Agenda packet — Scotts Valley City Council, December 20, 2023 (part 4 of 7)

Higher Rates of Physical Disabilities. People with developmental disabilities are more likely than the general population to have an accompanying physical disability. According to the Department of Developmental Services 26% of Santa Cruz County residents with developmental disabilities have limited mobility, 9% have a vision impairment and 4% have a hearing impairment. The need for an accessible unit coupled with the need for coordinated supportive services compounds the housing barriers faced by those with both cognitive and physical disabilities.

Ineligibility for Many Affordable Rental Units. Some adults with developmental disabilities depend on monthly income of around $1,000 from the Supplemental Security Income (SSI) program, pricing them out of many of the limited number of affordable housing units in the City of Scotts Valley. Those with employment tend to work part-time in the lowest paid jobs and also struggle to income-qualify for many of the affordable housing units now available for rent in the City of Scotts Valley.

Transit-Dependent. Most adults with developmental disabilities do not drive or own a car so rely on public transit as a means to integration in the larger community.

Best Practices for Inclusion of People with Developmental Disabilities in Typical Affordable Housing
As demonstrated by a growing number of inclusive affordable housing developments in neighboring jurisdictions, the City of Scotts Valley can meet the housing needs of people with developmental disabilities by adopting policies and programs to continue promoting their inclusion with coordinated services in typical affordable housing. The following considerations should guide the City of Scotts Valley in this pursuit:
● Integration in typical affordable housing is a priority in order to Affirmatively Further Fair Housing for a group that has historically experienced no alternatives to segregated living and also to counter the displacement of adults with developmental disabilities out of the City of Scotts Valley.
● Coordination of housing with onsite supportive services funded by the San Andreas Regional Center should be encouraged. These fully funded coordinated services provide a supported pathway for people with developmental disabilities to apply for and retain an affordable apartment and are often as essential to a person with a developmental disability as a physically modified unit is to a person with a mobility, vision, or hearing impairment. ● A mix of unit sizes at inclusive housing properties would address the needs of those who require live-in aides, want to live with roommates or partners, or have children. ● Location of housing near public transit would accommodate the transit-dependency of most adults with developmental disabilities.
● Deeply affordable housing is needed by people with developmental disabilities. Per HCD guidance, the City of Scotts Valley should plan for at least 196 Extremely Low Income (ELI) units, or 50% of its Very Low Income RNHA allocation. ELI units are particularly important to people with developmental disabilities, and some of the City’s planned production of ELI units should be subject to a preference for people with developmental disabilities. 5

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Policy and Program Recommendations
The City of Scotts Valley has a responsibility not simply to assess the housing needs of people with developmental disabilities but also to create and implement policy, zoning, program and other changes that make it more feasible for affordable housing developers to include people with developmental disabilities in their housing plans. In order to meet the increasing needs of the City’s population of adults with developmental disabilities, policies and programs that explicitly promote inclusion of people with developmental disabilities in affordable housing with coordinated services provided by the San Andreas Regional Center are needed. Below are examples of programs and policies which can help to incentivize the development of more deeply affordable, inclusive housing in order to prevent homelessness or displacement of these vulnerable residents as well as to provide opportunities for people with developmental disabilities to live in the least restrictive setting of their choosing. ● Affirmatively Further Fair Housing by Producing More Extremely Low-Income Housing. Not only is disability the highest-ranked source of Fair Housing complaints in Santa Cruz County, a growing body of Santa Cruz County data indicates that Black, Indigenous and other People of Color (BIPOC) with disabilities experience higher rates of severe rent burden than either BIPOC without disabilities or whites with disabilities. Such disparities in the experience of severe rent burden, housing instability and displacement from the City of Scotts Valley are attributable to the shortage of housing priced to be affordable to Extremely Low Income (ELI) households with incomes below 30% of Area Median Income. Multiple barriers including high land and construction costs and limited funding make it difficult for developers to produce Extremely Low Income units that would help to reduce such disparities. Local zoning and other policies that lead to increased production of Extremely Low Income units, as well as city staff dedicated to implementing and overseeing those policies, will Affirmatively Further Fair Housing in the City of Scotts Valley and decrease displacement and homelessness for the most at-risk residents, including people with developmental disabilities.

Sample Language: The City of Scotts Valley’s plans to Affirmatively Further Fair Housing for Black, Indigenous and other People of Color, particularly those with disabilities, shall include policies designed to increase the production of Extremely Low Income units, as well as adequate staff capacity to implement and monitor the impact of these policies. ● Establish and monitor a quantitative goal. Tracking the City’s success in housing people with developmental disabilities is essential to determine whether policies and programs are having an effect in overcoming historic patterns of discrimination and exclusion of people with developmental disabilities from affordable housing. A goal of 20 new Extremely Low-Income housing units for City of Scotts Valley residents with developmental disabilities over the period of the 2023-2031 Housing Element would represent meaningful progress towards the total unmet housing need of this special needs group.

Sample Language: The City of Scotts Valley shall monitor progress towards a quantitative goal of 20 new Extremely Low Income housing units that are subject to a preference for people with 6

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developmental disabilities needing the coordinated services provided by San Andreas Regional Center to live inclusively in affordable housing.
● Target City-Owned Land, Land Dedicated to Affordable Housing and City Housing Funds to Achieve City-Specific Priorities. City-owned land, land dedicated to affordable housing development through a land trust or under an inclusionary housing ordinance, and city housing funds are often essential to the development of affordable housing that is financially feasible. In creating guidelines for the scoring of any competitive proposals for these scarce resources, the City should grant additional points to affordable housing projects that address the housing needs of the residents who are most difficult to house under existing state and federal housing finance programs--for example, by prioritizing proposals with a higher number of Extremely Low Income units or that make a percentage of units subject to a preference for identified categories of special needs people who would benefit from coordinated onsite services, including but not limited to people with developmental disabilities who benefit from services of the San Andreas Regional Center. Example: City of San Jose Housing Department NOFA; San Mateo County Affordable Housing Fund NOFA
Sample Language: In publishing requests for competitive proposals for any city-owned land, land dedicated to affordable housing or city housing funds, the City of Scotts Valley shall grant additional points to proposals that address the city’s most difficult to achieve housing priorities, by, for example, providing a greater number of Extremely Low-Income units or committing to make a percentage of the units subject to a preference for people with special needs who will benefit from coordinated onsite services, such as people with developmental disabilities who receive services from the San Andreas Regional Center.
● Amend Density Bonus Program. Like many state and federal housing finance programs, the state density bonus program incentivizes the production of housing at the Low and Very Low Income level. But in counties like Santa Cruz County, with one of the highest Area Median Incomes in the state, these incentives have the effect of making much of the available affordable housing out of reach for residents on fixed incomes (including seniors and persons with disabilities) or who are working in low wage jobs and are thus unable to meet minimum income requirements to afford the rent assigned to the Very Low Income category. The City of Scotts Valley should update its density bonus program to conform with current state density bonus law which has increased the maximum density bonus allowed. In addition, the city should include in its updated density bonus program incentives which go above and beyond the state density bonus law to make it more responsive to the impact of Santa Cruz County’s high Area Median Income on the affordability of housing for Scotts Valley residents who are Extremely Low Income. The city should also include additional incentives for projects that make a percentage of units subject to a preference for identified categories of special needs populations who experience the greatest barriers to housing access including but not limited to people with developmental disabilities who benefit from services of the Golden Gate Regional Center. 7

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Sample Language: In addition to implementing the California density bonus statute, the City shall provide an additional local density bonus, incentives, and/or concessions for housing projects that include at least 5% of the units for people at the Extremely Low-Income affordability level or commit to make a percentage of the units subject to a preference for people with special needs who will benefit from coordinated onsite services, such as people with developmental disabilities who receive services from the Golden Gate Regional Center. ● Amend Inclusionary Housing Ordinance to Apply Restrictions to Rental Housing. California law (AB 1505, the “Palmer Fix”) explicitly allows cities to adopt inclusionary housing ordinances that address a range of income levels from moderate-income to extremely low-income. The City should take advantage of this authority to make its ordinance more responsive to local needs by offering developers of rental housing a menu of options for including affordable units, for example, by setting a higher percentage of units priced for moderate income and a lower percentage of units priced for extremely low income or targeted to special needs populations.

Such a menu would address a broader range of the City of Scotts Valley’s housing needs, while giving developers more options for meeting the inclusionary requirement. Example: San Mateo County Inclusionary Affordable Housing Ordinance; Redwood City Affordable Housing Ordinance Sample Language: The City of Scotts Valley shall revise its inclusionary housing ordinance to require developers of rental housing units to restrict some units to moderate, low, very low, and/or extremely low-income households. In addition developers will be offered a menu of options for achieving affordability, adjusting the percentage of units required to be affordable depending on the degree of affordability achieved (moderate-income, low income, very low income, and extremely low income) or special needs groups targeted, including, for example, people with developmental disabilities who will benefit from coordinated onsite services provided by the San Andreas Regional Center.
● Extremely Low-Income Accessory Dwelling Units. As part of a larger plan to increase the supply of Accessory Dwelling Units (ADUs), the City should consider creating a financing program for homeowners who build ADUs and rent them for at least 15 years at Extremely Low Income rent levels or that are subject to a preference for identified categories of special needs people who would benefit from coordinated onsite services, including but not limited to people with developmental disabilities who benefit from services of the San Andreas Regional Center.

Example: Portland System Development Charge Exemptions; LA Backyard Homes Project Sample Language: Subject to funding availability, the City shall devise a program of financing for Accessory Dwelling Units subject to rent restrictions for at least 15 years at Extremely Low-Income rent levels and/or that target special needs populations, such as people with developmental disabilities who will benefit from coordinated services provided by the San Andreas Regional Center.
● Reduce Parking Requirements for People with Developmental and Other Disabilities. Because most adults with developmental disabilities do not drive or own a car, the City should revise its 8

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ordinances to limit parking required for affordable units for people with developmental disabilities to 0.5 space for each affordable studio or 1 bedroom unit and 1 space for an affordable 2 bedroom unit or larger. A similar reduction is recommended for affordable, physically accessible units. Example: Sunnyvale Parking Requirements for Special Housing Developments
Sample Language: The City of Scotts Valley shall encourage the inclusion of people with developmental and other disabilities in affordable housing by recognizing their transit dependence and establishing lower parking ratios for units targeted to people with developmental and other disabilities than would otherwise be required for affordable housing. ● Affirmative Marketing of Physically Accessible Units: Developers are allowed to affirmatively market accessible units to disability-serving organizations in Santa Cruz County (i.e. San Andreas Regional Center, Housing Choices Coalition for Persons with Developmental Disabilities, Central Coast Center for Independent Living and others) but rarely take this step. Affirmative marketing is particularly needed by people with developmental disabilities who, because of cognitive, communication and social impairment, often rely on housing navigation services funded by the San Andreas Regional Center to learn about and apply for affordable housing.

Sample Language: As a condition of the disposition of any city-owned land, the award of city financing, any density bonus concessions, or land use exceptions or waivers for any affordable housing project, the City of Scotts Valley shall require that the housing developer implement an affirmative marketing plan for state-mandated physically accessible units which, among other measures, provides disability-serving organizations adequate prior notice of the availability of the accessible units and a process for supporting people with qualifying disabilities to apply. 9

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September 1, 2023
To: Clare Blackwell, Housing Policy Analyst, HCD
CC: Sarah Wikle, Senior Planner, Scotts Valley
RE: Scotts Valley Submitted Housing Element (July 2023) Santa Cruz YIMBY advocates for abundant housing at all levels of affordability to meet the needs of a growing population in Santa Cruz County. We support sustainable growth, including along transportation corridors and activity centers and a commitment to lower Vehicle Miles Traveled by housing people near services and jobs.

The following are our comments on the City of Scotts Valley’s submitted Housing Element of July 5, 2023.

Justification and Analysis of Low Income Targets
“The City of Scotts Valley has facilitated the building of market rate housing in recent years, but has made little effort to develop housing for low income workers.” 1 Scotts Valley is expecting that all sites identified for rezoning 2 will develop roughly
50% of their units for very-low, low, or moderate income families, while providing little to no evidence (historic or otherwise) that this level of affordability will be realistically produced. The city’s four pipeline projects consist of only 18% affordable units. We would like the city to explain why it expects to achieve this 50% target.

Most of the parcels in the Site Inventory under Rezones-Mixed Use are non-vacant, as is the largest one in the Town Center Specific Plan. The City has not described the realistic development potential of each site, including, as HCD recommends, “...the extent that the nonvacant site’s existing use impedes additional residential development, the jurisdiction's past experience converting existing uses to higher density residential development, market trends and conditions, and regulatory or 2 Housing Element, F24-26
1 Santa Cruz Civil Grand Jury - Housing Our Workers, page 18, Finding 9 Santa Cruz YIMBY Response to Scotts Valley Housing Element (July 2023) Page 1 of 6

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other incentives or standards that encourage additional housing development on the nonvacant sites.”
3 This is compounded by the fact that these sites (Rezones-Mixed Use and the Town Center Specific Plan parcel) account for more than 50% of the lower income RHNA, so ” …the existing use is presumed to impede additional residential development, unless the housing element describes findings based on substantial evidence that the use will likely be discontinued during the planning period.” 4 The city has not
provided such findings aside from noting surface soil contamination in the process of remediation at the town center site.

If the city misses its target of 50% affordability on even just a few parcels (especially its larger sites), it faces the daunting task of identifying other sites to make up the difference under No Net Loss law. Additionally, there is only a 9% buffer for moderate income units, HCD recommends a buffer of between 15 and 30 percent 5 .

In order for Scotts Valley to meet the needs of its most vulnerable residents, it is essential that plans for affordable housing not only sound good, but are workable and realistic.

Pipeline Projects
A significant source of new units for the city during the 6th cycle will be from pipeline projects. For jurisdictions relying heavily on pipeline projects, HCD recommends
6 that “…the element should include programs with actions that commit to facilitating development and monitoring approvals of the projects, including the number of units and affordability (e.g., coordination with applicants to approve remaining entitlements, supporting funding applications, expediting approvals and monitoring of project progress, including rezoning or identification of additional sites, if necessary).”
In order to meet this recommendation by HCD, the city should create specific programs to monitor the progress of pipeline projects. This could include automatic entitlement extensions until midway through the 6th cycle and proactively reaching out to all pipeline project developers to confirm that there is still development interest.
6 City of Brisbane’s 6th Cycle (2023-2031) Draft Housing Element, page 3 5 Housing Element Sites Inventory Guidebook, page 22
4 Housing Element Sites Inventory Guidebook, Page 27
3 Housing Element Sites Inventory Guidebook, Page 24
Santa Cruz YIMBY Response to Scotts Valley Housing Element (July 2023) Page 2 of 6

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Town Center
One of the largest projects projected for Scotts Valley’s 6th cycle will be further development of the Town Center Specific Plan, encompassing 58 acres in the heart of the city. This area is well situated to accommodate a significant amount of housing and associated amenities. While we are pleased that the city anticipates 657 units to be built on these sites we would like to see more in the housing element to indicate that the city is determined to see this housing come to fruition.

This plan has been in the works since at least 2008
7 and has not seen a significant
amount of the proposed housing be built in that time. According to the city, “...project applications have been submitted for the Plan, but development was not successful. Interest in developing the Town Center area has increased over recent years.”
8 The city also notes that “surface soil contamination has been an obstacle to development.” The City should include a program to ensure that the soil contamination remediation will be completed successfully and that the site will be developable after.

With nearly half of its very-low and low income units planned for through the Town Center Specific Plan, this single project not producing as many units as expected would subject the city to the No Net Loss law. It is imperative that the city demonstrate that these sites are appropriate to accommodate lower income RHNA.

Additionally, we would like the city to provide more detail on the affordability and development potential projections for the Kings Village parcel 9 as part of the Town
Center plan. While the other four parcels in this plan are publicly owned (by METRO or the city) this shopping center is privately owned. The city claims that this parcel will produce a 50% affordable project with 383 total units - almost 18% of the City’s RHNA. The only evidence cited is that “the City is currently reviewing two projects on sites that are over 10 acres.”
10 These two projects are on vacant land and have a 15% affordability component, whereas the Kings Village parcel is currently occupied by numerous commercial tenants and is projected to have a 50% affordability component. Without further evidence from the City to the contrary, it is hard to accept the cited pipeline projects as development interest in an occupied parcel’s conversion to 50% affordable housing.
10 Housing Element, F-22
9 Parcel #022-601-18
8 Housing Element, F-13
7 Scotts Valley Town Center Specific Plan EIR
Santa Cruz YIMBY Response to Scotts Valley Housing Element (July 2023) Page 3 of 6

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Goal H-1 - Housing Production
With the city’s RHNA increasing nearly tenfold from the 5th cycle, we see significant need for policies and programs which enable, not restrict, development. The city has correctly identified significant commercial and parking requirements as barriers to development but does not go far enough to remove these constraints. We strongly disagree with the assertion that “...the City’s standards for lot size, setbacks, height, and site coverage are not considered [constraints]..”
11 To ensure the city makes appropriate progress towards its 6th cycle goals we would like to see a commitment in Program H-1.1 to a mid-cycle review or circuit-breaker language for progress beyond only ADUs (~3% of RHNA). Tying this to programs developed now would allow the city to quickly make up lost ground and minimize impacts of falling behind in the 6th cycle. Additional mid-cycle programs could include:
● Ministerial approval process for all site inventory projects ● SB10 upzoning of small sites to 10 units per parcel
● Automatic entitlement extensions for pipeline projects ● Tracking commercial occupancy, and if vacancy is too high, relaxing commercial requirements in favor of more residential, including live/work units
As mentioned, the city has accurately identified its limit of 50% residential in mixed-use developments to be a constraint and is rezoning select parcels along main corridors to increase this cap to 70%.
12 Based on feedback the city received from
local planning consultants and Scotts Valley property owners interested in development, this reduction still does not allow for development. 13 In Program H-1.7,
we would like to see the city commit to adopting a further reduction in residential square footage in mixed-use developments. This should occur if the proposed rezoning does not result in developer interest as evidenced within the first year by at least one formally submitted project application with a total unit count that meets or exceeds the units expected in the site inventory for the given site at all income levels.

With regards to parking, the city should go much further in reducing or even eliminating such requirements. Currently, Program H-1.6 does not commit to lowering parking requirements and has a timeframe of 2027. We would like to see this timeline moved up and a commitment to lowering requirements to no more than a space per unit, uncovered.
13 Ibid, Appendix G, Letters from Civil Consultants Group, Charles Eadie, and David Duquette 12 Ibid, F-19
11 Housing Element, C-25
Santa Cruz YIMBY Response to Scotts Valley Housing Element (July 2023) Page 4 of 6

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There are other constraints that we believe the city should address to ensure that housing can be built as well.

In Program H-1.6, H-1.7, and H-1.8 the city should better explore to what extent its density restrictions are a constraint to development, especially of affordable housing.

With the city’s highest density residential zoning district capped at 20 du/acre, this is likely a significant barrier. We recommend the city expand its rezoning efforts to all ‘Very High Residential’ parcels at a minimum and allow up to 40 du/acre on such parcels. We recommend a higher base density than 40 du/acre for Mixed-Use parcels along transit corridors. These programs should also occur sooner than 2027, nearly halfway through the 6th cycle.

We expect projects to make use of State Density Bonus law for feasibility of development of affordable housing. Currently, Scotts Valley zoning code includes constraints and limitations that could limit affordable multifamily or mixed-use housing from achieving assumed base densities. These include but are not limited to building height, FAR, and parking requirements. Program H-1.7 should also include a “comprehensive study” on Mixed-Use development standards as constraints, as they are a different portion of the current zoning code.

Program H-1.8 should include undertaking a study to ensure expansion of this policy will enable development of additional housing, not chill it. This could take the form of a study similar to Capitola’s 2021 affordable housing fee assessment. 14 Creation of missing middle housing isn’t mentioned within the policy plan. Under Goal H-1, the City of Scotts Valley should seek to allow a wide variety of housing types including duplexes, triplexes, fourplexes and other multifamily project types throughout the City. Much of this could be achieved without an EIR thanks to Senate Bill 10
15 . This would be a significant addition to Program H-3.2. We recommend that the city develop objective standards for multi-family projects - this would fit into Program H-2.7 for SB35 streamlining.

Program H-2.6 and H-2.8 lack active language and do not commit the City to any changes which would enable large lot development or lot consolidation. These programs should be more specific and commit to specific actions as outlined in the description of each. There are a number of sites on the inventory which fall outside of the parcel size requirements for lower income housing set forth by AB 1397. 16 In
addition, the City has not included a sufficient analysis of these parcels. Despite this, all of these parcels are projected to provide lower income housing. 16 Housing Element Sites Inventory Guidebook, Page 16-17 15 SB 10 - California YIMBY
14 Capitola Affordable Housing Study 2021
Santa Cruz YIMBY Response to Scotts Valley Housing Element (July 2023) Page 5 of 6

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Transit Oriented Development
Despite being home to the Cavallaro Transit Center (CTC), Scotts Valley lacks any current or planned high quality transit stops. In the 2040 MTP/SCS 17 the CTC was
identified as such a site, however, it was subsequently removed in the 2045

MTP/SCS
18 . We encourage the city to commit to working with AMBAG in the 2050 MTP/SCS (scheduled for June 2026) to designate the CTC as a planned high quality major transit stop. This designation would incentivise more sustainable, affordable, and equitable development in an area identified for a significant amount of new housing in the 6th RHNA cycle.

Scotts Valley is currently not a pedestrian and bike friendly community. The transit center is a key connector for jobs and opportunities for low income people that do not own cars. Further investment in housing around transit stops has been shown to increase ridership on public transit. Denser housing and investments in walking and biking infrastructure between the Valley Gardens, Town Center, and the CTC could together make great strides in helping Scotts Valley achieve its housing, climate, and safety goals while also making it easier for people of all ages, abilities, and incomes to access the city.

Scotts Valley includes no programs to promote development near transit.

Tenant Protections
As a city with a growing percentage of renters, it is important to have strong tenant protections. There are a number of programs we would like to see implemented or expanded in the city to protect tenants:
● Elimination of or cap on rental application fees
● Creation of a rental registry. This was recently passed by both Salinas 19 and
Monterey
20 ● Local preference for people employed in the county ● COPA
21 and TOPA22 programs
● Conduct a disparate impact analysis of non-high(est) resource areas 23 and
apply a live-work preference if if it matches county demographics 23 2023 CTCAC HCD Opportunity Map
22 EBCLC's Tenant Opportunity to Purchase Act (TOPA) - East Bay Community Law Center 21 Community Opportunity to Purchase Act (COPA) | San Francisco 20 Monterey City Council moves ahead with rental registry 19 Salinas passes rental registry
18 AMBAG 2045 Metropolitan Transportation Plan
17 AMBAG 2040 Metropolitan Transportation Plan
Santa Cruz YIMBY Response to Scotts Valley Housing Element (July 2023) Page 6 of 6

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1 Galmiche, Ines
From: David Kellogg <[email protected]>
Sent: Friday, November 18, 2022 6:23 PM
To: Housing Elements@HCD
Subject: Public Comment on Housing Element
Nov 18, 2022
On behalf of David Kellogg (a Contra Costa County resident), 350 Contra Costa, Greenbelt Alliance, CaRLA, Scott O’Neil (a resident of Palo Alto), Watson Ladd (a resident of Berkeley), Marven Normal (a resident of San Bernadino), Dara Dadachanji (a resident of San Francisco), and George Grohwin (a resident of San Francisco), we provide the following comment on the Housing Element from SCOTTS VALLEY.

Issue
 The Housing Element from SCOTTS VALLEY fails to adequately analyze compliance with one of the state’s fundamental streamlining laws.
 Under PRC 21080.1 & 21080.2, a lead agency must determine if a housing development is exempt from CEQA within 30 days of completeness, or if an EIR or other CEQA document will be required.  For CEQA-exempt housing, this CEQA determination then triggers a 60-day approval clock (with deemed approved remedies) under the Permit Streamlining Act. Thus, if state housing laws were followed, CEQA-exempt housing projects should generally receive approvals in about 120 days.

1. 30 days to determine completeness

2. 30 days for CEQA review

3. 60 days for approval.
 SCOTTS VALLEY does not appear to issue determinations of CEQA-exemption within 30 days of completeness. As a result, builders and the public are denied the right to the timely approval of housing. Additionally, the builders are forced into an unreasonable bargaining position, as they lack the “deemed approved” options they should have. This improperly empowers jurisdictions to treat builders arbitrarily in the entitlement process.
 Moreover, SCOTTS VALLEY has no apparent good-faith basis for delaying CEQA-exemption determinations beyond the allowance of Public Resources Code 21080.1 & 21080.2. In the vast majority of instances, these exemptions are uncontested and straightforward.

Recommendation
 The Housing Element from SCOTTS VALLEY should include an analysis of compliance in its approval process with PRC 21080.1 & 21080.2.
 The Housing Element from SCOTTS VALLEY should add a program to specify (i) who is responsible for making the CEQA determination of PRC 21080.1, specify (ii) that their decision will be made within the timeframe permitted by PRC 21080.2, and specify that (iii), when they determine a project is exempt

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2 from CEQA, their determination triggers the Permit Streamlining Act (PSA) 60-day deadline (Gov. Code 65950(a)(5)). If existing local practices or regulations are incompatible with these state laws, the program should commit to enacting reforms necessary to achieve compliance within a reasonable and definite timeline.

HCD Technical Assistance Letter
 The CEQA issues mentioned herein are discussed in the June 3, 2022 Technical Assistance letter sent to Berkeley by Shannan West, Housing Accountability Unit Chief (copy included below).  In the letter, HCD notes that Berkeley had been issuing “recommendations” of CEQA-exemption and that the actual “determinations” were made more than 30 days beyond the completeness date. HCD notes that such practice was in violation of PRC 21080.1 & 21080.2 and “may act as a governmental constraint on housing.”

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500 Chestnut Street, Suite 100 Santa Cruz, CA 95060 (831) 459-9992 Fax (831) 459-9998 www.swiftconsultingservice.com
Swift Consulting Services
9/18/2023
Sarah Wikle
City of Scotts Valley Planning Dept.

Sarah Wikle <[email protected]>
RE: 4850 Scotts Valley Drive-Potential Candidate Site for Housing Element The property at 4850 Scotts Valley Drive , APN 022-091-12 is an appropriate site to be included in the list of Candidate Sites for Mixed Use Development in the 6th Cycle Housing Element.

The property owners are interested in pursuing a mixed use commercial/residential redevelopment of this 39,209 S.F.; .9acre parcel. Currently the property is zoned C-2, Service Commercial. There is a small retail convenience/liquor store located at the front of the property along Scotts Valley Drive. The majority of the property , roughly 80% or 32,000 SF is located behind the existing commercial use and has been largely vacant or used for marginal outdoor storage for decades.

A portion of the rear of the property is within the flood plain. Residential units could be elevated above the flood plain by designing parking and storage at grade with housing above. The property is 100’ wide. This is sufficient width to provide access to a residential project in the rear of the property while maintaining a viable commercial use along the Scotts Valley Drive frontage. Additional access options to the rear of the property from Carbonero Way may be possible through the adjacent properties to the east and/or south which also appear to be underdeveloped .

There is a realistic potential for 30 or more residential units on this property in addition to maintaining a viable commercial use along Scotts Valey Drive. The land value of this property exceeds the current improvement/development value of the property. The property has excellent access to transportation and community resources. The owners of the property are interested and motivated to make a productive use of this land which has been underutilized for many years.

Please consider incorporating this property in the list of Potential Candidate Sites for mixed use development in the 6th Cycle Housing Element,
John Swift

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1 Galmiche, Ines
From: Galmiche, Ines
Sent: Thursday, October 5, 2023 10:54 AM
To: Galmiche, Ines
Subject: FW: 6th cycle element redline comments
From: Corbett Wright <[email protected]>
Sent: Sunday, September 17, 2023 1:23 PM
To: Sarah Wikle <[email protected]>
Cc: Taylor Bateman <[email protected]>; Mali LaGoe <[email protected]> Subject: 6th cycle element redline comments

[EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe.

Please convey the following to council for consideration.

Section H 1.10
The requirement states 25% minimum lower income households. This seems to be inconsistent with statement as to minimum 300 bmr on a gross development total.

Is the city anticipating 1,200 units on the town center parcels? 300 min bmr / 25% bmr = 1,200 gross du Please consider amending to 20% of gross units.

Additionally, it states that the requirement will be to enter into and agreement to build 300 below market rate units.

Please consider amending to 20% of the total units and provide the city discretion with the total mix of affordable vs market rate for the orderly economic development of the town center specific plan.

Corbett Wright
174 West Cliff Drive
Santa Cruz, CA 95060
1(408)205-7998
Sent from my iPhone. Please disregard typos.

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1 Galmiche, Ines
From: Galmiche, Ines
Sent: Monday, October 16, 2023 12:48 PM
To: Galmiche, Ines
Subject: FW: Housing element - Public Comment
From: David Duquette <[email protected]>
Sent: Monday, October 16, 2023 10:58 AM
To: Sarah Wikle <[email protected]>
Subject: Housing element
[EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe.

Hi Sarah,
Not that anyone will listen but I will reiterate what I have said all along. I have real concern and disapproval of the 30% requirement for commercial space on Scotts Valley Drive. With the expected larger footprint that 40 units per acre is going to bring, 30% is just not workable. Given all the existing vacant commercial/retail space up and down Scotts Valley drive, more space is not only unprofitable but not needed. I have been at every meeting regarding this Housing element and I did not hear one comment from the public or any official that did not support relaxing the commercial requirement in order to promote housing. I don't know why the city is still pushing for such a large commercial requirement. Lastly, relaxing the parking requirement is no help. Whether we like it or not, Scotts Valley is a mountain town that requires a large number of its residents to commute. Not requiring enough parking is going to only hurt the surrounding neighborhoods and jeopardize the success of any housing project. This is only magnified by the push for a larger amount of low income housing. Lower income households have a disproportionate larger number of cars. Lower income households typically have a larger number of working adults that require more cars to get to work and or school.

I personally own a low income apartment and I say this from experience. Lowering the parking requirement will only result in a failed project.

Dave Duquette

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500 Chestnut Street, Suite 100 Santa Cruz, CA 95060 (831) 459-9992 Fax (831) 459-9998 www.swiftconsultingservice.com
Swift Consulting Services

October 16, 2023
Sarah Wikle
City of Scotts Valley Planning Dept.

Sarah Wikle <[email protected]>
RE: 4850 Scotts Valley Drive-Potential Candidate Site for Housing Element This letter is a follow up to my previous letter dated Sept 18,2023 regarding the property at 4850 Scotts Valley Drive , APN 022-091-12. This property is an appropriate site to be included in the list of Candidate Sites for Mixed Use Development in the 6th Cycle Housing Element.

In the City’s draft response to the HCD Oct. 3, 2023 comment letter , City staff describes the redevelopment factors that are considered in the selection of candidate sites as follows:

1. Land value is greater than the improvement value. 77 percent of non-vacant sites have land values that exceed the improvement values.

2. Existing structure was built prior to 1990 (it was built over 30 years ago). 95 percent of non-vacant sites have structures built at least 30 years ago, with the majority being well over 30 years.

3. Existing uses do not include housing units . 51 percent of non-vacant sites have no existing units.

4. City-owned. 5 percent of non-vacant sites are City-owned.

5. Development interest from a housing developer and/or property owner. 9 percent of non-vacant sites have stated developer or property owner interest.

All but four of 43 total parcels have at least two identified redevelopment factors and 17 have at least three.

The subject property at 4850 Scotts Valley Drive complies with 4 out of 5 of these factors. It is not a City owned property.

Interestingly only 9% of the candidate sites have owners that have indicated their interest in pursuing redevelopment of the property.

The owners of this property have clearly expressed their interest in redeveloping this property.

The land value clearly exceeds the improvement value.

The existing structure was built prior to 1990.

The existing uses do not include housing.

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500 Chestnut Street, Suite 100 Santa Cruz, CA 95060 (831) 459-9992 Fax (831) 459-9998 www.swiftconsultingservice.com
My understanding of the proposed Mixed-Use policies is that only Candidate sites will be eligible for the 70/30 mix of residential uses to commercial uses. If a property in the C-S zone, subsequent to the adoption of the General Plan/Housing Element, is proposed to be developed with a mixed-use project it will be subject to the City’s current ratio of 50/50. Clearly this requirement is a disincentive for the redevelopment of these properties. The market realities of commercial uses will continue to make mixed use projects that are not designated as candidate sites unfeasible.

There is no guarantee that candidate sites will be proposed for redevelopment. There are many complicated factors, such as taxes, estate issues, interest rates, etc. that can influence a property owner’s decision to move forward with redevelopment. The property owners of 4850 Scotts Valley Drive are prepared to move forward with a mixed-use project that is expected to yield 30 or more housing units.

Such a project could maintain the commercial use or allow for a modernization of the commercial structure that currently exists at the property frontage of Scotts Valley Drive.

This property is over 140’ removed from the commercial/industrial uses located to the south along El Pueblo Drive and is separated by a creek and a City Water District owned parcel of land. The presence of these industrial uses is not a realistic constraint to the redevelopment of this property with residential uses.

This property has excellent access to transportation and community resources. The owners of the property are interested and motivated to make productive use of this land which has been underutilized for many years. Please consider incorporating this property in the list of Potential Candidate Sites for mixed use development in the 6th Cycle Housing Element, John Swift
Attachment: Sept. 18, 2023 letter to Sarah Winkle

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Please consider incorporating this property in the list of Potential Candidate Sites for mixed use development in the 6th Cycle Housing Element,
John Swift

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November 21, 2023
To: Clare Blackwell, Housing Policy Analyst, HCD
CC: Taylor Bateman, Director, Community Development Department Sarah Wikle, Senior Planner
RE: Scotts Valley Submitted Housing Element (October 20, 2023) Santa Cruz YIMBY advocates for abundant housing at all levels of affordability to meet the needs of a growing population in Santa Cruz County. We support sustainable growth, including along transportation corridors and activity centers and a commitment to lower Vehicle Miles Traveled by housing people near services and jobs.

The following are our comments on the City of Scotts Valley’s submitted Housing Element of October 20, 2023 as they relate to HCD’s letter dated October 3, 2023 AFFH - General
HCD comment: Contributing Factors: The element identifies two contributing factors to fair housing issues. However, these issues and goals do not appear to be rooted in the AFFH analysis and do not appear adequate to facilitate the formulation of meaningful action to AFFH. The element should re-assess contributing factors upon completion of analysis and make revisions as appropriate Scotts Valley added more factors on Page E-53 and more analysis on E-57+. Without substantial changes to their site inventory or rezoning, Scotts Valley perpetuates segregation and exclusivity. In particular, they are not addressing housing mobility including in their Racially Concentrated Areas of Affluence.

AFFH - Census Tract 1
HCD comment: Identified Sites and AFFH: The element analyzed the identified sites for various fair housing components including access to opportunity and segregation and integration of income.

However, the element states (p. E-11) that the City allocated a majority of its low- and very low-income Regional Housing Needs Allocation (RHNA) to Census Tract 1 since it has the lowest median income. The element must include analysis and reasoning about the location of sites and impact on current fair housing conditions. The element should discuss whether this strategy potentially isolates a significant number of the housing need for lower-income households and Santa Cruz YIMBY - Scotts Valley Housing Element dated October 2023

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include actions as appropriate to promote inclusive communities and equitable quality of life throughout the City.

Scotts Valley added more explanation regarding Census Tracts 2 and 3. Census Tract 2 and 3 can be targeted for more housing, especially Missing Middle housing. ● Both Census Tract 2 and 3 have large portions of R-1-10 zoning with 10,000 sq foot min lot size. (See Figure C-5 on page C-15) Lots are big enough.

The City claims that both of these Census Tracts “...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.”
● Much of Census 2 and 3 R1-10 zoning has slope of 0-15% (See page E-59) There is no Missing Middle housing mentioned in the Housing Element:
● Under Goal H-1, the City of Scotts Valley should commit to allowing a variety of housing types including duplexes, triplexes, fourplexes and other multifamily project types throughout the City.

They have not addressed housing mobility throughout the city.

Monitoring - Pipeline Projects
HCD comment: While the describes the status of each project, to fully demonstrate these units are expected to be constructed during the planning period, the element should provide information on anticipated remaining steps and any known barriers to development in the planning period. For example, the element could analyze infrastructure schedules, City’s past completion rates on pipeline projects, outreach with project developers, and should describe any anticipated timelines for final approvals. This is particularly important given that several of these projects were identified to accommodate the RHNA during the last planning period but have not yet been constructed.

In addition, given the element’s reliance on pipeline projects, the element should include a program that commits to facilitating development and monitoring approvals of the projects (e.g., coordination with applicants to approve remaining entitlements, supporting funding applications, expediting approvals, and monitoring of project progress, including rezoning or identification of additional sites, if necessary).

There is more language in Appendix F regarding the status and prospects of each of the pipeline projects. On page F-7: “Projects listed do not have any known constraints or barriers which may hold-up or delay the entitlement and/or permitting process. As such, these sites are included for their anticipated development in the planning period.” However, some pipeline projects have been around for a while, including in the last RHNA cycle. The Town Center project has been in discussion since at least 2008, La Madrona’s EIR was started in 2020, and Valley Gardens’ in 2021. In order to meet this recommendation by Santa Cruz YIMBY - Scotts Valley Housing Element dated October 2023

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HCD, the city should create specific programs to monitor and expedite the progress of pipeline projects. This could include automatic entitlement extensions until midway through the 6th cycle and proactively reaching out to all pipeline project developers to confirm that there is still development interest.

Non Vacant sites - Lower Income
HCD comment: In addition, the housing element relies upon nonvacant sites to accommodate more than 50 percent of the RHNA for lower-income households. For your information, the housing element must demonstrate existing uses are not an impediment to additional residential development and will likely discontinue in the planning period (Gov. Code, §65583.2, subd. (g)(2).).

Absent findings (e.g., adoption resolution) based on substantial evidence, the existing uses will be presumed to impede additional residential development and will not be utilized toward demonstrating adequate sites to accommodate the RHNA
Scotts Valley’s “facilitation of affordable housing development” (Program H-1.8) is focused on the inclusionary zoning (IZ). They are not going to meet their targets using a 15% IZ citywide.

City-owned land - Lower Income (Town Ctr)
Program H-1.10 (Surplus Land): While the Program commits to surplus sites and comply with the surplus land act, it should include additional steps the City will take to encourage development in the planning period, including facilitating entitlements, assisting with funding, issuing building permits and taking alternative actions by a specified date if development will not occur in the planning period
Scotts Valley’s Surplus Land Act program (H-1.10) indicates that City-owned land is for affordable housing. Town Center (city-owned) is identified as all lower-income and is the APNs identified in the Timeframe objective. However the Timeframe in H-1.10 allows for only 25% for lower income.

The only reference to the Town Center Specific Plan is in Program H-1.1 and does not include alternative actions if development is not occurring in the planning period.

Constraints
HCD Comment: Finally, While the element provides a brief analysis of development controls, the analysis must address height limits, minimum lot size, setbacks, site coverage and maximum density requirements. The analysis should address any impacts on cost, supply, housing choice, affordability, timing, approval certainty and ability to achieve maximum densities and include programs to address identified constraints.

Santa Cruz YIMBY - Scotts Valley Housing Element dated October 2023

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HCD Comment: In addition, while the element includes Program H-1.1 to increase the residential cap on R-H zoned sites from 50 percent to 70 percent, the commercial requirement may constrain residential development. The element should analyze the 30 percent commercial requirement as a constraint on multifamily development and add or modify programs as appropriate.

The city has correctly identified significant commercial and parking requirements as barriers to development but does not go far enough to remove these constraints. We strongly disagree with the assertion that “...the City’s standards for lot size, setbacks, height, and site coverage are not considered [constraints]..” (Page C-25) If this is the case, why hasn’t there been more housing built in the last cycle? ● In Program H-1.6, H-1.7, and H-1.8 the city should better explore to what extent its density restrictions are a constraint to development, especially of affordable housing.

With the city’s highest density residential zoning district capped at 20 du/acre, this is likely a significant barrier. We recommend a higher base density than 40 du/acre for Mixed-Use parcels along transit corridors. These programs should also occur sooner than 2027, nearly halfway through the 6th cycle.
● In Program H-1.7, the city should commit to adopting a further reduction in residential square footage in mixed-use developments if the proposed rezoning does not result in developer interest as evidenced by at least one formally submitted project application where total unit count meets or exceeds the units expected in the site inventory.
● Program H-1.7 should also include a comprehensive study on Mixed-Use development standards as constraints.
● Program H-1.8 should include undertaking a study to ensure expansion of the inclusionary zoning policy will enable development of additional housing, not chill it.

Consolidation - Small Sites
HCD Comment: Small Sites: Sites smaller than half an acre are deemed inadequate to accommodate housing for lower-income households unless it is demonstrated, with sufficient evidence , that sites of equivalent size and affordability were successfully developed during the prior planning period or other evidence demonstrates the suitability of these sites. The element mentions some parcels are located next to one another and under common ownership but should also discuss the potential for consolidation. For example, the element could evaluate the circumstances potentially leading to consolidation such as existing shared access, necessity for consolidation to share access, necessity for consolidation to promote financial feasibility, meet development standards or facilitate site planning. Based on the outcomes of this analysis, the element should Santa Cruz YIMBY - Scotts Valley Housing Element dated October 2023

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add or modify actions (Program H-2.8) to encourage lot consolidation. For example, the element could consider graduated density as an additional incentive to promote lot consolidation.

There has been no change to Program H-2.8 which lacks active language and does not commit the City to any changes which would enable lot consolidation.

Large Lots
HCD Comment: Large Sites: Sites larger than ten acres in size are deemed inadequate to accommodate housing for lower-income housing unless it is demonstrated that sites of equivalent size were successfully developed during the prior planning period for an equivalent number of lower-income housing units as projected for the site or unless the housing element describes other evidence to HCD that the site is adequate to accommodate lower- income housing (Gov. Code, § 65583.2, subd. (c)(2)(A).). While the element mentions parceling is not necessary, it should also discuss how the site facilitate developments with units affordable to lower-income households, particularly how the level of affordability could be achieved as assumed in the inventory.

Alternatively, the element could adjust affordability assumptions similar to the application of inclusionary requirements.

Program H-2.6 (Development of Large Lots): The Program should commit to establish incentives to promote affordability on identified large sites as assumed in the inventory.

There has been no change to Program H-2.6 which lacks active language and does not commit the City to any changes which would enable large lot development.

Transit Oriented Development
Scotts Valley added language on Page F-31: “This parcel contains the METRO Cavallero transit center and the Scotts Valley Park and Ride center. The City has been in discussions with METRO about converting the site to affordable residential units with workforce components.

Redevelopment of the site would result in parking being moved underground or provided through a parking structure. This would allow for Transit-Oriented Development (TOD) to occur in partnership with the transit center.”
Despite being home to the METRO Cavallero transit center and the Scotts Valley Park and Ride center, Scotts Valley lacks any current or planned high quality transit stops. A high-quality transit stop can help Scotts Valley/affordable housing developers in securing additional funding, e.g. through grant programs that focus on transit-oriented development or reduction of green-house gasses.

We recommend Scotts Valley add a program objective::
“Scotts Valley will work with AMBAG in the 2050 MTP/SCS (scheduled for June 2026) to designate the METRO Cavallero transit center as a planned high quality major transit stop.” Santa Cruz YIMBY - Scotts Valley Housing Element dated October 2023

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The Glossary appendix provides definitions of terms
and a list of acronyms used throughout the Housing
Element.

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H O U S I N G
H - 2 | A P P E N D I X H

G L O S S A R Y
Above Moderate-Income Household. A household with an annual income usually greater than 120 percent of the area median income adjusted by household size, as determined by a survey of incomes conducted by a city or a county, or in the absence of such a survey, based on the latest available legibility limits established by the U.S. Department of Housing and Urban Development (HUD) for the Section 8 housing program.

Accessory Dwelling Unit (ADU). A smaller, independent residential dwelling unit located on the same lot as a standalone single-family home. The Planning and Zoning Law authorizes a local agency to provide, by ordinance, for the creation of accessory dwelling units in single-family and multifamily residential zones and requires such an ordinance to impose standards on accessory dwelling units, including, among others, lot coverage. Existing law also requires such an ordinance to require the ADU to be either attached to, or located within, the living area of the proposed/existing primary dwelling, or detached from the proposed/existing primary dwelling and located on the same lot as the proposed or existing primary dwelling.

Agricultural Housing. Dwellings and/or living quarters for farm laborers, or other types of dwellings determined to be substantially similar to the above by the Director of Community Development.

Affirmatively Furthering Fair Housing (AFFH). Taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. The duty to affirmatively further fair housing extends to all of a public agency’s activities and programs relating to housing and community development.

Affordable Housing Cost. For lower-income households is defined in State law as not more than 30 percent of gross household income with variations (Health and Safety Code Section 50052.5).

Area Median Income (AMI). The midpoint of a geographic area’s income distribution, to account for regional differences in cost of living.

Assisted Housing. Generally multi-family rental housing, but sometimes single-family ownership units, whose construction, financing, sales prices, or rents have been subsidized by federal, state, or local housing programs. These types of units include, but are not limited to Federal Section 8 (new construction, substantial rehabilitation, and loan management setasides), Federal Sections 213, 236, and 202, Federal Sections 221 (d) (3) (below-market interest rate program), Federal Sections 101 (rent supplement assistance), CDBG, FMHA Sections 515, multi-family mortgage revenue bond programs, local redevelopment and in lieu fee programs, and units developed pursuant to local inclusionary housing and density bonus programs.

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H O U S I N G
A P P E N D I X H | H - 3
Below-Market-Rate (BMR). Any housing unit specifically priced to be sold or rented to low- or moderate income households for an amount less than the fair-market value of the unit. Both the State of California and the U.S. Department of Housing and Urban Development set standards for determining which households qualify as “low income” or “moderate income.” The financing of housing at less than prevailing interest rates.

Build-Out. That level of urban development characterized by full occupancy of all developable sites in accordance with the General Plan; the maximum level of development envisioned by the General Plan. Build-out does not assume that each parcel is developed to include all floor area or housing units possible under zoning regulations.

Building Height. The vertical distance from the highest point of a structure to either the natural grade or the finished grade of the structure pad, whichever is greater, excluding basements or crawl spaces around the structure which are below grade and not created by a fill; provided, however, that for the purposes of measuring height, chimneys, flagpoles, and radio and television aerials shall not be considered a part of the structure.

California Department of Housing and Community Development (HCD). The State Department responsible for administering State-sponsored housing programs and for reviewing housing elements to determine compliance with State housing law.

Community Care Facility. A 24-hour residential facility providing care for persons, including: the elderly, persons in an alcoholism or drug abuse recovery or treatment facility, persons in a facility for mentally disordered, handicapped persons or dependent and neglected children, persons in an intermediate care facility/developmentally disabled-habilitative, intermediate care facility/developmentally disabled-nursing, and congregate living health facilities. A Community Care Facility may be located in any type of residence.

Community Development Block Grant (CDBG). A grant program administered by the U.S.

Department of Housing and Urban Development (HUD) on a formula basis for entitled communities and administered by the State Department of Housing and Community Development (HCD) for non-entitled jurisdictions. This grant allots money to cities and counties for housing rehabilitation and community development, including public facilities and economic development.

Condominium. A multi-family building where the units are individually owned, and the common space is owned collectively by condominium unit owners. A condominium structure may have two or more units.

Covenants, Conditions, and Restrictions (CC&Rs). A term used to describe limitations that may be placed on property and its use, and which usually are made a condition of holding title or lease.

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H O U S I N G
H - 4 | A P P E N D I X H
Density Bonus. A density increases for residential units over the otherwise allowed residential density under the applicable zoning and land use designation when a percentage of the units provided are for lower income households on the date an application is deemed complete.

Deed. A legal document which affects the transfer of ownership of real estate from the seller to the buyer.

Developable Land. Land that is suitable as a location for structures and that can be developed free of hazards to, and without disruption of, or significant impact on, natural resource areas.

Discretionary Action. An action or approval which requires the exercise of judgment or deliberation when the City decides to approve or disapprove a project.

Down Payment. Money paid by a buyer from his own funds, as opposed to that portion of the purchase price which is financed.

Dwelling. Any building or portion thereof, designed or used as the residence or sleeping place of one or more persons.

Dwelling, Multifamily. Building, or portion thereof, designed or used for residence purposes by two or more families or housekeeping units.

Dwelling, Single-Family. Detached building designed or used for residence purposes by one family or housekeeping unit.

Dwelling Unit. Any building, or portion thereof, designed or used as the residence or sleeping place of one or more persons.

Emergency Shelters. Housing with minimal supportive services that is limited to occupancy of six months or less.

Extremely Low-Income Household. A household with an annual income that is less than 30 percent of the area median family income adjusted by household size, as determined by a survey of incomes conducted by a city or a county, or in the absence of such a survey, based on the latest available eligibility limits established by the U.S. Department of Housing and Urban Development (HUD) for the Section 8 housing program.

Family. 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.

Fair Market Price. The rent, including utility allowances, determined by the United States Department of Housing and Urban Development for purposed of administering the Section 8 Program.

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H O U S I N G
A P P E N D I X H | H - 5
General Plan. The General Plan is a legal document, adopted by the legislative body of a City or County, setting forth policies regarding long-term development. California law requires the preparation of seven elements or chapters in the General Plan: Land Use, Housing, Circulation, Conservation, Open Space, Noise, and Safety. Additional elements are permitted, such as Economic Development, Urban Design and similar local concerns.

Goal. A general, overall, and ultimate purpose, aim, or end toward which the City will direct effort.

Gross Monthly Income (GMI). Total income before any deductions.

HAMFI. HUD Area Median Family Income. This is the median family income calculated by HUD for each jurisdiction, in order to determine Fair Market Rents (FMRs) and income limits for HUD programs.

Housing and Community Development Department (HCD). The State agency that has principal responsibility for assessing, planning for, and assisting communities to meet the needs of lowand moderate-income households.

Housing Choice Voucher Program. (See “Section 8 Rental Assistance Program.”) Housing Cost. Commonly includes rent or mortgage payments, utilities (gas, electricity, water, sewer, garbage, recycling, green waste), and property taxes and insurance on owner-occupied housing.

Housing Element. One of the seven State-mandated elements of a local general plan, it assesses the existing and projected housing needs of all economic segments of the community, identifies potential sites adequate to provide the amount and kind of housing needed, and contains adopted goals, policies, and implementation programs for the preservation, improvement, and development of housing. Under State law, Housing Elements must be updated every five years.

Housing Unit. The place of permanent or customary abode of a person or family. A housing unit may be a single-family dwelling, a multi-family dwelling, a condominium, a modular home, a mobile home, a cooperative, or any other residential unit considered real property under State law.

HUD (U.S. Department of Housing and Urban Development). An executive departments of the U.S. federal government which administers federal housing and urban development laws. Infill Development. Refers to building within unused and underutilized lands within existing development patterns, typically but not exclusively in urban areas.

Jobs-Housing Balance. A ratio used to describe the adequacy of the housing supply within a defined area to meet the needs of persons working within the same area. The General Plan

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H O U S I N G
H - 6 | A P P E N D I X H
uses SCAG’s definition which is a job total equal to 1.2 times the number of housing units within the area under consideration.

Land Use Classification. A system for classifying and designating the appropriate use of properties.

Live-Work Units. Buildings or spaces within buildings that are used jointly for commercial and residential purposes where the residential use of the space is secondary or accessory to the primary use as a place of work.

Low Barrier Navigation Centers (LBNC). A “Housing First,” low barrier, temporary, serviceenriched shelter that helps homeless individuals and families to quickly obtain permanent housing.

Lot. Parcel of land consisting of a single parcel of record.

Lot Coverage. The maximum lot area which may be covered with buildings and structures.

Buildings and structures include all land covered by principal buildings, garages and carports, accessory structures, covered decks and gazebos, and other enclosed and covered areas; but not standard roof overhangs, cornices, eaves, uncovered decks, swimming pools, paved areas such as walkways, driveways, patios, uncovered parking areas or roads. All areas of coverage are computed in terms of net lot area at ground level.

Low-Income Household. A household with an annual income usually between 51 and 80 percent of the area median income adjusted by household size, as determined by a survey of incomes conducted by a city or a county, or in the absence of such a survey, based on the latest available eligibility limits established by the U.S. Department of Housing and Urban Development (HUD) for the Section 8 housing program.

Low-Income Housing Tax Credits. Tax reductions provided by the federal and State governments for investors in housing for low-income households.

Mixed Use. Development that contains both commercial (retail or office) uses and residential uses.

Mobile Home. A vehicle designed and equipped for human habitation, and for being drawn behind a vehicle. Such mobile home must either be constructed after September 15, 1971 and issued an insignia of approval by the California Department of Housing and Community Development and permanently located on a permanent foundation system, or be constructed after July 15, 1976, and issued an insignia of approval by the U.S. Department of Housing and Urban Development and permanently located on a permanent foundation system, or other type of housing determined to be substantially similar to the above.

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H O U S I N G
A P P E N D I X H | H - 7
Mobile Home Park. A development or subdivision of an existing parcel, or contiguous parcels, of land for the purpose of separate sale, lease, or financing to allow the installation of mobile homes or manufactured homes.

Moderate-Income Household. A household with an annual income usually between 81 and 120 percent of the area median income adjusted by household size, as determined by a survey of incomes conducted by a city or a county, or in the absence of such a survey, based on the latest available eligibility limits established by the U.S. Department of Housing and Urban Development (HUD) for the Section 8 housing program.

Multi-Family Residence. A building or a portion of a building used and/or designed as residences for two or more families living independently of each other. This Includes: duplexes, triplexes, and fourplexes (detached buildings under one ownership with two, three, or four residential units (respectively) in the same building); and apartments (five or more units under one ownership in a single building); attached unit projects such as condominiums and townhouses; and Boarding House. This use type may include other residential types determined to be substantially similar to the above by the City of Scotts Valley Director of Community Development, or designee.

Ordinance. A law or regulation set forth and adopted by a governmental authority, usually a city or county.

Overcrowding. The U.S. Census defines an overcrowded unit as one occupied by 1.01 persons or more per room. Units with more than 1.5 persons per room are considered severely overcrowded. Overcrowding increases health and safety concerns and stresses the condition of the housing stock and infrastructure. Overcrowding is strongly related to household size and the availability of suitably sized housing. Overcrowding impacts both owners and renters; however, renters are generally more significantly impacted. In 2000, renter households were three times more likely than owners to be overcrowded, regardless of household size.

Parcel. A lot or tract of land.

Person with a Disability. Any individual (1) with a physical or mental impairment that substantially limits one or more major life activities; (2) with a record of such impairment; or (3) who is regarded as having such an impairment. A physical or mental impairment includes, but is not limited to, conditions such as orthopedic, visual, speech and hearing impairments, cerebral palsy, autism, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, Human Immunodeficiency Virus (HIV), developmental disabilities, mental illness, drug addiction, and alcoholism.

Planning Area. The area directly addressed by the general plan. A city’s planning area typically encompasses the city limits and potentially annexable land within its sphere of influence.

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H O U S I N G
H - 8 | A P P E N D I X H
Planned Unit Development (PUD). Form of development usually characterized by a unified site design for a number of housing units, clustered buildings and the provision of common open space, density increases and a mix of building types and land uses.

Planning Commission. Planning Commission of the City of Scotts Valley.

Policy. A specific statement of principle or of guiding action that implies clear commitment but is not mandatory. A general direction that a governmental agency sets to follow, in order to meet its objectives before undertaking an action program. (See “Program.”) Poverty Level. As used by the U.S. Census, families and unrelated individuals are classified as being above or below the poverty level based on a poverty index that provides a range of income cutoffs or “poverty thresholds” varying by size of family, number of children, and age of householder. The income cutoffs are updated each year to reflect the change in the Consumer Price Index.

Program. An action, activity, or strategy carried out in response to adopted policy to achieve a specific goal or objective. Policies and programs establish the “who,” “how” and “when” for carrying out the “what” and “where” of goals and objectives.

Quasi-Public Uses. Uses owned or operated by a nonprofit, religious or philanthropic institution and providing educational, cultural, recreational, religious or similar types of public programs.

Recreation, Commercial. Clubs or recreation facilities operated as a business which may or may not be open to the general public for a fee.

Recreation, Private. Clubs or recreation facilities of a noncommercial nature operated by a nonprofit organization and open only to bona fide members of such nonprofit organizations.

Residential. Land designated in the General Plan and zoning ordinance for building consisting of dwelling units. May be improved, vacant, or unimproved. (See “Dwelling Unit.”) Residential Care Facility. A facility that provides 24-hour care and supervision to its residents Retail Service. Use engaged in providing retail sale or rental of items primarily intended for consumer or household use, including but not limited to the following: groceries, meat, vegetables, dairy products, baked goods, candy and other food products; liquor and bottled goods; household cleaning and maintenance products; drugs; cards, stationery, notions, tobacco products, cosmetics and specialty items; flowers, plants and garden products; hobby materials; toys; handcrafted items; clothing, shoes, apparel, jewelry, fabrics and like items; cameras and photography equipment; furniture, furnishings, appliances, antiques, art objects, paint and wallpaper, floor coverings and lighting fixtures; office supplies; musical instruments; hardware and building supplies; and bicycles, mopeds and automotive parts and accessories.

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H O U S I N G
A P P E N D I X H | H - 9
Rezoning. An amendment to the map to effect a change in the nature, density, or intensity of uses allowed in a zoning district and/or on a designated parcel or land area.

Section 8 Rental Assistance Program. A federal (HUD) rent-subsidy program, which is one of the main sources of federal housing assistance for low-income households, operates by providing “housing assistance payments” to owners, developers, and public housing agencies to make up the difference between the “Fair Market Rent” of a unit (set by HUD) and the household’s contribution toward the rent, which is calculated at 30 percent of the household’s adjusted gross monthly income (GMI). “Section 8” includes programs for new construction, existing housing, and substantial or moderate housing rehabilitation. Now referred to as Housing Choice Voucher Program.

Senior Housing. Typically, one- and two-bedroom apartments or condominiums designed to meet the needs of persons 62 years of age and older or, if more than 150 units, persons 55 years of age and older, and restricted to occupancy by them.

Shared Living Facility. The occupancy of a dwelling unit by persons of more than one family in order to reduce housing expenses and provide social contact, mutual support, and assistance.

Shared living facilities serving six or fewer persons are permitted in all residential districts by Section 1566.3 of the California Health and Safety Code.

Single-Family Dwelling, Attached. A dwelling unit occupied or intended for occupancy by only one household that is structurally connected with at least one other such dwelling unit. (See “Townhouse.”)
Single-Family Dwelling, Detached. A dwelling unit occupied or intended for occupancy by only one household that is structurally independent from any other such dwelling unit or structure intended for residential or other use.

Single Housekeeping Unit. A residence with two or more members, whose members are a nontransient interactive group of persons jointly occupying a single dwelling unit, including but not limited to the joint use of common areas and sharing household activities and responsibilities such as meals, chores, and expenses.

Single Room Occupancy (SRO). A building or buildings constructed or converted for residential living consisting of one-room dwelling units, where each unit is occupied by a single individual or two persons living together as a domestic unit, and where the living and sleeping space are combined. A one-room dwelling unit is not required to contain a bathroom or a kitchen except that if a bathroom or kitchen is not provided within the unit such common facilities shall be provided on-site for residents. A unit that contains both a bathroom and kitchen shall be considered a studio unit and not a Single Room Occupancy Unit. Common facilities for laundry may or may not be provided on-site.

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H O U S I N G
H - 1 0 | A P P E N D I X H
Site Coverage. Percentage of site area covered by impervious surfaces, including all structures, opened, or enclosed or projections of structures.

Special Needs Group. Government Code Section 65583 (a)(7) defines special housing needs includes the elderly; persons with disabilities, including a developmental disability, as defined in Section 4512 of the Welfare and Institutions Code; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter.

Substandard Housing. Residential dwellings that, because of their physical condition, do not provide safe and sanitary housing.

Supportive Housing. Housing with no limit on length of stay, that is occupied by the target population, and that is linked to onsite or offsite services that assist the supportive housing resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community; as defined by Section 50675 of the California Health and Safety Code.

Target Population. Target population refers to people with low incomes who have one or more disabilities, including mental illness, HIV or AIDS, substance abuse, or other chronic health condition, or individuals eligible for services provided pursuant to the Lanterman Developmental Disabilities Services Act (Division 4.5 (commencing with Section 4500) of the Welfare and Institutions Code) and may include, among other populations, adults, emancipated minors, families with children, elderly people, young adults aging out of the foster care system, individuals exiting from institutional settings, veterans, and people experiencing homelessness.

Tenure. If a unit is owner occupied or renter occupied.

Townhouse. A single-family unit constructed in a group of three or more attached units in which each unit extends from the foundation to the roof and with its own front and rear access to the outside. A townhouse unit can be individually owned.

Transitional Housing. Temporary rental housing intended for occupancy by target populations transitioning to permanent housing that is operated under program requirements calling for the termination of assistance and 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 as defined in Section 50675.2 of the California Health and Safety Code.

Use. Purpose for which a site or structure is arranged, designed, intended, constructed, erected, moved, altered or enlarged or for which either a site or structure(s) may be occupied or maintained.

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H O U S I N G
A P P E N D I X H | H - 1 1
Zone or Zoning district. Portion of the territory of the city within which certain uniform regulations and requirements or various combinations thereof, apply under the provisions of Scotts Valley Municipal Code (SVMC) Title 17.

Zoning Map. Official zoning map or maps of the City of Scotts Valley, adopted by the city council and effective upon the effective date of the ordinance codified in this title, together with all amendments thereto hereafter made.

Zoning Permit. Document signed by the building inspector, as required in this title, as a condition precedent to the commencement of a use or the erection, construction, reconstruction, restoration, alteration, conversion or installation of a structure or building which acknowledges that such use, structure or building complies with the provisions of this title.

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H O U S I N G
H - 1 2 | A P P E N D I X H

A C R O N Y M S
AMBAG: Association of Monterey Bay Area
Governments
ACS: American Community Survey.

ADU: Accessory Dwelling Unit
ACS: American Community Survey
ADA: Americans with Disabilities Act
AFFH: Affirmatively Furthering Fair Housing
AMI: Area Median Income
BMR: Below Market Rate
CAR: California Association of Realtors
CEQA: California Environmental Quality Act
CCCE: Central Cost Community Energy
CCCIL: Central Coast Center for
Independent Living
CDDS: California Department of
Developmental Services
CDBG: Community Development Block
Grant
CHAS: Comprehensive Housing Affordability
Strategy
CPCU: California Public Utilities Commission
DFEH: Department of Fair Employment and
Housing
ELI: Extremely Low-Income
FHEO: Office of Fair Housing and Equal
Opportunity
FAR: Floor Area Ratio
FEMA: Federal Emergency Management
Agency
FMR: Fair Market Rate
GMI: Gross Median Income
HAMI: HUD Area Median Income
HAMFI: HUD Area Median Family Income
HCD: Housing and Community
Development
HUD: Development Housing and Urban
Development
HCVP: Section 8 Housing Choice Voucher
HH: Household
HMDA: Home Mortgage Disclosure Act
HOA: Homeowners Association
ICC: International Code Council
LBNC: Low-Barrier Navigation Center
LEAP: Local Early Action Planning
LIHTC: Low Income Housing Tax Credit
MCC: Mortgage Credit Certificate
MHI: Median household Income
MSA/MD: Metropolitan Statistical Area/
Metropolitan Division
OEHHA: Office of Environmental Health
Hazard Assessment
PIT: Point-in-Time
PG&E: Pacific Gas and Electric Company
RMCC: Reissued Mortgage Credit Certificate
R/ECAP: Racially Concentrated Areas of
Poverty
RCAA: Racially Concentrated Areas of
Affluence
RHNA: Regional Housing Needs Assessment
ROI: Regional Opportunity Index
SRO: Single-Room Occupancy Unit
SVSLA: Scotts Valley Senior Life Association
SVMC: Scotts Valley Municipal Code
SB: Senate Bill
TCAC: California Tax Credit Allocation
Committee
UC: University of California

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AGENDA
Special Meeting of the
Scotts Valley Planning Commission
In-Person and Remote Access
Date: December 7, 2023
Time: 6:00 PM

CONTACT

INFORMATION

MEETING LOCATION POSTING
City of Scotts Valley
1 Civic Center Drive
Scotts Valley, CA 95066
(831) 440-5600
City Council Chambers
1 Civic Center Drive
Scotts Valley, CA 95066
OR Zoom Video Conference:
https://us02web.zoom.us/j/88671741298
The agenda was posted on
12-1-2023 at City Hall, SV
Public Works Building, SV
Senior Center and online at
www.scottsvalley.gov

ELECTED OFFICIALS CITY STAFF MEMBERS
Lori Gentile, Chair
Chuck Maffia, Vice Chair
David Hodgin, Commissioner
Shawn Mosley, Commissioner
Steve Simonovich, Commissioner
Taylor Bateman, Community Development
Director
Sarah Wikle, Senior Planner
Cathie Simonovich, City Clerk

MEETING NOTICE AND AGENDA PACKET MATERIALS
Notice regarding Planning Commission Meetings:

The Planning Commission meets regularly on the 2nd Thursday of each month (unless otherwise noticed) at 6pm in the City Hall Council Chambers located at 1 Civic Center Drive, Scotts Valley, CA 95066. Currently meetings are being held remotely.

Agenda and Agenda Packet Materials:

The Planning Commission agenda and the complete agenda packet are available for review by 5pm the Friday before the Thursday meeting on the Internet at the City’s website:
https://www.scottsvalley.gov/129/Agendas-Minutes
Public Participation:

The meeting will be available in person and on Zoom. For those wishing to participate via Zoom, you can join from a PC, Mac, iPad, iPhone or Android device by entering or clicking on the following URL: https://us02web.zoom.us/j/88671741298 You will be given an opportunity to provide public comment at the appropriate times throughout the meeting via Zoom.

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Planning Commission Meeting Agenda Page 2
Date: December 7, 2023
How to comment via Zoom:

1. At the appropriate times during the meeting for public comment on items not on the agenda and on specific agenda items, the Planning Commission Chair will announce that public comment will be accepted. Our usual time limits of three minutes per individual, or five minutes for an individual who is representing a group of three or more, will apply. Please note that per our standard practice, this is not a question and answer time, but simply a time for you to provide comments to the Planning Commission.

2. There is an option on Zoom to raise your hand. Please click on this option when the Chair announces that public comments will be taken. If you are participating via dial-up only, use *9 to raise your hand at the requested time. Zoom places people in line automatically. When it is your turn, you will be un-muted and you will be able to make your comments based on the above time frames. Once your time is up, you will once again be muted and the next person in line will be given their opportunity to speak.

CALL TO ORDER 6:00 PM
(The Planning Commission Chair calls the meeting to order.)

PLEDGE OF ALLEGIANCE

ROLL CALL
(Planning Department staff conduct roll call of the Planning Commission.)

PUBLIC COMMENT TIME
This is the opportunity for individuals to make and/or submit written or oral comments to the Commission on any items within the purview of the Commission, which are NOT part of the Agenda. No action on the item may be taken, but the Commission may request the matter be placed on a future agenda.

ALTERATIONS TO PUBLIC HEARING AGENDA
(Commission can remove or add items to the Regular Agenda.)

PUBLIC HEARING AGENDA
(Persons wishing to speak on any item may do so by raising their hand to be recognized by the Chair.)

1. Consider a recommendation to the City Council to adopt the 2023-2031 Housing Element update

DISCUSSION ITEMS AND FUTURE AGENDA ITEMS
(The Planning Commission or Community Development Director may request to schedule items on future agendas.)
WRITTEN COMMUNICATIONS – FOR INFORMATION ONLY

DIRECTOR UPDATES

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Planning Commission Meeting Agenda Page 3
Date: December 7, 2023
(The Community Development Director may provide any department or city updates that are available.)

ADJOURNMENT
(Adjournment shall be no later than 11pm unless extended by a four-fifths vote of all Planning Commission members or a unanimous vote of the members present per City Municipal Code Section 2.21.010.)
The City of Scotts Valley does not discriminate against persons with disabilities. The City Council Chambers is an accessible facility. If you wish to attend a Planning Commission meeting and require assistance such as sign language, a translator, or other special assistance or devices in order to attend and participate at the meeting, please call the Community Development Department at 831-440-5630 five to seven days in advance of the meeting to make arrangements for assistance. If you require the agenda of a Planning Commission meeting be available in an alternative format consistent with a specific disability, please call the Community Development Department. The California State Relay Service (TTY/VCO/HCO to Voice: English 1-800-735-2929, Spanish 1-800-855-3000; or, Voice to TTY/VCO/HCO: English 1-800-735-2922, Spanish 1-800-855-3000), provides Telecommunications Devices for the Deaf and Disabled and will provide a link between the TDD caller and users of telephone equipment.

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CITY OF SCOTTS VALLEY
Planning Commission Staff Report
DATE: December 7, 2023
TO: Planning Commission
FROM: Bill Wiseman and Ines Galmiche, Kimley-Horn & Associates APPROVED: Taylor Bateman, Community Development Director SUBJECT: Adoption of the City of Scotts Valley 2023-2031 Housing Element Update

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

The current Housing Element, which was adopted by the City Council in March 2016 and certified by the State, covers the planning period from 2015 to 2022 (the 5th Cycle).

The next Housing Element Update (the 6th Cycle) must be adopted by December 2023, to address the period from 2023 to 2031. State law establishes a series of very specific requirements as to the scope, content, and process by which a Housing Element is updated and adopted, including review and approval (known as certification) by the California Department of Housing and Community Development (HCD).

California Government Code Section 65580 lists six Housing Element goals to help ensure that every resident has access to housing and a suitable living environment.

1. The availability of housing is of vital statewide importance, and the early attainment of decent housing and a suitable living environment for every Californian, including farmworkers, is a priority of the highest order.

2. The early attainment of this goal requires the cooperative participation of government and the private sector in an effort to expand housing opportunities and accommodate the housing needs of Californians of all economic levels.

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3. The provision of housing affordable to low- and moderate-income households requires the cooperation of all levels of the government.

4. Local and State governments have a responsibility to use the powers vested in them to facilitate the improvement and development of housing to make adequate provision for the housing needs of all economic segments of the community.

5. The Legislature recognizes that in carrying out this responsibility, each local government also has the responsibility to consider economic, environmental, and fiscal factors and community goals set forth in the general plan and to cooperate with other local governments and the State in addressing regional housing needs.

6. Designating and maintaining a supply of land and adequate sites suitable, feasible, and available for the development of housing sufficient to meet the locality’s housing need for all income levels is essential to achieving the State’s housing goals and the purposes of this article.

Regional Housing Needs Allocation
Through the Housing Element update, the City must show that it can accommodate its Regional Housing Needs Allocation (RHNA). The RHNA target for this Housing Element cycle was developed by HCD and then refined by the Association of Monterey Bay Area Governments (AMBAG). It provides each jurisdiction a specified target number of housing units in four different affordability levels. For the 6th Cycle, the City of Scotts Valley was allocated a total of 1,220 housing units (see Table 1 – 6 th Cycle RHNA). The
City is required to identify strategies and exact parcels with the capacity to accommodate the entirety of the RHNA.

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Table 1 – 6th Cycle RHNA
Income Category
Percent of Area
Median Income
(AMI)
Income Range1
RHNA
(Housing
Minimum Maximum Units)
Very Low Income 0 – 50% -- $77,750 392
Low Income 51 – 80% $77,751 $124,750 257
Moderate Income 81 – 120% $124,751 $143,150 154
Above Moderate Income >120% $143,150 -- 417
TOTAL 1,220 units
The total number of units the City needs to plan for is 1,220. To put this number in perspective, the total RHNA units for Scotts Valley in the current 5th Cycle is 140. The increase in this housing target is the State recognizing the underproduction of housing statewide for some time.

It is important to note that while the City may assist with the development of affordable housing through various programs and funding sources, it is not the direct role of the City to construct housing. Rather, the City is responsible for ensuring that adequate opportunities exist for housing development through zoning and by removing regulatory impediments to housing production.

Community Outreach
Throughout the housing element development process, the City has held a number of public meetings to keep the community informed and solicit feedback. City staff has also reached out to various housing advocate stakeholders. Public meetings and public review drafts of the Housing Element to date include the following:

On January 26, 2023, the City hosted a virtual Community Workshop #1 in English and Spanish via Zoom on the 2024-2031 Housing Element Update process. The meeting 1 Income range is based on the 2022 HUD Area Median Income (AMI) for Santa Cruz County of $119,300 for a family of 4.

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provided an overview on the Housing Element Update process, information on the City's Regional Housing Needs Assessment (RHNA) allocation, and next steps.

On March 15, 2023, the City provided an informational update on the Housing Element process to the City Council. The presentation included an overview of the Housing Element process, a discussion on RHNA, site selection process and potential strategies, the role of community engagement, and a discussion of next steps.

On April 5, 2023, the City Council and Planning Commission conducted Joint Study Session #1 on strategies to address the 6th Cycle RHNA. The discussion reviewed the following strategies and topics: projects in the entitlement pipeline, projected ADU development, existing zoning capacity, opportunity areas, and potential zoning code amendments.

On May 19, 2023, the City of Scotts Valley published the Public Review Draft of the 2023-2031 Housing Element. The Public Review Draft was available for review and comment through June 19, 2023.

On May 30, 2023, the City of Scotts Valley hosted Community Workshop #2 for interested parties to learn about the Public Review Draft Housing Element and how to provide review questions and comments.

On June 28, 2023, the City Council and the Planning Commission conducted Joint Study Session #2. The meeting included a discussion on the Public Review Draft Housing Element, changes to the candidate sites inventory since the last study session, and community efforts to date.

On July 5, 2023, the City published the Housing Element Update to HCD for review.

This 1st HCD Submittal Draft included revisions based on City Council, Planning Commission, and community member guidance and input.

Throughout the Housing Element update process, Staff have also met with various stakeholders, including property owners, community-based organizations, community members, and local developers to discuss the Housing Element update. These discussions and feedback were considered when continuing to develop subsequent Housing Element drafts.

Based on preliminary comments from HCD, the City revised the 1 st HCD Submittal
Draft. This 1
st HCD Resubmittal Draft was available for public review from September 11 through September 18, 2023.

Based on receiving a formal comment letter from HCD on October 3, 2023, the City prepared the 2nd HCD Submittal Draft, which was made available for public review from October 12 to October 19, 2023.

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On October 20, 2023, the City formally submitted the 2nd HCD Submittal Draft to HCD.

Comments from HCD are still pending.

A website for the Housing Element – https://scottsvalley.gov/445/Housing-ElementUpdate – has been maintained throughout the process. Each draft Housing Element Update circulated for public comment, as well as each draft submitted to HCD (with edits in redline), is included on the website. Information on the Housing Element, RHNA, the update process, community outreach efforts, and Affirmatively Furthering Fair Housing (AFFH) is provided to help inform the community about this important update effort.

The Community Engagement appendix (Appendix G) provides more details on the engagement efforts conducted and responses to community comments.

HOUSING ELEMENT COMPONENTS
The 2023-2031 Housing Element includes the following chapters and appendices:
• Chapter 1: Introduction
• Chapter 2: Housing Plan
• Appendix A: Review of Past Performance
• Appendix B: Housing Needs Assessment
• Appendix C: Housing Constraints
• Appendix D: Housing Resources
• Appendix E: Affirmatively Furthering Fair Housing (AFFH) • Appendix F: Candidate Housing Sites
• Appendix G: Community Engagement Summary
• Appendix H: Glossary of Terms
Collectively, this update provides a comprehensive view of the City’s past, present, and future actions as they relate to supporting programs and housing for all needs and all affordability levels.

To support meeting the RHNA targets and drive housing decisions for the next eight years, the Housing Element Update does two key things: 1) it provides goals, policies, and objectives to address housing needs and support future housing growth for all income levels, and 2) it identifies an inventory of sites to show that the City has capacity to accommodate its RHNA housing unit targets. Aside from these two sections, much of the Housing Element focuses on providing existing conditions analysis and local context to inform and further support the policy and site inventory decisions.

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Policy Programs
The Chapter 2: Housing Plan establishes the goals, policies, and programs that the City will implement throughout the planning period to meet its RHNA, address potential constraints to housing development, and affirmatively further fair housing. The programs include concrete actions and timeframes, per HCD guidelines. Additional programs have also been added in response to the analysis conducted in the Draft Housing Element’s appendices; these include new State law requirements and actions to further facilitate affordable housing development and remove development constraints.

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

Affirmatively Furthering Fair Housing (AFFH)
New to the 6th Cycle Housing Element updates statewide is the inclusion of AFFH requirements. Beginning on January 1, 2019, Assembly Bill (AB) 686 established new requirements for all California jurisdictions to ensure that local laws, programs, and activities affirmatively further fair housing and that all Housing Elements due after January 1, 2021, contain an assessment of fair housing. 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 of barriers that restrict access to opportunity based on protected characteristics (such as race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability).” The State requires Scotts Valley to show how its housing decisions are furthering fair housing, and HCD assigns special focus on this new portion of the document in its certification review. Summary and analysis of AFFH can be found

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in the Fair Housing appendix, and numerous AFFH policies are designated in the Policy section to provide actions/objectives to meet the noted State goals.

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

On April 5, 2023, City staff presented the City Council and Planning Commission a number of strategies to accommodate this RHNA and received guidance on preferred methods and recommendations. Recommendations included: 1) proceed with including mixed-use development opportunities along Scotts Valley Drive, 2) consider additional capacity at Town Center, 3) outreach to current project applications to increase unit capacity on respective properties, 4) proceed with studying commercial and residential areas for higher density residential development capacity, 5) decrease the total and above moderate-income buffer.

Staff also received recommendations from stakeholders and local property owners to increase the mixed-use residential maximum over the current 50 percent. Based on further guidance from the City Council and Planning Commission from the first Joint Study Session, the number of properties identified for mixed-use rezoning was increased.

Table 2: 6th Cycle RHNA Sites Inventory Analysis shows the City’s ability to accommodate the 6th Cycle RHNA by income category through a variety of methods, including those listed below. Figure 1: 6th Cycle Housing Element Sites Inventory – All Sites illustrates the location of the sites.

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Table 2: 6
th Cycle RHNA Sites Inventory Analysis
Strategies
Very
Low
Income
Low
Income
Moderate
Income
Above
Moderate
Income
TOTAL
6 th Cycle RHNA 392 257 154 417 1,220
Existing Residential Capacity 11 6 66 83
Pipeline Projects 51 13 353 417
Projected ADUs 24 12 4 40
Town Center Specific Plan 427 39 191 657
Rezones
Residential 65 14 89 168
Mixed Use 318 84 399 801
TOTAL 896 168 1,102 2,166
Percent Over RHNA (Buffer) 38% 9% 164% 78%

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Figure 1: 6th Cycle Housing Element Sites Inventory – All Sites

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Existing Residential Capacity
At the April 5, 2023, Joint Study Session Meeting, the City Council and Planning Commission directed staff the total and above-moderate income “buffer”. In response, Staff removed all vacant residential sites and underutilized residential sites with the zoning capacity to accommodate only above moderate-income units. Only sites with the existing zoning capacity to accommodate low-income units remain in the inventory.

The City has identified five parcels currently zoned for residential with the capacity to accommodate additional housing units for low-income units. Four of these sites are considered underutilized and have a land value that is higher than the improvement value; the sites are considered due to their ability to consolidate to develop a multifamily housing development with affordable units. The fifth parcel is a mostly vacant site.

This resulted in a development capacity of 83 units; 11 affordable to lower income households, six to moderate-income households, and 66 to above moderate-income households.

Pipeline Projects
HCD guidance states that residential projects that are in review, approved, permitted, or receive a certificate of occupancy after the beginning of the RHNA period may be credited towards meetings the RHNA. These projects and their estimated number of units by income type are shown in Table 3: Pipeline Projects.

Table 3: Pipeline Projects
Pipeline Project Acreage Net Units Lower Moderate Above Moderate
Erba Lane 0.77 10 1 1 8
Oak Creek Park 3.56 52 6 2 44
Valley Gardens 18.36 171 25 0 144
La Madrona – Gateway
South 17.6 184 19 10 155
TOTAL 40.29 417 51 13 353

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Accessory Dwelling Units (ADUs)
The City anticipates a total of 40 new ADUs between 2024 and 2031, with approximately five ADUs permitted annually. Table 4: ADU Projections shows the ADU projections by income category. As established in the Housing Plan’s ADU program, the City will establish an ADU monitoring program and will assess trends annually through the Annual Progress Report (APR) process; if gaps are identified between what is anticipated in this analysis and what is built, the City will implement changes within a year.

Table 4: ADU Projections
Income Category Percentage Units
Low- and Very Low-Income 60% 24
Moderate-Income 30% 12
Above Moderate-Income 10% 4
TOTAL 40
Per Government Code section 65852.2, ADUs must be permitted in any residential or mixed-use zone – any zone where residential uses are permitted by-right or by conditional use. Additionally, State law states that local governments cannot preclude the creation of ADUs, and any limitations should be accompanied by detailed findings of fact explain why ADU limitations are required and consistent with these factors. The City has a total of 3,856 parcels which currently permit residential uses. This equates to a total of 2,621 acres. As such, the City has a sufficient number of sites with the potential to accommodate the total projected 40 ADUs over the eight-year cycle.

HCD guidelines recommend reviewing past construction trends and inclusion of programs that incentivize ADU construction to inform ADU projections for the 6th Cycle.

This will be facilitated through a number of program actions included in the Housing Plan. Program H-1.1 6th Cycle Regional Housing Needs Allocation addresses the City’s total RHNA and its identified housing unit capacity through projects in various strategies, including the projected ADU development. Through Program H-1.5 Accessory Dwelling Unit Program, the City shall facilitate the development of ADUs per State law requirements. The City will establish an ADU monitoring program to track ADU development, review ADU production and affordability levels annually, and implement actions in this Program as a means of promoting increased ADU development.

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Town Center Specific Plan
The Town Center Specific Plan area encompasses approximately 58 acres, including 15 acres of vacant land, and is surrounded by a mix of retail and civic uses. The Plan area is made up of multiple parcels with multiple property owners.

As part of the candidate housing sites analysis, the City has identified three City-owned parcels, one METRO-owned parcel (the transit center), and one privately-owned parcel part of the Kings Village Shopping Center. The goal in identifying the City-owned parcels is to directly ensure affordable housing development – the City will coordinate the development of the parcels with affordable housing developers. Regarding the METRO- and privately-owned parcel, the City will coordinate with both to facilitate and promote affordable housing development. Table 5: Town Center Specific Plan Candidate Sites provides details on each parcel identified. Programs H1.1 6 th Cycle
Regional Housing Needs Allocation and H1.6 Surplus Land Act outline the City’s intent to sell the City owned-parcels or partner with an affordable housing developer to a developer for a mixed-use project which includes affordable housing once the Specific Plan Amendment updates are complete. This is anticipated to occur by December 2026.

Table 5: Town Center Specific Plan Candidate Sites
Parcels Acreage Density Realistic
Capacity
Net
Units Lower Moderate Above Moderate
Skypark Dog
Park and Pump
Track 1
(APN 022-721-
06)
2 40 80% 64 64 0 0
Vacant Parcel
West of City
Library 1
(APN 022-212-
19)

1.07 40 80% 32 32 0 0
RV Storage
Parcel 1
(APN 022-601-
01)

2.9 40 80% 92 92 0 0
METRO
Cavallaro
Transit Center
(APN 022-212-
16)

2.77 40 80% 86 86 0 0

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Parcels Acreage Density Realistic
Capacity
Net
Units Lower Moderate Above Moderate
Kings Village
Shopping
Center 2
(APN 022-601-
18)

13.69 40 80% 383 153 39 191
TOTAL 22.43 -- -- 657 427 39 191
Notes:

1. City-owned property.

2. Santa Cruz METRO

3. Private property
Rezone Strategies
The City cannot fully accommodate the entirety of its RHNA through existing capacity.

As such, two rezone strategies have been identified to expand the City’s existing mixeduse zoning on identified sites and rezone particular parcels to accommodate high density residential development.

The intent of the rezones are to create additional residential development opportunities along Scotts Valley Drive and Mount Hermon Road – in areas that provide convenient access to community resources, public transportation, and in areas that have development interest.

Residential Rezones
The City has identified six parcels totaling 4.23 acres to be rezoned to allow high density residential at an expected density of 40 dwelling units per acre. In total, the parcels identified for rezoning have potential to accommodate 65 very low- and lowincome units, 14 moderate-income units, and 89 above moderate-income units. The location of these parcels are shown on Figure 1: 6th Cycle Housing Element Sites Inventory – All Sites.

Mixed-Use Rezones
The City currently allows for mixed-use developments with a maximum residential component of 50 percent. The City has identified 29 parcels totaling 36.6 acres to be rezoned to allow for higher density, mixed-use residential at an expected density of up to 40 dwelling units per acre and a commercial requirement lowered down to 30 percent. The City assumes a realistic capacity of 70 percent on these sites to account for the commercial component. This capacity assumption is based on past projects density yields in comparison to what the site could permit at the maximum. On average, a sample size of six past projects noted an average density yield of 83 percent (with the highest yield at 123 percent and lowest yield at 67 percent each).

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Parcels identified for mixed-use rezoning have potential to accommodate 318 very lowand low-income units , 84 moderate-income units, and 399 above moderate-income units. The location of these parcels are shown on Figure 1: 6th Cycle Housing Element Sites Inventory – All Sites.

HCD REVIEW
On July 5, 2023, the City of Scotts Valley formally submitted the Housing Element Update for HCD Review. On September 19, 2023, the City revised and resubmitted the Housing Element Update to HCD based on preliminary comments received in midSeptember. Revisions to the Housing Element included the following:
• Revisions to Chapter 2: Housing Plan to provide discrete timelines for select programs and policies and addition of programs in compliance with specific State Housing Laws
• Revisions to Appendix C: Housing Constraints to provide additional information on various governmental and non-governmental constraints as they relate to production of affordable housing in Scotts Valley
• Revisions to Appendix E: AFFH to provide more current information on the City’s Housing stock as it relates to regional housing stock, compliance with Fair Housing Laws, and background context on housing growth and production in Scotts Valley
• Revisions to Appendix F: Candidate Sites Inventory to provide more information on timing for Pipeline projects, the Town Center Specific Plan, and analysis for rezone sites
The City received formal comments from HCD on October 3, 2023. HCD comments requested additional information on the following items: housing needs, resources, constraints, housing programs, and public participation. On October 20, 2023, the City resubmitted the revised Housing Element for review to HCD. Revisions to the Housing Element included the following:
• Revisions to Appendix A: Review of Past Performance to analyze 5th Cycle Housing Element program effectiveness for specific special needs housing populations in Scotts Valley.
• Changes to Chapter 2: Housing Plan to refine timeframes for program implementation and revisions to programs based on updated Appendix A. • Revisions to Appendix B: Housing Needs Assessment to reflect updates to Appendix A and Chapter 2 related to the review of past performance and updated housing programs.

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• Revisions to Appendix C: Housing Constraints to elaborate on various governmental constraints and discussion of various programs that address the governmental constraints.
• Additional analysis added to Appendix E: AFFH revised to indicate how the location of sites in the candidate sites inventory affirmatively furthers fair housing. • Revisions to Appendix F: Candidate Sites Inventory to clarify the redevelopment potential and likelihood of development on rezone sites. Also included rezoning of select sites on Scotts Valley Drive from the mixed-use rezone strategy to the residential rezone strategy.

On November 21, 2023, the City received a comment letter from Santa Cruz YIMBY (Attachment 3) regarding additional comments on the Housing Element update. Staff are in the process of reviewing the comments.

ENVIRONMENTAL REVIEW
The Housing Element is exempt from further CEQA review per Section 15061(b)(3), given this project consists of activities covered by the “common sense exemption” that CEQA allows when a project would not cause a significant effect on the environment.

As proposed, the Housing Element would not result in any direct or indirect physical changes to the environment. The Housing Element is a policy document and does not provide entitlements to any specific land use projects. It does not make any changes to the General Plan land use map and does not modify any land use designations, allowed densities, or land use intensities currently established in the General Plan. It neither entitles, proposes, or otherwise requires the construction of new development or rehabilitation of existing development, nor does it change the rate or location of new development.

Rather, the goals, policies, and programs established by the Housing Element only facilitate the development, preservation, and rehabilitation of housing consistent with existing and planned uses, as identified in the General Plan and as mandated under State law. As such, the impacts of the proposed 6th Cycle Housing Element are also covered by the Environmental Impact Report that was certified by the City Council for the General Plan. The proposed modifications to the Housing Element do not create any impacts on the environment that were not previously evaluated as part of the General Plan.

All future proposed housing development projects submitted to the City will be reviewed pursuant to CEQA, when required, concurrent with other permitting and regulatory requirements. Similarly, any future policy changes will be evaluated for CEQA compliance prior to adoption of any such changes.

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NEXT STEPS
The deadline for Housing Element certification is December 2023. If the Planning Commission recommends approval of the Housing Element, the City Council will consider adoption of the Housing Element by that date. Until that time, staff will work with HCD to finalize the document and address any outstanding issues. It is anticipated that a Housing Element in substantial compliance with Housing Element Law as provided in Government Code section 65580 et seq. Will be presented to the City Council later this month. The timely development and implementation of a Housing Element is essential to avoid consequences that come from failing to do so. Among these could be the inability of the City to qualify for certain state or federal funding programs for transportation, infrastructure, and housing; shortened deadlines for completing any necessary rezones associated with Housing Element Law compliance; “Builder’s Remedy” projects 2; lawsuits from third party organizations or the State; suspension of local control on building matters; and fines. In a growing effort by the State to increase accountability and enforcement of new State housing laws and to better address the housing needs of Californians, HCD increased its accountability efforts and formed the Housing Accountability Unit (HAU). The HAU is in charge of holding jurisdictions accountable for their Housing Element commitments, as well as compliance with other State housing laws. Violations of these laws may lead to consequences including revocation of housing element certification and/or referral to the California Office of the Attorney General.

RECOMMENDATION
Staff recommends that the Planning Commission recommends that the City Council adopt the 2023-2031 Housing Element update and authorize staff to submit the Housing Element to HCD for certification.

FISCAL IMPACTS
There are no additional financial impacts anticipated as a result of this action. The cost of the Housing Element Update is included as part of the contract agreement approved by City Council on October 5, 2022.
2 Government Code section 65589.5(d)(5) prevents jurisdictions without a substantially compliant Housing Element from denying residential projects that meet specific requirements even if they do not comply with the Zoning Code or General Plan. These projects must be predominantly made up of residential uses and meet the affordability threshold.

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ATTACHMENTS
Attachment 1 – Resolution No. 1790
Attachment 2 – 2023-2031 Housing Element
Attachment 3 – Comment Letter – Santa Cruz YIMBY (Received November 21, 2023)

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RESOLUTION NO. 1790

A RESOLUTION OF THE CITY OF SCOTTS VALLEY PLANNING

COMMISSION RECOMMENDING THAT THE CITY COUNCIL ADOPT A
GENERAL PLAN AMENDMENT TO REPEAL THE 2015-2023 SCOTTS
VALLEY HOUSING ELEMENT AND ADOPT THE 2023-2031 HOUSING
ELEMENT OF THE GENERAL PLAN FOR THE PERIOD OF 2023-2031 AND

ADOPTING FINDINGS THAT THE PROJECT IS EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA), IN COMPLIANCE WITH STATE HOUSING ELEMENT LAW.

WHEREAS, the California Legislature has found that “California has a housing supply and affordability crisis of historic proportions. The consequences of failing to effectively and aggressively confront this crisis are hurting millions of Californians, robbing future generations of the chance to call California home, stifling economic opportunities for workers and businesses, worsening poverty and homelessness, and undermining the state’s environmental and climate objectives” (Gov. Code Section 65589.5.); and
WHEREAS, the Legislature has further found that “Among the consequences of those actions are discrimination against low-income and minority households, lack of housing to support employment growth, imbalance in jobs and housing, reduced mobility, urban sprawl, excessive commuting, and air quality deterioration” (Gov.

Code Section 65589.5.); and
WHEREAS, the Legislature recently adopted the Housing Crisis Act of 2019 (SB 330) which states that “[i]n 2018, California ranked 49th out of the 50 states in housing units per capita… California needs an estimated 180,000 additional homes annually to keep up with population growth, and the Governor has called for 3.5 million new homes to be built over 7 years”; and WHEREAS, the State Housing Element Law (Government Code Sections 65580, et seq.) requires that the City Council adopt a Housing Element for the eight-year period 2023-2031 to accommodate the City of Scotts Valley (City) regional housing need allocation (RHNA) of 1,220 housing units, comprised of 392 very-low income units, 257 low-income units, 154 moderate-income units, and 417 above moderate-income units; and
WHEREAS, California Government Code section 65300.9 states that with respect to the adoption and administration of general plans, “[t]he Legislature recognizes that the capacity of California cities and counties to respond to state planning laws varies due to the legal differences between cities and counties, both charter and general law, and to differences among them in physical size and characteristics, population size and density, fiscal and administrative capabilities, land use and development issues, and human needs” and further states that “the intent of the Legislature in enacting this chapter [is] to provide an opportunity for each city and

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2 county to coordinate its local budget planning and local planning for federal and state program activities, such as community development, with the local land use planning process, recognizing that each city and county is required to establish its own appropriate balance in the context of the local situation when allocating resources to meet these purposes”; and
WHEREAS, to comply with the State Housing Element Law, Scotts Valley has prepared the 2023-2031 Housing Element, dated December 2023, and incorporated herein by reference (the Housing Element) in compliance with the State Housing Element Law and has identified sites that can accommodate housing units meeting the City’s RHNA; and
WHEREAS, as provided in Government Code Section 65350, et. seq., adoption of the Housing Element constitutes a General Plan Amendment; and WHEREAS, as provided in Government Code Sections 65352 – 65352.5 the City mailed a public notice to all California Native American tribes provided by the Native American Heritage Commission and to other entities listed; and WHEREAS, the Housing Element must be adopted to comply with State law, accommodate the RHNA, affirmatively further fair housing, and facilitate and encourage a variety of housing types for all income levels, including multifamily housing (Gov. Code Sections 65583.2 and 65583(c)); and
WHEREAS, the preparation, adoption, and implementation of the Housing Element requires a diligent effort to include all economic segments of the community; and
WHEREAS, the City has conducted community outreach starting in early 2023, including two community workshops, one public meetings, two joint study sessions before the Planning Commission and City Council, and one-on-one meetings with property owners, developers, community members, and community-based organizations; and
WHEREAS, in accordance with Government Code Section 65585 (b), on May 19, 2023, the City posted the draft Housing Element and requested public comment for a 30-day review period, and on July 5, 2023, after responding to public comments and meeting with City Council and Planning Commission, the City submitted the draft Housing Element to the State Department of Housing and Community Development (HCD) for its review; and
WHEREAS, on September 19, 2023, the City resubmitted an updated Draft Housing Element addressing preliminary comments from HCD after completing a seven-day public review; and

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3 WHEREAS, on October 3, 2023, the City received a letter from HCD providing its comments and findings on the draft Housing Element; and WHEREAS, on October 20, 2023, the City resubmitted an updated Draft Housing Element addressing the comment letter received from HCD, after completing a seven-day public review; and
WHEREAS, on November 22, 2023, the City gave public notice of a Planning Commission public hearing to be held to consider adoption of the 2023-2031 Housing Element; and
WHEREAS, on December 7, 2023, the Planning Commission conducted a duly and properly noticed public hearing to take public testimony and consider this Resolution regarding the 2023-2031 Housing Element, reviewed the Housing Element and all pertinent maps, documents and exhibits, the staff report and all attachments, and oral and written public comments; and
WHEREAS, the City has determined that the Project is exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section §15061(b)(3) and Section §15332 of the CEQA Guidelines because it can be seen with certainty that there is no possibility that the proposed 2023-2031 Housing Element Update would have a significant effect on the environment.

NOW, THEREFORE, BE IT RESOLVED that the Planning Commission of the City of Scotts Valley based on the entire record of proceedings, including the oral and written staff reports and all public comment and testimony:

1. Finds that the foregoing recitals are true and correct and are incorporated by reference into this action; and

2. Finds that the 2023-2031 Housing Element substantially complies with Housing Element Law, as provided om Government Code section 65580 et seq., and contains all provisions required by Housing Element Law, including the City’s goals, quantifiable objectives, and policies to affirmatively further fair housing and the maintenance, preservation, improvement and development of housing per Government Code Section 65583(b), as shown in Exhibit A to this resolution; and

3. Finds that the 2023-2031 Housing Element shall be incorporated into the City’s General Plan as an element required by Government Code section 65302 and is consistent and compatible with the rest of the General Plan; and

4. Finds, as required by Government Code Section 65585(e), that the City has considered the findings made by HCD included in their letter to the City

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4 dated September 19, 2023, consistent with Government Code Section 65585(f), and the City has modified the Housing Element in response to the findings of HCD to substantially comply with the requirements of State Housing Element Law.

5. Recommends that the 2023-2031 Housing Element should be approved by the City Council and that the 2015-2023 Housing Element should be repealed; and

6. Directs the Community Development Director (Director) to transmit the recommendation to the City Council for its earliest action and review as provided by law; and further directs and authorizes the Director to make changes to the Housing Element as required to make it internally consistent, or to address any changes or amendments requested by HCD to achieve a finding of conformance with State Housing Element Law; and

7. Finds that the Project is exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section §15061(b)(3) of the CEQA Guidelines.

The above and foregoing resolution was duly and regularly adopted and passed by the Planning Commission of the City of Scotts Valley at a regular meeting held on the 7th day of December 2023, by the following vote:

AYES:

NOES:

ABSENT:

RECUSE:
_____________________________________
Lori Gentile, Chair
___________________________________________
Taylor Bateman, Community Development Director

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Scott Valley 6th Cycle Housing Element
2023 - 2031
HCD Letter Resubmittal
October 2023

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Page Intentionally Left Blank

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The Housing Element identifies and plans for the City
of Scotts Valley’s existing and projected housing
needs for all economic segments of the community,
as well as maintains compliance with all State
housing laws. It contains a detailed work program of
the City’s goals, policies, programs, and objectives
that preserve, improve, and ensure housing for a
sustainable future. Each eight-year planning cycle,
the City is allocated a specific number of housing
units to plan for – the Regional Housing Needs
Allocation (RHNA) – and is determined by the
Association of Monterey Bay Area Governments
(AMBAG). The RHNA quantifies current and future
housing growth for all jurisdictions within the region.

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

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T A B L E O F C O N T E N T S
Chapter 1: Introduction
Table of Contents ........................................................................................................................ 1-4 State Requirements ..................................................................................................................... 1-8 Regional Housing Needs Allocaiton .......................................................................................... 1-10 Relationship to Other General Plan Elements .......................................................................... 1-10 Public Participation ................................................................................................................... 1-11 Chapter 2: Housing Plan
Goals, Policies & Programs ......................................................................................................... 2-2 Quantified Objectives ................................................................................................................ 2-34 Housing Actions Implementation Summary ............................................................................. 2-35 Appendix A: Review of Past Performance
Program Evaluation for Households with Special Needs ........................................................... A-2

1. Seniors ............................................................................................................................ A-2

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

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

4. Single-Parent Households .............................................................................................. A-5

5. Persons Experiencing Homelessness .............................................................................. A-6

6. Farmworkers ................................................................................................................... A-7 2015-2023 Program Accomplishments ...................................................................................... A-9 Appendix B: Housing Needs Assessment
Population Characteristics .......................................................................................................... B-2

1. Population Growth ......................................................................................................... B-2

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

3. Race/Ethnicity Characteristics ........................................................................................ B-3 Economic Characteristics ............................................................................................................ B-5

1. Employment and Wage Scale ........................................................................................ B-5 Household Characteristics .......................................................................................................... B-8

1. Household Type ............................................................................................................. B-8

2. Household Size ............................................................................................................... B-9

3. Household Income .......................................................................................................... B-9 Housing Problems .................................................................................................................... B-12

1. Overcrowding .............................................................................................................. B-13

2. Overpayment (Cost Burden)......................................................................................... B-14 Special Needs Groups ............................................................................................................... B-15

1. Seniors ......................................................................................................................... B-15

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

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

4. Single-Parent Households ........................................................................................... B-21

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5. Farmworkers ................................................................................................................. B-22

6. Extremely Low-Income (ELI) and Poverty Status ......................................................... B-23

7. Persons Experiencing Homelessness ........................................................................... B-25

8. Students ........................................................................................................................ B-27 Housing Stock Characteristics ................................................................................................... B-27

1. Housing Growth ........................................................................................................... B-27

2. Housing Types ............................................................................................................... B-28

3. Housing Availability and Tenure ................................................................................... B-28

4. Housing Age and Conditions........................................................................................ B-30

5. Housing Costs and Affordability ................................................................................... B-32 Appendix C: Housing Constraints
Non-Governmental Constraitns .................................................................................................. C-2

1. Land Costs and Constructions ....................................................................................... C-2

2. Availability of Financing .................................................................................................. C-4

3. Economic Constraints ..................................................................................................... C-6 Environmental Constraints ......................................................................................................... C-7

1. Geological and Seismic Hazards .................................................................................... C-7

2. Sensitive Species and Habitats ....................................................................................... C-8

3. Cultural Resources .......................................................................................................... C-8

4. Flood Hazards ............................................................................................................... C-10

5. Fire Hazards .................................................................................................................. C-12 Govnernmental Constraints ...................................................................................................... C-13

1. Land Use Controls ........................................................................................................ C-13

2. Zoning Districts ............................................................................................................. C-17

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

4. Residential Development Standards ........................................................................... C-25

5. Mixed-Use Residential .................................................................................................. C-29

6. Housing for Persons with Disabilities ........................................................................... C-30

7. Planned Development Zones ....................................................................................... C-33

8. Local Ordinances ......................................................................................................... C-34

9. Specific Plans ................................................................................................................ C-40

10. Local Processing and Permit Procedures ..................................................................... C-45

11. Development Fees ....................................................................................................... C-51

12. On-/Off-Site Improvements ......................................................................................... C-54

13. Building Codes .............................................................................................................. C-55 Infrastructure Constraints ......................................................................................................... C-55

1. Dry Utilities .................................................................................................................. C-56

2. Water Supply ................................................................................................................ C-56

3. Fire and Emergency Services ........................................................................................ C-58

4. Police Services .............................................................................................................. C-58

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Appendix D: Housing Resources
Resources for Special Needs Groups .......................................................................................... D-2

1. Seniors ........................................................................................................................... D-2

2. Persons with Disabilities ................................................................................................ D-3

3. Persons Experiencing Homelessness ............................................................................. D-3 Financial Resources ..................................................................................................................... D-4

1. Section 8 Housing Vouchers .......................................................................................... D-4

2. Community Development Block Grants (CDBG) ........................................................... D-4

3. Home Investment Partnership Program ....................................................................... D-5

4. Local Early Action Planning (LEAP) Grant ...................................................................... D-5

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

6. Affordable Housing Programs ....................................................................................... D-5 Opportunities for Energy Conservation ....................................................................................... D-6

1. Energy Use and Providers .............................................................................................. D-6

2. Energy Conservation ...................................................................................................... D-6 Appendix E: Affirmatively Furthering Fair Housing
Assessment of Fair Housing Issues ............................................................................................. E-2

1. TCAC/HCD Opportunity Scores ...................................................................................... E-2

2. Patterns of Integration and Segregation ....................................................................... E-6

3. Access to Opportunities .............................................................................................. E-25

4. Disproportionate Housing Need and Displacement ................................................... E-36 Fair Housing Enforcement and Outreach Capacity................................................................... E-49

1. Fair Housing Enforcement and Outreach ..................................................................... E-49

2. Fair Housing Enforcement ............................................................................................ E-50 Contributing Factors ................................................................................................................. E-53 Historic Background ................................................................................................................... E-54

1. Affordable Housing ....................................................................................................... E-55 AFFH Summary ........................................................................................................................... E-55 Scotts Valley Drive Area ............................................................................................................. E-58 Mt. Hermon Road Area .............................................................................................................. E-60 Appendix F: Candidate Housing Sites
Candidate Sites Inventory ............................................................................................................ F-2

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

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

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

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

5. Infrastructure and Public Services Capacity ................................................................... F-4

6. Affirmatively Furthering Fair Housing (AFFH) ............................................................... F-4 Projected Development ............................................................................................................... F-5

1. Accessory Dwelling Units ................................................................................................ F-5

2. Pipeline Projects ............................................................................................................. F-7 Existing Residential Capacity ..................................................................................................... F-11

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1. Residentially Zoned Land ............................................................................................. F-11

2. Town Center Specific Plan ........................................................................................... F-13 Rezone Strategies ..................................................................................................................... F-18

1. Residential Rezones ..................................................................................................... F-18

2. Mixed-Use Rezones ..................................................................................................... F-20 Adequacy of Sites ...................................................................................................................... F-22

1. Availability of Water, Sewer, and Dry Utilities ............................................................ F-22

2. Larger and Smaller Parcels .......................................................................................... F-22

3. City-Owned Parcels...................................................................................................... F-23

4. Vacant Parcels ............................................................................................................. F-23

5. Non-Vacant Parcels ..................................................................................................... F-23

6. 5
th and 4th Cycle Housing Element Parcels .................................................................. F-27 Appendix G: Community Engagement
Summary of Community Engagement ........................................................................................ G-2

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

2. Community Workshop #2 ............................................................................................... G-3

3. Joint City Council and Planning Commission Study Sessions ........................................ G-3

4. Engaging Special Housing Needs Populations ................................................................ G-3

5. Housing Element Webpage ........................................................................................... G-5 Public Comments ........................................................................................................................ G-6 Appendix H: Glossary of Terms
Glossary ....................................................................................................................................... H-2 Acronyms .................................................................................................................................. H-12

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

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

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

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H O U S I N G
I N T R O D U C T I O N | 1 - 9
Table 1-1: Housing Element Requirements
Housing Element Requirement(s) Government Code
Chapter
Section
Reference
Analysis of employment trends. Section 65583.a Appendix B Projection and quantification of existing and projected housing needs for all income groups. Section 65583.a Appendix B
Analysis and documentation of the City’s housing characteristics, including cost for housing compared to ability to pay, overcrowding, and housing condition.

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

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

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

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

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

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

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

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

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

The Housing Element must remain consistent with each of these Element.  Land Use
 Circulation
 Open Space and Conservation
 Noise
 Safety
 Public Service and Facilities
 Parks and Recreations
The Land Use Element is the guide for decision makers on the pattern, distribution, density, and intensity of land uses that help the City achieve its vision for the future. By designating

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residential development, the Land Use Element establishes the densities and types of housing units constructed in the City. Land use patterns and decisions are influenced by:
 Population
 Economic growth (which create
market demand)
 Transportation access and
opportunities
 Availability of infrastructure
 Environmental constraints
 Quality of life reflected in parks
and recreational actives
 Look and feel of the City
 Cultural amenities
The presence and potential for jobs affects the current and future demand for housing at the various income levels in the City.

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

The Housing Element has been reviewed for consistency with the 1994 General Plan Elements; policies and programs are generally consistent with the policy direction contained in other parts of the Scotts Valley General Plan. The Land Use Element will need to be revised to include the rezones proposed in this Housing Element. As the General Plan is currently undergoing an update, it will need to consider the policies and programs included in the Housing Element for consistency.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Actions:
 Residential Rezones: Adopt a zoning ordinance and General Plan Land Use amendment to rezone 4.23 acres on 6 parcels (identified in Appendix F) to permit residential uses ranging up to a density of 40 dwelling units per acre. The rezoning would accommodate 168 units, including 65 lower income units.
 Mixed‐Use Rezones: Adopt a zoning ordinance and General Plan Land Use amendment to rezone 36.6 acres on 29 parcels (identified in Appendix F) to permit mixed‐use developments ranging up to a density of 40 dwelling units per acre with up to 70 percent residential.

The rezoning would accommodate 801 units, including 318 lower income units.
 Town Center Specific Plan: Adopt a Specific Plan amendment to allow for residential development at the scale established in Appendix F:

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 The City is in contract to remediate surface soil contamination by December 2023. Remediation efforts have begun as of October 2023.
 By December 2025, amend the Specific Plan to increase the density for residential uses on the City‐owned sites identified in Appendix F.  By December 2026, complete the necessary rezonings to accommodate the increased density.
 Continue to implement appropriate zoning to ensure that adequate sites are available (as defined by Government Code section 65583) to accommodate the City’s RHNA for all income categories.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Adopt rezones within 3 years of the 6th Cycle Housing Element statutory deadline Program H‐1.2 By‐Right Development Program
AB 1398 states that a jurisdiction which cannot identify sufficient sites to adequately accommodate its regional housing need must commit to rezone properties within three years to allow “by‐right” development of 20 percent Below Market Rate (BMR) projects.

Additionally, AB 1397 amended Housing Element Law to require that sites identified in prior Housing Elements must be allow residential developments “by‐right” if they offer at least 20 percent affordable units and meet the standards established by the Government Code.

The City will establish a By‐Right Development program to comply with State law and all requirements established in Government Code section 65583.2 (c), (h), and (i).

Actions:
 Adopts and implement a By‐Right Development Program to comply with the AB 1398 and 1397 requirements, as well as requirements established in Government Code section 65583.2 (c), (h), and (i).

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: By January 2025
Program H‐1.3 Sites Inventory Monitoring Program
Establish a Sites Inventory Monitoring Program consisting of an ongoing record of the number of units and income categories of the development approved on sites listed in the Housing Element, to ensure that the City at all

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times maintains an ongoing supply of available sites with appropriate densities to meet projected housing needs for all income categories. As part of the Annual Progress Report, the City will monitor the progress of pending projects, ADU projections, and development on City‐owned parcels, parcels with existing residential capacity, and rezoned parcels. If residential development is not sufficiently progressing towards building permits or if the City is not meeting the pro‐rated share of the RHNA at all income levels by midway through the planning period, the City will evaluate its sites inventory and capacity to maintain adequate sites throughout the planning period and, if necessary, identify strategies to streamline and/or assist projects through entitlement (including, but not limited to, technical assistance, expedited review, and/or support of funding applications), adopt amendments to the ADU development regulations, or implement other strategies, such as General Plan and zoning changes to allow for greater residential densities.

The City will also make findings required by ‘no net loss’ law (Section 65863) if projects are approved with fewer units or different income categories than shown in the Housing Element. If project approval results in fewer units in any income category to meet the City’s remaining RHNA, take action, including rezoning, within 180 days to make adequate sites available.

Actions:
 Establish and maintain a Sites Inventory Monitoring Program.  Adopt findings with each City approval for residential projects identifying the breakdown of units by income category and establish whether ‘no net loss’ findings to be made, if either fewer units are developed than shown in the housing element, or if the units are being developed in different income categories than projected. If ‘no net loss’ findings must be made, the City must either find that it is maintaining enough sites to accommodate the remaining RHNA, or if there are not enough sites to accommodate the remaining RHNA. If there are not enough sites, the City has 180 days to make adequate sites available.
 Annually monitor the progress of pending projects, ADU projections, and development on City‐owned parcels, parcels with existing residential capacity, and rezoned parcels through the APR.  If residential development is not sufficiently progressing towards building permits or if the City is not meeting the pro‐rated share of the RHNA at all income levels by December 2028, the City will identify strategies to maintain adequate sites throughout the planning period.

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Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Establish a Sites Inventory Monitoring Program by January 2025; adopt findings with each City‐approval for residential projects on a Housing Element site; annually monitor development progress through the APR.

Program H‐1.4 Planned Development
Provide development flexibility through the Planned Development District (PD). The PD District is designed to enable projects to modify specific development standards for a site that facilitate quality development and respond to unique site or environmental conditions. For example, a PD district allows for increased site intensities, location and height than normally allowed under the Zoning Code. In these cases, the PD district provides a means of flexibility to secure modifications to otherwise set development standards. PD districts are not pre‐established throughout the City; rather, an applicant would apply for one if they were seeking to modify specific development standards.

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

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

Program H‐1.5 Accessory Dwelling Unit Program
The City shall facilitate the development of Accessory dwelling units (ADUs; also referred to as secondary dwelling units or “granny units”) per State law requirements. ADUs are accessory to a primary residence and include complete independent living facilities. ADUs may be detached or attached to the primary structure; converted existing space, such as a garage, storage area, or similar use; or a Junior ADU (JADU) which is entirely contained within an existing or proposed single‐family residence. Existing single‐family parcels may provide a cost‐effective solution for current housing needs through ADU development.

State law updates since 2016 have played an important role in facilitating ADU development. The City will modify its current “Secondary Dwelling Unit Program” from the 5th Cycle Housing Element to comply with changes in State law regarding ADUs. This will include updating the City’s “Secondary Dwelling Unit” to comply with State law.

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

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

Actions:
 Modify the current “Secondary Dwelling Unit Program” from the 5th Cycle Housing Element to comply with changes in State law regarding ADUs. This will include updating the City’s “Secondary Dwelling Unit” Ordinance in compliance with State ADU laws. Submit revised ordinance to HCD in compliance with State law.
 Establish and promote permit‐ready ADU plans to minimize design costs, expedite permit processing, and provide development certainty.  Establish and maintain an ADU Manual guiding applicants through the permitting and construction of an ADU.
 Establish and maintain an ADU webpage informing the community on ADU related codes, processes, and incentives.
 Establish an incentive program for deed‐restricted affordable ADUs such as waived permitting fees and/or priority processing.  Establish an ADU monitoring program, and by the mid‐cycle point of the planning period, if assumptions for production and affordability are not meeting what was assumed, then the City will implement changes within one year. Changes include, but are not limited to, additional outreach and incentives. If the gap between assumptions and production is “large” then the City will identify additional capacity in the inventory and rezone, if applicable.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Amend the “Secondary Dwelling Unit Program” by January 2025; Establish permit‐ready ADU plans, an ADU Manual, an ADU webpage, an incentives program by January 2026. Monitor ADUs annually through the APRs and if assumptions for production and affordability are not meeting what was assumed then the City will implement changes within one year.

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Program H‐1.6 Removal of Residential Development Constraints The City shall facilitate housing development, particularly affordable housing, by reviewing residential development standards for possible constraints. The City will continue to monitor development trends and meet with the development community to discuss the permitting and development process.

As of May 2023, the City requires two parking spaces for each multi‐family dwelling units, plus one space for each five units. Per HCD guidance, this requirement may create a constraint to the development of affordable housing units. The City will conduct research and adopt changes to the parking requirements to address this constraint, including, but not limited to, a sliding scale based on the number of bedrooms or a set reduced requirement no greater than 2 spaces per unit.

Through the rezoning process, the City shall review its applicable residential development standards and may amend or establish certain standards for the identified zones, including, but not limited to, height limits. The City will not establish more constrictive development standards during rezoning.

Actions:
 Conduct a comprehensive study of residential development standards applicable to developments in zones that permit residential uses to determine which standards are potential constraints to housing.  Adopt a Zoning Ordinance amendment to residential development standards to address and reduce constraints, including parking requirements for multi‐family developments such as, but not limited to, a sliding scale based on the number of bedrooms or a set reduced requirement no greater than 2 spaces per unit.
 Annually review development trends and biennially meet with the development community to receive input and feedback. If constraints are identified that inhibit the development of affordable housing, adopt changes within two years.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Conduct a study of development standards by zoning designation within one year of the Housing Element Statutory deadline; Adopt an amendment to the Zoning Ordinance by January 2026; Annually review development trends and biennially meet with the development community; if constraints are identified throughout the Planning Period, adopt changes within two years.

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Program H‐1.7 Mixed‐Use Development
The City shall continue to allow for mixed‐use developments along corridors to create opportunities for higher density residential paired with commercial uses that promote convenient access to jobs, shopping services, recreation, and multi‐modal transportation. Residents in these developments and adjacent neighborhoods may benefit from less dependency on single‐vehicle occupancy resulting in decreased congestion, reduced emissions, and decreased household expenses for vehicle use.

Through Program H‐1.1, the City shall rezone 29 parcels to allow for a density of up to 40 dwelling units per acre and a residential component of 70 percent in order to facilitate the development of 801 possible units.

Actions:
 Adopt development incentives, such as, but not limited to, decreasing the commercial component for projects that include a greater number of affordable units, for candidate sites identified for mixed‐use rezoning.
 Annually meet with the development community and property owners to identify development opportunities and interest.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Adopt development incentives in conjunction with the rezones; annually meet with the development community and property owners
Program H‐1.8 Facilitation of Affordable Housing Development In addition to rezoning strategies to facilitate affordable housing development, the City shall expand the existing Inclusionary Housing Ordinance city‐wide which require developers of housing units to restrict some units to moderate‐, low‐, very low‐, and/or extremely low‐income households. The City shall also collaborate with affordable housing developers to identify opportunities, incentives, and funding to facilitate affordable housing development.

Actions:
 Amend the City’s Inclusionary Housing Ordinance to apply city‐wide, restrict units based on affordability.
 Annually meet with the development community and property owners.

Based on the feedback received, adopt changes, incentives, and seek funding to facilitate affordable housing development.
 Create and maintain information on the City’s website on the development of affordable housing.

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Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Amend the Inclusionary Housing Ordinance by January 2027; Meet with the development community and property owners annually; create an informational webpage by January 2027 Program H‐1.9 Senate Bill 330
The City shall continue to comply with SB 330 restrictions for residential developments. This includes: 1) suspending enactment of local downzoning and housing construction moratoriums; 2) requiring timely processing of housing permits following existing local zoning rules; 3) lifting required parking minimums; 4) eliminating certain fees on low income units; 5) postponing requirements for voter approval of zoning, general plan changes; 6) protecting rent controlled or Section 8 units from demolition; and 7) requiring resettlement benefits and first right of refusal in new units or compensation for rehousing for renters who may be displaced.

Actions:
 Continue to comply with SB 330 restrictions.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Through the end of the SB 330 10‐year timeframe.

Program H‐1.10 Surplus Land Act
The Surplus Lands Act (SLA) of California (Government Code Section 54220 et. seq.) and AB 1486 (2019) requires the City to declare property to be “surplus land” before the City can take any action (sale or lease) to dispose of the property. Surplus land is land deemed not necessary for a local agency’s use, including that according to a local agency’s plan, including but not limited to, utility sites or land used for conservation purposes. The City will maintain a list of all surplus City‐owned lands, including identification of address, APN, General Plan land use designation, zoning, current use, parcel size, and status (surplus land or exempt surplus land), in accordance with State Housing Law. In accordance with State Housing Law, should surplus land be identified in the future, the City will work with non‐profits and public agencies to evaluate the feasibility of transferring surplus city‐owned lands not committed to other City purposes for development of affordable housing by the private sector. The inventory will be updated annually in conjunction with the Annual Progress Report program. Any disposition of future surplus lands shall be conducted consistent with the requirements of Government Code Section 54220 et. seq.

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The City has identified sites in the Appendix F that are owned by the City and are planned to accommodate a portion of the City’s Regional Housing Needs Allocation (RHNA) during the Planning Period. In accordance with the Surplus Lands Act, these sites are planned to be put out to competitive bid and sold to a developer as part of a mixed use project. The project will be larger than one acre mixed use development with a minimum of 300 residential units, at least 25% of which are reserved for lower income households.

Actions:
 By December 2026, declare City‐owned sites (APNs 022‐721‐06, 022‐ 212‐19, 022‐601‐01) as surplus and approve a resolution making the findings that the project will be put out to competitive bid and will be larger than one acre mixed use development with a minimum of 300 residential units, at least 25% of which are reserved for lower income households. A successful bidder will be required to enter into a regulatory agreement establishing the minimum affordability requirements.
 The City shall provide assistance to a successful bidder by offering technical assistance; facilitating entitlements; assisting with funding, as available, and/or supporting funding applications.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: By December 2026, declare City‐owned sites (APNs 022‐721‐06, 022‐212‐19, 022‐601‐01) as surplus and approve a resolution making the findings that the project will be put out to competitive bid and will be larger than one acre mixed use development with a minimum of 300 residential units, at least 25% of which are reserved for lower income households.

Program H‐1.11 Non‐Vacant Sites Development
The City has identified a number of non‐vacant candidate sites to accommodate future potential housing development. These sites were assessed for their likelihood and potential for redevelopment. To facilitate the residential development of these non‐vacant candidate sites, the City will provide additional incentives such as, but not limited to, technical assistance, support funding applications, and reduced development standards.

Actions:
 Provide additional incentives on a project‐by‐project basis such as, but not limited to, technical assistance, support funding applications, and reduced development standards.
 Engage property owners annually to discuss development opportunities.
 See Program H‐1.3 for additional actions should development not occur as anticipated in this Housing Element.

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Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Provide incentives on a project‐by‐project basis; Engage property owners annually Goal H‐2 Foster high‐quality, safe, and livable housing and residential neighborhoods through the preservation of Scotts Valley’s current housing stock. Preserve the City’s supporting services and programs that are intended to maintain and preserve the quality, the continued availability, and the affordability of housing and the City’s residential neighborhoods.

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

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

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

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

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

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

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Actions:
 Continue to implement an active code enforcement program through the Building Department and inform residents of rehabilitation assistance grants when available at City Hall and on the City’s website. Also continue to offer online and physical forms for residents to submit Code Enforcement complaints through.
 Conduct a biennial review of code enforcement cases to identify potential trends in the location or type of case. Adopt prevention and assistance programs if trends are identified to proactively decrease future issues.

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

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

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

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

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

Actions:
 Continue to maintain the Affordable Housing Opportunities Database with detailed information on all subsidized units, including those that have affordability covenants.
 Pursue funding sources such as HUD Section 208/811 loans, HOPE II and II Homeownership Program funds, HOME funds, CDBG funds, Low‐Income Housing Tax Credit Programs, California Housing Finance Agency single‐family and multi‐family programs, and other similar programs to stimulate private developer and non‐profit entity efforts in the development and financing of housing for lower and moderate‐ income households.
 Pursue partnership opportunities with non‐profits to preserve and expand affordable housing in the City, as well as to provide educational opportunities and assistance for tenants.
 Pursuant to Government Code sections 65583.2(g)(3), 65915(c)(3), and 66300(d), ensure that when existing housing is demolished, at least an equivalent number of units are created, and that lower income housing and relocation payments are required as specified by these statutes.
 Coordinate with property owners to preserve affordable units at risk to maintain and extend affordability. This may include technical assistance, funding application support, and/or recommending agencies or organizations that may provide additional assistance.  Comply with noticing requirements pursuant to Government Code section 65863.10.

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

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

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

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

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

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

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Program H‐2.6 Development of Large Lots
The City shall adopt a program to facilitate the development of lots larger than ten acres, particularly for the development of affordable housing units.

This includes, but is not limited to, streamlining parcelization of these large sites and providing technical assistance to property owners and developers seeking to develop a parcel over ten acres.

The City shall provide information on this program online and promote it as an option when meeting with potential developers and property owners.

Actions:
 Adopt and implement a program to facilitate the development of lots larger than ten acres.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Adopt and implement the program by January 2026 Program H‐2.7 SB 35 Streamlining
The City shall establish written procedures to comply with California Government Code Section 65913.4 and publish those procedures for the public, as appropriate, to comply with the requirements of Senate Bill 35 (SB 35), Chapter 366 Statutes 2017. These requirements apply at any point in time when the City does not meet the State mandated requirements, based upon the SB 35 Statewide Determination Summary Report for Housing Element progress and reporting on Regional Housing Needs Assessment (RHNA). The City shall process development projects with at least 50 percent affordable units through a streamlined permit process set forth in State law.

All projects covered by SB 35 are still subject to the objective development standards of the Municipal Code, including the Building and Fire Codes.

However, qualifying projects cannot be subject to discretionary review or public hearings; and in many cases, the City cannot require parking. Reduced parking requirements would be established consistent with the requirements of SB 35 for qualified streamlining projects.

Actions:
 Establish SB 35 procedures and provide information online.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Establish and implement the program by January 2026

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Program H‐2.8 Lot Consolidation
In its candidate sites inventory, the City has identified sites that are less than half‐an‐acre in size. The City will facilitate the consolidation of vacant and underutilized lots for residential development through incentives such as, but not limited to, technical assistance, reduction in lot size and setback requirements, and/or parking reductions. Consolidation will provide the opportunity to develop vacant and underutilized lots to their fullest potential. The City will evaluate the appropriateness of a variety of incentives and provide this information to the developers and other interested parties through the City’s website and at City Hall.

Actions:
 Facilitate the consolidation of vacant and underutilized lots or residential development.
 Adopt and promote incentives online and at City Hall.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Adopt and implement the program by January 2026

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

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

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

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

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

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

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

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

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

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

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

Census tracts

12.08, 12.09,

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

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

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

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

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

City‐wide with
a goal of
addressing
RCAAs.

As new units and
resources become
available; annually
throughout the Planning
Period
Affirmatively further fair housing for Black, Indigenous, and other People of Color, particularly those disabilities by facilitating the development of extremely low‐income units. Aim to develop 20 new extremely low‐income units.

City‐wide Throughout the Planning
Period
New Housing Choices and Affordability in Areas of Opportunity Continue to implement the Inclusionary Housing Below Market Rate (BMR) Program. See Action H‐1.8.

City‐wide and
on candidate
sites.

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

City‐wide and
with added
focus on single‐
family
neighborhoods.

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

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

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

Census tracts

12.08, 12.09,

12.12. Annually and as issues are
raised

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Actions Geographic
Target Timeframe
Establish specific incentives for the development of affordable units in the RCAAs including, but not limited to, permit streamlining and reduced fees.

Census tracts

12.08, 12.09,

12.12. By January 2026
See Program H‐1.1 for rezone strategies.

Place‐Based Strategies to Encourage Community Conservation and Revitalization Create and promote informational materials on housing
accessibility, rehabilitation, and maintenance resources.

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

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

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

City‐wide Annually; adopt
necessary changes within
6 months
Continue to refer fair housing discrimination issues to the Civil Rights Department (CRD), including inquiries regarding landlord‐ tenant mediation and tenant rights.

City‐wide Annually throughout the
Planning Period
Establish an accessibility program to improve access to housing, transit, public buildings and facilities, sidewalks, pedestrian crossings, and businesses for persons with disabilities.

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

City‐wide Annually throughout the
Planning Period
Provide information and educational materials on fair housing services for property owners, apartment managers, and tenants at City Hall and online.

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

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

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

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

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

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continue to implement the Reasonable Accommodation Ordinance adopted in 2014.

The City shall also amend its Reasonable Accommodations findings in accordance with applicable fair housing laws.

Actions:
 Maintain updated information online on the reasonable accommodation ordinance, including information on the application process, fees, and requirements.
 Revise reasonable accommodation process to ensure that reasonable accommodation requests may only be denied in accordance with findings required by applicable fair housing laws.
 Amend the reasonable accommodations findings to remove subjective language.

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

Actions:
 Review and identify regulatory incentives that will encourage the construction or rehabilitation of housing for persons with developmental disabilities with necessary supportive services.  Seek and apply for State and Federal funding to support housing construction for persons with developmental disabilities.  Collaborate with housing developers and local organizations to identify the needs of local persons with developmental disabilities.

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Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Review regulatory incentives by January 2027; Annually seek funding opportunities; Biennially collaborate with developers and organizations Program H‐3.6 Housing for Lower Income Households
The City shall work with developers and property owners in identifying development options to create affordable housing units for extremely low‐, very low‐, and low‐income households who may have limited housing options in Scotts Valley. The City will also seek out and encourage nonprofit organizations to sponsor affordable housing projects in the City. This may include agencies assisting lower income households, senior citizens, disabled persons, developmentally disabled persons, and other persons with special housing needs. The City will direct interested agencies/sponsors to potential sites and collaborate with them on applications for state and federal funding.

To further the efforts the Housing Authority of Santa Cruz County provides the Project‐Based Voucher Program to achieve deeper affordability levels for more units in planned affordable housing developments.

Actions:
 Coordinate with housing developers, property owners, and local organizations to identify development opportunities, funding resources, and incentives.
 Meet with housing developers to discuss available programs and fundings sources to develop housing units affordable to lower income households.
 Continue to offer streamlining for affordable housing development.  City to maintain up‐to‐date information about financial resources on its website for residents and developers.
 The City is to investigate additional incentives and seek funding opportunities to encourage development of housing for extremely low‐income households. The City will also support funding applications for affordable housing developments that include units affordable to extremely low‐income households.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Annually coordinate and meet with developers, property owners, and local organizations

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Program H‐3.7 Definition of Family
The City’s Municipal Code currently 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.” The City shall amend its definition of “Family” to remove limitations to the number of unrelated persons and differentiation between related and unrelated individuals living together.

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

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

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

Sections 17021.5 and 17021.6 of the State Health Safety Code are part of the Employee Housing Act, and it sets standards for the construction, maintenance, use, and occupancy of living quarters called “employee housing” as defined in Section 17008 of the Health and Safety Code. The intent of these two sections is to broaden opportunities for agricultural employee housing in single‐family residential zoning districts.

Actions:
 Adopt a zoning ordinance amendment to permit employee housing in single‐family residential zones, consistent with the requirements of Health and Safety Codes Section 17021.5 and 17021.6 as it relates to agricultural and employee housing.

Responsible Agency: Planning Departments
Funding Source: General Fund
Timeframe: By January 2025
Program H‐3.9 Emergency Shelters
The City shall facilitate the development of emergency shelters and similar housing types to address the needs of persons experiencing homelessness or those at‐risk of homelessness. While persons experiencing homelessness represent a small percent of the Scotts Valley population, they represent an important segment of the regional population for whom housing and

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assistance must be addressed. No emergency shelters are currently located within the City’s boundaries; however, they are permitted without discretionary permits in the C‐SC, P, and C‐S districts.

Actions:
 Amend the City’s Zoning Ordinance for parking requirements for emergency shelters in compliance with AB 139.
 Within one year, identify a zone, and amend development standards as appropriate, that will allow emergency shelters by‐right (without discretion). The City will ensure that zone also allows residential uses in compliance with AB 2339 (statutes of 2022).
 Adopt a Zoning Ordinance amendment to expand the definition of “emergency shelters” to include other interim interventions, including, but not limited to, navigation centers, bridge housing, and respite or recuperative care.
 Create and monitor an inventory of sites appropriate to accommodate emergency shelters and work with the appropriate organizations to ensure the needs of homeless and extremely low‐ income residents are addressed.
 Prioritize available funding and other available incentives for projects that provide housing for homeless and extremely low‐income residents.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Adopt amendments and create an inventory of sites to accommodate emergency shelters by December 2024; Prioritize funding and other incentives on a project‐by‐project basis Program H‐3.10 Density Bonus Ordinance
The City shall update its Density Bonus Ordinance to comply with State law (Government Code Section 65915 et seq.), as well as promote the Program as a means of developing additional affordable housing units. State density bonus law (Government Code Section 65915 et seq.) requires a density bonus of up to 50 percent for mixed income projects when a qualifying percentage of Below Market Rate (BMR) units are proposed. Entirely affordable projects are entitled to unlimited bonuses in some cases and up to 80 percent bonuses in other cases. State density bonus law also authorizes an applicant to receive incentives/concessions, waivers, and parking reductions.

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Actions:
 Adopt a Density Bonus Ordinance amendment to bring policies into compliance with State density bonus law (Gov Code Section 65915 et seq).
 Promote the Density Bonus Ordinance to multi‐family developers on a project‐by‐project basis to promote affordable housing unit development.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: By January 2026; on a project‐by‐project basis Program H‐3.11 Low Barrier Navigation Centers
The City shall adopt a zoning ordinance amendment to approve by‐right low‐ barrier navigation centers that meet State requirements in mixed‐use and non‐residential zones permitting multifamily uses. Low‐barrier navigation centers are generally defined as service‐enriched temporary living facilities focused on the transition of persons experiencing homelessness or at‐risk of becoming homeless into permanent housing. Low‐barrier navigation centers connect individuals to income, public benefits, health services, and housing.

Government Code section 65660 et seq. requires by‐right approval of low‐ barrier navigation centers that meet specified State requirements, including:
access to permanent housing, use of a coordinated entry system (i.e.

Homeless Management Information System), use of Housing First according to Welfare and Institutions Code section 8255 (Government Code section 65662).

Actions:
 Adopt a zoning ordinance amendment to approve low‐barrier navigation centers that meet State requirements by‐right in mixed‐ use and non‐residential zones permitting multifamily uses.

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

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a notice of intent to convert has been filed and give tenants the priority to purchase units.

Actions:
 Adopt a Condominium Conversion Ordinance to preserve the existing, and future, rental housing stock by establishing a maximum percent of the City’s total housing stock that can be converted over a certain period of time.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: By January 2026
Program H‐3.13 Single‐Room Occupancy (SRO) Units
Single‐Room Occupancy (SRO) units may provide a valuable source of affordable housing for individuals and may serve as an entry point into the housing market for persons who previously experienced homelessness.

The City shall adopt a description of SRO units in its Municipal Code and adopt zoning and processing procedures for future projects.

Actions:
 Define SRO in the Municipal Code.
 Adopt zoning and processing procedures for SROs.
 Collaborate with local organizations and agencies to discuss the needs of persons who previously experienced homelessness.
 Support, and when possible, fund local and regional efforts to address the housing needs of persons in Scotts Valley who have or are experiencing homelessness.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: Adopt a definition, zoning, and processing procedures for SROs by January 2026. Annually collaborate with organizations; annually seek funding opportunities.

Program H‐3.14 Replacement Unit Program
The City shall adopt a policy and will require replacement housing units subject to the requirements of Government Code section 65915, subdivision (c)(3) on sites identified in the site inventory when any new development (residential, mixed‐use or nonresidential) occurs on a site that is identified in the inventory meeting the following conditions:

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 Currently has residential uses or within the past five years has had residential uses that have been vacated or demolished, and  Was subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of low or very low‐ income, or
 Subject to any other form of rent or price control through a public entity’s valid exercise of its police power, or
 Occupied by low or very low‐income households.

Actions:
 In order to mitigate the loss of affordable housing units, require new housing developments to replace all affordable housing units lost due to new development.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: The replacement requirement will be implemented immediately and applied as applications on identified sites are received and processed, and local policy shall be adopted by January 2026.

Program H‐3.15 Supportive Housing
The City shall adopt a zoning ordinance amendment to approve by‐right supportive housing developments that meet State requirements. Supportive Housing development is generally defined as housing with no limit on length of stay, that is occupied by the target population, and that is linked to onsite or offsite services that assist the supportive housing resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community; as defined by Section 50675 of the California Health and Safety Code. Government Code section 65651 requires by‐right approval of supportive housing in zones that allow for multi‐family or mixed use residential if the proposed housing development meet specified State requirements: provision on onsite supportive services, affordability restrictions.

Action
 Adopt a Zoning Ordinance amendment to approve supportive housing developments that meet State requirements by‐right in mixed use zones.

Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: By January 2026.

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Program H‐3.16 Group Homes
Group homes are currently permitted in all residential zoning districts for 6 or fewer occupants or with approval of a conditional use permit for 7 or more occupants. The City will adopt a Zoning Ordinance definition for “group home.” The City will also adopt revisions to its Zoning Ordinance to permit group homes, in compliance with State law, as detailed below:
 Allow group homes that operate as single‐family residences and that do not provide licensable services to locate in single‐family neighborhoods, subject only to the generally applicable, nondiscriminatory health, safety, and zoning laws that apply to all single‐family residences.
 Allow group homes that operate as single‐family residences and that provide licensable services to six or fewer residents to locate in single‐family neighborhoods, subject only to the generally applicable, nondiscriminatory health, safety, and zoning laws that apply to all single‐family residences.
 Ensure that any permitting or approval requirements for group homes that provide licensable services to seven or more residents are consistent with state housing laws.

Action
 Adopt a Zoning Ordinance amendments and update applicable application procedures for group homes in compliance with state law and to promote objectivity and greater approval certainty similar to other residential uses.
 Adopt a Zoning Ordinance definition for “group home.” Responsible Agency: Planning Department
Funding Source: General Fund
Timeframe: By January 2026.

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Goal H‐4 Protect its unique sensitive environmental, archaeological, and paleontological assets and encourage resource conservation measures in all new housing developments.

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

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

Policy H‐4.3 Development Integration into Natural Landscape Require that all residential developments be thoughtfully integrated into the natural environment, including woodlands, hillsides, viewsheds, wetlands, and other features of the natural terrain.

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

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

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

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

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

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

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

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

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

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Quantified Objectives
Table 2‐1 summarizes the City’s quantified objectives for the 6th planning cycle by income level.

Table 2‐1: 6th Cycle Quantified Objectives
Objectives
Units by Income Level
Extremely/
Very Low Low Moderate AboveModerate Total
6th Cycle RHNA 392 257 154 417 1,220
Residential Rezones 65 14 89 168
Mixed‐Use Rezones 318 84 399 801
Accessory Dwelling Units 24 12 4 40
Surplus Land Act 309 39 191 539
Preservation of at‐risk units 22 0 0 22
Units in need of
rehabilitation 5 0 0 5
Housing Choice Vouchers 20 0 0 0
Housing Mobility 20 0 0 0 0
Place‐Based Strategy to
provide repair and
rehabilitation assistance
20 0 0 0

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Housing Actions Implementation Summary
Table 2‐2: Housing Program Implementation Summary
Housing Program Actions Responsible Agency Funding Source Timeframe Goal 1Program H‐1.1
6th Cycle Regional Housing Needs Allocation
Residential Rezones: Adopt a zoning ordinance and General Plan Land Use amendment to rezone 4.23 acres on 6
parcels (identified in Appendix F) to permit residential uses ranging up to assumed a density of 40 dwelling units per acre. The rezoning would accommodate 168 units,
including 65 lower income units.

PlanningDepartment
General Fund Adopt rezones within 3
years of the 6th Cycle
Housing Element statutorydeadline.

Mixed‐Use Rezones: Adopt a zoning ordinance and General Plan Land Use amendment to rezone 36.6 acres on 29
parcels (identified in Appendix F) to permit mixed‐use
developments ranging up to a density of 40 dwelling units per acre with up to 70 percent residential. The rezoning would accommodate 801 units, including 318 lower income units.Town Center Specific Plan: Adopt a Specific Plan
amendment to allow for residential development at the
scale established in Appendix F:
 The City is in contract to remediate surface soil
contamination by December 2023. Remediation
efforts have begun as of October 2023.
 By December 2025, amend the Specific Plan to
increase the density for residential uses on the
City‐owned sites identified in Appendix F.
 By December 2026, complete the necessary
rezonings to accommodate the increased density.

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

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Housing Program Actions Responsible Agency Funding Source Timeframe Program H‐1.2
By‐Right Development Program
Adopts and implement a By‐Right Development Program to
comply with the AB 1398 and 1397 requirements, as well
as requirements established in Government Code section65583.2 (c), (h), and (i)..

PlanningDepartment
General Fund By January 2025
Program H‐1.3
Sites Inventory Monitoring Program
Establish and maintain a Sites Inventory Monitoring
Program.

PlanningDepartment
General Fund Establish a Sites Inventory
Monitoring Program by
January 2025; adopt
findings with each City‐
approval for residential
projects on a Housing
Element site; annually
monitor developmentprogress through the APR.

Adopt findings with each City approval for residential
projects identifying the breakdown of units by income
category and establish whether ‘no net loss’ findings to be made, if either fewer units are developed than shown in the housing element, or if the units are being developed in different income categories than projected. If ‘no net loss’ findings must be made, the City must either find that it is maintaining enough sites to accommodate the remaining
RHNA, or if there are not enough sites to accommodate the remaining RHNA. If there are not enough sites, the City has 180 days to make adequate sites available.

Annually monitor the progress of pending projects, ADUprojections, and development on City‐owned parcels,parcels with existing residential capacity, and rezonesparcels through the APR.If residential development is not sufficiently progressingtowards building permits or if the City is not meeting thepro‐rated share of the RHNA at all income levels byDecember 2028, the City will identify strategies to maintainadequate sites throughout the planning period.

Program H‐1.4
Planned Development
Continue to provide flexible design through the PD zoning district.

PlanningDepartment
General Fund On a project‐by‐project
basis.

Program H‐1.5
Accessory Dwelling Unit Program
Modify the current “Secondary Dwelling Unit Program”
from the 5th Cycle Housing Element to comply with changes in State law regarding ADUs. This will include updating the City’s “Secondary Dwelling Unit” Ordinance in compliance PlanningDepartment
General Fund Amend the “Secondary
Dwelling Unit Program” by
January 2025; Establishpermit‐ready ADU plans,

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Housing Program Actions Responsible Agency Funding Source Timeframe with State ADU laws. Submit revised ordinance to HCD in compliance with State law.
an ADU Manual, an ADU
webpage, an incentives
program by January 2026.

Monitor ADUs annually
through the APRs and ifassumptions forproduction and
affordability are notmeeting what wasassumed then the City will implement changes within
one year.

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

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

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

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

Establish an ADU monitoring program, and by the mid‐
cycle point of the planning period, if assumptions for
production and affordability are not meeting what was
assumed, then the City will implement changes within one year. Changes include, but are not limited to, additional outreach and incentives. If the gap between assumptions and production is “large” then the City will identify
additional capacity in the inventory and rezone, if
applicable.

Program H‐1.6
Removal of Residential
Development Constraints
Conduct a comprehensive study of residential development standards applicable to developments in zones that permit residential uses to determine which standards are potential constraints to housing.

PlanningDepartment
General Fund Conduct a study of
development standards by
zoning designation within
one year of the Housing
Element Statutory
deadline; Adopt anamendment to the Zoning
Ordinance by January2026; Annually review
development trends and
Adopt a Zoning Ordinance amendment to residential
development standards to address and reduce constraints, including parking requirements for multi‐family
developments such as, but not limited to, a sliding scale based on the number of bedrooms or a set reduced
requirement no greater than 2 spaces per unit.

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Housing Program Actions Responsible Agency Funding Source Timeframe Annually review development trends and biennially meet
with the development community to receive input and
feedback. If constraints are identified that inhibit the development of affordable housing, adopt changes withtwo years. biennially meet with thedevelopment community;if constraints are identified throughout the Planning
Period, adopt changeswithin two years.

Program H‐1.7
Mixed‐Use Development
Adopt development incentives, such as, but not limited to, decreasing the commercial component for projects that
include a greater number of affordable units, for candidate sites identified for mixed‐use rezoning.

PlanningDepartment
General Fund Adopt development
incentives in conjunction
with the rezones; annually
meet with the
development communityand property owners.

Annually meet with the development community and
property owners to identify development opportunities
and interest.

Program H‐1.8
Facilitation of AffordableHousing Development
Amend the City’s Inclusionary Housing Ordinance to apply city‐wide, restrict units based on affordability.

PlanningDepartment
General Fund Amend the Inclusionary
Housing Ordinance by
January 2027; Meet with
the developmentcommunity and propertyowners annually; create an informational webpage by
January 2027.

Annually meet with the development community and
property owners. Based on the feedback received, adopt
changes, incentives, and seek funding to facilitate
affordable housing development.

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

Program H‐1.9
Senate Bill 330
Continue to comply with SB 330 restrictions. Planning
Department
General Fund Through the end of the SB
330 10‐year timeframe.

Program H‐1.10Surplus Land Act
By December 20272026, declare City‐owned sites (APNs
022‐721‐06, 022‐212‐19, 022‐601‐01) as surplus and
approve a resolution making the findings that the project will be put out to competitive bid and will be larger than one acre mixed use development with a minimum of 300
residential units, at least 25% of which are reserved for lower income households. A successful bidder will be
required to enter into a regulatory agreement establishing the minimum affordability requirements.

PlanningDepartment
General Fund By December 20267,
declare City‐owned sites
(APNs 022‐721‐06, 022‐
212‐19, 022‐601‐01) as
surplus and approve a
resolution making thefindings that the projectwill be put out to competitive bid and will be

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Housing Program Actions Responsible Agency Funding Source Timeframe The City shall provide assistance to a successful bidder byoffering technical assistance; facilitating entitlements;assisting with funding, as available, and/or supportingfunding applications. larger than one acre mixed
use development with a
minimum of 300
residential units, at least
25% of which are reserved
for lower income
households.

Program H‐1.11Non‐Vacant Sites Development
Provide additional incentives on a project‐by‐project basissuch as, but not limited to, technical assistance, supportingfunding applications, and reduced development standards.

PlanningDepartment
General Fund Provide incentives on a
project‐by‐project basis;Engage property owners
Engage property owners annually to discuss development annuallyopportunities.See Program H‐1.3 for additional actions shoulddevelopment not occur as anticipated in this HousingElement.

Goal 2Program H‐2.1
Code Enforcement
Continue to implement an active code enforcement
program through the Building Department and inform
residents of rehabilitation assistance grants when available at City Hall and on the City’s website. Also continue to offer online and physical forms for residents to submit Code
Enforcement complaints through.

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

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

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

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

Priority processing will go to affordable housing projects.

PlanningDepartment
General Fund Review projects and
provide priority to
affordable housing
projects as applications
are submitted; Review the
Residential Design
Review the Residential Design Handbook and design review process for subjective language and adopt modifications.

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Housing Program Actions Responsible Agency Funding Source Timeframe Adopt objective design standards for all residential uses. Handbook and design review process and adopt
modifications by January2025; Adopt objective
design standards by
January 2025
Program H‐2.3
Monitor and Preserve
Affordable Housing
Continue to maintain the Affordable Housing Opportunities Database with detailed information on all subsidized units, including those that have affordability covenants.

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

Pursue partnership opportunities with non‐profits to
preserve and expand affordable housing in the City, as well as provide educational opportunities and assistance fortenants.Pursuant to Government Code sections 65583.2(g)(3) and, 65915(c)(3), and 66300(d3), ensure that when existing
housing is demolished, at least an equivalent number of units are created, and that lower income housing and
relocation payments are required as specified by these
statutes.

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

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HOUSING PLAN | 2 ‐ 41
Housing Program Actions Responsible Agency Funding Source Timeframe Comply with noticing requirements pursuant toGovernment Code section 65863.10.

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

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

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

PlanningDepartment
General Fund Implement the Mobile
Home Park RentStabilization Ordinance
throughout the Planning
Period; Provide
information at City Hall
and online by January
2027.

Provide information on the Mobile Home Park Conversion
Ordinance and other fair housing information on the City’s website and at City Hall.

Program H‐2.6
Development of Large Lots
Adopt and implement a program to facilitate the
development of lots larger than ten acres.

PlanningDepartment
General Fund Adopt and implement the
program by January 2026
Program H‐2.7
SB 35 Streamlining
Establish SB 35 procedures and provide information online. Planning Department
General Fund Adopt and implement the
program by January 2026
Program H‐2.8
Lot Consolidation
Facilitate the consolidation of vacant and underutilized lots or residential development.

PlanningDepartment
General Fund Establish and implement
the program by January
Adopt and promote incentives online and at City Hall. 2026 Goal 3Program H‐3.1
Promoting Housing Choice Voucher
(HCV) Program
Continue to participate in the Housing Authority of Santa Cruz County Voucher Rental Assistance Program.

PlanningDepartment;Housing Authorityof Santa Cruz
County

HUD HCD
Fund
Continue to participate in
the Housing Authority of
Santa Cruz County
Voucher Rental Assistance
Program and refer
residents throughout thePlanning Period; Annually
Annually host an informational workshop with the Housing Authority of Santa Cruz County for renters, property
owners, and prospective homeowners to provide
information on the voucher program and source of income discrimination, as well as increase participating properties.

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Housing Program Actions Responsible Agency Funding Source Timeframe Continue to refer residents to the County program and
provide information at City Hall and on the City’s website. host a workshop;
Biennially outreach to
Biennially outreach to property owners and landlords to property owners. market the voucher program and enforce State law
banning source of income discrimination.

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

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

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

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

PlanningDepartment
General Fund By January 2026
Affirmatively market government assistance and new
affordable housing units, as available, to community
organizations and agencies assisting lower income
households in the region. Promote the information in
multiple languages on the City’s website and at City Hall.

PlanningDepartment
General Fund As new units and
resources becomeavailable; annuallythroughout the Planning Period
New Housing Choices and Affordability in Areas of OpportunityContinue to implement the Inclusionary Housing Below Market Rate (BMR) Program. See Action H‐1.8.

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

PlanningDepartment
General Fund Throughout the Planning
Period
Facilitate the development of affordable housing units for special housing needs population. This may include, but is not limited to, technical assistance, support for funding PlanningDepartment
General Fund Throughout the Planning
Period and as project
applications are submitted

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Housing Program Actions Responsible Agency Funding Source Timeframe applications, permitting fee waivers, and development
standards concessions, and other similar actions.

Review future policies and programs for potentially
restrictive practices that would limit diversity in the Racially Concentrated Areas of Affluence (RCAAs).

PlanningDepartment
General Fund Annually and as issues are
raised.

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

PlanningDepartment
General Fund By January 2026
See Program H‐1.1 for rezone strategies. Planning
Department
General Fund Adopt rezones within 3
years of the 6th CycleHousing Element statutorydeadline Place‐Based Strategies to Encourage Community Conservation and RevitalizationCreate and promote informational materials on housing accessibility, rehabilitation, and maintenance resources.

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

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

PlanningDepartment
General Fund Annually throughout the
Planning Period
Protecting Existing Residents from DisplacementAnnually hold a community workshop with relevant community organizations and agencies to discuss the
needs of persons with disabilities and identify whether additional resources and development concessions are
needed. If necessary changes are identified, adopt
amendments within 6 months.

PlanningDepartment
General Fund Annually throughout the
Planning Period; adopt
necessary changes within
6 months
Continue to refer fair housing discrimination issues to the Civil Rights Department (CRD), including inquiries regarding landlord‐tenant mediation and tenant rights.

PlanningDepartment
General Fund Annually throughout the
Planning Period

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Housing Program Actions Responsible Agency Funding Source Timeframe Establish an accessibility program to improve access to housing, transit, public buildings and facilities, sidewalks, pedestrian crossings, and businesses for persons with
disabilities.

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

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

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

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

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

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

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

PlanningDepartment
General Fund By January 2026
Revise reasonable accommodation process to ensure that
reasonable accommodation requests may only be denied
in accordance with findings required by applicable fair housing laws.

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HOUSING PLAN | 2 ‐ 45
Housing Program Actions Responsible Agency Funding Source Timeframe Amend the reasonable accommodations findings to
remove subjective language.

Program H‐3.5
Housing for Persons with
Developmental Disabilities
Review and identify regulatory incentives that will
encourage the construction or rehabilitation of housing for persons with developmental disabilities with necessary
supportive services.

PlanningDepartment
General Fund Review regulatory
incentives by January2027; Annually seek
funding opportunities;
Biennially collaborate withdevelopers and
organizations
Seek and apply for State and Federal funding to support housing construction for persons with developmental
disabilities.

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

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

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

Continue to offer streamlining for affordable housing
development.

City to maintain up‐to‐date information about financialresources on its website for residents and developers.The City is to investigate additional incentives and seekfunding opportunities to encourage development ofhousing for extremely low‐income households. The City willalso support funding applications for affordable housingdevelopments that include units affordable to extremelylow‐income households.

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

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

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2 ‐ 46 | HOUSING PLAN
Housing Program Actions Responsible Agency Funding Source Timeframe Program H‐3.8
Agricultural and Employee Housing
Adopt a zoning ordinance amendment to permit employee
housing in single‐family residential zones, consistent with the requirements of Health and Safety Codes Section
17021.5 and 17021.6 as it relates to agricultural and
employee housing.

PlanningDepartment
General Fund By January 2025.

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

PlanningDepartment
General Fund Adopt amendments and
create an inventory of
sites to accommodate
emergency shelters by
January 2024; Prioritize
funding and other
incentives on a project‐by‐
project basis
Within one year, identify a zone, and amend developmentstandards as appropriate, that will allow emergencyshelters by‐right (without discretion). The City will ensure that zone also allows residential uses in compliance with AB 2339 (statutes of 2022).

Adopt a Zoning Ordinance amendment to expand the
definition of “emergency shelters” to include other interim interventions, including, but not limited to, navigation centers, bridge housing, and respite or recuperative care.

Create and monitor an inventory of sites appropriate to accommodate emergency shelters and work with the
appropriate organizations to ensure the needs of homeless and extremely low‐income residents are addressed.

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

Program H‐3.10
Density Bonus Ordinance
Adopt a Density Bonus Ordinance amendment to bring
polices into compliance with State density bonus law (Gov Code Section 65915 et seq).

PlanningDepartment
General Fund By January 2026; on a
project‐by‐project basis.

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

Program H‐3.11
Low Barrier Navigation Centers
Adopt a zoning ordinance amendment to approve low‐
barrier navigation centers that meet State requirements PlanningDepartment
General Fund By January 2026.

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HOUSING PLAN | 2 ‐ 47
Housing Program Actions Responsible Agency Funding Source Timeframe by‐right in mixed‐use and non‐residential zones permitting multifamily uses.

Program H‐3.12
Condominium ConversionOrdinance
Adopt a Condominium Conversion Ordinance to preserve
the existing, and future, rental housing stock by
establishing a maximum percent of the City’s total housing stock that can be converted over a certain period of time.

PlanningDepartment
General Fund By January 2026.

Program H‐3.13
Single‐Room Occupancy (SRO) Units
Define SRO in the Municipal Code. Planning
Department
General Fund Adopt a definition, zoning,
and processing proceduresfor SROs by January 2026.

Annually collaborate with
organizations; annually
seek funding
opportunities.

Adopt zoning and processing procedures for SROs.Collaborate with local organizations and agencies to discuss the needs of persons who previously experienced
homelessness.

Support, and when possible, fund local and regional efforts to address the housing needs of persons in Scotts Valley who have or are experiencing homelessness.

Program H‐3.14
Replacement Unit Program
In order to mitigate the loss of affordable housing units, require new housing developments to replace all
affordable housing units lost due to new development.

PlanningDepartment
General Fund The replacement
requirement will be
implemented immediately
and applied as applications
on identified sites are
received and processed,
and local policy shall be
adopted by January 2026.

Program H‐3.15
Supportive Housing
Adopt a Zoning Ordinance amendment to approve
supportive housing developments that meet State
requirements by‐right in mixed use zones.

PlanningDepartment
General Fund By January 2026.

Program H‐3.16Group Homes
Adopt a Zoning Ordinance amendments and updateapplicable application procedures for group homes incompliance with state law and to promote objectivity andgreater approval certainty similar to other residential uses.

PlanningDepartment
General Fund By January 2026.

Adopt a Zoning Ordinance definition for “group home.”
Goal 4Program H‐4.1
Hillside Development and Design
Maintain information online and at City Hall on hillside development and design.

PlanningDepartment;
General Fund Provide information by
January 2027; Coordinate

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Housing Program Actions Responsible Agency Funding Source Timeframe water and sewer
service providers
with developers on a
project‐by‐project basis
Program H‐4.2
Resource Conservation
Encourage energy conservation measures and devices to
be incorporated in the development and improvement of
housing. Review such requirements through the Design
Review and Building Permit process.

PlanningDepartment
General Fund On a project‐by‐project
basis.

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

PlanningDepartment;water and sewer
service providers
General Fund Immediately upon
adoption of the 6th Cycle
Housing Element and any
subsequent amendments
Program H‐4.4
Cultural Resources
Continue to review cultural resources through the Cultural Resource Review process.

PlanningDepartment;water and sewer
service providers
General Fund On a project‐by‐project
basis

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This Appendix provides a Review of Past
Performance for the 2015-2023 Housing Element. It
is an evaluation of the 5th Cycle’s Policy Program and
considers all current and existing programs and
projects, as well as the most effective and
appropriate policies and programs for the 2023-2031
6 th Cycle.

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H O U S I N G
A - 2 | A P P E N D I X A

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

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

The City of Scotts Valley has demonstrated a significant effort in pursuit of accomplishing many of the objectives set for the programs of the 5th Cycle Housing Element. During the fifth cycle, the City completed a number of key programs to support housing opportunity and made substantial progress towards many of its programs. The City’s programs that have been effective at addressing Special Needs populations have been identified as continued for the sixth cycle, due to their success in the fifth cycle.

As a part of analyzing prior programs, the Housing Element must evaluate the effectiveness of goals, policies, and related action in meeting the housing needs of special needs populations.

The summary below provides an overview of the City’s 5th Cycle program accomplishments and achievements related to special needs populations. Individually and collectively, these programs have had a positive impact on the needs of special needs populations in Scotts Valley.

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

The special needs of seniors can be met through a range of services, including congregate care, rent subsides, shared housing, and housing rehabilitation assistance. Affordable housing opportunities in Scotts Valley for seniors include:
 “Oak Tree Villa” (Brookdale Renaissance Senior Living Communities) at 100 Lockewood Lane – 204 units for active seniors and assisted living, approved in 1997.

Senior residents can benefit from various classes, activities, and programs offered at the Scotts Valley Senior Center. The Senior Center provides a place where seniors may find companionship, help and the opportunity to pursue their interests in educational, recreational and craft activities. Additionally, the Center assists in promoting the goodwill and public interests of the community.

The Scotts Valley Senior Life Association (SVSLA) also provides services and resources to seniors. SVSLA is a non-profit organization established to provide education and support

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relating to the health and welfare of senior citizens living in Scotts Valley. They seek to enhance and add enjoyment to lives of seniors in the community, provide educational opportunities with a focus on healthy living habits, and provide access to facilities that help seniors create their own healthy and fulfilling lives.

Table A-1 identifies 5th Cycle accomplishments for seniors.

Table A-1: 5th Planning Cycle Policies and Program Effectiveness, Seniors Accomplishments During the 5th Cycle Effectiveness of Programs Program 3.3 Fair Housing
Fair Housing information is provided on the City’s
web site and at City Hall as well as through the
Housing Authority of the County of Santa Cruz. This
information is available to property owners,
apartment managers, tenants and the general
public.

The City continues to periodically evaluate the Zoning
Code to find whether any regulations constrain the
development of housing for persons with disabilities.

Fair housing counseling and assistance is currently
administered by the California Department of Fair
Employment (DFEH) and Housing.

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

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

Table A-2 below identifies 5th Cycle accomplishments for persons with disabilities.

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Table A-2: 5th Planning Cycle Policies and Program Effectiveness, Persons with Disabilities Accomplishments During the 5th Cycle Effectiveness of Programs Program 3.3 Fair Housing
Fair Housing information is provided on the City’s
web site and at City Hall as well as through the
Housing Authority of the County of Santa Cruz.

This information is available to property owners,
apartment managers, tenants and the general
public.

The City continues to promote fair housing practices,
provide the public with educational information on fair housing, and refer fair housing complaints to the
Department of Fair Employment and Housing. The City has amended its Zoning Code to include formal reasonable
accommodation procedures and established specific
zoning districts to permit emergency shelters, transitional, and supportive housing as a matter of right. The City
continues to periodically evaluate the Zoning Code to find whether any regulations constrain the development of
housing for persons with disabilities. Fair housing
counseling and assistance is currently administered by the California Department of Fair Employment (DFEH) and
Housing.

Program 3.5 Reasonable Accommodation
Chapter 17.60 of the City’s Municipal Code
provided Reasonable Accommodation standards
and procedures. The Municipal code is on the
City’s website as well as at City Hall.

The City established the ADA Committee to work with the City’s Building Official to develop programs to encourage new construction to be designed in a manner to
accommodate persons with disabilities. The ADA
Committee continues as a City Commission that identifies opportunities to increase ADA accessibility throughout the City.

Program 3.6 Housing for Persons with
Development Disabilities
The City continued to seek available funding and
provide regulatory incentives to assist projects for
persons with developmental disabilities. The City
also continued to work with nonprofit developers
who intend to provide housing for persons with
developmental disabilities. Information on housing
and services for persons with developmental
disabilities is available at City Hall and on the City’s web site.

The City’s accomplishment of seeking available funding
and providing incentives to assist projects for persons with developmental disabilities is an effective way to improve the lives of this population and make the community more inclusive.

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

Larger, lower income families may qualify for Housing Choice Vouchers. Housing Choice Vouchers subsidize the rent for households so that the households can access housing below

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current fair market rental pricing. The City encourages affordable housing development for large households through partnerships with developers and entities and providing a homebuyer assistance program.

Table A-3 below identifies 5th Cycle accomplishments for large households.

Table A-3: 5th Planning Cycle Policies and Program Effectiveness, Large Households Accomplishments During the 5th Cycle Effectiveness of Programs Program 3.3 Fair Housing
Fair Housing information is provided on the City’s
web site and at City Hall as well as through the
Housing Authority of the County of Santa Cruz.

This information is available to property owners,
apartment managers, tenants and the general
public.

Program 3.4 Child and Day Care Facilities
The City continues to provide information at City
Hall and on the City’s web site regarding current
zoning regulations that apply to child care and day
care facilities. In addition, the City continued to
encourage the provision of child care and day care
facilities in all new proposed development
activities.

The City’s accomplishment of providing information on
zoning regulations and encouraging the provision of child care and day care facilities in new development activities can be beneficial for large households. Female-headed
households, comprised largely of female, single-parents with children, may benefit from child care services and affordable housing.

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

Single parents make up 10 percent of Scotts Valley households.

The Scotts Valley Unified School District (SVUD) offers a variety of community resources for children and single parents in the community. For instance, Vine Hill and Brook Knoll Elementary School provides after school care programs to residents with children and the SVUD provides free and reduced-price meals. SVUD serves over 2,000 students from preschool through twelfth grade. SVUD includes two elementary schools, one middle school, and one high school. The Joe and Linda Aliberti Clubhouse, run by the Boys and Girls Club of Santa Cruz County, offers affordable after school and day programing for local children. Their programming includes homework help, art, reading, physical activities and various specialty season programs such as summer camp programs.

Table A-4 below identifies the 5th Cycle accomplishments for single-parent households.

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Table A-4: 5th Planning Cycle Policies and Program Effectiveness, Single-Parent Households Accomplishments During the 5th Cycle Effectiveness of Programs Program 3.3 Fair Housing
Fair Housing information is provided on the City’s web
site and at City Hall as well as through the Housing
Authority of the County of Santa Cruz. This
information is available to property owners,
apartment managers, tenants and the general public.

The City continues to promote fair housing practices,
provide the public with educational information on fair housing, and refer fair housing complaints to the
Department of Fair Employment and Housing. The City
has amended its Zoning Code to include formal
reasonable accommodation procedures and
established specific zoning districts to permit
emergency shelters, transitional, and supportive
housing as a matter of right. The City continues to
periodically evaluate the Zoning Code to find whether
any regulations constrain the development of housing
for persons with disabilities. Fair housing counseling
and assistance is currently administered by the
California Department of Fair Employment (DFEH) and
Housing.

Program 3.4 Child and Day Care Facilities
The City continues to provide information at City Hall
and on the City’s web site regarding current zoning
regulations that apply to child care and day care
facilities. In addition, the City continued to encourage the provision of child care and day care facilities in all new proposed development activities.

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

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

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

Within the City, Camp Recovery Center provides adults and teens with alcohol and drug

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problems specialized detox, residential, outpatient and aftercare treatment programs. San Augustine and St. Philips church have food pantries. AFC Faith Community Shelter rotates its shelter program with different churches in Santa Cruz, Scotts Valley, and Aptos.

Table A-5 below identifies 5th Cycle accomplishments for persons experiencing homelessness.

Table A-5: 5th Planning Cycle Policies and Program Effectiveness, Persons Experiencing Homelessness Accomplishments During the 5th Cycle Effectiveness of Programs Program 1.4 Emergency Shelters
On July 15, 2015, the City Council of Scotts Valley adopted Ordinance No. 16-138, continuing to allow emergency
shelters by-right in the C-S, C-SC, and P Zoning Districts and amending the definition of an emergency shelter in
compliance with SB 2. The City continued to monitor the inventory of sites appropriate to accommodate emergency shelters and worked with appropriate organizations.

Persons experiencing homelessness may benefit
from this ordinance as it would make it easier for
persons experiencing homelessness with a place
to stay, as well as access to other essential
services such as food, clothing, and medical care.

Program 1.5 Transitional and Supportive Housing
On July 15, 2015, the City Council of Scotts Valley adopted Ordinance No. 16-138, permitting transitional and
supportive housing by-right in all residential zoning
districts, in compliance with SB 2.

Persons Experiencing Homelessness benefit from
this adopted ordinance will increase the number
of transitional and supportive housing in all
residential zoning districts.

Program 3.3 Fair Housing
Fair Housing information is provided on the City’s web site and at City Hall as well as through the Housing Authority of the County of Santa Cruz. This information is available to property owners, apartment managers, tenants and the general public.

The City continues to promote fair housing
practices, provide the public with educational
information on fair housing, and refer fair housing
complaints to the Department of Fair Employment
and Housing. The City has amended its Zoning
Code to include formal reasonable
accommodation procedures and established
specific zoning districts to permit emergency
shelters, transitional, and supportive housing as a
matter of right. The City continues to periodically
evaluate the Zoning Code to find whether any
regulations constrain the development of housing
for persons with disabilities. Fair housing
counseling and assistance is currently
administered by the California Department of Fair
Employment (DFEH) and Housing.

6. Farmworkers
Agricultural operations in the City are limited, with lands zoned for Residential Mountain (RMT-5) allowing for crop or tree farming. Lands zoned R-MT-5 account for a fraction of land zoned for residential development in the city. A query of business licensing records indicated that no crop or tree farming operations are active in the City. As such, no specific resources are currently available for farmworkers.

A program is included to revise the Zoning Ordinance to allow for farmworker housing by-right in zones allowing single family residential development, in accordance with State law.

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Table A-6 below identifies 5th Cycle accomplishments for farmworkers.

Table A-6: 5th Planning Cycle Policies and Program Effectiveness, Farmworkers Accomplishments During the 5th Cycle Effectiveness of Programs Program 3.3 Fair Housing
Fair Housing information is provided on
the City’s web site and at City Hall as well
as through the Housing Authority of the
County of Santa Cruz. This information is
available to property owners, apartment
managers, tenants and the general
public.

The City continues to promote fair housing practices, provide the public with educational information on fair housing, and refer fair housing complaints to the Department of Fair Employment and Housing. The City has amended its Zoning Code to include formal reasonable accommodation procedures and established specific zoning districts to permit emergency shelters, transitional, and supportive housing as a matter of right. The City continues to periodically evaluate the Zoning Code to find whether any regulations constrain the development of housing for persons with disabilities. Fair housing counseling and assistance is currently administered by the California Department of Fair Employment (DFEH) and Housing.

Program 3.9 Agricultural Employee
Housing
The city continued to review Health and
Safety Codes as they relate to agricultural
employee housing in order to amend the
Zoning Ordinance if necessary.

The City’s review of Health and Safety Code is an important step towards improving the lives of farmworkers. By ensuring that farmworkers have safe and healthy housing, the City can help improve their well-being, and quality of life.

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2 0 1 5 - 2 0 2 3 P R O G R A M A C C O M P L I S H M E N T S As required in Government Code 65588, local governments are to review its housing element as frequently to evaluate the appropriateness of the housing goals, objectives, and policies in contributing to the attainment of the state housing goal. Table A-7 provides detailed, program-specific accomplishments for 2015-2023. The City of Scotts Valley has demonstrated significant effort in working towards accomplishing many of the objectives established in the 5th Planning Cycle Housing Element. The City’s successful programs have been identified as on-going for the 6th Planning Cycle. Various programs have been modified in the 6th Cycle Housing Plan to account for new requirements and changes in State Law.

Table A-7: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments Status for Sixth Cycle GOAL 1. It is the goal of the City of Scotts Valley to promote a balanced mix of housing types, prices, and opportunities by increasing the number of housing units to accommodate population and employment growth.

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

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

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

The City monitored the development
approvals on identified sites, as detailed
below.
2015:

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

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

The approvals entitled 75 housing units, with
10 units deed restricted affordable housing
as required by the City’s Inclusionary
Ordinance.
2017:

Thee construction of The Grove was ongoing.

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

Building permits issued for The Cove and The
Terrace, to allow for the construction of 43
Modify.

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

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

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

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Scotts Valley City CouncilDecember 20, 2023

Scotts Valley City Council
December 20, 2023