Watsonville City Council
October 15, 2024

Appendix B: Housing Needs Assessment B-7
Table B-6: Employment by Sector (2010-2021)
Industry Sector
2016 2021 %
Change
2016-
2021
People
Employed
City
Employment
Percent
People
Employed
City
Employment
Percent
Agriculture, forestry, fishing and
hunting, and mining 4,647 20.2% 3,624 15.7% -29.0%
Construction 1,591 6.9% 1,211 5.2% -32.2%
Manufacturing 2,309 10.1% 2,011 8.7% -15.5%
Wholesale trade 919 4.0% 1,027 4.4% 10.0%
Retail trade 2,587 11.3% 2,639 11.4% 1.4%
Transportation and
warehousing, and utilities 662 2.9% 1,579 6.8% 57.8%
Information 131 0.6% 295 1.3% 55.3%
Finance and insurance, real
estate, and rental leasing 707 3.1% 684 3.0% -4.0%
Professional, scientific,
management, and
administrative and waste
management services
1,793 7.8% 1,915 8.3% 5.8%
Education services, health care,
and social assistance 3,969 17.3% 4,457 19.3% 10.4%
Arts, entertainment, recreation,
accommodation, and food
services
2,158 9.4% 1,624 7.0% -33.7%
Other services (except public
administration) 827 3.6% 1,139 4.9% 27.0%
Public Administration 654 2.8% 888 3.8% 25.9%
Total 22,954 -- 23,093 --

0.6%
Source: American Community Survey, S2404, 5- Year Estimates, 2016 and 2021 Economists estimate a natural unemployment rate of 3.5 percent to 4.5 percent as it reflects the real voluntary economic forces within a city or county1. Table B-7 below shows the City of Watsonville had an unemployment rate of 8.7 percent in 2016 and 8.1 percent in 2021. While the rate of unemployment went down by 0.6 percent from 2016 to 2021, the rate is still high. It is important to note that in 2016 the country was still recovering from the 2008 financial crisis and in 2021, the country was in the midst of the COVID-19 pandemic, which were both events that caused higher than normal unemployment rates.

Considering these factors, Watsonville still experienced slightly higher unemployment rates compared to neighboring jurisdictions, and significantly higher rates than the county average. 1 Natural Rate of Unemployment, Its Components, and Recent Trends, Kimberly Amadeo, ed. Eric Estevez, August 30, 2020.

Appendix B: Housing Needs Assessment B-8
For those employed, income level can be an indicator to identify housing types that may need to be provided within the City. According to the AMBAG Final Regional Housing Needs Allocation (RHNA), housing needs are broken down into four income categories:
• Very Low-Income (50 percent or less of median family income) • Low Income (51 to 80 percent of median family income) • Moderate Income (81 to 120 percent of median family income) • Above Moderate-Income (Above 120 percent of median family income) According to the 2023 State Income Limits, the County of Santa Cruz’s median income for a household of four is $132,800. Occupations that fall under $66,400 would be considered in the very low-income category. As Table B-8 shows, the majority of the occupational salaries in Santa Cruz County fall below 50 percent of the Area Median Income (AMI). Based on these salaries, housing stock in the City would need to be affordable to accommodate lower-income households.

Table B-7: Unemployment Rate
Jurisdiction Unemployment Rate* Change from 2016 to
2016 2021 2021
Salinas 7.3% 5.3% -2.0%
Hollister 10.5% 8.0% -2.5%
Watsonville 8.7% 8.1% -0.6%
City of Santa Cruz 8.5% 7% -1.5%
Santa Cruz County 7.3% 6.4% -0.9%
*Population 16 years and over
Source: American Community Survey, Table DP03, 5-Year Estimates, 2016 and 2021.

Appendix B: Housing Needs Assessment B-9
Table B-8: Median Salary by Occupation in Santa Cruz County Occupation Salary
Management $96,222
Legal $87,551
Healthcare Practitioners and Technical $86,641
Architecture and Engineering $79,419
Computer and Mathematical $70,746
Life, Physical and Social Sciences $70,708
Business and Financial Operations $66,811
Construction and Extraction $56,649
Installation, Maintenance and Repair $54,640
Education, Training and Library $52,376
Community and Social Service $50,166
Arts, Design, Entertainment, Sports and Media $48,070
Protective Services $47,973
Office and Administration Support $45,645
Production $43,993
Building, Grounds Cleaning, and Maintenance $40,481
Transportation and Material Moving $40,014
Sales $31,611
Farming, Fishing and Forestry $30,567
Personal Care and Service $30,270
Healthcare Support $29,735
Food Preparation and Serving Related $28,513
Source: American Community Survey, 5-Year Estimates, 2021 C. Housing Characteristics
Households include all individuals that occupy a single housing unit in a shared state whether they are single occupants, families, or unrelated people sharing a housing unit. Household characteristics provide insight on growth and determining a community’s housing needs. Income and affordability are best measured at the household level, as well as the special needs of certain groups, such as large families, single-parent households, or lower-income households.

1. Household Type
Table B-9 shows different household characteristics in the City. Watsonville contains 14,587 total households. This represents approximately 15.1 percent of all Santa Cruz County households.

Approximately 22.1 percent of total households in Watsonville are non-family households. This may include unrelated persons living together or persons living alone. Non-family households tend to occupy multi-family units or seek out more affordable housing options. In contrast, married-couple family households make up 52.2 percent of total households. Married-couple families tend to seek occupancy in a single-family residence with multiple bedrooms.

Appendix B: Housing Needs Assessment B-10
Table B-9: Household Characteristics
Jurisdiction
MarriedCouple
Family HH
Total HH
Percent
Female HH,
No Spouse
Present
Total HH
Percent
Non-Family
HH
Total HH
Percent Total HH
Salinas 22,444 52.2% 7,638 17.8% 8,967 20.9% 42,984
Hollister 6,693 57.0% 1,795 15.3% 2,203 18.8% 11,736
Watsonville 7,615 52.2% 2,753 18.9% 3,231 22.1% 14,587
City of Santa
Cruz 8,179 37.1% 1460 6.6% 11,658 52.8% 22,067
Santa Cruz
County 47,067 48.8% 9,852 10.2% 35,289 36.6% 96,476
Note: HH = Households
Source: American Community Survey, Table B11001, 5-Year Estimates, 2021.

Table B-10 illustrates the changes in household types from 2011 through 2021. Watsonville experienced a growth of approximately 1,998 new households from 2011 to 2021. During this time, married-couple family households decreased by 3.3 percent from 2011 to 2021. Female households with no spouse and non-family households increased by 1.6 percent and 1.5 percent, respectively.

Table B-10: Changes in Household Types
Household Types 2011 Percent 2016 Percent 2021 Percent
Married-Couple Family Households 7,714 51.50% 7,416 48.10% 7,615 48.20% Female Households, No Spouse 2,367 15.80% 2,499 16.20% 2,753 17.40% Male Households, No Spouse 946 6.30% 1,240 8% 988 6.30% Non-Family Households 2,773 18.50% 2,898 18.80% 3,231 20.50% Householder Age 65 or Above 1,173 7.80% 1,363 8.80% 1,211 7.70% Total Households 13,800 - 15,416 - 15,798 -
Source: American Community Survey, Table S1101, 5-Year Estimates, 2011, 2016, 2021.

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

Table B-11 illustrates the household size for the City and nearby communities. Watsonville has approximately 3.6 persons per household making it one of the larger household sizes compared to nearby cities. Larger households may require additional bedrooms and may result in overcrowding.

Appendix B: Housing Needs Assessment B-11
Table B-11: Average Household Size
Jurisdiction Average Persons per Household
Salinas 3.8
Hollister 3.5
Watsonville 3.6
City of Santa Cruz 2.4
Santa Cruz County 2.7
Source: American Community Service, S1101, 5-Year Estimates 2021

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

HCD has identified the following income categories based on the AMI of Santa Cruz County:
• Extremely Low-Income: Households earning up to 30 percent of the AMI • Very Low-Income: Households earning between 31 and 50 percent of AMI • Low-Income: Households earning between 51 percent and 80 percent of the AMI • Moderate-Income: Households earning between 81 percent and 120 percent of the AMI • Above Moderate-Income: Households earning over 120 percent of the AMI Together, the extremely low-, very low-, and low-income categories are referred to as lower income2.

Comprehensive Housing Affordability Strategy (CHAS) estimates based on 2016-2020 ACS 5-year average data are used below. The CHAS, developed by the Census Bureau for the U.S. Department of Housing and Urban Development (HUD), provides detailed information on housing needs by income level for different types of households in Watsonville. The most recent available CHAS data for Watsonville was published in May 2022.

Watsonville’s household income characteristics directly inform the housing types that would be most beneficial to the City’s population. Income characteristics assist in determining what degree of affordable housing is required to meet the needs of a population. Further, above average income levels allow for the occupancy of larger housing units. The majority of the city’s households exist within lower income level range as summarized in Table B-12 below. Households with an extremely low income make up 28.1 percent of the City’s households whereas very low-income households make up 19.7 percent of the City’s households. In general, it is difficult for lower income households to afford and attain home ownership.

This trend is reflected in Watsonville as renter households experience lower incomes than owner 2 Federal housing and community development programs typically assist households with incomes up to 80 percent of the AMI and use different terminology. For example, the Federal Community Development Block Grant (CDBG) program refers households with incomes between 51 and 80 percent AMI as moderate-income (compared to lowincome based on State definition).

Appendix B: Housing Needs Assessment B-12
households. Approximately 39.3 percent of renter households experience extremely low income and 25.7 percent experience very low incomes.

Table B-12: Households by Income Category
Income Category (% of County AMI) Owner Renter Households Total Percent Total Percent Total Percent
Extremely Low (30% AMI or less) 925 14.4% 3,095 39.3% 4,020 28.1% Very Low (31 to 50% AMI) 795 12.4% 2,025 25.7% 2,820 19.7% Low (51 to 80% AMI) 1,430 22.2% 1,930 24.5% 3,360 23.5% Moderate or Above
(over 80% to 100% AMI) 3,285 51% 830 10.5% 4,115 28.7%
Total 6,435 -- 7,880 -- 14,315 --
Source: HUD Comprehensive Housing Affordability Strategy (CHAS), 2016-2020.

The ACS 2021 data shown in Figure B-3 shows the median household income for Watsonville, two nearby jurisdictions, and Santa Cruz County. Watsonville has a median household income of $67,007, which is $29,086 lower than Santa Cruz County. The City has the lowest median household income in the area.

Households with lower median incomes are more susceptible to housing cost burdens and may have fewer choices. Additionally, lower-income households may not be able to afford adequate housing. Lowincome households may have a challenging time finding housing that can fit the needs of a larger household because larger housing tends to be owned, rather than rented, and is more expensive than smaller rental units. As a result, cost burden, displacement, and overcrowding may occur.

Figure B-3: Median Household Income by City
Source: American Community Survey Table S1901, 5-Year Estimates, 2021.

Table B-13 shows the median household income of nearby jurisdictions and compares the percentage difference with the Santa Cruz County median income. Watsonville’s median household income is less than all other comparative jurisdictions. The City of Santa Cruz has a median household income that is

43.6 percent higher than Watsonville’s. The City also has the greatest difference compared to the County’s Median Household Income.
$75,747
$87,761
$67,007
$96,217 $96,093
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
Salinas Hollister Watsonville City of Santa Cruz Santa Cruz County

Appendix B: Housing Needs Assessment B-13
Table B-13: Median Household Income
Jurisdiction Median Income Difference with Watsonville
Salinas $75,747 13.0%
Hollister $87,761 31.0%
Watsonville $67,007 --
City of Santa Cruz $96,217 43.6%
Santa Cruz County $96,093 43.4%
Source: American Community Survey, Table S1901, 5-Year Estimates, 2021.

Figure B-4 below outlines Watsonville’s income, broken down by income level. 85.3 percent of Watsonville households earn an income below $150,000, with 35.9 percent earning less than $50,000 and

2.8 percent earning an income below $10,000. Approximately 7 percent of Watsonville’s households earn $200,000 or more annually.

Figure B-4: Watsonville Household Income Breakdown by Category Source: American Community Survey, Table S1901, 5-Year Estimates, 2021.

Less than $10,000,
3% $10,000 to
$14,999, 4%
$15,000 to
$24,999, 12%
$25,000 to
$34,999, 8%
$35,000 to
$49,999, 10%
$50,000 to
$74,999, 20%
$75,000 to
$99,999, 14%
$100,000 to
$149,999, 15%
$150,000 to
$199,999, 8%
$200,000 or more,
7%

Appendix B: Housing Needs Assessment B-14
D. Housing Problems
The CHAS developed by the Census Bureau for HUD provides detailed information on housing problems by income level for different types of households in the City. The most recent available CHAS data was published in May 2022 and is based on 2020 ACS data. Housing problems considered by CHAS include:

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

Severe Housing Problems:
• Units with physical defects (lacking complete kitchen or bathroom); • Overcrowded conditions (more than 1.5 persons per room); or • Cost burdens exceeding 50 percent of gross income (including utilities).

Types of housing challenges in Watsonville vary according to household income, type, and tenure. Table B-14 shows the housing assistance needs of lower-income households. In general, there are more renteroccupied households (38.4 percent) with housing challenges than owner-occupied households (16.3 percent) in Watsonville. The City of Watsonville has more households that have at least one of four housing challenges (54.7 percent) than households that don’t (45.3 percent). Approximately 38.7 percent of Watsonville households experience at least one severe housing challenge. More renters (28.3 percent) than owners (10.4 percent) experience a severe housing challenge. These findings may reflect the level of control over maintenance and repairs that owners have but renters do not. Renters typically rely on property owners and management companies to provide repair services and maintenance, which can result in higher levels of housing problems.

Appendix B: Housing Needs Assessment B-15
Table B-14: Housing Assistance Needs of Lower-Income Households Housing Challenge Owner Total HH
Percent Renter Total HH Percent Total Total HH Percent
Housing Challenge Overview*
Household has at least one of four
Housing Challenge 2,340 16.3% 5,490 38.4% 7,830 54.7%
Household has no Housing
Challenges or cost burden not
available, no other challenges
4,100 28.6% 2,390 16.7% 6,490 45.3%
Total 6,435 45.0% 7,880 55.0% 14,315 100%
Severe Housing Challenge Overview**
Household has at least one of four
Severe Housing Challenges 1,495 10.4% 4,050 28.3% 5,545 38.7% Household has no Severe Housing
Challenges or cost burden not
available, no other challenges
4,945 34.5% 3,830 26.8% 8,775 61.3%
Total 6,435 45.0% 7,880 55.0% 14,315 100%
Note: “% of total HH” equals Percent of total Households in the City of Watsonville * The four housing challenges are: incomplete kitchen facilities, incomplete plumbing facilities, more than one person living per room, and cost burden greater than 30 percent.
** The four severe housing challenges are: incomplete kitchen facilities, incomplete plumbing facilities, more than 1.5 persons per room, and cost burden greater than 50 percent.

Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) 2016-2020

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

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

Table B-15 illustrates the severity of overcrowding in Watsonville by household tenure. About 2.6 percent of owner-occupied units experienced overcrowding, while 10.2 percent of renter-occupied units experienced overcrowding. Approximately 1.3 percent of owner-occupied units experienced severe overcrowding, while 5.6 percent of renter-occupied units experienced severe overcrowding. Overall, 2,872 units (19.7 percent) experience some form of overcrowding in Watsonville. Increasing the

Appendix B: Housing Needs Assessment B-16
opportunities for housing of all types and appropriate sizes for different households can help mitigate overcrowded units.

Table B-15: Overcrowding by Tenure
Tenure
Overcrowded Units
(1.0 to 1.50 persons/room)
Severely Overcrowded Units
(>1.51 persons/room)
Total Overcrowded
Occupied Units
Count Percent of Total
Occupied Units Count Percent of Total Occupied Units Count Percent of Total Occupied Units Owner
Occupied 372 2.6% 192 1.3% 564 3.9%
Renter
Occupied 1,489 10.2% 819 5.6% 2,308 15.8%
Total 1,861 12.8% 1,011 6.9% 2,872 19.7%
Source: American Community Survey, Table B25014, 5-Year Estimates, 2021.

Table B-16 shows that owner-occupied housing units make up 19.7 percent of the overcrowded units in the City. Of the total, renter-occupied units make up 80.4 percent of overcrowded units. Watsonville has the second highest percentage of total overcrowded units compared to nearby jurisdictions and the county.

Table B-16: Overcrowded Housing Units by Tenure
Jurisdiction
Owner-Occupied
Overcrowded Units
Renter-Occupied
Overcrowded Units Total Overcrowded Units
Count Percent Count Percent Total Percent
Salinas 2,422 15.9% 6,691 84.1% 9,113 21.2%
Hollister 451 53.8% 714 46.2% 1,165 9.9%
City of Santa
Cruz 170 1.6% 898 7.5% 1,068 4.8%
Watsonville 564 19.6% 2,308 80.4% 2,872 19.7%
Santa Cruz
County 1,980 29.2% 4,795 70.8% 6,775 7%
Source: American Community Survey, Table B25014, 5-Year Estimates, 2021.

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

Table B-17 below summarizes Watsonville’s cost burdened households utilizing 2016-2020 ACS Census Bureau data from HUD CHAS. According to CHAS data, the City has 6,435 owner-occupied households and 7,880 renter-occupied households. Approximately 26.5 percent of owners are cost burdened, and 13.2 percent severely cost burdened. In comparison, 57.9 percent of renters are cost burdened, and 30.8 percent are severely cost burdened. As shown below, owners are less likely to experience a severe cost burden but still may experience a cost burden as cost of living increases.

Appendix B: Housing Needs Assessment B-17
Table B-17: Summary of Housing Overpayment
Income by Cost
Burden*
Owner Renter
Cost
Burden
> 30%
% of
Owner
HH
Cost
Burden
> 50%
% of
Owner
HH
Cost
Burden
> 30%
% of
Renter
HH
Cost
Burden
> 50%
% of
Renter
HH
Household
Income is < 30%
HAMFI
755 11.7% 620 9.6% 2,730 34.6% 2,085 26.5%
Household
Income is 31% to
50% HAMFI
240 3.7% 200 3.1% 1,410 17.9% 325 4.1%
Household
Income is 51% to
80% HAMFI
350 5.4% 20 0.3% 365 4.6% 15 0.2%
Household
Income is 81% to
100% HAMFI
225 3.5% 10 0.2% 55 0.7% 0 0%
Household
Income is >100%
HAMFI
135 2.1% 0 0% 0 0% 0 0%
Total 1,705 26.5% 850 13.2% 4,560 57.9% 2,425 30.8%
Note: HAMFI equals HUD area median family income, this is the median-family income calculated by HUD for each jurisdiction, to determine Fair Market Rents (FMRs) and income limits for HUD programs. HAMFI will not necessarily be the same as other calculations of median incomes (such as a simple Census number), due to a series of adjustments that are made.
* Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities). For owners, housing cost is "select monthly owner costs", which includes mortgage payment, utilities, association fees, insurance, and real estate taxes.

Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) 2016-2020

Appendix B: Housing Needs Assessment B-18
E. Special Needs Groups
Special needs populations include seniors, persons with disabilities, female-headed households, large households, farmworkers, persons experiencing homelessness, and students. Special needs groups may have lower incomes because of their specific needs or conditions. Special circumstances may be related to one’s employment and income, family characteristics, disability and household characteristics, or other factors. Consequently, certain residents in Watsonville may experience higher incidences of housing overpayment (cost burden), overcrowding, or other housing problems.

1. Seniors
The senior population is generally defined as those 65 years or older. They may be subject to multiple constraints, such as limited and fixed incomes, high health care costs, higher incidence of mobility and self-care limitations, and transit dependency. As a result, the senior population may have specific housing needs which include affordable housing, care facilities, and other housing that includes planned service components. Table B-18 shows that the City of Watsonville has the third highest percentage of persons aged 65 and over (11.3%), compared to nearby jurisdictions and the County.

Table B-18: Persons Aged 65 and Over
Jurisdiction Population Count Percent of Total Population Salinas 15,394 9.4%
Hollister 4,040 9.8%
City of Santa Cruz 7,747 12.4%
Watsonville 5,982 11.3%
Santa Cruz County 45,785 16.8%
Source: American Community Survey, Table S0101, 5-Year Estimates, 2021.

Table B-19 shows the income of senior householders in the City. Of all senior householders, 42 percent earn less than 30 percent of the median household Income (MHI), and 58.2 percent earn less than 50 percent of the MHI. In total, 71.1 percent of senior households are considered low-income and earn less than 80 percent of the MHI.

Table B-19: Elderly Householders by Income
Income Category Total Percent of Total Elderly
Householders
Extremely Low (<30% MHI) 1,486 42%
Very Low (31% to 50% MHI) 571 16.2%
Low (51% to 80% MHI) 455 12.9%
Moderate (81% to 100% MHI) 286 8.1%
Above Moderate (>100% MHI) 736 20.8%
Total 3,534 100%
Note: Median Household Income (MHI) 2017-2021 - $96,217 Source: American Community Survey, Table B19037, 5-Year Estimates, 2021.

Table B-20 shows the number of seniors in Watsonville by housing tenure. Totaling at 8,314 residents aged 60 years old and over, the table shows that seniors are predominantly owners in the City, with an estimate of 65.8 percent.

Appendix B: Housing Needs Assessment B-19
Table B-20: Seniors by Tenure (Owner vs. Renter)
Tenure Total Percent of Total Elderly
Householders
Owner 5,471 65.8%
Renter 2,843 34.2%
Total 8,314 100%
Source: American Community Survey, Table B19037, 5-Year Estimates, 2021.

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

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

The ACS identifies six disability types: hearing, vision, cognitive, ambulatory, self-care, and independent living. The U.S. Census and ACS provide clarifying questions to determine persons with disabilities and differentiate disabilities within the population. The ACS defines a disability as a report of one of the six disabilities identified by the following questions:
• Hearing Disability: Is this person deaf or do they have serious difficulty hearing? • Visual Disability: Is this person blind or do they have serious difficult seeing even when wearing glasses?
• Cognitive Difficulty: Because of a physical, mental or emotional condition, does this person have serious difficulty concentrating, remembering, or making decisions? • Ambulatory Difficulty: Does this person have serious difficulty walking or climbing stairs? • Independent Living Difficulty: Because of a physical, mental, or emotional condition, does this person have difficulty doing errands alone such as visiting a doctor’s office or shopping? According to the 2021 ACS data, about 13.6 percent of Watsonville’s population has a disability (Table B21). The most prominent disability type in the City is ambulatory (walking) difficulty at 6.2 percent, and the least common disability type is self-care difficulty at 2.6 percent. The population with independent living and cognitive difficulties follow closely behind ambulatory difficulties at 5.4 and 5.3 percent, respectively.

Appendix B: Housing Needs Assessment B-20
Table B-21: Disability Status
Disability Type
Population with a Disability
Total
Percent of
Population
with
Disability
Percent of
Total
Population Under 18 18 to 64 65 and
Over
Population with a
Hearing Difficulty 637 742 987 2,366 16.7% 4.5%
Population with a
Vision Difficulty 261 805 454 1,520 10.7% 2.9%
Population with a
Cognitive Difficulty 545 1,616 648 2,809 19.8% 5.3%
Population with an
Ambulatory Difficulty 165 1,360 1,739 3,264 23.1% 6.2%
Population with a SelfCare Difficulty 165 576 610 1,351 9.5% 2.6% Population with an
Independent Living
Difficulty
- 1,635 1,208 2,843 20.1% 5.4%
Total 1,773 6,734 5,646 14,153 100% 26.8%
Source: American Community Survey, Table S1810, 5-Year Estimates, 2021.

The California Department of Developmental Services (CDDS) provides estimates of persons with developmental disabilities in Watsonville, as shown in Table B-22 below. As of January 2022, CDDS identified 362 juvenile persons and 383 adults as having developmental disabilities in the ZIP code 95076.

Table B-22: Developmental Disability Status for ZIP Code 95076 Disability Type Number of Residents
Living Arrangement
Home of Parent/Guardian 640
Independent/Supported Living 48
Community Care Facility 48
Intermediate Care Facility 0
Foster/Family Home <11
Other <11
Age Range
0-17 Years Old 362
18+ Years Old 383
Source: CA DDS data by ZIP Code, January 2022
Many people with developmental disabilities can live and work independently within a conventional housing environment. Individuals with more severe developmental disabilities may require a group living environment where supervision is provided. The most severely affected individuals may require an institutional environment where medical attention and physical therapy are provided. Because developmental disabilities exist before adulthood, the first issue in supportive housing for persons with developmental disabilities is the transition from the person’s living situation as a child to an appropriate level of independence as an adult.

Appendix B: Housing Needs Assessment B-21
Additionally, Housing Choices, a nonprofit service provider, conducted their own studies on the County of Santa Cruz to support people with developmental and other disabilities to find and retain affordable housing throughout Santa Cruz County.

Pursuant to SB 812, San Andreas Regional Center (SARC) has contracted Housing Choices to engage with cities throughout Santa Cruz County as they update their Housing Elements. The opportunity allows jurisdictions and the SARC to provide data on the housing needs and best practices for inclusion of people with developmental disabilities in their housing plans. Below is their analysis of issues that persons with developmental disabilities face in the City.

Rate of Adults with Developmental Disabilities Living in City of Watsonville. Of all Santa Cruz County residents with developmental disabilities, nearly 40 percent live in the City of Watsonville. This high percent gives the City a key role in providing housing for those with developmental disabilities. The City of Watsonville is home to 535 people with developmental disabilities of whom 67 percent are adults 18 years of age and older. The proportion of people under the age of 18 with developmental disabilities is higher in the City, at 33 percent, than the County average of 29 percent respectively. These higher percentages are most likely attributable to the amount of affordable housing in the City for people with developmental disabilities as compared to neighboring jurisdictions. Table B-23 provides the population with developmental disabilities in both the City and County.

Table B-23: Population with Developmental Disabilities
Age
Watsonville Santa Cruz County
Count Percent of Total
Population Count Percent of Total Population
Under 18 176 33% 407 29%
18 and older 359 67% 1,009 71%
Total 535 100% 1,416 100%
Note: The City of Watsonville population with developmental disabilities was provided by San Andreas Regional Center as of November 2021. The Santa Cruz County population with developmental disabilities is based on County-level data published by the Department of Developmental Services as of June 2021.

Living Arrangements of City of Watsonville Adults with Developmental Disabilities. Assessing the housing needs of adults with developmental disabilities is of particular importance because as they age the adults will require a residential option outside the family home, whereas the family home is the preferred living option for children with developmental disabilities. As of November 2021, SARC reported that 76 percent of Watsonville adults with developmental disabilities still lived in the family home. This is significantly higher than the County overall where only 62 percent of adults with developmental disabilities live at home. As discussed below, overreliance on aging parents to provide housing for adults with developmental disabilities puts them at greater risk of homelessness or displacement as they age in place. Due to the lack of deeply affordable housing in the City of Watsonville only 13 percent of adults with developmental disabilities have been able to transition from the family home into their own apartment with supportive services, nearly half the rate of Santa Cruz County adults with developmental disabilities. Overall, 25 percent of Santa Cruz County adults with developmental disabilities have transitioned to independent living. By increasing the production of inclusive housing options for people with developmental disabilities, the City can reduce the number of adults with developmental disabilities being displaced from the community or falling into homelessness. The existing living arrangements of

Appendix B: Housing Needs Assessment B-22
adults with developmental disabilities in the City of Watsonville compared to Santa Cruz County are shown below.

Table B-24: Living Arrangements for Adults with Developmental Disabilities Adult Living
Arrangements
Watsonville Santa Cruz County
Count Percent of Total
Population Count Percent of Total Population
In the Family Home 272 76% 630 62%
Own Apartment with
Supportive Services 48 13% 248 25%
Licensed Facilities 34 10% 125 12%
Other 5 1% 6 1%
Total Adults 359 100% 1,009 100%
Note: The City of Watsonville population with developmental disabilities was provided by San Andreas Regional Center as of November 2021. The Santa Cruz County population with developmental disabilities is based on county-level data published by the Department of Developmental Services as of June 2021.

Decline in Licensed Care Facilities in Santa Cruz County. The CDDS reports that between September 2015 and June 2021, there was a 7 percent decrease in the number of people with developmental disabilities being housed in licensed care facilities (including Community Care Facilities, Intermediate Care Facilities, and Skilled Nursing Facilities) in Santa Cruz County, even as the adult population in need of residential options outside the family home grew. The County’s reduced supply of licensed care facilities increases the likelihood that City of Watsonville adults with developmental disabilities have to rely on family. Table B-25 illustrates the changes in living arrangements for adults with developmental disabilities from 2015- 2021 in Santa Cruz County.

Table B-25: 2015-2021 Changes in Living Arrangements for Adults with Developmental Disabilities Adult Living Arrangements 2015 2021 Percent Change
In the Family Home 477 630 32%
Own Apartment with Supportive Services 231 248 7%
Licensed Facilities 135 125 (-7%)
Other (including homeless) 5 6 20%
Total Adults 848 1009 19%
Source: Department of Developmental Services Quarterly Report by County.

Note: These data assume that all people with developmental disabilities under age 18 live in the family home. The impact of this assumption, if incorrect, is to underestimate the number of adults living in the family home who may need other residential living options.

Increase of Autism Diagnosis Reflected in Increase in Adults in their 20s and 30s. Growth in the Santa Cruz County adult population with developmental disabilities correlates with a well-documented annual increase in the diagnosis of autism that began in the mid-1980s and did not level out until after 2015. The cumulative impact of this trend is already seen in the growth of the Santa Cruz County population aged 18 to 41 with developmental disabilities and will likely continue in the future. This trend has significant implications for housing needs among City of Watsonville adults with developmental disabilities as the population can be expected to continue to grow at a faster rate than the general population. Table B-26 provides data on the age distribution changes in the adult population of Santa Cruz County.

Appendix B: Housing Needs Assessment B-23
Table B-26: Changes in Age Distribution of Adult Population in Santa Cruz County Age 2015 Population 2021 Population Percent Change
18 to 31 395 484 23%
32 to 41 185 192 4%
42 to 51 103 135 31%
52 to 61 118 114 (-3%)
62 and above 47 84 79%
Total Adults 848 1,009 19%
Source: Department of Developmental Services data reported at the county level in June 2021 and September 2015.

Longer Life Spans. Between September 2015 and June 2021, the CDDS reports that the number of Santa Cruz County residents with developmental disabilities age 62 and older grew by 79 percent (Table B-26).

This increase is generally attributable to well-documented gains in life span rather than migration of seniors into high-cost Santa Cruz County. Longer life spans mean that more adults with developmental disabilities will outlive their parents and family members who are the largest source of housing for people with developmental disabilities in the City of Watsonville.

Displacement. Notwithstanding 19 percent growth in Santa Cruz County’s total population of adults with developmental disabilities, the Department of Developmental Services has documented a 3 percent decline in the age group 52 to 61 in Santa Cruz County between September 2015 and June 2021. In light of gains in life expectancy, this loss can reasonably be attributed to displacement from the county because of a lack of residential living options (either licensed care facilities or affordable housing) when an elderly family caregiver passes away or becomes unable to house and care for the adult. Due to increased reliance on the family home as a living arrangement (based on a 32 percent increase of adults remaining in the family home in Santa Cruz County between 2015-2021) this trend is expected to continue to worsen unless more inclusive affordable housing is developed during the 2023-2031 RHNA cycle. Displacement takes a particular toll on adults with developmental disabilities who depend on familiarity with transit routes and shopping and services, as well as support from community-based services and informal networks built up over years of living in the City of Watsonville.

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 CDDS. 26 percent of Santa Cruz County residents with developmental disabilities have limited mobility, 9 percent have a vision impairment and 4 percent 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 from the Supplemental Security Income (SSI) program, pricing them out of many of the limited number of affordable housing units in the City of Watsonville. Those with employment tend to work part-time in the lowest paid jobs and struggle to income-qualify for many of the affordable housing units now available for rent in the City of Watsonville.

Transit-Dependent. Many 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.

Appendix B: Housing Needs Assessment B-24
There are resources that may be beneficial for people living with a development disability, including rent subsidized homes, licensed and unlicensed single-family residences, inclusionary housing, Section 8 vouchers, special programs for home purchase, HUD housing, and SB 962 (veterans) homes. Housingaccessibility modifications, the proximity to services and transit, and the availability of group living opportunities represent some of the types of considerations that are important in serving the needs of this group. Incorporating ‘barrier-free’ design in new multifamily residences (as required by California and Federal Fair Housing laws) is especially important to provide the widest range of choices for residents with disabilities. Special consideration should also be given to the affordability of housing, as people with disabilities may be living on a fixed income.

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

Securing housing large enough to accommodate all members of a household is more challenging for renters, because multifamily rental units are typically physically smaller than single-family ownership units. While apartment complexes offering two and three bedrooms are common, apartments with four or more bedrooms are rare. It is more likely that large households will experience overcrowding in comparison to smaller households. Additionally, throughout the region, single-family residences with higher bedroom counts, whether rental or ownership units, are rarely affordable to lower-income households.

Table B-27 below provides a breakdown of large households by tenure in Watsonville. The table below analyzes the household size of homeowners and renters living in a large household. Large households are units with five or more occupants. About 18.7 percent of all households in Watsonville are large households. There are more renter-occupied units (20.9 percent) with five or more occupants than owneroccupied households (16.1 percent). A program has been added in the Policy Plan to encourage more resources to be provided for large households in the City.

Table B-27: Large Households by Tenure
Household Size
Owner Renter Total
Count Percent of
Owner HH Count Percent of Renter HH Count Percent of Total HH 5-Person Household 925 9.1% 1,265 10.6% 2,190 9.9%
6-Person Household 392 3.9% 681 5.7% 1,073 4.9%
7-or-More Person
Households 315 3.1% 554 4.6% 869 3.9%
Total 1,632 16.1% 2,500 20.9% 4,132 18.7%
Source: American Community Survey, Table B25009, 5-Year Estimates, 2021.

Appendix B: Housing Needs Assessment B-25

4. Single-Parent Households
Single-parent households often require special consideration and assistance. They have a greater need for affordable and accessible day care, health care, and other supportive services. Female-headed households are more likely to have lower incomes than similar two-parent households.

The City of Watsonville has 1,669 single-parent households, as shown in Table B-28. Of all single-parent households in the City, 3.7 percent are single-parent males and 11 percent are single-parent females. In comparison, 3.3 percent of Santa Cruz County single-parent households are single-parent males and 7.1 percent are single-parent female. In the City, approximately 12.8 percent of households are single parents living in poverty.

Table B-28: Single Parent Households
Jurisdiction
Single-Parent Male, No
Spouse Present
Single ParentFemale, No Spouse
Present
Single-Parent HH
Living in Poverty Single Parent HH
Count Percent
Total1 Count Percent Total1 Count PercentTotal1 Count Percent Total1 Watsonville 417 3.7% 1,252 11.0% 1,456 12.8% 1,669 14.7% Santa Cruz
County 2,048 3.3% 4,374 7.1% 626 1.0% 6,422 10.5%
Note: HH = Households

1. Percent of total Households
Source: American Community Survey, Table B17010, 5-Year Estimates, 2021 Table B-29 shows the breakdown of female-headed households in Watsonville. Of the total households in Watsonville, 24.2 percent are single female households with no spouse present. From those households, 6 percent are living in poverty. The percentage of single-parent female households living in poverty in Watsonville is similar to the County, 1.6 and 1.8 percent, respectively. A Program has been added in the Policy Plan to encourage providing more housing resources for female-headed households in the City.

Table B-29: Female Headed Households
Jurisdiction
Single Female HH,
No Spouse Present
Single Female HH
Living in Poverty
Single Parent Female,
No Spouse Present
Single Parent Female
HH Living in Poverty
Count Percent Count Percent Count Percent Count Percent Watsonville 2,753 24.2% 676 6.0% 769 6.8% 181 1.6%
Santa Cruz
County 9,852 16.1% 1,463 2.4% 5,448 8.9% 1,074 1.8%
Note: HH = Households
Source: American Community Survey, Table B17012, 5-Year Estimates, 2021

Appendix B: Housing Needs Assessment B-26

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

The U.S. Department of Agriculture, National Agriculture Statistics provides data on hired farmworkers across the United States at both a state and county level. Within Santa Cruz County, there were a total of 16,114 hired farmworkers in 2017. A total of 11,254 are considered permanent and 4,860 were considered seasonal (working less than 150 days annually). The County also reported a total of 2,254 migrant farmworkers. There has been a decline in the farmworker population in Santa Cruz County but an increase in nearby regions such as Monterey County. A majority of the County’s farmworker population lives in incorporated areas of Santa Cruz County.

According to the American Community Survey, Watsonville residents employed in Farming, Fishing, and Forestry occupation earn one of the lowest salaries in comparison to other occupations, with an estimated median income of $30,567 which is categorized as extremely low-income in Watsonville. Within the City, there is no agricultural production or land zoned for agricultural uses. Most agricultural activities occur in the adjacent unincorporated areas of the County of Santa Cruz and the County of Monterey. While Watsonville is surrounded by agricultural land, many of the food processing industries that traditionally occupied the City’s industrial areas have closed or left the area.

Due to a combination of limited English language skills and very low household incomes, the ability of farmworkers to secure rental housing or obtain housing loans for home purchase is extremely limited. A growing number of migrant workers do not leave California during the non-farm season, but instead stay in the area and perform non-agriculture work such as construction and contracted jobs. Housing needs of this migrant, but non-farmworker population are partially addressed by permanent housing units, but additional migrant or temporary housing units are needed. Migrant and other seasonal farmworkers usually do not have a fixed physical address and work intermittently in various agricultural and nonagricultural occupations during the year. Many farmworkers or their families live in rural or remote areas and are reluctant to voice their housing needs and concerns to local governments or housing authorities.

Because market-rate housing may be more than farmworkers can afford, many farmworkers are forced to share a housing unit with other farmworkers or families, causing a severely overcrowded living situation. Migrant and seasonal farmworkers face several housing challenges, but primarily substandard housing conditions.

A recent study conducted by the University of California, Merced, reveals that farmworkers in the State are predominantly renters, with the majority residing in single-family homes. These homes often suffer from poor maintenance, making it challenging for renters to regulate indoor temperatures. Additionally, the study found that farmworkers typically live in overcrowded conditions, with a median household size of four persons, compared to the California average of three persons per household. In some agricultural

Appendix B: Housing Needs Assessment B-27
communities, there has been a decline in farm labor due to the shortage of available and affordable housing and employee housing. These communities continue to face concerns regarding housing conditions. According to many code enforcement agencies in agricultural jurisdictions, inspections of farmworker housing frequently reveal safety violations. Additionally, the study highlights the need for third-party housing as many farmers lease the land therefore, they may not be able to develop workforce housing on the property. The study calls for collaboration with third parties to address the special housing needs of farmworkers.

It is difficult to identify farmworker housing needs due to the varying nature of agriculture work.

Farmworkers employed on a year-round basis generally live with their families and seek permanent affordable housing much like other lower-income households. Migrant farmworkers who follow seasonal harvests generally need temporary housing only for the workers themselves and may not include whole families or households. Because there is no agricultural production or land zoned for agricultural uses within the City, the demand for housing generated by farmworkers in the City is likely to be nominal and can be addressed through other types of affordable housing. The City is aware of the housing issues for farmworkers in the broader region and is collaborating with other jurisdictions in the region to address them.

A regional survey and study of farmworker housing in the Salinas Valley (County of Monterey) and the Pajaro Valley (County of Santa Cruz) was conducted in 2018, showing that regionally 5,372 units of permanent affordable farmworker housing is needed to maintain the present “access rate” of 7.6 percent.

This study led to the development of a Regional Action Plan to address farmworker housing needs.

Countywide resources that address farmworker needs come from nonprofit organizations and the County itself. The City also has two affordable housing projects currently under construction and one housing project in the entitlement processthat received funding from the Joe Serna, Jr. Farmworker Housing Grant Program. These affordable housing projects have a specific focus on providing housing to the existing farmworker community that is in the City and will provide a total of 130 new housing units for farmworkers. This will help reduce the need for permanent housing units throughout the region, as identified in the Regional Action Plan.

The Housing Authority of Santa Cruz County owns and manages two sites accommodating 70 two- and three-bedroom for households where at least one household member earns a portion of their income as farm laborers. One of the sites is in Watsonville while the other is just outside of the City’s boundaries.

These units have a low turnover rate as the U.S. Department of Agriculture-Rural Housing Service (USDARHS) allows tenants to stay as long as they are program eligible. Other funding opportunities include U. S.

Department of Agriculture’s (USDA) Off-Farm Labor Housing Direct Loans & Grants program, USDA’s Farm Labor Housing Loans and Grants Program, and Agri-Culture, an educational nonprofits Farm Worker Housing Fund.

The City of Watsonville is committed to address the special housing needs of farmworkers. Housing Program E.6 Farmworker and Workforce Housing will update applicable sections of the Municipal Code to comply with provisions for farmworker and workforce housing in compliance with the Employee Housing Act.

Appendix B: Housing Needs Assessment B-28

6. Extremely Low-Income (ELI) and Poverty Status
According to the CHAS data, there are approximately 2,985 low-income households and 3,370 very lowincome households in Watsonville. Very low-income households are those households that earn 50 percent or less than the AMI for Santa Cruz County. Extremely low-income households are those households that earn less than 30 percent of AMI. Extremely low-income households are generally more likely to experience overpayment, overcrowding, or substandard housing conditions, and are more likely to include transition and supportive housing.

CHAS data indicates there are approximately 4,105 extremely low-income households in Watsonville (renters and owners). Table B-30 Shows the data characterizing the affordability and cost burden for various income groups. Renters are more likely to experience at least one housing challenges than homeowners. The extremely low-income household need is generally estimated as 50 percent of the very low-income RHNA. The City’s very-low-income RHNA is 283 units, therefore, the projected housing need for extremely low-income households is 141 units.

According to 2021 ACS data, 12.9 percent of Watsonville’s population lives in poverty. Figure B-5 illustrates the percentage of people within each racial and ethnic group living below the poverty level.

American Indians and Alaska Natives have the highest percentage among the different racial and ethnic group that experienced poverty at 17.6 percent. Some Other Race alone, Hispanic, and White (not Hispanic or Latino) racial and ethnic groups also had high percentages of poverty.

Figure B-5: Percent below Poverty Level, by Race and Hispanic or Latino Origin Source: American Community Survey, Table S1701, 5-Year Estimates, 2021

13.0%

0.9%

17.6%

3.7%

0.0%

15.4%

9.0%

13.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%
White alone Black or
African
American
alone
American
Indian and
Alaska
Native alone
Asian alone Native
Hawaiian
and Other
Pacific
Islander
alone
Some other
race alone
Two or more
races
Hispanic or
Latino origin

Appendix B: Housing Needs Assessment B-29
Table B-30: Housing Challenges for All Households by Income Category Income Category
Homeowner
Household has at
least one of four
Housing Challenges
% of
Owner
HH
Household has no
Housing Challenges OR
cost burden not available
% of
Owner
HH
Extremely Low (< 30%) 495 7.8% 175 2.8%
Very Low (31% to 50% HAMFI) 400 6.3% 530 8.3%
Low (51% to 80% HAMFI) 510 8.0% 830 13.1%
Moderate (81% to 100% HAMFI) 550 8.7% 770 12.1%
Above Moderate (>100% HAMFI) 345 5.4% 1,745 27.5%
Total 2,300 36.2% 4,050 63.7%
Income Category
Renters
Household has at
least one of four
Housing Challenges
% of
Renter
HH
Household has no
Housing Challenges OR
cost burden not available
% of
Renter
HH
Extremely Low (< 30%) 3,045 36.4% 395 4.7%
Very Low (31% to 50% HAMFI) 2,170 25.9% 270 3.2%
Low (51% to 80% HAMFI) 950 11.4% 695 8.3%
Moderate (81% to 100% HAMFI) 135 1.6% 195 2.3%
Above Moderate (>100% HAMFI) 85 1.0% 425 5.1%
Total 6,385 76.3% 1,980 23.7%
TOTAL HOUSEHOLDS 8,685 59.0% 6,030 41.0%
*The four housing challenges are: incomplete kitchen facilities, incomplete plumbing facilities, more than one person per room, and cost burden greater than 30%
** The four severe housing challenges are: incomplete kitchen facilities, incomplete plumbing facilities, more than 1.5 persons per room, and cost burden greater than 50%
Note: HAMFI equals HUD Area Median Family Income, this is the median family income calculated by HUD for each jurisdiction, to determine Fair Market Rents (FMRs) and income limits for HUD programs. HAMFI will not necessarily be the same as other calculations of median incomes (such as a simple Census number), due to a series of adjustments that are made.

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

7. Persons Experiencing Homelessness
Homelessness has become an increasingly important issue across the State and the region. General factors contributing to the rise in homelessness include increased unemployment and underemployment, a lack of housing affordable to lower- and moderate-income persons (especially extremely low-income persons), reductions in public subsidies to the poor, and the de-institutionalization of the mentally ill.

State law mandates that municipalities address the special needs of homeless persons within their jurisdictional boundaries. “Homelessness” as defined by HUD has been updated to include the following descriptions for homeless:
• People who are living in a place not meant for human habitation, in an emergency shelter, in transitional housing, or in an existing institution where they temporarily resided. • People who are losing their primary nighttime residence, which may include a motel or hotel or a doubled-up situation, within 14 days and lack resources or support networks to remain in housing.

Appendix B: Housing Needs Assessment B-30
• Families with children or unaccompanied youth who are unstably housed and likely to continue in that state. This applies to families with children or unaccompanied youth who have not had a lease or ownership interest in a housing unit in the last 60 days, and who are likely to continue to be unstably housed because of disability or multiple barriers to employment. People who are fleeing or attempting to flee domestic violence, have no other residence, and lack the resources or support networks to obtain other permanent housing.

These definitions do not include persons living in substandard or overcrowded housing units, persons being discharged from mental health facilities (unless the person was homeless when entering and is considered homeless at discharge), or persons who may be at risk of homelessness.

The Homeless Point-in-Time (PIT) Count and Survey is conducted at least every two years, typically during the last 10 days of January. The survey approximates the number of people experiencing homelessness in each community and collects information on individuals and families residing in emergency shelters and transitional housing. This includes persons sleeping on the streets, in cars, abandoned properties, or other places not meant for human habitation (the unsheltered). The 2023 Santa Cruz County PIT Count was taken on February 23, 2023. Table B-31 shows the breakdown of the homelessness count in Watsonville, nearby jurisdictions, and Santa Cruz County. From 2022 to 2023, Watsonville had a slight increase.

Table B-31: Homelessness in Watsonville and Surrounding Cities (2022-2023) Jurisdictions
Unsheltered Sheltered Total
2022 2023 2022 2023 2022 2023
22-23 Net
Change
Scotts Valley 48 24 0 0 48 24 -50%
Watsonville 175 322 144 99 366 421 15%
City of Santa Cruz 1,046 749 381 279 1,439 1,028 -29%
San Benito County* 169 268 114 89 283 357 26%
Santa Cruz County 396 249 0 0 396 249 -37%

1. San Benito County conducted a holistic assessment, so no city-specific data is available for Hollister.

Source: Santa Cruz County Homeless Census & Survey Comprehensive Report 2023, San Benito County Homeless Census Executive Summary Report 2019, Monterey County Census Report 2022

8. Students
The need for student housing is another significant factor affecting housing demand. Student housing often only produces a temporary housing need based on the duration of the school year. The impact upon housing demand is critical in areas that surround universities and colleges. Monsbey College and Cabrillo College Watsonville Center are located in Watsonville. Colleges near Watsonville include University of California at Santa Cruz, Cabrillo College, Gavilan College, Central Coast College, Hartnell College, and California State University at Monterey Bay. Based on 2021 Census data, there are young adults from the ages 18 to 24 years in the City. Watsonville has an estimated 2,795 persons with some college or Associate's Degree and 436 people with a Bachelor's Degree or higher.

Generally, students tend to have lower incomes and may be additionally affected by a lack of affordable housing, especially housing within easy commuting distance from campus. Students may seek shared housing situations to decrease expenses and can be assisted through roommate referral services offered on and off campus. A lack of affordable housing also influences choices students make after graduating.

Appendix B: Housing Needs Assessment B-31
F. Housing Stock Characteristics
Watsonville’s housing stock includes all housing units located within its jurisdiction. Housing stock growth, type, age and condition, tenure, vacancy, and cost are all important factors in determining the community’s housing needs. This section details the City’s housing stock characteristics to identify how well the needs of current and future residents are addressed.

1. Housing Growth
Table B-32 displays the housing stock growth data for Watsonville and nearby jurisdictions. According to the ACS data, Watsonville added 723 additional housing units between 2016 and 2021, a 5.1 percent increase.

Table B-32: Housing Unit Growth Trends
Jurisdiction 2011 2016 2021 Percent Change
2011 to 2016
Percent Change
2016 to 2021
Salinas 43,216 42,234 44,317 -2.2% 4.9%
Hollister 10,869 10,669 12,056 -1.8% 13.0%
Watsonville 14,494 14,500 15,233 0.1% 5.1%
City of Santa Cruz 23,815 23,974 24,036 0.7% 0.3%
Santa Cruz County 104,278 105,255 106,110 0.9% 0.8%
Source: American Community Survey, Table DP04, 5-Year Estimates, 2011, 2016, 2021.

2. Housing Types
Table B-33 provides a breakdown of number of housing units by type for Watsonville and Santa Cruz County. A majority of the housing in the City is single-family detached (55.5 percent). Approximately 29.3 percent of the City’s housing units are multi-family residences. Mobile homes, boats, and other types of housing make up the smallest housing units by type.

Table B-33: Total Housing Units by Type
Jurisdiction
Single- Family
Detached
Single-Family
Attached Multi-Family
Mobile Homes,
Boats, and other
Types of Housing
Count Percent Count Percent Count Percent Count Percent Watsonville 8,099 55.5% 1,484 10.2% 4277 29.3% 727 5.0% Santa Cruz
County 61,752 64.0% 7,759 8.0% 20,698 21.5% 6,267 6.5%
Source: American Community Survey, Table S2504, 5-Year Estimates, 2021.

3. Housing Availability and Tenure
Housing tenure and vacancy rates generally influence the supply and cost of housing. A community’s tenure can represent trends in the housing market, such as affordability, household stability, and availability of unit types. In many communities, tenure distribution can correlate with household income, composition, and age of the resident.

Table B-34 shows that in 2011, 73.1 percent of all owner-occupied units were single-family detached units.

In comparison, only 36.7 percent of all renter-occupied units were single-family detached units. A majority

Appendix B: Housing Needs Assessment B-32
of renter-occupied units were multi-family units (51.3 percent). In 2021, the percentage of owners that occupied single-family detached units went up by 2.1 percent from 2011. From 2011 to 2021, the percentage of owners that occupied single-family attached units went up by 4 percent while other types of housing units went down by 4 percent.

Table B-34: Occupied Housing Units by Type and Tenure (2011-2021) Housing Type
Owner
Occupied
(2011)
Owner
Occupied
(2021)
Renter
Occupied
(2011)
Renter
Occupied
(2021)
Percent OO
Change
(2011-
2021)
Percent RO
Change
(2011-
2021)
Single-Family
Detached 73.1% 75.2% 36.7% 40.1% 2.1% 3.4%
Single-Family
Attached 9.1% 13.0% 8.1% 7.9% 3.9% -0.2%
Multi-Family 4.6% 2.6% 51.3% 50.3% -2.0% -1.0%
Mobile Homes,
Boats, and Other
Housing Types

13.2% 9.2% 3.9% 1.7% -4.0% -2.2%
Total Number of
Occupied Units 6,481 6,419 7,319 8,168 -9.6% 11.6%
Total Percent of
Occupied Units 47.0% 44.0% 53.0% 56.0% - -
Source: American Community Survey Table B25032, 5-Year Estimates, 2021.

Watsonville has a larger average owner household size compared to the nearby jurisdictions. Watsonville also has a larger average renter household size and renter-occupied households compared to the nearby jurisdictions. Watsonville has a larger percentage of renter households than owner households.

Table B-35: Average Household Size by Tenure
Jurisdiction Owner-Occupied
Households
Average Owner
Household Size
Renter-Occupied
Households
Average Renter
Household Size
Salinas 47.0% 3.53 52.0% 3.96
Hollister 65.0% 3.48 35.0% 3.51
City of Santa Cruz 60.5% 2.51 39.5% 2.25
Watsonville 44.0% 3.26 56.0% 3.87
Santa Cruz County 60.0% 2.67 40.0% 2.71
Source: American Community Survey Table B25010 and B25032, 5-Year Estimates, 2021 Vacancy rates are also an important housing indicator as they indicate the degree of housing choices available. High vacancy rates usually indicate low demand and/or high supply conditions in the housing market. High vacancy rates can make it difficult for owners trying to sell or rent. Low vacancy rates indicate high demand and /or low supply conditions in the housing market. Low vacancy rates can inflate prices making it difficult for lower- and moderate-income households to find housing. Vacancy rates between two or three percent are typically considered healthy for single-family or ownership housing, and vacancy rates of five to six percent are considered healthy for multi-family or rental housing. Vacancy rates are to

Appendix B: Housing Needs Assessment B-33
be viewed in the context of all local and regional market characteristics. Watsonville has the third lowest vacancy rate compared to nearby jurisdictions, with the City of Santa Cruz and the County of Santa Cruz having significantly higher rates. Watsonville has a vacancy rate of 4.2 percent which is a healthy rate for the City.

Figure B-6: For-Sale and Rental Unit Vacancy Rates by Jurisdiction Source: American Community Survey, CP04, 5-Year Estimates, 2021.

Table B-36 below displays ACS data for vacancy rates in Watsonville. Housing for “other vacancy” use has the largest percent of vacancy (52.2 percent), followed by for rent use (28.8 percent). Rented, but not occupied and migrant worker housing types had no vacant units in Watsonville.

Table B-36: Vacant Housing Units by Type
Type of Housing Estimate Percent of Vacant
For rent 186 28.8%
Rented, not occupied 0 0.0%
For sale only 55 8.5%
Sold, not occupied 38 5.9%
For seasonal, recreational, or occasional use 30 4.6%
For migrant workers 0 0.0%
Other vacant 337 52.2%
Total 646 100%
Source: American Community Survey, Table B25004, 5-Year Estimates, 2021 Santa Cruz
County Hollister Salinas Watsonville City of SantaCruz
Vacancy Rate 9.1% 2.7% 3.0% 4.2% 8.2%

9.1%

2.7%

3.0%

4.2%

8.2%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

Appendix B: Housing Needs Assessment B-34

4. Housing Age and Conditions
Housing age can be an important indicator of housing conditions within a community. Housing that is over 30 years old is typically in need of some major rehabilitation, such as a new roof, foundation, plumbing, etc. Many federal and state programs also use the age of housing as one factor in determining housing rehabilitation needs.

Figure B-7 shows the age of the housing in Watsonville. A majority of the housing stock was built between 1970 to 1979 (19.5 percent) followed by 1980 to 1989 (18.6 percent). Additionally, it is important to note that a significant portion of the City’s housing stock was built prior to 1970. The City’s Environmental Justice Element and the Existing Conditions report uses the Housing Stock Age shown in Figure B-7 as a proxy for likely housing conditions. This may indicate that the City has an aging housing stock that may be in need of rehabilitation.

Figure B-7: Housing Stock Age
Source: American Community Survey, Table B25034, 5-Year Estimates, 2021.

Figure B-8 below displays housing units by the year they were built and sorted by tenure. Approximately 23 percent renters live in units built from 1970 to 1979. Many owners live in units built in 1939 or earlier.

Built
1939 or
earlier
Built
1940 to
1949
Built
1950 to
1959
Built
1960 to
1969
Built
1970 to
1979
Built
1980 to
1989
Built
1990 to
1999
Built
2000 to
2009
Built
2010 to
2019
Built
2020 or
later
Watsonville 2,089 760 1,847 1,405 2,966 2,837 1,137 1,951 241 - -
500
1,000
1,500
2,000
2,500
3,000
3,500

Appendix B: Housing Needs Assessment B-35
Figure B-8: Tenure by Year Structure Built
Source: American Community Survey, Table B25036, 5-Year Estimates, 2021.

5. Housing Costs and Affordability
Table B-37 displays the median home value by community. Watsonville had a median home value of $820,096 in 2023. This is below the County median home value at $1,143,107. This places Watsonville at one of the lowest median home values compared to nearby jurisdictions.

Table B-37: Median Home Value by Community (2023)
Jurisdictions Median Home Value
Salinas $695,855
Hollister $765,821
City of Santa Cruz $1,313,772
Watsonville $820,096
Santa Cruz County $1,143,107
Source: Zillow Estimates, Accessed September 21, 2023.

Table B-38 shows the median monthly rental rates for units in Watsonville. The monthly rental rates for all unit types increased from 2017 to 2021, with the highest increase to studios (80.7 percent change).

The true cost of rent may be higher than the ACS estimates but the overall trend and increase in rental costs highlights the dramatic increase in less than a decade.

Built
2014 or
later
Built
2010 to
2013
Built
2000 to
2009
Built
1990 to
1999
Built
1980 to
1989
Built
1970 to
1979
Built
1960 to
1969
Built
1950 to
1959
Built
1940 to
1949
Built
1939 or
earlier
Renter occupied 1.4% 0.6% 7.8% 14.4% 11.0% 23.0% 11.0% 11.5% 5.6% 13.7% Owner occupied 1.0% 1.9% 5.7% 4.5% 9.6% 16.1% 11.3% 16.5% 9.7% 23.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Appendix B: Housing Needs Assessment B-36
Table B-38: Median Gross Rent by Bedroom (2017-2021)
Unit Type 2017 2018 2019 2020 2021 % Change
2017-2021
Studio $746 $768 $770 $1,217 $1,348 80.7%
1 bedroom $989 $1,019 $1,063 $1,108 $1,206 21.9%
2 bedrooms $1,356 $1,411 $1,489 $1,539 $1,652 21.8%
3 bedrooms $1,661 $1,683 $1,604 $1,686 $1,869 12.5%
4 bedrooms $2,217 $2,257 $2,209 $2,244 $2,460 11%
5 or more bedrooms - $920 $782 - $2,203 -
Source: American Community Survey, Table B25031, 5-Year Estimates, 2017, 2018, 2019, 2020, 2021 Housing affordability can be analyzed by comparing the cost of renting or owning a home in the City with the maximum affordable housing costs for households at different income levels. This information can help estimate the affordability of different sizes and types of housing and indicate the type of households most likely to experience overcrowding and overpayment.

The Federal Department of Housing and Urban Development (HUD) conducts annual household income surveys nationwide to determine a household’s eligibility for federal housing assistance. Based on this survey, HCD developed income limits, based on the Area Median Family Income (AMFI), which can be used to determine the maximum price that could be affordable to households in the upper range of their respective income category. Households in the lower end of each category can afford less by comparison to those at the upper end. The maximum affordable home prices without overpayment for residents in Santa Cruz County are shown in Table B-39 and Table B-40.

Extremely Low-Income Households
Extremely low-income households earn 30 percent or less of the County AMI – up to $34,600 for a oneperson household and up to $53,400 for a five-person household in 2023. Extremely low-income households cannot afford market-rate or ownership housing in Watsonville without assuming a substantial cost burden.

Very Low-Income Housing
Very low-income households earn between 31 percent and 50 percent of the County AMI – up to $57,650 for a one-person household and up to $88,950 for a five-person household in 2023. The maximum affordable price for very low-income households is $173,000 for a one-person household and $250,200 for a five-person household. A one-person very low-income household can afford to pay up to $1,200 in monthly rent and five-person very low-income household can pay up $1,757 in monthly rent. Given housing costs, very low-income households cannot afford market-rate rental or ownership housing in Watsonville without assuming a substantial cost burden.

Low-Income Housing
Low-income households earn between 51 percent and 80 percent of the County’s AMI - up to $92,500 for a one-person household and up to $142,700 for a five-person household in 2023. The maximum affordable home price for a low-income household is $303,300 for a one-person household and $451,100 for a five-person household. A one-person low-income household could afford to pay up to $2,072 in rent per month and a five-person low-income household could afford to pay as much as $3,101 per month.

Appendix B: Housing Needs Assessment B-37
Low-income households in Watsonville would not be able to find adequately sized affordable apartment units (Table B-35).

Moderate-Income Housing
Persons and households of moderate-income earn between 81 percent and 120 percent of the County’s AMI – up to $111,550 for a one-person household and up to $172,100 for a five-person household in 2023.

The maximum affordable home price for a moderate-income household is $374,300 for a one-person household and $561,000 for a five-person household. Moderate income households may be able to purchase a home in Watsonville, depending on the household size. The maximum affordable rent payment for moderate-income households is between $2,547 and $3,836 per month. Appropriately sized, market-rate rental housing is generally affordable to moderate-income households.

Appendix B: Housing Needs Assessment B-38
Table B-39: Affordable Housing Costs for Homeowners (2023) Annual Income Mortgage Utilities1
Tax and
Insurance
Total
Affordable
Monthly
Housing Cost
Affordable
Purchase Price
Extremely Low-Income (30% of AMI)
1-Person $34,600 $494 $241 $130 $865 $87,000
2-Person $39,550 $549 $291 $148 $988 $96,600
3-Person $44,500 $604 $342 $167 $1,113 $106,300
4-Person $49,400 $645 $405 $185 $1,235 $113,500
5-Person $53,400 $668 $467 $200 $1,335 $117,500
Very Low-Income (50% of AMI)
1-Person $57,650 $984 $241 $216 $1,441 $173,000
2-Person $65,900 $1,110 $291 $247 $1,648 $195,200
3-Person $74,150 $1,234 $342 $278 $1,854 $217,000
4-Person $82,350 $1,345 $405 $309 $2,059 $236,500
5-Person $88,950 $1,423 $467 $334 $2,224 $250,200
Low-Income (80% AMI)
1-Person $92,500 $1,725 $241 $347 $2,313 $303,300
2-Person $105,700 $1,956 $291 $396 $2,643 $344,000
3-Person $118,900 $2,185 $342 $446 $2,973 $384,100
4-Person $132,100 $2,403 $405 $495 $3,303 $422,500
5-Person $142,700 $2,566 $467 $535 $3,568 $451,100
Moderate-Income (120% AMI)
1-Person $111,550 $2,129 $241 $418 $2,788 $374,300
2-Person $127,500 $2,419 $291 $478 $3,188 $425,300
3-Person $143,400 $2,705 $342 $538 $3,585 $475,600
4-Person $159,350 $2,981 $405 $598 $3,984 $534,100
5-Person $172,100 $3,191 $467 $645 $4,303 $561,000

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

Source: Santa Cruz County Housing Authority Utility Allowance Schedule; California Department of Housing and Community Development, 2023 State Income Limits, and Kimley Horn and Associates.

Appendix B: Housing Needs Assessment B-39
Table B-40: Affordable Monthly Housing Cost for Renters (2023) Annual Income Rent Utilities1
Total Affordable Monthly
Housing Cost
Extremely Low-Income (30% of AMI)
1-Person $34,600 $624 $241 $865
2-Person $39,550 $697 $291 $988
3-Person $44,500 $771 $342 $1,113
4-Person $49,400 $830 $405 $1,235
5-Person $53,400 $868 $467 $1,335
Very Low-Income (50% of AMI)
1-Person $57,650 $1,200 $241 $1,441
2-Person $65,900 $1,357 $291 $1,648
3-Person $74,150 $1,512 $342 $1,854
4-Person $82,350 $1,654 $405 $2,059
5-Person $88,950 $1,757 $467 $2,224
Low-Income (80% AMI)
1-Person $92,500 $2,072 $241 $2,313
2-Person $105,700 $2,352 $291 $2,643
3-Person $118,900 $2,631 $342 $2,973
4-Person $132,100 $2,898 $405 $3,303
5-Person $142,700 $3,101 $467 $3,568
Moderate-Income (120% AMI)
1-Person $111,550 $2,547 $241 $2,788
2-Person $127,500 $2,897 $291 $3,188
3-Person $143,400 $3,243 $342 $3,585
4-Person $159,350 $3,579 $405 $3,984
5-Person $172,100 $3,836 $467 $4,303

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

Source: Santa Cruz County Housing Authority Utility Allowance Schedule; California Department of Housing and Community Development, 2023 State Income Limits, and Kimley Horn and Associates.

APPENDIX C Element Update HOUSING RESOURCES

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Appendix C: Housing Resources C-1
Housing Resources
The City of Watsonville provides a variety of resources and services to assist the community in accessing housing which meets their needs and income levels. This Appendix provides a summary of those resources and services.

A. Neighborhood Assets
The City has a number of resources that serve the needs of different household types. Community resources in the City include, but are not limited to, the following:
• La Manzana Community Center: A part of the Community Bridges Program, this center provides food distribution, parent education, public benefits assistance, and counseling, among other programs. La Manzana is located in on Main Street.
• Gene Hoularis & Waldo Rodriguez Youth Center: Located downtown, the youth center offers numerous programs for youth ages between the ages of 6 and 22. In addition to activities offered by the center, youth are able to get homework help, a variety of trips, classes, and special latenight events for middle and high school students. • Park Facilities: Ramsay Park – a major community park with a community center; skate park; trail/levee access; soccer fields; baseball/softball fields; tennis, basketball, and volleyball courts; and playgrounds for children and toddlers
o Seaview Park
o Emmett Courts Park
o Franich Park
• Watsonville Farmers Market: A year-round market located at the Watsonville City Plaza, between Peck and Union Streets.

B. Resources for Special Housing Needs Groups

1. Seniors
Seniors (persons 65 years of age and older) typically prefer to stay in their own homes as long as possible.

If family members are nearby, they can also assist with basic care needs, enabling seniors to remain in their homes longer. However, this is not always possible. Senior Network Services helps match seniors in shared housing arrangements.

Additional resources are available for seniors throughout the community, including:
• Watsonville Senior Center: Provides the elderly with social network opportunities through a variety of activities such as computer classes, social events, and weekday lunches. • HOME Tenant-Based Rental Assistance: The HOME Tenant-Based Rental Assistance (TBRA) program provides subsidies to low-income, senior, and disabled households at varying levels based on household income. Through the Santa Cruz County Housing Authority, Watsonville residents may receive TBRA Voucher assistance.

Appendix C: Housing Resources C-2
• Senior Network Services: A nonprofit agency providing senior citizens and persons with disabilities with information, guidance, and assistance in coordinating existing resources to promote independence and the highest quality of life. Some of the services required include information and assistance services, Medicare counseling, case management, money management, family caregiver support, home help and respite care registry, and Senior Network Housing.
• Other resources include:
o Home delivery by Meals on Wheels.
o Project Scout for tax assistance services.
o Grey Bears Healthy Food Program is a service to provide a weekly grocery bag of fresh produce and healthy staples.
o Second Harvest Food Bank offers a Farmers Market style food bank for citizens.

2. Persons with Disabilities
The City of Watsonville is a part of the Watsonville/Santa Cruz County Continuum of Care (CoC). Within this CoC, there are multiple agencies that help provide resources for the CoC to serve residents with special needs, such as disabilities. Participating agencies include Monarch Services, Housing Matters (Formerly Housing Services Center), Pájaro Valley Shelter Services, and Families in Transition. The County of Santa Cruz Human Resources Agency coordinates Federal, State, and County government funding for programs and services for disabled populations in Watsonville.

Other available community resources for people returning from mental and physical health institutions are the Santa Cruz County Mental Health Team with services that include:
• Coordinated Care Treatment Teams for Older Adults Team (60 and above with a complex medical condition) and Services: Focused on older adults with a major mental illness and complex medical conditions who are in need of case management and medication services. • Recovery Team (26 and above): Provides coordinated care to individuals with chronic mental illness and/or with severe functional impairments.
• South County Adult (SCA) Team: Provides coordinated care to mental health patients living in Watsonville and the southern areas of Santa Cruz County who are in need of case management, medication services, and therapy.
• Transition Age Youth (TAY) Team (Youth 18-25): Will coordinate care to young adults with a major mental illness who are in need of case management, medication services, therapy as well as vocational and educational supports.

3. Persons Experiencing Homelessness
Homelessness is one of the more pressing issues in Santa Cruz County as a whole. In 2022, the Santa Cruz County Homeless Census and Survey documented 2,299 homeless persons in Santa Cruz County, of who 366 resided in Watsonville. The primary reason for homelessness in Santa Cruz County unemployment.

The following lists services and facilities in place to address the needs of persons experiencing homelessness:

Appendix C: Housing Resources C-3
• Monarch Services: Offers immediate crisis response to victims of domestic violence and sexual assault. Support services include emergency shelter for victims and their children, peer counseling, advocacy, information, referrals, drop-in support groups, and assistance. Monarch also provides community education presentations to schools, community groups and service providers.
• Pájaro Valley Shelter Services: Provides families with a path to stable, self-sufficient futures through short- and longer-term housing and supportive services. 1-year, 2-year, and long-term supportive housing is offered through PVSS, along with programs that also help promote the acquisition of permanent housing.
• Families in Transition: Provides services that help provide temporary rental assistance and case management to families who are experiencing housing instability or are at imminent risk of becoming homeless. Case managers work closely with program participants to identify challenges to housing stability and come up with individualized housing stability plans to ensure client success. They are partnered with many different government agencies to achieve these goals as well.
• Santa Cruz Community Counseling Center: A private rehab facility located in Watsonville. The center specializes in the treatment of mental health and substance abuse, opioid addiction, and alcoholism.
• Encompass Community Services (ECS): Encompass has about three dozen programs ranging from Head Start, Parenting groups, mental health and substance abuse recovery, and supportive housing. It also operates the River Street Shelter, a 32-bed facility for homeless adults on the Housing Matters campus with a focus on those with mental illness. Encompass also operates the TAY Drop-In Center, which assists current and former foster, probation placement, and homeless youth ages 15-24 in building the skills, self-esteem, and support system. The Drop-In Center is equipped with a cozy living room, kitchen, laundry, and computer lab, and offers counseling services, food, and clothing donations, as well as a daily hot meal. • HERO: The Homeless Engagement Resources Officers: links two police officers with the County’s Homeless Outreach, Proactive Engagement Services (HOPES) Team, to better engage homeless people on the streets and connect them with appropriate behavioral health and other services. • County Office of Education Students in Transition Project: provides a homeless project specialist to ensure educational rights and protections for children and youth experiencing homelessness.

The program provides services for 1,500 students who are homeless and serves as an educational liaison for all public and private districts and schools. • Community Action Board Shelter Project: daily hotline with information and referral to shelters and other services. The Project also provides a countywide homeless housing and service resource guide, Voicemail for homeless people, emergency motel vouchers for medical emergencies, and eviction/foreclosure assistance. Also partners with County Office of Education (above) to implement the Youth Homelessness Response Team, providing and integrated services team approach for youth experiencing homelessness.

Appendix C: Housing Resources C-4
• Association of Faith Communities (AFC): Rotating Faith-Based Community Shelter Program sheltering 20 persons per night in different host sites each night. Includes evening meal breakfast, and portable shower. AFC also operates a safe parking program for persons living in vehicles. • Other Population-Specific Shelters: Pagett Center, 12 beds for homeless Veterans; Siena House, 10 beds for pregnant/newly parenting women; Monarch Services, Mariposa House 18 beds for women/children fleeing domestic violence; Jesus, Mary, and Joseph Home, 12 bed families with children and terminally ill persons.
• HUD-Veterans Affairs Supportive Housing Program (VASH): combines HUD rental assistance for 200 homeless Veterans with case management and clinical services provided by a Veterans Affairs caseworker.
• Supportive Services for Veterans Families (SSVF): prevention and rapid rehousing services programs provided by Housing Matters (above) and the Veterans Resource Center. • Families in Transition (FIT): operates a series of prevention and RRH programs for families experiencing homelessness, funded by HUD HOME TBRA, HUD CoC, County CHAMPS Program, CalWorks Welfare-to-Work, and the California Bringing Families Home Program.

Additionally, the City has two emergency shelters to assist persons experiencing homelessness. These include:
• Rebele Family Shelter: 90-bed facility for homeless families with children to reside while working toward obtaining permanent housing. Case managers provide support as well as coordination of community services and resources to help families build stability and long-term self-sufficiency. • Paul Lee Loft Shelter: 46-bed adult focused shelter for those experiencing homelessness and are partnering with Housing Matters to end their homelessness. The goal of this shelter program is to provide a temporary and safe place while clients actively work on finding permanent, stable housing.

4. Female-Headed & Large Households
Female-headed households may benefit from resources like affordable and accessible daycare, financial assistance, and other supportive services. Female-headed households may have lower household incomes compared to two parent households, and it may be more likely they will need more assistance. Larger households also face similar issues due to the amount of people that need support, and it is likely that the household income is not sufficient to do so.

In 2022, the City of Watsonville there are 1,669 single-parent households, with a total of 1,456 female single parent households. Additionally, there are 2,190 units in the City that are considered large households. While the City does not have local-oriented resources, the County of Santa Cruz works with the non-profit organizations to provide needed assistance to these households.

The following is a list facilities and resources that aim to support female-headed and large households:
• Community Bridges: works to provide support for families in the County of Santa Cruz to address various needs. Types of assistance includes nutrition, early childcare and education, public benefits enrollment, and support for women who are pregnant or new mothers.

Appendix C: Housing Resources C-5
• Salud Para La Gente: provides healthcare services and support for families. Salud also assists in applying for various types of health insurance as well as programs like CalFresh. • Monarch Services: aims to provide assistance to women that are in unsafe or domestic violence situations. Monarch also provides aid for women’s health, mental health, and emergency shelter.

C. Publicly Owned Land
Effective January 2021, eight former “public housing” complexes located in the City were converted for use in the Housing Choice Voucher (HCV) program. These complexes are now owned and operated by New Horizons Affordable Housing and Development Inc., a nonprofit subsidiary of the Housing Authority of the County of Santa Cruz (”Housing Authority”). The Housing Authority offers tenant-based Housing Choice Vouchers that can be used in Watsonville. The Housing Authority also offers Project Based Vouchers (PBVs), which are allocated to specific units, and have been utilized to fully develop and occupy two projects in Watsonville, at the Pippin Orchard Apartments and Pajaro Valley Shelter Services. The Housing Authority and New Horizons have their own policies and procedures for inspections and maintenance of the units they own or manage that are occupied by voucher users.

The Housing Authority has issued a request for proposals for Project Based Vouchers (PBV). The Request for Proposals (RFP) is typically published on an ongoing basis to provide interested parties in the community with the opportunity to request Project Based Vouchers. The Housing Authority has conditionally approved Project Based Vouchers for:
• 37 units in Eden Housing’s 1482 Freedom Boulevard development; • 43 units for MidPen’s Miles Lane development;
• 37 units for MidPen’s Pippin Phase II development; and • 78 units for Shangri-La’s 1620 West Beach Street Project Homekey development.

The commitment of Project Based Vouchers is often vital to the successful financing of an affordable housing development. The Housing Authority invites affordable housing development through the PBV RFP process as published on their website.

D. Financial Resources
Providing an adequate supply of decent and affordable housing requires funding from various sources.

The City, developers, and residents have access to the following funding sources.

1. Housing Choice Vouchers (HCV)
The Housing Choice Voucher (HCV) program is a federal government program to assist very low-income families, the elderly, and the disabled with rent subsidy payments in privately owned rental housing units.

HCV participants may choose any housing that meets the requirements of the program and are not limited to units located within subsidized housing projects. They typically pay 30 to 40 percent of their income for rent and utilities. The Santa Cruz County Housing Authority administers and manages the HCVs within

Appendix C: Housing Resources C-6
Watsonville. Table C-1 provides rental housing projects that are provided by HCVs. The City shares information about HCVs and other resources available on the City website and at the public counter.

Table C-1: Assisted Affordable Rental Housing Through HCVs in Watsonville Project Name Affordable
Units Type Owner/Operator
Vista Montana
Apartments 132 - Clarum Homes & Communities
Villa La Posada 42 - CHISPA Housing
Tierra Linda Apartments 18 - Eden Housing Management, Inc.

Pajaro Court 10 - Eden Housing Management, Inc.

Pacific Terrace
Associates 28 - Eden Housing Management, Inc.

Pacifica Apartments 20 - Infinity Management
Pippin Orchards
Apartments 46
6 units for persons who will
benefit from supportive services
and 2 units for homeless
persons with disabilities
Mid-Pen Housing
Project Based Vouchers:

Resetar – 15 W Lake Ave 52
47 households with Special
Needs and 5 referrals from
Veteran Administration
Abode Services, Housing Authority
Mod Rehab 6 - Housing Authority
Mod Rehab 6 - Housing Authority
Mod Rehab 7 - Housing Authority
Affordable Housing –
160 Blackburn Ave. 14 - Housing Authority
Affordable Housing –
308 Clifford Ave. 16 - Housing Authority
Affordable Housing –
310-314 Clifford Ave. 16 - Housing Authority
Affordable Housing – 50
Arista Ct. 16 - Housing Authority
Affordable Housing – 55
Arista Ct. 15 - Housing Authority
Affordable Housing –
Crestview Dr. 16 - Housing Authority
Affordable Housing –
Montebello Dr. 16 - Housing Authority
Affordable Housing –
Seneca Ct. 24 - Housing Authority
Casa Pajaro USDA 34 Farmworker Housing Authority
Tierra Alta USDA 36 Farmworker Housing Authority
Migrant Center 104 Farmworker Housing Authority
Jardines del Valle 43 Farmworker MidPen Housing Corporation San Andreas Farm Labor
Camp 43 Farmworker MidPen Housing Corporation
Villas del Paraiso 51 - MidPen Housing Corporation
Via del Mar 40 - Mid Pen Housing Corporation
Sunny Meadows
Apartments 200 - MidPen Housing Corporation

Appendix C: Housing Resources C-7

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

CDBG funds can be used for a wide array of activities, including:
• Housing rehabilitation;
• Lead-based paint screening and abatement;
• Acquisition of building and land;
• Construction or rehabilitation of public facilities and infrastructure; and • Public services for low-income households and those with special needs Each year, the City receives CDBG funds from the U.S. Department of Housing and Urban Development.

The City Administration is responsible for administering these funds. These funds must be used to develop viable communities by promoting integrated approaches that provide that provide items such as decent housing, a suitable living environment, and expand economic opportunities for low- and moderateincome persons.

Table C-1: Assisted Affordable Rental Housing Through HCVs in Watsonville Project Name Affordable
Units Type Owner/Operator
Schapiro Knolls 88 People working/ living in SC
County MidPen Property Management
Pippin Orchard
Apartments 46
6 units for persons with Special
Needs and 2 units for transitionaged-youth with special needsMidPen Housing Corporation Northgate Apartments 81 - PacCom Management Services
Stone Creek Apartments 120 - Winn Residential
Paloma del Mar 129 Senior (55 or older) The John Stewart Company Pajaro Vista 106 Senior (65 or older) Woodmont Real Estate Services Clifford Manor 35 Senior/ Persons with Disabilities The John Stewart Company Independence Square 100 Senior/ Persons with Disabilities Independence Square Housing Corporation
Monarch Corporation 4 Persons with Disabilities Encompass Community Services Casa de Exito 5 Persons with Disabilities Encompass Community Services CFSC, Inc. – 536/538
Lincoln St. 4 Persons with Disabilities Encompass Community Services CFSC, Inc. – 2718
Freedom Blvd. 9 Persons with Disabilities Encompass Community Services CFSC. Inc. – 120
Anderson 5 Persons with Disabilities Encompass Community Services Pajaro Valley Shelter
Services (PVSS) 4 Family Pajaro Valley Shelter Services (PVSS) Sources: List of Rental Units with Low Income and Other Eligibility Requirements in Santa Cruz County (Santa Cruz County Housing Authority)

Appendix C: Housing Resources C-8
The City administers its own CDBG program and receives approximately $750,000 annually in CDBG funds from HUD. To obtain funding applicant projects or programs must meet eligibility requirements and demonstrate that they benefit very low- and low-income persons within the City.

3. SB 2 Grant
The SB 2 grant is intended to fund improvements to expedite local planning processes. The City has been awarded an SB 2 grant and received $160,000.

E. Energy Conservation

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

Pacific Gas and Electric Company offers programs to promote the efficient energy use and assist lowerincome customers. Pacific Gas and Electric Company participates in the Low-Income Home Energy Assistance Program and Energy Saving Assistance Program to help homeowners and renters conserve energy and control costs. Eligible customers receive no-cost weatherization, including attic insulation, energy efficient refrigerators, energy-efficient furnaces, weather stripping, caulking, low-flow showerheads, water heater blankets, and door and building envelope repairs which reduce air infiltration.

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

Energy conservation strategies can help reduce energy consumption which would reduce monthly costs to homeowners and renters. Examples of energy conservation strategies include weatherization such as installation of more efficient appliances and solar energy systems. Buildings can also be designed to incorporate energy conservation strategies such as cooling materials and building orientation. The City has a Climate Action and Adaptation Plan (CAAP) that was adopted and incorporated into the City’s 2005 General Plan on October 26, 2021, under Resolution No. 293-21. The CAAP includes initiatives related to climate action, climate adaptation, and climate restoration. The CAAP is also a CEQA-qualified Greenhouse Gas (GHG) reduction plan pursuant to CEQA Guidelines §15183.5 and may be used to streamline the analysis of GHG emissions for projects. The CAAP encourages energy conservation strategies and since adoption of the CAAP the City has seen an increase in solar energy system installations.

APPENDIX D Element Update HOUSING CONSTRAINTS

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Appendix D: Housing Constraints D-1
Housing Constraints
A variety of constraints may affect the provisions and opportunities for adequate housing in the City.

Housing constraints consist of both governmental constraints (including, but not limited to, development standards and building codes, land use controls, and permitting processes) and non-governmental or market constraints (including, but not limited to, land costs, construction costs, and availability of financing). Potential infrastructure and environmental obstacles are also classified as housing constraints.

Combined, these factors can create barriers to availability and affordability of new housing, especially for lower and moderate-income households.

A. Non-Governmental Constraints
Non-governmental constraints largely affect the cost of housing in Watsonville and can produce barriers to housing production and affordability. These constraints may include real wages, the availability and cost of land for residential development, the demand for housing, financing, lending, construction costs, and the availability of labor. This can make it expensive for developers to build any housing, especially affordable housing. The following highlights the primary market factors that affect the production of housing in the City.

1. Land Costs and Construction
Construction costs vary widely according to the type of development, with multi-unit housing generally less expensive per unit to construct that single-unit homes. However, there is a variation within each construction type, depending on the size of the unit and the number and quality of amenities provided.

An indicator of construction costs is Building Valuation Data, compiled by the International Code Council (ICC). The International Code Council was established in 1994 with the goal of developing a single set of national model construction codes, known as the International Codes, or I-Codes. The ICC updates the estimated cost of construction at six-month intervals, providing estimates for the average cost of labor and materials for typical Type VA wood-frame housing. Estimates are based on “good-quality” construction, providing for materials and fixtures well above the minimum required by state and local building codes. In August 2023, the ICC estimated that the average per square-foot cost for good-quality housing was approximately $154.36 for multi-unit housing, $175.86 for single-unit homes, and $193.82 for residential care/assisted living facilities. Construction costs for custom homes and units with extra amenities, run even higher. Construction costs are also dependent upon materials used and building height, as well as regulations set by the City’s adopted Building Code. For example, according to the ICC, an accessory dwelling unit (ADU) or converting a garage using a Type VB wood framed unit would costs about $165.67 per square foot. Although construction costs are a significant portion of the overall development cost, they are consistent throughout the region and, especially when considering land costs, are not considered a major constraint to housing production in Watsonville.

Land costs can also pose a significant constraint to the development of affordable and middle-income housing and represents a significant cost component in residential development. Land costs may vary

Appendix D: Housing Constraints D-2
depending on whether the site is vacant or has an existing use that must be removed. Similarly, site constraints such as environmental issues (e.g., steep slopes, soil stability, seismic hazards, flooding) can also be factored into the cost of land. Additional costs may be associated with redeveloping and/or converting sites which may influence the cost of the rental units or home value.

A Zillow search for vacant lots sold between September 2020 to September 2023 returned lots ranging from 0.25 acres to 6.23 acres. Of the lots listed, the cost ranged significantly depending on the area of the City. For available lots of land located on the outskirts of the City’s urban area, the pricing of land cost less than those located in the more urbanized parts of Watsonville. Table D-1 shows the acreage cost of vacant land in Watsonville compared to neighboring jurisdictions.

Table D-1: Average Vacant Land Cost
Jurisdiction Average Lot Acreage Cost Per Square-Foot
Salinas 2.11 acres $3.93/sq. ft.

Hollister 3.46 acres $5.13/sq. ft.

City of Santa Cruz 4.69 acres $16.67/sq. ft.

Watsonville 3.32 acres $2.59/sq. ft.

Source: Zillow (September 2020-2023)

2. Availability of Financing
The availability of financing in a community depends on a variety of factors such as the type of lending institutions active in a community, lending practices, algorithms, rates, fees charged, laws and regulations governing financial institutions, and equal access to such loans. Additionally, availability of financing affects a person’s ability to purchase or improve a home. Under the Home Mortgage Disclosure Act (HMDA), lending institutions are required to disclose information on the disposition of loan applications and the income, gender, and race of loan applicants. Determining whether home financing is available to all residents of a community is the primary concern in a review of lending activity, regardless of income, sex, race, or ethnicity. The provided data includes the disposition of loan applications submitted to financial institutions for home purchase, home improvement, and refinancing in the Santa CruzWatsonville MSA/MD.

Table D-2 below displays the loan applications for the Santa Cruz-Watsonville MSA/MD per the 2021 Home Mortgage Disclosure Act report. Based on the data, applications in the 100-119 percent of the MSA/MD median had the highest rates of loan approval. Within that income category, those who identify as Native Hawaiian or other Pacific Islander had the highest rates of loan approval (80%), while those who identify as American Indian and Alaska Native and Hispanic or Latino had the lowest rates (60 and 65.2 percent, respectively). General trends across the data show that as income increased, the approval percentages increased. Applicants who identify as White had significantly more applications than any other racial or ethnic group; they accounted for 81 percent of all applications received. According to the data, applicants who identify as Black or African American were on average more likely than other race/ethnicities to receive a loan approval (70.1 percent). On average, applicants who identify as Black or African American had approval rates approximately 24 percent higher than the lowest approval rate of all

Appendix D: Housing Constraints D-3
race or ethnicity groups (American Indian and Alaska Native with 45.2 percent approval). Given the generally high rates of loan approvals, home financing is typically available and not considered to be a constraint to the provision and maintenance of housing in Watsonville.

Table D-2: Disposition of Loan Applications by Race/Ethnicity – Santa Cruz-Watsonville MSA/MD Applications by Race/Ethnicity Percent
Approved
Percent
Denied
Percent
Other1
Total Count
LESS THAN 50% OF MSA/MD MEDIAN
American Indian and Alaska Native 21.4% 42.9% 35.7% 14
Asian 35.7% 31.0% 33.3% 42
Black or African American 61.5% 23.1% 15.4% 13
Native Hawaiian or other Pacific Islander 0.0% 100.0% 0.0% 2 White 48.6% 26.1% 25.3% 1,086
Hispanic or Latino 41.9% 32.6% 25.6% 227
50-79% OF MSA/MD MEDIAN
American Indian and Alaska Native 46.2% 23.1% 30.8% 13
Asian 46.7% 30.7% 22.7% 75
Black or African American 50.0% 25.0% 25.0% 12
Native Hawaiian or other Pacific Islander 66.7% 16.7% 16.7% 6 White 65.0% 14.9% 20.1% 1,942
Hispanic or Latino 60.2% 17.1% 22.7% 467
80-99% OF MSA/MD MEDIAN
American Indian and Alaska Native 33.3% 66.7% 0.0% 6
Asian 56.0% 8.0% 36.0% 25
Black or African American 100.0% 0.0% 0.0% 3
Native Hawaiian or other Pacific Islander 50.0% 0.0% 50.0% 2 White 69.1% 8.8% 22.1% 748
Hispanic or Latino 61.4% 14.3% 24.3% 140
100-119% OF MSA/MD MEDIAN
American Indian and Alaska Native 60.0% 20.0% 20.0% 10
Asian 69.9% 8.7% 21.4% 103
Black or African American 76.5% 11.8% 11.8% 17
Native Hawaiian or other Pacific Islander 80.0% 20.0% 0.0% 5 White 73.6% 8.7% 17.7% 2,212
Hispanic or Latino 65.2% 10.5% 24.3% 362
120% OR MORE OF MSA/MD MEDIAN
American Indian and Alaska Native 65.2% 4.3% 30.4% 23
Asian 71.3% 6.6% 22.1% 470
Black or African American 62.5% 12.5% 25.0% 32
Native Hawaiian or other Pacific Islander 71.4% 7.1% 21.4% 14 White 74.5% 7.5% 18.0% 7,018
Hispanic or Latino 68.9% 12.7% 18.4% 550

1. “Other” includes: applications withdrawn, files closed for incompleteness, and purchased loans.

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

Appendix D: Housing Constraints D-4

3. Economic Constraints
The market forces on the economy and the trickle-down effects on the construction industry can act as a barrier to housing construction and especially to affordable housing construction. It is estimated that housing price growth will continue in the City and the region for the foreseeable future. As Figure D-1 shows, the housing market maintained general growth through Summer 2022. Since then, the median sale price has periodically increased, but general remained consistent. The number of homes sold have, however, been on the decline since mid-2021. This may indicate disparity between the price of housing and the community’s ability to afford what is currently available – indicating a need for more affordable housing options.

Figure D-1: Watsonville Housing Market Trends 2020-2022 Source: Redfin, Watsonville Housing Market Trends (Accessed January 11, 2023).

The California Association of Realtors (CAR) report from March 2023 found that single-family homes in Santa Cruz County had a median home value of $1,315,000 and experienced varied price changes from 2021 to 2023. A positive year-to-year home value change occurred from 2021 to 2023 of 9.6 percent; however, there has been a steady decrease in the median sales price. From July 2021 to July 2022, there was a 17.4 percent decrease in median sales price. Lastly, from 2022 to 2023, there was a decrease of

36.8 percent.
0 5
10 15
20 25
30 35
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
Median Sale Price Number of Homes Sold

Appendix D: Housing Constraints D-5
According to a CAR First-Time Buyer Housing Affordability Index report for the third quarter of 2022, the median home price for a single-family home in Santa Cruz County was $1,066,750 with monthly payments of $6,120 (including taxes and insurance). This required a minimum qualifying income of $183,600.

The cost of land and home prices in Watsonville may be considered a constraint to the development and accessibility of housing, particularly affordable housing; however, these trends are consistent with jurisdictions in the region and are not unique to Watsonville.

B. Environmental Constraints
Environmental constraints may inhibit housing development or pose potential threats to existing developments. Features such as hillsides and waterways can present risks due to flood, geologic, and seismic hazards. In addition, human-caused risks, such as hazardous materials, can pose risks to community health and safety. Effective planning to prepare for and mitigate the adverse effects of these risks can help ensure that Watsonville maintains a high level of safety for its community. All candidate sites were analyzed for environmental constraints analyzed below as well as any known conditions that preclude or significantly impact development in the planning period. Examples of other known conditions include shape, access, property conditions, easements, conservation easements, Williamson Act contracts, overlays, contamination, and airport and military compatibility. Based on this analysis, the City determined that all candidate sites can feasibly develop housing and do not experience any known environmental constraints.

With the passing of California Assembly Bill 747 and Sente Bill 99, the State requires that Counties and Cities adopt comprehensive, long term safety elements within their General Plans to identify viable evacuation routes under a range of emergency scenarios. In 2021, the Safety Element was amended by incorporating by reference the 2020 Local Hazard Mitigation Plan (Resolution No. 42-21 (CM)). As part of this effort, the City also prepared an emergency evacuation route analysis in accordance with AB 747 (2019) and SB 99 (2019). This analysis provides an assessment of the transportation network’s capacity, safety, and viability under a range of emergency scenarios, and is attached as Appendix D to the Watsonville 2005 General Plan. The City’s analysis did not identify any residential parcels with less than two available evacuation routes.

1. Geological and Seismic Hazards
Geologic and seismic hazards in Watsonville include those related to earthquakes, steep slopes and landslides, erosion, and soil subsidence. According to the USGS Interactive Fault Map, major faults near Watsonville includes the Zayante-Vergeles fault and San Andreas fault. The Zayante-Vergeles Fault Zone is located approximately three miles north of Watsonville and is the closest major fault to the City. The Zayante-Vergeles and San Andreas faults has the estimated potential to produce magnitudes of 8.0 and

7.4, respectively. Residential development within a seismically active zone could expose Watsonville community members to adverse effects.

A lesser geologic hazard relates to soil stability in the City. Hillsides located mostly on the periphery of the City can be subject to landslides and portions of the City have expansive soil types. In addition, areas found

Appendix D: Housing Constraints D-6
in the City may be subject to liquefaction during a seismic event if groundwater is present near the surface.

To ensure structural stability, seismic and geologic hazards are addressed through the environmental and development review and permitting process. The City’s 2030 General Plan also establishes polices to address potential hazards.

2. Flood Hazards
Potential flooding in Watsonville is attributable to intense rainfalls, localized drainage problems, and failures of flood control. Flooding becomes particularly hazardous when development encroaches onto floodplains, modifying the landscape and altering natural patterns of conveying excess water during floods. The Pajaro River, Salsipuedes Creek, and Corralitos Creek have a long history of flooding; in response, the City has implemented the floodplain management standards of the National Flood Insurance Program and requires new construction within the flood plain to be elevated above the 100- year flood level or flood proofed. To further mitigate this risk, in 2014 Santa Cruz County, in conjunction with the U.S. Army Corps of Engineers conducted a study to determine improvements that could be made throughout the Pajaro Valley Drainage Basin to improve flood capacity. In the Watsonville area, this study was intended to make recommendations relative to the Corralitos and Salsipuedes Creeks and the Pajaro River, which are the greatest potential flood hazards in proximity to the City. In addition, the City and County are currently working with the Department of Fish and Game to allow some clearing of vegetation, which could improve the carrying capacity of these channels by an additional three-year storm capacity.

In October 2022, the Federal and State governments funded the Pajaro River Flood Risk Management Project in order to rebuild the Pajaro River levee system, a system that was constructed in 1949. Currently, the system only provides five to seven years of flood protection before failing; with the system experiencing six major failures since its creation. Once rebuilt, the updated levee system will provide up to 100-year flood protections and construction is expected to begin in 2025.

When streets, buildings, and parking lots cover the natural ground surface, adequate storm drainage facilities must be substituted for the soil’s ability to absorb rainfall. New development is required to provide adequate mitigation measures to accommodate storm water run-off. In Watsonville, the natural drainage pattern has been supplemented by a system of structures, which is described in the 1980 Storm Drainage Master Plan. There are five separate drainage zones within the City – the Watsonville Slough, Struve Slough, West Branch Struve Slough, Downtown, and the Salsipuedes Creek. Figure D-2 illustrates the flood risk in the City with the following risk areas:

Moderate to Low-Risk Areas
• X- Areas outside the 1 percent annual chance sheet flow flooding where average depths are less than 1 foot, areas of 1 percent annual chance stream flooding where the contributing drainage area is less than 1 square mile, or areas protected from the 1 percent annual chance flood by levees. No Base Flood Elevations or depths are shown within this zone. Insurance purchase is not required in these zones.

Appendix D: Housing Constraints D-7
High Risk Areas
• A – Areas with 1 percent annual chance of flooding and a 26 percent chance of flooding over the life of a 30-year mortgage. Because detailed analyses are not performed for such areas; no depths or base flood elevations are shown with these zones. • AE – Areas with 1 percent annual chance of flooding and a 26 percent chance of flooding over the life of a 30-year mortgage. In most instances, base flood elevations derived from detailed analyses are shown at selected intervals within these zones. • AH – Areas with 1 percent annual chance of shallow flooding, usually in the form of a pond, with an average depth ranging from 1 to 3 feet. These areas have a 26 percent chance of flooding over the life of a 30-year mortgage. Base flood elevations derived from detailed analyses are shown at selected intervals within these zones.
• AO – River or stream flood hazard areas, and areas with a 1 percent or greater chance of shallow flooding each year, usually in the form of sheet flow, with an average depth ranging from 1 to 3 feet. These areas have a 26 percent chance of flooding over the life of a 30-year mortgage.

Average flood depths from detailed analyses are shown within these zones.

High Risk – Coastal Areas
• VE – Coastal areas with a 1 percent or greater chance of flooding and an additional hazard associated with storm waves. These areas have a 26 percent chance of flooding over the life of a 30-year mortgage. Base flood elevations derived from detailed analyses are shown at selected intervals within these zones.

Appendix D: Housing Constraints D-8
Figure D-2: FEMA Flood Zones
Source: Federal Emergency Management Agency Flood Maps (Accessed January 11, 2023)

Appendix D: Housing Constraints D-9

3. Fire Hazards
According to the 2005 General Plan, there are high fire potential for certain areas in the city. For land use planning purposes, the City classifies fires into two categories: Wildland fires that occur in underdeveloped areas and urban fires that involve structures and vehicles. Both types are a threat to life and property in the Watsonville Planning Area. Due to a combination of older housing stock, overcrowding, and substandard building conditions, these factors together allow opportunity for large fires to breakout. Additionally, as a major food processing center, Watsonville has a highly concentrated aggregation of cold storage plants, freezing plants, canneries, and packing plants. The large buildings, intense use of plant equipment, chemicals, and methods of production pose a potential fire safety problem. However, important fire prevention precautions have been taken to achieve an acceptable level of risk, including extensive use of
• Sprinkler systems;
• Fire detectors linked to an approved central receiving station; • Frequent inspections; and
• Improved access.

Wildland fires occasionally break out in the grasslands and on the dry, chaparral-covered hills. They are normally contained long before they pose a threat to the urbanized area. The California Division of Forestry has primary responsibility for fire suppression in watershed areas; but under provisions of mutual aid agreements, the City will provide reciprocal aid to other jurisdictions in time of emergency. The Pajaro Valley and County fire departments each have district boundaries and primary response within portions of different service areas.

In addition to measures taken by the City to mitigate wildfire hazards, the California Department of Forestry and Fire Protection (CDF) has mapped the relative wildfire risk in areas of significant population by intersecting residential housing density with proximate fire threat. Figure D-3 the CDF map shows three risk levels: Moderate, High, and Very High. Some portions of the City are located in the moderate to high risk levels.

Appendix D: Housing Constraints D-10
Figure D-3: CALFire Fire Hazard Severity Zones – Watsonville Source: City of Watsonville Local Hazard Mitigation Plan, 2020.

Appendix D: Housing Constraints D-11
C. Governmental Constraints
In addition to market constraints, local policies and regulations may also affect the price of housing and the provision of affordable units. For example, State and Federal regulations affect the availability of land for housing and the cost of housing production, making it difficult to meet the demand for affordable housing, increasing the cost of housing production, and limiting housing supply in a region. Regulations related to environmental protection, building codes, and other topics may have significant, often adverse, impacts on housing cost and affordability.

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

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

The Land Use Element of the General Plan identifies the following categories that can accommodate housing:
• Residential Low Density – This land use category provides a family living environment through single-family housing at densities equal to or less than 7.99 dwelling units per net acre. Most residences in this category are available only at market rate; few can be categorized as affordable. These properties, however, do offer opportunities for accessory dwelling units. • Residential Medium Density - This land use category provides family living environments through cluster developments, mini-lot subdivisions, condominiums, townhomes, apartments, Table D-3: Residential Land Uses and Density Ranges
General Plan Land Uses Density Range
(Dwelling Units per Acre)
Floor Area Ratio
Residential Low Density Up to 7.99 -
Residential Medium Density 8 to 13.99 -
Residential High Density 14 to 36.99* -
Downtown Mixed Use Up to 85 2.0
Downtown Central Core Up to 125 Total FAR: 3.0
Minimum Commercial FAR: 0.15
General Commercial - 0.45 to 1.0 FAR
Industrial - 1.5 FAR
*Note: Up to 42.99 units/acre are allowable for studio or single room occupancy development Source: Watsonville 2005 General Plan, Land Use Designations and Standards of Density and Intensity

Appendix D: Housing Constraints D-12
and mobile homes at densities equal to 8, up to and including 13.99, dwelling units per net acre.

Most affordable family housing units can be delivered in the upper strata of this density range. • Residential High Density - This land use category provides living environments through multistory apartment and condominium type housing at densities equal to 14, up to an including

36.99, dwelling units per net acre. Densities of up to, and including, 42.99 units to the net acre are allowable for studio or single room occupancy development. A fair portion of the City’s affordable housing goals can be accomplished at these densities, particularly for smaller households. Note, however, many locations adjacent to the downtown with this designation will remain at the lower end of the density spectrum. Many of these properties are within stable neighborhoods or historically significant areas. Any modifications to a property towards intensified use will typically be in the form of adding an accessory dwelling unit. • Downtown Central Core - This land use category provides an active and intense development pattern generally flanking Main Street in Downtown Watsonville. Active ground floor uses are required. Upper floors may contain residential units or office space. • Downtown Mixed Use - This land use category provides a similar mix of active and residential uses as the Downtown Central Core designation. The intensity of development is lower than the Downtown Central Core designation with residential uses permitted on the ground floor.

2. Zoning Districts
Seen in Figure D-4, the City’s Zoning Code establishes the following zone districts that permit residential uses:
• Single-Family Residential District (R-1) – The purpose of the Single-Family Residential (Low Density) District is to stabilize and protect the residential characteristics of the district, to promote and encourage a suitable environment for family life, and to provide for detached single-family dwellings and the services appurtenant thereto. • Single-Family Planned Residential District (R-1P) - The purpose of the Single-Family Planned Residential District is to stabilize and protect the residential characteristics of the district, to promote and encourage a suitable environment for family life, to provide for single-family dwellings on individual lots and the services appurtenant thereto, and to retain in perpetuity the special conditions and modifications of the Master Plan and tentative maps imposed on all development located within the R-1P District.
• Multiple Residential District (RM-2) - The purpose of the Multiple Residential District (Medium Density) is to provide rental opportunities for all persons who, by choice or need, may not be purchasing a home and to provide for the development of new subdivisions which meet the density levels prescribed, including planned developments, mini-lot subdivisions, condominiums, stock cooperatives, and community apartment subdivisions. • Multiple Residential District (RM-3) - The purpose of the Multiple Residential District (High Density) is to provide for the development of areas for greater residential density; to stabilize and protect residential characteristics of the district; and to promote a suitable environment for the lives of families and single persons living in the district. • Residential Manufactured Home Park District (R-MH) - The R-MH Overlay District is intended to implement Policy 1.5 of Watsonville’s 2015—2023 Housing Element of adopting “mobile home park exclusive use zoning” as a method to “preserve the existing stock of affordable housing,

Appendix D: Housing Constraints D-13
including mobile home parks through City regulations and land use and development controls” and Goal 1.0 to “improve, conserve and preserve both the safe condition and the continued availability of Watsonville’s existing affordable housing stock in order to meet the needs of all economic segments of the community.” It is also intended to meet the Housing Element’s FiveYear Objective No. 4 to “enact mobile home exclusive use zoning” in order to “preserve the continued availability and affordability of the current affordable housing stock located in the city’s mobile home parks.”
• Public Facilities District (PF) and Institutional District (N) – The purpose of the Public Facilities and Institutional Districts is to clearly separate the development standards and Land use regulations for Public Facilities owned and operated by City or County Government agencies with uses that are available to the general public and other institutional facilities that provide uses that are available to the public but are either privately owned or operated by State and Federal agencies. The Development Standards are intended to outline allowable uses within both the Public Facilities and Institutional zones. While certain uses owned by the State of Federal agencies may not be totally under the jurisdiction of City regulatory controls, the City may still make the determination as to where such facilities should be located and administer a site plan review procedure.
• Downtown Watsonville Specific Plan (DWSP) – The purpose of the DWSP District is to deliver the physical outcomes for downtown Watsonville, based on the community’s Vision, Goals, and Policy Direction as described in Chapter 2 of the DWSP and to enable a lively and dynamic mix of diverse land uses within a safe, comfortable, pedestrian-oriented, mixed-use downtown environment. Shown in Figure D-5, the DWSP concentrates urban activity and intensity in the center of downtown and allows development to transition to existing lower-intensity neighborhood settings at the periphery of the DWSP plan area and to industrial activity to the south. The DWSP District includes four zones and three overlay zones:
o Downtown Core - The Downtown Core Zone is an active, walkable environment, characterized by buildings up to 6 stories. This is the heart of Downtown—generally flanking Main Street—where the most active and intense development patterns and uses are anticipated. Upper floors contain residential units or office space. Buildings are close to the sidewalk and have little-to-no side setbacks.
o Downtown Neighborhood - The Downtown Neighborhood Zone is characterized by smaller scale buildings than those of the Downtown Core Zone and generally includes a similar mix of active and residential uses.
o Downtown Industrial - The Downtown Industrial Zone is where existing industrial uses may continue to exist and operate, while adaptive re-use of those buildings and infill development of a flexible mix of uses—including new housing—are anticipated over time.

Per WMC Section 14-12.400, all new industrial development, as with all new development, will be subject to required findings of compatibility between adjacent uses related to traffic, noise, odors, visual nuisances, and other similar adverse effects. Additional standards for new residential development in this zone must also be followed. • Public Facilities - New development on parcels zoned Public Facilities shall be subject to the development and use standards that are set forth in WMC Section 14-16.800-803.

Appendix D: Housing Constraints D-14
• Main Street Overlay - The Main Street Overlay is where the most active ground floor uses occur, and the highest quality frontages are required. The overlay is contiguous so that the “main street” environment is concentrated and not interrupted by pockets of less active environments. • Gateway Overlay - The Gateway Overlay is provided to extend some of the characteristics of the Main Street Overlay further down Main Street and onto select cross streets – but with some flexibility.
• Neighborhood Transition Overlay - Development within this overlay transitions down in scale to that of the adjoining neighborhoods.
• Thoroughfare Commercial District (CT) – The purpose of the Thoroughfare Commercial District is to provide for retail, commercial, service, amusement, and transient-residential uses which are appropriate to thoroughfare location and dependent upon thoroughfare travel; to be located only in the immediate vicinity of major streets and arterials or on the service drives thereof; and to provide convenient vehicular access and parking for the public. Residential uses permitted with a Special Use Permit.
• Neighborhood Commercial District (CN) - The purpose of the Neighborhood Commercial District is to provide limited centers for convenience shopping in the residential communities and neighborhoods of the City; to provide for a limited amount of retail and service uses adequate to supply the day-to-day needs of the surrounding area; but not to permit the development of a commercial center of such scope and variety as to attract substantial volumes of traffic from outside the neighborhood. Residential uses permitted with a Special Use Permit. • Exclusive Agricultural District (EM-A-1) – The purpose of the Exclusive Agricultural District is to protect and foster agriculture, to permit all normal uses related to agriculture, and to prohibit those that would be in conflict. Insofar as is practicable, it is the intention to retain solely for agricultural production lands of predominantly Class I and Class II soils. Single-family dwelling units are a principally permitted use.
• Interim Agricultural District (EM-A-2) – The purpose of the Interim Agricultural District is to preserve land in interim agricultural use and protect against premature urban development, which are presently unneeded, and for which it may be uneconomic to provide urban services.

One single family unit is permitted principally as long it is under the owner/leasee or employee of the land upon which the use or permitted use is carried on.

Appendix D: Housing Constraints D-15
Figure D-4: City of Watsonville Zoning Map

Appendix D: Housing Constraints D-16
Figure D-5: Downtown Watsonville Specific Plan Zoning Map

Appendix D: Housing Constraints D-17

3. Overlay Districts
An overlay district is a regulatory tool that adds special provisions and regulations to an area in the City.

An overlay district may be added to a neighborhood or corridor on a map, or it may apply to the City as whole and be applied under certain circumstances. All proposed developments within the overlay district must comply with the district’s applicable development standards in addition to the Zoning Code standards. Overlay districts may be a constraint to the development of housing when it sets standards which are more restrictive than the Zoning Code. Below are Watsonville’s overlay districts which address housing development:
• Residential Manufactured Home Park District (R-MH) - The R-MH Overlay District is intended to implement Policy 1.5 of Watsonville’s 2015—2023 Housing Element of adopting “mobile home park exclusive use zoning” as a method to preserve the existing stock of affordable housing, including mobile home parks through City regulations and land use and development controls, and Goal 1.0 to improve, conserve and preserve both the safe condition and the continued availability of Watsonville’s existing affordable housing stock in order to meet the needs of all economic segments of the community.
• Seismic Safety District (EM-SS) – The purpose of the Seismic Safety District is to implement the Seismic Safety Element of the General Plan and the Alquist-Priolo Special Studies Zone Act and to reduce the loss of life, injury, and damage to public and private property and government costs for disaster relief associated with geologic hazards.
• Planned Development District (PD) – The purpose of the Planned Development District is to provide a technique to foster development plans for eligible lands which serve public objectives more fully than development plans permitted under conventional zoning regulations; and to establish criteria for identifying those parcels of land which are eligible for the special procedures available for creative development plans requiring special review and approval procedures.

4. New Growth Areas
Measure U, adopted in 2002, established an Urban Limit Line (ULL) for the City of Watsonville. The measure identified several areas within the City’s Urban Growth Boundary but outside the current City limits as having the potential to accommodate future housing and economic job-generating uses. These areas are referred to as the New Growth Areas. Any annexations outside of the ULL or the designated growth areas would require a vote of the people in addition to the standard annexation process. Measure U required that portions of the ULL expire in 2022 and 2027.

In 2022, voters were presented with two measures related to the extension of the ULL past the 2022 and 2027 expiration dates: Measure Q and Measure S.

Measure Q
In 2021, the Committee for Planned Growth drafted the “Watsonville Planned Growth and Farmland Protection Initiative” (“Initiative”). The stated purpose of the initiative was to promote stability in longterm planning for the City of Watsonville by extending key features of Measure U while allowing flexibility within those limits to respond to the City’s changing needs over time. The initiative included the following components:
• Extension of the expiration date of the three ULL segments to 2040;

Appendix D: Housing Constraints D-18
• Removal of specific plan and phasing requirements for growth areas, including Buena Vista and Atkinson Lane; and
• An option for the City Council to amend the ULL if “necessary to comply with state or federal law regarding the provision of housing,” subject to several findings.

Supporters of the Initiative collected sufficient signatures and the initiative was placed on the November 8, 2022 General Election ballot as Measure Q.

Measure S
In response to the Initiative, the City of Watsonville engaged Economic & Planning Systems (EPS) to assist with a City-led process to evaluate the fiscal and economic impacts of a renewal of the Urban Limit Line (ULL) established under Measure U. The final EPS report made the following findings:

1. While the existing ULL (established by Measure U) has restricted development of prime farmland and environmentally sensitive open space, minimal new development has occurred in growth areas defined by the measure.

2. A range of public- and private-sector housing demand projections as well as policy goals for new housing reveal significant variation in potential future residential development in Watsonville, and renewal of the ULL likely will cause a land supply constraint, with insufficient developable area to accommodate projected growth in more than half (four of seven) of the demand projections considered.

3. Allowing development in currently restricted, new strategic growth areas creates new land supply to meet housing demand projections, but even if new strategic growth areas are opened for development, land supply constraints will continue to affect the City’s ability to meet policy goals for housing development.

4. New development in Watsonville, whether infill within the City limits or development of new strategic areas at the City’s edge, will have one-time infrastructure improvement requirements.

5. Interviews with Police, Fire, and Public Works departments confirm that population growth increases service burdens and department costs under any growth pattern scenario, with the Police department indicating that providing service to new neighborhoods on the urban edge will be more expensive than serving infill development.

6. Creating strategic growth areas at the urban edge could support new economic development opportunities, including a potential visitor-serving development at the intersection of Highway 1 and State Route 129.

Based on the EPS analysis, City Staff engaged and negotiated with the Initiative proponents over several months to see if a revised ballot measure could be crafted that would extend the ULL but allow the City to annex a limited number of additional parcels to accommodate housing and economic development. Negotiations yielded a compromise measure that allowed the City to annex one additional parcel for economic development.

Concurrently, City Staff drafted a countermeasure that would allow the City to amend the location of the ULL to include parcels identified in the 2050 General Plan update process, subject to community input and environmental review, without a vote of the people.

Appendix D: Housing Constraints D-19
On July 7, 2022, the City Council considered the compromise measure, called the “City Modified Initiative,” as well as the countermeasure. The City Council adopted Resolution No. 143-22, approving the countermeasure and directing that it be placed on the November 8, 2022, General Election ballot.

The result was two measures, Measure Q and Measure S, in direct competition on the November 8, 2022, General Election ballot. Both measures passed, but Measure Q was enacted because it garnered a higher number of votes. As a result, the ULL was extended to 2040 with no opportunities for development outside of the growth areas identified in 2002, which remain vacant due to the constraints discussed below.

Buena Vista
The Buena Vista area is adjacent to the northwestern edge of the City. There are significant constraints on development in the Buena Vista area, such as steep hillsides and close proximity to the Watsonville Municipal Airport. As shown in Figure D-6, Airport Safety Zones 2, 3, and 4 encompass most of the Buena Vista development area. Any future growth in the Buena Vista area would have to include very lowdensity housing in order to comply with the strictest interpretation of the Caltrans Airport Land Use Planning Handbook. For instance, only 1 unit per 5 acres would be allowed on land in Airport Safety Zones 3 and 4, and no more than 1 unit per 20 acres would be permitted in Zone 2. In addition, annexation would require concurrent annexation of the Freedom and/or South Manfre Road areas, which would involve the City taking on significant costs related to maintenance and replacement of outdated County infrastructure in those developed residential areas.

Appendix D: Housing Constraints D-20
Figure D-6: Buena Vista Growth Area with Airport Safety Zones

Appendix D: Housing Constraints D-21
Atkinson Lane
This area is located along the northeastern edge of the City, south of Corralitos Creek. The City prepared a Specific Plan for the future development of the area in 2009, which was set aside after a legal challenge to the planning effort by the California Farm Bureau. The Specific Plan envisioned approximately 34.7 netacres for residential uses for the construction of approximately 450 units, including 10.5 net-acres for Residential-High Density; 14.2 net-acres for Residential-Medium Density; 10 net-acres for Residential-Low Density; and 3.5 acres of parks/recreational uses.

As part of the settlement, the County of Santa Cruz was able to rezone two parcels in the Atkinson Lane Specific Plan area for high-density affordable housing. The first parcel was developed by MidPen Housing in concert with the City and created a 46-unit affordable housing complex known as Pippin Apartments.

The entire project was then annexed into the City. The second development, Pippin 2, will provide 80 units of affordable housing and is directly adjacent to the City. It is anticipated that after development is completed, the City will annex the parcel.

5. Specific Plans
The purpose of a Specific Plan is to implement the goals and objectives of a City’s General Plan in a more focused and detailed manner that is area and project specific. Specific Plans contain their own development standards and requirements that may be more or less restrictive than those defined for the City as a whole. The City has two adopted Specific Plans (detailed below) which allow for residential development.

Manabe-Ow Business Park Specific Plan
In 2002, after Measure U was passed, a Specific Plan was prepared for the Manabe-Ow area in Watsonville. The Manabe-Ow Business Park Specific Plan (MOBPSP) was adopted on November 26th, 2010.

The purpose of this 95-acre area was to meet one of the City’s primary economic growth objectives by accommodating up to 2,000 new employment-generating uses, from office and flexible-industrial use spaces to light industrial uses and a small commercial retail area. In addition, a modest workforce housing component was also included. The remaining acreage was set aside for environmental protection and expansion of the Watsonville Slough and slough trail system.

As part of the annexation of the Manabe-Ow property, the owners agreed to the recordation of deed restrictions on the site that prohibits big box retail stores and auto dealers. The deed restriction will expire on December 31, 2030. The amount of retail square footage is limited to 5% of the industrial square footage, with no retail building exceeding 20,000 square feet. The residential portion of the project has been in construction since 2017 and will consist of 87 single family attached and detached homes, including 17 affordable units.

Downtown Watsonville Specific Plan
The Downtown Watsonville Specific Plan (DWSP) area consists of roughly 195.5 acres, with approximately

55.5 acres dedicated to streets and rights-of-way. The purpose of this Specific Plan is to revitalize the Downtown Watsonville area and incorporate additional housing and economic opportunities through

Appendix D: Housing Constraints D-22
higher density infill along the City’s major corridors, which include downtown. The Specific Plan helps achieve these objectives by accommodating up to 3,900 additional residential uses in a compact and active mixed-use environment through both new construction and adaptive reuse of historic buildings. It is important to note that not all sites in the Specific Plan area that can accommodate housing are needed to accommodate the 6th cycle RHNA needs. Appendix F – Sites Analysis contains more information on which sites within the DWSP were selected for the 6th Cycle Housing Element analysis.

The City has received interest from developers seeking to build new mixed-use and residential projects in Downtown Watsonville. Based on this growing interest and attention, the City established the Downtown Watsonville Specific Plan (DWSP) as the visionary guide for Downtown Watsonville to foster significant infill development.

The DWSP allows higher density and intensity development and encourages mixed-use neighborhoods in the downtown area by building on its historic origins and knitting the historic downtown together with adjacent industrial and residential areas to create walkable and complete neighborhoods with a mix of retail, services, amenities, employment, and residential uses. It also encourages compact development near transit to decrease automobile dependency, reduce both local and regional traffic congestion and related greenhouse gas emissions, and provide additional guidance and plans to increase multimodal access to and from the historic Downtown area.

In order to accomplish these goals, the City amended the development standards in the DWSP area, increasing building heights, increasing the maximum density and FAR, reducing parking requirements, creating objective design standards, and providing for administrative approval for new mixed-use developments. By making these changes, which reduce processing time and risk, adds design flexibility, and removes subjectivity and the associated uncertainty from the review process, the City is determined to attract the same type of developments currently occurring in the City of Santa Cruz, particularly in the downtown area.

Community Engagement Summary
The Downtown Watsonville Specific Plan process presented a unique and important opportunity for community members to participate and share their ideas to guide Downtown’s future. A primary objective of the Plan was to accurately reflect community aspirations and ideas. The information gathered through engagement activities were recorded and compiled to ensure City staff, the Advisory Committee, the public, and decision-makers had a full understanding of community and stakeholder opinions when drafting, reviewing, and adopting the Downtown Watsonville Specific Plan.

Stakeholder Meetings
On September 25th and 26th of 2019, the project team met with a range of members from the Watsonville community ‒ community groups, business leaders, advocacy organizations, and community leaders ‒ and conducted 11 stakeholder interviews discussing key issues and opportunities for the Downtown Watsonville Specific Plan. The comments received at these meetings were categorized into five major

Appendix D: Housing Constraints D-23
categories ‒ opportunities, challenges, needs, other comments, and examples of desirable, model communities and areas.

Amongst the business leaders interviewed, two were local for-profit housing developers, one was a nonprofit housing developer, and one represented the local chamber of commerce. They spoke to a range of challenges facing development (e.g., Watsonville is in the shadow of Santa Cruz, property owners are not building on vacant land). In terms of development constraints, they noted that buildings with large floorplates are difficult to lease, given the cost of construction and market rents. Building height limits were not identified as a constraint. Many stakeholders also referenced tall buildings, such as the Resetar building, as having an appropriate height and not being out of scale for a Downtown. The Resetar building is five stories and is located in the newly established Downtown Core Zone, which allows six stories.

Business Focus Group Meeting
A business focus group was held on December 17th, 2020. The purpose of the focus group was the following:
• Review market and regulatory context,
• Share community feedback,
• Discuss what works and what doesn’t, future land uses, and the development framework and process, and
• Explore the viability of potential opportunity sites
The group discussed existing land use regulations, including the need for amending zoning regulations to better accommodate infill housing and revitalize Downtown. Zoning topics of discussion included base zoning, allowed uses by right, densities, height, setbacks, and parking requirements. Taller six-story buildings in the downtown core area were deemed appropriate (i.e., along Main Street) with transitions down to four stories in the nearby residential neighborhoods.

Advisory Committee Meetings
The City Council helped to establish an Advisory Committee for the project, made up of 15 individuals.

Advisory committees are a structured way for individual community members to share their opinions and perspectives, study issues, and develop recommendations in a focused, small group format. Members included local for- and non-profit housing developers. Nine meetings were held during the planning process, at which members reviewed plan concepts, helped to guide the engagement process, and provided advice on the Plan’s direction. These meetings were open to the public through public noticing and Spanish translation was provided at every meeting.

The fifth Advisory Committee meeting included a discussion on the proposed zoning framework. During this meeting, 90 percent of participants indicated that 4-6 story buildings were appropriate for the downtown core area. Similarly, most participants considered building heights of 2-4 stories appropriate for neighborhood-scale buildings. No objections were raised during subsequent Advisory Committee

Appendix D: Housing Constraints D-24
meetings about buildings up to six stories in the downtown core area or up to four stories in adjoining neighborhoods. The local developer on the Advisory Committee that had recently finished a housing project at 445 Main Street did not express concern that a maximum building height of six stories represented a development constraint for any future projects.

Calibrated Development Standards
The consultant team (Raimi + Associates and Sargent Town Planning) and City staff used this feedback along with current market conditions, construction techniques and Building/Fire Codes to calibrate the development standards, including height, density and building intensity (FAR), to allow for taller buildings in the new Downtown Core Zone of up to six stories with a maximum density of 125 du/ac and FAR of 3.0.

In the adjoining Downtown Neighborhood Zone, buildings were allowed at the upper range of four stories with a maximum density of 85 du/ac and FAR of 2.0. These land use regulations were designed to align with market conditions and desired development for the Downtown Core and Neighborhood Zones.

The Downtown Neighborhood (DN) and Downtown Industrial (DI) zones allow up to 85 du/acre with a 4- story height limit. These development standards were developed with input from the development community, applicant interest, and development proposals the City has received. Figure D-7 provides an example of a 4-story development that exceeds the anticipated density for the DN and DI zones in the City, showing the realistic capacity for development in the City. The Downtown Core (DC) zone allows up to 125 du/acre with a 6-story height limit. Additional recent examples of projects built in the Watsonville downtown area following these standards are described in Appendix F in the “Developer Interest and PreApplications” section. Many of the examples listed are within the DWSP areas and comply with the existing development standards without exceptions. These examples demonstrate that there is currently a market for the type of development allowed within the DWSP area.

Jane Barr, a former affordable housing developer for both MidPen and Eden Housing with ties to many projects in Watsonville, Santa Cruz, Santa Cruz County, and the greater Bay Area, does not see the Downtown Watsonville Specific Plan density and height limits as an impediment to housing development and informed the City that MidPen and Eden regularly build projects that exceed 10 dwelling units per acre per floor. She was an Advisory Committee member for the DWSP design process, and identified zero lot line setbacks and reduced parking requirements as examples of ways in which the City drafted the plan to encourage and support housing development.

As an example project, Mrs. Barr referenced the Via Del Mar development located at 124 West Beach Street in Watsonville. The project was developed on a 0.65-acre site, has three stories on top of podium parking, and has a density of 13 units per floor.

The development standards in the DWSP are substantially similar to those of the City of Santa Cruz Downtown Expansion Plan, and City staff identified multiple projects in the City of Santa Cruz that fall within the 4 to 6 story range that redeveloped with densities even higher than those proposed in the DWSP, shown in Table D-4.

Appendix D: Housing Constraints D-25
On September 5, 2023, the City of Watsonville Planning Commission adopted the following resolutions:
• Resolution No. 11-23, recommending the City Council adopt and certify a Final Environmental Impact Report for the Downtown Watsonville Specific Plan and adopting concurrently environmental findings, a mitigation monitoring and reporting program, and a statement of overriding considerations for the project;
• Resolution No. 12-23, recommending the City Council adopt the twenty-ninth amendment to the Watsonville 2005 General Plan to (1) add two new mixed use land use designations to Chapter 4 (Land Use), (2) amend the Land Use Diagram to include these two new land use designations, (3) amend Implementation Measures 4.A.3, 4.C.6, and 10.C.2, and (4) add a new Implementation Measure 4.A.7;
• Resolution No. 13-23, recommending the City Council adopt the Downtown Watsonville Specific Plan; and
• Resolution No. 14-23, recommending the City Council adopt an uncodified ordinance of the City of Watsonville, amending the Zoning Map to reflect the boundaries of the Downtown Watsonville Specific Plan area and an ordinance of the City of Watsonville amending the Zoning Code (Title 14 of the Watsonville Municipal Code) to add a new Part 26 “DWSP District” to Chapter 14-16 in order to refer to the permitted uses and development standards in Chapter 6 of the Downtown Watsonville Specific Plan.

On October 10, 2023, the City of Watsonville City Council adopted the following resolutions:
• Resolution No. 198-23, adopting and certifying a Final Environmental Impact Report for the Downtown Watsonville Specific Plan; and adopting concurrently environmental findings and a statement of overriding considerations for the project and a mitigation monitoring and reporting program in accordance with the California Environmental Quality Act; and • Resolution No. 199-23, approving the twenty-ninth (29th) amendment to the Watsonville 2005 General Plan to (1) add two new mixed use land use designations to Chapter 4 (Land Use), (2) amend the Land Use Diagram to include two new land use designations, (3) amend Implementation Measures 4.A.3, 4.C.6, and 10.C.2, and (4) add a new Implementation Measure

4.A.7.

On October 24, 2023, the City of Watsonville City Council adopted the following ordinances:
• Ordinance No. 1457-23, adopting an uncodified ordinance of the City Council of the City of Watsonville adopting the Downtown Watsonville Specific Plan, a specific plan pursuant to Government Code Section 65460 et seq; and
• Ordinance No. 1458-23, adopting an uncodified ordinance of the City Council of the City of Watsonville amending the Zoning Map to reflect the boundaries of the Downtown Watsonville Specific Plan Area; and
• Ordinance No. 1459-23, adopting an ordinance of the City Council of the City of Watsonville amending section 14-16.100 (Districts) and adding Part 26 (Downtown Watsonville Specific Plan District) to Chapter 14-16 (District Regulations) of Title 14 (Zoning) of the Watsonville Municipal

Appendix D: Housing Constraints D-26
Code in order to refer to the permitted uses and development standards in Chapter 6 of the Downtown Watsonville Specific Plan.

On November 24, 2023, thirty days after the adoption of the ordinances listed above, the DWSP went into effect.

Hypothetical High-Density Development Projects in the Downtown Core and Downtown Neighborhood Zoning Districts
Downtown Core Zoning District
The average lot size of parcels zoned DC (Downtown Core) in the candidate sites inventory is 0.47 acres (approximately 20,473 square feet). A theoretical parcel zoned DC measuring 20,473 square feet (100 feet wide and 205 feet deep) has a maximum density of 125 dwelling units per acre, which equates to 59 units. There are no front or side setback requirements in the DC zone and only a 5-foot rear setback, therefore lot coverage would be 98 percent, which provides a buildable footprint of 20,000 square feet (assuming the maximum height of 6 stories (with the 5th and 6th floors set back 15 feet from the street facade). The maximum potential square footage of the project is 117,000 square feet. However, there is a maximum FAR of 3.0, so the total allowable floor area is 61,419 square feet.

Assuming a mix of approximately 10% 3-bedroom units, 35% 2-bedroom units, 35% 1-bedroom units, and 18% studio units, parking standards for the 59-unit project would require a total of 71 parking spaces. 71 parking spaces require a total of 12,141 square feet, which is not included in the FAR calculation. These parking spaces can be accommodated on the first floor of the structure below and behind the 59 permitted units. Subsequently, 12,141 square feet would be removed from the FAR calculation if it were included under the building.

A proposed development with the unit mix percentages listed above would have a total of six 3-bedroom units, 21 2-bedroom units, 21 1-bedroom units, and 11 studio units, with a total of 41,000 square feet of floor area. Assuming 20% additional floor area per floor for hallways, elevators, etc. on floors 2-6, and counting the 15% commercial floor area and 10% other floor area of the first story, the gross floor area for the building, would be 61,250 square feet (2.99 FAR), which is below the maximum of 61,419 square feet (3.0 FAR).

As such, the City’s standards for maximum density, lot size, setbacks, height, FAR, and parking are not considered a constraint to reaching the maximum units permitted through the DC zoning district.

Downtown Neighborhood Zoning District
The average lot size of parcels zoned DN (Downtown Neighborhood) in the candidate sites inventory is

0.57 acres (approximately 24,829 square feet). A theoretical parcel zoned DN measuring 24,829 square feet (100 feet wide and 248 feet deep) has a maximum density of 85 dwelling units per acre, which equates to 48 units. The maximum floor area ratio (FAR) excluding parking is 2.0 (49,658 square feet). The setback requirements in the DN zoning district are 10-feet for the front yard, and 5-feet for the side and rear yards,

Appendix D: Housing Constraints D-27
which provides a buildable footprint of 20,970 square feet. The project has a 4-story height limit with an FAR of 2.0, with the maximum potential square footage of the project being 49,658 square feet.

Parking standards for a 48-unit project with the unit mix listed above would require 58 parking spaces. 58 parking spaces require 9,918 square feet, which is not included in the FAR calculation. These parking spaces can be accommodated on the first floor of the building below and behind the 48 permitted units.

Subsequently, 9,747 square feet would be removed from the first-floor FAR calculation if it were included under the building.

A proposed development with the unit mix percentages listed above would have a total of five 3-bedroom units, 17 2-bedroom units, 17 1-bedroom units, and 9 studio units, with a total of 33,400 square feet of floor area. Assuming 20% additional floor area per floor for hallways, elevators, etc. on floors 2-4, and counting the non-parking floor area of the first story, the gross floor area for the building, would be 41,050 square feet (1.8 FAR), which is below the maximum floor area of 49,658 square feet (2.0 FAR).

As such, the City’s standards for maximum density, lot size, setbacks, height, FAR, and parking are not considered a constraint to reaching the maximum units permitted through the DN zoning district. This example demonstrates that these standard unit sizes and a mix of bedroom counts are realistic given the density, parking, setback, height, and FAR standards for the DN district, and that these standards do not represent constraints on reaching the maximum units permitted in the DN district. 1-Acre Redevelopment in the DN Zoning District
Many of the opportunity sites in the Downtown Watsonville Specific Plan require the consolidation and redevelopment of multiple adjoining parcels. In the DN (Downtown Neighborhood) zoning district, there is a property owner who owns 3 contiguous parcels that total approximately 43,560 square feet. The combination of these parcels has frontage on two streets which help accommodate access and parking.

This theoretical development has dimensions of 100 feet by 435 feet, a maximum density of 85 dwelling units per acre, for a total of 85 units. The maximum floor area ratio (FAR) excluding parking is 2.0 (87,120 square feet). The setback requirements in the DN zoning district are 10-feet for the front yard, and 5-feet for the side and rear yards, which provides a buildable footprint of 36,125 square feet. The project has a 4-story height limit.

Parking standards for an 85-unit project with the unit mix listed above would require 102 parking spaces. 102 parking spaces require 17,442 square feet, which is not included in the FAR calculation. These parking spaces can be accommodated on the first floor of the structure below and behind the 85 permitted units.

Subsequently, 17,442 square feet would be removed from the first-floor FAR calculation if it were included under the building.

A proposed development with the unit mix percentages listed above would have a total of nine 3-bedroom units, 30 2-bedroom units, 30 1-bedroom units, and 15 studio units, with a total of 58,800 square feet of

Appendix D: Housing Constraints D-28
floor area. Assuming 20% additional floor area per floor for hallways, elevators, etc. on floors 2-4, and counting the non-parking floor area of the first story, the gross floor area for the building, would be 73,500 square feet (1.7 FAR), which is below the maximum floor area of 87,120 square feet (2.0 FAR).

This example demonstrates that larger unit sizes and a mix of bedroom counts are realistic given the density, parking, setback, height, and FAR standards for the DN district, and that these standards do not represent constraints on reaching the maximum units permitted in the DN district. 2-Acre Redevelopment in the Downtown Core Zoning District As in the Downtown Neighborhood district, there are opportunity sites in the Downtown Core zoning district that include the combination of properties to build larger projects. This theoretical example combines land to create a 2-acre (87,120-square-foot) redevelopment site. The site measures 250 feet in width by 348 feet in depth, with a maximum density of 125 dwelling units per acre, totaling to 250 units.

The maximum floor area ratio (FAR) excluding parking is 3.0. There are no front or side setback requirements and only a 5-foot rear setback in the DC zone, therefore lot coverage would be 98 percent, which provides a buildable footprint of 85,750 square feet. Assuming the maximum height of 6 stories (with the 5th and 6th floors setback 15 feet from the street facade) the maximum potential square footage of the project is 507,000 square feet. However, there is a maximum FAR of 3.0, so the total allowable floor area is 261,360 square feet.

Assuming a mix of approximately 10% 3-bedroom units, 35% 2-bedroom units, 35% 1-bedroom units, and 18% studio units, parking standards for the 250-unit project would require a total of 300 parking spaces. 300 parking spaces require a total of 51,300 square feet, which is not included in the FAR calculation.

These parking spaces can be accommodated on the first floor of the structure below and behind the 250 permitted units. Subsequently, 51,300 square feet would be removed from the FAR calculation if it were included under the building.

A proposed development with the unit mix percentages listed above would have a total of 25 3-bedroom units, 88 2-bedroom units, 88 1-bedroom units, and 50 studio units, with a total of 173,200 square feet of floor area. Assuming 20% additional floor area per floor for hallways, elevators, etc. on floors 2-6, and counting the 15% commercial floor area and 10% other floor area of the first story, the gross floor area for the building, would be 259,375 square feet (2.99 FAR), which is below the maximum floor area of 261,360 square feet (3.0 FAR).

This example demonstrates that larger unit sizes and a mix of bedroom counts are realistic given the density, parking, setback, height, and FAR standards for the DC district, and that these standards do not represent constraints on reaching the maximum units permitted in the DC district.

Appendix D: Housing Constraints D-29
Figure D-7: Example Project for 4-Story 101 du/ac Housing Development

Appendix D: Housing Constraints D-30
Table D-4: High Density Projects in Santa Cruz County
Project City Address # of Units # of
Stories Acres Density (du/acre)
Year
Approved Building Permit Status
Pacific Front MixedUse Development Santa Cruz 808-816 Pacific Avenue 205 5 1.44 142 2020 Under Construction Riverfront Project Santa Cruz 418-508 Front Street 175 7 1.04 168 2021 Under Construction Center/Cedar Project,
Cavalry Church Santa Cruz 524-538 Center Street 65 4 0.77 84 2022 Under Construction Calypso Santa Cruz 130 Center Street 233 6 1.19 196 2022 BP Under Review 1800 Soquel Ave
Housing Santa Cruz 1800 Soquel Avenue 84 4 0.81 104 2023 BP Under Review 915-923 Water Street Santa Cruz 915-923 Water Street 105 4 0.58 181 2022 Pending BP Submittal

Appendix D: Housing Constraints D-31

6. Airport Land Use Compatibility
In Watsonville, there is an existing municipal airport located in the northern area of the City. For potential development in/near airport areas located in urban settings, there are special restrictions and standards applied per the 2011 Caltrans Airport Land Use Planning Handbook (Handbook), which provides compatibility standards for uses being proposed in Airport Safety Zones 1 through 6. Each of these zones are described along with the uses allowed in each area below.

Several factors make it reasonable and even appropriate to set safety compatibility criteria for urban areas differently than if in a more rural setting.
• A basic distinction is that urban areas are, by definition, more heavily developed than rural communities. Because Airport Land Use Commissions do not have authority over existing land uses, the opportunity to achieve an ideal level of safety compatibility is less in urban locations. • The comparatively higher land values in urban areas are also worthy of recognition in setting safety compatibility criteria. Allowing only agricultural or other very-low-intensity uses near airports may be quite feasible in rural areas, but not in urban areas. • The established character of land uses in urban places may limit the options for future development. Sometimes all that can be achieved is to hold new development to intensities similar to those that exist. This concept falls under infill developments. • From the perspective of potential risk consequences, rural areas may be less equipped to deal with an aircraft accident than urban places. Compared to city units, rural emergency response units probably have farther to travel and would have a longer response time to reach an accident site. Treating injuries or fighting fires would be delayed. • Finally, a greater societal tolerance for risks—or at least different types of risks—seems to accompany the typically faster pace and higher intensity of life in urban places compared to that of outlying locations.

Airport Safety Zone 1 – Runway Protection Zone
Safety Zone 1 is located on the runway and is the most restrictive of all the Safety Zones. Normal maneuvers in this area are aircrafts that are very close to their final approach or departure. The altitude in this area is typically less than 200 feet above the runway. The most common accidents during arrivals for this Safety Area are downdrafts, wind gusts, and low glide paths. The most common during departures are runway overruns, aborted takeoffs, and engine failures. The risk level in this area is very high and the percentage of near-runway accidents in this zone is between 20 to 21 percent.

Being the most restrictive of the Safety Zones, not many uses are allowed to be developed in this area.

Under normal circumstances, there is usually no use allowed to be developed. The only uses that could be allowed in this Safety Zone, but still should be avoided, are uses that are very low intensity in character and the use is confined to the outer sides of the zone. Parking lots, streets, and roads are also allowed but should be avoided. All new structures and residential land uses are prohibited. Uses that do get allowed will be subject to FAA standards and provisions.

Appendix D: Housing Constraints D-32
Airport Safety Zone 2 – Inner Approach/Departure Zone
Safety Zone 2 refers to the area in the airport that involves the runway and normal maneuvers performed by aircrafts, such as flying low altitudes on a final approach as well as straight-out departures. The usual altitude in this zone is between 200 and 400 feet above the runway. The most common accidents that occur in this area is similar to Safety Zone 1 but with additional instances such as an aircraft undershooting their approaches and forced shorts landings for arrivals, and emergency landing on straight-out departures. The risk level for this area is high and the percentage of near-runway accidents in this zone range from 8 to 22 percent.

Basic compatibility policies described in the Handbook normally allows non-group recreational agriculture, low-hazard materials storage, warehouses, and low-intensity light industrial; uses such as auto, aircraft, and marine repair services. Safety Zone 2 allows but limits the developments of single-story office buildings; in addition to nonresidential uses and activities that attract few people. Uses meant to be avoided in Safety Zone 2 are all residential uses unless proposed as infill in already-developed areas.

Multi-story uses with high density or intensity, shopping centers, and most eating establishments are also to be avoided in the zone. Theaters, assembly uses, office buildings greater than 3 stories, labor-intensive industrial, children’s schools, day care centers, hospitals, hazardous uses, and group recreational uses are all prohibited in this zone.

Airport Safety Zone 3 – Inner Turning Zone
Safety Zone 3 is located in the inner areas of an aircraft approaching or departing from the airport. Normal aircraft maneuvers performed in this zone – especially for smaller, piston-powered aircrafts – is turning base to final on landing approach or initiating a turn to en-route direction on departure. The altitude in this area is usually less than 500 feet above the runway, particularly on the landings. The most common accident types depend on if the aircraft is arriving to or departing from the airport. For arrivals, the most comment accidents are when the pilot overshoots the turn to final and inappropriately cross controls the airplane rudder and ailerons while attempting to return to the runway, which in turn causes a stall, spin, and uncontrolled crash. For departures, one common accident is if a mechanical failure occurs on takeoff.

Another involves low altitude that gives the pilot very few options on emergency landing sites. The last common accident type occurs when the pilot attempts to return to the airport but loses control during a tight turn. The risk level in this area is moderate to high, with the percentage of near-runway accidents in this zone being 4 to 8 percent.

Compatibility policies for this zone usually allow all uses that are allowed in Safety Zone 2, along with greenhouses, low-hazard materials storage, mini-storages, and light-industrial, vehicle repair services.

Uses that are limited yet allowed are all low-density residential uses, office, and low-intensity commercial uses. Higher intensity commercial and nonresidential uses, buildings with more than 3 aboveground habitable floors, and hazardous uses should be avoided in this zone. Lastly, major shopping centers,

Appendix D: Housing Constraints D-33
theaters, assembly facilities, children’s schools, large day care centers, hospitals, nursing homes, and group recreations uses such as stadiums are prohibited in this safety zone.

Airport Safety Zone 4 – Outer Approach/Departure Zone
Safety Zone 4 is located the areas where pilots perform their turn to final to land safely on the runway.

Normal maneuvers usually involve the approaching aircraft being at less than traffic pattern altitude, this is particularly applicable for busy general aviation runways. Other normal maneuvers in this zone involve runways with straight-in instrument approach procedures, and other runways where straight-in or straight-out flight paths are common. Normal altitudes in this zone are less than 1,000 feet above the runway, with the lowest being around 500 feet before the aircraft reaches Safety Zone 4. Some common accidents during arrivals are when the pilot undershoots runway during an instrument approach, the aircraft loses engine power on approach, and forced landings. Common departure accidents usually involve some type of mechanical failure on takeoff. The risk level in this area is moderate, with the percentage of near-runway accidents in this zone is 2 to 6 percent.

Restrictions in Safety Zone 4 are looser than those imposed in the previous Safety Zones. Compatibility in this zone normally allow uses allowed in Zone 3, in addition to restaurants, retail, and industrial. Most low to moderate intensity uses are acceptable but uses that involve the assembling of people are restricted.

Low density residential is allowed but limited in this zone, and high intensity retail or office uses should be avoided. Children’s schools, large daycare centers, hospitals, nursing homes, and group recreational uses and stadiums are prohibited from being developed in this zone.

Airport Safety Zone 5 – Sideline Zone
Safety Zone 5 is located at the outer reaches of the airport area where aircrafts finish their initial takeoff/departure procedures. Normal maneuvers associated with this area include directional control of aircraft on takeoff as well as excessive crosswind gusts or engine torque. The altitude in this area is typically the runway elevation that the airport establishes themselves, which is the vertical distance between the highest point of the landing area of an airport and mean sea level. The most common accident type, for both arrivals and departures, involve the aircraft losing directional control and veering off the side of the runway. The risk level in this zone is low to moderate, with the percentage of nearrunway accidents being around 3 to 5 percent.

Safety Zone 5 has the lesser restrictions of the Safety Zones. The Handbook’s compatibility policies normally allow all uses allowed in Zone 4 but are subject to height limitations for airspace protection.

Other uses normally allowed involves all common aviation-related activities provided that the FAA heightlimit criteria are met. Nonresidential uses that are like the ones allowed in Zone 3 are also allowed but limited in this zone; high-intensity nonresidential and residential uses should be avoided unless the residential use is airport related. It should be noted that all residential uses that are allowed in this zone may be subject to noise factors. Children’s schools, large daycare centers, hospitals, nursing homes, and group recreational uses and stadiums are prohibited from being developed in this zone.

Appendix D: Housing Constraints D-34
Airport Safety Zone 6 – Traffic Pattern Zone
Safety Zone 6 is located essentially everywhere outside of the other five safety zone areas. Normal maneuvers in this area involve aircrafts performing regular traffic patterns and entry routes. Th altitude ranges between 1,000 to 1,500 feet above the runway. For arrivals, the most common accidents involve pattern accidents in proximity of an airport, whereas for departures the most common involves emergency landings. The risk level in this area is only low, however the percentage of near-runway accidents in this zone is a high 18 to 29 percent. Despite the number, this is only due to the large area that the zone encompasses.

Safety Zone 6 has the least restrictions of all the zones. In this area, residential and other uses allowed in previous zones are allowed. For residential, development must be considerate of the noise and flight impacts associated with this zone, particularly where ambient noise levels are low. Children’s schools, large day care centers, hospitals, nursing homes, as well as processing and storage of bulk quantities of highly hazardous materials are limited in Zone 6. Overall, no uses are prohibited in this zone; however, outdoor stadiums and similar uses with very high intensities should be avoided.

Watsonville Pilots Association (WPA)
The WPA contend that until such time that the criteria in the Handbook for Airport Safety Zones 1-6 are incorporated in the City’s General Plan, in a manner that leaves no discretion, they may challenge land use projects. In their view, the City is constrained as a result of the Court of Appeal’s decision in Watsonville Pilots Association v. City of Watsonville, 183 Cal.App.4th 1059 (2010). The WPA has chosen to challenge two recent land use projects, including a mini-storage facility at 70 Nielson Street and 21-unit townhome project at 547 Airport Boulevard. Because the townhome project was held up in court for more than two years, the project entitlements expired. Two of those lawsuits that are related to housing have been summarized below.
2030 General Plan Update Lawsuit
Shortly after the 2002 voter referendum “Measure U” was passed, the City of Watsonville began to develop their VISTA 2030 General Plan in 2003. Broadly supported, the plan was adopted in 2006.

Shortly after the Plan was adopted, the WPA challenged the City over concerns with the proposed density increases for the Buena Vista area, located near the airport. They believed that airport safety issues were not addressed in the General Plan or its EIR. In trial court, it was found that the General Plan was inconsistent with the State Aeronautics Act (SAA). It was also found that the EIR failed to properly analyze aviation and traffic issues, which led to no consideration of a reasonable range of alternatives. The trial court did uphold the EIR analysis of water supply growth anticipated under the new General Plan. Lastly, since the City at the time was considered in a “no procedure” county. Cities in these categorized counties must adopt the safety and density criteria identified in the Handbook.

Appendix D: Housing Constraints D-35
As a result, the 2030 General Plan was considered invalid for violation of statutory requirements of the SAA. The General Plan was subsequently rescinded by the City and engaged with pilots and residents in an attempt to arrive at a new land use plan for the Buena Vista area. 547 Airport Boulevard Lawsuit
In September 2021, the WPA challenged the City of Watsonville on the approval of a proposed 21-unit condo development on 547 Airport Boulevard. This project is located adjacent to the Watsonville Municipal Airport. According to the WPA, they are claiming that the City did not fully follow CEQA guidelines, the SAA, and the court ordered implementation of the Handbook in the City’s General Plan. As such, it is seen as a potential risk for pilots and future residents that would live there.

The legal battle has been ongoing for over two years now. In the meantime, developers neither moved forward on their project nor applied for permit extensions. As consequence, the project entitlement expired in August 2023.

7. Variety of Housing Permitted
Housing Element Law requires jurisdictions to identify sites to be made available through zoning and development standards to facilitate development of a variety of housing types for all socioeconomic levels of the population. Table D-5 and Table D-6 shows the various housing types permitted throughout the City’s zoning districts.

Table D-5: Permitted Housing Types by Residential Zoning District Housing Type Residential Zones
R-1 R-1P RM-2 RM-3 R-MH
Single-Unit Dwellings ARP ARP - AUP X
Single-Family Unit with principal
structure height between 2 and 2 ½
stories

SUP - - - X
Single Family Unit (if lot area allows
for only one) - - AUP AUP X
Single Family unit (if lot area allows
more than one) - - SUP SUP X
Multi-Unit Dwellings - - ARP AUP X
Multi-Family Dwellings (17 or more
on one site) - - - SUP X
Building Conversion to Multi-Family
Dwelling Units - - SUP SUP X
Two-Unit Dwellings ARP ARP AUP AUP X
Duplex - - ARP - X
Duplex (if lot area only allows 2
units) - - - AUP X
Duplex (if the lot area allows more
than two units) - - - SUP X
Accessory Dwelling Unit(s) ARP ARP ARP ARP X
Junior Accessory Dwelling Unit(s) ARP ARP ARP ARP X

Appendix D: Housing Constraints D-36
Table D-5: Permitted Housing Types by Residential Zoning District Housing Type Residential Zones
R-1 R-1P RM-2 RM-3 R-MH
Dormitory - - SUP SUP SUP
Apartment Units (16 or less on one
site) - - ARP ARP X
Apartment Units (17 or more on
one site) - - SUP - X
Townhouses, rowhouses (10 or less
dwelling units on one of more
structures)
- - ARP ARP X
Home Occupation ARP ARP ARP ARP X
Live-Work Units - - - - X
Short-Term Lodging - - - - X
Child Care Homes (6 or fewer
children) ARP - - ARP X
Child Care Homes (7 to 14 children) ARP - ARP ARP X
Foster Home for children (6 or less) AUP - AUP - X
Foster Family Home (6 people or
less) AUP - AUP - X
Group Foster Homes - - - - SUP
Residential Care Facilities – Limited
(6 or fewer persons) ARP ARP ARP ARP X
Residential Care Facilities – General
(7 or more persons) AUP AUP AUP AUP AUP
Mobile Home Rental Parks - - SUP - X
Mobile Home Park or Manufactured
Home Park - - - - ARP
Retirement Home - - - - X
Farmworker Housing - - - - SUP
Transitional Housing - - - - X
Supportive Housing - - - - X
Emergency Shelters - - - - X
Mobile homes - - - - X
Low Barrier Navigation Centers - - - - X
SRO Residential - - - - X
ARP – Administrative Review Permit
AUP – Administrative Use Permit with Design Review
SUP – Special Use Permit with Design Review
X – Prohibited

Appendix D: Housing Constraints D-37
Table D-6: Permitted Housing Types by Non-Residential Zoning District Housing Type
Non-Residential Zones
PF N DC* DN DI1 CT CN CNS CV CO EMA-1
EMA-2
Single-Unit Dwellings - - - P - SUP2SUP4- - - P -
Single-Family Unit with
principal structure
height between 2 and
2 ½ stories
- - - P - - - - - - - -
Single Family Unit (if
lot area allows for only
one)
- - - P - - - - - - - P
Single Family Unit (if
lot area allows more
than one)
- - - P - - - - - - - -
Multi-Unit Dwellings X SUP P* P P SUP3SUP - - - - -
Multi-Family Dwellings
(17 or more on one
site)
- - P* P P - - - - - - -
Building Conversion to
Multi-Family Dwelling
Units
- - P* P P - - - - - - -
Two-Unit Dwellings - - - P - - - - - - - -
Duplex - - - P - - - - - - - -
Duplex (if lot area only
allows 2 units) - - - P - - - - - - - -
Duplex (if the lot area
allows more than two
units)
- - - P - - - - - - - -
Accessory Dwelling
Unit(s) - - - P - ARP ARP - - - - -
Junior Accessory
Dwelling Unit(s) - - - P - - - - - - - -
Dormitory - - SUP* SUP SUP SUP SUP - - - - -
Apartment Units (16 or
less on one site) - - P* P P - SUP - - - - -
Apartment Units (17 or
more on one site) - - P* P P - SUP - - - - -
Townhouses,
Rowhouses (10 or less
dwelling units on one
of more structures)
- - P* P P - SUP - - - - -
Home Occupation - - - - - - - - - - P P
Live-Work Units - - SUP* SUP SUP - - - - - P -
Short-Term Lodging - - - - - - - - - - - -
Child Care Homes (6 or
fewer children) - - P P P - - - - - - -
Child Care Homes (7 to
14 children) - - P* P P - - - - - - -

Appendix D: Housing Constraints D-38
Table D-6: Permitted Housing Types by Non-Residential Zoning District Housing Type
Non-Residential Zones
PF N DC* DN DI1 CT CN CNS CV CO EMA-1
EMA-2
Foster Home for
Children (6 or less) - - P* P P - - - - - P P
Foster Family Home (6
people or less) - - P* P P - - - - - P P
Group Foster Homes X SUP P* P P - - - - - - -
Residential Care
Facilities – Limited (6
or fewer persons)
- - - - - - - - - - - -
Residential Care
Facilities – General (7
or more persons)
- - - - - AUP AUP - - - - -
Mobile Home Rental
Parks - - - - - - - - - - - -
Mobile Home Park or
Manufactured Home
Park
- - - - - - - - - - - -
Retirement Home - - P* P P - - - - - - -
Farmworker Housing - - P* P P - - - - - - SUP
Transitional Housing AUP X - - - - - - - - - -
Supportive Housing - - - - - - - - - - - -
Emergency Shelters P P - - - - - - - - - -
Mobile Homes - - - - - - - - - - - -
Low Barrier Navigation
Centers - -
- - -
- - - - - - -
SRO Residential5- - P* P SUP - - - - - - -
P – Principally Permitted (may require a Building Permit) ARP – Administrative Review Permit
AUP – Administrative Use Permit with Design Review
SUP – Special Use Permit with Design Review
X – Prohibited
* Dwelling units are principally permitted only on upper floors in the Main Street and Gateway Overlay Zones of the DC zoning district. Elsewhere, ground floor residential is principally permitted. ***Not constructed in conjunction with another use.
1 Residential uses allowed with approval of a SUP.
2 In conjunction with the following: GLU: 50, 52, 53, 54, 58, 59, 60, 61, 62, 64, 65, 66, 67, 68, 77, and 79. 3 Not constructed in conjunction with another use.
4 In conjunction with permitted uses.
5See Chapter 14.48 of Watsonville Municipal Code

Appendix D: Housing Constraints
D-39
Single-Family Dwelling
Single-family dwellings refer to one detached dwelling per legal lot of record designed with a kitchen, bedroom(s), used exclusively for residential purposes by one housekeeping unit. This housing type is principally permitted in the R-1, R-1P, DN, and EM-A-1 zones and requires an Administrative Use Permit in RM-3 zone.

Multi-Family Dwelling
A multi-family means any building, with three or more individual dwellings with separate cooking, sleeping, and bathroom facilities for each dwelling. The term includes flats and apartments. This housing type is principally permitted in the RM-2 zone, DC, DN, and DI zones. Multi-Family uses requires an Administrative Use Permit in the RM-3 zone. Multi-family dwellings in N zones require a Special Use Permit.

Townhouse Dwelling
A Townhouse dwelling means a single dwelling unit in a townhouse group, located or capable of being located on a separate lot, and being separated from the adjoining dwelling unit by an approved wall extending from the foundation through the roof and structurally independent of the corresponding wall of the adjoining unit. Townhouse dwellings are permitted principally in the DC, DN, DI, RM-2, and RM-3 zones.

Accessory Dwelling Unit (ADU)
An accessory dwelling unit (ADU) means an attached or a detached accessory residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence/residences. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family dwelling or multifamily dwelling is or will be situated. In any residential zones, ADUs are restricted to:
• Lots less than 5,999 square feet: One 850 square-foot ADU (maximum one bedroom); • Lots less than 9,999 square feet: One 1,000 square-foot ADU (maximum 2 bedrooms); • Lots greater than 10,000 square feet: One 1,200 square-foot ADU (maximum 3 bedrooms); • Lots greater than 12,000 square feet: One 1,2000 square-foot ADU (maximum 3 bedrooms); or • Two ADUs measuring a maximum of 750 square-foot and 2 bedrooms.

The ADU Ordinance was repealed and replaced in November 2020 to comply with updates to State law.

However, new State Laws prohibit the limitation on the number of bedrooms allowed in an ADU and is considered a constraint. A program has been added in the Policy Plan to address this issue. In the interim, the City implements provisions of the most recent ADU as law established in Government Code Sections 65852.2 through 65852.22.

Junior Accessory Dwelling Unit (JADU)
A junior accessory dwelling unit (JADU) means a unit that is no more than 500 square feet in size and contained within an existing or proposed single-family dwelling. A JADU must include an efficiency kitchen and may include separate sanitation facilities or may share sanitation facilities with the existing singlefamily dwelling. A JADU must also have its own exterior access for ingress/egress separate from the

Appendix D: Housing Constraints
D-40
existing or proposed single-family dwelling. JADU’s are allowed in any residential zone in Watsonville; specifically, one per lot is permitted in the R-1 and R-1P zones, and one ADU and one JADU are permitted in the RM-2 and RM-3 zones if a single-family dwelling exists on the lot at the time of the application.

Child Care Homes (Large Family)
Childcare homes (large family) mean a home which provides family day care to seven to twelve children, including children who reside at the home. This housing type is principally permitted in the DC, DN, DI, R1, RM-2, and RM-3 zones. California Health and Safety Code § 1597.45 requires that large family day care homes be considered a residential use and allowed by right in residentially zoned areas. Program B.5 under Policy 2.7 is included in the Housing Element to allow large family childcare homes by-right in RMH zone.

Child Care Homes (Small Family)
Childcare homes (small family) mean a home which provides family day care to six or fewer children, including children who reside at the home. This housing type is permitted principally in the DC, DN, DI, R1, and RM-3 zones.

Foster Family Home
Foster Family Home means a boarding home for not more than six aged ambulatory guests as licensed by the Department of Social Welfare of the County. This housing type is principally permitted in the DC, DN, DI, EM-A-1, and EM-A-2 zones. Additionally, foster family homes are also permitted in R-1 and RM-2 through an Administrative Use Permit.

Foster Home for Children
Foster Home for Children means a private family home for foster children in which is provided full-time care for not more than six children, including children of the proprietary family, and in which such foster children are resident on a more or less permanent basis and participate in a normal family relationship with the proprietary family. This housing type is principally permitted in the DC, DN, DI, EM-A-1, and EMA-2 zones. Additionally, foster homes for children are also permitted in R-1 and RM-2 through and Administrative Use Permit.

Retirement Home
A retirement home (defined in the City’s Municipal Code as “Boarding Home for the Aged”) means a private residence providing board and room as well as twenty-four hour protective and personal care and services to ambulatory aged guests, as defined in this chapter, assuming for them responsibilities which go beyond those customarily associated with a landlord-tenant relationship and where bedside care is provided only for conditions determined by a physician to be temporary and minor. Such establishments do not provide individual cooking and eating facilities for the guests.

Mobile Home
A mobile home means a vehicle constructed in such a manner as to permit occupancy thereof as a dwelling unit and so designed that it is or may be mounted on wheels for conveyance over streets and highways.

Appendix D: Housing Constraints
D-41
Mobile homes are considered dwelling units for the purpose of this title only when they are located in mobile home parks. This housing type is principally permitted in the R-MH zone.

Duplex
A duplex means a building designed as a single structure, containing two separate living units, each of which is designed to be occupied as a separate permanent residence for one housekeeping unit. Duplexes are principally permitted in DN, R-1 and R-1P zone, as well as the RM-2 and RM-3 zones through an Administrative Use Permit.

Dormitory
Dormitory refers to a residential facility with three or more sleeping accommodations for individuals or groups, with or without meals, by the week or by the month, for rent paid in money, foods, labor, or otherwise, and providing communal kitchen and dining facilities. Dormitories may allow individuals rooms to be occupied by no more than 2 paying guests per room. A dormitory is principally permitted in the DC, DN, DI, RM-2, and RM-3 zones, as well as in R-MH, and CT zones through a Special Use Permit.

Residential Care Facility
A residential care facility mean any family home, group care facility, or similar facility determined by the State Department of Social Services, that is maintained and operated to provide nonmedical residential care services for children, adults, or children and adults, including, but not limited to, the physically handicapped, mentally impaired, incompetent persons, and abused or neglected children, and provides twenty-four-hour nonmedical care of persons in need of personal services, supervision, or assistance essential for sustaining the activities of daily living or for the protection of the individual. Residential care facilities housing six people or less are principally permitted in the DC, DN, DI, R-1, R-1P, R-M2, and R-M3 zones, and ones with seven people or more in the DC, DN, and DI zone. This use is also allowed in the R1, R-M2, and R-M3 zones through a Special Use Permit. Program D.9 is included in the Policy Plan, allowing residential care facilities of 7 or more people to be principally permitted in all residential zones.

Supportive Housing
Supportive housing mean housing with no limit on length of stay, that is occupied by the target population
1 , and that is linked to on-site or off-site services that assist the supportive housing resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community. The City currently does not have zoning requirements for supportive housing. Program C.9 is included in the Policy Plan to address this. 1 Adults with low income having one or more disabilities including mental illness, HIV or AIDS, substance abuse, or other chronic health conditions, or individuals eligible for services provided under the Lanterman Development Disabilities Services Act (Division 4.5, commencing with Section 4500 of the Welfare and Institutions Code) and may, among other populations, include families with children, elderly persons, young adults aging out of the foster care system, individuals exiting from institutional settings, veterans, or homeless people.

Appendix D: Housing Constraints
D-42
Transitional Housing
Transitional housing and transitional housing development(s) mean temporary housing provided to individuals or families recovering from the effects of economic dislocation or emotional/mental problems and/or substance abuse. Housing involving on-site therapy and supervision in the manner of a halfway house is subject to the same regulations as a group care home. Transitional housing and transitional housing development also means buildings configured as rental housing developments, but operated under program requirements that call 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. Transitional Housing developments are required by State law to be allowed by-right in all residential zoning districts, and Program C.8 removes this constraint.

Single Room Occupancy (SRO) Unit
Single Room Occupancy (SRO) unit mean a single room separately rented or leased within a residential hotel building containing six or more rooms. SROs are regulated by Chapter 14.48 of the Municipal Code, which describes the permitting process, development and design standards, minimum age, management, and parking requirements for SRO development. SRO units are permitted only in the DC, DN, and DI zones through a Special Use Permit.

Emergency Shelter
Emergency shelter refers to housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less by a person experiencing homelessness. The City’s Zoning Code states that an emergency shelter must meet the standards set forth in Chapter 14 Section 43 “Emergency Shelters” and is intended to allow for the development of emergency shelter facilities in conjunction with specified uses and in particular zoning districts, subject to development and operational standards that minimize potential adverse impacts on nearby properties and the community as a whole. All new construction must comply with the Public Facilities and Institutional land use regulations under Chapter 14-43.020 Development Standards for Emergency Shelters in the City’s Zoning Code. An amendment to the Public Facilities and Institutional Districts (PF and N) during the 5th Cycle established emergency shelters as a permitted use within PF and N zones.

AB 139 states that jurisdictions may impose certain objective standards for emergency shelters, such as sufficient parking to accommodate all staff working in the emergency shelter, provided that the standards do not require more parking than other residential or commercial uses within the same zone. The City’s Zoning Code states that shelter facilities within one-quarter mile of an existing bus route or rail station must provide one space per employee (based on highest ratio of staffing on site) and one-eighth (1/8) space per adult client. Additionally, AB 2339 requires emergency shelters be allowed principally in all residential districts, which has been addressed in Program C.8.

Figure D-8a shows the location of parcels zones PF and N where emergency shelters are permitted. These parcels are located throughout the entirety of the City, and they are not consolidated to one area – thus, allowing opportunity for future shelters in proximity to a variety of uses and community resources. In addition, Figure D-8b shows the location of 11 hazardous waste generators in the City. These generators are located near some of the parcels where emergency shelters would be permitted. Some of the uses include light industrial, research labs, medical offices, and grocery stores. These uses are ones that do not create an environment unfit for human habitation. In fact, there are existing residential neighborhoods currently located within proximity to these generators.

Appendix D: Housing Constraints
D-43
• Area 1: Sutter Bay Medical Office, Walgreens, Rite Aid, Planned Parenthood, Palo Alto Medical Foundation, Sutter Bay Medial Foundation
• Area 2: Continental Sales Company, CVS Pharmacy, Kaiser Permanente Medical Office • Area 3: CVS Pharmacy, City of Watsonville Solid Waste Division Figure D-8a: Principally Permitted Emergency Shelters Zoning

Appendix D: Housing Constraints
D-44
Figure D-8b: Hazardous Waste Generators
Source: CalEnviroScreen 4.0 (Accessed June 13, 2023)
Additionally, the City has a bus network which connects the two zoning districts that permit emergency shelters. Thus, persons seeking to reach those emergency shelters can find transit options without much difficulty. The bus fare within Santa Cruz County for one ride is $2 for adults and free for K-12 students.

Santa Cruz METRO also implements a Free Fare Program for COVID-19 vaccine appointments and for legally blind riders. In 2019, Santa Cruz METRO implemented the Free Fare Program for legally blind riders to resolve concerns raised by visually impaired riders who had difficulty using the ticket vending machines.

Seniors 62 or older and persons with disabilities are also eligible for discounted fares and passes. These programs may benefit persons seeking to access emergency shelters or areas within the County from the shelters. The local lines in Watsonville include:
• Watsonville Circulator (WC Line)
• Green Valley – Watsonville Hospital (72
Line)
• Green Valley – Corralitos (72W Line)
• PVHS/Watsonville Hospital (74S Line)
• Green Valley – Wheelock (75 Line)
• East Lake/Crestview (79 Line)
1 2
3

Appendix D: Housing Constraints
D-45
Figure D-9: Santa Cruz METRO System Map
Source: Santa Cruz METRO Spring 2023 Real-Time Bus System Map Along with the existing local lines, Santa Cruz METRO has two concurrent projects happening that will improve transit in Santa Cruz County by improving or enhancing the existing lines:
• Reimagine Metro – METRO has begun to re-envision where their existing bus lines should go, along with the frequency in which the buses should run. METROs intention with this project is to:
o Increase the amount of service provided in the METRO service area; o Make transit more relevant to the community’s needs;
o Adaptation of patterns and trends shown post-COVID; and o Create a network that is useful and attractive for many people’s trips. • Line 71/Rapid Corridors – METRO is collaborating with the community to find solutions aimed at making travel by bus faster, more reliable, and easier to access between the cities of Watsonville and Santa Cruz. The study, funded through a Caltrans Sustainable Transportation Planning Grant, will identify opportunities to improve METRO’s customer experience through improved travel times, better pedestrian and bicyclist access to bus stops, and upgraded bus stop amenities.

Agricultural and Employee Housing
California Health and Safety Code Sections 17021.5 and 17021.6 require agricultural housing to be permitted by-right, without a conditional use permit (CUP), in single-family zones for six or fewer persons and in agricultural zones with no more than 12 units or 36 beds. The City currently requires a Special Use permit for agricultural and employee farm worker housing in the R-MH and EM-A-2 zones. Program E.6

Appendix D: Housing Constraints
D-46
has been included in the Policy Plan to update the Zoning Code for agricultural and employee housing in compliance with State law.

Low-Barrier Navigation Centers
Low-Barrier Navigation Centers are defined as a housing first, low-barrier, service-enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. Low-Barrier Navigation Centers are required as a use by-right in areas zoned for mixed uses and nonresidential zones permitting multifamily uses if the center meets specified requirements. The Watsonville Zoning Code does not define Low-Barrier Navigation Centers. Currently, the City has no requirements addressing Low-Barrier Navigation Centers; however, Program C.10 has been included in the Housing Plan to adopt and implement procedures and regulations to process LowBarrier Navigation Centers.

8. Residential Development Standards
The City’s Zoning Code establishes regulations and development standards for each residential district to provide a range of housing types. All information regarding the City’s zoning and development standards are available to the public on the City’s website pursuant to Government Code §65940.1 (a)(1)(B).

These standards and regulations are intended to create, preserve, and enhance residential neighborhood sites for a range of development types and lifestyles. The residential zoning guidelines and development standards are intended to:
• Provide appropriately located areas for a variety of residential neighborhoods to meet the housing needs of the Watsonville community;
• Provide for a range of housing types and housing alternatives for all economic segments of the community;
• Encourage the provision of attractive and stimulating surroundings that will make Watsonville residential areas enjoyable places to live; and
• Protect residential areas from the intrusion of incompatible uses or activities which may impair the livability of a neighborhood.

The City established development standards to regulate throughout the City through its Zoning Code. The development standards include minimum requirements for lot size and lot widths and maximum construction standards for height, lot coverage, and density. Table D-7 below provides the standards applicable to each zoning districts in Watsonville that permits residential development

Appendix D: Housing Constraints
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Table D-7: Watsonville Development Standards
Zon
e
Min. Lot Dimensions
(Sq. Ft.)
Min. Yard
Setbacks (Feet) Max. Lot
Coverag
e
Max.

GP1
Densit
y
Max. Height
(Feet/Storie
s)
Lot Size Frontage Fron
t
Sid
e
Rea
r
Interio
r
Exterio
r
Interio
r
Exterio
r
R-1 6,000 6,500 50 60 20 5
2 20 50% 7.99
du/ac 28/304
R1P3 4,000 30 35 20 10 5 45% 7.99
du/ac 28/304
RM2
5,000 6,500 50 65 20 5
2 20 50%

13.99 du/ac 28/405
RM3
7,000 60 70 15 5
2 10 55% 36.996
du/ac 28/405
DC 2,500 N/A 50, 757 10 to
157
0 8 159
,
5 10 100% 125.00
du/ac 6 Stories
DN 2,500 N/A 75 10 to
15 5
14 159
,
5 10 100% 85.00
du/ac 4 Stories
DI 2,500 N/A 75 10 to
15 10 10 100% 85.00 du/ac 4 Stories
Notes:

1. Residential development density is defined in the Watsonville 2005 General Plan as units per net acre. Net acre is defined in the General Plan as the portion of a site remaining after public or private rights-of-way and land not developable are subtracted from the total acreage, used for density calculations.

2. Interior lot – both sides: 5 ft. / Exterior lot – street side: 10 ft. / Exterior lot – interior side: 5 ft.

3. Required approval of a Master Plan and tentative maps; standards provided are subject to conditional approval

4. Height limit of 30 feet allowed with Special Use Permit.

5. Height limit of 40 feet allowed with Special Use Permit.

6. Up to 42.99 units/acre are allowed for studio or single room occupancy (SRO) development.

7. Does not include parcels under the Main Street or Gateway Overlay Districts.

8. When on a corner lot and not under the Main Street and Gateway Overlay Districts, side yard setbacks are 5 feet or 10 percent of lot, whichever is less.

9. Rear setback for a lot with an alley, 15 feet from centerline of alley.

10. Rear setback for lot without an alley.

14. Can be 10 percent of lot or 5 feet, whichever is less.

Source: City of Watsonville Municipal Code; Watsonville 2005 General Plan Land Use Element; Downtown Watsonville Specific Plan

Appendix D: Housing Constraints
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Lot Coverage and FAR
Coverage is defined as the percent of the total site area covered by structures. Lot coverage is regulated to avoid nuisances from inappropriate and excessive massing or density in a particular zoning district.

Floor Area Ratio (FAR) is defined as the total floor area of a building on a lot, divided by the total area of the lot. A 0.50 FAR for a 10,000 square foot lot would allow a 5,000 square foot building. The FAR requirements limit the usable floor area to limit the massing of a building in comparison to the land, other buildings, and public facilities in the area. Floor area includes not only the ground floor area but also any additional stories or basement of the building. All horizontal dimensions should be taken from the exterior faces of the walls, including enclosed porches. Floor area does not include the area of inner courts, shaft enclosures, or exterior wall.

Yard Requirements
The Watsonville Municipal Code defines a yard as an open space, other than a court, on the same lot with a building, which open space is unoccupied and unobstructed from the ground to the sky. Front yards are defined as an open space extending the full width of the lot, measured between the building closest to the front lot line and said front lot line. Rear yards are defined as an open space measured between the main building and the rear lot line or the center line of an abutting street or alley. Rear yard, least depth is defined as the shortest horizontal distance between any part of the main building and the rear lot line.

Side yards means an open space extending from the front yard to the rear yard between a building and the adjacent side lot line. Side yard, least width refers to the shortest horizontal distance between any part of a building and the adjacent side lot line. Exterior side yards mean a side yard adjacent to a street, alley, court, or other required open space. Exterior side yard, least width shall mean the shortest horizontal distance between any part of a building and the adjacent street, alley, court, or other required open space, or any official setback line, or any adopted plan line, whichever is applicable.

Maximum Building Heights
Building height refers to the vertical distance from the grade to the highest point of the coping of a flat roof or the deck line of a mansard roof or to the average height of the highest gable of a pitch or hip roof.

Setting limits to the height of buildings avoid bulking and potential nuisances on neighboring properties – relating to privacy and/or sunlight and shade. This requirement also ensures a compatibility and similar aesthetic amongst uses.

Parking Standards
Sufficient off-street parking must be provided to avoid street overcrowding. This is maintained through the establishment of parking requirements, which fluctuate depending on the land use, housing type, and the number of bedrooms. However, high parking requirements may constrain development and result in higher development costs. Construction costs may be even greater for covered parking, parking structures, and below ground parking; however, developers may receive concessions or incentives in the form of parking reduction for the development of housing affordable to low- and very low-income

Appendix D: Housing Constraints
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households through State Density Bonuses. Table D-8 provides the City’s parking requirements as of June 2023.

Parking standards in the Downtown Watsonville Specific Plan Area differ from those imposed throughout the City. Table D-9 provides the current minimum parking requirements as well as the new requirements imposed by the DWSP.

Table D-8: Required Parking Spaces for Residential Uses Residential Uses Minimum Parking Requirements
SingleFamily 1-Bed – 3-Bed 2 parking spaces per unit
4-Bed 3 parking spaces per unit
5-Bed 4 parking spaces per unit
One Duplex
on a Single
Lot
Studio – 3-Bed 2 parking spaces per unit
4-Bed 3 parking spaces per unit
Multi-Family Studio – 3-Bed 2 spaces per unit
4-Bed 3 spaces per unit
5-Bed 4 spaces per unit
Guest Parking
• 1 space per 4 bedrooms in projects with 1-75 units;
• 1 space per 6 bedrooms in projects with 76-125 units; and • 1 space per 8 bedrooms in projects exceeding 125 units.

Farm Labor Housing 60% capacity in persons
Rooming/Boarding/Dorms 1 space per each 2 rooming units Fraternity/Sorority 1 space per each 3 residents, plus 1 space for each manager Group Care Homes/ Halfway
House/ Transitional Housing
1 space per 3 beds, plus 1 space for each employee on the shift with the maximum number of personnel
Vacation Homes 2 on-lot spaces
Mobile Homes
Mobile Home Park Community
Buildings
Mobile Home Park Visitor
Parking
2 spaces per mobile home space
1 space per 10 mobile home spaces
1 space per 5 mobile home spaces located no further than 400 feet from the mobile home spaces to be served
Guest Houses and Cottage
Dwellings 1 space in addition to the single-family dwelling unit requirements Transitional Housing (MultiFamily Units)1 space per dwelling unit, 1 guest space per every 4 bedrooms, 1 space per unit deferred as per Section 9-3.112 of Chapter 9-3 Source: Watsonville Municipal Code Chapter 14-17
Table D-9: DWSP Off-Street Minimum Parking Requirements Multifamily Residential Minimum Requirement
Studio/1-Bedroom Unit 0.8 spaces per unit
2-Bedroom Unit 1.6 spaces per unit
3-Bedroom Unit 2 spaces per unit
4-Bedroom Unit 2 spaces per unit
5-Bedroom Unit 2 spaces per unit
Source: Downtown Watsonville Specific Plan

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Parking requirements of two or more spaces for multifamily units with less than four bedrooms is considered a constraint by HCD to the development of housing – particularly affordable housing. As such, a Program D.8 is included in the Policy Plan to address this issue and ensure parking does not constrain the future development of housing.

On/Off- Site Improvements
The most common off-site improvements required for residential development projects are the installation of curb, gutter, and sidewalk, undergrounding of utilities, and stormwater improvements. A comprehensive list of subdivision improvements and design standards can be found within the Watsonville Municipal Code Sections 12-7.21 through 13-7.33 and the Residential Development Standards. The City’s “Residential Development Standards, Multi-Family Rental Projects (Duplexes, Triplexes, Fourplexes, and Apartments)” establishes a minimum street width requirement of 36 feet from curb to curb. Because residential development cannot take place without the addition of adequate infrastructure, site improvement requirements are considered a regular component of development of housing within the City and may also influence the sale or rental price of housing. The majority of costs associated with on- and off-site improvements is borne by the City and recovered through development impact fees. On- and off-site improvements in the City are consistent with requirements of other cities in the region. On- and off-site improvements do influence the cost of development, but the improvement requirements do not present a constraint to the development of housing in Watsonville.

The City is not aware of any project that was constrained by required on-/off-site improvements in the 5th Housing Element planning cycle. The City continues to work applicants to assist in satisfying the City’s required improvements.

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

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

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

The City has standard improvements required for subdivisions that can be found in the City’s Municipal Code. General Improvements include the following:
• General Requirements. The subdivider shall construct all required improvements both on site and off site according to approved standards. No final map shall be presented to the City Council

Appendix D: Housing Constraints
D-51
or parcel map to the City Engineer for approval until the subdivider either completes the required improvements or executes an improvement agreement with the City and provides all required securities in accordance with this chapter.
• Frontage Improvements. The frontages of every lot shall be improved with street improvements meeting the requirements of the City Public Improvement Standards. Street improvements shall at a minimum include curbs, gutters, sidewalks, street paving, street lighting, street trees, landscaping and traffic control devices.
• Storm Drainage. Stormwater runoff from the subdivision shall be collected and conveyed by an approved storm drain system. The storm drain system shall be designed for ultimate development of the watershed. The storm drain system shall provide for the protection of abutting and off-site properties that would be adversely affected by any increase in runoff attributed to the development; off-site storm drain improvements may be required to satisfy this requirement. The storm drain system shall conform to the requirements of the City stormwater management plan, the City public improvement standards and the City stormwater land development standards.
• Sanitary Sewers. An approved sanitary sewer system shall be planned, designed and constructed for every subdivision. Each unit or lot within the subdivision shall be served by an individual sanitary sewer lateral.
• Water Supply. An approved domestic water system shall be planned designed and constructed for every subdivision. Each unit or lot within the subdivision shall be served by an individual water service.
• Utilities. Each unit or lot within the subdivision shall be served by gas (if required), electric, telephone and cablevision facilities. All utilities within the subdivision and along peripheral streets shall be placed underground except those facilities exempted by the Public Utilities Commission regulations.

Specific design standards for streets can be found on the City’s website under the Public Works department. While they do present an additional cost for development, the requirements are consistent with the region and do not present a constraint to the development of housing in Watsonville.

Building Codes and Code Compliance
The California Building Code was adopted under Ord. 1445-22(CM), effective November 24, 2022. The building code has been amended eight (8) times since 1963 and includes ancillary information within the tables, attachments, addendums, and footnotes. The adoption of the of the California Building Code ensures consistent development standards promoted throughout the State. The Code’s intent is to safeguard the public health, safety, and general welfare through structural strength, means of egress facilities, stability, sanitation, adequate light and ventilation, energy conservation, and safety to life and property from fire and other hazards attributed to the built environment and to provide safety to firefighters and emergency responders during emergency operations. The City is complaint based when enforcing the adopted building code, with a system set up to receive code violation complaints from residents. When those complaints are received, the City’s Code Enforcement Division takes action in investigating and resolving the identified issues. In 2023, the City’s Code Enforcement Division opened 360 cases and closed 345; 15 cases from 2023 remain open or unresolved. The City’s Code Enforcement

Appendix D: Housing Constraints
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Division opened cases related to: substandard housing, illegally converted garages, occupied trailers and other recreational vehicles, accumulation of garbage, rubbish, automotive parts and junk, accrual of dry or dead vegetation, inoperable vehicles, and inappropriate storage of boats, trailers and recreational vehicles. Of the total 360 Code Enforcement cases opened in 2023, approximately 11 of the cases were related to poor or substandard housing conditions. Using the AFFH 2.0 Data Viewer and code enforcement case data from 2018-2023, the City estimates that approximately three to five percent of all code enforcement cases are related to substandard housing conditions. According to code enforcement data from 2018-2023, there may be approximately 13-24 units in need of substantial rehabilitation, but the City is not aware of any units in need of replacement. By extrapolating enforcement case data from 2018- 2023, the City estimates that approximately three percent of the City’s housing stock, up to 460 units, may be in need of minor rehabilitation including, but not limited to, minor roofing repair, heating and air conditioning repair, minor window repair, and handicap access. Policy Program A.2 is added in the Housing Plan to make the most effective use of rehabilitation loan funds by prioritizing their use to meet the greatest need.

The AFFH 2.0 Data Viewer uses self-reported Census data to provide a spatial analysis of units in the City that may lack complete plumbing or kitchens. The greatest incidence of units lacking complete plumbing or kitchens is within areas of the City with SROs. The City believes that Census respondents living in SROs may accurately report a lack of kitchen which would be represented as such in the AFFH 2.0 Data Viewer but would not necessarily indicate that substandard units exist. The City’s code enforcement cases identify illegal or unpermitted ADUs as the source of most substandard housing conditions in Watsonville.

There is no distinct pattern or known concentrations of areas of the City in need of more rehabilitation based on local data and knowledge. Though there is no distinct pattern or known concentrations of areas of the City in need of more rehabilitation, the City’s historic core and around the DWSP are the oldest areas of the City and may have housing units that have a higher rehabilitation need due their age.

Minimum/Maximum Density
The Municipal Code establishes a number of zoning districts with minimum and maximum density limits so as to regulate and restrict the bulk of structures and density of population. Table D-7 provides the minimum densities required per zoning district.

In the 5th Housing Element planning cycle, the City received proposals for residential projects with densities at the maximum permitted as well as proposals to exceed maximum allowable densities. In response, the City adopted the Downtown Watsonville Specific Plan to increase densities in an area that received many requests to develop at densities greater than previously allowed. The City does not receive requests to develop housing at densities below those identified in the sites inventory, in their respective zones.

9. Local Processing and Permit Procedures
The development community often cites the permitting process as a contributor to the high cost of developing housing. The time between submission of an application to completion of the project may vary considerably depending on the magnitude and complexity of the proposed project. Factors that may

Appendix D: Housing Constraints
D-53
affect the length of the development review on a proposed project include the completeness of the application and the responsiveness of the applicant to Staff comments and requests for more information.

Approval times substantially increase for projects that are not exempt from CEQA, require a rezoning or General Plan amendment, or encounter community opposition.

Best practices recommend applicants seek a consultation meeting with Staff prior to submitting an application to ensure all the required information is included and to receive recommendations. Once a Zoning or Land Division Permit application is submitted, the Zoning Administrator has up to 30 days to determine whether the application is complete along with compliance with CEQA; if it is not complete, the applicant will receive a written notice specifying the application’s deficiencies. All development applications must conform with the City’s adopted architectural guidelines and development and public improvement standards.

A Development Permit is required for all proposed projects – no development may be undertaken unless a Development Permit is issued in accordance with the provisions established in Chapter 14-10 of the Municipal Code. Table D-10 provides several additional applications which may be required, as established by the City’s Municipal Code, and includes the average review time. The City complies with the Permit Streamlining Act, ensuring the timely processing of development permits.

The amount of time between a project’s approval and submittal of an application for building permits varies depending upon a variety of factors and is controlled by a project applicant. While the City makes an effort to streamline permitting processes, an applicant’s individual circumstances dictate the amount of time it takes for an applicant to submit an application for building permits. These factors may include:
• Funding and Financing
• Seasonal factors
• Size of project
• Type of Construction
• Lease, Contractual considerations
• Engineering
• Design and Architectural considerations
Typical timelines range from a few days to a few weeks. If a project is small and uncomplicated, such as additions or ADUs, timelines may average a few days to a few weeks. For larger-scale, highly specialized construction, timelines between entitlements and building permits can range from a few months to over one year for more complex projects.

Overall, the average time between entitlements and building permit submittal ranges from one to twelve months. The City views the longer time periods as typical for larger, more complex projects. The City does not see these average timelines as a hinderance to the construction of housing. An outlier which requested multiple approval extensions and took four years to submit for building permits was removed from the average. In most cases, the timeline from receiving approval to submitting for building permits

Appendix D: Housing Constraints
D-54
is solely dictated by the project applicant and not constrained by any requirements placed upon the applicant by the City.

Table D-10: Residential Permitting Processing Times by Process Type Permit Process Level of Review Process Description
Average
Review
Time
Pre-Application
Process Staff
Provide an applicant with any applicable policies and
procedures identified in City codes and improvement
standards, to identify significant development
opportunities or constraints and provide written feedback to allow an applicant to understand the feasibility of a project.
30-60
days
Administrative
Review
Zoning
Administrator
The purpose of the Administrative Review Permit is to
assure, prior to establishment of an otherwise principally permitted use within an existing facility or new
construction not requiring Design Review, that the
provisions of this Code including zoning, parking, signage, and other applicable State and local regulations are met. 1-7 days
Design Review Zoning
Administrator
Development subject to Design Review include all new
construction, exterior remodeling, additions, or changes in use requiring additional parking, which involves structures used for multi-family residential, commercial, industrial or public purpose and are identified as permitted subject to Design Review in the specific zoning districts. No Building Permit may be issued for a development subject to Design Review until a Design Review has been approved and
conditions of approval have been met.
60-180
Days
Conditional/Special
Use
Zoning
Administrator
recommendation
to the Planning
Commission
The purpose of the Conditional Use Permit is to ensure the proper integration of uses which, because of their special nature, may be suitable only in certain locations or zoning districts or only provided that such uses are arranged or designed in a particular manner.
60-120
days
Variance
Zoning
Administrator
and/or Planning
Commission
Applications for Variances in building setbacks, open space requirements, and off-street parking requirements where the application requests a Variance to the requirements of the base zoning district which is twenty percent (20%) or less of the required building setback requirements, or ten percent (10%) or less of off-street parking or open space requirements are Minor Variances and may be approved
administratively by the Zoning Administrator. All other applications for Variances, including those related to Sign Permits, are Major Variances and must be approved by the Planning Commission. Any variance decisions made by a
City official may be appealed to the City Council per WMC 14-10.1106.
60-180
days
General Plan
Amendment
Planning
Commission
recommendation
to the City
Council
The text of the adopted General Plan may be amended from time to time. Amendments to the General Plan text may be initiated by the Zoning Administrator, Planning
Commission, City Council or by application of a resident, property owner or owner of a business located in the City. 60-180
days

Appendix D: Housing Constraints
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Table D-10: Residential Permitting Processing Times by Process Type Permit Process Level of Review Process Description
Average
Review
Time
An application for amendment shall be submitted to the
Community Development Department on a form provided
by the Community Development Department with
applicable fees as established by Council resolution.

Zoning Code
Amendment
Planning
Commission
recommendation
to the City
Council
The provisions of the Zoning Code and the Zoning Map may be amended by the Council by ordinance and according to procedures established in the Zoning Code whenever the
public necessity, the general community welfare, and good zoning practices permit such amendment. The manner in
which the Zoning Code may be amended is identical to that of the General Plan as described in Section 14-12 of the Watsonville Municipal Code.
60-180
days
Specific Plan
Planning
Commission
recommendation
to the City
Council
A Specific Plan is required for any areas shown on the
General Plan Land Use Diagram as “Specific Plan”. A Specific Plan may be used in conjunction with either subdivision maps or a planned development.
1-3
years
Source: City of Watsonville Municipal Code Chapter 14-12 Approval Findings
The City’s Municipal Code establishes findings which must be made to approve Administrative and Special Uses for proposed projects. The Zoning Administrator, or Planning Commission upon referral by the Zoning Administrator, base their decision(s) upon the following findings2:
• The proposed use at the specified location is consistent with the policies of the General Plan and the General Purpose and intent of the applicable district regulations; • The proposed use is compatible with and preserves the character and integrity of adjacent development and neighborhoods and includes improvements or modifications either on-site or within the public rights-of-way to mitigate development related adverse impacts such as traffic, noise, odors, visual nuisances, or other similar adverse effects to adjacent development and neighborhoods. These improvements or modifications may include, but shall not be limited to, the placement or orientation of buildings and entryways, parking areas, buffer yards, and addition of landscaping, walls, or both, to mitigate such impacts; • The proposed use will not generate pedestrian or vehicular traffic which will be hazardous or conflict with the existing and anticipated traffic in the neighborhood; • The proposed use incorporates roadway improvements, traffic control devices or mechanisms, or access restrictions to control traffic flow or divert traffic as needed to reduce or eliminate development impacts on surrounding neighborhood streets; • The proposed use incorporates features to minimize adverse effects, including visual impacts and noise, of the proposed special use on adjacent properties;

Appendix D: Housing Constraints
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• The proposed special use complies with all additional standards imposed on it by the specific provisions of this chapter and all other requirements of this title applicable to the proposed special use and uses within the applicable base zoning district; and • The proposed special use will not be materially detrimental to the public health, safety, convenience and welfare, and will not result in material damage or prejudice to other property in the vicinity.

When considering a Design Review application, the Zoning Administrator evaluates the impacts of the Design Review on its compatibility with surrounding properties and neighborhoods to ensure the appropriateness for the development and make the following findings2:
• The proposed development is consistent with the goals and policies embodied in the adopted General Plan and the general purpose and intent of the applicable district regulations; • The proposed development is compatible with and preserves the character and integrity of adjacent development and neighborhoods and includes improvements or modifications either on-site or with-in the public rights-of-way to mitigate development related adverse impacts such as traffic, noise, odors, visual nuisances, or other similar adverse effects to adjacent development and neighborhoods. These improvements or modifications may include but shall not be limited to the placement or orientation of buildings and entryways, parking areas, buffer yards, and the addition of landscaping, walls, or both;
• The proposed development will not generate pedestrian or vehicular traffic which will be hazardous or conflict with the existing and anticipated traffic in the neighborhood; • The proposed development incorporates roadway improvements, traffic control devices or mechanisms, or access restrictions to control traffic flow or divert traffic as needed to reduce or eliminate development impacts on surrounding neighborhood streets; • The proposed development incorporates features to minimize adverse effects including visual impacts of the proposed development on adjacent properties:
o Harmony and proportion of the overall design and the appropriate use of materials; o The suitability of the architectural style for the project; provided, however, it is not the intent of this section to establish any particular architectural style; o The sitting of the structure on the property, as compared to the sitting of other structures in the immediate neighborhood;
o The size, location, design, color, number, and lighting; and o The bulk, height, and color of the project structure as compared to the bulk, height, and color of other structures in the immediate neighborhood; • The proposed development complies with all additional standards imposed on it by the particular provisions of this chapter, any City of Watsonville architectural guidelines, development and public improvement standards, and all other requirements of this title applicable to the proposed development; and
2 Chapter 14-12.403 Zoning Permits Findings

Appendix D: Housing Constraints
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• The proposed development will not be materially detrimental to the public health, safety, convenience and welfare or result in material damage or prejudice to other property in the vicinity.

Objective development standards regarding housing development do not involve personal or subjective judgment by a public official and can be universally applied as a uniform benchmark or criteria by both the applicant and City staff. The existing approval findings may be interpreted as subjective, specifically the approval finding that requires the proposed use will be “compatible with and preserves the character.” The subjective finding may reduce approval certainty and an applicant may interpret the finding differently from the City. The City’s approval findings may impact timing, cost, and approval certainty for residential projects, but the City does not believe its current findings exacerbate development costs or timing. Program D.3 is included in the housing element to update the approval findings language and develop objective standards to apply to future housing developments throughout the City per Gov’t Code § 65589.5(f). However, the DWSP includes objective design standards that can be applied in the downtown area today.

Through its development processes and procedures, the City complies with statutory requirements for the Permit Streamlining Act, Government Code Section 65913.4. The City processes all development applications within the statutory processing and timing requirements of the Permit Streamlining Act.

Senate Bill 35 (SB 35), codified as Government Code Section 65913.4, was signed on September 29, 2017, became effective January 1, 2018, and will end on January 1, 2026. The intent of the Bill is to expedite the facilitate constructure of affordable housing. SB 35 applies to jurisdictions that have not made sufficient progress towards meeting their affordable housing goals as mandated by the State. In an effort to meet the affordable housing goals, SB 35 requires jurisdictions to streamline the review and approval of certain qualifying affordable housing projects through a ministerial process.

In California, developments projects are required to undergo a California Environmental Quality Act (CEQA) analysis, independent of the City’s development review process. The City complies with all CEQA timing requirements, including streamlining determinations.

Housing Program C.11 is included in the Policy Plan to adopt review processes that meet the requirements established in Government Code Section 65913.4.

10. Development Fees
Residential developers are subject to a variety of fees and exactions to process permits and provide necessary services and facilities as allowed by State Law. The additional cost to develop, maintain, and improve housing due to development fees result in increased housing unit cost, and therefore is generally considered a constraint to housing development. However, fees are necessary to provide planning and public services in Watsonville. All information regarding the City’s development fees is available to the public on the City of Watsonville website as pursuant to Government Code §65940.1 (a)(1)(B).

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The location of projects and housing type result in varying degrees of development fees. The presumed total cost of development is also contingent on the project meeting City policies and regulations and the circumstances involved in a particular development project application. The following tables, Table D-11 to Table D-14 provide fees associated with the Planning Department and residential development projects.

Table D-11: Planning Application Fees
Fee Type Cost
Zone Map Amendment $14,764.00
Zone/Municipal Code Rev Zoning Text Amendment $17,036.00 General Plan Map Amendment $14,764.00
General Plan Text Amendment $24,985.00
Specific Plan $62,463.00
Area Plan $62,463.00
Local Plan Amendment $14,764.00
Pre-Application $1,363.00
Planned Development $45,428.00
Admin Use Permit $1,713.00
Special Use Permit Existing Structure $4,246.00
Special Use Permit New Construction $6,267.00
Major Variance $6,815.00
Minor Variance $1,023.00
Zone Clearance/ Administrative Review $184.00
Home Occupation Permit $184.00
Fence Permit Administrative Review Permit $184.00
Fence Permit Administrative Use Permit $682.00
Historical Preserve Design $3,417.00
Entitlement Appeals $1,195.00
Environmental Assessment Application $625.00
Prepare Initial Study/Negative Declaration $7,382.00 + staff time + cost ($15,000
minimum deposit)
Signs: Temporary $184.00
Environmental Impact Rept. Admin Process $10,941 + staff time + cost ($15,000
minimum deposit)
Annexation fees exclusive of State Board of Equalization fees – developed property $51,106.00 Annexation fees exclusive of State Board of Equalization fees – undeveloped property $56,784.00 Development Agreement Process $17,036.00
Planning Plan Check $398.00
Subdivision Major Tentative Improvements – 1
st 10 lots $24,985.00
Subdivision Major Tentative Improvements – per lot thereafter $966.00 Vested Tentative Map – 1
st 10 lots 24,985.00 per lot
Vested Tentative Map – per lot thereafter $966.00
Minor-Subdivision Parcel Map $9,654.00 per lot
Boundary Line Adjust $3,975.00
Parcel Merger $3,975.00
Certificate Compliance Parcel $2,581.00
Project Time Extension/Administrative $2,045.00

Appendix D: Housing Constraints
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Table D-11: Planning Application Fees
Fee Type Cost
Permit Modification Minor $2,045.00
Permit Modification Major $3,975.00
Coastal Development Permit $22,714.00
Public Hearing Fee $242.00
Design Review Permit $3,975.00
Appeal fee to Council $1,954.00
EIR Mitigation Monitoring $5,679.00
Specific Plan Amendment $13,629.00
Findings of Public Convenience and Necessity $1,136.00
Sign permit $367.00
Attorney Fees Actual Cost
Permanent record retention fee $13.00
Label Fee Adjacent Owner $80.00
Source: City of Watsonville – 2023-24 Fee Schedule
Table D-12: Common Development and Impact Fees
Fee Type Cost
City-Wide Traffic Impact Fee
Residential Development $228.00 per trip
Non-Residential Development $173.00 per trip
Non-Residential Remodeling/Addition $117.00 per trip
Sanitary Sewer Connection Fee
Residential and all others $2,210.41/unit
Based on peak month discharge of flow $6.15 per gpd lb/day BOD (Biochemical Oxygen Demand) $390.87 lb/day BOD
SS (Suspended Solids) $493.65 lb/day SS
Water Service
Connection Fee (Residential) $2,856.37 per
connection
Groundwater Impact Fee
Residential $508.31 per bedroom
Storm Drainage Fee
Additions to existing (per acre of new impermeable area $14,741.51 per acre New Development Projects
Low Residential (4.5 units/acre)
Med. Residential (4.5-7.5 units/acre)
High Residential (7.5 units/acre)
$5,933.87 per acre
$7,376.26 per acre
$8,842.53 per acre
Impervious Area Impact Fee
Per square foot of new impervious area $0.50 per Sq. Ft.

Public Facilities Impact Fee
New detached structures or additions over 1,000 Sq. Ft. (Calculated on total square footage)
$0.40 per Sq. Ft.

Fire Impact Fee
Residential new construction $1,136.00 per unit

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Table D-12: Common Development and Impact Fees
Fee Type Cost
Residential addition $0.50 per Sq. Ft.

Affordable Housing Ordinance – In Lieu Fees
Residential
Single Family detached
Accessory Dwelling Unit (14-46.050 exceptions)
Multi-Family (townhomes, co-op, condos all for sale)
$15,491.00 per unit
$0.00 per unit
$7,746.00 per unit
Commercial and Industrial Developments
0 to 1,000 gross square feet of floor area $0.00 per Sq. Ft. 1,001 and more gross square feet $1.70 per Sq. Ft.

Street Improvement In-Lieu Fees
Other Parcels – fee per lineal foot of street frontage or 10% of actual on-site project improvements, whichever is less
$204.00 per Lineal Ft.

Carbon Fund Impact Fee
New residential and nonresidential construction 50% of total building permit fee
Underground Utility In-Lieu Fee
Fee per lineal foot of frontage or 1.25% of actual project improvement, whichever is less $80.00 per lineal ft.

School Fee
Residential $5.02 per Sq. Ft.

Park Land Impact Fees
<600 Sq. Ft. $1,117.00 per unit
600-900 Sq. Ft. $1,951.00 per unit
>900-1,200 Sq. Ft. $2,772.00 per unit
>1,200-2,100 Sq. Ft. $3,502.00 per unit
>2,100 Sq. Ft. $3,876.00 per unit
Park Improvement Impact Fees
<600 Sq. Ft. $1,357.00 per unit
600-900 Sq. Ft. $2,369.00 per unit
>900-1,200 Sq. Ft. $3,366.00 per unit
>1,200-2,100 Sq. Ft. $4,253.00 per unit
>2,100 Sq. Ft. $4,707.00 per unit
Community Centers and Recreation Facilities Impact Fees <600 Sq. Ft. $187.00 per unit
600-900 Sq. Ft. $326.00 per unit
>900-1,200 Sq. Ft. $463.00 per unit
>1,200-2,100 Sq. Ft. $585.00 per unit
> 2,100 Sq. Ft. $648.00 per unit
Source: City of Watsonville 2023-2024 Development Fee Summary Table D-13: Total Parks and Recreation Impact Fees per Unit Dwelling Unit
Size
(Square Feet)
Park Land InLieu Fee1Park Land
Impact Fee
Park
Improvement
Impact Fee
Comm./Rec.

Impact Fee Total2
<600 .0016 $1,117 $1,357 $187 $2,661
600-900 .0028 $1,951 $2,369 $326 $4,646
>900-1,200 .0039 $2,772 $3,366 $463 $6,601
>1,200-2,100 .0050 $3,502 $4,253 $585 $8,340

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Table D-13: Total Parks and Recreation Impact Fees per Unit Dwelling Unit
Size
(Square Feet)
Park Land InLieu Fee1Park Land
Impact Fee
Park
Improvement
Impact Fee
Comm./Rec.

Impact Fee Total2
>2,000 .0055 $3,876 $4,707 $648 $9,231
Notes:

1. Fees are calculated on the fair market value per acre valuation of the project.

2. Total includes the park land impact
Source: City of Watsonville 2023-2024 Development Fee Summary Table D-14: Park Improvement Impact Fees (All Residential Development) Dwelling Unit Size
(Square Feet) Cost per Capita Population per Unit Max Impact Fee per Unit Fee – 40% of Max <600 $2,564.78 1.32 $3,393 $1,357
600-900 $2,564.78 2.31 $5,923 $2,369
>900-1,200 $2,564.78 3.28 $8,415 $3,366
>1,200-2,100 $2,564.78 4.15 $10,633 $4,253
>2,100 $2,564.78 4.59 $11,768 $4,707
Source: City of Watsonville 2023-2024 Development Fee Summary

11. Local Ordinances
An ordinance is a law passed by a municipal government. Local ordinances are enacted to maintain or improve public safety, health, and general welfare. Locally adopted ordinances such as inclusionary ordinances or short-term rental ordinances may directly impact the cost and supply of residential development. Impacts may create governmental constraints to the development of housing and may hinder the City from meeting its share of the regional housing need and the need for housing for persons with disabilities, supportive housing, transitional housing, and emergency shelters.

Affordable Housing Ordinance
Watsonville's Affordable Housing Ordinance requires most new housing developments to include units that are affordable to very low to above moderate-income households. These units may also be referred to as inclusionary or deed-restricted units. The units are restricted to specific income categories, and prospective buyers may purchase or rent units at their projected annual household income based on household size.

The Affordable Housing Ordinance applies to all new residential projects. Proposed developments over seven units are required to incorporate affordability while projects with six or less units may instead pay an in-lieu fee. Table D-15 lists the requirements established in the Ordinance. If two or fewer units are required, one or both units may be produced at the moderate-income level or below for an ownership development or at the low- or very low-income level for a rental development.

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Table D-15: Affordable Housing Ordinance Requirements
Income Level Requirements
For-Sale Project Requirements Rental Project Requirements 7-50 New
Units or Lots
>50 New Units or
Lots
7-50 New Units or
Lots
>50 New Units or
Lots
Housing Choice Voucher (HCV) - - 5% 5%
Very Low (<= 50% AMI) - - 5% 5%
Low (<= 80% AMI) - - 5% 5%
Median (<= 100% AMI) 5% 5% 5% 5%
Moderate (<= 120% AMI) 5% 5% - -
Above Moderate
(<= 150% AMI) 5% 10% - -
Total 15% 20% 20% 20%
Source: City of Watsonville Municipal Code Chapter 14-46 The five percent set aside for Housing Choice Vouchers (HCV; previously referred to as Section 8) units must first be made available to the County of Santa Cruz Housing Authority for a, at minimum, one-month period from the date of marketing for a new unit, or receipt by the owner of a notice of vacancy for an existing unit. The requirement to provide HCV units will depend upon the availability of households holding certificates and vouchers who are seeking housing at the time the unit is available for occupancy.

If the total number of affordable units required in the project (derived by multiplying the required 15 percent or 20 percent by total project units) conflicts with the total number of component affordable units (derived by summing the required component units by income category), then the total number and not the total of the component numbers shall prevail. Also, any excess required affordable units shall be restricted to the lowest required income category. For example, in a for-sale, ownership project of 30 units, with a fifteen 15 percent affordable housing requirement (thus yielding five affordable units), with a component obligation of five percent above moderate income (two units), five percent moderate income (two units) and five percent median income (two units), the total of the component affordable units is six. In this case, the project would be required to provide a total of five not six affordable units, consisting of a mix of two moderate income units, two median income units, and one above moderateincome unit.

Projects within the Downtown Core
Residential development projects and residential lot subdivisions of seven or more units or lots that are, by virtue of their size, subject to the requirements of the Affordable Housing Ordinance but are located within the City’s Downtown Core, may provide the required affordable units at a location outside of the Downtown Core but within the Watsonville City Limits.

Federal, State and Agency Assisted Housing Projects
Affordable housing projects, funded through Federal and State housing programs, or assisted by the Redevelopment Agency pursuant to an Owner Participation Agreement or Disposition and Development Agreement, whose percentage of rent or price restricted units meet or exceed that required by the Affordable Housing Ordinance, satisfy the requirements of the Ordinance.

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Exceptions
The following residential types are not subject to the provisions of the Affordable Housing Ordinance:
• Residential additions(repairs or remodels that do not result in the creation of additional dwelling units);
• Accessory Dwelling Units (ADUs);
• Farm labor housing;
• Shelters;
• Any non-enclosed structure for which a building permit is required; • Congregate care developments that offer nursing and medical services; • Emergency projects or projects exempted by Council for health and safety reasons; • Churches, temples, mosques, and synagogues; and
• City owned buildings.

Additionally, the following projects would also be exempt from the provisions of the Ordinance:
• Project replacing or restoring a structure damaged or destroyed by fire, flood, earthquake, or other disaster occurring within three years prior to the application for the new structure(s); • Lot line adjustments that do not result in the creation of new buildable residential lot(s); • Detached carports, garage structures, or other non-habitable commercial or residential detached structures of less than 1,000 square feet;
• Unenclosed vehicular entry structures for commercial or residential use; • Parking structures (public or private) for commercial or residential use; and • Projects for which an approved tentative map or vesting tentative map exists, or for which a construction permit was issued prior to the effective date of the Affordable Housing Ordinance, and which continue to have unexpired permits.

Density Bonus Ordinance
In accordance with California State Government Code Section 65915, a housing development may increase the number of units above the maximum permitted and/or receive reductions in development standards in exchange for reserving units for very low-, low-, low-income, and/or moderate-income households or for seniors. These units must be restricted to their level of affordable for at least 30 years through a deed-restricted affordable housing covenant. According to the City’s Zoning Code, qualifying housing developments which satisfy at least one of the following categories or land dedication provision listed below will be granted a density bonus:
• At least five percent of the total units of the Residential Development as units affordable to very low-income households;
• At least ten percent of the total units of the Residential Development as units affordable to lowincome households;

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• At least ten percent of the total dwelling units in a common interest development for persons and families of moderate incomes, provided that all units in the development are offered to the public for purchase; or
• A senior citizen housing development.

In accordance with Chapter 14-47.060 “Density Bonus” of the City’s Zoning Code, the following density bonus calculations in Table D-16 through Table D-19 are applied to housing developments that meet the above criteria.

Table D-16: Very Low-Income Density Bonus Calculations
Percentage Very Low-Income Units Percentage Density Bonus 5 20
6 22.5
7 25
8 27.5
9 30
10 32.5
11 35
Source: City of Watsonville Zoning Code
Table D-17: Low-Income Density Bonus Calculations
Percentage Low-Income Units Percentage Density Bonus
10 20
11 21.5
12 23
13 24.5
14 26
15 27.5
17 30.5
18 32
19 33.5
20 35
Source: City of Watsonville Zoning Code
Table D-18: Moderate-Income Density Bonus Calculations
Percentage Moderate-Income Units Percentage Density Bonus 10 5
11 6
12 7
13 8
14 9
15 10
16 11
17 12
18 13
19 14
20 15
21 16
22 17

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D-65
Table D-18: Moderate-Income Density Bonus Calculations
Percentage Moderate-Income Units Percentage Density Bonus 23 18
24 19
25 20
26 21
27 22
28 23
29 24
30 25
31 26
32 27
33 28
34 29
35 30
36 31
37 32
38 33
39 34
40 35
Source: City of Watsonville Zoning Code
Table D-19: Very Low-Income Density Bonus Calculations—Land Donation Percentage Very Low-Income Units Percentage Density Bonus 10 15
11 16
12 17
13 18
14 19
15 20
16 21
17 22
18 23
19 24
20 25
21 26
22 27
23 28
24 29
25 30
26 31
27 32
28 33
29 34
30 35
Source: City of Watsonville Zoning Code
The Government code states that when an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land to a City, County, or City and County in accordance with

Appendix D: Housing Constraints
D-66
these subdivisions, the applicant shall be entitled to a 15 percent increase above the otherwise maximum allowable residential density for the entire development, as shown in Table D-19. This increase may be added to the density bonus listed above but may not exceed 35 percent.

Until 2021, Government Section 65915, otherwise known as the Density Bonus Law, allowed a 35 percent maximum bonus. California State Law AB 2345 states that all jurisdictions in California are required to process projects proposing up to a 50 percent density bonus provided those projects produce the additional below market rate (BMR) units in the “base” portion of the project, unless the locality already allows a bonus above 35 percent. Additionally, 100 percent affordable housing projects may receive up to an 80 percent density bonus. The bill also lowered the BMR thresholds for concessions and incentives for projects with low-income BMRs. As of 2021, Government Code Section 65915 authorizes an applicant to receive two incentives or concessions for projects that include at least 17 percent of the total units for lower-income households, at least 10 percent of total units for very low-income households, or at least 20 percent moderate-income households. It also allows an applicant to receive up to three incentives or concessions for projects that include at least 24 percent of the total units for lower income households, at least 15 percent of the total units for very low-income households, or at least 30 percent for persons or families of moderate-income households. Staff currently reviews and processes development permit applications invoking State Density Bonus Law using Government Code Section 65915 to allow for the 50% and 80% density bonuses. A program has been included in the Policy Plan to update the Ordinance to comply with State law.

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

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

The City does not currently have a reasonable accommodation application or procedures in place. This is considered a constraint for persons with disabilities and is addressed in the Policy Plan. Program D.2 in the Policy Plan addresses this constraint.

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Definition of Family
Under the right of privacy, the California Constitution prohibits a restrictive definition of “Family” which limits the number of unrelated persons and differentiates between related and unrelated individuals living together. The City’s Municipal Code does not currently define the term “Family.” As such, a program is included in the Policy Plan to establish a definition which meets the State’s requirements.

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

1. Dry Utilities
Dry utilities include electric, telephone, television, internet, and gas. Due to some of the existing housing stock having aged infrastructure in older areas, the City must plan to provide necessary resources such as electric and gas in response to the increase of households from 2023-2031, as projected by the RHNA allocation. The various utility providers are responsible for providing these necessary resources to new housing units. The City hassufficient dry utilities to accommodate its share of the RHNA allocation for the 6 th Cycle.

Electrical
Pacific Gas and Electric Company (PG&E) provides electricity and services in Watsonville. Electric infrastructure is located aboveground via utility poles and belowground. PG&E provides energy to customers through a series of methods, including oil and natural gas, renewable energy resources, and alternative diverse supplies. Watsonville also offers residents access to other electric suppliers such as Gexa Energy, Cirro Energy, and Reliant Energy.

Natural Gas
PG&E also provides natural gas services Watsonville residents. Overall, PG&E transports natural gas through about 6,600 miles of transmission and 32,000 miles of gas distribution pipes, and 4.6 million meters. PG&E’s coverage area encompasses Eureka in the North to Bakersfield in the South, and from the Pacific Ocean in the west to the Sierra Nevada Mountains in the east.

2. Water Supply
The City’s Water Division provides water services to residential, commercial, industrial, and institutional customers. The Division ensures delivery of the highest quality of potable water to Watsonville and parts on unincorporated Santa Cruz County. The City’s water system services approximately 66,000 customers and consists of 190 miles of pipelines, 14 wells, 8 reservoirs, and one treatment plant. Improvements to water infrastructure are addressed on a project-by-project basis. The City’s current water supply has the

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D-68
capacity to serve all current and projected water needs through 2045, and therefore is not a constraint to housing production in the 6th Cycle.

Watsonville Water Source
The City does not purchase or import water. Instead, the City primarily relies on its groundwater for 90- 100 percent of its water supply—surface water accounts for the remainder. The City uses fourteen groundwater wells to extract water from the Pajaro Valley Subbasin. Extracted water at each well site meets or exceedsstate and federal drinking water standards. Watsonville’s ground wells have the capacity to provide for current and projected water demands through the planning period of 2045.

Water Demand
Seasonal variability of water demand projected to increase as climate change-induced droughts become more common. Warmer temperature increases evapotranspiration rates across the region. Single-family potable water demand is expected to rise from 3,267 acre-foot per year (AFY) in 2025 to 3,623 AFY in 2045. Multi-family portable water demand is expected to rise from 854 AFY in 2025 to 947 AFY in 2045.

Lastly, agricultural irrigation water demand is expected to increase from 840 AFY in 2025 to 1,046 AFY in 2045. As noted above, Watsonville’s ground wells have the capacity to provide for current and projected water demands through the planning period of 2045.

Wastewater
Watsonville’s Wastewater Treatment Facility (WWTF) collects and treats all of the wastewater (excluding stormwater run-off) from a 21-square-mile service area within the region. The WWTF treats roughly 5 million gallons per day (MGD) of wastewater in dry weather. In 2020, the facility treated 1,795 million gallons (or 5,510 AFY) of wastewater. The WWTF has the capacity to accommodate current and projected wastewater treatment demands through 2045.

3. Fire and Emergency Services
The Watsonville Fire Department (WFD) is charged with protecting the residents and property of the City of Watsonville. In addition, WFD provides mutual and auto aid to the area around Watsonville which increases its service area to an approximately 14 square miles and an estimated population of 60,000.

WFD has two fire stations and has an Operations Division that responds to calls for service, maintains stations, conducts public outreach, and develops hazard pr-incident plans. WPD provides fire prevention services, training, safety, and EMS.

Emergency Medical Services (EMS)
The Watsonville Fire Department is responsible for providing Emergency Medical Services (EMS). The EMS Division also provides in service training for all EMT’s and Paramedic staff, monthly training for paramedics, and notifying fire personnel of reported communicable diseases and how they should protect themselves when responding to a disease.

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D-69

4. Police Services
The Watsonville Police Department (WPD) serves the City’s 52,067 residents over 6.7 square miles. WPD is currently staffed with 68 sworn police officers and 20 professional staff. Overall, WPD saw property crime decrease by 8.2 percent and violent crime decrease by 2 percent from 2020 to 2021. WPD consists of two main divisions and one administrative group: Operations Division, Support Division, and Administrative Services. Each group has its own responsibilities that are integral to the operation and success of WPD:
• Operations Division - responsible for the protecting the lives and property on the frontline, handling over 50,693 police-related activities a year. This division maintains a staff of 47 sworn and non-sworn employees. The Operations Division strives to have at least two bilingual officers on every shift and has an average response time to Priority 1 calls of 4 minutes and 6 seconds. • Support Services Division – Handles investigations and Human resources for the police department such as recruitment, hiring, and Internal Affairs investigations. • Administrative Services Bureau - assists with records, property and evidence, technical support, crime analysis, and fiscal.

WPD aims to impact the community in positive ways through strong relationships and problem-solving on a daily basis. Their overall mission is to commit to public safety through engagement, education, enforcement, and professional development.

APPENDIX E Element Update FAIR HOUSING ANALYSIS

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Appendix E: Fair Housing Analysis E-1
Affirmatively Furthering Fair Housing
Beginning January 1, 2019, AB 686 established new requirements for all California jurisdictions to ensure local laws, programs, and activities affirmatively further fair housing. All Housing Elements due on or after January 1, 2021, must contain an Assessment of Fair Housing (AFH) consistent with the core elements of the analysis required by the Affirmatively Further Fair Housing (AFFH) Final Rule of July 16, 2015.

Fair housing is a condition in which individuals of similar income levels in the same housing market have like ranges of choice available to them regardless of race, color, ancestry, national origin, age, religion, sex, disability, marital status, familial status, source of income, sexual orientation, or any other arbitrary factor. Under State law, affirmatively furthering fair housing means “taking meaningful actions, in addition to combatting discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics.” These characteristics can include but are not limited to race, religion, sex, marital status, ancestry, national origin, color, familiar status, and disability.

A. Assessment of Fair Housing
In this assessment, the California Department of Housing and Community Development’s (HCD) Affirmatively Furthering Fair Housing Data Viewer was used to analyze the fair housing trends in the City of Watsonville. It is important to note that while the Manabe-Ow annexation was not included in the city boundary for this data viewer, the data from that area is consistent with the rest of the City.

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

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

Figure E-1 shows the TCAC/HCD Opportunity Scores for the City and surrounding neighborhoods. The map uses a regional index score to determine categorization of resource levels, as detailed below:
• Highest Resource – Top 20 percent highest-scoring census tracts in the region. Residents have the best outcomes in terms of health, economic attainment, and education attainment. • High Resource – Top 40 percent highest-scoring census tracts in the region. Residents have access to highly positive outcomes in terms of health, economic attainment, and education attainment. • Moderate Resource – Top 30 percent of remaining census tracts in the region. Residents have access to somewhat positive outcomes in terms of health, economic attainment, and educational attainment, or a mix of high and low outcomes in certain areas.

Appendix E: Fair Housing Analysis E-2
• Moderate Resource (Rapidly Changing) – Moderate resource-scoring census tracts that are nearing High Resource status and are experiencing rapid increase in certain areas such as housing prices, median income, proximity, etc.
• Low Resource – Bottom 30 percent of remaining census tracts in the region. Residents may have a lack of access to positive environmental, economic, and educational opportunities that results in negative or perpetuated outcomes.

As illustrated, the City is entirely classified as a low resource area. There are high resource areas further north of the City in the unincorporated areas of Rio Del Mar and Aptos, as well as large regions of moderate resource areas east of the City in Interlaken and hillsides to the east. Regions directly surrounding Watsonville are predominantly agricultural and less densely populated in comparison to Watsonville; while the region to the east is largely rated as moderate resource, the area is predominantly made up of undeveloped, mountainous, open space.

Appendix E: Fair Housing Analysis E-3
Figure E-1: TCAC/HCD Opportunity Map
Source: California Department of Housing and Community Development – AFFH Data Viewer

Appendix E: Fair Housing Analysis E-4

2. Patterns of Integration and Segregation
This section contains an analysis of integration and segregation, including patterns and trends, relating to people with protected characteristics.
1 Segregation is defined as the separation or isolation of a race/ethnic group, national origin group, individuals with disabilities, or other social groups by enforced or voluntary residence in a restricted area, by barriers to social connection or dealings between persons or groups, by separate education facilities, or by other discriminatory means.2
Segregation is a complex topic, difficult to generalize, and is influenced by many factors. Individual choices can be a cause of segregation, with some residents choosing to live among people of their own race or ethnic group. For instance, recent immigrations may depend on nearby relatives, friends, and ethnic institutions to help them adjust to a new country. Alternatively, when White residents leave neighborhoods that become more diverse, those neighborhoods can become segregated. Other factors, including housing market dynamics, availability of lending to different ethnic groups, availability of affordable housing, and discrimination can also cause residential segregation. Figure E-2 establishes the 2020 census tracts and Table E-1 provides preliminary information about each census tract. 1 Government Code Sections 65583 (c)(10) and 8899.5 (a)(b) and (c). 2 Merriam-Webster Dictionary, Definition 2a.

Appendix E: Fair Housing Analysis E-5
Figure E-2: Watsonville Census Tracts
Table E-1: Neighborhood Segregation Household Data
Census Tracts Median
Income
Poverty
Status
Population
with a
Disability
Displacement Risk Renter
Occupied
060871101.01 $94,688 9.1% 15.8% At-Risk 22.78%
060871101.02 $67,857 12.1% 26.7% At-Risk 53.52%
060871102.01 $72,941 7.9% 7.2% Lower Risk 71.01%
060871102.02 $87,143 11.1% 16.1% Lower Risk 42.55%
060871103.00 $99,883 4.3% 9.1% 1 Income Group Displacement 52.21% 060871103.01 $60,817 15.7% 17% Lower Risk 90.43%
060871103.02 $41,325 23% 16.1% Lower Risk 74.29%
060871104.01 $58,092 33.7% 6.1% At-Risk 86.07%
060871104.02 $85,714 2.7% 5.7% At-Risk 41.99%
060871105.03 $48,264 18.5% 10.1% 2 Income Group Displacement 58.36% 060871105.04 $80,960 4.2% 5.9% 2 Income Group Displacement 35.59% 060871105.05 $65,116 25.6% 16.9% 2 Income Group Displacement 65.71% 060871105.06 $89,034 11% 4.4% 2 Income Group Displacement 44.61% 060871106.01 $62,913 3.4% 24.3% At-Risk 58.01%
060871106.02 $62,089 1.3% 9.9% At-Risk 41.84%
060871107.00 $103,750 11.4% 11.2% Lower Risk 33.33%
Source: UC Berkeley – Urban Displacement Project (2022)

Appendix E: Fair Housing Analysis E-6
Race and Ethnicity
As discussed in Appendix B, the City is made up of a majority Hispanic or Latino population at over 80 percent, followed by a smaller White population at approximately 12 percent. Persons identifying as Asian make up two percent of the City’s population.

Figure E-3 maps concentrations of predominant racial and ethnic groups within the region. The map shows that the City has two census tracts that report “Mostly Latinx”, which represent areas with more than 80 percent Latinx representation.
3 Additionally, the City of Watsonville is surrounded by unincorporated areas of Santa Cruz County and Monterey County that have the designation of either “Latinx-White” or “Mostly Latinx.” The nearest area of “Mostly White” is located approximately 11 miles to the northwest in the community of Aptos in unincorporated Santa Cruz County and the nearest area of “3 Groups Mixed” is located approximately 20 miles to the east in the area surrounding the City of Gilroy in Santa Clara County.

These census tracts encompass the Historic Downtown Core area and the northwest region of the City.

Table E-1 shows segregation data by Census Tracts. Census Tract 06087110300 has the lowest median income of $44,677, the highest percentage of residents that speak English less than very well (44.2 percent), and the highest percentage of renter-occupied housing units (82.7 percent). The remaining census tracts in the City report “Latinx-White.” The “Latinx-White” classification is any census tract where the Latinx population is under 80 percent, and the White population is the second largest ethnic majority in that area. Apart from several “Mostly Latinx” census tracts just south of the City’s boundaries in the unincorporated community of Pajaro, the region primarily consists of “Latinx-White” census tracts. 3 It is important to note that although Figure E-3 shows that Watsonville is predominantly Latinx-White, “mostly Latinx” designations represent concentrations of individuals of Latin American descent who can also identify with different racial groups.

Latinx and Hispanic can be mutually exclusive terms. For example, groups who identify as Hispanic are Spanish-speaking but may not identify as Latinx such as a person from Spain. On the other hand, those who identify as Latinx but are not Spanish-speaking may not identify as Hispanic such as a person from Brazil.

Appendix E: Fair Housing Analysis E-7
Figure E-3: Neighborhood Segregation
Source: California Department of Housing and Community Development – AFFH Data Viewer

Appendix E: Fair Housing Analysis E-8
Figure E-4a and E-4b illustrate the diversification of the City between 2010 and 2018. Over the eight-year period, the City experienced an increase in diversity west of the downtown area (east of Highway 1) and northwestern regions near the airport. The City also saw an increase in diversity in areas around the Watsonville Municipal Airport. Diversity in the central part of the City remained relatively stable from 2010 to 2018. The City’s population is composed of primarily Hispanic residents. Historically, many residents moved into the City as a result of farming-related job opportunities in the area. Agriculture is a major revenue generator for the City, including strawberry fields and frozen food distribution centers, and the City became a hub for many Hispanic people to find work and start building families. Additionally, the City has a lower cost of living than neighboring communities such as Santa Cruz to the north and Monterey to the south. As a result, lower living costs attract lower-income earning workers, thus leading more people of color, predominantly Hispanic, to make a home in this community.

Appendix E: Fair Housing Analysis E-9
Figure E-4a: Diversity Index (2010)
Source: California Department of Housing and Community Development – AFFH Data Viewer

Appendix E: Fair Housing Analysis E-10
Figure E-4b: Diversity Index (2018)
Source: California Department of Housing and Community Development – AFFH Data Viewer 2010

Appendix E: Fair Housing Analysis E-11
Racially and Ethnically Concentrated Areas of Poverty (R/ECAPs) are geographic areas with significant concentrations of poverty and minority populations. HUD developed a census-tract based definition of R/ECAP that relies on a racial and ethnic concentration threshold and a poverty test. The threshold states that an area with a Non-White population of 50 percent or more would be identified as a R/ECAP; the poverty test defines areas of extreme poverty as areas where 40 percent or more of the population live below the federal poverty line or where the poverty rate is three times the average poverty rate for the metropolitan area (whichever is lower). Thus, an area that meets either the racial or ethnic concentration and the poverty test would be classified as a R/ECAP. As shown in Figure E-5, there are no R/ECAPs in the City. The nearest R/ECAPs are located to the east in Gilroy and to the south in Salinas.

R/ECAPs are a long-standing, contributing factor to segregation. However, patterns of segregation in the United States show that of all racial groups, the White population is the most separated from other racial groups. Research also identifies segregation of affluence to be greater than the segregation of poverty.

Racial and economic segregation can have significant effects on respective communities, including but not limited to, socioeconomic disparities, educational experiences and benefits, exposure to environmental conditions and crime, and access to public goods and services.

Data used in the analysis of Racially Concentrated Areas of Affluence (RCAAs) comes from the 2015-2019 American Community Survey and is measured at the census tract level. HCD has created an RCAA metric to reflect California’s relative diversity and regional conditions, and to aid local jurisdictions in their analysis pursuant to AB 686 and AB 1304. HCD’s RCAA metric is first calculated using a Location Quotient (LQ) for each census tract that represents the percentage of total White population (White Alone, Not Hispanic or Latino) per census tract compared to the average percentage of total White population for all census tracts in each Council of Government (COG). For example, a census tract with an LQ of 1.5 has a percentage of total white population that is 1.5 times higher than the average percentage of total white population in the given COG region. To determine RCAAs, census tracts with an LQ of more than 1.5 times the State Area Median Income (AMI), which is lower, are assigned a numeric score of 1. A score of 1 indicates that a census tract is an RCAA. Census tracts that did not meet this criterion are assigned a score of 0.

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

Overall, RCAAs may represent a public policy issue to the extent that they have been created and maintained through exclusionary and discriminatory land use and development practices. As illustrated in Figure E-6, there are no RCAAs in the City, and the closest RCAA tracts are located northeast and southeast of the City, in the cities of Gilroy and Salinas.

Appendix E: Fair Housing Analysis E-12
Figure E-5: Racially and Ethnically Concentrated Areas of Poverty Source: California Department of Housing and Community Development – AFFH Data Viewer

Appendix E: Fair Housing Analysis E-13
Figure E-6: Racially Concentrated Areas of Affluence
Source: California Department of Housing and Community Development – AFFH Data Viewer

Appendix E: Fair Housing Analysis E-14
Hate crimes are violent acts against people, property, or organizations because of the group to which they belong or identify with. The Federal Fair Housing Act makes it illegal to threaten, harass, intimidate, or act violently toward a person who has exercised their right to free housing choice.

As shown in Table E-2, between 2010 and 2020, a total of eight hate crimes were reported in the City. The most common hate crime committed was based on Race/Ethnicity/Ancestry. Of these types of hate crimes, three were Anti-Hispanic, two were Anti-Black, one was Anti-Other Race/Ethnicity/Ancestry, one had Multiple Bias, and one was Anti-White. There was one hate crime committed in 2016 based on Religion (Anti-Jewish). Overall, reported hate crimes in the City have decreased since 2010 with only one reported hate crime since 2013.

Table E-2: FBI Hate Crimes by Bias, Watsonville (2014-2020) Year Race/Ethnicity/
Ancestry Religion
Sexual
Orientatio
n
Disability Gender
Identity
Multiple
Bias Total
2010 3 0 0 0 0 0 3
2011 1 0 0 0 0 0 1
2012 3 0 0 0 0 0 3
2013 0 0 0 0 0 0 0
2014 0 0 0 0 0 0 0
2015 0 0 0 0 0 0 0
2016 0 1 0 0 0 0 1
2017 0 0 0 0 0 0 0
2018 0 0 0 0 0 0 0
2019 0 0 0 0 0 0 0
2020 0 0 0 0 0 0 0
Total 8
Source: Federal Bureau of Investigation, Crime Data Explorer, 2010-2020.

Income
Household income level plays a significant role in housing choice. According to 2021 ACS 5-year estimates, the median household income for the City is $67,007, compared to $96,093 at the County level. The median household income in the City also varies based on tenure; the renter-occupied households have an annual median income of $54,764 while the owner-occupied households have an annual median income of $93,599.

Figure E-7 and E-8 shows the median income for Watsonville and the surrounding region from 2014 to 2019. There is a large range of economic outcomes in the City with neighborhoods surrounding the Downtown and one northwest area along Freedom Boulevard reporting the lowest median incomes. A majority of the neighborhoods in the City report median incomes under $87,000. There are three areas in the City that report a median income between $87,000 and $125,000. These areas are located near Las Brisas Park, Rolling Hills Middle School, and Crestview Park. As illustrated below, the City has seen an increase in median income from 2014 to 2019.