 10,000 50%
R-1-20 20,000 90 125 30 10% of lot width
with max 10 feet 15 35 20,000 50%
R-1-40 40,000 100 150 30 10% of lot width
with max 10 feet 20 35 40,000 50%
R-R-2.5 2.5 ac 100 150 40 15 20 35 2.5 ac/du 35%
R-MT-5 5 ac 100 150 40 20 25 35 5 ac/du 35%
*Additional yard standards may apply and are provided in the City’s Municipal Code. **If, after dividing the area of the lot by the area required per dwelling unit or structure containing a dwelling unit, a remainder of more than 70 percent of the area required for an additional unit is obtained, one additional dwelling unit may be located on the site. For detailed standards, see SVMC Chapter 17.

Source: Scotts Valley Municipal Code – Title 17 Zoning.

Definition of Family
Under the right of privacy, the California Constitution prohibits a restrictive definition of “Family” which limits the number of unrelated persons and differentiates between related and unrelated individuals living together. The City’s Zoning Code defines “Family” as “a person or persons related by blood, marriage, or adoption or a group of not more than five persons, excluding servants, not related by blood, marriage, or adoption, living together as a single housekeeping unit in a dwelling unit.”
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Yard Requirements
The City defines a yard through front, rear, side, side exterior, and side interior yards. Front yards are defined as an open space extending the full width of the lot, measured between the portion of the building closest to the front lot line and said front lot line. Rear yards are defined as an open space extending the full width of the lot between a building and the rear lot line.

Side yards mean an open space extending from the rear boundary of the front boundary of the rear yard. Exterior side yards are side yards that abut a street (corner lots). Interior side yards are side yards that abut an adjoining lot. The yard requirements, as established in Table C-5, are not considered a constraint to development of housing and are similar regionally.

Site Coverage and FAR
Site coverage means the percentage of site area covered by impervious surfaces, including all structures, open or enclosed or projections of structures. Floor area is defined as the total horizontal area within the exterior walls of a structure. The floor area includes not only the ground floor area but also any additional stories or basement of the building. All horizontal dimensions should be taken from the exterior faces of the walls, including enclosed porches.

Floor area does not include the area of inner courts, shaft enclosures, or exterior walls.

Maximum Building Heights
The building height refers to the vertical distance above the finish grade and is measured to the highest point of roof. Setting limits to the height of buildings avoids bulking and potential nuisances on neighboring properties – relating to privacy and/or sunlight and shade. This requirement also ensures a compatibility and similar aesthetic amongst uses.

Parking Standards
Sufficient off-street parking must be provided to avoid street overcrowding. This is maintained through the establishment on parking requirements, which fluctuate depending on the land use/housing type and the number of bedrooms. However, high parking requirements may constrain development and result in higher development costs. Table C-6 provides the City’s parking requirements.

Construction costs can be higher for covered parking, parking structures, and/or below ground parking. Developers may receive concessions or incentives in the form of parking reduction for the development of housing affordable to low- and very low-income households as provided in the State Density Bonus Law section. Under Chapter 17.62 – Density Bonus, the City offers parking incentives for housing developments to meet the criteria for a density bonus listed under Section 17.62.030.

The multi-family parking requirements of 2.2 spaces per unit are considered high and a potential constraint. A program is included in the Housing Plan for this requirement to be decreased.

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Table C-6: Required Parking Spaces for Residential Uses Residential Uses Minimum Number of Spaces Required per Unit Single-family Dwelling 3 spaces (two-car garage + one additional covered or uncovered space)
Multi-family Dwelling  2 spaces for each dwelling unit plus one additional space for every five units, or fraction thereof
 All multifamily dwellings containing fifty or more rental units shall provide one off-street loading space
Motels, hotels, lodging houses, bed and
breakfast establishments, and private clubs
providing sleeping accommodations
One space for each living unit or bedroom, whichever is greater, plus one space for each six hundred square feet of office and storage
Hospitals, sanitariums, nursing homes and
charitable and religious institutions providing
sleeping accommodations
One space for each three beds.

Source: Scotts Valley Municipal Code Chapter 17.44.030 – Off Street Parking and Loading Requirements.

Development Example
A theoretical parcel zoned R-VH measuring 6,000 square feet (60 feet wide and 100 feet deep) has a maximum density of one unit per 2,100 square feet – three total units. With yard setbacks, the site parcel is left with a possible 2,800 square foot building footprint. The maximum site coverage is 55 percent (3,300 square feet), which leaves ample room. Assuming the maximum height of 35 feet creates a three-story structure measuring a total of 8,400 square feet.

Parking standards for three permitted units would total 7 spaces and require about 1,197 square feet (assuming each space measures 8.5 feet by 18 feet). This would leave a total of 7,203 square feet for possible units and result in seven possible 1,000 square-foot units, which is more than that permitted in the zoning district. As such, the City’s standards for lot size, setbacks, height, and site coverage are not considered a constraint to reaching the maximum units permitted through the zoning district.

5. Housing for Persons with Disabilities
Both the Federal Fair Housing Amendment Act (FHAA) and the California Fair Employment and Housing Act direct require governments to make reasonable accommodations (that is, modifications or exceptions) in their zoning laws and other land use regulations to afford disabled persons an equal opportunity to housing. State law also requires cities to analyze potential and actual constraints to the development, maintenance, and improvement of housing for persons with disabilities.

The Housing Element Update must also include programs that remove constraints or provide reasonable accommodations for housing designed for persons with disabilities. The analysis of constraints must touch upon each of three general categories: 1) zoning/land use; 2) permit and processing procedures; and 3) building codes and other factors, including design, location, and discrimination, which could limit the availability of housing for disabled persons.

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Reasonable Accommodations
Reasonable accommodation in the land use and zoning context means providing individuals with disabilities or developers of housing for people with disabilities, flexibility in the application of land use and zoning and building regulations, policies, practices, and procedures, or even waiving certain requirements, when it is necessary to eliminate barriers to housing opportunities. For example, it may be reasonable to accommodate requests from persons with disabilities to waive a setback requirement or other standard of the Zoning Code to ensure that homes are accessible for the mobility impaired. Whether a particular modification is reasonable depends on the circumstances.

The Scotts Valley Zoning Code allows requests for reasonable accommodation to be made by any person with a disability, their representative or any entity, when the application of a zoning law, building regulation, or other land use regulation, policy, or practice acts as a barrier to fair housing opportunities. Reasonable accommodation does not include an accommodation which would (1) impose an undue financial or administrative burden on the city or (2) require a fundamental alteration in the nature of the city's land use and zoning program.

No reasonable accommodations requests were submitted during the 5th cycle. A program is included in the Housing Plan to ensure that residents have access to information and application processes.

Application Requirements
Requests for reasonable accommodation shall be submitted on an application form provided by the City of Scotts Valley Planning Department and shall contain the following:
 The applicant’s name, address, and telephone number;
 Address of the property for which the request is being made;  The name and address of the property owner, and the owner's written consent to the application;
 The current use and/or activity of the property;
 A description of the basis that the individual is considered disabled under the fair housing laws: identification and description of the disability which is the basis for the request for accommodation, including current, written medical certification and description of disability and any effects on the person's medical, physical or mental limitations;
 The policy, program, regulation or standard adopted by the City of Scotts Valley applicable to the request for accommodation, including the development standard or regulation from which reasonable accommodation is being requested;  DRAFTA description of the specific accommodation request;