Scotts Valley City Council
December 20, 2023

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2010 and 2020. From 2010 to 2015, the percentage dropped 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

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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 $119,300, 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

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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 thus, without a sufficient supply of larger units, may experience 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

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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. This section provides a data-related assessment of special needs group, and Appendix D provides more information on resources available to each.

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 highest percentage of senior householders, compared to nearby jurisdictions. In Scotts Valley, senior homeowners represent 40 percent of all City homeowners and 30 percent of renter households.

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Table B-18: Persons Aged 65 and Over
Jurisdiction Total Household
Count
Percent Senior
Households
Senior
Homeowners
Percent of
Homeowner
Households
Senior
Renters
Percent of
Renter
Households
Santa Cruz County 96,275 29.4% 22,378 38.5% 5,888 15.4% Capitola 4,658 31.1% 1,096 49.3% 352 14.4%
Santa Cruz 22,644 24.6% 4,089 39% 1,474 12.1%
Scotts Valley 4,779 37.5% 1,400 40.1% 391 30.3%
Watsonville 14,317 23.5% 2,019 31.4% 1,348 17.1%
Source: American Community Survey, Tables B25007, 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.

The 5th Cycle Housing Element included specific policies and programs to address the unique challenges of the senior housing population. Housing Program 14 (Fair Housing) referenced fair housing services to the California Department of Fair Employment and Housing (DEFH). From 2018 to 2022, the senior population was able to receive information regarding fair housing on the City’s website and at City Hall as well as through the Housing Authority of the County of Santa Cruz. Program 16 (Reasonable Accommodation) committed the City to remove governmental constraints upon the maintenance, improvement, or development of housing for all income levels. Scotts Valley has established the ADA Committee, amended its Zoning Code to include formal reasonable accommodation procedures, and continues to evaluate the Zoning Code in an effort to address the housing needs of the seniors.

The City has a number of new policies and programs in place to address the housing needs of seniors throughout the 6th Cycle. Policy H-3.1 (Housing for Special Needs Groups) encourages the provision of support and housing services for special for special needs groups, including seniors. Program Action H-3.2 (Affirmatively Furthering Fair Housing) creates and promotes informational material on housing accessibility, rehabilitation, and maintenance resources. The

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program aims to provide home repair and rehabilitation assistance for at least 20 households annually.

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: Is this person deaf or do they have serious difficulty hearing?  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.

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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.

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.

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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.

The 5th Cycle Housing Element had two specific programs to address the gaps in the housing needs of people with disabilities. Through Program 16 (Reasonable Accommodation), the ADA Committee continued as a City Commission that identified opportunities to increase ADA accessibility throughout the City. The program’s effort also amended the City’s Municipal Code to provide Reasonable Accommodation standards and procedures. As a result of Program 17 (Housing for Persons with Disabilities), the city continued seeking funding and provide regulatory incentives to assist projects for persons with developmental disabilities.

The 6th Cycle Housing Plan includes the following policies and programs to assist with the housing needs for people with disabilities. Policy H-3.1 (Housing for Special Needs Groups) encourages the provision of support and housing services for special needs groups, including people with disabilities. Program Action H-3.2 (Affirmatively Furthering Fair Housing) commits the City to continue participating in the Housing Authority of Santa Cruz County Voucher Rental Assistance Program. Program Action H-3.2 (Affirmatively Furthering Fair Housing) works to extend housing choice voucher search times for people with disabilities. Furthermore, this program action affirmatively furthers fair housing for people with disabilities by facilitating the development of extremely low-income units. Program Action H-3.4 (Reasonable Accommodation) also provides for the removal of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels and for persons with disabilities. Program Action H-3.5 (Housing for Persons with Developmental Disabilities) provides for the review and identification of regulatory incentives that will encourage the construction or rehabilitation of housing for persons with developmental disabilities with necessary supportive services. These programs will help to ensure that people with disabilities have access to affordable and accessible housing in Scott Valley.

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

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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 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-23 below provides a breakdown of units with 4 or more bedrooms in Scotts Valley. Currently, there are 48 households of 5-persons or larger that occupy rental units and only 34 existing rental units are 4 or more bedrooms. However, there are 1,245 owner-occupied units of 4 or more bedrooms where 288 households of 5-persons or larger currently occupy. Tables B-22 and B-23 highlight a shortage in renter-occupied units of 4 or more bedrooms for households of 5- persons or larger.

Table B-22: Large Households by Tenure
Source: American Community Survey, Table B25009, 5-Year Estimates, 2020 Table B-23: Renter- and Owner-Occupied Units with 4 or more Bedrooms Jurisdictions Owner-Occupied
Units
Percent of
Owner-Occupied
Units
Renter-Occupied
Units
Percent of
Renter-Occupied
Units
4 or more Bedrooms 1,245 26.1% 34 2.6%
Source: American Community Survey, Table S2504, 5-Year Estimates, 2020 As stated above, 7 percent of all households in Scotts Valley are large households. Program 15 (Child and Day Care Facilities) from the 5th Cycle Housing Element encouraged the new developments of childcare services and facilities. Female-headed households comprised largely of female, single-parents with children, may benefit from childcare services.

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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There is a lack of affordable housing options for large households, as well as a lack of available housing with sufficient bedroom counts. The City of Scotts Valley has a new housing Policy H3.1 (Housing for Special Needs Groups), which aims to address the housing needs of large households. This policy includes the continuation to refer residents to the County Housing Voucher program and provide information at City Hall and the City’s website. The policy will also commit the City to participate in the Housing Authority of Santa Cruz County Voucher Rental Assistance Program. Program Action H-3.2 (Affirmatively Furthering Fair Housing) is to extend the housing choice voucher search times for groups, such as larger families with children or persons with disabilities. These programs aim to help make housing more affordable and accessible for large households in Scotts Valley.

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-24. 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-24: 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-25 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 those households, 0.8 percent are single parent households living in poverty. These percentages are much lower compared to the County. In the 5th Cycle, there was an estimated 11 percent of households in Scotts Valley that were female-headed households, with children under 18 years of age. Of Scotts Valley households in 2020, 8.1 percent of households were female-headed showing a 3 percent decline in female-headed households from the 5th to the 6 th Cycle.

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Table B-25: Female Headed Households
Jurisdiction
Single Female HH, No
Spouse Present
Single Female HH Living in
Poverty
Single Parent Female, No
Spouse Present
Count Percent1 Count Percent1 Count Percent1
Scotts Valley 263 8.1% 25 0.8% 238 7.3%
Santa Cruz County 9,718 16.0% 1,676 2.8% 8,042 13.2%
Note: HH = Households

1. Percent of total Households
Source: American Community Survey, Table B17012, 5-Year Estimates, 2020 Ten percent of Scotts Valley’s total households are comprised of single-parent households.

These households face a number of challenges. Program 15 (Child and Day Care Facilities) from the 5th Cycle Housing Element encouraged the development of childcare facilities.

The City of Scotts Valley has a number of policies and programs in the 6th Cycle Housing Element to address the needs of single-parent households. Policy H-3.1 (Housing for Special Needs Groups) encourages the provision of support and housing services for special needs groups, including single-parent households. Program Action H-3.1 (Promoting Housing Choice Voucher Program) continues the City’s participation in the Housing Authority of Santa Cruz County Voucher Rental Assistance Program, which provides rental assistance to low-income households. Program Action H-3.13 (Single-Room Occupancy Units) calls for the adoption of zoning and processing procedures for Single-Room Occupancy (SRO) Units, which can provide affordable housing to low-income individuals and families.

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

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occupations, with an estimated median income of $30,567. This is considered an extremely low-income for Scotts Valley.

The 5th Cycle Housing Element had a variety of past programs for farmworker housing. Through Program 14 (Fair Housing), the city continued to provide informational materials on fair housing services at the City Hall and on the City’s website. Furthermore, the city continued to refer tenants to the California Department of Fair Employment and Housing for proper intake, investigation, and resolution of fair housing complaints.

To address the needs of farmworkers, the City adopted the following policies and programs for the 6th Cycle Housing Element. Policy H-3.1 (Housing for Special Needs Groups) encourages the provision of support and housing services for special needs groups, including farmworkers.

Program Action H-3.8 (Agricultural and Employee Housing) adopts a zoning ordinance amendment to permit employee housing in single-family residential zones, consistent with the requirements of the Health and Safety Codes Section 17021.5 and 17021.6 as it relates to agricultural and employee housing.

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 substandard housing conditions.

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.

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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
Table B-26: 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%

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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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 The 5th Cycle Housing Element included a variety of programs to address the housing needs of extremely low-income households. Programs 4 (Emergency Shelters) and 5 (Transitional and Supportive Housing) amended the Zoning Code to allow emergency shelters, transitional and supportive housing to apply in different zoning districts throughout the city. Furthermore, the program’s eight-year action plan required the City to work with organizations to ensure needs of extremely low-income residents were met and to prioritize incentives for projects providing housing for extremely low-income residents whenever possible. Similarly, Program 9 (Monitor and Preserve Affordable Housing) worked to explore funding sources and programs in development and financing of housing for lower and moderate-income households.

The 6th Cycle Housing Plan includes a variety of programs to continue addressing these issues.

Program H-1.8 (Facilitation of Affordable Housing Development) commits the City to expand the existing Inclusionary Housing Ordinance city-wide which will require developers to restrict some units to moderate-, low-, very low-, and/or extremely low-income households. Program H-3.6 (Housing for Lower-Income Households) commits the City to investigate incentives and funding opportunities to encourage development of housing for extremely low-income households and support funding applications for affordable housing development.

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 across the state include increased unemployment and underemployment, a lack of housing affordable to lower- and moderateincome 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.  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

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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 2023 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-27. 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 mostly decreased across the County (-22 percent overall) with Scotts Valley seeing the greatest decrease of 50 percent from 48 to 24 in 2023. Across the two survey years listed above, Scotts Valley City had one of the lowest numbers of homelessness compared to nearby jurisdictions. There are no concentrated areas of homelessness in the city. Of the responses collected in 2023, the top two primary conditions that led to homelessness across the County were eviction and employment loss. Across the County, 68 percent of those experiencing homelessness identified as male, 31 percent identified as female, and one percent identified as neither.

Table B-27: Homelessness in Scotts Valley and Surrounding Cities (2022-2023) Jurisdictions
Unsheltered Sheltered Total
2022 2023 2022 2023 2022 2023 Change
2022-2023
Santa Cruz County
(Total) 1,774 1,426 525 378 2,299 1,804 -22%
Capitola 35 23 0 0 35 23 -34%
Santa Cruz 1,046 749 381 279 1,439 1,028 -29%
Scotts Valley 48 24 0 0 48 24 -50%
Watsonville 175 322 144 99 366 421 15%
Source: Santa Cruz County Homeless Census & Survey Comprehensive Report 2019 The 5th Cycle Housing Element included a variety of programs to address the needs of the people experiencing homelessness. Programs 4 (Emergency Shelters) and 5 (Transitional and Supportive Housing) amended the Zoning Code to allow emergency shelters, transitional and supportive housing to apply in different zoning districts throughout the city. The program action committed the city to monitor an inventory of sites appropriate to accommodate these shelters and housings. Furthermore, the program’s eight-year action required the city to work with

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organizations to ensure needs of extremely low-income residents and people experiencing homelessness were met and to prioritize incentives for projects providing housing for extremely low-income residents whenever possible.

The 6th Cycle Housing Plan includes a variety of new programs to continue addressing these issues. Program Action H-3.11 (Low Barrier Navigation Centers) commits the city to adopt a zoning ordinance amendment to approve low-barrier navigation centers that meet State requirements in mixed-use and non-residential zones permitting multifamily uses. These centers are focused on the transition of persons experiencing homelessness, or at-risk of becoming homeless, into permanent housing. The centers would connect individuals to income, public benefits, health services, and housing. Program H-3.13 (Single-Room Occupancy Units) commits the City to adopt zoning and processing procedures for future projects. These units may provide a valuable source of affordable housing and may serve as an entry point into the housing market for persons who previously experienced homelessness.

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.

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. There are not currently any student housing units or developments affiliated with a university or college within the City.

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-28 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

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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-28: 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-29 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.

Table B-29: 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-30 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.

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Table B-30: 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-31 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.

Table B-31: 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.

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Figure B-6: For-Sale and Rental Unit Vacancy Rates by Jurisdiction Source: American Community Survey Table CP04, 5-Year Estimates, 2020 Table B-32 below displays ACS data for types of vacancy rates in Scotts Valley. “Other” vacant housing units 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-32: 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 experienced 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

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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built over 30 years ago. The City estimates a total of five units are in need of rehabilitation based upon a windshield survey conducted throughout the city.

Figure B-7: Housing Stock Age
Source: American Community Survey, Table B25034, 5-Year Estimates, 2020 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

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%
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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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-33 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-34 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 than the ACS estimates, but the overall trend and increase in rental costs highlights the dramatic increase in less than a decade.

Table B-33: 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-34: 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 A September 2023 analysis of market value rental rates showed that true rental prices were significantly higher than ACS estimates. The City analyzed rentals found on common websites such as Zillow.com, Apartments.com, Trulia.com, and Hotpads.com.

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Table B-35: Median Gross Rent by Bedroom in Scotts Valley (2023) Unit Type Market Cost
Studio $1,200*
1 bedroom $2,100*
2 bedrooms $3,007
3 bedrooms $4,475
4 bedrooms $5,290
5 or more bedrooms n/a
*Only one listing available for the respective unit size. Total represents a single listing and may not accurately represent average rental costs.

Source: Zillow.com, Apartments.com, Trulia.com, and Hotpads.com (Accessed September 11, 2023).

As shown in Table B-35 above, true rental rates often differ from ACS estimates which may not always accurately reflect local market conditions. The City has seen significant increase in housing costs in the last decade and understands the complexity of addressing these issues. The City is dedicated to increasing housing opportunities through the numerous commitments made in the Housing Plan.

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-36 and Table B-37.

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-34) 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.

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

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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-36).

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-36: 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-37: 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.

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
households.

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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.

In an effort to address non-governmental constraints, the City offers expedited permit processing for projects that include affordable housing units.

1. Land and Construction Costs
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

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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.

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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.

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.

Financing for multifamily residential and mixed-used development is typically harder to obtain.

In particular, financing for subsidized housing is very difficult to obtain, as there is a great deal of competition for a limited amount of financing. Soft costs, such as permit fees, architectural

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and engineering services and environmental reviews make up a larger portion of the development budget for private development, and especially, affordable housing development.

Therefore, to develop housing that is affordable, especially to very low- and low-income households, both substantial public subsidies and multiple financing sources are required.

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 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 for 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

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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. Sensitive Species and Habitats
The City’s riparian woodland along rivers and Ponderosa Pines provides habitat for rare and endangered plant species. Scotts Valley is also home to a unique soil type called “Zayante Soil” and the Carbonera Creek, which is a habitat for steelhead trout. In Scotts Valley, 20 to 50 locally rare plant species exist and are concentrated in the Santa Margarita sand deposits, marshy habitats, grassland areas, and others. Five examples of rare and endangered species are present. The City is also a potential habitat for the Mt. Hermon June Beetle and the Ohlone Tiger Beetle, listed as Endangered Species by the Federal Government. The City requires development proposals in sensitive areas to provide biotic surveys and Habitat Conservation Plans to ensure compliance with the Endangered Species Acts. Two recent development projects include The Encore, a 16 unit condominium project and The Terrace, a 19 unit townhome project, provided Habitat Conservation Plans to ensure compliance with the Endangered Species Acts and the California Environmental Quality Act (CEQA). As such, sensitive habitat is not considered a constraint as development can occur in areas with sensitive species and habitats in Scotts Valley.

3. 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 pursuant to local, State and federal laws. Projects with potentially significant cultural resources require issuance of a Cultural Resources Alteration Permit from the City’s Cultural Resource Commission. Procedures and scope of authority of the City’s Cultural Resource Preservation and Cultural Resource Commission are set forth in Chapter 17.44 of the Scotts Valley Municipal Code. Projects with cultural resources require compliance with the City’s standard conditions of approval for historic/archaeological resource, for example:

1. Historic or Archaeological Discovery During Construction a. Additionally, if buried historic or archaeological resources are discovered during construction, operations shall stop within 50 feet of the find and a qualified archaeologist shall be consulted to evaluate the resource in accordance with CEQA Guidelines 15064.5(f), which requires the Lead Agency to make provisions for historical or unique archaeological resource accidently discovered during construction.

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b. The applicant shall include a standard inadvertent discovery clause in every construction contract to inform contractors of this requirement. If the resource does not qualify as a significant resource, then no further protection or study is necessary. If the resource does qualify as a significant resource then the impacts shall be avoided by construction activities. If the resource cannot be avoided, adverse impacts to the resource shall be addressed.
c. The archaeologist shall make recommendations concerning appropriate measures that shall be implemented to protect the resources, including but not limited to excavation and evaluation of the finds in accordance with Section 15064.5(f) of the CEQA Guidelines. Any previously undiscovered resources found during construction within the project site should be recorded on appropriate Department of Parks and Recreation (DPR) 523 forms and evaluated for significance in terms of CEQA criteria.

2. Paleontological Resource Monitoring
a. In the event a fossil(s) is discovered during construction for the project, excavations within 50 feet of the find shall be temporarily halted or delayed until the discovery is examined by a qualified paleontologist, in accordance with Society of Vertebrate Paleontology standards.
b. The applicant shall include a standard inadvertent discovery clause on construction plans to inform contractors of this requirement. If the paleontological resources are found to be significant, they shall be avoided by project construction activities and recovered by a qualified paleontologist. Upon completion of the recovery, a paleontological assessment shall be conducted by a qualified paleontologist to determine if further monitoring for paleontological resources is required. The project site assessment shall include; (1) the results of any geotechnical investigation, (2) specific details of the construction plans, (3) background research, and (4) limited subsurface investigation. c. If a high potential to encounter paleontological resources is confirmed, a monitoring plan of further project subsurface construction shall be prepared in conjunction with this assessment. After project subsurface construction has ended, a report documenting monitoring, methods, findings, and further recommendations regarding paleontological resources shall be prepared and submitted to the Director of Community Development.
a. 3. Inadvertently disturb human remains Pursuant to section 7050.5 of the Health and Safety Code, if human remains are discovered, there shall be no further excavation or disturbance of the discovery site or any nearby area reasonably suspected to overlie adjacent human remains until the project applicant has complied with the provisions of State CEQA Guidelines Section 15064.5(e).

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b. In general, these provisions require that the County Coroner be notified immediately. If the remains are found to be Native American, the County Coroner is required to notify the Native American Heritage Commission within 24 hours. The most likely descendant of the deceased Native American is notified by the Commission and given the chance to make recommendations for the remains. If the Commission is unable to identify the most likely descendent, or if no recommendations are made within 24 hours, remains may be reinterred with appropriate dignity elsewhere on the property in a location not subject to further subsurface disturbance. If recommendations are made and not accepted, the Native American Heritage Commission will mediate the problem.

With the adoption of standard conditions of approval and compliance with State CEQA Guidelines, development projects can successfully move forward and be built in Scotts Valley.

As such, Cultural Resources are not considered a development constraint. Program H-4.4 discusses continuing to review Cultural Resources for compliance with local, State, and federal laws.

4. 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

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5. 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

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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 of sites that have been analyzed to be most appropriate for development or redevelopment of 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 units
per acre)
Total Vacant Acres
Number of New
Dwelling Units at
Buildout
Very High Residential R-VH 15.1 – 20 11 168 – 220
High Residential RM-15 9.0 – 15.0 12.8 115 – 192
Medium High Residential RM 6 / RM 8 5.0 – 9.0 25 125 – 225 Medium Residential R-1-20 2.0 – 5.0 91 182 – 455
Low Residential R-1-10 2 71 142
Estate Residential R-1-40 1 46 46
Rural Residential RR 2.5 1 203 82
Mountain Residential RMT-5 1 25 5
Source: City of Scotts Valley General Plan, Land Use Element, Table LU – 2 Vacant Residential Land

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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.
 Shopping Center Commercial (C-SC) – Designed to accommodate retail and service establishments for the development of community shopping centers. 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 – The HR district is designed to provide for an orderly, harmonious development of the foothills and mountains, resulting in a minimum amount of disturbance of the natural slope and sensitivity to the steepness of the terrain in order to minimize grading, removal of vegetation, run-off erosion, geologic hazards and fire hazards, and to help ensure utilization of land in balance with its natural capabilities to support development. The HR district applies to single family residential zoned properties with a slopes of 10 percent or greater.

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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, emergency shelters, transitional and supportive housing, single-room occupancy units (SROs), and housing for persons with disabilities. Table C4 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 - - 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* CUP - - - - 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 - - - Small Unlicensed Group Homes (6 or fewer) P P P P P P P - - - P - - Large Unlicensed Group Homes (7 or more) CUP CUP CUP CUP CUP CUP - - - - - - - Small Licensed Group Homes (6 or fewer) P P P P P P P - - - P - - Large Licensed Group Homes (7 or more) CUP CUP CUP CUP 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

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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 TP 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. This includes duplexes, triplexes, etc. Multi-family dwellings are permitted as primary use in R-VH, R-H, R-M-6, and RM-8 districts.

A program is included in the Housing Plan to accommodate additional residential units for select sites in the Candidate Sites Inventory in Appendix F.

Multi-family dwellings are conditionally permitted use in the C-S and CS-C 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 5th Cycle Housing Element, then a mixed-use project is permitted as a primary use.

A program is included in the Housing Plan to allow for a reduction in required commercial component, an increase in allowed residential component, and upzoning to accommodate additional residential units for select sites in the Candidate Sites Inventory in Appendix F.

Additionally, a program to establish objective design standards for multi-unit residential development is included in the Housing Plan. This is to reflect changes in state law, ensure quality design of new residential development and project approval certainty.

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. The City has an adopted “Secondary Dwelling Unit Program” to guide ADU development; however, this Program does not meet recent updates to State law. Since 2020, The City of Scotts Valley has been reviewing and approving ADU and JADU application in

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accordance with the development standards and restrictions set out in State law. While the City’s Zoning Code currently allows for ADUs in the R-1, R-R-2.5, and R-M-T Zoning Districts, State law stipulates that ADUs are allowed in any zoning district that permits residential uses.

The City has been reviewing and approving applications in accordance with State law requirements.

A program is included in the Housing Plan to update the Program in compliance with State housing laws and to facilitates development throughout the planning period. This includes a number of actions the City will implement to further facilitate and promote ADU development.

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. Additionally, Code Section 65852.3 requires manufactured homes to be permitted on lots zones for conventional single-family residential dwellings; the City’s Municipal Code currently complies with this requirements as manufactured homes and mobile homes are permitted in the R-H, R-M-6, R-M-8, and R-1 districts where single-family dwellings are also permitted.

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.

The City does not currently distinguish group homes separately from community care residential facilities. Program H-3.16 is included in the Housing Plan to adopt a Zoning Ordinance definition for “group home” and to establish separate permitting and processing procedures.

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

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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. A program is included to allow for Support Housing by right in the C-S and C-SC Zoning Districts in compliance with State law (AB 2162).

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. Emergency shelter also includes other interim interventions, including, but not limited to, navigation centers, bridge housing and respite or recuperative care. 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 shelters must provide off-street parking at the ratio of one space per three beds, and/or 1 per bedroom designated as a family unit with children, plus one space per staff member. Program H-3.9 establishes an action to amend the Zoning Ordinance for parking requirements in compliance with AB 139.

AB 2339, enacted in 2022, added additional specificity to where emergency shelters must be zoned. AB 2339 provides that the sites identified for emergency shelters must be in residential areas or are otherwise suitable, thus prohibiting local governments from situating shelters in industrial zones or other areas disconnected from services. Program H-3.9 establishes an action to identify a zone which allows residentials uses and will also allow emergency shelters by-right (without discretion), in compliance with AB 2339.

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In the 2023 Point-In-Time Count, the City reported 24 persons experiencing homelessness in Scotts Valley. With a requirement of at least 200 square feet per person of land to accommodate the homeless, the City must be able to accommodate at least 4,800 square feet (0.11 acres). Scotts Valley has 12 sites totaling 12.13 acres with the potential to accommodate an emergency shelter; 11 sites are zoned C-S, 10 of which are vacant, and 1 site is zoned P and vacant. The 12 sites are located throughout the entire City and range from 0.2 acre to 2.6 acres – the average size is one acre. As such, the City has adequate capacity to accommodate a future emergency shelter to provide for its homeless population.

The law also seeks to ease constraints on the development of emergency shelters by requiring that any development standards applied to emergency shelters be "objective." Two programs are included in the Housing Plan to amend these requirements in compliance with Assembly Bills 139 and 2339.

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 waste 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.

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Figure C-8a: Regional Hazardous Waste Generators
Source: CalEnviroScreen 4.0
Figure C-8b: Scotts Valley Hazardous Waste Generators
Source: CalEnviroScreen 4.0

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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.

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

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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.

Single-Room Occupancy (SRO) Units
A single-room occupancy (SRO) unit usually is small, between 200 to 350 square feet. These units provide a valuable source of affordable housing for individuals and can serve as an entry point into the housing market for people who previously experienced homelessness.

The City does not currently have an adopted definition for SRO in the Municipal Code, nor does it have adopted zoning or processing procedures. Program H-3.13 is included in the Housing Plan to adopt a definition, zoning, and processing procedures.

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).

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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)
Site
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%
C-S 10,000 100 100 10 10 15 35 20 du/ac 45%
C-SC 10,000 100 100 20 0 0 35 20 du/ac 35%
P 10,000 60 100 20 10 10 35 30%
*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.” There is a Housing Program included to revise the City’s definition of “family” to ensure that it conforms with state constitutional requirements.

Maximum Density (square footage of lot area required per dwelling unit) For sites to be developed within the density ranges as outlined in the City’s General Plan, the City’s Zoning Ordinance utilizes a square footage of lot area to dwelling unit ratio to determine the maximum allowable density for the site. For example, a property with a High Residential Land Use Classification in the City’s General Plan allows for 9-15 dwelling units per acre. In the Zoning Ordinance, properties designated R-H require a minimum square footage of 6,000 square feet of lot area per allowed dwelling unit to confirm that the project density would be consistent with the General Plan.

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The City has approved a variety of projects in the R-H Zoning District within the density range allowed by the City’s General Plan. Projects recently approved in the R-H Zoning District include The Grove, The Cove, and Erba Lane. These developments include a range of housing types such as detached single-family homes, townhomes, and duplex style units. Each of these projects include deed restricted affordable housing units as required by the City’s Inclusionary Zoning Ordinance depending on the size and location of the project. As such, maximum density requirements are not considered a constraint to development as they allow for a range of housing types at varying levels of affordability.

The City’s Zoning Code does not have any minimum unit size requirements. The City relies on the requirements of the California Building Code as it pertains to regulating minimum unit sizes.

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.

Building Coverage
Building coverage means the horizontal area measured within the outside of the exterior walls of the ground floor of all main and accessory buildings on a lot. The coverage of a structure, or a portion thereof, not provided with surrounding exterior walls shall be the area under the horizontal projection of the roof or floor above. The City utilizes building coverage to determine the portion of the site that can be covered by buildings in the C-S and C-SC Zoning Districts.

Building coverage requirements are regionally similar and not considered a constraint to the development of housing in Scotts Valley.

Site Coverage
Site coverage means the percentage of site area covered by impervious surfaces, including all structures, open or enclosed or projections of structures. The City utilizes site coverage to determine the portion of the site that can be covered by structures/impervious area in the City’s residential zoning districts. As noted previously, site coverage requirements are regionally similar and therefore not considered a constraint to the development of housing in Scotts Valley.

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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.

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. In addition, Section 17.20.045 establishes shared and reduced parking for mixed-use projects where parking is viable and feasible.

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
Very High-Density Residential District
The average lot size of parcels zoned R-VH in the candidate sites inventory is 1.49 acres (approximately 64,904 square feet). A theoretical parcel zoned R-VH measuring 64,900 square

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feet (100 feet wide and 649 feet deep) has a maximum density of one unit per 2,100 square feet (approximately 20 units per acre) – 31 total units. With yard setbacks, the parcel is left with a possible 40,720 square-foot building footprint. The maximum site coverage is 55 percent which brings the buildable footprint down to 35,695 square feet. Assuming the maximum height of 35 feet creates a three-story structure measuring a potential total of 107,085 square feet and ample room to accommodate the maximum units permitted.

Parking standards for 31 permitted units would total 68 spaces and require about 11,736 square feet (54 standard spaces and 14 compact spaces). This space can be amply accommodated in the rear setback, or on the first floor of the structure below the 31 permitted units. As such, the City’s standards for maximum density, lot size, setbacks, height, and site coverage are not considered a constraint to reaching the maximum units permitted through the zoning district.

New Mixed-Use Residential District
As part of the City’s proposed rezonings, candidate sites would be rezoned to allow mixed-use residential with a commercial requirement of 30 percent, down from the current 50 percent requirement (analysis of the current mixed-use zone is included below). The following development example applies existing mixed-use residential development standards, but it should be noted that as part of the rezonings the City will adopt new development standards for these sites (see Program H-1.6 in the Housing Plan). The Program notes that new standards will not be more constrictive than existing standards.

The average parcel size for sites proposed for mixed-use rezoning is 1.26 acres (54,886 square feet). A theoretical 54,800 square-foot site (100 feet wide and 548 feet deep) will have a maximum density of 40 dwelling units per acre – 50 potential units. With yard setbacks, the parcel is left with a possible 41,840 square-foot building footprint. The maximum building coverage is currently 45 percent, which brings the building footprint down to 24,660 square feet. A maximum height to 3 stories creates a structure measuring a total potential of 73,980 square feet. With the 30 percent commercial requirement, a total of 51,786 square feet are left for residential units, or 52 potential units each measuring 1,000 square feet.

The parking requirement for the permitted 50 units and 22,194 square feet of commercial space is 144 total spaces. Considering 115 standard parking spaces and 29 compact parking spaces, as permitted, the parcel would need to allocate approximately 24,876 square feet of land for parking. These spaces are permitted in the setbacks, as long as landscaping requirements are met. In addition, the City allows for shared and reduced parking requirements for mixed-use projects where parking is viable and feasible (Section 17.20.045). With the land in the setbacks and the land leftover from the lot coverage maximum going towards parking, the theoretical parcel is able to accommodate the maximum density with all existing development standards and the 30 percent commercial requirement. As noted above, the development standards will be revised with the adoption of the rezones and may allow for greater flexibility.

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Thus, the 30 percent commercial requirement and current development standards are not considered a constraint.

Existing Mixed-Use Residential District
Using the same average parcel size as the analysis above, with the same, existing development standards, this analysis assesses current mixed-use requirements for the parcels currently zoned mixed-use with a commercial component requirement of 50 percent.

A theoretical 54,800 square-foot site (100 feet wide and 548 feet deep) has a maximum density of 20 dwelling units per acre – 25 potential units. With yard setbacks, the parcel is left with a possible 41,840 square-foot building footprint. The maximum building coverage is currently 45 percent, which brings the building footprint down to 24,660 square feet. A maximum height to 3 stories creates a structure measuring a total potential of 73,980 square feet. With the 50 percent commercial requirement, a total of 36,990 square feet are left for residential units, or 37 potential units each measuring 1,000 square feet.

The parking requirement for the permitted 25 units and 36,990 square feet of commercial space is 109 spaces (35 for residential and 74 for commercial). Considering 87 standard parking spaces and 22 compact parking spaces, as permitted, the parcel would need to allocate approximately 18,828 square feet of land for parking. These spaces are permitted in the setbacks, as long as landscaping requirements are met. In addition, the City allows for shared and reduced parking requirements for mixed-use projects where parking is viable and feasible (Section 17.20.045). With the land in the setbacks, as needed, and the land leftover from the lot coverage maximum going towards parking, the theoretical parcel is able to accommodate the maximum density with all existing development standards and the 50 percent commercial requirement. Thus, the 50 percent commercial requirement and current development standards are not considered a constraint.

5. Mixed-Use Residential
Mixed-use residential development is allowed in the C-S and C-SC zoning districts. Sites in the CS and C-SC Zoning Districts included in previous Housing Element cycles are only subject to issuance of a Design Review Permit. Mixed-use developments are currently required to include 50 percent commercial use. This requirement is implemented to facilitate economic growth and resources for residents within close proximity. Commercial uses are open to a variety of businesses and the Zoning Code does not make any specifications; commercial space may accommodate coffee shops, stores, offices, etc. Past mixed-use developments have met this requirement through lot splits separating uses with commercial located along the corridors and residential to the back. Recently approved projects with commercial and residential components include The Cove, The Grove, and Oak Creek Park (these are all the mixed use projects from the 5th cycle and were not cherry picked). All three projects were proposed on vacant sites and did not involve the reuse of existing structures. To support active retail frontage along Scotts Valley Drive and Mount Hermon Road, land divisions have been utilized to

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support economic development and further the jobs/housing balance policy in the City’s General Plan. As part of the strategies to meet the 6th Cycle RHNA, the City has identified sites to be rezoned for mixed-use with a decreased commercial requirement of 30 percent. This decreased requirement is in response to feedback asking for more residential capacity while continuing to provide commercial opportunities for residents and creating a more walkable and resourced community. Candidate sites identified for mixed-use rezoning will continue to be reviewed simply through a Design Review Permit. Program H-2.2 is included in the Housing Plan to establish objective design standards for all residential development. This is to reflect changes in state law, ensure quality design of new residential development and project approval certainty.

6. Housing for Persons with Disabilities
Both the Federal Fair Housing Amendment Act (FHAA) and the California Fair Employment and Housing Act 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 access 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.

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.

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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 may 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;  A description of the specific accommodation request;
 A description of the basis by which the accommodation is reasonable and necessary for the needs of the affected disabled person(s);
 Copies of plans, drawings, pictures, and/ other supporting data that provide sufficient information to render a decision (plans and drawings will be to standard scale);  Other reasonable requests for information requested by the city to facilitate the rendering of a decision, consistent with fair housing laws If the project for which the request for reasonable accommodation is being made also requires some other discretionary approval, then the applicant shall submit the reasonable accommodation application for determination at the same time with the other applications.

Any fee required for an application for reasonable accommodation shall be set by resolution of the City Council. Application fees for a Reasonable Accommodation request are deposit based, starting with a minimum fee of $355 (one hour of Planning Department staff time).

Review Procedure
The Community Development Director or Designee has the authority to review and decide upon requests for reasonable accommodation, including whether the applicant is a disabled

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person as defined by Scotts Valley Zoning Code. The Community Development Director or Designee may refer the matter to planning commission at his or her discretion when a reasonable accommodation request includes (but is not limited to) the following items: any encroachment into the setback areas, results in a building size increase above what is permitted in the applicable zoning district with respect to height, site coverage, or whenever a reduction in required parking is requested. The planning commission has the authority to review and decide upon requests for reasonable accommodation when referred by the Community Development Director.

A public hearing is not required for a reasonable accommodation request reviewed and decided upon by the Community Development Director. Upon deeming the application complete, the planning department shall send a notice to the applicant, property owner, the owners and tenants of property of the five parcels located closest to the subject property, and to all members of the planning commission. The notice shall indicate the date upon which the community development director will act on the permit and the intended action to be taken by the community development director. Such notices shall be mailed, via first class mail, a minimum of fifteen days prior to date that action is to be taken. Requests for reasonable accommodation subject to review and decision by the planning commission shall require a public hearing pursuant to the advance noticing requirements of Chapter 17.50 of the Scotts Valley Municipal Code.

Findings and Decision
The written decision to grant or deny a request for reasonable accommodation will be consist with the Acts and shall be based on consideration of the following factors:
 Whether the housing or housing related facilities will be used by an individual with a disability under the Federal Fair Housing Amendment Act (FHAA) and the California Fair Employment and Housing Acts;
 Whether the requested accommodation is necessary to make specific housing available to an individual with a disability under the Federal Fair Housing Amendment Act (FHAA) and the California Fair Employment and Housing Act;
 Whether the requested accommodation would impose an undue financial or administrative burden on the city; and
 Whether the requested accommodation does not negatively affect the character of the zoning district and intent of adopted city, policies, regulations, programs or laws.

If the decision for the request of reasonable accommodation is by the Community Development Director, then the Community Development Director shall render a decision within 30 days after the planning department determines the application is complete. The City shall notify the application of the decision and a written decision shall explain the basis of the decision.

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If the application for reasonable accommodation is referred to, or reviewed by, the Planning Commission, a decision to approve, approve with conditions, or deny the application shall be decided at the scheduled public hearing.

A program is included in the Housing Plan to amend the Reasonable Accommodations findings in accordance with applicable fair housing laws.

Appeal of Determination
An applicant or any party with interest may appeal any determination of the Community Development Director to the Planning Commission. The appeal shall be made by filing a notice of appeal clearly identifying the determination or decision and stating the grounds for the appeal. The notice of appeal shall be accompanied by the payment of a filing fee in such amount as established by resolution of the City Council. The notice of an appeal to the Planning Commission shall be filed with the Secretary of the Planning Commission. The appellant shall file the notice of appeal and pay the filing fee within fourteen calendar days after the date of the decision. Upon receipt of the notice of appeal and payment of the filing fee by the secretary of the planning commission, the Planning Commission may review by scheduling of hearing, a de novo review, or decision by Planning Commission.

An applicant or any party with interest may appeal any determination of the Planning Commission or other reviewer to the City Council. Upon receipt of the notice of appeal and payment of the filing fee, the City Clerk shall schedule the matter for hearing at the next available regular meeting of the City Council to be held within thirty calendar days after the date on which the notice of appeal is filed. The City Council may conduct a schedule of hearing, de novo review, or decision by City Council.

7. Planned Development Zones
Planned Development zoning provides the means to tailor zoning regulations and to apply specific standards for the development of a particular site. This process enables consideration of the unique characteristics of a site and its surroundings to better implement the citywide objectives, goals and policies of the General Plan and to provide site specific development standards. Planned Development zones are not required or pre-zoned, but they are rather intended as an additional option for more specialized developments. Anytime Planned Development zoning is utilized, the standards established for the zoning district which reflects the General Plan designation are tailored as part of a General Development Plan. Tailored zoning regulations include, but are not limited to, site intensities, location, height, coverage and appearance of structures. During the fifth cycle, a total of 156 housing units were entitled on properties utilizing a PD Zoning District.

8. Local Ordinances
An ordinance is a law passed by a municipal government. Local ordinances are enacted to maintain or improve public safety, health, and general welfare. Locally adopted ordinances such

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as inclusionary ordinances or short-term rental ordinances may directly impact the cost and supply of residential development. Impacts may create governmental constraints to the development of housing and may hinder the City from meeting its share of the RHNA and the need for housing for persons with disabilities, supportive housing, transitional housing, and emergency shelters.

Density Bonus Ordinance
In accordance with California State Government Code Section 65915, a housing development may increase the number of units above the maximum permitted and/or receive reductions in development standards in exchange for reserving units for very low-, low-income, and/or moderate-income households or for seniors. For rental projects, the units must be subject to a recorded covenant restricting affordability for a period of 55 years; for owner-occupied projects, the affordable housing covenant shall be for a term of 45 years. . All Density Bonus information is available to the public and can be found in the Zoning Code Chapter 17.62 Density Bonus. According to the City’s Zoning Code, qualifying housing developments which satisfy at least one of the following categories or land dedication provisions listed below will be granted a density bonus:
 At least 10 percent of the total units of a housing development for lower income households;
 At least 5 percent of the total units of a housing development for very low or extremely low-income households;
 At least 10 percent of the total dwelling units in a common interest development, as defined in Civil Code Section 1351, are for households of moderate income, provided that all units are offered to the public for purchase;
 A senior citizen project or a mobile home park that limits residency based on age requirements for housing older persons in compliance with Civil Code Section 51.2, 51.3, 798.76, or 799.5. (Senior citizen projects shall be restricted to occupancy by senior citizens in perpetuity.);
 When an applicant for a residential development agrees to donate land to the city for very low-income households;
 When a development is the conversion of an existing rental apartments to condominiums, at least 33 percent of the total units of the proposed condominium are for families of low- or moderate-income income as defined in Section 50093 of the Health and Safety Code, or at least 15 percent of the total units of the proposed condominium project to low-income households as defined in Section 50079.5 of the Health and Safety Code, and if the applicant agrees to pay for the administrative costs.

Tables C-7 through C-10 provide the breakdown of density bonuses that may be granted to eligible projects. Until 2021, under Government Code Section 65915, known as the Density Bonus Law, the maximum bonus was 35 percent. California State Law AB 2345 states that all

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jurisdictions in California are required to process projects proposing up to 50 percent additional density as long as those projects provide the additional Below Market Rate units (BMR) in the “base” portion of the project, unless the locality already allows a bonus above 35 percent. The bill also lowered the BMR thresholds for concessions and incentives for projects with lowincome BMRs. As of 2021, Government Code Section 65915 authorizes an applicant to receive two incentives or concessions for projects that include at least 17 percent of the total units for lower income households, at least 10 percent of the total units for very low-income households, or at least 20 percent for persons or families of moderate income in a common interest development. It also allows an applicant to receive three incentives or concessions for projects that include at least 24 percent of the total units for lower income households, at least 15 percent of the total units for very low-income households, or at least 30 percent for persons or families of moderate income in a common interest development.

The City’s density bonus ordinance currently allows a maximum of 35 percent density increase; however, AB 2345 requires an allowance of up to 50 percent density bonus when the base BMR is proposed. A program is included in Chapter 2: Housing Plan to update the City’s Zoning Code in compliance with state legislation.

Table C-7: Very Low-Income Density Bonus Calculations
Percentage Low-Income Units Percentage Density Bonus
5 20
6 22.5
7 25
8 27.5
9 30
10 32.5
11 35
Source: City of Scotts Valley Municipal Code, Chapter 17.62 Density Bonus, Table 17.62.030.C.1

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Table C-8: Low-Income Density Bonus Calculations
Percentage Very Low-Income Units Percentage Density Bonus 10 20
11 21.5
12 23
13 24.5
14 26
15 27.5
17 30.5
18 32
19 33.5
20 35
Source: City of Scotts Valley Municipal Code, Chapter 17.62 Density Bonus, Table 17.62.030.C.2 Table C-9: Moderate-Income Density Bonus Calculations
Percentage Moderate-Income Units Percentage Density Bonus 10 5
11 6
12 7
13 8
14 9
15 10
16 11
17 12
18 13
19 14
20 15
21 16
22 17
23 18
24 19
25 20
26 21
27 22
28 23
29 24
30 25
31 26
32 27
33 28
34 29
35 30
36 31
37 32
38 33
39 34
40 35
Source: City of Scotts Valley Municipal Code, Chapter 17.62 Density Bonus, Table 17.62.030.C.3

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Table C-10: Additional Very Low-Income Density Bonus Calculations on Donated Land Percentage of
Very Low-Income Units that can be
Accommodated on Donated Land
Percentage Density Bonus
10 15
11 16
12 17
13 18
14 19
15 20
16 21
17 22
18 23
19 24
20 25
21 26
22 27
23 28
24 29
25 30
26 31
27 32
28 33
29 34
30 35
Source: City of Scotts Valley Municipal Code, Chapter 17.62 Density Bonus, Table 17.62.040.C In addition to density bonuses, the Zoning Code Chapter 17.62.080 allows for the incentives and concessions listed below:
 One incentive or concession for a project that includes 5 percent of the total units are for very low-income households, ten percent of the total units are for low-income households, or ten-percent of the total units in a common interest development are sold to moderate-income households; or,
 Two incentives or concessions for a project that includes: at least twenty percent of the total units affordable to low-income households, at least ten percent of the total units affordable to very low-income households, at least five percent of the total units affordable to extremely low-income households, or at least twenty percent of the total units affordable to households of moderate income in a common interest development; or,
 One additional incentive for a project that is affordable to low-income households and provides any of the following: at least twenty-five percent of the units as three- or fourbedroom units, at least twenty-five percent of the units accommodate disabled persons and are set-aside for occupancy by disabled persons, or at least ten percent of the units are affordable to extremely low-income households.

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A qualifying project shall be entitled to at least one but no more than three of the following incentives:
 A reduction in the site development standards that results in identifiable, financially sufficient, and actual cost reductions. The reduction may include, but is not limited to:
 Reduced minimum lot size;
 Reduced minimum lot width;
 Reduced minimum setback;
 Increased maximum building height;
 Reduced onsite open-space requirement;
 Increased maximum site coverage;
 Increased floor area ratio; or
 Reduced parking requirement.
 Approval of mixed-use zoning in conjunction with the housing project if nonresidential land uses will reduce the cost of the housing project, and the nonresidential land uses are compatible with the housing project;
 Other regulatory incentives or concessions proposed by the applicant or the city that will result in identifiable, financially sufficient and actual cost reductions.

In accordance with Zoning Code Chapter 17.62 Density Bonus, the following density bonus calculations in Table C-11 will be applied to housing developments that meet the above criteria:

Table C-11: Density Bonus Incentives and Concessions Summary Affordable Housing Types Percent of Affordable Units
Very Low-Income 5% 10% 15%
Low-Income 10% 20% 30%
Moderate-Income 10% 20% 30%
Maximum incentive(s)/
concessions 1, 2, 3
1 2 3
1 An incentive or concession may be requested only if an application is also made for a density bonus. 2 Incentives or concessions may be selected from only one category (very low-, low-, or moderate). 3 No incentives or concessions are available for land donation.

Source: City of Scotts Valley Municipal Code Section 17-62.080 Inclusionary Housing Ordinance
The City of Scotts Valley requires all residential developments in the redevelopment project area (RDA boundary) consisting of one or more units to contribute to the provision of housing units for very-low-, low-, and moderate-income households in the City. All new residential developments with six or fewer units are required to pay an in lieu fee. All new residential developments with seven or more units can meet the affordable housing requirement by setting aside 15% of the total housing unit approved for very low-, low-, and moderate-income

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households on site or off-site in very limited circumstances. Projects of seven or more units containing lots in which the average lot size is larger than one acre may opt to pay an in lieu fee subject to approval by the City Council. The in-lieu fee is based subtracting the price of an affordable housing unit, as determined by the city, from the median sales price of a home in the project. The City’s Affordable Housing Subcommittee (comprised of two City Council members) makes recommendations on the number of units, size of units, and rate of affordability for projects that are required to provide housing for moderate-, low-, and very-low-income households.

The following projects are not required to contribute to affordable housing needs of the City:
 The construction of for sale or rental units on lots which are part of a parcel or subdivision that has already made its required contribution;  Development in which an adequate showing of extreme economic hardship or detriment upon compliance with this chapter is demonstrated to the satisfaction of the city council and the agency by the project applicant;
 The construction of an addition to a single-family home or the remodeling of other existing structures or facilities;
 The construction of one single-family home on an existing lot of record;  Construction of non-residential projects;
 Residential projects which, through state or federal government programs, will be deed restricted to be affordable to very-low-, low- or moderate-income households; and · Construction of a secondary dwelling unit on a residential lot in accordance with Chapter 17.41 of this Code.

A program is included to amend the Inclusionary Housing boundary citywide and consider additional requirements that allow for the developer to have a variety of ways to meet the City’s inclusionary requirements so that it does not unduly constrain development of housing.

Growth Management
Growth management measures use a variety of techniques to determine the amount, type, and rate of development desired by the community and to channel that growth into designated areas. Growth management measures are typically adopted to promote a variety of environment, social, and economic goals; however, they can create a constraint to the development of housing, and particularly multi-family and affordable housing development projects, as they may require a ballot vote and create project approval uncertainty and additional costs. The City of Scotts Valley does not have an adopted growth management measure.

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Short-Term Rental Ordinance
Short-term rentals are commonly defined as an accessory use of a primary residence for the purpose of providing temporary lodging for compensation for up to 30 days. The purpose of a short-term rental ordinance is to establish regulations, standards, and a permitting process governing the renting or leasing of privately owned, visitor-serving dwelling units on a shortterm basis. This ordinance may be established to safeguard residents by ensuring that shortterm rental activities do not threaten the character of neighborhoods and that such short-term rental activities do not become a nuisance, or threaten the public health, safety, or welfare of neighboring properties. The City does not have a short-term rental ordinance and does not allow for short-term rentals within the City limits.

9. Specific Plans
The purpose of a Specific Plan is to implement the goals and objectives of a City’s General Plan in a more focused and detailed manner that is area and project specific. Specific Plans promote consistent and an enhanced aesthetic levels throughout the project community. They also contain their own development standards and requirements that may be more restrictive than those defined for the City as a whole.

Scotts Valley Town Center Specific Plan
The Scotts Valley Town Center Specific Plan (The Plan) is a document designed to guide the development of a mixed-use node that will become the heart of the city. The planning and design of the Town Center Plan Area has been through multiple iterations. The Plan is the culmination of an effort led by the City of Scotts Valley to develop and intensify the Plan Area by developing a unique balance of commercial, civic, and residential uses that will attract visitors both locally and regionally. The Plan area encompasses approximately 58 total acres which includes 15 acres of vacant land centrally located in the Plan area, surrounded by a mix of retail and civic uses. The Plan area is generally bounded by Mt. Hermon Road to the south, Skypark Drive to the west, Blue Bonnet Lane to the north, and a residential development just west of Scotts Valley Drive to the east.

Residential development is limited to higher densities, such as townhomes, apartments and condominiums. Although residential uses are an important component to the success of the Plan, it is considered a secondary use intended to support the predominantly retail and community serving focus of the area. Figure C-10 illustrates the preferred land uses.

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Figure C-10: Town Center Specific Plan – Preferred Land Use Plan Source: Scotts Valley Town Center Specific Plan
An important objective of this Specific Plan is to spell out the desired mix of land uses and location of these uses. The intent is to customize the land use requirements to encourage reinvestment and revitalization of the Town Center Plan Area consistent with The Plan vision.

The entire plan area is within the City of Scotts Valley’s Redevelopment Agency which requires a minimum of 15 percent of all residential units built be affordable. Allowable land uses detailed within the Plan include:
 Mixed-Use/Town Center Core (Commercial/Office/Residential) The core of the planning area will be mixed-use, with retail and commercial on the ground floor and residential or office above. Diversity and character can be achieved with a mix of uses both vertically (residential over commercial), horizontally (residential next to commercial), and unit types (affordable and market rate) within the Plan area.

The appropriate mix of land uses is critical to achieving a successful town center environment. A mixing of uses can add variety and vitality to commercial centers, neighborhoods, and streets. The addition of residential over commercial provides “eyes

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on the streets” and movement throughout the day and night creating safe and defensible spaces. A vertical and horizontal mix of uses in the Plan Area will help achieve the vision for a dynamic center. The Plan proposes new commercial development (retail and office), residential development, visitor services, and civic uses. With the intent of encouraging pedestrian activity within the mixed-use zone, residential and office will not be allowed on the ground floor at street frontage or along the paseo of any building except for the entry door for offices. Residential and office may be located at the back of a building on the first floor, or on the upper floors, but the street frontage is reserved for more pedestrian-oriented uses.
 Residential (Stand Alone)
Residential will be allowed both as a standalone product and as part of an integrated mixed-use project concept. Stand Alone residential is located on the periphery of the Plan Area adjacent to existing residential on Skypark Drive to Blue Bonnet Lane and adjacent to the park. There needs to be a balance of residential units that will support the retail development and will help create a lively daytime and evening environment.

Table C-12: Town Center Specific Plan Development Standards Category Development Standards
Mixed-Use, Office Commercial, and Civic
Max Mixed-Use Residential Density 15-20 DU/acre
Setbacks (minimum to maximum)
 Front
 Side
 Rear
15-20 feet from curb edge
0-15 feet
0 feet
Max Mixed-Use Height 55 feet
Max Building Coverage 100%
Parking Ratios
 Stand Alone Residential
 Mixed-Use Residential
2 enclosed spaces/unit, and 1 guest space/5 units
1 space/studio or 1-bed, 2 spaces/2- or 3-bed
Medium Density Residential
Max Stand Alone Residential Density 15-20 DU/acre
Setbacks (minimum to maximum)
 Front
 Side
 Rear
15-20 feet from curb edge to building face, 15 feet minimum from curb edge to front porch
0-26 feet
10 feet
Max Height 35 feet (greater heights may be granted through a PD Permit) Max Building Coverage 55%
Parking Ratios
 Residential
 Senior Housing
1 enclosed space/studio or 1-bed, 2 spaces/2- or 3-bed (1 enclosed), plus 1 guest space/5 units

0.5 space/unit
Source: Scotts Valley Town Center Specific Plan (December 2008)

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Gateway South Specific Plan
The Gateway South Specific Plan is intended to address a need for commercial/office development to provide employment, housing opportunities for all income levels, and preserve the hillsides. The following lists the land use designations, number of parcels, and acreage found in the Plan and illustrated in Figure C-11:
 Very High Density – 4 parcels and 5.99 acres
 Medium High Density – 1 parcel and 0.58 acres
 High Density – 4 parcels and 8.31 acres
 PD/Service Commercial – 2 parcels and 9.59 acres
 Public/Quasi Public – 1 parcel and 1.49 acres
 Service Commercial/Open Space – 1 parcel and 17 acres Residential uses are predominantly located within Planning Area A, with only one parcel located in Planning Area B. The Specific Plan establishes access for these residences to nearby urban services and park facilities.

All proposed projects in the Specific Plan area must go through design review procedures and be reviewed by the Planning Commission to ensure the projects are consistent with the site and architectural design policies and standards set forth in the Plan.

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Figure C-11: Gateway South Specific Plan Land Use Plan
Source: Gateway South Specific Plan Amendment

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10.Local Processing and Permit Procedures
The development community commonly cites the permit processing time as a contributor to the high cost of housing. Depending on the magnitude and complexity of the development proposal, the time that elapses from application to project approval may vary considerably.

Factors that can affect the length of development review of a proposed project include the completeness of the development application and the responsiveness of developers to staff comments and requests for information.

Approval times are substantially lengthened for projects that are not exempt from the California Environmental Quality Act (CEQA), require rezoning or general plan amendments, or encounter community opposition. Applicants for all permits or reviews are recommended to request a preapplication meeting with the respective department to: 1) confirm City requirements as they apply to the proposed project; 2) review the City’s review process, possible project alternatives or revisions; and 3) identify information and materials the City will require with the application, and any necessary technical studies and information relating to the environmental review of the project.

All permit applications are reviewed by City staff for completeness. Various applications may also include public noticing and a public hearing. Single- and multi-family developments are subject to the following submittal requirements, depending on what type of development the project is:

1. Submittal of application including the following information:
a. A legal description of the property;
b. A location map showing the project site and the general vicinity of the site; c. A completed environmental information form as prescribed by the City; d. Site plans, elevation plans, floor plans and other maps and data as may be necessary to describe the existing conditions on and surrounding the property and the proposed plans for the future development of the property. The planning commission shall by resolution, maintain a listing of the minimum documentation necessary for submittal in support of each type of application; and
e. Such other information specified in this title for the particular entitlement requested.

2. Payment of fees for permit plan check.

3. Plan check completed by all applicable departments and agencies. Timeline and number of reviews can vary.

4. Permit issued once all comments are satisfied.

Table C-13a provides a list of planning applications and the reviewing body for each. Typically, projects that just require a tentative map and/or a design review receive building permits

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within 6 to 12 months of submitting an application. If project requires a rezone and/or a General Plan amendment receive building permits within 12 to 18 months.

Table C-13a: Decision-Making Body with Final Approval Authority Type of Project Public Hearing -
Action
Approving
Authority
Time Frame
for Review
Annexation Planning
Commission City Council 1 year
Appeal Planning
Commission City Council 3 months
Cultural Resource
Alteration
Planning
Commission 3 months
Design Review Planning
Commission 3 to 6 months
General Plan
Amendment
Planning
Commission City Council 6 to 12 months
New Condominium/
Townhomes
Planning
Commission City Council 6 to 9 months
New Apartments Planning
Commission
6 months
Planned Development Planning
Commission City Council 6 to 9 months
Tentative Parcel Tract
Map
Planning
Commission City Council 6 to 9 months
Use Permit Planning
Commission 3 to 6 months
Variance Planning
Commission 3 to 6 months
Zone Change Planning
Commission City Council 6 to12 months
Source: City of Scotts Valley – Planning Department
Table C-13b provides a detailed list of recent development examples with timeframes, density yields, and entitlements received. As shown, these projects with multiple entitlements each, have taken an average of just under two years. The average time between these projects receiving entitlement approval and submitting for building permits was just over two years at 25 months.

Typical approval findings
Single Family Residential
Construction of a Single Family Dwelling Unit in the City’s Single Family Residential Zoning Districts (R-1-10, R-1-20, R-1-40, R-R-2.5, R-MT-5) are typically exempt from entitlement requirements as long as the project complies with the requisite development standards as outlined in the City’s Zoning Ordinance. Sites with slopes greater than 10 percent are subject to a Hillside Residential Combining District Overlay, requiring compliance with specific setback requirements and criteria as outlined in SVMC Chapter 17.40. Sites that exceed 30 percent

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slopes require a Hillside Design Review Permit from the Planning Commission. In order to grant the Design Review Permit, the Planning Commission shall make the following findings:
 Avoid Unreasonable Interference With Views and Privacy. The height, elevations and placement on the site of the proposed main or accessory structure, when considered with reference to the nature and location of residential structures on adjacent lots, will avoid unreasonable interference with views and privacy;  Preserve Natural Landscape. The natural landscape will be preserved insofar as practicable by designing structures to follow the natural contours of the site and minimizing tree and soil removal; grade changes will be minimized and will be in keeping with the general appearance of neighboring developed areas;  Minimize Perception of Excessive Bulk. The proposed main or accessory structure in relation to the immediate neighborhood will minimize the perception of excessive bulk;  Compatible Bulk and Height. The proposed main or accessory structure will be compatible in terms of bulk and height with existing residential structures within the immediate neighborhood and within the same zoning district, and shall not unreasonably impair the light and air of adjacent properties nor unreasonably impair the ability of adjacent properties to utilize solar energy;  Current Grading and Erosion Control Standards. The proposed site development or grading plan incorporates current grading and erosion control standards used by the city;
Multi-Family Residential (Townhomes, Condominiums, Apartments) Construction of multi-family residential projects in the City’s Multi-Family Zoning Districts (RVH, R-H, R-M-8, and R-M-6) require issuance of a Design Review Permit from the Planning Commission as required by SVMC Title 17. In order to grant a Design Review Permit, the Planning Commission shall make the following findings:
 The siting of any structure on the property as compared to the siting of other structures in the immediate neighborhood;
 Materials, colors, proportion, mass and detail. All structures shall be in good proportion, have simplicity of mass and detail and be compatible in appearance with surrounding structures. There shall be an appropriate use of materials; colors shall be appropriate within the context of use and should blend with surrounding structures;  The size, location, design, color, number, lighting and materials of all signs and outdoor advertising structures. No sign shall be approved in excess of the maximum limits set by this title, but the size or number of signs in any area subject to design control may be reduced below this maximum number or limit;

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 Landscaping and Irrigation. Landscaping and irrigation plans shall be required on the site. Landscaping shall be in keeping with the character or design of the building.

Existing trees shall be preserved wherever possible;
 The size, location and arrangement of on-site parking and paved areas;  Ingress, Egress and Internal Traffic Circulation. All the above factors shall be related to the setting or established character of the neighborhood or surrounding area.  Height and access to sunlight, setbacks, landscaping and use of materials for articulation and visual relief for fences and walls over eight feet tall or fences over three feet tall in front yards when across from Hwy. 17.
 Arbors in front yards, over twenty square feet in roof area or between eight and ten feet in height: the design compatibility with the main structure and structures in the neighborhood, the mass and scale of the arbor, line of sight visibility for pedestrians and motorists in addition to other applicable standards of this section.

If the project involves a subdivision, the project is forwarded on to the City Council for approval as required by SVMC Section 16.16.040. In order to approve the subdivision, the City Council shall make the following findings:
 That the location of the uses is in accordance with the objectives of the zoning ordinance and the purposes of the district in which the site is located.  That the proposed tentative map/land division, together with the provisions for its design and improvement, is consistent with the General Plan.  That the project is physically suitable for the density of the land division.  That the design of the land division or the proposed improvements are not likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat.
 That the design of the land division or the type of improvements is not likely to cause serious public health problems.
 That the design of the land division will not conflict with easements acquired by the public at large (for access through or use of the property within the land division).

Mixed-Use Residential
Construction of mixed-use residential projects are allowed with issuance of a Use Permit and a Design Review Permit in the City’s C-S and C-SC Zoning Districts. Sites in the C-S and C-SC Zoning Districts included in previous Housing Element cycles are subject to issuance of a Design Review Permit only. The City of Scotts Valley’s General Plan requires residential components of mixeduse projects on land designated Service Commercial and Shopping Center Commercial to be secondary to commercial development. Sites that are designated in the Housing Element in the C-S Zoning District require issuance of a Design Review Permit from the Planning Commission.

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In order to grant a Design Review Permit, the Planning Commission shall make the following findings:
 The siting of any structure on the property as compared to the siting of other structures in the immediate neighborhood;
 Materials, colors, proportion, mass and detail. All structures shall be in good proportion, have simplicity of mass and detail and be compatible in appearance with surrounding structures. There shall be an appropriate use of materials; colors shall be appropriate within the context of use and should blend with surrounding structures;  The size, location, design, color, number, lighting and materials of all signs and outdoor advertising structures. No sign shall be approved in excess of the maximum limits set by this title, but the size or number of signs in any area subject to design control may be reduced below this maximum number or limit;
 Landscaping and Irrigation. Landscaping and irrigation plans shall be required on the site. Landscaping shall be in keeping with the character or design of the building.

Existing trees shall be preserved wherever possible;
 The size, location and arrangement of on-site parking and paved areas;  Ingress, Egress and Internal Traffic Circulation. All the above factors shall be related to the setting or established character of the neighborhood or surrounding area.  Height and access to sunlight, setbacks, landscaping and use of materials for articulation and visual relief for fences and walls over eight feet tall or fences over three feet tall in front yards when across from Hwy. 17.
 Arbors in front yards, over twenty square feet in roof area or between eight and ten feet in height: the design compatibility with the main structure and structures in the neighborhood, the mass and scale of the arbor, line of sight visibility for pedestrians and motorists in addition to other applicable standards of this section.

In order to grant a Use Permit, the Planning Commission shall make the following findings:
 The proposed location of the conditional use is in accordance with the objectives of the zoning ordinance and the purposes of the district in which the site is located.  The establishment, maintenance or operation of the use or building will not, under the circumstances of the particular case, be detrimental to the health, safety, peace, morals, comfort and general welfare of persons residing or working in the neighborhood of the proposed use or be detrimental or injurious to property and improvements in the neighborhood or to the general welfare of the city.

The Housing Element Update includes programs in Chapter 2 to develop objective design standards for multi-family and mixed-use residential projects in compliance with SB 330, and provide a by-right approval process for multi-family residential projects to comply with AB 1397

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and AB 1398. An additional program includes reducing the commercial square footage requirements for mixed use project sites listed in the Housing Element due to changing market conditions for commercial development and feedback from the development community.

Recent Development Examples
Table C-13b shows that past projects have successfully achieved generally high density yields in comparison to what the site could permit at the maximum; the table includes all projects from the 5th cycle. On average, the projects were able to achieve a density yield of 83 percent, with The Encore reaching the highest yield at 123 percent and The Cove and Erba Lane reaching the lowest at 67 percent each (both just one unit above the lowest of the density range permitted).

It should be noted that the City does not typically receive residential development applications below the allowable densities.

Table C-13b: Recent Development Examples
Project Entitlements Application
Received
Application
Approved
Building
Permits
Pulled
Density
Permitted
Final
Project
Density
Acreage
Use
Prior to
Project
The Encore
Tentative Map,
Use Permit,
Design Review,
MND
1/6/2021 9/1/2021 10/17/2022
13 DU/AC
(16 units)
16 DU/AC
(123%
yield)

1.49 acres Vacant
The Grove
GP
Amendment,
Zone Change,
Planned
Development,
Land Division,
Use Permit,
Design Review,
EIR
3/26/2015 3/16/2016 6/5/2018
9-15
DU/AC
(50 units)
11 DU/AC
(73%
yield)

4.31 acres Vacant
The Terrace
Planned
Development,
Land Division,
Design Review,
MND
10/27/2014 10/21/2015 10/14/2018
5-9
DU/AC
(19 units)

7.65 DU/AC
(85%
yield)

2.6 acres Vacant
The Cove
GP
Amendment,
Zone Change,
Planned
Development,
Design Review,
Land Division,
MND
7/22/2015 12/7/2016 10/18/2018
9-15
DU/AC
(10 units)
10 DU/AC
(67%
yield)

2.35 acres Vacant
Erba Lane
Planned
Development,
Design Review,
Land Division,
MND
3/15/2019 6/16/2021 TBD
9-15
DU/AC
(10 units)
10 DU/AC
(67%
yield)

1.04 acres Vacant

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Project Entitlements Application
Received
Application
Approved
Building
Permits
Pulled
Density
Permitted
Final
Project
Density
Acreage
Use
Prior to
Project
Oak Creek
Park
GP
Amendment,
Zone Change,
Planned
Development,
Minor Land
Division, Design
Review, EIR
4/12/2018 12/7/2022 TBD
6-9
DU/AC
(Lot 1: 8
units
Lot 2: 44
units)

7.7 DU/AC
(combined
86% yield)
Lot 1: 1.04
acres
Lot 2: 2.53
acres
Vacant
Average Entitlement Review Time 22 months
Average Time Between Receiving Entitlements
and Pulling Building Permits 25 months
Average Density Yield 83%
Senate Bill 330 (SB 330)
Effective January 1, 2020, and through January 1, 2030, SB 330 restricts jurisdictions in ordinances and policies that can be applied to residential development. To address the state’s housing crisis and help meet California’s housing needs, for a ten year time period SB 330 will facilitate housing construction and protect lower income residents from displacement by:
 Suspending enactment of local downzoning and housing construction moratoriums.  Requiring timely processing of housing permits following existing local zoning rules  Lifting required parking minimums
 Eliminating certain fees on low income units
 Postponing requirements for voter approval of zoning, general plan changes  Protecting rent controlled or Section 8 units from demolition, and  Requiring resettlement benefits and first right of refusal in new units or compensation for rehousing for renters who may be displaced.

Program H-1.9 is included in the Housing Plan stating the City will continue to comply with SB 330 restrictions through the end of the 10-year timeframe.

11.Development Fees
Residential developers are subject to a variety of permitting, development, and impact fees in order to access services and facilities as allowed by State law. The additional cost to develop, maintain, and improve housing due to development fees result in increased housing unit cost, and therefore may be considered a constraint to housing development. However, fees are necessary to provide planning and public services in Scotts Valley. All information regarding the

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City’s development fees is available on the City’s website as pursuant to Government Code §65940.1 (a)(1)(B).

The location of projects and housing type result in varying degrees of development fees. The presumed total cost of development is also contingent on the project meeting City policies and regulations and the circumstances involved in a particular development project application. The majority of the City planning fees operate on a deposit account basis where time and materials are charged against the established account as the project is processed. Table C-14 provides the planning fees and Table C-15 provides the development impact fees.

Table C-14: Planning Processing Fees
Application Type Fee
Permit Applications
Amendment $3,548
Design Review
 Residential with Hillside
 Residential
 Commercial/Industrial
 $7,096
 $3,548
 $3,548
Development Agreement $12,418
Environmental Assessment $355
Environmental Impact Report, Administration $26,255
General or Specific Plan Amendment $12,418
Land Divisions
 Subdivision (5 lots or more)
o Map Entitlement
o Map Recordation/Approval
 Minor (4 lots or less)
o Parcel Map – Tentative
o Parcel Map – Final
 $12,418
 $7,096
 $12,418
 $3,548
Lot Line Adjustment $707
Mitigated Negative Declaration $14,192
Negative Declaration $7,096
Planned Development $8,870
Preliminary Review $8,837
Public Hearing and Radius Noticing $531
Use Permit
 Major (excluding residential)
 Minor
 $7,077
 $3,538
Variance $7,096
Zoning Change/Ordinance Amendment $9,225
Plan Check $355
Source: City of Scotts Valley – Fee Schedule FY 2022-2023

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Table C-15: Development Impact Fees
Development Fees Cost per Unit by Residential Zoning District R-MT-5 R-R-2.5 R-1-40 R-1-20 R-1-10 R-M-6/8 R-H
General Facilities and
Equipment $529 $529 $529 $529 $529 $529 $529
Streets and Thoroughfares $6,961 $6,961 $6,961 $6,961 $6,961 $4,131 $4,131 Wastewater Treatment
Facilities $7,385 $7,385 $7,385 $7,385 $7,385 $5,343 $5,343 Storm Drainage Facilities:
 Carbonero Creek
 West Branch
 Camp Evers Tributary
 Bean Creek
$0.30/impervious square-foot
$0.27/impervious square-foot
$0.14/impervious square-foot
$0.19/impervious square-foot
Library Facilities $1,497 $1,405 $1,313 $1,174 $1,035 $1,035 $899 Law Enforcement Facilities $1,221 $1,221 $1,221 $1,221 $1,221 $1,221 $1,221 Parks and Recreation Facilities $12,363 $12,363 $12,363 $12,363 $9,566 $9,626 $6,426 Mount Hermon Road Fair
Share Trips:
 Mt. Hermon and SV Drive
 Mt. Hermon and La
Madrona
$535
$1,047
Scotts Valley Unified School
District $3.14/square-foot $3.48/square-foot
Source: City of Scotts Valley Schedule of Fees FY 2022-2023, Scotts Valley Unified School District The development fees associated with each project is dependent on the housing type, density, intensity of use, and location. In addition to these direct fees, the total cost of development is contingent on the project meeting the City’s policies and standards, as well as the project applicant submitting necessary documents and plans in a timely manner.

Estimated total development and impact fees for a typical single-unit residential project, assuming it is not part of a subdivision and is consistent with existing city policies and regulations can range from $68,837 to $78,576. Estimated total development and impact fees for a typical multi-unit residential project with 20 units, assuming it is consistent with existing City policies and regulations, range from $525,258 to $544,417.

Both estimates are illustrative in nature and actual costs are contingent upon unique circumstances of individual development project applications. Considering the cost of land in Scotts Valley, and the International Code Council (ICC) estimates for cost of labor and materials, the combined costs of permits and fees range from approximately 10.2 percent to 11.6 percent of the direct cost of development for a single-unit residential project and 8.8 percent to 9.1 percent for a multi-unit residential project. Direct costs do not include, landscaping, connection fees, on/off-site improvements, shell construction or amenities, therefore the percentage of development and impact fees charged by the City may be smaller if all direct and indirect costs are included.

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12.On-/Off-Site Improvements
Site improvements in the City consist of those typically associated with development for on-site improvements (street frontage improvements, curbs, gutters, sewer/water, and sidewalks), and off-site improvements caused by project impacts (drainage, parks, traffic, schools, and sewer/water). Because residential development cannot take place without the addition of adequate infrastructure, site improvement requirements are considered a regular component of development of housing within the City and may also influence the sale or rental price of housing. Majority of cost associated with on and off-site improvements is undertaken by the City and recovered in the City’s development and impact fees.

For single-family residential development on vacant land, examples of typical on-site improvements might include stormwater detention facilities (required by the Clean Water Act), roads, sidewalks, perimeter walls, fire hydrants, emergency access drives, and recreational trails. Multifamily developments may also include common open space and recreation areas, as well as lockable storage areas.

Typical off-site improvements for both single-family and multi-family developments might include: new curbs, gutters, and sidewalks, recreational trail facilities, road improvements and traffic control needed to serve the development, street trees, and landscaping. Utilities may need to be updated or installed to serve the development, including water mains, sewer mains, stormwater pollution prevention measures, and undergrounding of electric utilities.

Infill residential projects may be required to install any of the improvements listed above, depending on site-specific circumstances and neighborhood needs.

Scotts Valley has standard improvements required for subdivision that can be found in the City’s Municipal Code. General improvements include the following:
 Improvement requirements on subdivisions will generally be specified as conditions of approval of the tentative map. The criteria for the design of the improvements shall be those that are adopted from time to time by the City Council.  Streets and highways shall intersect one another at angles as near to a right angle as is practical in each specific case, and no intersections shall be at angles of less than thirty degrees.
 Streets intersecting at an angle other than ninety degrees may require the use of setback lines, special rounding of corners, traffic circle of other device to assure desirable results as to traffic movement, visibility, and safety.  If the centerlines of two streets, intercepting the same street from opposite directions are offset from each other, said offset shall be a minimum distance of two hundred feet measured along the centerline of the street intercepted.

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 If the improvements specified for a subdivision for which a final map is required have not been completed prior to filing the final map, the subdivider shall, concurrent with the acceptance of the final map, enter into an agreement with the council agreeing to have the work completed within a specified time. Standard agreement forms are available upon demand from the city engineer.

Specific design standards for streets can be found in Master Plans and Specific Plans on the City’s website.

On- and off-site improvements are consistent with requirements of other cities in the region.

While these improvements may influence the cost of development, they are not considered a constraint to the development of housing in Scotts Valley.

13.Building Codes
The City has adopted the 2022 California Building Code, including the ancillary information within the tables, attachments, addendums, and footnotes. This would include the California Administrative Code, Building Code, Residential Code, Electrical Code, Mechanical Code, Plumbing Code, Energy Code, Historical Building Code, Fire Code, Existing Building Code, Green Building Standards Code, and California Referenced Standards Code. The adoption California Building Code therefore ensures a consistent development standard that would be promoted throughout the State. The Code’s intent is to safeguard the public health, safety, and general welfare through structural strength, means of egress facilities, stability, sanitation, adequate light and ventilation, energy conservation, and safety to life and property from fire and other hazards attributed to the built environment and to provide safety to firefighters and emergency responders during emergency operations.

The City does not have any local amendments to the Building Code. Program H-2.1 requires the City to continue implementing an active code enforcement program through the Building Department and continue to offer online and physical forms for residents to submit Code Enforcement complaints through.

I N F R A S T R U C T U R E C O N S T R A I N T S
Another factor that could constrain new residential construction is the requirement and cost to provide adequate infrastructure (major and local streets; water and sewer lines; and street lighting) needed to serve new residential development. In most cases, where new infrastructure is required, it is funded by the developer and then dedicated to the City, which is then responsible for its maintenance. Because the cost of these facilities is generally borne by developers, it increases the cost of new construction, with much of that increased cost often “passed on” in as part of home rental or sales rates.

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1. Dry Utilities
Dry utilities include electric, telephone, TV, internet, and gas service in a community. The various utility providers are responsible for providing these necessary resources to new housing units.

Electrical
Pacific Gas and Electric Company (PG&E) is responsible for providing service to all existing and future development in Scotts Valley. Electrical infrastructure is located aboveground on utility poles as well as belowground. PG&E continues to provide energy to customers through a series of methods including oil and natural gas, renewable energy resources and alternative diverse supplies. The power mix delivered to customers includes the following greenhouse gas-free technologies:
 Non-emitting nuclear generation (43 percent)
 Large hydroelectric facilities (10 percent)
 Eligible renewable resources, such as wind, geothermal, biomass, solar and small hydro (31 percent)
 Natural gas (16 percent)
Natural Gas
PG&E also provides natural gas services for Scotts Valley. Natural gas pipelines are located underground. As a public utility, PG&E is under the jurisdiction of the California Public Utilities Commission (CPUC) which regulates natural gas rates and natural gas services, including in state transportation over the utilities’ transmission and distribution pipelines system, storage, procurement, metering, and billing. PG&E is responsible for providing service to residential, industrial, and commercial customers in Scotts Valley.

2. Water Supply
Water is provided by the Scotts Valley Water District and the San Lorenzo Valley Water District (SLVWD). The Scotts Valley Water District serves a population of approximately 10,700 within a service area of six square miles, including a portion of unincorporated land to the north of the City. The water service generally follows the boundary of the City with the exceptions of Mt.

Hermon Road, Pasatiempo Pines and Manana Woods subdivisions, Valley Gardens Golf Course, and Vista Del Lago and Spring Lakes Mobile Home Parks. The District is responsible for providing a safe and reliable source of water to Scotts Valley households. The District serves an average demand of almost 370 million gallons of water a year. The following provides general information on water throughout the City; however, more in depth details are available in the Conservation Element.

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The San Lorenzo Valley Water District (SLVWD) also supplies water in the San Lorenzo Valley, including Scotts Valley. SLVWD supplies water service to approximately 500 customers in the Pasatiempo Pines and Manana Woods area of Scotts Valley from three wells located near the Santa Cruz Probation Center. Within the Scotts Valley portion of the SLVWD there are three major facilities with a combined storage capacity of 390,000 gallons, and approximately 4.5- mile transmission and distribution system.

Scotts Valley Water Source
The City receives its water supply from groundwater. The District’s groundwater is stored in Santa Margarita Groundwater Basin, which is comprised of the Santa Margarita Sandstone, Monterey Shale, Lompico and Butano formations. Rainfall is the main source of refilling the basin. The City’s main supply of drinking water is supplied primarily through groundwater collected through local rainfall. The Santa Margarita Groundwater Basin (SMGB) is the primary source of overall water supply for Scotts Valley and covers over 30 square miles in the Santa Cruz mountains.

Water Maintenance and Repair
The Scotts Valley Water District operates, maintains, and disinfects the water supply. The water distribution system includes wells that vary from 350 feet to 1,750 feet deep. Pumped water is filtered through a pressurized system of sand, gravel, and anthracite to remove iron, manganese, and hydrogen sulfide from the water. Chemicals are introduced before and after filtration to oxidize the iron and disinfect the water.

Water Production
Groundwater collected from local rainfall supplies the City’s drinking water. There are three water treatment plants that serve the Water District: Orchard Run Water Treatment with a capacity of 1.08 million gallons per day, El Pueblo Water Treatment Plant with a capacity of 547,000 gallons per day, and Well 10 with a capacity of 432,000 gallons per day.

Water Quality
The Water District is responsible for providing residents with reliable, safe, clean, and potable and domestic water supply. The Water District is required to test the quality of the water it serves in order to guard the health of our customers and the general public. Federal, state and local agencies all have a role to play in setting water quality standards. Water quality samples results are compiled in a monthly report and forwarded to the State Water Resources Control Board, Division of Drinking Water.

Water Demand
In 2020, the Water District provided service to approximately 4,330 connections. Residential customers represent 80 percent of the District’s customer base and consume approximately 67 percent of the potable water produced annually by the Department. The Department currently has a total of six production wells with a maximum capacity of 1,400 gallons per minute.

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Approximately 1,100-to-1,200-acre feet per year (AFY) of potable water is delivered to customers.

Wastewater
The Scotts Valley Water Reclamation Facility (WRF) regularly maintains and improves the City’s public sanitary sewer system. The WRF consistently meets the steadily increasing demand for recycled water to irrigate local parks, schools, residences, landscape medians, and businesses.

Due to the increased use of recycled water, the WRF has been able to decrease the amount of treated effluent that is discharged to Monterey Bay during dry weather periods. According to WRF, in 2021, the total recycle water produced in the City’s wastewater recycle filter plant was

64.13 million gallons. The City of Scotts Valley owns and operates seven lift stations at various locations throughout the City. The City’s sanitary sewer collection system is made up of approximately 40 mile of pipeline.

3. Fire and Emergency Services
The Scotts Valley Fire District includes two fire stations to serve nearly 20,000 residents within a 24 square mile boundary. The District has 28 full-time employees, one part-time employee, and seven paid-call firefighters which provide a variety of services which include fire suppression, emergency medical services, administration, technical rescue, hazardous materials mitigation, public education, fire investigation, and fire prevention. Daily emergency response consists of 7 firefighters and one Battalion Chief. Additionally, the Fire District has Mutual Aid Agreements with neighboring fire suppression organizations to further strengthen the emergency services available to residents in case of emergency.

The Fire District provides the following emergency services:
 Structure Fire Suppression
 Wildland Fire Suppression
 Emergency Medical Services
 Hazardous Materials Incident
Response
 Disaster Response and Education
Emergency Medical Services (EMS)
The Scotts Valley Fire District is responsible for keeping up with emergency medical mandates, equipment, and program development for both advanced and basic life support education and training. Every firefighter in the district has some level of EMS training which requires recertification and continued education. Through cooperative agreements within the Santa Cruz County EMS system, the District can also provide mutual EMS aid for large scale incidents within the County.

4. Police Services
The Scotts Valley Police Department (SVPD) acts as the City’s enforcement agency to provide general law enforcement. The SVPD is staffed by one Chief of Police, two Captains, five

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Sergeants, twelve Patrol Officers, seven Emergency Dispatch Clerks, and one Administrative Secretary Analyst. The Department is organized into two divisions: Operations and Administrative Services. The Operations Division consists primarily of Patrol Officers with specialized units such as Reserve Officers, Traffic Officers, K9 Officers, and Explorers used to support patrol with their duties. The Administrative Services Division consists of Emergency Dispatch Clerks, Investigations, and Citizen Volunteers.

The City of Scotts Valley provides a variety of
Housing Resources and services to assist the
community in accessing housing which meets their
needs and income levels. This Appendix provides a
summary of those resources and services.

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R E S O U R C E S F O R S P E C I A L N E E D S G R O U P S

1. Seniors
Seniors (persons 65 years of age and older) typically prefer to stay in their own homes as long as possible. If family members are nearby, they can also assist with basic care needs, enabling seniors to remain in their homes longer. However, this is not always possible. As such, the City provides information online about the Scotts Valley Senior Center and its services for residents.

The Senior Center’s purpose is to provide a social network with educational, recreational, and craft activities for Scotts Valley senior residents.

Scotts Valley Senior Life Association (SVSLA) is a local non-profit organization established to provide education and health support to senior residents. Examples of SVSLA’s projects and programs include a new performing arts center and Senior Life Online workshops that include guest speaks, such as artists, council members, and Fire District staff.

The following resources are provided County-wide and available to Scotts Valley seniors:
 Senior Network Services: Non-profit agency providing senior citizens and persons with disabilities with information, guidance, and assistance in coordinating existing resources.
 Adult and Long-Term Care Division (ALTC): Managed by the County of Santa Cruz Human Services Department, ALTC provides case work services and resource programs that offer community service and care options. Adult Protective Services provides intervention services to protect elderly or dependent adults from abuse, neglect, or exploitation. Additionally, ALTC provides In-Home Supportive Services (HSS) to support safe independent living for low-income elderly adults and disabled persons of all ages.  Meals on Wheels: Meals on Wheels for Santa Cruz County provides meals at five dining sites through Santa Cruz County as well as home delivered meal for older adults over 60 who struggle to meet their own nutritional needs. Meals are delivered once a week, frozen and ready to re-heat in order to accommodate varying meal schedules. The Scotts Valley dining site is located at the Scotts Valley Senior Center on Wednesdays at 11:30am.
 Senior Citizens Legal Services (SCLS): SCLS provides free legal services to elderly residents to defend the rights of the elderly to quality housing, government benefits, and protection from exploitation and discrimination.
 Advocacy, Inc.: Independent non-profit agency that manages two main programs:

Patients’ Rights Advocates and Long-Term Care Ombudsman. The Patients’ Rights Advocate Program is a state mandated program charged with rights protection and advocacy for all mental health consumers residing in Santa Cruz County, and to assist recipients of mental health services to exercise their human and civil rights. Patients’

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Rights Advocates represent a client's expressed desire as defined by the client as long it’s within the bounds of the law and achievable within the Advocate’s resources.

Advocates do not determine what is most appropriate for the client, or what may be in the client’s best interest. Rather, Advocates advise clients about their options, and the implications of those options, and assist the client to make an informed choice.  Scotts Valley Senior Life Association (SVSLA): A non-profit organization established to provide education and support relating to 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.  Community Bridges Elderday Program: Elderday provides day services for adults with complex medical conditions. The program also offers services outside of health care through their planned daily activities. These activities include music, yoga, dance, art, and woodworking.

2. Persons with Disabilities
Access Santa Cruz County lists social services for persons with disabilities in the County of Santa Cruz on its website. The following are social services available to Scotts Valley residents with disabilities:
 Advocacy Inc.: Free services to protect patients’ rights and free advocacy services for residents of nursing homes and residential care facilities. The Ombudsman Program is charged with advocating for seniors and disabled individuals living in residential care facilities for the elderly and skilled nursing facilities.  Hospice of Santa Cruz County: Non-profit community-based health project that provides health care to individuals of all ages facing the advanced stages of any lifethreatening illness.  San Andreas Regional Center: 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): A community-based, crossdisability, non-profit organization that is designed and operate with people with disabilities. The organization provides a variety of programs from peer support, housing assistance, and independent living skill training.

3. Persons Experiencing Homelessness
Given its location, Scotts Valley sees much lower occurrences of homelessness than other jurisdictions in Santa Cruz County. However, the City still takes part in a countywide

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collaboration with Santa Cruz County, its cities, and nonprofit organizations to prevent and end homelessness through the provision of housing and services to persons experiencing and those at immediate risk of homelessness. A wide range of homeless assistance programs are implemented to form a coordinated, countywide Continuum of Care (CoC) system, which works to resolve the crisis of homelessness, to house people as quickly as possible, and meet service needs along the way.

The City also participates in the Housing for Health Partnership (H4HP), which serves as the federally designated CoC for Santa Cruz County. HUD provides over $4 million per year to the Santa Cruz County community through the work of the H4HP.

F I N A N C I A L R E S O U R C E S
Providing an adequate supply of decent and affordable housing requires funding from various sources, the City has access to the following funding sources.

1. Section 8 Housing Vouchers
The Section 8 Housing Choice Voucher program is a Federal government program to assist very low-income families, the elderly, and the disabled with rent subsidy payments in privately owned rental housing units. Section 8 participants are able to choose any housing that meets the requirements of the program and are not limited to units located within subsidized housing projects. They typically pay 30 to 40 percent of their income for rent and utilities. The Santa Cruz Housing Authority administers and manages the Section 8 Housing Choice vouchers within Scotts Valley. The Santa Cruz Housing Authority website lists a comprehensive list of affordable rental units in Santa Cruz County.

2. Community Development Block Grants (CDBG)
The Community Development Block Grant (CDBG) program provides annual grants on a formula basis to cities to develop viable urban communities by providing a suitable living environment and by expanding economic opportunities, principally for low- and moderate-income persons (up to 80 percent AMI).

CDBG funds can be used for a wide array of activities, including:
 Housing rehabilitation;
 Lead-based paint screening and abatement;
 Acquisition of buildings and land;
 Construction or rehabilitation of public facilities and infrastructure, and  Public services for low-income households and those with special needs.

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Each year, the City receives CDBG funds from the U.S. Department of Housing and Urban Development (HUD). The City and Scotts Valley Chamber of Commerce are responsible for administering these funds. The funds must be used to develop viable communities by promoting integrated approaches that provide items such as decent housing, a suitable living environment, and expand economic opportunities for low- and moderate-income persons.

3. Home Investment Partnership Program
The HOME program provides federal funds for the development and rehabilitation of affordable rental and ownership housing for households with incomes not exceeding 80 percent of area median income. The program gives local governments the flexibility to fund a wide range of affordable housing activities through housing partnerships with private industry and non-profit organizations. HOME funds can be used for activities that promote affordable rental housing and homeownership for low-income households.

4. Local Early Action Planning (LEAP) Grant
The City applied for and received a total of $65,000 of LEAP grant funding from HCD. LEAP Grants provide funding opportunities for jurisdictions to update their planning documents and implement process improvements that will facilitate or accelerate housing productions to meet the 6th Cycle RHNA.

5. SB 2 Grant
To supplement the cost of the City’s effort to update the streamlining process of affordable housing, the City has been awarded an SB 2 Planning Grant Program grant from HCD. The SB 2 program includes improvements to expedite local planning processes. In 2019, the City received $160,000 from the SB 2 Grant.

6. Affordable Housing Programs
The City of Scotts Valley provides the following affordable housing programs: First Time Homebuyer/Silent Second Mortgage, Security Deposit, Mortgage Credit Certificates, and Density Bonus. HouseKeys serves as the City’s Affordable Housing Administrator for the City’s Below Market Rate Housing Program.

The purpose of the affordable housing programs is to:
 Enhance the public welfare and assure that further housing development contributes to the attainment of the City’s housing goals as described in the Housing Element of the General Plan, by creating, preserving, maintaining, and protecting housing affordable for households of very low-, low- and moderate-income;
 Assure that the remaining developable land in the City’s planning area is utilized in a manner consistent with the City’s housing policies and needs;

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 Increase the number of affordable housing units in Scotts Valley in recognition of the insufficient number of existing affordable housing units in relation to the community’s current and future needs; and
 Assure that new affordable housing units that are constructed are distributed throughout the City as part of mixed-income developments in order to obtain the benefits that flow from economically diverse communities, increase access to opportunity, and affirmatively further fair housing.

O P P O R T U N I T I E S F O R E N E R G Y C O N S E R V A T I O N

1. Energy Use and Providers
Pacific Gas and Electric Company (PG&E) and Central Cost Community Energy (CCCE) provide electricity and natural gas services for the City. Natural gas is a “fossil fuel” and is a nonrenewable resource. The natural gas transmission pipelines within the City are owned and operated by PG&E. Pacific Gas and Electric Company has the capacity and resources to deliver gas except in certain situations that are noted in state law. As development occurs, PG&E will continue to extend its service to accommodate development and supply the necessary gas lines. Electricity is provided on an as-needed basis to customers within existing structures in the City. Every year CCCE expands and improves on existing facilities according to demand.

PG&E offers programs to promote the efficient energy use and assist lower-income customers.

This includes participation in the Low-Income Home Energy Assistance Program and Energy Savings Assistance Program to help homeowners and renters conserve energy and control costs. Eligible customers receive no-cost weatherization, including attic insulation, energy efficient refrigerators, energy-efficient furnaces, weather stripping, caulking, low-flow showerheads, water heater blankets, and door and building envelope repairs which reduce air infiltration.

2. Energy Conservation
The primary uses of energy in urban areas are for transportation lighting, water heating, and space heating and cooling. The high cost of energy demands that efforts be taken to reduce or minimize the overall level of urban energy consumption. Energy conservation is important in preserving non-renewable fuels to ensure that these resources are available for use by future generations. There are also a number of benefits associated with energy conservation including improved air quality and lower energy costs.

Energy conservation strategies can help reduce consumptions of energy which would reduce monthly costs to homeowners and renters. Examples of energy conservation strategies include weatherization such as installation of more efficient appliances, and solar energy systems.

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Buildings can also be designed to incorporate energy conservation strategies such as cooling materials and building orientation. The City encourages energy conservation strategies in the zoning code (17.36.020).

AB 686 established new requirements for all
California jurisdictions to ensure that local laws,
programs, and activities Affirmatively Further Fair
Housing (AFFH). Under State law, affirmatively
furthering fair housing means “taking meaningful
actions, in addition to combatting discrimination,
that overcome patterns of segregation and foster
inclusive communities free from barriers that restrict
access to opportunity based on protected
characteristics.” These characteristics can include,
but are not limited to, race, religion, sex, marital
status, ancestry, national origin, color, familiar
status, or disability.

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A S S E S S M E N T O F F A I R H O U S I N G I S S U E S

1. TCAC/HCD Opportunity Scores
The California Tax Credit Allocation Committee (TCAC) and the California Department of Housing and Community Development (HCD) developed the TCAC Opportunity Maps to provide research and evidence-based policy recommendations to further HCD’s fair housing goals.

These goals include: (1) avoiding further segregation and concentration of poverty and (2) encouraging access to opportunity through land use policy and affordable housing, program design, and implementation. Overall, opportunity maps are intended to display which areas, according to research, offer low-income children and adults the best chance at economic advancement, high educational attainment, and good physical and mental health. The opportunity maps also help inform the TCAC to distribute funding more equitably to affordable housing in areas with the highest opportunity through the Low-Income Housing Tax Credit (LIHTC) Program.

Figure E-1 shows the TCAC/HCD Opportunity Scores for the City and surrounding neighborhoods. The map uses a regional index score to determine categorization of resource levels, as detailed below:
 Highest Resource – Top 20 percent highest-scoring census tracts in the region.

Residents have the best outcomes in terms of health, economic attainment, and educational attainment.
 High Resource – Top 40 percent highest-scoring census tracts in the region.

Residents have access to highly positive outcomes in terms of health, economic attainment, and educational attainment.
 Moderate Resource – Top 30 percent of remaining census tracts in the region.

Residents have access to somewhat positive outcomes in terms of health, economic attainment, and educational attainment, or a mix of high and low outcomes in certain areas.
 Moderate Resource (Rapidly Changing) – Moderate resource-scoring census tracts that are nearing High Resource status and are experiencing rapid increase in certain areas such as housing prices, median income, proximity, etc.  Low Resource – Bottom 30 percent of remaining census tracts in the region.

Residents may have a lack of access to positive environmental, economic, and educational opportunities that results in negative outcomes or perpetuated outcomes.

Figure E-1 shows the City is categorized as High to Highest Resource. This is generally consistent with the region, aside from the mostly undeveloped region to the west that shows with High Resource Scores.

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The City has identified candidate sites to accommodate future housing growth based on existing access to community resources, services, and public transportation, while also considering the availability of land, developer interest, and general likelihood the sites would develop residential uses over the next eight years. Figure E-1 further shows the three census tracts of the City where sites have been identified in relation to the location of resources and services1.

Census Tract 1
The TCAC Opportunity Maps identified Census Tract 1 (06087120900) as an area with high resources. Census Tract 1 consists of the areas West of Highway 17 and North of Mount Hermon Road. Scotts Valley Drive runs through Census Tract 1. The area has the most dwelling units and a majority of the sites for all income levels. Census Tract 1 has the most low-/very low-income, moderate-income, and above-moderate-income units compared to the other two areas. In total, there are 1,581 units, with 765 low-/very-low-income units, 128 moderateincome units, and 688 above-moderate units.

There are several restaurants and retail uses located along Mount Hermon Road and Scotts Valley Drive. Major shopping areas such as Scotts Valley Square Shopping Center and Kings Village Shopping Center are located in Census Tract 1. These shopping centers include retail stores such as a Target, Dollar Tree, Walgreens, and Nob Hill Foods that are near each other.

There are also a few schools located in Census Tract 1 such as the Scotts Valley Middle School, and the Scotts Valley High School. There are also recreational and preserved areas such as Skypark, MacDorsa Park, and the Glenwood Open Space Preserve. Other services include the United States Postal Service, Scotts Valley Fire District, and Police Department. In general, the area is well supported with resources and will continue to be as the Town Center Specific Plan area is developed in this census tract.

Census Tract 2
Census Tract 2 (06087121200) consists of the areas East of the 17 Highway. In total, there are 54 units, with 22 low-/very-low income units, 5 moderate-income units, and 27 abovemoderate units. The majority of the land uses in this area is open space and residential. Census Tract 2 has the least amount of housing units in all income categories, as compared to the other two census tracts. The TCAC Opportunity Maps has identified this area to have the highest 1 To provide comparative data, the analysis throughout this Appendix relies on census tract-level data.

However, the census tracts in the City also extend out into other jurisdictions and the data may not be fully reflective of Scotts Valley residents and housing units. To that extent, census tracts 2 and 3 only account for spall portions of Scotts Valley, in comparison to census tract 1. As such, the three census tracts cannot fully be compared at equal levels – there will be an imbalance leaning heavily towards census tract 1. This logic also applies to the dispersal of candidate sites in Appendix F. An “AFFH Summary” is provided at the end of this Appendix to provide a summarized, comparative analysis between the two main transportation corridors.

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resources. There are a few office and commercial spaces along the Green Hills Road. Along this road there is a print shop, catering business, health insurance agency, and various gymnastic centers. There are two schools in Census Tract 2; Baymonte Christian School and Montessori Scotts Valley. Census Tract 2 has a variety of churches within the area such as the ReGeneration Church, Gateway Bible Church, and Hope Church.

Census Tract 3
Census Tract 3 (06087120800) is located in the City’s Southwestern area and consists of areas south of Mount Hermon Road. In total, there are 497 units, with 95 low-/very-low-income units, 23 moderate-income units, and 379 above-moderate units. This census tract has the second highest number of units in Scotts Valley.

Similar to Census Tract 2, Census Tract 3 is also identified as a Highest Resource category. A majority of the land uses in this area is medium high density and medium density residential.

The area offers close access to a number of restaurants, auto repair shops, a gymnasium, as well as a CVS, and a Safeway. There is also an open space area was formerly used as a golf and has been identified as a pipeline project (Valley Gardens).

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Figure E-1: TCAC/HCD Opportunity Map
Source: California Department of Housing and Community Development – AFFH Data Viewer

Census Tract 1
6087120900
Census Tract 3
6087120800
Census Tract 2
6087121200

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2. Patterns of Integration and Segregation
To inform priorities, polices, and actions, this section contains an analysis of integration and segregation, including patterns and trends, relating to people with protected characteristics.

Segregation is defined as the separation or isolation of persons of a particular race/ethnic group, national origin group, familial status, individuals with disabilities, or other social group by enforced or voluntary residence in a restricted area, by barriers to social connection or dealings between persons or groups, by separate educational facilities, or by other discriminatory means. It is important to note that segregation is a complex topic, difficult to generalize, and is influenced by many factors. Individual choices can be a cause of segregation, with some residents choosing to live among people of their own race or ethnic group. For instance, recent immigrants may depend on nearby relatives, friends, and ethnic institutions to help them adjust to a new country. Alternatively, when White residents leave neighborhoods that become more diverse, those neighborhoods can become segregated. Other factors, including housing market dynamics, availability of lending to different ethnic groups, availability of affordable housing, and discrimination can also cause residential segregation.

Race and Ethnicity
Neighborhood Segregation and Diversity
As discussed in the Housing Needs Assessment (Table B-3), the City is made up of a majority White population at about 76 percent, followed by a smaller Hispanic or Latino population at

10.8 percent.

Figure E-2 illustrates displacement risk for Scotts Valley and the surrounding communities. As shown, all of Scotts Valley reports low displacement risk. Comparatively, Santa Cruz has two areas of higher risk. A number of displacement factors are detailed in Table E-1 for the City’s three census tracts (the census tracts cover area outside of the City’s limits).

Table E-1: Neighborhood Segregation Household Data
Census Tracts Median
Income
Low-Income
Households
Speak
English Less
than Very
Well
Renter
Occupied Hot Market Median Rent
06087120900 $107,500 22.9% 3.5% 28.4% Yes $1,905
06087121200 $159,643 18.9% 0.4% 20.3% Yes $1,765
06087120800 $124,000 27.6% 0.5% 19.7% No $2,528
Source: California Department of Housing and Community Development – AFFH Data Viewer; 2019 ACS data Figures E-3a and E-3b map diversity and neighborhood segregation. Figure E-3a illustrates the diversification of the City between 2010 and 2018. Over the eight-year period, the City experienced an increase in diversity in the Skypark area of the City with the Diversity Index score increasing from “Lower Diversity” to a score of 40-55. Figure E-3b maps neighborhood segregation by race and ethnicity. The City has one census tract that reports “Latinx-White”

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populations and two remaining census tracts that report “Mostly White.” The first census tract is located west of Highway 17 and north of Mount Hermon Road. The second census tract is located east of Highway 17 and the third census tract is located south of Mount Hermon Road.

This demographic mix is similar to the cities of Santa Cruz, Capitola, Watsonville, and Santa Cruz County. From 2010 to 2018, the county and neighboring communities also experienced gains in diversity. The eastern portion of the County and surrounding cities have also experienced an increase in diversity in the western and northwestern regions. The regional trends on racial composition are explored in more detail in Appendix B.

Overall, the City of Scotts Valley has a range of demographics from high percent white populations in the eastern and southern portion of the city. These regions in the City’s neighborhood segregation consists of Mostly White neighborhoods. Additionally, the city has shown increased diversity over the years in those areas with moderate percent white populations except for the eastern and southern portions of the city is identified as having lower diversity.

Familial Status
Local and Regional Level Trends of Segregation and Integration Table E-1a and E-1b below shows tract-level trends of familial status throughout Scotts Valley.

The majority of households with children live in a married couple household whereas some households with children live with one householder. More than half of the population in Scotts Valley live with a spouse. Specifically, Census Tract 1 located west of Highway 1 and north of Mount Hermon Road has a higher concentration of married couple households with children.

Comparatively, Scotts Valley exhibits generally similar patterns to Santa Cruz and Capitola, who have slightly more census tracts with lower percentages of married couple households with children. Programs associated with new developments in Census Tract 1 of Scotts Valley include resources for low-income families.

Table E-1a: Neighborhood Segregation Familial Status
Census Tract Per. Population
Living with Spouse
Per. Children in Female
Householder (No Spouse)
Per. Children in Married
Couple Household
06087120901 59.7 0 89.8
06087120902 56.2 19.3 80.7
06087121200 56.2 12.4 79.0
06087120800 58.4 8.8 70.2
Source: California Department of Housing and Community Development – AFFH Data Viewer

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Table E-1b: Population by Familial Status by Census Tract Household Types 06087120901 06087120902 06087121200 06087120800 Total Households 1,442 2,031 2,157 2,353
Married-Couple Family
Households 956 1,112 1,408 1,267
With Children 268 485 520 350
Non-Family Households 388 711 553 828
Female Headed Households, No
Spouse Present with Children 0 98 28 60

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Source: American Community Survey, 5-Year Estimates, Table S1101, 2020.

Figure E-2: Displacement Risk
Source: California Department of Housing and Community Development – AFFH Data Viewer

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Figure E-3a: Diversity Index (2010-2018)
Source: California Department of Housing and Community Development – AFFH Data Viewer 2010
2018

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Figure E-3b: Neighborhood Segregation
Source: California Department of Housing and Community Development – AFFH Data Viewer

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Census Tract 1
Scotts Valley is generally made up of high median incomes. Census Tract 1, west of Green Hills Road and north of Mount Hermon Road, reports the largest percent of persons who speak English less than very well and the largest percent of renter occupied households. This area has the lowest median income out of the other two census tracts. As a result, majority of the new housing opportunities in this area were designated to the low-/very low-income households.

There are new developments along Scotts Valley Drive where a majority of the resources are concentrated.

Census Tract 2
Census Tract 2, east of Highway 17 has the smallest percentage of low-income households, smallest percentage of persons who speak English less than very well, and the lowest median rent compared to the other two census tracts. The majority of this census tract has the highest median income compared to the other two census tracts. Hence, a majority of the sites identified in this area is dedicated to above-moderate-income households. Census Tract 2 also identified units for low-/very low-income in the area through the development of residential rezone sites. Introducing more sites to this area increases the opportunity for increased diversity in income-groups and for people of different backgrounds.

Census Tract 2 experiences topographic conditions that make the development of housing, specifically affordable housing, infeasible. The topography of this portion of the City creates a financial constraint to the development of housing. Hills, canyons, and sloped terrain increase the cost of housing, especially moderate and low-income housing, due the additional measures required to safely develop housing in that environment. Therefore, when also considering access to resources, services, and transportation, potential housing units are limited to areas that can feasibly develop at their respective income level while still providing increased access to opportunities, resources, and transportation.

It is more difficult and expensive to develop housing on slopped or hilly terrain, making affordable housing infeasible in these areas. Because development of housing in these areas is costly, typically only households with higher incomes can afford to buy or rent, establishing a concentration of affluence. Many lower income housing sites have been identified throughout the City and within areas considered RCAAs. The City has added programs to Chapter 2: Plan to address RCAAs present in the City.

Additionally, Census Tract 2 cannot accommodate additional growth due to infrastructure constraints. Housing proposed in Census Tract 2 has historically been predominantly single family homes which have only been affordable to above moderate income households.

Census Tract 3
Census Tract 3, south of Mount Hermon Road, has the highest percent of low-income households at 27.6 percent but it also has the highest median rent and lowest percent of renter-occupied households. As shown in the AFFH Data Viewer and Table E-1, majority of this

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area has a median income of $124,000. Hence, the sites identified in Census Tract 3 have less diversity for lower-income households. As a result, the majority of the housing dedicated in this area are designated to the above-moderate-income group. Census Tract 3 will continue to develop through the development of pipeline projects and mixed-use rezones. There are still some variety in housing options at varying costs for low-/very low-income and moderateincome units. Hence, this increases the opportunity for increased diversity in income-groups and for people of different backgrounds to live in this area.

Similar to Census Tract 2, some areas in Census Tract 3 experience topographic conditions that make the development of housing, specifically affordable housing, more difficult. The topography of this portion of the City creates a financial constraint to the development of housing. While topographical constraints preclude the development of affordable housing in Census Tract 3, some areas are not as burdened and may be able to facilitate affordable housing development. Pipeline Projects in Census Tract 3 present opportunities to develop affordable units in the area, furthering the integration of Census Tract 3. Affordable units would increase housing choice in Census Tract 3 and would improve conditions for both existing and future residents across various metrics.

The City has encouraged the development of affordable housing in these areas for decades, but without financial incentives, which the City lacks, it difficult to attract development in the area.

Additionally, Census Tract 3 cannot accommodate too much additional growth due to infrastructure constraints. Housing proposed in Census Tract 3 has historically been predominantly single family homes which have only been affordable to above moderate income households.

While Census Tract 3 has better access to resources, services, and transportation than Census Tract 2, its is Census Tract 1 with the best access to resources, services, and transportation.

Therefore, when also considering access to resources, services, and transportation, potential housing units are limited to areas that can feasibly develop at their respective income level while still providing increased access to opportunities, resources, and transportation.

Racially Concentrated Areas of Poverty (R/ECAP)
Racially and Ethnically Concentrated Areas of Poverty (R/ECAPs) are geographic areas with significant concentrations of poverty and minority populations. HUD developed a census-tract based definition of R/ECAP that relies on a racial and ethnic concentration threshold and a poverty test. The threshold states that an area with a non-White population of 50% or more would be identified as a R/ECAP; the poverty test defines areas of extreme poverty as areas where 40% or more of the population live below the federal poverty line or where the poverty rate is three times the average poverty rate for the metropolitan area (whichever is lower).

Thus, an area that meets either the racial or ethnic concentration and the poverty test would be classified as a R/ECAP. There are no R/ECAPs in the City, nor in the surrounding communities, which has been the case since R/ECAP data collection started around 2019. The closest R/ECAPs are located within the City of San Jose.

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Racially Concentrated Areas of Affluence (RCAA)
R/ECAPs are a long-standing, contributing factor to segregation. Patterns of segregation in the United States show that of all racial groups, the White population is the most separated from other racial groups. Research also identifies segregation of affluence to be greater than the segregation of poverty. Racial and economic segregation can have significant effects on respective communities, including, but not limited to, socioeconomic disparities, educational experiences and benefits, exposure to environmental conditions and crime, and access to public goods and services.

Data used in the analysis of Racially Concentrated Areas of Affluence (RCAAs) comes from the 2015-2019 American Community Survey and measured at the census tract level. HCD has created an RCAA metric to reflect California's relative diversity and regional conditions, and to aid local jurisdictions in their analysis pursuant to AB 686 and AB 1304. HCD's RCAA metric is first calculated using a Location Quotient (LQ) for each census tract that represents the percentage of total White population (White Alone, Not Hispanic or Latino) per census tract compared to the average percentage of total White population for all census tracts in a given Council of Governments (COG). For example, a census tract with an LQ of 1.5 has a percentage of total White population that is 1.5 times higher than the average percentage of total White population in the given COG region. To determine RCAAs, census tracts with an LQ of more than

1.25 and a median income 1.5 times higher than the COG Area Median Income (AMI), or 1.5 times the State AMI, whichever is lower, are assigned a numeric score of 1. A score of 1 indicates that a census tract is an RCAA. Census tracts that did not meet this criterion are assigned a score of 0.

The nationwide RCAA analysis identifies the following:
 RCAA tracts have more than twice the median household income of the average tract in their metro area.
 Poverty rates in RCAAs are significantly lower and are, on average, about 20 percent of a typical tract.
 RCAAs tracts are more income homogenous than R/ECAPs.  The average RCAA is about 57 percent affluent, whereas the average R/ECAP had a poverty rate of 48 percent.

The typical RCAA tract has a rate of affluence 3.2 times that of a typical tract, whereas R/ECAPs on average had a poverty rate 3.2 times of that of a typical tract. Overall, RCAAs may represent a public policy issue to the extent that they have been created and maintained through exclusionary and discriminatory land use and development practices.

Table E-2 below displays the RCAA data for the City. The data shows these RCAAs have significantly higher percentage of white residents and median household incomes. Table E-3 displays the data of median household income by race for the City compared to Santa Cruz

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County. All households in Scotts Valley had a relatively higher median income compared to the County ($108,289 and $89,986, respectively). This trend is also similar for those who identify as White (Not Hispanic or Latino). The City’s median income is approximately $7,000 more than the County’s White population.

It can be concluded that White households in Scotts Valley Typically have higher household income than all households and those of the White households in the County. It is difficult and expensive to develop housing on hilly terrain, making affordable housing infeasible in these areas. Because development of housing in these areas can be costly, typically only households with higher incomes can afford to buy or rent, establishing a concentration of affluence. Lower income housing sites have been identified throughout the city and are within areas considered RCAAs.

Table E-2: Median Household Income and White Population of RCAAs Census Tract Percent White Population Median Income
06087121200 (census tract 2) 85.28% $112,877
06087120900 (census tract 1) 78.12% $105,020
06087120800 (census tract 3) 85.21% $107,014
Source: (U.S. Census Bureau) from HCD AFFH Data Viewer, Accessed December 6, 2022.

Table E-3: Median Household Income by Race and Geography Race Scotts Valley Santa Cruz County
Median Income Population Median Income Population
White (Not Hispanic
or Latino) $107,971 88.8% $100,259 56.9%
All Households $108,289 -- $89,986 --
Notes: Median income in the past 12 months (in 2019 inflation-adjusted dollars) Source: American Community Survey, 5-Year Estimates, 2019.

It should also be noted that census tracts 2 and 3 represent approximately 44.4% of land within the City limits. Only 11% of census tract 2 and 23 percent of census tract 3 are within the City limits. The majority of both tracts fall within the jurisdiction of City of Santa Cruz and County of Santa Cruz. As such, data is heavily impacted by non-Scotts Valley households. The portion of those census tract 3 fall within the City of Scotts Valley include commercial uses, a currently unused golf course (location of the Valley Gardens pipeline project), a mobile home park, and some single-family neighborhoods along Mt. Hermon Road. Census tract 2 is developed with single-family neighborhoods and office uses east of Highway 17. Another important factor for both of these areas, and particularly census tract 2, is the topography. Most of the census tract 2 within City limits is currently developed to the base of steeper slopes; Figure E-15 illustrates the impact of the slopes on the area.

In total, approximately 13 percent of lower income units identified in Appendix F are located within the areas marked as RCAA. While the RCAA areas represent a total of about 44 percent of the City’s land, census tract 2 is not located within close and convenient proximity to existing community resources, amenities, and public transportation. As such, it only includes some

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lower income units through the rezoning of a few single-family properties to higher density residential; however, policy actions are included to facilitate the development of ADUs within existing single-family neighborhoods as a way of expanding housing opportunities in this area.

Census tract 3 includes more lower income units due to its location along Mt. Hermon Rd. and access to the transit center, commercial uses, and general community resources.

This Appendix E concludes with an area assessment comparing Scotts Valley Drive area to Mt.

Hermon Road area as the location of the candidate sites is focused around both corridors. The two corridors provide for the greatest development opportunities in areas prime for the development of multi-family and lower income units. Census tract 3 falls within the Mt.

Hermon Road corridor area and the summaries for both areas include mention of the RCAA findings.

Policy actions are included in the Chapter 2: Housing Plan to expand housing opportunities in single-family neighborhoods and in the two RCAA census tracts. This includes Program H-3.2 with mobility actions such as facilitating ADU development, promoting SB 9 development permitted by State law and adopting an SB 9 Zoning Code amendment, and establishing a homesharing program.

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Figure E-4: Racially Concentrated Areas of Affluence
Source: California Department of Housing and Community Development – AFFH Data Viewer

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Census Tract 1
As stated above, there are no R/ECAPs in the City. Similarly, as shown in Figure E-4, there are no R/ECAPs identified in this area. Census Tract 1 has a variety of new housing opportunities to accommodate a variety of housing for different income categories.

Census Tract 2
Table E-2 shows that Census Tract 2 has the lowest percentage of white population and the lowest median income compared to the other two census tract (78.21 percent and $105,020).

Figure E-4 also shows that Census Tract 2 has RCAAs in the area. All of the candidate sites located in this area are classified under residential rezone projects. There are a few moderateincome units. Majority of the units are for above-moderate and low-/very-low-income units. In total, there are 54 units, with 22 low-/very-low-income units, 5 moderate-income units, and 27 above-moderate-income units.

Census Tract 3
As shown in Figure E-4, census tract 3 also has RCAAs in the area. New housing opportunities in this census tract are developed through a variety of projects such as pipeline projects, mixeduse rezone, and existing residential capacity projects. Majority of the units were dedicated to above-moderate-income in this area due to the high median income of the area. However, new housing in census tract 3 also includes 95 units for low-/very-low-income and 23 units for moderate-income households. This would allow for some opportunities for diversity in incomegroups and people of different backgrounds to live in this area.

Hate Crimes
Hate crimes are violent acts against people, property, or organizations because of the group to which they belong or identify. The Federal Fair Housing Act makes it illegal to threaten, harass, intimidate, or act violently toward a person who has exercised their right to free housing choice.

As shown in Table E-4, between 2015 and 2021, only two hate crimes were reported in Scotts Valley. The hate crimes reported were based on Race/Ethnicity/Ancestry and Sexual Orientation. The city has a rather low number of hate crimes compared to the local jurisdictions. Comparatively, Santa Cruz City and Watsonville reported a total of 52 and 8 hate crimes, respectively.

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Table E-4: FBI Hate Crimes by Bias (2015-2021)
Year
Race/
Ethnicity/
Ancestry
Religion Sexual
Orientation Disability Gender Identity
Multiple
Bias Total
2015 1 0 0 0 0 0 1
2016 0 0 0 0 0 0 0
2017 0 0 0 0 0 0 0
2018 0 0 1 0 0 0 1
2019 0 0 0 0 0 0 0
2020 0 0 0 0 0 0 0
2021 0 0 0 0 0 0 0
Total 1 0 1 0 0 0 0
Source: Federal Bureau of Investigation, Crime Data Explorer, 2015-2021.

Income
Household income level plays a significant role in housing choice. The City has experienced a relatively small increase in median income over the past decade. Census data reports a 2.1 percent increase in median income between 2010 and 2020, with the largest growth occurring in the last five years. In comparison, the County experienced a 37.9 percent increase, and the State experienced a 29.2 percent increase from 2010 to 2020 in median income.

Table E-5: Median Income by Year and Geography
Median Income
by Year City of Scotts Valley Santa Cruz County California 2020 $103,783 $89,986 $78,672
2015 $101,475 $67,256 $61,818
2010 $101,673 $65,253 $60,883
Percent Change 2.1% 37.9% 29.2%
Source: American Community Survey, 5-Year Estimates, 2010, 2015, 2020.

Regarding household income, the City had a higher median household income than the County and the State from 2010 to 2020. As Table E-6 shows, a large portion of the City’s households are higher earning; in total, over 51 percent of households in Scotts Valley earn more than the State median-income. Additionally, 23 percent of households in Scotts Valley earn $200,000 or more annually. Just under 22 percent of the City residents earn less than $50,000 annually, compared to 28.6 percent and 32.6 percent for the County and State, respectively.

Comparatively, Scotts Valley has the highest median income of the surrounding jurisdictions.

Behind Scott Valley, Santa Cruz County and the City of Santa Cruz have the second and third highest median income of the nearby jurisdictions by $89,986 and $86,618, respectively.

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Table E-6: Households by Median Income by Geography
Households Income City of Scotts Valley Santa Cruz County California Less than $10,000 5.6% 4.4% 4.7%
$10,000-$14,999 0.8% 3.6% 3.9%
$15,000-$24,999 4.0% 6.3% 6.9%
$25,000-$34,999 5.9% 5.5% 7.1%
$35,000-$49,999 5.7% 8.8% 10.0%
$50,000-$74,999 11.2% 12.8% 15.3%
$75,000-$99,999 15.6% 12.9% 12.3%
$100,000-$149,999 12.9% 16.9% 17.1%
$150,000-$199,999 15.2% 12.1% 9.4%
$200,000 or More 23.0% 16.8% 13.3%
Source: American Community Survey, 5-Year Estimates, 2020.

To calculate projected housing needs for extremely low-income (ELI) households, the City assumed 50 percent of its very low-income RHNA are ELI households. As the City was allocated 392 very low-income units, approximately 192 units are projected for ELI households. Some ELI households could face other housing challenges depending on the age of the householder, tenure status, or household characteristics (mental or physical disabilities, household size, language proficiency, etc.) that could exacerbate housing problems.

Figure E-5 shows the median income change from 2014 to 2019 for Scotts Valley and the surrounding region. In 2014, all block groups in the City had a median income range greater than $125,000. Median income has diversified in 2019 through Block Groups 1 and 3. Block Group 1/Census Tract 12082, located west of Whispering Pines Drive and south of Mount Hermon Road, had a median income of less than $125,000, while Block Group 3/Census Tract 1209, located west of Scotts Valley Drive, had a median income of less than $87,100. 2 Block groups are a subdivision of a census tract – it is the smallest geographic unit for which the Census Bureau tabulates sample data. Census tracts are a small subdivision of a county delineated by a local committee of census data users for the purpose of presenting data.

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Figure E-5: Median Income (2014-2019)
Source: California Department of Housing and Community Development – AFFH Data Viewer 2014
2019

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There is a significant concentration of high-income levels in areas of high concentration of White population. As shown in Figure E-3b, areas with higher percentage of white population are in areas with a higher median income. As Scotts Valley continues to diversify in its demographics, it is important to address any issues that may exacerbate conditions in these areas and areas of lower household income.

Disability
In 1988, Congress added protections against housing discrimination for persons with disabilities through the Federal Housing Administration (FHA), which protects against intentional discrimination and unjustified policies and practices with disproportionate effects. The FHA also includes the following unique provisions to persons with disabilities: (1) prohibits the denial of requests for reasonable accommodations for persons with disabilities, if necessary, to afford an individual equal opportunity to use and enjoy a dwelling; and (2) prohibits the denial of reasonable modification requests. With regards to fair housing, persons with disabilities have special housing needs because of the lack of accessible and affordable housing, and the higher health costs associated with their disability. In addition, many may be on fixed incomes that further limit their housing options.

Table E-6 displays the data for persons with disabilities in the City, County, and State. Overall, about 10.6 percent of the California population reported having at least one disability. In the City, about 12.6 percent of persons reported at least one disability. The City reported higher than the County at 11.5 percent. Of the 12.6 percent of Scotts Valley residents who reported a disability, the most common disabilities were ambulatory difficulties and independent living, which could be tied with the City’s senior population. Ease of reasonable accommodation procedures and opportunity for accessible housing can provide increased housing security for the population with disabilities.

Table E-6: Population by Disability Type, Compared by Geography, 2020 Disability City of Scotts Valley Santa Cruz County California Total with a Disability 12.6% 11.5% 10.6%
Hearing Difficulty 3.5% 3.4% 2.9%
Vision Difficulty 4.9% 2.4% 2.0%
Cognitive Difficulty 3.4% 4.9% 4.3%
Ambulatory Difficulty 6.3% 5.0% 5.8%
Self-care Difficulty 3.5% 2.3% 2.6%
Independent Living 6.2% 5.0% 5.5%
Source: American Community Survey, 5-Year Estimates, 2020.

The data in Figure E-6 below displays data for disability status in Scotts Valley by census tract.

The data shows that in the City, all three of the census tracts report 10 to 20 percent of the population to have at least one disability. This is consistent with the surrounding region.

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Figure E-6: Population with a Disability
Source: California Department of Housing and Community Development – AFFH Data Viewer

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Appendices A, C and D provide detailed descriptions of services and resources for persons with disabilities. Furthermore, new housing opportunities throughout the City are available to people with disabilities. This is facilitated through the Federal Fair Housing Amendment Act (FHAA) and the California Fair Employment and Housing Act which require governments to make reasonable accommodations in their zoning laws and other land use regulations to afford persons with disabilities an equal opportunity to housing. Scotts Valley’s Municipal Code includes Chapter 17.60 Requests for Reasonable Accommodation which complies with these legal requirements.

Overall, Scotts Valley has a slightly higher percentage of population with a disability than the State and County at 12.6 percent. Comparatively, the City of Santa Cruz had a lower percentage of 9.7 percent and Watsonville had a higher percentage of 12.9 percent. As shown in Figure E-6, there is no concentration of the population with a disability in the city. Although there is no significant concentration of the population to have at least one disability, it is the policy and practice of the City to take all reasonable steps to ensure its services, programs and activities are accessible to all members of the public including persons with disabilities.

Familial Status
Under the FHA, housing providers (e.g., landlords, property managers, real estate agents, or property owners) may not discriminate because of familial status. Familial status refers to the presence of at least one child under 18 years old, pregnant persons, or any person in the process of securing legal custody of a minor child (including adoptive or foster parents).

Examples of familial status discrimination include refusing to rent to families with children, evicting families once a child joins the family (through birth, adoption, or custody), enforcing overly restrictive rules regarding children’s use of common areas, requiring families with children to live on specific floors, buildings, or areas, charging additional rent, security deposit, or fees because a household has children, advertising a preference for households without children, and lying about unit availability.

Families with children often have special housing needs due to lower per capita income, the need for affordable childcare, the need for affordable housing, or the need for larger units with three or more bedrooms. Single parent households are also protected by fair housing law. Of particular consideration are female-headed households, who may experience greater housing affordability challenges due to typically lower household incomes compared to two-parent households. Often, sex and familial status intersect to compound the discrimination faced by single mothers.

Table E-7 displays household type for the State, County, and City. Overall, Scotts Valley has the largest percentage of married-couple households (55.4 percent) in comparison to the County and State. The City also has the largest percentage (49.2 percent) of households with at least one person over the age of 60. This trend has been largely consistent for the City of Scotts Valley for more than 20 years.

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Different household types have varying housing needs – senior households may benefit from reasonable accommodation procedures and being located near medical facilities, single-parent households may benefit from affordable housing options due to limited income, and family households may benefit from larger housing units located near community areas and schools.

Table E-7: Population by Familial Status by Geography
Familial Status City of Scotts Valley Santa Cruz County California Total Households 4,799 96,275 13,103,114
Married-Couple Family
Households 55.4% 48.1% 49.7%
With Children 17.5% 17.8% 17.8%
Non-Family Households 32.5% 36.8% 31.4%
Households with one or more
people 60 years+ 49.2% 44.3% 39.9%
Female Headed Households, No
Spouse Present with Children 5.5% 10.1% 12.9%
Source: American Community Survey, 5-Year Estimates, 2020.

Scotts Valley has a relatively diverse familial status. Comparatively, Scotts Valley has the lowest percentage of female headed households, no spouse present with Children compared to the surrounding jurisdictions such as the City of Santa Cruz and Watsonville (7.4 percent and 7.5 percent, respectively). The percentage of children in married-couple family households rank the second highest between the two cities. This population is located west of the Highway 17.

Scotts Valley has a high percentage of households with one or more people 60 years or older compared to the surrounding jurisdictions, which can be tied to Scotts Valley’s senior population.

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3. Access to Opportunities
Access to opportunity is a concept to approximate the link between place-based characteristics (e.g., education, employment, safety, and the environment) and critical life outcomes (e.g., health, wealth, and life expectancy). Ensuring access to opportunity means both improving the quality of life for residents of low-income communities, as well as supporting residents’ mobility and access to ‘high resource’ neighborhoods.

Mobility
Access to public transit is of paramount importance to households affected by low-incomes and rising housing prices, especially because lower income households are often transit dependent.

Public transit should strive to link lower income persons, who are often transit dependent, to major employers where job opportunities exist. Access to employment via public transportation can reduce welfare usage and increase housing mobility, which enables residents to locate housing outside of traditionally low-income neighborhoods.

Transportation opportunities are depicted by two indices: (1) the transit trips index and (2) the low transportation cost index. The transit trips index measures how often low-income families in a neighborhood use public transportation. The index ranges from 0 to 100, with higher values indicating a higher likelihood that residents in a neighborhood utilize public transit. The low transportation cost index measures cost of transportation and proximity to public transportation by neighborhood. It too varies from 0 to 100, and higher scores point to lower transportation costs in that neighborhood.

AllTransit explores metrics that reveal the social and economic impact of transit, specifically looking at connectivity, access to jobs, and frequency of service. According to the data shown in Table E-8 and Figure E-9, Scotts Valley scored a 4.4 AllTransit performance score, illustrating a low combination of trips per week and number of jobs accessible that enable a moderate number of people to take transit to work. In total, 29,207 jobs are accessible within a 30-minute trip from Scotts Valley, and 1.42 percent of commuters use transit. Additionally, AllTransit identified the following transit related statistics for Scotts Valley:
 45.1% of jobs in Scotts Valley are located within a half-mile of transit.  44.8% of low-income households (earning less than $50,000) live within a half-mile of transit.
 1.17% of workers who commute by walking live within a half-mile of transit.  0.34% of workers who commute by bicycle live within a half-mile of transit.

By comparison, Scotts Valley scored lower than neighboring jurisdictions of Watsonville (6.1) and Santa Cruz (7.0). Overall, Scotts Valley has a lower AllTransit score than the Santa Cruz County average (4.4 in Scotts Valley and 4.8 in the County).

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Table E-8: AllTransit Index
Jurisdiction
AllTransit
Performance
Score
Transit Trips
Per Week
within ½ Mile
Jobs Accessible
within 30-
minute trip
Commuters
Who Use
Transit
Transit Routes
within ½ Mile
Scotts Valley 4.4 1,147 29,207 1.42% 3
Santa Cruz County 4.8 1,269 33,599 2.99% 6
Source: AllTransit, Transit Scores. Accessed November 29, 2022.

Figure E-9: AllTransit Performance Score (2022)
Source: AllTransit Face Sheet, 2022.

Most of Scotts Valley has poor transit accessibility, but the areas with higher concentrations of all protected characteristics exhibit higher transportation scores in the City. Residents with protected characteristics may exhibit a disproportionate need for reliable public transportation.

It is important to increase access to transportation throughout Scotts Valley to improve access for all protected classes. There is a correlation between low transit scores area and areas with RCAAs, so it is important to prevent such concentration by allocating units in areas with higher access to transportation and economic opportunities. The candidate housing sites in Appendix F show they are dispersed throughout the community with an emphasis on locating units where there is a high level of access to public services and transit. The distribution of potential units provides increased opportunities for low-income housing in areas with higher rates of low transportation access.

Census Tract 1
The AllTransit Map identified Census Tract 1 as an area with higher connectivity, access to jobs, and frequency of service. The Santa Cruz Metro service serves Census Tract 1 with various bus routes and the Cavallaro Transit Center is located in the southern portion of this tract. Scotts

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Valley Drive bisects this area and connects to Highway 17, which connects the City to the County and the San Francisco Bay Area.

Census Tract 2
Census Tract 2 has lower connectivity, access to jobs, and frequency of services as identified in the AllTransit Map (Figure E-9). There are no identified transit routes in the area. Highway 17 is located on the western boundary of this area. This area offers less services as it is predominantly single-family neighborhoods. Hence, this area has the least number of units allocated; however, it does provide for some variety of housing options at varying costs. Census Tract 2 will continue to develop through planned residential rezoning as described in this Housing Element.

Census Tract 3
The AllTransit Map identified Census Tract 3 as an area with moderate connectivity, access to jobs, and frequency of service. Similar to Census Tract 2, the Santa Cruz Metro service serves this tract with bus routes and eight stops along Mount Hermon Road. This road forms the northern boundary of the tract and connects to Scotts Valley Drive and Highway 17.

Economic and Employment Opportunities
The TCAC/HCD Opportunity Maps illustrates opportunity levels based on the following five economic factors:
 Poverty – Percent of population with income above 200 percent of federal poverty line.
 Adult Education – Percent of adults with a bachelor's degree or above.  Employment – Percent of adults aged 20-64 who are employed in the civilian labor force or in the armed forces.
 Job Proximity – Number of jobs filled by workers with less than a Bachelor of Arts degree that fall within a given radius (determined by the typical commute distance of low-wage workers in each region) of each census tract population-weighted centroid.
 Median Home Value - Value of owner-occupied units.

Figure E-10 shows economic opportunity scores for Scotts Valley and the surrounding region.

Overall, the City has a more positive economic outcome rating of 0.75 to 1 compared to the surrounding region.

When comparing economic opportunity scores to proximity to jobs (Figure E-11), Scotts Valley residents generally live near employment opportunities. Scotts Valley residents that live closer to the City limit line have further proximity to jobs than those who live in the center. However, the economic opportunity score is positive for all census tracts in the City. Overall, Scotts Valley residents have moderate access to positive economic opportunities.

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Future housing development will increase economic opportunities for existing and future residents. The candidate sites inventory includes various strategies to meet the City’s RHNA targets including plans for mixed use development at higher densities for select sites along Scotts Valley Drive and Mount Hermon Road, and in the Town Center Specific Plan Area. The Cavallero Transit Center (Metro Parcel), also located in the Town Center Specific Plan Area, will continue to provide access to transit services such as the Highway 17 Express and other routes that provide access throughout Santa Cruz County. Additionally, the candidate sites inventory includes plans for residential development within a half mile of transit and job opportunities along Scotts Valley Drive and Mount Hermon Road.

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Figure E-10: Economic Opportunity Scores
Source: California Department of Housing and Community Development – AFFH Data Viewer

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Figure E-11: Jobs Proximity Index
Source: California Department of Housing and Community Development – AFFH Data Viewer

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Education Opportunities
The TCAC/HCD Opportunity Area Maps include education data, as illustrated in Figure E-12. This data represents opportunity levels based on the following four factors:
 Math proficiency – Percentage of fourth graders who meet or exceed math proficiency standards.
 Reading proficiency – Percentage of fourth graders who meet or exceed literacy standards.
 High school graduation rates – Percentage of high school cohort that graduated on time.
 Student poverty rate – Percentage of students not receiving free or reduced-price lunch.

Figure E-12 shows educational scores for the City and the surrounding region. As shown, the City scored the highest positive education outcomes. This is consistent with the surrounding region, as the surrounding region scored most positive to second most positive education outcomes. Overall, Scotts Valley provides good opportunities for education achievement and in return Scotts Valley residents show high educational achievements and successes in achieving college degrees. Overall, future housing developments within the City will benefit from access to high levels of resources, bringing additional opportunities for existing and future residents.

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Figure E-12: Education Opportunity Scores
Source: California Department of Housing and Community Development – AFFH Data Viewer

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Census Tract 1
Census Tract 1 has a total of three schools. The following schools located in this area are the Scotts Valley High School, Vine Hill Elementary School, and the Scotts Valley Middle School, School Technology Resources, Scotts Valley Unified School District, and Baymonte Preschool.

This area provides good opportunities for education. Hence, Census Tract 1 scored the highest positive education outcomes in the TCAC/HUD Opportunity Area Maps. Development will continue along Scotts Valley Drive through the various pipeline projects and mixed-use rezones.

These developments will be in close proximity to the existing and future stock of schools.

Census Tract 2
Census Tract 2 has a variety of schools located in this area. This includes the Montessori Scotts Valley, Circle of Friends Preschool, and Baymonte Christian School. These schools are located near existing residential and future development. Parcels in between the three schools have been identified as a candidate residential rezone site. In total, 54 new units are proposed in this area. In general, new housing opportunities throughout Census Tract 2 will have access to positive levels to economic opportunities.

Census Tract 3
Census Tract 3 has only one school in the area. The Coast Redwood Montessori is located along Mount Hermon Road. Development will continue along Mount Hermon Road through pipeline projects, mixed-use rezone, and existing residential capacity strategies. These developments will be in close proximity to this school and other schools in neighboring Census Tracts 1 and 2.

Actions under Program H-3.2 address RCAAs on a City-wide level. Actions include establishing specific incentives for the development of affordable units including, but not limited to, permit streamlining and reduced fees. In general, new housing opportunities throughout the City would have access to positive levels to economic opportunities.

Environmental Health
The California Office of Environmental Health Hazard Assessment (OEHHA) developed a screening methodology to help identify California communities disproportionately burdened by multiple sources of pollution, called the California Communities Environmental Health Screening Tool (CalEnviroScreen). In addition to environmental factors (pollutant exposure, groundwater threats, toxic sites, and hazardous materials exposure) and sensitive receptors (seniors, children, persons with asthma, and low birth weight infants), CalEnviroScreen also takes into consideration socioeconomic factors. These factors include educational attainment, linguistic isolation, poverty, and unemployment. Research has shown a heightened vulnerability of people of certain ethnicities and lower socioeconomic status to environmental pollutants.

The CalEnviroScreen 4.0 Model is made up of a suite of 20 statewide indicators of pollution burden and population characteristics associated with increased vulnerability to pollution’s health effects. The model uses the following analysis and calculation to identify areas of health risk:

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 Uses a weighted scoring system to derive average pollution burden and population characteristics scores for each census tract.
 Calculates a final CalEnviroScreen score for a given census tract relative to the other tracts by multiplying the pollution burden and population characteristics components together.
 Measures the relative pollution burdens and vulnerabilities in one census tract compared to others; the score is not a measure of health risk.

Figure E-12 displays mapped results of the CalEnviroScreen 4.0 for the City and surrounding region. The City has low levels of pollution burdens. As shown on Figure E-12, Census Tract 1 reports a higher pollution burden than the other two census tracts due to a higher number of vehicles along Scotts Valley Drive, Mount Hermon Road, and Highway 17, but is still considered a low CalEnviroScreen 4.0 score. Similarly, majority of the neighboring jurisdiction show low levels of pollution burdens, which are mountainous, and sparsely populated. In general, new housing opportunities throughout the City would have access to low levels of pollution burdens.

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Figure E-12: CalEnviroScreen 4.0
Source: California Department of Housing and Community Development – AFFH Data Viewer

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4. Disproportionate Housing Need and Displacement
The analysis of disproportionate housing needs within Scotts Valley evaluated existing housing need, need of the future housing population, and units within the community at-risk of converting to market-rate.

Disproportionate housing needs refer to disparities in cost burden, overcrowding, substandard housing, and displacement risk for special needs populations in comparison to the rest of the population. Housing needs are assessed by the HUD Comprehensive Housing Affordability Strategy (CHAS), based on ACS data. Housing problems and severe housing problems include the following elements:

Housing Problems
 Incomplete kitchen facilities
 Incomplete plumbing facilities
 1+ person per room
 Cost burden greater than 30
percent
Severe Housing Problems
 Incomplete kitchen facilities
 Incomplete plumbing facilities
 1.5+ person per room
 Cost burden greater than 50
percent
Overcrowding
Table E-9a displays data for household tenure (owner vs. Renter) for the State, County, and City of Scotts Valley. Homeownership is a crucial foundation for helping families with low incomes build strength, stability, and independence. The opportunity for transition into the homebuyer’s market is important for persons and households in different communities, homeownership allows for increased stability and opportunity to age in place. As shown in Table E-9a, Scotts Valley has a higher rate of homeownership compared to the County and State.

Table E-9a: Households by Tenure, Compared by Geography, 2020 Overcrowding and Tenure City of Scotts Valley Santa Cruz County State of California Owner Households 73% 60.3% 55.3%
Renter Households 27% 39.7% 44.7%
Total Occupied Housing Units 4,779 96,275 13,103,114
Source: American Community Survey, 5-Year Estimates, 2020 Additionally, Table E-9b displays data for overcrowding in the State, County, and City over time.

Overcrowding is defined as between 1.01 and 1.5 persons per room in a household, and severe overcrowding is defined as more than 1.51 persons per room. Overcrowding often occurs when nonfamily members combine incomes to live in one household, such as college students and roommates. Overcrowding also occurs when there are not enough size appropriate housing