Watsonville City Council
October 15, 2024

Appendix E: Fair Housing Analysis E-15
Figure E-7: Median Income (2014)
Source: California Department of Housing and Community Development – AFFH Data Viewer

Appendix E: Fair Housing Analysis E-16
Figure E-8: Median Income (2019)
Source: California Department of Housing and Community Development – AFFH Data Viewer

Appendix E: Fair Housing Analysis E-17
The City has experienced a relatively moderate increase in median income over the past decade as shown in Table E-3. U.S. Bureau Census data reports a 43.6 percent increase in median income between 2010 and 2021, with the largest growth occurring from 2019 to 2020 for Watsonville and the County of Santa Cruz (difference of $6,026 and $7,752, respectively) and from 2020 to 2021 for California (difference of $6,235). The potential reason for the increase in median income could be due to the stimulus payments during the COVID-19 pandemic. The safety net programs enacted by Congress in 2020 moved many people out of poverty and off of unemployment insurance. The City’s median income percent increase is greater than the state level (39.5 percent), but smaller than the County (47.5 percent).

Table E-3: Median Income by Geography (2010-2021)
Median Income by
Year Watsonville County of Santa Cruz California
2021 $67,007 $96,217 $84,907
2020 $61,496 $89,986 $78,672
2019 $55,470 $82,234 $75,235
2018 $54,001 $78,041 $71,228
2017 $51,548 $73,663 $67,169
2016 $49,487 $70,088 $63,783
2015 $46,018 $67,256 $61,818
2014 $46,691 $66,923 $61,489
2013 $43,905 $66,519 $61,094
2012 $46,603 $66,571 $61,400
2011 $46,073 $66,030 $61,632
2010 $46,675 $65,253 $60,883
Percent Change 43.6% 47.5% 39.5%
Source: American Community Survey, 5-Year Estimates, 2010, 2015, 2020. 2021.

As shown in Table E-3, the City had a lower median income than the County and State in 2021. Table E-4 shows that a large portion of households earn between $50,000 and $74,999 annually at 20.4 percent.

Next, 14.6 percent of the City’s households earn between $100,000 and $149,999 annually. Thirty-five percent of households in the City earn below $50,000 annually compared to 25.9 percent at the County level and 30.5 percent at the State level.

Table E-4: Household Median Income by Geography
Annual Median
Income Watsonville County of Santa Cruz California
Less than $10,000 2.8% 4.1% 4.6%
$10,000-$14,999 3.9% 2.7% 3.6%
$15,000-$24,999 11.6% 5.9% 6.2%
$25,000-$34,999 7.8% 5.5% 6.7%
$35,000-$49,999 9.8% 7.7% 9.4%
$50,000-$74,999 20.4% 13.2% 14.7%
$75,000-$99,999 14.4% 12.4% 12.3%
$100,000-$149,999 14.6% 17.0% 17.5%
$150,000-$199,999 7.5% 11.7% 9.9%
$200,000 or More 7.2% 19.8% 15.1%
Source: American Community Survey, 5-Year Estimates, 2021.

Appendix E: Fair Housing Analysis E-18
To calculate projected housing needs for extremely low-income (ELI) households, the City assumes 50 percent of its very low-income RHNA are ELI households. As the City was allocated 283 very low-income units, approximately 142 units are projected for ELI households. Some ELI households could face other housing challenges depending on the age of the householder, tenure status, or household characteristics (mental or physical disabilities, household size, language proficiency, etc.) that could exacerbate housing problems.

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

Table E-5 displays the data for persons with disabilities in the City, County, and State. The City reported a higher percentage (13.6 percent) of persons with disability than the County and State. Overall, about 10.6 percent of California’s population and 11.3 percent of the County of Santa Cruz’s population reported having at least one disability. Of the 13.6 percent of Watsonville residents who reported a disability, the most common disability was independent living and ambulatory difficulty (7.7 percent and 6.7 percent, respectively). Ease of reasonable accommodation procedures and opportunity for accessible housing can provide increased housing security for populations with disabilities.

Table E-5: Disability Types by Geography
Disability Watsonville County of Santa Cruz California
Total with a Disability 13.6% 11.3% 10.6%
Hearing Difficulty 4.5% 3.5% 2.9%
Vision Difficulty 2.9% 2.2% 2.0%
Cognitive Difficulty 5.9% 5.1% 4.4%
Ambulatory Difficulty 6.7% 4.8% 5.7%
Self-care Difficulty 2.8% 2.3% 2.6%
Independent Living 7.7% 5.0% 5.5%
Source: American Community Survey, 5-Year Estimates, 2021.

In both Santa Cruz County and the City, the percentage of individuals with disabilities also increases with age, with the highest percentage of individuals with disabilities being those 75 years and older. Refer to Table E-6 for the distribution of percentages by age.
4 42 U.S.C. Section 3601 et. seq.

Appendix E: Fair Housing Analysis E-19
Table E-6: Percentage of Population with Disabilities by Age by Geography Age Santa Cruz County Watsonville
Under 5 years 2.3% 6.3%
5 to 17 years 6.4% 7.3%
18 to 34 years 7.2% 8.5%
35 to 64 years 10.1% 13.6%
65 to 74 years 18.2% 29.8%
75 years and over 44.9% 63.0%
Source: American Community Survey, 5-Year Estimates, 2021.

Figure E-9 displays data for disability status in Watsonville by census tract. The map shows that roughly half of the census tracts in the City have 10 percent to 20 percent of their residents reporting at least one disability. These census tracts are concentrated in the central and northeastern regions of the City. The other half of census tracts report under 10 percent and are generally located in the southern region of the City.

Appendix E: Fair Housing Analysis E-20
Figure E-9: Population with a Disability
Source: California Department of Housing and Community Development – AFFH Data Viewer

Appendix E: Fair Housing Analysis E-21
Familial Status
Under the FHA, housing providers (e.g., landlords, property managers, real estate agents, or property owners) cannot discriminate because of familial status. Familial status refers to the presence of at least one child under 18 years old, pregnant persons, or any person in the process of securing legal custody of a minor child (including adoptive or foster parents). Examples of familial status discrimination include refusing to rent to families with children, enforcing overly restrictive rules regarding children’s use of common areas, requiring families with children to live on specific floors, buildings, or area, charging additional rent, security deposit, or fees because a household has children, advertising a preference for households without children, and lying about unit availability.

Families with children often have special housing needs due to lower per capita income, the need for affordable childcare, the need for affordable housing, or the need for larger units with three or more bedrooms. Single parent households may experience greater housing affordability challenges due to typically lower household incomes compared to two-parent households. Sex and familial status often intersect to compound the discrimination faced by single mothers.

Table E-7 displays household type for the State, County, and City. Overall, Watsonville primarily consists of married-couple family households at 52.2 percent. Non-family households make up the lowest percentage of households in the City at 6.6 percent. Watsonville also has the highest percentage of female-headed households with children compared to the County and State. Approximately 30.7 percent of households in the City have at least one person over the age of 60. Different household types have varying housing needs – senior households may benefit from affordable housing options due to limited income, and family households may benefit from larger housing units located near community areas and schools.

Table E-7: Population by Familial Status by Geography
Familial Status City of Watsonville County of Santa Cruz California Total Households 14,587 96,476 13,217,586
Married-Couple Family Households 52.2% 48.8% 49.5%
With Children 26.4% 17.9% 21.0%
Non-Family Households 6.6% 8.3% 7.1%
Households with one or more people
60 years+ 30.7% 34.4% 30.1%
Female Headed Households, No
Spouse Present with Children 7.5% 3.4% 4.7%
Source: American Community Survey, 5-Year Estimates, 2021.

Appendix E: Fair Housing Analysis E-22

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

Mobility
Access to public transit is vital for households affected by low-incomes and rising housing prices, especially because lower-income households are often transit dependent. Public transit should strive to link lowerincome persons to major employers where job opportunities exist. Access to employment via public transportation can reduce welfare usage and increase housing mobility, which enables residents to locate housing outside of traditionally low-income neighborhoods.

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

AllTransit explores metrics that reveal the social and economic impact of transit, specifically looking at connectivity, access to hubs, and frequency of service. According to the data shown in Table E-8 and Figure E-10, Watsonville scored a 6.1 AllTransit performance score, illustrating a moderate combination of trips per week and number of jobs accessible that enable a moderate number of people to take transit to work.

In total, 29,170 jobs are accessible within a 30-minute trip from Watsonville, and 1.56 percent of commuters in the City use transit. Additionally, AllTransit identified the following transit-related statistics in the City:
• 97.9 percent of jobs in Watsonville are located within ½ mile of transit • 99.5 percent of workers in Watsonville live within ½ mile of transit • 2.05 percent of workers in Watsonville who live within ½ mile of transit commute by walking • 1.23 percent of workers who live in Watsonville within ½ mile of transit commute by biking • 99.6 percent of Low-Income Housing Tax Credit buildings in Watsonville are within ½ mile of transit
Watsonville scored lower than the City of Santa Cruz (7.0), however the City scored higher than neighboring jurisdictions Capitola (5.0) and Scotts Valley (4.4). Additionally, Watsonville has a higher transit score than Santa Cruz County overall (4.8).

Appendix E: Fair Housing Analysis E-23
While there is accessibility to jobs within 30 minutes in the City, Alltransit also accounts for the headways or average traffic when using transportation. Typical headways in Watsonville are about an hour, and there is a significant amount of major traffic when using Highway 1 to commute within and outside of the City, as it is one of the few major roadways through the City. These factors likely contribute to the total

6.1 score that has been provided by Alltransit.

Table E-9 below shows the number of working-age individuals and commuter characteristics such as the percentage of those who work within and outside of Watsonville and the County. Almost a third of the City’s population work within the County who may commute within or outside the City. Approximately

70.6 percent of commuters spend less than 30 minutes to commute to work, indicating that residents either work within the City or in adjacent areas and chose to drive. Additionally, 85.2 percent of residents who reported having 0 to 1 vehicle available tend to take public transit to commute to and from work.

Residents who have more than one vehicle available tend to drive alone or carpool.

Table E-9: Commute to Work Geography, Travel Time, and Vehicles Available in Watsonville, CA Car, truck, van
(alone)
Car, truck, van
(carpool)
Public
transportation (no
taxi)
Total
Population (16+ years) 17,983 2,685 169 24,029
Worked in County of
residence 74.2% 75.4% 84.9% 77.1%
Worked outside County 25.4% 23.9% 15.1% 22.5%
Travel Time
< 30 mins 70.6% 68.0% 56.2% 70.2%
≥ 30 mins 29.5% 31.9% 43.8% 29.7%
Percent Vehicles Available
0-1 Vehicles 12.0% 11.2% 85.2% 13.6%
2 vehicles 36.6% 35.5% 0.0% 0.367
3+ vehicles 51.5% 53.3% 14.8% 49.7%
Source: US Census, 2021 ACS 5-Year Estimates: Table S0804 Table E-8: AllTransit Index
Jurisdiction
All Transit
Performance
Score
Transit Trips
Per Week
within ½ Mile
Jobs Accessible
in 30-min trip
Commuters
Who Use
Transit
Transit Routes
within ½ Mile
Watsonville 6.1 1,114 29,170 1.56% 7
Capitola 5.0 976 42,606 0.82% 5
Scotts Valley 4.4 1,147 29,207 1.42% 3
Santa Cruz County 4.8 1,269 33,599 2.99% 6
Source: AllTransit, Transit Scores. Accessed October 3, 2023.

Appendix E: Fair Housing Analysis E-24
Figure E-10: AllTransit Performance Score (2021)
Source: AllTransit Fact Sheet, 2023
Figure E-11 below displays all METRO stops and routes within the City. As illustrated, the public transportation network within the City allows residents to move throughout most areas in the community.

A robust public transit network allows residents access to jobs, schools, health services, open space, and other important amenities. METRO’s routes also connect Watsonville to the surrounding region.

Appendix E: Fair Housing Analysis E-25
Figure E-11: METRO Routes and Stops in Watsonville
Source: Watsonville Community Development and Planner Viewer, Accessed 2023.

Appendix E: Fair Housing Analysis E-26
Economic and Employment Opportunities
The TCAC/HCD Opportunity Area Maps include economic data, as shown in Figure E-12. This data represents opportunity levels based on the following factors:
• Poverty – Percent of population with an income above 200 percent of the federal poverty line. • Adult Education – Percent of adults aged 20-64 who are employed in the civilian labor force or in the armed forces.
• Job Proximity – Number of jobs filled by workers with less than a Bachelor of Arts degree that fall within a given radius (determined by the typical commute distance of low-wage workers in each region) or each census tract population-weighted centroid. • Median Home Value – Value of owner-occupied units.

Figure E-12 shows that a majority of the City has less positive economic outcomes while the region surrounding Watsonville has varying economic outcomes. Census tracts west of Highway 1 have more positive economic outcomes while census tracts in the southern areas generally have fewer positive outcomes. Census tracts east of the City have moderately positive economic outcomes. Overall, the City is primarily surrounded by agricultural land, which should be considered when evaluating opportunity scores within the region.

Figure E-13 shows that Watsonville residents on the west side of the City generally live closer to employment opportunities than residents on the east side. The majority of the residents in the west have a Jobs Proximity Index in the range of 60 to 80, meaning closer proximity from jobs and shorter commute times. Overall, Watsonville residents have varying access to jobs within the region. Block groups northeast of the City have the furthest proximity to jobs. The City’s bus network, the Watsonville Circulator, and METRO allow for accessible travel to several employment destinations throughout the City and region.

Appendix E: Fair Housing Analysis E-27
Figure E-12: Economic Opportunity Scores
Source: California Department of Housing and Community Development – AFFH Data Viewer

Appendix E: Fair Housing Analysis E-28
Figure E-13: Job Proximity Index
Source: California Department of Housing and Community Development – AFFH Data Viewer

Appendix E: Fair Housing Analysis E-29
Education Opportunities
The TCAC/HCD Opportunity Area Maps include education data, as illustrated in Figure E-14. This data represents opportunity levels based on the following four factors:
• Math proficiency – Percentage of fourth graders who meet or exceed math proficiency standards. • Reading proficiency – Percentage of fourth graders who meet or exceed literary standards. • High school graduation rates – Percentage of high school cohort that graduated on time. • Student poverty rate – Percentage of students not receiving free or reduced-price lunch.

Figure E-14 shows educational scores overlaid with schools in the Pajaro Valley Unified School District (PVUSD). As shown, the entire City is scored at the least positive education outcomes. This score is comparable to the surrounding region. Schools in the City are evenly dispersed and all fall within areas of less positive education outcomes.

Appendix E: Fair Housing Analysis E-30
Figure E-14: Pajaro Valley Unified School District and Educational Outcomes Source: California Department of Housing and Community Development – AFFH Data Viewer Figure E-15 shows English Language Arts/Literacy and Mathematics proficiency scores for Pajaro Valley Unified School District (PVUSD), which serves the City. According to the data provided by the California Assessment of Student Performance and Progress, 27.2 percent of students in the school district met or exceeded the standard for English Language Arts/Literacy and 17.26 percent of students in the school district met or exceeded the standard for Math. Both of these proficiency scores are lower than the County proficiency scores of 43.53 percent for English Language Arts/Literacy and 30.36 percent for Math.

Appendix E: Fair Housing Analysis E-31
Figure E-15: English Language Arts/Literacy and Mathematic, PVUSD vs. County of Santa Cruz Pajaro Valley Unified School District (PVUSD):

Source: California Assessment of Student Performance and Progress, 2021-22 County of Santa Cruz:

Source: California Assessment of Student Performance and Progress, 2021-22

Appendix E: Fair Housing Analysis E-32
Environmental Health
The California Office of Environmental Health Hazard Assessment (OEHHA) developed a screening methodology to help identify California communities disproportionately burdened by multiple sources of pollution, called the California Communities Environmental Health Screening Tool (CalEnviroScreen). In addition to environmental factors (pollutant exposure, groundwater threats, toxic sites, and hazardous materials exposure) and sensitive receptors (seniors, children, persons with asthma, and low birth weight infants), CalEnviroScreen also takes into consideration socioeconomic factors. These factors include educational attainment, linguistic isolation, poverty, and unemployment. Research has shown a heightened vulnerability of people of certain ethnicities and lower socioeconomic status to environmental pollutants.

The CalEnviroScreen 4.0 Model is made up of a suite of 20 statewide indicators of pollution burden and population characteristics associated with increased vulnerability and pollution’s health effects. The model uses the following analysis and calculation to identify area of health risk:
• Uses a weighted scoring system to derive average pollution burden and population characteristics scores for each census tract.
• Calculates a final CalEnviroScreen score for a given census tract relative to the other tracts by multiplying the pollution burden and population characteristics components together. • Measures the relative pollution burdens and vulnerabilities in one census tract compared to others; the score is not a measure of health risk.

Figure E-16 maps the CalEnviroScreen 4.0 scores for the City and surrounding region. Overall, the City has moderate to high levels of pollution burdens. Tables E-10 and E-11 compare two census tracts with the highest and lowest pollution burdens in the City. As detailed, census tract 6087110600 has a pollution burden in the 65th percentile while census tract 6087110400 has a pollution burden in the 85th percentile.

Overall, census tract 6087110600 scored in the 65th percentile while census tract 6087110400 scored in the 81st percentile. The table also illustrates that the further southwest one goes in the City, the higher the levels of pollution there are. The southwest area of the City is where the vast majority of the City’s General Industrial zoning is located and it is also surrounded by agricultural uses in the County.

Appendix E: Fair Housing Analysis E-33
Table E-10: CalEnviroScreen 4.0 for Census Tract 6087110600 Pollutant Percentile* Health Risk/Burden Percentile*
CalEnviroScreen 4.0 65 Pollution Burden 65
Ozone 17 Asthma 38
Particulate Matter 2.5 4 Low Birth Weight 33
Diesel Particulate Matter 70 Cardiovascular Rate 19
Toxic Releases 7 Education 96
Drinking Water 31 Linguistic Isolation 82
Lead from Housing 67 Poverty 51
Cleanup Sites 62 Unemployment 90
Groundwater Threats 39 Housing Burden 82
Hazardous Waste 83 - -
Impaired 59 - -
Solid Waste 60 - -
*Percentile derived using a weighted scoring system to determine average pollution burden/socioeconomic scores relative to other census tracts.

Source: CalEnviroScreen 4.0. Accessed January 10, 2023.

Table E-11: CalEnviroScreen 4.0 for Census Tract 6087110400 Pollutant Percentile* Health Risk/Burden Percentile*
CalEnviroScreen 4.0 81 Pollution Burden 85
Ozone 15 Asthma 65
Particulate Matter 2.5 3 Low Birth Weight 20
Diesel Particulate Matter 86 Cardiovascular Rate 45
Toxic Releases 7 Education 86
Drinking Water 31 Linguistic Isolation 96
Lead from Housing 57 Poverty 84
Cleanup Sites 90 Unemployment 59
Groundwater Threats 93 Housing Burden 74
Hazardous Waste 68 - -
Impaired Waters 98 - -
Solid Waste 73 - -
*Percentile derived using a weighted scoring system to determine average pollution burden/socioeconomic scores relative to other census tracts.

Source: CalEnviroScreen 4.0. Accessed January 10, 2023.

Appendix E: Fair Housing Analysis E-34
Figure E-16: CalEnviroScreen 4.0
Source: California Department of Housing and Community Development – AFFH Data Viewer

Appendix E: Fair Housing Analysis E-35

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

Disproportionate housing needs refer to disparities in cost burden, overcrowding, substandard housing, and displacement risk for special needs populations in comparison to the rest of the population.

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

Table E-12 displays data for overcrowding in the State, County, and City over time. The City experiences higher rates of overcrowding in comparison to the County and the State. According to the data, overcrowding occurs more frequently in renter households rather than owner households. In Watsonville, owner households that are severely overcrowded represent 3 percent of all households while severely overcrowded renter households represent 10 percent. Since 2011, owner households in the City have seen a slight decrease in overcrowding and severe overcrowding while renter households have seen an increase in overcrowding.

Table E-12: Overcrowding Change Over Time by Geography
Overcrowding and
Tenure
City of Watsonville County of Santa Cruz California
2011 2021 2011 2021 2011 2021
Owner Household
Overcrowded (1.01 to

1.5 persons per room) 9.8% 5.8% 2.5% 2.7% 3.1% 3.1%
Severely Overcrowded
(1.51 or more persons
per room)

3.8% 3.0% 1.1% 0.7% 1.0% 1.1%
Renter Household
Overcrowded (1.01 to

1.5 persons per room) 17.0% 18.2% 6.4% 6.8% 8.0% 7.7%
Severely Overcrowded
(1.51 or more persons
per room)

9.9% 10.0% 3.8% 5.7% 5.2% 5.5%
Source: American Community Survey, 5-Year Estimates, 2011 and 2021.

Cost Burden
A household paying more than 30 percent of its income for housing is considered to be overpaying and cost burdened. A household paying 50 percent or more is considered severely cost burdened. Table E-13 shows that owner occupied households in the City have similar but slightly lower cost burdens than the County and State. However, the City had higher cost burdened (58 percent versus 54 percent and 50 percent) and severely cost burdened (31 percent versus 30 percent and 26 percent) renter households compared to the County and State.

Appendix E: Fair Housing Analysis E-36
Table E-13: Cost Burden by Geography
Cost Burden
City of Watsonville
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 Less
than or = 30%
755 11.7% 620 9.6% 2,730 34.6% 2,085 26.5%
Household
Income >30%
to less-than or
=50% AMFI
240 3.7% 200 3.1% 1,410 17.9% 325 4.1%
Household
Income >50%
to less-than or
=80% AMFI
350 5.4% 20 0.3% 365 4.6% 15 0.2%
Household
Income >80%
to less-than or
= 100% AMFI
225 3.5% 10 0.2% 55 0.7% - 0.0%
Household
Income >80%
to less-than or
>100% AMFI
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%
Cost Burden
County of Santa Cruz
Owner Renter
Cost
Burden >
30%
% of
Owner
HH
Cost
Burden
> 50%
% of
Owne
r HH
Cost
Burden >
30%
% of
Renter
HH
Cost
Burden >
50%
% of Renter
HH
Household
Income is Less
than or = 30%
4,385 7.5% 3,355 5.8% 8,890 23.3% 7,715 20.2%
Household
Income >30%
to less-than or
=50% AMFI
2,790 4.8% 1,925 3.3% 4,935 12.9% 2,105 5.5%
Household
Income >50%
to less-than or
=80% AMFI
3,645 6.3% 1,545 2.7% 3,770 9.9% 865 2.3%

Appendix E: Fair Housing Analysis E-37
Household
Income >80%
to less-than or
= 100% AMFI
2,195 3.8% 320 0.6% 955 2.5% 65 0.2%
Household
Income >80%
to less-than or
>100% AMFI
4,530 7.8% 790 1.4% 660 1.7% 0 0.0%
Total 17,545 30.2% 7,935 13.7% 19,210 53.8% 10,750 30.0% Cost Burden
California
Owner Renter
Cost
Burden >
30%
% of
Owner
HH
Cost
Burden
> 50%
% of
Owne
r HH
Cost
Burden >
30%
% of
Renter
HH
Cost
Burden >
50%
% of Renter
HH
Household
Income is Less
than or = 30%
487,895 6.7% 392,115 5.4% 1,202,005 20.5% 999,550 17.1% Household
Income >30%
to less-than or
=50% AMFI
405,530 5.6% 243,060 3.4% 813,750 13.9% 363,985 6.2%
Household
Income >50%
to less-than or
=80% AMFI
514,605 7.1% 180,000 2.5% 614,395 10.5% 112,765 1.9%
Household
Income >80%
to less-than or
= 100% AMFI
252,135 3.5% 49,580 0.7% 162,840 2.8% 12,465 0.2%
Household
Income >80%
to less-than or
>100% AMFI
459,710 6.3% 52,800 0.7% 108,765 1.9% 5,325 0.1%
Total 2,119,875 29.3% 917,555 12.7% 2,901,755 49.5% 1,494,090 25.5% * 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.

Note: AMFI = 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. AMFI 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) 2016-2020.

Appendix E: Fair Housing Analysis E-38
Figures E-17 and E-18 illustrate overpayment for homeowners and renters throughout the City and neighboring communities. Aside from the area just south of the Watsonville Municipal Airport, renters in Watsonville experience moderate to high overpayment rates across the City. The region beyond the City has a variety of renter overpayment rates ranging from 20 percent to more than 80 percent. Homeowners, on the other hand, experience high overpayment rates of over 80 percent in the southwest census tracts of the City. Low to moderate overpayment rates ranging from less than 20 percent to 60 percent exist throughout the City. This is consistent with the surrounding region.

Appendix E: Fair Housing Analysis E-39
Figure E-17: Overpayment by Renters (2017-2021)
Source: California Department of Housing and Community Development – AFFH Data Viewer

Appendix E: Fair Housing Analysis E-40
Figure E-18: Overpayment by Homeowners (2017-2021)
Source: California Department of Housing and Community Development – AFFH Data Viewer

Appendix E: Fair Housing Analysis E-41
Substandard Housing
Most of Watsonville’s existing housing stock was built over 35 years ago and much of it before 1950. Due to a high demand for housing in the area, there are a number of units that are substandard or require improvements to bring them up to code. Incomplete plumbing or kitchen facilities can be used to measure substandard housing conditions. Substandard housing is defined by the U.S. Census Bureau as:
• Housing without hot and cold-piped water, a flush toilet, and a bathtub or shower; and • Households with kitchen facilities that lack a sink with piped water, a range or stove, or a refrigerator.

Table E-14 below shows substandard housing within Watsonville, Santa Cruz County, and the State of California. The City has the highest percentage of occupied housing units without complete kitchen facilities compared to the County and State. The City is the only geography that experienced a decrease in substandard housing factors between 2011 and 2021. Overall, 176 substandard housing complaints were reported in the City in 2020. HCD’s AFFH Data viewer identifies areas of substandard housing by census tracts. As shown in Figure E-19, census tracts with greater rates of substandard housing are located in the northwesternmost portion of the City by the airport, and in southern/southeastern portions abutting the City’s boundaries. The southern/southeastern portion of the City has the highest percentage of substandard housing units. Figure E-19 and Figure E-20 identify areas in the City with greater rates of incomplete kitchen and plumbing facilities, respectively.

Table E-14: Substandard Housing Over Time by Geography
Factors
City of Watsonville Santa Cruz County California
2011 2021 2011 2021 2011 2021
Total Occupied
Housing Units 13,800 14,587 93,834 96,476 12,433,172 13,217,586 Without Complete
Plumbing Facilities 1.7% 0.5% 0.4% 0.4% 0.4% 0.4%
Without Complete
Kitchen Facilities 2.2% 1.0% 0.9% 1.0% 1.2% 1.1%
Source: American Community Survey, 5-Year Estimates, 2011 and 2021.

Figure E-20 displays the percentage of all households with any of the four severe housing problems (lacks complete kitchen, lacks complete plumbing, severely overcrowded, and severely cost-burdened) in Watsonville. Housing needs are assessed by the HUD Comprehensive Housing Affordability Strategy (CHAS), based on ACS data. Housing problems and severe housing problems include the following elements:

Housing Problem Severe Housing Problem
• Incomplete kitchen facilities • Incomplete kitchen facilities • Incomplete plumbing facilities • Incomplete plumbing facilities • 1+ person per room • 1.5+ person per room
• Cost burden greater than 30 percent • Cost burden greater than 50 percent

Appendix E: Fair Housing Analysis E-42
The City reports between 20 and 40 percent of its households with at least one of the four severe housing problems. Outside of the City, there are areas reporting between 60 to 80 percent to the south and with between 40 and 60 percent of households with at least one severe housing problem to the north. Per the definitions of substandard housing, there is no housing in need of replacement within the City. However, the City is actively working on improving the living conditions of existing homes, such as through abatement measures, addressing potential safety hazards, and enhancing accessibility.

Appendix E: Fair Housing Analysis E-43
Figure 19: Units Lacking Complete Kitchen Facilities
Source: California Department of Housing and Community Development – AFFH Data Viewer

Appendix E: Fair Housing Analysis E-44
Figure E-20: Units Lacking Complete Plumbing Facilities Source: California Department of Housing and Community Development – AFFH Data Viewer

Appendix E: Fair Housing Analysis E-45
Figure E-21: Severe Housing Problems
Source: California Department of Housing and Community Development – AFFH Data Viewer

Appendix E: Fair Housing Analysis E-46
Displacement Risk
Displacement occurs when housing costs or related conditions force current residents out of their homes and rents become so high that lower-income people are excluded from moving in. UC Berkeley’s Urban Displacement Project (UDP) states that a census tract is a sensitive community if the proportion of very low-income residents was above 20 percent in 2018 and the census tracts meets two of the following criteria: (1) share of renters above 40 percent in 2018; (2) share of Non-White population above 50 percent in 2018; (3) share of very low-income households (50 percent AMI or below) that are also severely rent burdened households above the County median in 2018; or (4) nearby areas have been experiencing displacement pressures.

The potential for economic displacement risk can result from a variety of factors, including large-scale development activity, neighborhood reinvestment, infrastructure investments, and changes in local and regional employment opportunities. Economic displacement can be an inadvertent result of public and private investment, where individuals and families may not be able to keep pace with increased property values and market rental rates.

The UDP developed a neighborhood change database to map neighborhood transformations and identify areas vulnerable to gentrification and displacement. This data was developed to assist local decision makers and stakeholders better plan for existing communities and provide additional resources to areas in need or at-risk of displacement and gentrification.

Figure E-22 shows the downtown area is experiencing “one income group displacement” while the area directly north is experiencing “two income groups displacement.” The rest of the City is primarily “at risk of displacement.” Table E-15 identifies demographics for the three census tracts in the City.

Appendix E: Fair Housing Analysis E-47
Census tract 06087110300 includes the largest population of individuals who speak English “less than well,” as well as a greater ratio of low-income households. Renter-occupied units in census tract 06087110300 are also noticeably higher than census tracts 06087110501 and 06087110200. White populations are higher in census tracts 06087110501 and 06087110200 than at the citywide level. LatinX residents make up 82 percent of the City’s population compared to 93.6 percent in census tract 06087110300, 75.6 percent in census tract 06087110501, and 71.1 percent in census tract 06087110200.

Census tract 06087110200, which is currently identified as a “hot market” is currently experiencing “lower displacement risk” while census tracts 0608711050 and 06087110300, which are not considered “hot markets,” are experiencing elevated displacement for low-income (50 percent to 80 percent AMI) and high displacement for very low-income households (0 percent to 50 percent AMI).

Table E-15: Areas At-Risk of Displacement (2019)
Data Census Tract
06087110501
Census Tract
06087110200
Census Tract
06087110300 City-Wide
Demographics
Population 8,594 7,957 7,275 53,800
Households 2,314 2,171 1,846 14,717
Renter Occupied 65.3% 53.2% 82.7% 57%
Median Income $50,851 $59,775 $44,677 $55,470
Low-Income Households 59.8% 53.2% 66.6% 76.6%
Speak English Less Than
Very Well 31.3% 25.9% 44.2% 33.2%1
Race/Ethnicity
: Latino-White
White 22.3% 23.0% 5.3% 12%
Black 0.1% 1.9% 0.1% <1%
Asian 1.1% 3.6% 0.6% 3%
LatinX 75.6% 71.1% 93.6% 82%
Other 0.9% 0.4% 0.3% 2%
Housing
Median Rent $1,411 $1,450 $1,189 $1,502
Rent Gap $71.46 lower than
nearby rents
$11.51 lower than
nearby rents
$303.15 lower
than nearby
rents
-
Hot Market No Yes No -
Displacement Type: Elevated
Displacement for
Low-Income (50%-
80% AMI)
Lower Displacement
Risk
High
Displacement for
Very Low-Income
households (0% -
50% AMI)
-
Note: The Census greatly underestimates rent and home values.

1. Average of City of Watsonville census tracts.

Source: California Department of Housing and Community Development – AFFH Data Viewer

Appendix E: Fair Housing Analysis E-48
Figure E-22: Displacement Risk
Source: California Department of Housing and Community Development – AFFH Data Viewer

Appendix E: Fair Housing Analysis E-49
In addition to displacement and gentrification data, the UDP also analyzes the occurrence of antidisplacement, as defined below:
• Just Cause Eviction Ordinance – Just cause eviction statutes are laws that allow tenants to be evicted only for specific reasons. These “just causes” can include a failure to pay rent or violation of the lease terms.
• Rent Stabilization or Rent Control – Rent Control ordinances protect tenants from excessive rent increases, while allowing landlords a reasonable return on investments. Such ordinances limit rent increase to certain percentages, but State law allows landlords to raise rents to the market rate once the unit becomes vacant.
• Rent Review Board and/or Mediation – Rent review boards mediate between tenants and landlords on issues related to rent increases and encourage them to come to a voluntary agreement. As mediators, the board normally does not make binding decisions. • Mobile Home Rent Control – Mobile home rent control places specific rent increase restrictions on the land rented by mobile homeowners, and/or the mobile homes themselves. • SRO (Single-Room Occupancy) Preservation – Single room occupancies, also called residential hotels, house one or two people in individual rooms. Tenants typically share bathrooms and/or kitchens. These are often considered a form of permanent residence affordable for low-income individuals. SRO Preservation Ordinances help to preserve or create new SRO units. • Condominium Conversion Regulations – In addition to state laws regulating the conversion of multi-family rental property into condominiums, many cities have enacted condominium conversion ordinances. These impose procedural restrictions and/or substantive restrictions on the ability to convert apartment units to condominiums to protect the supply of rental housing. • Foreclosure Assistance – Many cities and counties have local programs that assist homeowners when they are at risk of foreclosure. These programs may be funded with federal grants. • Jobs-Housing Linkage Fee or Affordable Housing Impact/Linkage Fee – Affordable housing impact/linkage fees are charges on developers of new market-rate, residential developments.

They are based on the square footage or number of units in the developments and are used to develop or preserve affordable housing.
• Housing Trust Fund – A housing trust fund is a designated source of public funds –generated through various means–that is dedicated to creating affordable housing. • Inclusionary Zoning/Housing (Below Market Rate Housing) – Inclusionary housing policies require market-rate developers of rental or for-sale housing to rent or sell a certain percentage of units at affordable prices. Some policies include a provision for developers to pay “in-lieu fees” in place of building the housing; this revenue is used to develop affordable units elsewhere. • Local Density Bonus Ordinance – Local density bonuses allow developers of market-rate housing to build higher-density housing, in exchange for having a certain portion of their units offered at affordable prices. In this inventory, we only include a city as having this policy if they allow an additional density bonus beyond that mandated by the State.

Appendix E: Fair Housing Analysis E-50
• Community Land Trusts – Community land trusts are nonprofit, community-based organizations (supported by the city or county) whose mission is to provide affordable housing in perpetuity by owning land and leasing it to those who live in houses built on that land. • First Source Hiring Ordinances – First Source hiring ordinances ensure that residents are given priority for new jobs created by municipal financing and development programs.

Table E-16 identifies which of these policies the City has adopted, according to the Urban Displacement Project as specified above.

Table E-16: Anti-Displacement Policies
Anti-Displacement Measures Watsonville Policy Measure
Just Cause Eviction Ordinance No
Rent Stabilization or Rent Control No
Rent Review Board and/or Mediation No
Mobile Home Rent Control Yes
SRO Preservation Yes
Condominium Conversion Regulations Yes
Foreclosure Assistance No
Jobs-Housing Linkage Fee Yes
Commercial Linkage Fee No
Housing Trust Fund Yes
Inclusionary Zoning Yes
Local Density Bonus Ordinance No
Community Land Trusts No
First Source Hiring No
Source: UC Berkely Urban Displacement Project, SF Bay Area -Policy Map Affordable Units At-Risk of Converting to Market Rate
Jurisdictions are required by State Housing Element Law to analyze government-assisted housing that is at risk of converting to market rate housing over 10 years from the beginning of the planning period. The analysis in this section evaluates potential units at risk of conversion to market rate from June 30, 2023, to June 30, 2033.

State law identifies housing assistance as a rental subsidy, mortgage subsidy, or mortgage insurance to an assisted housing development. Government assisted housing may convert to market rate housing for several reasons, including subsidies, mortgage repayments, or expiration of affordability restrictions.

Affordable covenants help to ensure that certain housing units remain affordable for an extended period of time. Covenants help balance the housing market in a community and provide lasting affordable options to low and very low-income households. This section will provide:
• An inventory of assisted housing units that are at risk of converting to market-rate housing, • An analysis of the costs of preserving and/or replacing these units, • Resources that could be used to preserve at-risk units, • Program efforts for preservation of at-risk housing units, and

Appendix E: Fair Housing Analysis E-51
• Quantified objectives for the number of at-risk units be preserved during the Housing Element planning period.

Table E-17 below identifies deed-restricted assisted rental properties within Watsonville. The earliest date of conversion is 2033 for the Independence Square property. While considered a moderate risk of conversion, the City has coordinated with the property owners of this development. They have expressed interest in extending the affordability restriction. Therefore, while there is 100 units that can be considered to be at-risk, they will not be converted to market rate during the 10-year period from the beginning of the Planning Period (June 20, 2023).

Appendix E: Fair Housing Analysis E-52
Table E-17: Deed-Restricted Assisted Rental Properties
Development Property Address Assisted
Units
Units by Bedroom
Type
Expiration
Date
At Risk of
Converting to
Market Rate
Alianza/Vista
del Mar 217-237 Pacific Blvd. 11
Studio: 1
1-Bed: 5
2-Bed: 5
2052 No
Bay Breeze Ohlone Pkwy 21 4-Bed: 21 2049 No
Bay Village 635 Bridge Street 1 2-Bed: 1 2057 No
Cherry Place 125-167 Cherry
Blossom Drive 7
Studio: 6
4-Bed: 1 2041 No
Evan Circle 205 Evan Circle 1 4-Bed: 1 2062 No
Green Valley
Villas 105-109 Toscano Loop 2
3-Bed: 1
4-Bed: 1 2043 No
Hacienda Walk Vista del Mar Drive 26 2-Bed: 4
3-Bed: 20 2059 No
In-Fill Housing 120 Prospect 7
2-Bed: 3
3-Bed: 4 2061 No
Jared’s Place 16 Jared Way 2 Studio: 2 2047 No
Las Brisas 103 El Capitan court 20
Studio: 1
2-Bed: 6
3-Bed: 8
4-Bed: 5
2051 No
Loma Prieta
Terrace 12 Paseo Prieto 1 3-Bed: 1 2055 No
Orange Blossom 10 Orange Blossom
Way 4
Studio: 2
3-Bed: 2 2044 No
Pajaro Vista 2 Pajaro Vista Court 14
1-Bed: 1
2-Bed: 9
3-Bed: 4
2051 No
Resetar Lane
Homes 30 D West Lake Avenue 1 3-Bed: 1 2049 No
Rose Blossom 5 Chappell Loop 2
Studio: 1
3-Bed: 1 2043 No
Sea View Ranch 10 Las Casitas Drive 62
Studio: 1
3-Bed: 13
4-Bed: 48
2054 No
Skyview
Townhomes 321 Airport Blvd 2 3-Bed: 2 2053 No
Vista Montana 159 Marcela Drive 61 3-Bed: 7
4-Bed: 54 2048 No
Vista Nueva 325 Airport Blvd 12
Studio: 3
3-Bed: 6
4-Bed: 3
2053 No
Independence
Square 1355 Madison Street 100 1-Bed: 972-Bed: 3 2033 No Source: Affordable Housing Monitoring AB 987 Implementation, Watsonville

Appendix E: Fair Housing Analysis E-53
While there are no known units at risk of converting to market rate, a variety of programs exist to help acquire, replace, or subsidize at-risk affordable housing units. The following summarizes financial resources available:
• Community Development Block Grant (CDBG) - CDBG funds are awarded to cities on a formula basis for housing activities. The primary objective of the CDBG program is the development of viable communities through the provision of decent housing, a suitable living environment and economic opportunity for principally low- and moderate-income persons. Eligible activities include administration, fair housing, energy conservation and renewable energy sources, assistance for economic development, public facilities and improvements, and public services. • HOME Investment Partnership - Local jurisdictions can receive funds by formula from HUD to increase the supply of decent, safe, sanitary, and affordable housing to lower-income households.

Eligible activities include housing acquisition, rehabilitation, development, homebuyer assistance, and rental assistance.
• Section 8 Rental Assistance Program - The Section 8 Rental Assistance Program provides rental assistance payments to owners of private, market-rate units on behalf of very low-income tenants, senior citizens, disabled persons, and other individuals for securing affordable housing. • Section 202/811 Program - Non-profit and consumer cooperatives can receive no-interest capital advances from HUD under the Section 202 Program for construction of very low- income rental housing with the availability of supportive services for seniors and persons with disabilities. These funds can be used in conjunction with Section 811 funds, which can be used to develop group homes, independent living facilities, and immediate care facilities. The capital advance funding can also provide project rental assistance for the properties developed using the funds. Eligible activities include acquisition, rehabilitation, new construction, and rental assistance. • California Housing Finance Agency (CALHFA) Multifamily Programs - CalHFA’s Multifamily Programs provide permanent financing for the acquisition, rehabilitation, and preservation of new construction of rental housing that includes affordable rents for low- and moderate-income families and individuals. One of the programs is the Preservation Loan program which provides acquisition/rehabilitation and permanent loan financing designed to preserve or increase the affordability status of existing multifamily housing projects. • California Community Reinvestment Corporation (CCRC) - The California Community Reinvestment Corporation is a multi-family affordable housing lender whose mission is to increase the availability of affordable housing for low-income families, seniors, and residents with special needs by facilitating private capital flow from its investors for debt and equity to developers of affordable housing. Eligible activities include new construction, rehabilitation, and acquisition of properties.
• Low-Income Housing Tax Credit (LIHTC) - This program provides tax credits to individuals and corporations that invest in low-income rental housing. Tax credits are sold to those with high tax liability and proceeds are used to create housing. Eligible activities include new construction, rehabilitation, and acquisition of properties.

Appendix E: Fair Housing Analysis E-54
• Affordable Housing Ordinance - The City’s Affordable Housing Ordinance requires a percentage of new homes and those where the developer and/or buyer received a City subsidy to be affordable for very low to above moderate-income households. These homes are part of the City’s Affordable Housing Program and may also be referred to as inclusionary or deed restricted units.

The following organizations have the experience and capacity to potentially assist in preserving units atrisk of converting to market-rate as well as in developing additional affordable units:
• MidPen Housing
• Eden Housing
• Housing Authority of the County of Santa Cruz
Homelessness
People experiencing homelessness are those who do not have a fixed, regular, and adequate overnight residence, or whose overnight residence is a shelter, street, vehicle, or enclosure or structure unfit for habitation. Factors contributing to increases of homelessness may include the following:
• Lack available resources to support stable housing access; • Spikes in rent increase and lack of tenant protections; • Housing discrimination;
• Evictions;
• Lack of housing affordable to low- and moderate-income persons; • Increases in the number of persons whose incomes fall below the poverty level; • Reductions in public subsidies to the poor; and
• The deinstitutionalization of the mentally ill.

The City’s website provides a range of resources for homeless individuals such as housing services, emergency shelters, food sources, family and children resources, health care, mental health resources, transportation resources, and substance abuse resources. Community Bridges, a non-profit organization, provides a range of services and support in areas such as food security, family support, crisis support, and case management services at no cost. Furthermore, Metro’s Homeless Outreach Team is deployed on Metro buses, trains, and stations to engage with unhoused riders and connect them to variety of services and resources through a multidisciplinary housing-first approach. The City also provides a phone number to its residents to report homeless encampments in public properties such as sloughs, wetlands, and transit areas within city limits.

According to the Santa Cruz County Point-In-Time Homeless Count and Survey Comprehensive Report, there were an estimated 421 unhoused persons in Watsonville in 2023. Overall, this accounts for approximately 23 percent of the unhoused population in the County. Approximately 76.4 percent of all unhoused persons in the City are unsheltered. The unhoused population increased by 15 percent since the last Homeless Count and Survey Comprehensive Report. When contextualized with the total number of people residing in Watsonville, the 421 homeless individuals represent less than a percent of the City’s population. In neighboring jurisdictions, the count of homeless persons in 2023 was:

Appendix E: Fair Housing Analysis E-55
• Capitola: 23
• City of Santa Cruz: 1,028
• Unincorporated: 249
The demographic data for unhoused persons in Watsonville is not broken down by jurisdictions. However, of the 1,721 total unhoused persons in the County, persons who identified as White made up 81 percent of the unhoused population – up from 74 percent in 2022. Persons who identified as Black or African American decreased to 6 percent in 2023, greater than the 1 percent of the total population in the County.

Four percent of unhoused persons identified as American Indian or Alaska Native, less than 1 percent identified as Native Hawaiian, 7 percent identified as multi-race, and 1 percent identified as Asian. Of the 81 percent who identified as White, 44 percent identified as Hispanic or Latino, a slight increase from 39 percent in 2022.

Additionally, of the County’s unhoused population 71 percent identified as Male, 28 percent identified as Female, and the rest identified as Transgender or another Gender. Approximately 23 percent of all unhoused persons indicated a history of foster care. More than half of the unhoused persons in the County (58 percent) were between 25 and 54 years of age. Unhoused persons aged 0-17 years old and 18-24 years old comprised 15 percent and 20 percent of the total unhoused population in the County.

Approximately 74 percent of all unhoused persons were experiencing chronic homelessness, meaning they have been unhoused for one (1) or more years. Of the unhoused population, many had health conditions which respondents indicated contributed to experiencing homelessness. Approximately 46 percent experienced drug or alcohol abuse, 34 percent experienced a physical disability, 29 percent experienced a chronic health condition, 39 percent experienced psychiatric or emotional conditions, and 38 percent experienced post-traumatic stress disorder.

While the Santa Cruz County Housing for Health Partnership 2023 Homeless Count does not provide a spatial analysis of homeless population, City staff has identified the greatest concentration of homeless individuals in the Downtown area and near the levee, river, creeks, and sloughs surrounding the City.

While some of these areas are outside the City’s limits, unhoused persons sheltering in these areas spend much of their time within City boundaries in areas with more accessibility to services, resources, and public transportation.

The following emergency shelter housing locations assist unhoused people. These shelters also provide services to homeless individuals such as hot meals.
• Pajaro Valley Shelter – Watsonville/Santa Cruz City and County Continuum of Care (CoC) • Salvation Army – Watsonville/Santa Cruz City and County CoC • Pajaro Rescue Mission – Salinas/Monterey, San Benito Counties CoC • Families in Transition – Watsonville/Santa Cruz City and County CoC

Appendix E: Fair Housing Analysis E-56
B. Fair Housing Enforcement and Outreach Capacity

1. Fair Housing Enforcement and Outreach
Fair Housing enforcement and outreach capacity refers to the ability of a locality and fair housing entities to disseminate information related to fair housing laws and rights and provide outreach and education to community members. Enforcement and outreach capacity also includes the ability to address compliance with fair housing laws, such as investigating complaints, obtaining remedies, and engaging in fair housing testing. The City will refer Fair Housing complaints to legal services and resources such as the California Rural Legal Assistance (CRLA), Watsonville Law Center (WLC), and Senior Legal Services to handle any civil findings or lawsuits.

CRLA operates a state-wide Fair Housing and Foreclosure Prevention Program under the guidance of HUD.

CRLA provides a variety of consultation services through its hotline service and consultations, distributes legal information to landlords and tenants, and files and litigates fair housing complaints in which violations of federal or state housing discrimination laws impact residents. These include cases involving race, national origin, familial status, religion, disability, age, sexual orientation, gender, and gender identity.

Where required, CRLA will conduct fair housing surveys or tests to determine whether violations exist.

Many landlord and tenant disputes are successfully resolved without formal litigation. In such disputes, the case handler assigned will contact the opposing party and attempt to resolve the issue with a mutually agreeable and negotiated resolution. If negotiations are not possible, litigation may be the only alternative. CRLA also participates in housing fairs in jurisdictions throughout the county. These forums provide the opportunity to distribute landlord-tenant information on rights and responsibilities and educating the general public about fair housing. Programs organized by CRLA relating to fair housing:
• Fair Housing Services
• First-Time Home Buyer Counseling
• First-Time Homebuyer Education
• Home-Seeking Counseling
• Shared Housing Counseling and Placement
City staff provides general information to the public about fair housing laws and practices, and landlord/tenant issues. When a member of the public reaches out to the City for information or concerns/complaints regarding fair housing or landlord/tenant issues, the City Housing Division staff talks to the concerned resident by phone, email or in person within 24 hours from the initial contact. If staff suspects that they are the victim of housing discrimination, staff asks the affected persons to gather the following in order to identify the appropriate party to refer them to:

1. Document their experience (names of individuals, companies, addresses, phone numbers, dates, times and witnesses involved);

2. Make notes of conversations or incidents that might indicate discrimination;

3. Keep copies of advertising, letters, or other relevant information; and

Appendix E: Fair Housing Analysis E-57

4. If they know a person with a different protect characteristic such as opposite sex, or a different race, etc. who received a different answer than they did, make a note of their name and address.

Depending on the nature of the concern, staff refers the concerned resident to the following agencies for advice, assistance and/or legal representation. For local information they are referred to the Santa Cruz County District Attorney's Office, Tenant/Landlord Rights. If they are part of a low-income household, they may be referred to the following agencies for information, assistance and/or representation:
• California Rural Legal Assistance (CRLA) (free to low-income residents)- (831) 724-2253 • Watsonville Law Center (WLC) (free service to low-income individuals)- (831) 722-2845 • Eviction Defense Collaborative (Community Bridges, Tenant Sanctuary, Senior Legal Services, and the Conflict Resolution Center of Santa Cruz County)- (831) 288-2148 • Senior Citizens Legal Services (55 years of age and above)- (831) 426-8824 • Santa Cruz Lawyer's Referral Service ($40 for a 30-minute legal consultation)- (831) 425-4755 • Small Claims Advisory by Monterey College of Law (free service)- (831) 373-1959 Both CRLA and WLC provide free legal services to low-income individuals and will generally meet with individuals within one week. All information is available on the City’s website at https://www.watsonville.gov/177/Housing-Resources.

California’s Department of Fair Employment and Housing (DFEH) has statutory mandates to protect the people of California from discrimination pursuant to the California Fair Employment and Housing Act (FEHA), Ralph Civil Rights Act, and Unruh Civil Rights Act (with regards to housing). The FEHA prohibits discrimination and harassment based on race, color, religion, sex (including pregnancy, childbirth, or related medical conditions), gender, gender identity, gender expression, sexual orientation, marital status, military or veteran status, national origin, ancestry, familial status, source of income, disability, and genetic information, or because another person perceives the tenant or applicant to have one or more of these characteristics.

The Unruh Civil Rights Act (Civ. Code §51) prohibits business establishments in California from discriminating in the provision of services, accommodations, advantages, facilities and privileges to clients, patrons and customers because of their sex, race, color, religion, ancestry, national citizenship, primary language, or immigrations status. The Ralph Civil Rights Act (Civ. Code §51.7) guarantees the right of all persons within California to be free from any violence, or intimidation by threat of violence, committed against their persons or property because of a political affiliation, or on account of sex, race, color, religion, ancestry, national origin, disability, medical condition, genetic information, marital status, sexual orientation, citizenship, primary language, immigration status, or position in a labor dispute, or because another person perceives them to have one or more of these characteristics.

2. Fair Housing Enforcement Partnerships
The City partners with a number of organizations to enforce fair housing. Groups like the Watsonville Law Center and California Rural Legal Assistance together offer landlord tenant dispute counseling services.

The City also lists contact information on their website for the following fair housing organizations:
• Community Action Board - Rental Assistance Program

Appendix E: Fair Housing Analysis E-58
o Eviction-prevention program that offers rental assistance to county residents faced with an eviction notice.
• Catholic Charities – Family Supportive Services
o Offers a financial stability program that assists families and individuals facing economic crisis. This program consists of four main interventions: a) in depth assessment, b) case management, c) financial resources, d) financial education, and e) referrals to community programs.
o Community Action Board - CalWORKS Emergency Payment Program • Housing Resources – United Way 211 List

3. Fair Housing Laws
The City is in compliance with existing fair housing laws, and often seeks to go beyond State requirements to address fair housing and access to affordable housing. There have been no findings against the City from the U.S. Department of Housing and Urban Development (HUD) Office of Fair Housing and Equal Opportunity (FHEO) or from the State Department of Fair Employment and Housing (DFEH).

The following lists State and local fair housing laws and specifies how the City complies:

State:
• California Fair Employment and Housing Act (FEHA): The City continues to implement and update programs that promote fair and equal access to housing. The City also continues to review standards and requirements that may constrain equal access to housing and the development of affordable housing.
• Government Code Section 65008: The City continues to implement programs that encourage affordable housing development. The City implements an inclusionary Housing Ordinance that requires the development of affordable units as part of multi-family residential developments. • Government Code Section 8899.50: The City implements programs and actions in compliance with State law that affirmatively further fair housing. As detailed in the Housing Plan, the City administers programs to promote equal housing access and affordable resources. • Government Code Section 11135: The City promotes State-funded programs, such as the FirstTime Homebuyer Loan Program, on the City’s website and at the public counter. The City continues to implement and encourages programs that promote full and equal access to all programs and activities.
• Density Bonus Law: The City’s adopted Density Bonus Ordinance is inconsistent with State Density Bonus Law. However, for applicants seeking density bonuses above 35 percent (the maximum allowed under the existing ordinance), the City has been applying Government Code Section 65915, allowing up to a 50 percent density bonus for mixed-income developments and 80 percent density bonus for 100 percent affordable housing developments. The City also provides incentives to developers to produce affordable housing to very low-income households, moderate-income households, senior citizens, transitional foster youth, disabled veterans, and persons experiencing homelessness, as well as for the development of childcare facilities. The Housing Plan includes a

Appendix E: Fair Housing Analysis E-59
program requiring the City to amend the Density Bonus Ordinance to comply with state law by December 2025.
• No-Net-Loss Law: The Candidate Sites Analysis details how the City maintains adequate sites to meet its RHNA. The City is on track to meet its 6
th cycle RHNA across all income-levels.
• Excessive Subdivision Standards: The City continues to update its Zoning Ordinance, waive certain development fees, and offer incentive packages to facilitate housing development. • Housing Element Law: The City identifies and includes an analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs.

Local:
• Local Ordinances: The City has multiple local ordinances that establish procedures for rezoning, development permit processing, affordable housing fees, and other programs that encourage fair housing practices. These are provided in Appendix D.
• Housing Plan Programs: The Housing Plan details the City’s goals, policies, programs, and objectives. The City addresses the need to provide additional housing opportunities, remove constraints to affordable housing, improving the existing housing stock, and provide equal opportunities for current and future residents of Watsonville. The City will also look at place based strategies to improve the infrastructure relative to the Housing Element sites.

4. Fair Housing and Civil Rights Findings, Lawsuits, Enforcement, Settlements or Judgments
The City’s Planning and Community Development Department works closely with residents, property owners, outside agencies, and other City departments to resolve health, safety, and public nuisance conditions that adversely affect the quality of life in Watsonville. Enforcement is provided proactively and on a compliant basis. Most code violations are resolved on the initial contact made by Staff. Staff generally works under the model of voluntary compliance withing a reasonable amount of time allotted. In rare instances, penalties are assessed to those who fail to comply with the Watsonville Municipal Code. The Planning Division is primarily responsible for enforcing the provisions of the Zoning Ordinance and the California Building Codes, the Watsonville Municipal Code, and the Uniform Housing Code.

The City has not had any civil rights findings, lawsuits, settlements, or judgments, and is committed to ensuring the furthering of fair housing.

Appendix E: Fair Housing Analysis E-60
C. Relevant Factors

1. Background
The City of Watsonville is a thriving community of approximately 52,590 residents. The City is predominantly Latino and working-class and was incorporated in 1868. Watsonville is located in the heart of Pajaro Valley, roughly 5 miles inland from Monterey Bay. Watsonville flourished when the Southern Pacific Railroad linked the areas to the Santa Clara Valley in 1871. This growth allowed churches, schools, newspapers, and other businesses to spring up around the City as electricity and telegraphs networks were established. Today, Watsonville is primarily known for its agricultural and food processing industries.

The City has also recently explored new opportunities in light industry, manufacturing, tourism, and other service industries.

2. Investments
Watsonville’s Capital Improvement Program Fiscal Year 2020-2025 shows the City is primarily investing in public works-related projects such as water, transportation, solid waste, and sewage. Following public works projects, the City is investing in parks and community services. Figure E-23 below highlights some of the planned transportation projects throughout the City:

Appendix E: Fair Housing Analysis E-61
Figure E-23: Transportation Projects
Source: Google Earth, Watsonville Capital Improvements Program FY 2020-25 Historic Downtown
The City has several downtown revitalization improvement projects planned which include upgraded pedestrian, lighting, traffic calming, safety elements, bicycle amenities, and overall beautification to the area. There are also specific planned improvements to buildings in downtown such as the Gene Hoularis and Waldo Rodriguez Youth Center, the Parks & Community Services building, and City Hall.

Ramsay Park
As one of the most popular parks in the City, Ramsay Park has several planned improvements (shown in Figure E-24). The Ramsay Park Renaissance Project improvements include upgraded walkways and overall access, new HVAC systems, parking lot resurfacing, basketball court resurfacing, soccer field renovations, playground renovation, dog park addition, and other infrastructure improvements. These improvements are meant to provide the community with a more comfortable and accessible experience.

Appendix E: Fair Housing Analysis E-62
Figure E-24: Ramsay Park, Conceptual Design
Source: Ramsay Park Master Plan, Ramsay Park Renaissance Project

3. Contributing Factors
Locally derived knowledge and contributing factors were developed in response to community participation in outreach events and through analysis conducted in Affirmatively Furthering Fair Housing development and analysis of sites inventory and feedback and comment on the draft Housing Element’s data, analysis, and policy program. The contributing factors listed below were identified as creating, perpetuating, and/or increasing the severity of fair housing issues in Watsonville:
• Lack of Reasonable Accommodation Procedures: Per State Law, Cities are required to provide reasonable accommodations to persons with disabilities, and it is unlawful to deny any of those requests. There have been no requests for Reasonable Accommodations in the City thus far. The City will ensure that any such requests are responded to in the manner required by law. • Lack of Affordable Housing Variety: As noted above, the Watsonville community is predominantly Latino and working class and has high housing costs. The agriculture, retail trade and arts, entertainment, recreation, accommodation, and food service sectors represent just under 30 percent of the City’s total workforce but earn incomes that are much lower than the City’s median income. Persons working in these sectors, as well as other sectors earning below the City’s median income, may not have the opportunity to live in the City in which they work and must commute longer distances.

Appendix E: Fair Housing Analysis E-63
• Availability of Public Transportation: While the City does have a higher transit score than the County of Santa Cruz, as reflected in Table E-8 and Figure E-10, public transit is not a viable option for City residents due to the long headways for transit stops and traffic congestion. While Figure11 shows METRO stations dispersed throughout Watsonville, the amount of time taken between bus arrivals causes a constraint on public transit utilization. • Lack of Employment Variety: Recognized as one of the most productive agricultural areas in the world, the City of Watsonville’s main source of revenue comes from agriculture work. This is shown in Table B-6, which demonstrates that agriculture, forestry, fishing and hunting, and mining make up 13.5 percent of the City’s employment, which is the second highest in the City.

Additionally, the other high percentages of employment involve education services, health care, and social assistance, and retail trade, at 21.3 percent and 10.5 percent, respectively. The issue with this is that these jobs typically yield lower paying wages, which does not help offset housing costs in the City. Higher paying jobs such as information, finance and insurance, real estate, and rental leasing or professional, scientific, management, and administrative careers collectively only comprise 11.9 percent of the job variety in the City. Allowing for a more diverse job market would help families close the gap in terms of income and living costs. • Local Limits on Land Development/Acquisition: Due to the Urban Limit Line (ULL) established by Measure U in 2002 and revised and extended by Measure Q in 2022, there are restrictions on developing in any area outside of the ULL. The ULL is likely the contributing factor for more concentrated development in the center of the City. Removal of the ULL would allow for more development outside the City boundaries.
• Development Constraints Around Airport Area: Due to the Watsonville Municipal Airport being located within City Boundaries, FAA development standards and regulations are applicable to the surrounding area. These regulations restrict many residential uses; and, if allowed, only extremely low-density housing is usually permitted (e.g. one unit per 10-20 acres). This prohibits the development of land that would otherwise be feasible to provide affordable housing units.

Appendix E: Fair Housing Analysis E-64
D. Analysis of Sites Pursuant to AB 686
AB 686 requires that jurisdictions identify sites throughout the community in a manner that is consistent with its duty to affirmatively further fair housing. The site identification requirement involves not only an analysis of site capacity to accommodate the RHNA (provided in Appendix F), but also whether the identified sites serve the purpose of replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity.

1. Framework for AB 686 Analysis
As shown in Figure E-25 below, the City established AB 686 Planning Areas for a comparative analysis of how the RHNA inventory and City’s housing policies are affirmatively furthering fair housing. The analysis framework considers demographics, segregation and integration, race, income, racially/ethnically concentrated areas of poverty, racially concentrated areas of affluence, urban displacement, and RHNA sites dispersal among AB 686 Planning Areas. The planning areas are: Southwest, Southeast, Northwest, and Northeast.

The AB 686 Planning Areas are not established for zoning or regulatory purposes. The planning areas reflect census tract boundaries and are bifurcated to assess the equitable distribution of the City’s sites.

The goal of the analysis is to ensure that the City’s housing policy is consistent with AB 686 to intentionally further fair housing.

Appendix E: Fair Housing Analysis E-65
Figure E-25: AB 686 Planning Areas – Site Candidates by Income Category

Appendix E: Fair Housing Analysis E-66
Table E-18: AB 686 Planning Area Summary Analysis
Planning
Area
Census
Tracts
Census
Block
groups
AVG.

NonWhite
AVG.

Low/Mod
Income
RHNA Lower
Income
RHNA
Moderate/
Above
Moderate
RHNA
Total
Southwest 4 5 90% 85% 209 694 903
Southeast 6 8 88% 79% 191 858 1,049
Northwest 12 17 87% 72% 50 378 428
Northeast 10 14 88% 74% 15 135 150
Total* 17 33 88% 78% 465 2,065 2,530
*Note: Some Planning Areas include sites that are double counted due to an overlapping of census tracts within Planning Areas.

As shown in Table E-18, Watsonville is predominantly Non-White across its entire boundary. Therefore, racial segregation pattern analysis requires a unique framework to determine some of the nuances and patterns that may exist at a block group level within a City that is largely Non-White. Watsonville is primarily characterized by TCAC as Low Resource and does not contain any R/ECAP or RCAA areas.

Displacement risk varies throughout the City with a higher likelihood of very low-income household displacement occurring in the Downtown area, where most of the inventoried sites are located.

Moreover, the Southwest Planning Area is overwhelmingly Non-White at 90 percent whereas the remaining Plan Areas average just below 90 percent Non-White. Small portions of the City west of Highway 1 with no residential uses are identified by TCAC as a moderate resource area. The spread of RHNA inventory sites shows that lower income units are allocated throughout the city. While concentrations of the RHNA inventory are located in the south/central portion of the city in Downtown Watsonville, the area contains a mix of low- and moderate-income sites. In addition, existing infrastructure and resources and the increased densities included in the recently adopted Downtown Watsonville Specific Plan make the sites ripe for development and are further described in Appendix F:

Sites Inventory.

Overall AB 686 Program Considerations:
• Any Program that identifies goals for increased affordable housing production should geographically target R/ECAP areas, TCAC Low Resource/ High Segregation and Poverty areas for special engagement and strategic action.
• Any Program focused on tenant protections, displacement, and/or equity should geographically target TCAC High Segregation and Poverty, R/ECAP, and Urban Displacement LowIncome/Susceptible to Displacement/Ongoing Displacement/At Risk of Gentrification/Ongoing Gentrification areas for special engagement and strategic action. • Any Program that identifies goals for increased Housing Authority investment and support should geographically target R/ECAP area and TCAC High Segregation and Poverty areas for special engagement and strategic action.

Appendix E: Fair Housing Analysis E-67
Detailed AB 686 Analysis by Plan Area
The following detailed AB 686 analysis displays Plan Areas with census tracts and block groups that have been identified with 6th cycle sites. Census tracts and block groups which do not have an identified site are not listed.

Planning Area 1: Southwest
Characteristics: The Southwest Planning Area is characterized by a total of four census tracts spread across five block groups. Three census tracts (1103.00, 1103.01, 1104.01) contain sites identified to meet the City’s 6th cycle RHNA goals, as shown in Table E-19 below. The Plan Area is predominantly characterized by Hispanic and Non-White populations. A high percentage of low- and moderate-income households exist. Although the Plan Area is characterized as Low Resources by TCAC and described as an area at risk of displacement, there are no R/ECAP and RCAA areas. The majority of mixed income sites identified for the RHNA inventory for this Planning Area are within the Downtown Watsonville Specific Plan (DWSP) area, which is contained within Census Tract 1104.01 and Census Tract 1103.00. The sites mostly represent existing surface parking lots adjacent to underutilized or vacant commercial lots, underutilized commercial lots, and existing industrial uses that are in the process of being transitioned to residential and mixed uses through the DWSP area. Additionally, some sites are small acreage lots less than 0.5 acres that are legal parcels and can be tied with the adjacent lot to provide sufficient acreage for affordable housing development.

Assessment: The addition of 209 lower income units can provide additional affordable housing opportunities for an area largely characterized as low income. The Downtown area, which is classified as “High Displacement for Very Low-Income Households” and “At Risk of Displacement” includes RHNA sites that are intended for affordable housing. The Downtown Watsonville Specific Plan guides development in the area and includes provisions to minimize displacement risk by preserving existing affordable housing.

Additionally, the City’s application of State density bonus provisions and the affordable housing ordinance have been successful and can provide new affordable housing projects that are feasible for developers, as further described in Appendix F: Sites Analysis. Although a majority of the sites are non-vacant, the sites include industrial and underutilized commercial uses that would not directly displace residents and thus lowers the risk of displacement. Regardless, the 6th cycle HEU includes a program to ensure that new housing development minimizes displacement risk to very low-income households.

Program Considerations:
• Target the production of 209 lower income units on parcels in Downtown areas within Census Tracts 1103.00 and 1104.01.

Appendix E: Fair Housing Analysis E-68
Table E-19: AB 686 Planning Area 1: Southwest
Census
Tract
Census
Block
group
Hispanic/
Latino
NonWhiteLow/Mod
Income
RHNA
Lower
Income
RHNA
Moderate
RHNA
Above
Moderate
RHNA
Total
1103.00
1 89.9% 93.1% 87.8% 59 73 161 293
2 88.9% 92.7% 85.0% 6 12 29 47
3 89.9% 93.1% 87.8% 0 0 0 0
4 92.8% 95.6% 88.9% 0 0 0 0
1104.01
1 86.7% 85.3% 75.5% 93 47 105 245
2 88.9% 92.7% 85.0% 51 82 180 313
Total 209 214 480 898
Planning Area 2: Southeast
Characteristics: As shown in Table E-20, the Southeast Planning Area is characterized by six census tracts and eight block groups. Three census tracts (1101.02, 1103.00, 1103.01) and six block groups contain sites identified to meet the City’s 6th cycle RHNA goals. The Plan Area includes sites which are located in a portion of the Downtown area, vacant commercial land, and existing underutilized commercial/retail buildings. The sites assume a mixed income housing project so that lower income units are distributed throughout the Plan Area. A majority of the RHNA sites are located in Census Tract 1103.01 and Census Tract 1103.02 along the Main Street and West Lake Ave intersection, which have higher density zoning with in-fill opportunities. The displacement typology identifies the area as potentially high displacement for very low-income households.

Assessment: The addition of 191 lower income units can provide additional affordable housing opportunities for an area largely characterized as low income. A pipeline project at 558 Main Street within the Plan Area involves the construction of a 4-story mixed use development and provides 50 dwelling units (10 for low and very low incomes) on a 0.75-acre lot. The project provides a density allowance of

72.9 du/ac and sets a precedent for future affordable housing development to increase units for lower income households. Neighborhoods within this plan area identified as susceptible to displacement have been identified with sites for lower income housing opportunities, to assist with affordability. Racial and income segregation could be minimized by new development of this nature. Although the eastern portion of the plan area does not have significant numbers of RHNA inventoried sites due to limited in-fill and vacant land opportunities, the area allows for Accessory Dwelling Units and streamlines ADU development under the city’s ADU ordinance. The City produces ADUs at an average rate of 27 per year and 216 ADUs are projected for this housing cycle (27 per year).

Program Considerations:
• Target the production of at least 191 lower income units on parcels located in the Downtown area within Census Tract 1103.00 and Census Tract 1103.01.
• Target increased production of affordable ADUs in Census Tract 1101.02.

Appendix E: Fair Housing Analysis E-69
Table E-20: AB 686 Planning Area 2: Southeast
Census
Tract
Census
Block
group
Hispanic/
Latino
NonWhiteLow/Mod
Income
RHNA
Lower
Income
RHNA
Moderate
RHNA
Above
Moderate
RHNA
Total
1101.02 1 76.7% 82.0% 70.5% 0 1 2 3
1103.00
1 82.9% 87.1% 77.5% 12 15 33 60
2 84.9% 88.7% 84.2% 73 96 211 380
3 89.9% 93.1% 88.9% 36 47 146 229
4 92.8% 95.6% 88.9% 55 70 159 285
1103.01 2 92.8% 95.6% 88.5% 14 23 54 91
Total 191 252 606 1,049
Planning Area 3: Northwest
Characteristics: As shown in Table E-21, the Northwest Planning Area is characterized by 12 census tracts and 17 block groups. Seven census tracts (1103.01, 1104.02, 1105.01, 1105.02, 1106.01, 1106.02, 1107) and 17 block groups contain sites identified to meet the city’s 6th cycle RHNA goals. The Plan Area covers the largest portions of Watsonville and includes the Watsonville Municipal Airport, the Watsonville Community Hospital, and many undevelopable sensitive habitat areas. For the areasthat are developable, they are mostly built-out with low- and medium-density single-family homes. The sites assume mixed income housing projects so that lower income units are distributed throughout the Plan Area. A majority of inventoried sites is clustered in the southeast portion of the planning area within the Downtown Watsonville Specific Plan area, and includes parcels that are vacant and nonvacant residentially and commercially zoned in-fill parcels. The displacement typology identifies a combination of “at risk of displacement”, “high displacement for very low-income households”, and “elevated displacement for lowand very low-income households” for Census Tracts 1105.02 & 1106, 1103.00, and 1105.01, respectively.

Additionally, two inventoried sites occur in Census Tract 1104.02, which has the lowest percentage of lowand moderate-income households and described as “at risk of displacement”.

Assessment: The addition of 50 lower income units can provide additional affordable housing opportunities for an area largely characterized as low-income. Most low-income populations exist in Census Tract 1103.01, which is inventoried for the Downtown Watsonville Specific Plan (DWSP) vacant and nonvacant infill sites. Other census tracts have inventoried sites scattered throughout the planning area, comprising less than 80 percent low- and moderate-income populations. Neighborhoods within this plan area that are identified as susceptible to displacement have been identified with sites for lower income housing opportunitiesto further assist with housing affordability. The provision of affordable units through mixed-income housing projects can increase opportunities in various neighborhoods throughout the City. While some Census Tracts within the plan area do not have inventoried sites due to site constraints and limited vacant land, the surrounding area includes pipeline projects that include affordable units and may influence redevelopment. Additionally, the area allows for Accessory Dwelling Units and streamlines ADU development under the City’s ADU ordinance.

Appendix E: Fair Housing Analysis E-70
Program Considerations:
• Target the production of at least 50 lower income housing units on parcels located within the Northwest Plan Area.
• Target the production of mixed income housing projects in parcels within Census Tract 1103.01 in the Downtown Watsonville Specific Plan area.

Table E-21: AB 686 Planning Area 3: Northwest
Census
Tract
Census
Block
group
Hispanic/Latino NonWhite
Low/Mod
Income
RHNA
Lower
Income
RHNA
Moderate
RHNA
Above
Moderate
RHNA
Total
1103.01
1 91.2% 93.6% 81% 0 0 0 0
2 88.4% 91.6% 46.3% 0 0 0 0
3 76.8% 87.3% 85.9% 5 8 21 34
1104.00
1 81.2% 86.6% 71.5% 0 0 0 0
2 81.6% 87.6% 80.8% 0 0 0 0
4 73.8% 87.3% 69.1% 8 21 115 144
1105.01 1 82.5% 87.1% 73.2% 18 31 75 124
1105.02
1 87.0% 90.6% 74.1% 0 0 0 0
2 87.0% 90.9% 87.1% 0 9 12 21
3 73.8% 87.3% 68.3% 0 0 0 0
1106.00
2 79.2% 85.0% 67.4% 5 12 69 86
3 80.6% 85.1% 75.7% 14 0 4 18
1107.00 1 80.6% 85.1% 70.6% 0 0 1 1
Total 50 81 297 428
Planning Area 4: Northeast
Characteristics: As shown in Table E-22, the Northeast Planning Area is characterized by nine census tracts and 14 block groups. Four census tracts (1103.01, 1105.02, 1105.01, 1102.02) and 10 block groups contain sites identified to meet the city’s 6th cycle RHNA goals. Census tract 1103.01 has the highest concentration of low- and moderate-income populations, and is located in the DWSP area. This planning area is already built out and consists of mainly single-family developments. With this in mind, the sites assume mixed income housing projects so that lower income units are distributed throughout the Plan Area. The remaining inventoried sites are clustered in the DWSP area. They include vacant residential parcels, as well as residential and commercial parcels that are underutilized. The inventoried sites are located in census tract areas with a variety of displacement types. Most notably, a clustering of inventoried sites occurs in the Downtown Area that is described as “high displacement for very low-income groups” and “elevated displacement for low and very low-income groups”. As such, the provision of affordable units aims to minimize impacts of displacement for lower income groups while providing new opportunity for investment in the area.

Assessment: The addition of 15 lower income units can provide additional affordable housing opportunities for areas largely characterized as low income. The provision of affordable housing in low

Appendix E: Fair Housing Analysis E-71
income and high or elevated displacementrisk areas can increase housing opportunities in the Downtown area. Neighborhoods within this plan area that are identified as susceptible to displacement have been identified with sites for lower income housing opportunities to further assist with housing affordability.

Although the eastern portion of the plan area does not have significant numbers of RHNA inventoried sites due to limited in-fill and vacant land opportunities, the area allows for Accessory Dwelling Units and streamlines ADU development under the city’s ADU ordinance.

Program Considerations:
• Target the production of at least 15 lower income units on parcels located in Census Tracts 1103.01 within the Downtown area.
• Target increased affordable ADU production in Census Tracts 1102.02, 1102.01, 1101.02, and 1101.01.

Table E-22: AB 686 Planning Area 4: Northeast
Census
Tract
Census
Block
group
Hispanic/Latino NonWhite
Low/Mod
Income
RHNA
Lower
Income
RHNA
Moderate
RHNA
Above
Moderate
RHNA
Total
1102.00
1 79.0% 84.2% 64.4% 0 1 2 3
4 76.0% 84.9% 63.6% 0 0 2 2
1103.00 3 88.4% 91.6% 84.9% 15 31 69 115
1105.01 1 84.8% 89.3% 72.2% 0 7 10 17
1105.02
2 83.2% 88.0% 81.0% 0 0 0 0
3 88.3% 91.7% 76.8% 0 3 10 13
Total 15 42 93 150
Supportive Citywide Spatial Analysis to Inform AB 686 Plan Area Analysis Figures E-26 through E-32 below identify the sites to accommodate future housing, as identified in the adequate sites analysis and overlaid on demographic and fair housing data using AFFH data layers. The layers show segregation and integration and access to opportunity patterns throughout the City and are provided through HCD’s AFFH data and mapping resources. Note that this analysis is inclusive of the ADU units that are projected to be built during the 6th Cycle:
• Figure E-26: Watsonville Proposed RHNA Sites by Percent Hispanic Population, 2020 • Figure E-27: Watsonville Proposed RHNA Sites by Percent Non-White Population, 2020 • Figure E-28: Watsonville Proposed RHNA Sites by Low- and Moderate-Income Population, ACS, 2011-2015
• Figure E-29: Watsonville Proposed RHNA Sites by R/ECAP • Figure E-30: Watsonville Proposed RHNA Sites by RCAA
• Figure E-31: Watsonville Proposed RHNA Sites by TCAC Areas of Opportunity • Figure E-32: Watsonville Proposed RHNA Sites by Urban Displacement Typology

Appendix E: Fair Housing Analysis E-72
Figure E-26 shows the proposed candidate sites to meet the RHNA for Watsonville in relation to the location of residents of Hispanic origin. These sites take into consideration access to vital goods, services, and public transportation and are therefore ideal areas for the City to focus much of its future housing growth. It is anticipated that accessory dwelling unit (ADU) growth, including growth for affordable ADUs, will occur in the less dense areas of the community. Figure E-26 shows the following findings:
• 7 proposed sites to accommodate the RHNA allocation (totaling 101 potential units, or 3.7 percent of the total potential units) are located within block groups that have a percentage of the population that identifies as Hispanic between 60 and 80 percent. Of those units, 29 are proposed as affordable to low and very low incomes.
• 73 proposed sites to accommodate the RHNA allocation (totaling 2,545 potential units, or 96.3 percent of the total potential units) are located within block groups that have a percentage of the population that identifies as Hispanic over 80 percent. Of those units, 545 are proposed to low and very low incomes.
• No units are proposed within block groups that have a percentage of the population that identifies as Hispanic less than 60 percent, however there are no block groups characterized as such in the City.

Figure E-26 shows that approximately 2,643 units, or 100 percent of all projected housing units, are within areas of the City where a strong majority (over 60 percent) of the population identifies as Hispanic. These projected units include approximately 574 lower income units, or 100 percent of all proposed lower income units. Although concentrating housing in areas with high Hispanic majorities has the potential to overburden these communities, the whole City population predominantly identifies as Hispanic. Figure E26 illustrates this, as there is no area within the City’s boundaries that holds a Hispanic population lower than 60 percent. By placing more affordable housing in predominantly Hispanic communities, housing issues such as overcrowding, overpayment, and lack of housing options can be alleviated where they are felt most.

Additionally, the data shows that the proposed candidate sites to meet the RHNA allocation are dispersed throughout the community with an emphasis on locating units where there is a high level of access to important public services and transit. Overall, the distribution of potential units does not disproportionately impact areas with larger concentrations of the Hispanic population.

Appendix E: Fair Housing Analysis E-73
Figure E-26: Watsonville Proposed RHNA Sites by Percent Hispanic Population, 2020

Appendix E: Fair Housing Analysis E-74
Figure E-27 shows the proposed candidate sites to meet the RHNA for Watsonville in relation to the location of residents who identify as Non-White. Figure E-27 shows the following findings:
• 2 proposed sites to accommodate RHNA allocation (totaling 7 potential units, or 0.2 percent of the total potential units) are located within block groups that have a percentage of the population that identifies as Non-White between 60 and 80 percent. Of those units, none are proposed as affordable to low and very low incomes.
• 77 proposed sites to accommodate RHNA allocation (totaling 2,628 potential units, or 99.8 percent of the total potential units) are located within block groups that have a percentage of the population that identifies as Non-White above 80 percent. Of those units, 574 are proposed as affordable to low and very low incomes.
• No units are proposed sites within block groups that have a percentage of the population that identifies as Non-White less than 60 percent, however there are no block groups characterized as such in the City.

Figure E-27 shows that approximately 2,737 units, or 99.8 percent of all projected housing units, are within areas of the City where a strong majority (over 80 percent) of the population identifies as Non-White.

These projected units include approximately 574 lower income units, or 100 percent of all proposed lower income units. Although concentrating housing in areas with high Hispanic majorities has the potential to overburden these communities, the whole City population predominantly identifies as Hispanic. Figure E26 illustrates this, as there is no area within the City’s boundaries that holds a Hispanic population lower than 60 percent. By placing more affordable housing in predominantly Hispanic communities, housing issues such as overcrowding, overpayment, and lack of housing options can be alleviated where they are felt most.

The remaining 7 units, or 0.2 percent of all housing units, are in areas where the Non-White proportion of the population ranges from 60-80 percent. Of these units, there are no low-income units that are projected for these areas. There are no census tracts in the City that are characterized by White predominance, as all within city boundaries are at least 60 percent Non-White or higher. Therefore, NonWhite communities would not be overburdened by the distribution of the proposed housing units since all census tracts in the City are majority Non-White.

Appendix E: Fair Housing Analysis E-75
Figure E-27: Watsonville Proposed RHNA Sites by Percent Non-White Population, 2020

Appendix E: Fair Housing Analysis E-76
Figure E-28 shows locations of proposed candidate sites to meet the RHNA for Watsonville in comparison with census data showing the percentage of the population within each block group who is categorized as low income or moderate income by the American Community Survey. Figure E-28 shows the following:
• One proposed site to accommodate the RHNA allocation (totaling 101 potential units, or 3.7 percent of the total potential units) is located within block groups that have a percentage of the population that identifies as low- and moderate-income below 50 percent. Of those units, 29 are proposed as affordable to low and very low incomes.
• 28 proposed sites to accommodate the RHNA allocation (totaling 492 potential units, or 18.5 percent of the total potential units) are located within block groups that have a percentage of the population that identifies as low- and moderate-income between 65-80 percent. Of those units, 86 are proposed as affordable to low and very low incomes. • 51 proposed sites to accommodate the RHNA allocation (totaling 2,151 potential units, or 77.8 percent of the total potential units) are located within block groups that have a percentage of the population that identifies as low- and moderate-income above 80 percent. Of those units, 459 are proposed as affordable to low and very low incomes.

Figure E-28 shows that approximately 2,537 units, or 96.3 percent of all projected housing units, are within areas of the City where a majority (over 50 percent) of the population identifies as low- to moderateincome households. These projected units include approximately 545 lower income units, or 94.9 percent of all proposed lower income units. Although concentrating housing in areas with high low- to moderateincome majorities has the potential to overburden these communities, the whole City population predominantly identifies as this demographic. By placing more affordable housing in areas predominantly comprised of low- to moderate-income households, housing issues such as overcrowding, overpayment, and lack of housing options can be alleviated where they are felt most.

The remaining 101 units, or 3.7 percent of all housing units, are in areas where the low- to moderateincome proportion of the population is below 50 percent. Of these units, there are 29 low-income units that are projected for these areas. There are no census tracts in the City that are characterized by high affluence, as all census tracts within City boundaries are considered low resource, supported by Figure E31. Additionally, allowing lower income units to be developed in areas with a smaller concentration of low- to moderate-income households can diversify the socioeconomic demographics across the City.

Therefore, low- to moderate-income communities would not be overburdened by the distribution of the proposed housing units since all census tracts in the City are majority low resource.

Appendix E: Fair Housing Analysis E-77
Figure E-28: Watsonville Proposed RHNA Sites by Low- and Moderate-Income Population, ACS, 2011-2015

Appendix E: Fair Housing Analysis E-78
Figures E-29 through Figure E-32 displays the sites identified to accommodate the City’s RHNA within HCD AFFH opportunity maps.

Figure E-29 shows proposed sites to meet RHNA for Watsonville in relation to data showing R/ECAP areas within the City. R/ECAPs are racially or ethnically concentrated areas of poverty, marked with red hatchings. The goal of the AB 686 analysis is to analyze how the sites identified to accommodate the RHNA allocation may exacerbate or mitigate existing fair housing issues. Figure E-31 shows the following:
• All 76 proposed sites to accommodate the RHNA allocation (totaling 2,634 potential units, or 100 percent of the total potential units) are not located in R/ECAPs. Of those units, 574 are proposed as affordable to low and very low incomes.
• There are no R/ECAPs currently existing within the City. As a result, there are no proposed sites located within any R/ECAP areas.

In the City of Watsonville, the AFFH opportunity maps indicated that there are no racially or ethnically concentrated areas of poverty within the City’s boundaries. As such, all 2,634 potential units are within areas of the City that are not characterized by R/ECAPs. Additionally, 574 lower income units, or 100 percent of all lower income units are proposed in these census tracts. By proposing the majority of lower income units throughout the City, income and racial/ethnic segregation will remain minimized and would benefit many lower income households by giving them greater mobility to live in various areas of the City.

Figure E-30 shows proposed candidate sites to meet RHNA for Watsonville in relation to data showing RCAA areas within the City. RCAAs are racially or ethnically concentrated areas of affluence; they are identified as areas with a White Non-Hispanic population greater than 80 percent and a median household income greater than $125,000.

There are no block groups identified as RCAAs with a White Non-Hispanic population greater than 80 percent in the City.

Appendix E: Fair Housing Analysis E-79
Figure E-29: Watsonville Proposed RHNA Sites by R/ECAP, ACS 2009-2013

Appendix E: Fair Housing Analysis E-80
Figure E-30: Watsonville Proposed RHNA Sites by RCAA, ACS 2015-2019

Appendix E: Fair Housing Analysis E-81
Figure E-31 shows proposed candidate sites to meet RHNA for Watsonville in relation to the TCAC/HCD Opportunity areas within the City. TCAC/HCD Opportunity Area Maps show how resources are spatially distributed throughout the City.
• The City of Watsonville is a low resource city, and the City as a whole is ranked as the low resource level. Therefore, all proposed sites to accommodate RHNA (totaling 2,634 potential units, or 100 percent of the total potential units) are located in Low Resource areas. Of those units, 574 are proposed as affordable to low and very low income households. • There are no areas of the City characterized as Moderate, High, or Highest Resource; additionally, there are no High Segregation and Poverty areas. Therefore, no units are proposed in these resource categories.

Figure E-31 Shows that all 2,634 units, or 100 percent of all projected housing units, are within areas of the City characterized by low opportunity. This would typically pose an issue, however the entire City is characterized as a Low Resource community. Thus, while the proposed units may have the potential to overburden the respective census tracts they are on, building lower-, moderate-, and above moderateincome housing in neighborhoods that are relatively lower resource would act as a place-based strategy to revitalize the community. Increased numbers of households with ranges of incomes would increase the median income of each census tract and would further integrate each tract in regard to income. As a result, more interest in future resource development and investment in these communities could occur.

Appendix E: Fair Housing Analysis E-82
Figure E-31: Watsonville Proposed RHNA Sites by TCAC Areas of Opportunity, 2022

Appendix E: Fair Housing Analysis E-83
Figure E-32 show the proposed candidate sites to meet the RHNA for Watsonville in relation to urban displacement data identifying areas at-risk or currently experiencing displacement within the City as categorized by the UDP. Figure E-32 demonstrates the following findings. • 5 proposed sites to accommodate the RHNA allocation (totaling 137 potential units, or 5 percent of the total potential units) are located within block groups that have two displaced income groups. 18 of those units are affordable to lower income households. • 40 proposed sites to accommodate the RHNA allocation (totaling 1,642 potential units, or 59.4 percent of the total potential units) are located within block groups that have one displaced income group. 245 of those units are affordable to lower income households. • 31 proposed sites to accommodate the RHNA allocation (totaling 959 potential units, or 35.4 percent of the total potential units) are located within block groups that are at risk of displacement. 311 of those units are affordable to lower income households. • 4 proposed sites to accommodate the RHNA allocation (totaling 6 potential units, or 0.2 percent of the total potential units) are located within block groups that have lower displacement risk.

None of those units are affordable to lower income households.

The data shows that the proposed candidate sites to meet the RHNA allocation are evenly dispersed throughout the community with an emphasis on locating affordable units where displacement, exclusivity, or gentrification are not occurring. There are a number of low- and very low-income sites located in areas that have displacement risk. The placement of lower income housing within these areas of the City will provide increased affordable housing opportunities to mitigate the risk of displacement and gentrification as well as to decrease the instances of displacement that are currently occurring. Additionally, the majority of the City’s lower income housing sites are designated to be in mixed-income developments which will not lead to the exacerbation of any concentrations of lower income populations within the City.

Appendix E: Fair Housing Analysis E-84
Figure E-32: Watsonville Proposed RHNA Sites by Urban Displacement Typology, 2022

Appendix E: Fair Housing Analysis E-85
It should be noted that the concentration of low- and very low-income sites located in the central region of the City as depicted in Figures E-29 through E-32 above, are designated to be mixed income and would provide housing opportunities for both lower income households and moderate to above-moderate income households. Thus, the concentration of low- and very low-income sites located in the central region of the City would not exacerbate the current conditions in this area.

Integration and Segregation
The City of Watsonville is predominantly Non-White with high concentrations of Non-White residents throughout all census tracts in the City. The sites inventory distributes the sites largely throughout the greater central region of the City. While all the sites are located in predominantly Non-White areas, it is only due to the City being majority (over 60 percent) Non-White in each census tract. There are a significant number of low-, very low-, moderate-, and above moderate-income sites located throughout the City’s greater central region. These sites accommodate increased housing opportunity for all income levels and would not exacerbate the concentrations of Non-White households.

Access to Opportunity
The entire City is considered low resource according to the TCAC Opportunity Map composite score. Thus, while the sites selected in the sites inventory are located in low resource areas, they are not disproportionately located in these areas in the context of the resource level of the City as a whole.

Transit
According to AllTransit the City of Watsonville has a moderate transit performance score. The City has identified a significant number of lower income sites within the Downtown Watsonville Specific Plan area which encompasses land along the major east/west and north/south corridors. These major corridors intersect in the central region of the City. The City’s central region is adjacent to a public transit network that is more accessible than in other portions of the City. Households located within the greater central region have better access to jobs and key destinations through transit than those located in the outer portions of the City. The majority of the low- and very low-income sites were strategically located within the Downtown Watsonville Specific Plan area and throughout the greater central region to take advantage of the current transportation assets in these areas.

Education
The TCAC/HCD Opportunity Area Maps include education data representing the success of positive education outcomes determined by the following indicators: math proficiency, reading proficiency, high school graduation rate, and student poverty rate. These indicators are understood to reflect the quality of a census tract’s schools as well as the conditions of the students’ neighborhoods. The majority of the City is considered to have low success in positive education outcomes, with higher instances of low positive education outcomes across the City.

In addition, the U.S. Department of Education provides financial assistance through Title I of the Elementary and Secondary Education Act to schools with high numbers or percentages of children from low-income families to help ensure that all children meet challenging state academic standards. The City of Watsonville has a total of 16 elementary, middle, and high schools of which 13 are designated as Title I schools. The City’s 13 Title I schools serve a total of 19,477 students, making Pajaro Unified School District one of the largest school districts in Northern California.

Appendix E: Fair Housing Analysis E-86
Lower income and moderate to above moderate-income sites were distributed largely throughout the greater central region of the City to provide opportunity for households to access a variety of schools in Watsonville. A significant number of the lower income sites located around the central region of the City are designated as mixed income. The distribution of these sites may contribute to the success of positive educational outcomes throughout the City as studies have shown that attending low-poverty and economically integrated schools boosts educational achievement for low-income students.

Disproportionate Housing Needs
Income
The greater central region of the City has a high percentage of lower income households. The sites inventory accommodates a number of lower income sites throughout this region of City as there is a high level of access to important public services and transit. The potential low- and very low-income sites within the central region will provide increased affordable housing opportunities where there are high rates of low-income residents. Additionally, there are a number of moderate- and above moderateincome sites located throughout the greater central region of the City as well to prevent exacerbating the concentrations of lower income households.

Overpayment
Watsonville’s households experience moderate to high rates of overpayment throughout the City as a whole. Homeowners in the central, southern, and eastern regions of the City experience higher rates of overpayment, and renters in the greater central region and to the south and east experience the highest rates of overpayment. Site selection emphasized infill and redevelopment throughout the Downtown Watsonville Specific Plan area to leverage existing zoned capacity, as well as to encourage residential development along corridors with access to public services and transit amenities. Housing located in these mixed-use areas with higher density allowances will facilitate more affordable units though mixed income development. The lower income sites associated with mixed income development throughout the City will provide access to supportive services such as job opportunities and transit amenities. Additionally, the placement of the lower income sites will ensure that there are affordable housing options in geographical areas that experience high rates of overpayment and may be susceptible to displacement.

Overcrowding
Some census tracts in the greater central region, along with some in the northeastern and southern regions of Watsonville experience high rates of overcrowding; and the downtown area and the southern region of the City experiences the highest rates of severe overcrowding, along with parts of the northeastern region near the airport area. The placement of lower income and moderate- to above moderate-income sites within the central area will provide the opportunity for additional housing at all income levels to alleviate the impacts of overcrowding.

Appendix E: Fair Housing Analysis E-87

2. Assessment of Contributing Factors to Fair Housing in Watsonville Summary of Fair Housing Analysis
The analysis conducted in this section regarding fair housing within Watsonville produced the following conclusions:
• There are not any racially or ethnically concentrated areas of poverty (R/ECAPs) or racially concentrated areas of affluence (RCAAs) within Watsonville as identified by HUD. This indicates that no census tracts within the City have a Non-White population of 50 percent or more or any census tracts that have a poverty rate that exceeds 40 percent or is three or more times the average tract poverty rate for the metropolitan area. Additionally, this also means there are no census tracts in Watsonville that have a White population 1.25 times higher than the average percentage of total White population in the given COG region, and their median income does not exceed 1.5 times the COG AMI.
• The UC Berkeley Regional Opportunity Index shows that the majority of residents within Watsonville have a low level of access to opportunity throughout the City. Additionally, analysis of the TCAC/HCD Opportunity Area Maps show that all census tracts in Watsonville are classified with the “Low Resource” designation. This indicates that these census tracts lack essential mobility, retail/food, economic, housing, or civic resource that may promote upward mobility and result in healthier neighborhoods.
• The City provides moderate transit trip opportunity. Additionally, about 98 percent of all city jobs are within ½ mile of transit but just under 2 percent of the working population uses public transit as a primary source of transportation.
• The City has demonstrated the ability to meet the anticipated future affordable housing needs of the community through the designation of sites to meet the very low and low income RHNA need (Appendix F: Sites Analysis). These sites are dispersed throughout the community. • There are no current units with affordable covenants at risk of converting to market rate before 2033 in the City.
• The CalEnviroScreen mapping tool (2018) identified most of the City as moderate to high scoring, indicating high pollution levels in the City.

Key Findings from Fair Housing Analysis
As a part of the Housing Element, the City considers protected class (such as race, ethnicity, income, etc.) and opportunity indicators as key factors in fair housing. Federal, state, and local data provide regional context, background information and supportive data which helps the City to understand fair housing issues and to identify key fair housing factors for Watsonville. The section below uses available data to identify key trends and local contributing factors for fair housing, key themes identified through this analysis are stated below:
• Persons who identify as Non-White contribute to a large majority of Watsonville’s population, with no R/ECAPs or RCAAs being found in any part of the City. Additionally, there is a strong concentration of persons who identify as Hispanic in the City.

Appendix E: Fair Housing Analysis E-88
• Watsonville is identified as having poor air quality throughout the City, as each census tract located in the City ranked at the 65th percentile or higher in the 2018 CalEnviroScreen. • About 98 percent of jobs in Watsonville are accessible through public transit; and 99 percent of residents live near public transit resources. However, only about 2 percent of residents use public transit to get to work.

3. Analysis of Fair Housing Priorities and Goals
To enhance mobility and promote inclusion for protected classes, the chief strategy included in this Housing Element is to provide sites suitable for affordable housing in high-resource, high opportunity areas, as demonstrated by the analysis of the housing resource sites contained in Appendix C: Housing Resources. Other programs that affirmatively further fair housing include:
• Program A.3: Preservation of Affordable Housing
• Program A.4: Mobile Home Park Conservation Ordinance
• Program A.5: Replacement Housing
• Program B.1: First Time Buyer Loans
• Program B.2: Down Payment Assistance Loans
• Program B.3 Housing Choice Voucher (HCV) Rental Assistance • Program B.4: Relocation Assistance Ordinance
• Program B.7: Promotion of Resources for Large Households • Program B.8: Promotion of Resources for Female-Headed Households • Program C.1: Adequate Sites Program
• Program C.2: Explore Additional Residential Opportunity on Commercial Sites • Program C.4: Affordable Housing Ordinance
• Program C.5: Partnership with Non-Profit Housing Agencies • Program C.6: Encourage Mixed-Use Development Opportunity in Commercial Areas • Program C.7: Transitional Housing and Emergency Shelters • Program C.8: Supportive Housing
• Program C.9: Low-Barrier Navigation Centers
• Program D.1: Density Bonus Ordinance
• Program D.4: Accessory Dwelling Units
• Program D.5: Reasonable Accommodations
• Program D.6: Definition of Family
• Program D.7: Development Constraints for Affordable Housing • Program D.9: Update to Allow Residential Care Facilities of 7 or More Persons • Program E.1: Fair Housing Program
• Program E.2: Housing for Persons with Physical Disabilities • Program E.3: Housing for Persons with Developmental Disabilities • Program E.4: Affirmatively Further Fair Housing
• Program E.6: Farmworker and Workforce Housing

APPENDIX F Element Update SITES ANALYSIS

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Appendix F: Sites Analysis F-1
Adequate Sites Analysis
The Housing Element is required pursuant to Government Code Section 65583.2 to include an inventory of parcels (or sites) suitable for residential development to accommodate the Regional Housing Needs Allocation (RHNA) for all income levels, as shown in Table F-1.

Table F-1: City of Watsonville 6th Cycle RHNA by Income Category Income Category Percent of Area Median Income (AMI) RHNA Units Very Low-Income 0-50% AMI 283
Low-Income 51-80% AMI 186
Moderate-Income 81-120% AMI 521
Above Moderate-Income >120% AMI 1,063
TOTAL RHNA 2,053
Source: AMBAG Final 6th Cycle Regional Housing Needs Allocation Plan 2023-2031 Figure F-1 depicts the sites identified to accommodate the City of Watsonville’s RHNA for the 2023-2031 planning period shown in Table F-1 above and their projected capacity. These include projects currently in the pipeline. Sites being identified include ones unused in the prior 5 th Cycle, residentially zoned sites
that are vacant, infill opportunities, and sites identified for rezoning to higher density residential use. A summary of the site inventory is provided in Table F-2.

Appendix F: Sites Analysis F-2
Table F-2: Summary of RHNA Status and Sites Inventory
Lower Income Moderate
Income
Above
Moderate
Income
Total
2023-2031 RHNA 469 521 1,063 2,053
Sites Available
Projects in the Pipeline 127 70 315 512
Projected Accessory Dwelling Units
Production 92 46 46 184
5th Cycle Sites 0 27 47 74
Existing Zoning on Vacant Sites 0 2 8 10
Downtown Watsonville Specific Plan 323 465 1,070 1,858
Vacant Parcels 26 44 106 176
Nonvacant/Infill Parcels 297 421 964 1,692
Total Potential Development Capacity 543 609 1,486 2,638 Remaining RHNA -- -- -- --
Sites Surplus/Shortfall (+/-) 73 88 423 584
Percentage Buffer 16% 17% 40% 28%

Appendix F: Sites Analysis F-3
Figure F-1: 6th Cycle Sites Inventory – Map of All Sites

Appendix F: Sites Analysis F-4
A. General Residential Development Trends
Watsonville is a mostly built-out city with limited vacant land opportunities outside of its environmentally constrained areas. The City also has an Urban Limit Line, which restricts urban development from expanding into designated agricultural, open space and coastal areas. Therefore, future development will generally occur in areas that are currently developed. Following development and community interest, the City is focusing its 6th cycle candidate sites in areas that are considered to have the highest likelihood of redevelopment potential. The goal is to continue providing property owners and developers with additional opportunities to maximize use of their properties and create new residential opportunities with access to various resources.

The City’s Affordable Housing Ordinance has been utilized in the development of affordable units and is a significant contributor the construction of affordable housing units citywide. Density bonus incentives have also resulted in the development of additional units beyond what the City’s density limits allow.

Additional details on both the Affordable Housing Ordinance and the Density Bonus Ordinance are provided in Appendix D.

Accessory Dwelling Unit and Junior Accessory Dwelling Unit (ADU and JADU, referred to hereon as ADU) construction in the City has increased in recent years and City staff continue to receive inquiries and applications. From the City APR data, a large of majority of the ADU construction has been determined to accommodate lower income households. Analysis of ADU development is provided in Section 2.1 of this Appendix.

Sites identified as part of this Housing Sites Inventory are in areas of the City that are adequately served by existing and planned infrastructure. This includes public services for developments that accommodate housing units affordable to lower-income households.

As described in Appendix D, the City of Watsonville is responsible for ensuring an adequate water supply to account for future water demand requirements. This is to accommodate the additional housing development needed to meet City’s RHNA requirements through the 6th planning cycle. In addition to water supply, the City will ensure that other public services are available for future housing units to make certain adequate housing is provided for all affordability levels in the City.

B. Summary of Sites to Accommodate 2023-2031 RHNA
To accommodate the City’s 2023-2031 RHNA, a comprehensive review of opportunities was evaluated.

The following types of sites have been identified:
• Projects in the Pipeline: These sites have been identified per developers’ applications to the City.

The types of projects being considered as opportunity sites are: projects that have received grant funding, projects that have received Planning pre-application letters, projects that have approved Planning entitlements, projects that have applied for building permits but are awaiting building permit issuance, projects that have received building permits, and projects that are under construction but will not receive certificates of occupancy before the beginning of the Planning Period.

Appendix F: Sites Analysis F-5
• Accessory Dwelling Units: These sites are units projected to be developed in the next eight years based on past performance of ADU development in the City. Evidence of past performance has been mapped in Figure F-3 and the methodology for its projection described below. • 5
th Cycle Housing Element Sites: These sites are parcels identified in the previous cycle Housing Element that have not yet been developed.
• Downtown Watsonville Specific Plan (DWSP): These sites are located within the Downtown Watsonville Specific Plan area. The list does not include all parcels located within the DWSP area.

For the 6
th Cycle Housing Element site selection inventory, staff selected vacant and nonvacant parcels with the highest likelihood of development and redevelopment within the planning period.
• Existing Vacant Residential Land: These sites consist of vacant land that is currently zoned for residential development in the City. These sites are consistent with the existing policies and procedures already in place through the City’s Zoning Code and allow residential development byright. • Future Housing Opportunity Sites: These sites do not count toward the 6th Cycle RHNA allocation but are considered for additional future development opportunity. These sites consist of parcels that can be used for residential development through SB 6 and AB 2011.

1. Projects in the Pipeline
“Projects in the Pipeline” are defined as projects that: have received grant funding, have received Planning pre-application letters, have active Planning entitlement applications, have received approval of planning entitlements, have submitted for building permits that have not yet been approved, have received building permits, or are under construction but will not receive certificates of occupancy until after the beginning of the Planning Period. As shown in Table F-3 and Figure F-2, there are currently eight projects in the pipeline that will provide additional residential units that will contribute towards meeting the City’s 6 th Cycle RHNA obligations. Projects range from single-family to large-scale mixed-use developments with multi-family units. All but one of these projects include required affordable units that are deed restricted pursuant to the City’s Affordable Housing Ordinance, and/or as part of the Density Bonus Ordinance. The Affordable Housing Ordinance codified in Chapter 14-46 of the Watsonville Municipal Code defines the “Watsonville median income limit” at 70 percent of the Santa Cruz County median income limit. The City’s adjustment does not match the state or federal income category names. All Watsonville median income categories would be the lower income threshold under the Santa Cruz County AMI.

Table F-3: Projects in the Pipeline
Very Low/Low Moderate Above
Moderate Total
Projects in the Pipeline Sites 127 70 315 512

Appendix F: Sites Analysis F-6
Table F-4: Projects in The Pipeline
Project
Name Locations Project Description Status
Method to
Determine
Affordability
Density
Units by Income Level
Very Total
Low/Low Moderate Above Moderate
Approved Projects1
AB 2011
Mixed Use
Project
335-347
Rodriguez
Street
The project involves the
construction of 150
dwelling units, mixed use
and mixed income
development on a 1.3-acre
site. This project intends to
invoke the provisions
allowed by AB 2011
Preapplication
letter send
05/19/2023.

Formal
application
in process.

Inclusionary
Ordinance
(20%)
115.3
du/net
acre
30 37 83 150
Metro
Affordable
Housing
Project
475
Rodriguez
Street
The project involves the
construction of 60 100%
affordable housing units on
a 0.94-acre site.

Grant
funding
awarded.

Working on
designs for
formal
entitlement
application.

Inclusionary
Ordinance
(20%)

63.8 du/net
acre
60 - - 60
Hillcrest
Estates
511
Ohlone
Parkway
The project involves the
construction of 144
dwelling units on individual
parcels, consisting of 5
single-family units, 63
duplex-style townhome
units and 76 row-style
townhome units on a 13±
acre site located at 511
Ohlone Parkway (APNs 018-
372-14 and 018-381-01
Under
construction.

Inclusionary
Ordinance
(20%)

16.8 du/net
acre
8 21 115 144
Sunshine
Gardens
1777
Santa
Victoria
Avenue
The project involves the
construction of 87
townhomes on a 6.87-acre
Under
construction.

Inclusionary
Ord. (20%)

21.75 du/net
acre
5 12 70 87

Appendix F: Sites Analysis F-7
Table F-4: Projects in The Pipeline
Project
Name Locations Project Description Status
Method to
Determine
Affordability
Density
Units by Income Level
Very Total
Low/Low Moderate Above Moderate
site at 1777 Santa Victoria
Avenue (APN 018-583-18).

The
Residence
at 558 Main
Street
558 Main
Street
The Project involves the
construction of a 4-story
mixed use development of
50 dwelling units on a 0.75-
acre lot. The proposed
building is 65,677 sf in area
with a 1,950-sf commercial
space on the ground floor
(for a restaurant) and
podium parking and access
drive to the rear. The upper
three floors would consist
of 15 studio, 29 onebedroom and 6 twobedroom units. The second floor would also have an
outdoor courtyard and
multipurpose lounge room.

Entitlements
approved.

Affordable
Housing
Agreement
approved on
11/14/2023.

Building
Permit
Application
under
review.

Inclusionary
Ord. (20%)

67.1 du/net
acre
10 0 40 50
3 Townhomes
at 230
Riverside Dr
230
Riverside
Drive
The project involves the
construction of three
townhomes on a 0.2-acre
site at 230 East Riverside
Drive (SR 129) (APN 017-
271-30). The proposed units
range in size from 1,975±
square feet in floor area
(for Units 1 and 3) to 2,506±
square feet (for Unit 2).

Each dwelling unit would
Building
Permit
application
under
review.

Inclusionary
Ord.

15.4 du/ net
acre
- 0 3 3

Appendix F: Sites Analysis F-8
Table F-4: Projects in The Pipeline
Project
Name Locations Project Description Status
Method to
Determine
Affordability
Density
Units by Income Level
Very Total
Low/Low Moderate Above Moderate
have three bedrooms and a
two-car garage.

Pending Projects2
Evan Circle3 120 Evan
Circle
The project involves the
construction of 5 sfds with
attached ADUs, 1 affordable
unit
Developer
Interest
through Preapplication
letter
- - 1 0 4 5
36 Airport4
36 Airport
Blvd
The project involves the
construction of 13 attached
sfds for habitat for
humanity
Entitlement
application
under
review.
- - 13 0 0 13
Total Units 127 70 315 512
Notes:
1 Approved projects are projects that have been entitled and will be constructed in the Planning Period beginning January 1st, 2024. 2 Pending projects are projects that have yet to get approval from the City but are in the process of approval and will be potentially constructed in the future Planning Period beginning January 1st, 2024.
3 This project has had developer interest through a pre-application letter. 4 This project has recorded Development Agreement that requires Habitat for Humanity to construct owner-occupied affordable single-family units and to sell them at an affordable sales prices.

Appendix F: Sites Analysis F-9
Figure F-2: Map of Pipeline Projects

Appendix F: Sites Analysis F-10

2. Accessory Dwelling Units
The City of Watsonville has been active in promoting and permitting the development of Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) in the City. This includes efforts to incentivize ADUs and a streamlined review process. These efforts, in addition to State mandates, are anticipated to further increase ADU production.

HCD has supported the Association of Monterey Bay Area Governments (AMBAG) methodology for estimating future development of ADUs based on the yearly average number of ADUs constructed. As shown in Table F-5, the City has almost doubled ADU production between 2020 and 2022. Based on a three-year average of 23 ADU’s constructed, it is projected that an additional 184 ADUs will be developed during the 2023-3031 period. As shown in Figure F-3, ADUs constructed from 2020-2022 are distributed throughout a majority of residential neighborhoodsin the City. Based on this historic distribution pattern, it is projected that the 184 ADUs constructed in the 2023-2031 period will be located in similar areas outside of the Downtown Watsonville Specific Plan (DWSP) area. By providing housing options in the lowand medium-density residential zones across the City, ADUs will complement the higher density multifamily residential development envisioned for the sites identified for the site analysis.

Table F-5: Past Performance and Projection of ADU Development Year ADU Permitted and Projected
2018 4
2019 10
2020 18
2021 33
2022 30
2023 43
Annual Projection 23 ADUs per Year
2024 23
2025 23
2026 23
2027 23
2028 23
2029 23
2030 23
2031 23
Projection Period Total 184
*Based on the number of applications submitted and reported in the 2022 APR.

Appendix F: Sites Analysis F-11
Figure F-3: Map of ADUs Constructed, 2020-2022

Appendix F: Sites Analysis F-12
Methodology to Estimate ADU Affordability
For determining the affordability of ADUs, the Association of Monterey Bay Area Governments (AMBAG) does not have their own methodology to determine ADU affordability. Thus, the City did the following steps to create a realistic assumption of ADUs to be developed:

1. Calculate amount of ADUs with certificate of occupancy in the last three years per City APR data.

2. Calculate amount of ADUs with certificate of occupancy per affordability level in the City’s APR data.

3. Use ADU total per income category to determine proportion of ADUs within each affordability level.

4. Create assumptions of income category proportions based on City trends.

Using this method, Table F-6 shows estimated ADU projections for Watsonville by income category.

Table F-6: ADU Projection by Income Category
Income Category Percentage Units
Low- and Very Low-Income 50% 92 units
Moderate-Income 25% 46 units
Above Moderate-Income 25% 46 units
Total 184 units

3. 5
th Cycle Housing Element Sites
5 th Cycle Housing Element Sites, also known as reuse sites, are parcels that have been identified in the previous Housing Element Cycle. Parcels identified as sites from the previous Element may be selected for this cycle, however nonvacant sites identified in a prior housing element or vacant sites included in two or more consecutive planning periods that were not developed with housing and that are being used to provide capacity to meet the City’s lower income RHNA have to be zoned to allow for by-right processing of projects that include20 percent or more of the units affordable to lower income households.

The City has included sites from the 5th Cycle to accommodate a total of 74 moderate and above moderate units to meet the 2023-2031 RHNA. No reuse sites are being utilized to provide capacity to meet the City’s lower income RHNA.

Table F-7: 5th Cycle Housing Element Sites
Very Low/Low Moderate Above
Moderate Total
5th Cycle Housing Element Sites 0 27 47 74

Appendix F: Sites Analysis F-13
Figure F-4: Map of 5th Cycle Sites

Appendix F: Sites Analysis F-14

4. Downtown Watsonville Specific Plan
The Downtown Watsonville Specific Plan (DWSP) is a policy and regulatory plan to revitalize and redevelop the Downtown area that was adopted in October 2023. The Specific Plan creates a significant amount of residential development and redevelopment opportunity throughout the 6 th Cycle RHNA planning period.

The DWSP establishes new zoning districts, overlays, and development standards and guidelines for future development. Due to the high and increasing demand for residential development and the decline in demand for brick and mortar commercial development, the current market is heavily skewed towards residential development. As stated in the DWSP, a major goal for the downtown area is the facilitation of housing production. A large portion of the downtown area is made up of existing residential neighborhoods, and the City aims to preserve that character and enhance it. The DWSP allocates 3,886 dwelling units to the Specific Plan area, and a total of 345,723 square feet towards commercial and civic uses combined. This indicates that the intent of the plan is to mainly promote residential uses over nonresidential.

The DWSP plan area constitutes 195.5 acres of Downtown Watsonville, centered on Main Street and extending west to the edge of existing neighborhoods and the industrial district, south to the community of Pajaro, and several blocks east to the existing neighborhoods. The DWSP vision is intended to achieve the following objectives:
• Facilitation of housing production and preservation;
• Increased retail entertainment activity;
• Encouragement for higher-density mixed-use residential projects; • Added visitor-oriented uses;
• Support for greater range of civic and cultural activities; • Improve the safety and comfort of pedestrians; and
• Enhanced bicycle infrastructure and connections.

The Downtown area currently contains a mix of commercial buildings, public facilities, established residential neighborhoods, newer mixed-use buildings, and institutional buildings and uses. Existing public facilities include: City Hall, Watsonville Public Library, Santa Cruz County Courthouse, City Plaza, City Hall, Watsonville Police Department, Watsonville Fire Department, and Cabrillo College Watsonville Center.

The land use and development standards in the DWSP supersede the land use and development standards in the City’s Zoning Ordinance (Title 14 of the Watsonville Municipal Code) for properties within the DWSP plan area. With the adoption of the DWSP, the Zoning Map was amended to reflect the DWSP plan area, and the Zoning Code was amended to reference the development standards, guidelines, and review processes in the DWSP. This was to, in effect, replace the former zoning for all property within the DWSP plan area. The Regulating Plan in the DWSP established new zones and overlays, which are intended to concentrate urban activity and intensity in the center of downtown. The plan allows transition to existing lower-intensity neighborhood settings at the periphery of the DWSP plan area and to industrial activity to the south. The new zones consist of the Downtown Core and Downtown Neighborhood Zones, which are further described as follows:

Appendix F: Sites Analysis F-15
• The Downtown Core Zone is an active, walkable environment, characterized by buildings up to six 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.
• 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. • 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 will 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. Additionally, standards for new residential development in this zone must be followed.

Since the DWSP’s zoning was inconsistent with the Watsonville 2005 General Plan, the General Plan was amended concurrently with the adoption of the DWSP to ensure consistency between the two documents. The General Plan Amendment involved adding two new mixed-use land use designations and aligning the General Plan Land Use Diagram by changing the existing land use designations of the DWSP plan area to correspond with the zones shown on the Regulating Plan (Figure 6-1 of the DWSP). The two new mixed-use land use designations consist of Downtown Central Core and Downtown Mixed Use, and are further described as follows:
• The Downtown Central Core (Total FAR 3.0, Minimum Commercial FAR 0.15, Maximum Residential Density up to 125 du/acre) 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. This land use designation allows for 100 percent residential use.
• The Downtown Mixed Use (Total FAR 2.0, Maximum Residential Density up to 85 du/acre) 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.

Assumed Capacities for the Downtown Central Core and Downtown Mixed-Use Areas
These areas permit densities of 125 dwelling units per acre (du/acre) and 85 du/acre. To estimate assumed capacity for the 6th Cycle Housing Element planning period, sites deemed to be most likely to develop during the planning period were identified. To determine the estimated densities, a survey of recent development within the DWSP area was conducted to identify trends in actual built densities.

Based on this, the City has determined the densities of recently built projects average approximately 75 to 80 percent of the maximum permitted. This percent average was used to project out development potential on all identified Housing Element opportunity sites. However, due to the majority of identified parcels being infill sites in the Downtown area, only 74 percent of the assumed density will be used to

Appendix F: Sites Analysis F-16
calculate the potential capacity. Additional affordable and market-rate units will be added through density bonus incentives and the City’s Inclusionary Housing Ordinance.

For the purpose of the Housing Element, only the existing capacity is accounted for. This existing capacity includes 1,954 total units with units affordable at all income levels. Table F-8 below provides a breakdown of those units between vacant and nonvacant, infill opportunity sites. The adoption of the DWSP and concurrent General Plan Amendment had the effect of increasing the capacity for residential units, and particularly affordable units, in a 195.5-acre area of downtown Watsonville. Past performance shows that the City has already great success in facilitating higher density and affordable housing developments in the City; the DWSP will continue to further this effort in combination with new commercial resources, employment opportunities, and the creation of new thriving communities.

Table F-8: Downtown Watsonville Specific Plan Unit Capacity Very Low/Low Moderate Above
Moderate Total
Downtown Watsonville Specific Plan 322 465 1,070 1,858
Vacant Parcels 26 44 106 176
Nonvacant/Infill Parcels 297 421 964 1,682

Appendix F: Sites Analysis F-17
Figure F-5: Map of Vacant and Infill Parcels, Watsonville Downtown Specific Plan Area

Appendix F: Sites Analysis F-18

5. Existing Vacant Residential Land
Existing vacant residential land is defined as parcels that do not have any structures or significant improvements.

Table F-9 below shows that an estimated 4 parcels are currently vacant and zoned for residential uses.

The parcels are all in the RM-2 zoning district, which has an existing maximum density of 13.99 dwelling units per acre. Table F-18 provides further breakdown of these sites and their capacity. A development capacity of 80% was applied to these sites located throughout the city. The development capacity is based on the development trends described in this Housing Element. The assumed moderate-income need is 25% of the total RHNA. Due to the limited availability of existing vacant parcels zoned for residential use, and their inability to meet the appropriate affordability requirements, the City selected infill parcels and other parcels that can be redeveloped to accommodate residential uses. As a result, a total of 10 moderate- and above moderate-income units have been identified to accommodate 6th Cycle RHNA goals.

Table F-9: Existing Zoning on Vacant Sites
Very Low/Low Moderate Above
Moderate Total
Existing Vacant Residential Sites 0 2 8 10

Appendix F: Sites Analysis F-19
Figure F-6: Map of Vacant Residential Zoned Sites

Appendix F: Sites Analysis F-20

6. Future Housing Opportunity on Commercial Sites
SB 6 (Caballero, 2022) allows local jurisdictions to consider housing projects proposed on commercially zoned sites that are 20 acres or less where office, retail, or parking are the primary permitted uses. The legislation requires that projects meet certain criteria. In addition, the project may invoke the provisions of SB 35 (Wiener, 2017), State Density Bonus Law (Government Code §65915), and the Housing Accountability Act notwithstanding zoning prohibiting residential use. AB 2011 also allows jurisdictions to consider housing projects proposed on commercially zoned sites with streamlined ministerial review under two scenarios:

1. 100% Affordable Housing Developments in Commercial Zones; and

2. Mixed-Income Housing Developments Along Commercial Corridors Projects invoking AB 2011 (Wicks, 2022) must be located on sites meeting specific criteria and approved projects are subject to skilled labor and prevailing wage requirements.

The City considers future housing opportunity on commercial sites through SB 6 and AB 2011 as a local policy decision for future consideration. The City’s 6
th Cycle RHNA need is met through the provisions of
vacant, nonvacant residential sites, and DWSP sites.

Appendix F: Sites Analysis F-21
Figure F-7: Map of Vacant Commercial Sites

Appendix F: Sites Analysis F-22

7. Suitability of Non-Vacant Sites
The City has limited vacant land resources and, therefore, understands the majority of future housing development opportunity will occur on infill, previously developed properties. Pursuant to Government Code Section 65583.2(g)(2), if the Housing Element utilizes 50 percent or more of its lower income RHNA needs on non-vacant sites, there is a presumption the existing uses are an impediment to additional residential development. To overcome this assumption of an impediment, the Housing Element must provide findings, based on substantial evidence the use(s) will discontinue during the planning period. To demonstrate this substantial evidence, the Housing Element must include the following:
• Findings and supporting factors in the adopting Resolution that non-vacant sites identified in the Sites Inventory are likely to discontinue during the planning period. • Descriptions of the specific findings and evidence supporting the use of non-vacant sites.

To comply with the above requirements, the City has conducted a thorough analysis of sites identified in the inventory to demonstrate their appropriateness to accommodate 6th Cycle RHNA need. The analysis for non-vacant sites takes into consideration the following factors:
• History of development on infill sites
• Current entitlements on infill sites
• Propensity of existing uses to redevelop
• Developer/Investment interest
• Current and future policy commitments
For each of the areas identified above, supportive evidence of past or current development activity within their environs have been identified. Since the City is relying on mainly infill sites to accommodate its future need, the City must demonstrate that these sites are viable and realistic to develop in the planning period.

History of Development on Infill Sites
The City of Watsonville has a strong record of residential development on infill properties. The City has experienced a recent trend in the development of residential development on infill sites. These infill projects have similar features and are in the general vicinity of the City’s identified opportunity sites.

Recently Built and Approved Projects
The City has active entitlements for up to 552 units on infill parcels. Additionally, based on data provided in the City’s Annual Progress Reports (APRs), numerous residential developments have occurred on parcels previously occupied by other uses. The majority of recently built projects were located on sites that allowed 100 percent nonresidential development. In addition, recent market trends show an increase in the construction of residential developments instead of nonresidential uses. As a result, these sites are evidence of following that trend. All (100 percent) recent development projects in mixed-use zones that allow 100 percent nonresidential development have included a residential component. These projects include housing opportunities for a variety of affordability levels, including special needs populations.

Table F-10 provides a summary of recent infill development in Watsonville.

Appendix F: Sites Analysis F-23
Table F-10: Recent Built and Entitled Residential Developments Project Location/Name Site Description and Redevelopment Reasoning Units by Income Category Hillcrest Estates
511 Ohlone Parkway
Site of a former Junkyard, the site had very low land
value with a very high improvement value. The site
was also adjacent to a large number of residential
developments.
• 8 Lower
• 21 Moderate
• 115 Above Moderate
Sunshine Gardens
1777 Santa Victoria
Avenue
Bank owned property, due to being adjacent to a
residential neighborhood and with a high
improvement value, the property began
development for residential units.
• 5 Lower
• 12 Moderate
• 70 Above Moderate
The Residences
558 Main Street
Retail building, last tenant was a retail pharmacy.

Due to the lack of business at the pharmacy, there
was an interest in changing the parcel from
commercial use to residential.
• 10 Lower
• 40 Above Moderate
Townhomes
230 Riverside Drive
Existing commercial business with on-site storage
and commercial vehicle parking. The site itself is
pretty barren, but since it was surrounded by
residential uses, there was developer interest to
develop the said site to residential as well.
• 3 Above Moderate
Sparrow Terrace
141 Miles Lane
Dilapidated residential units, the lack of investment
and need for more affordable housing in the city
spurred the development of this project by MidPen
Housing.
• 72 Lower
Tabasa Gardens
1482 Freedom
Boulevard
Former retail building fronting Freedom Boulevard
and industrial metal building to the rear of the
parcel. Due to both buildings being dilapidated and
the improvement value costing more than the land,
it served as a catalyst for redevelopment from a
nonresidential use to residential.
• 53 lower income Special
Needs
Via Del Mar
120 W. Beach Street
Former commercial property in Downtown area
formerly owned by the Metropolitan Transit District.

With the need for more affordable residential units
accommodating for farmworker families, the
property was redeveloped.
• 40 units for families with
support services
The Terrace
445 Main Street
Commercial retail development along commercial
corridor in the Downtown area. With the
improvement value on the property being much
higher than the land value, it was redeveloped to be
residential units with the first story containing a
commercial component.
• 54 units for-sale
221 Airport Boulevard Former church along Airport Boulevard facing the Watsonville Airport. A nonresidential use, the high
improvement value caused this site to be
redeveloped to a residential use instead.
• 3 Lower
• 4 Moderate
• 42 above moderate

Appendix F: Sites Analysis F-24
To further demonstrate the realistic potential of infill sites in Watsonville, a sample visual summary of the sites identified in Table F-11, above are provided below.

Table F-11: Photographic Summary of Infill Sites
1482 Freedom Boulevard
Before
1482 Freedom Boulevard
After
Tabasa Gardens
511 Ohlone Parkway
Before
511 Ohlone Parkway
After
Hillcrest Estates

Appendix F: Sites Analysis F-25
Table F-11: Photographic Summary of Infill Sites
141 Miles Lane Before
141 Miles Lane After
Sparrow Terrace
120 W. Beach Street
Before
120 W. Beach Street
After

Appendix F: Sites Analysis F-26
Table F-11: Photographic Summary of Infill Sites
558 Main Street Before
558 Main Street After
The Residences
445 Main Street Before
445 Main Street After
The Terrace

Appendix F: Sites Analysis F-27
As described in Section 3 of this Appendix, the City has a number of pipeline projects on infill sites.

Approximately 552 units on infill sites are currently in the entitlement and/or construction phase of development. This represents fulfillment of over 26 percent of the City’s total 6th Cycle RHNA need. These infill projects have demonstrated that the use of infill sites in Watsonville has been an effective means to create housing opportunity in the City.

Redevelopment Factors
The City has identified a number of factors which, when paired together, show an increased likelihood of the nonvacant sites identified in the sites analysis redeveloping; Table F-12 details the redevelopment factors and includes the amount of applicable sites and regional context. Regional context is added as local examples are limited; programs included in the Policy Plan are meant to further facilitate residential development in Watsonville.

Table F-18 specifies redevelopment factors applicable to each non-vacant site.

Table F-12: Redevelopment Factors for Candidate Sites
Redevelopment Factor Applicable
Sites
Local and Regional Context/
Or Additional Details

1. Land value is greater than the improvement
value.

A site with a greater land value than
improvement value is considered
underutilized and a prime candidate for
redevelopment. This may occur when the
site is not developed to its maximum
potential, with surface parking area, aging
structures, etc.
64% City of Watsonville has seen success in
redeveloping sites with existing, aging
commercial/retail uses and structures.

Focused redevelopment along major
corridors have resulted in numerous
projects to increase the extent of uses on
sites. This includes the redevelopment of an
older bank building and surface parking lot
in the DWSP area to construct 50 apartment
units with a density of 66 du per acre, as
well as a vacant 1.76-acre site along
Freedom Boulevard that was redeveloped
with 53 affordable housing units with a
density of 30 du/acre.

2. Existing structure was built prior to 1990
(over 30 years ago).

Aging structures constructed over 30 years
ago are considered likely in need of some
rehabilitation. As structural age increases,
so does the need for repairs and
improvements, but also the likelihood for
redevelopment. This factor may also
incentivize property owners to sell or
redevelop their property to maximize their
investment.
69% Watsonville had five projects between 2016
and 2023 on sites previously occupied by
older commercial uses. These projects
redeveloped to include a variety of new,
residential uses such as mixed-use
developments, fully affordable residential
developments, and SB 35 streamlining
projects. These projects all included
affordable units. An example includes 445
Main Street, which replaced an outdated
commercial building with 54 apartment
units, and 511 Ohlone Parkway, which
replaced a junkyard with 144 housing units,
including 29 affordable units.

3. Existing uses do not include housing units. 74% Watsonville permitted 72 affordable housing units in 2022 that required the demolition of

Appendix F: Sites Analysis F-28
Table F-12: Redevelopment Factors for Candidate Sites
Redevelopment Factor Applicable
Sites
Local and Regional Context/
Or Additional Details
Sites without existing units are generally
simpler to redevelop as tenants with existing
leases would otherwise need to find
alternative accommodations which may
increase the timing of the redevelopment
process. As such, the City sought to limit the
number of non-vacant sites with existing
units – 74% of non-vacant sites identified in
this Housing Element have no existing units.

However, the City and the region have seen
development trends that point to
development interest even on sites with
existing units – as detailed to the right. This
shows that while 26% of the non-vacant
candidate housing sites do have existing
units, they are not anticipated to be a
constraint to redevelopment.
five housing units on Miles Lane. The
project, known as Sparrow Terrace, is
currently under construction.

This practice has also been successful in
nearby City of Santa Cruz, that approved
three projects between 2019-2022 on
parcels that contained existing residential
units, including transitional units, a singlefamily home, and an apartment building.

4. Common ownership of adjacent parcels.

Common ownership of adjacent parcels
facilitates development as they may
consolidate parcels to develop a more
intensive use, there are less property
owners to coordinate with, and it decreases
the likelihood of neighborhood opposition.
38% Program D.11: Lot Consolidation is included
in the Policy Plan to facilitate lot
consolidation from non-vacant,
underutilized sites.

5. Adjacent parcels.

Adjacent parcels may be consolidated to
facilitate more intense and higher density
development.
69% Program D.11: Lot Consolidation is included
in the Policy Plan to facilitate lot
consolidation from non-vacant,
underutilized sites.

The Sparrow Terrace project on Miles Lane
is an example of the developer successfully
compiling multiple parcels in order to
develop 72 affordable housing units. As part
of the project entitlement, lot consolidation
was approved. The density of this project is
24 du/acre.

Neighboring jurisdictions have seen
successful multi-family development built
through the consolidation of adjacent
parcels.

6. Underutilization of non-vacant sites (at
least 50 percent).

This factor builds upon Factor #1 and
identifies sites that have at least 50 percent
undeveloped/underutilized land. This
67% (Parcels with under 50 percent
underutilization are not counted; however, a
number fall between 40 to 50 percent.)
Watsonville has had one project in recent
years on land previously partially used for

Appendix F: Sites Analysis F-29
Table F-12: Redevelopment Factors for Candidate Sites
Redevelopment Factor Applicable
Sites
Local and Regional Context/
Or Additional Details
illustrates a potential for a more intense and
higher density development.
parking lots. The project includes 50 units
with 10 of them affordable. Regionally, the
City of Santa Cruz has also had two recent
projects one developed on 0.77 acres with a
density of 84.4 units per acre for an
affordable housing project with 16 very lowincome units and 49 low-income units.

7. Part or fully surface parking lot.

Surface parking lots are not considered
vacant, yet they do not have existing built
structures and are therefore good
candidates for redevelopment.
69% Surface parking lot redevelopment has been
successful in the region. A couple examples
include the following: Capitola has had a
recent project to redevelop a parking lot for
an office building into a higher density
residential development. In Santa Cruz,
Pacific Station South (detailed above) also
included a parcel with a surface parking lot
use.

8. City-Owned
A City-owned parcel is considered an ideal
candidate site given the jurisdictions ability
to control the sell and development of the
site. As such, the City may be able to choose
a buyer who plans on redeveloping the
parcel to the extent anticipated in the
Housing Element.
7% Program C.12: Surplus Land Act is included
in the Policy Plan to establish actions the
City will take to develop City-owned land.

Regional Affordability Trends
In addition to trends shown in Table F-12, there is a regional interest in residential developments that are fully affordable. Listed below are fully affordable projects that have developed in the region (this is a sample and not a comprehensive list of all fully affordable project within a 20-mile radius of Watsonville).
• Tabasa Gardens (Watsonville) - 100% affordable residential development – 53 total units • Sparrow Terrace (Watsonville) - 100% affordable residential development – 72 total units • Cienega Court (Watsonville) - 100% affordable residential development – 80 total units • Pippin Orchards (Watsonville) - 100% affordable residential development – 46 total units • Schapiro Knolls (Watsonville) - 100% affordable residential development – 88 total units • Pacific Station South (Santa Cruz): 100% affordable residential mixed-use development with commercial and medical offices – 70 total units at 32.7 DU/acre. • 532 Center Street (Santa Cruz): 100% affordable residential development – 65 total units at 84.4 DU/acre

Appendix F: Sites Analysis F-30
• 314 Jessie Street (Santa Cruz): 100% affordable residential development with supportive services – 50 total units at 116.28 DU/acre.
• 119 Coral Street (Santa Cruz): 100% affordable residential development with supportive services – 120 total units at 157 DU/acre.
• 78 Atkinson Lane (Santa Cruz County): 100% affordable residential development – 80 total units at 160.9 DU/acre.
• Homekey Project (Santa Cruz County): Residential development 100% affordable to extremely low-income households – 36 total units.
• 1098 38th Avenue (Capitola): 100% affordable residential development for both very low- and low-income households – 52 total units at about 26.3 DU/acre. • 730 Williams Road (Salinas): 100% affordable residential development – 100 total units • 275 Calle Cebu (Salinas): 100% affordable residential development – 46 total units • 131 E Rossie Street (Salinas): 100% affordable residential development – 50 total units • 1598 Mesquite Drive (Salinas): 100% affordable senior residential development – 132 total units • 306 Soledad Street (Salinas): 100% affordable residential development for persons with disabilities – 20 total units
• 21 Soledad Street (Salinas): 100% affordable residential development for persons with disabilities – 90 total units
• 1112 Parkside Street (Salinas): 100% affordable senior residential development – 20 total units • 472 Regency Circle (Salinas): 100% affordable senior residential development – 120 total units • Eden Housing/Mimosa Street Project (Hollister): 100% affordable residential development – 100 total units
• 1200 Rancho Drive (Hollister): 100% affordable residential development – 54 total units • 455 Westside Boulevard (Hollister): 100% affordable residential development – 31 total units Developer Interest and Pre-Applications
As a response to the City’s commitment to accommodating higher density residential development citywide, a number of developers have approached the City to explore opportunities. Through informal inquiries and more formal pre-application conferences, developer interest in Watsonville has experienced a significant increase. The recent adoption of the Downtown Watsonville Specific Plan is considered to be a major influence on developer interest. The provisions, development standards, and incentives contained in the Downtown Watsonville Specific Plan provide a strong statement of commitment to potential applicants.

Property owners have expressed explicit interest in redevelopment in the 6th Cycle planning period. For each inquiry below, the City has identified the development potential in the 6th Cycle planning period as well as a rationale demonstrating redevelopment feasibility, even on parcels with existing uses. All of the

Appendix F: Sites Analysis F-31
site inquiries below are on parcels that exhibit similar or identical site characteristics as the nonvacant sites identified in the Sites Inventory (Table F-18). The following is a summary of recent inquires by property owners/developers for infill opportunities in Watsonville:
• 553 Main Street: Approximately 2 acres combining three parcels. Existing commercial retail development along commercial retail corridor in the Downtown area. Interest in doing a mixeduse development with commercial on the ground floor and residential above. The growth projections used in the DWSP included a figure of 11,130 sf of commercial space and 156 units for the parcel at 553 Main Street (APN: 018-231-44). The adjoining parcels at 535 and 541 Main Street (APN: 018-231-37 & -39) could accommodate an additional 4,173 sf (3,234+939) of commercial space and 58 dwelling units (45+13). The Pajaro Valley Unified School District/County Office of Education is considering co-locating offices, classrooms, and workforce housing on the site. Based on recent discussions with the property owners, the City estimates a moderate to high redevelopment potential on the site.
• 100 & 114 Union Street: Existing retail business with surface parking in the front and rear. On a corner location with additional alley access. The property owner has expressed interest in redeveloping the parcels at 100 and 114 Union Street as a mixed-use development. During the preparation of the DWSP, he acquired the parcel at 114 Union Street (APN: 017-192-31) so that he had both properties under common ownership, demonstrating an explicit interest in redeveloping the parcels within the 6th Cycle planning period. The owner also attended many of the community meetings on the future of downtown Watsonville. Existing leases on the properties are expiring during 6th Cycle planning period and the property owner anticipates redeveloping the site once leases expire and during the planning period. The growth projection figures used in the DWSP for the combined development site of 0.92 acres are 8,038 square-feet of commercial space and 112 dwelling units. Based on recent discussions with the property owners, the City estimates a high redevelopment potential on the site. • 637 Main Street: The property owner has expressed interest in redeveloping two parcels and the property owners have proposed an approximately 38,000 sf mixed use housing project. The property would be combined with 22 Kilburn Street to provide secondary access. The growth projection figures used in the DWSP for 637 Main Street are 6,023 sf of commercial space and 84 dwelling units. The City has had multiple meetings with the property owners and they have demonstrated an interest in developing during the 6th Cycle planning period but are waiting for lower interest rates. Based on recent discussions with the property owners, the City estimates a high redevelopment potential on the site.
• 335 Main Street: The City received an inquiry about a proposed mixed use residential development at 335 Main Street (APN: 018-111-39 and 018-111-34). The growth projection figures used in the DWSP for 335 Main Street are 3,347 sf of commercial space and 47 dwelling units. The City has had one meeting with the property owners in which they advised the City that their property is a Cal Poly San Luis Obispo visioning project which may significantly reduce costs for the property owners. Based on recent discussions with the property owners, the City estimates a moderate to high redevelopment potential on the site.

Appendix F: Sites Analysis F-32
• 145 W Lake: Three parcels proposing mixed use residential development. Applicant is looking to maximize residential density as much as the DWSP allows. The growth projection figure used in the DWSP for 145 W Lake Ave (APN 017-011-02), 170 W Lake Ave (APN 017-011-30), and 145 W Lake Ave B (APN 017-011-31) is 109 dwelling units (59+26+24). (Note: All three parcels have the same postal address of 144 Westlake Ave.) The City has had multiple meetings with the applicants.

The applicant has prepared and shared conceptual plans with the City, demonstrating their intent to develop during the 6th Cycle planning period. Based on recent discussions with the property owners, the City estimates a high redevelopment potential on the site. • 222 Main Street: Multi-story affordable housing project being explored by Sibley Simon and Workbench. The growth projection figures used in the DWSP for 222 Main Street (APN: 017-183- 19) are 3,121 sf of commercial space and 65 dwelling units. The applicant is exploring a development that would propose 20-100 percent of the units as affordable. (Note: This results in a density of 180 units/acre on a 0.36-acre site.) The City received an SB 330 “Builder's Remedy” Pre-Application for a 100% residential development project on the site in August 2024. Based on recent discussions with the property owners, the City estimates a high redevelopment potential on the site.
• 1430 Freedom Boulevard: The City received an inquiry about a proposed workforce housing development on a County-owned property. The project description used for the proposed Santa Cruz County Campus project at 1430 Freedom Boulevard involves demolishing existing buildings and constructing 160 dwelling units, 80,000 sf of medical office space, and 5,000 sf of community service center. Of the 160 dwelling units, 75 units would be set aside for deed-restricted affordable housing. The medical office building would house all existing HSA outpatient services and administrative functions, including adult and children's primary care, dental care, adult and children's behavioral health services, and offices for the County's Public Health Division. The 5,000 sf of community-serving uses may include a community teaching kitchen, multi-purpose community room, and/or a limited-service food and beverage outlet—i.e., "grab and go" style cafe. 550 parking spaces would be provided, either in a surface parking lot or a standalone parking structure. The overall site is approximately 9.8 acres in size; the portion of the site reserved for future housing development is approximately 4 acres, resulting in a residential density of 40 units per acre. Based on recent discussions with the property owners, the City estimates a high redevelopment potential on the site.

The City has also received verbal and written interest in residential development of infill sites from multiple property owners and developers. These property owners and developers have worked with the City on previous projects before, and their continued interest shows the likelihood of continued residential development within Watsonville. A summary of each is provided below and letters of Interest and correspondence from these parties are provided at the end of this Appendix. • 475 Rodriguez Street: The City is working with the property owner, Santa Cruz Metro, on a proposed 65-unit, 100 percent affordable development on the parcel. The applicant has already secured $8.5 million in CA State Transportation Agency grant funding, the City has met with applicant and discussed the project multiple times, and the project is currently being designed.

Appendix F: Sites Analysis F-33
The City also recently submitted a letter of support for an additional Santa Cruz Metro grant funding application for Community Development Block Grant Disaster Recovery (CDBG-DR) funding. The City anticipates the applicant will submit a formal application and complete construction within the 6th Cycle planning period.
• 734 East Lake Avenue: The City received an inquiry about a proposed 22-unit development on a parcel with existing commercial condominiums that would be converted into residential units.

The City has met with applicant and discussed the project multiple times, and the project is currently being designed. The City anticipated the applicant will submit a formal application and complete construction within the 6th Cycle planning period. • 511 Pennsylvania Drive: The City received an inquiry about the property and has had multiple meetings and email discussions with a project representative, but the applicant has not proposed a specific project on the property as of August 2024. The property owner is conducting a feasibility study to determine what an appropriate proposal would be. Based on recent discussions with the property owners, the City estimates a moderate redevelopment potential on the site. • 121 Martinelli Street & 1005 East Lake Avenue: The City received an inquiry about a proposed 100 to 150-unit, 100 percent affordable development. The City has met with applicant and discussed the project multiple times, and the property owner is currently coordinating with affordable housing developers and exploring tax credits and grant funding options to make the project financially feasible.

Based on recent construction activity on infill sites, projects currently under entitlement, and inquiries from the development community, the City can demonstrate the viability of infill residential development.

Based on these trends, the City contends they will continue and most likely increase with the adoption of the DWSP.

City Commitment to Higher Density Development
The City of Watsonville has continued to support the improvement of residential opportunities for its residents, especially those in need of affordable opportunities. The City has demonstrated this through the evolution of local policy related to housing. Once a rural agrarian-based community, it now supports through adopted policy a strong commitment to affordable housing opportunity.

Historical Trends in Residential Densities
The Watsonville 2005 General Plan Update was adopted by the City Council in 1994. The City drafted the WatsonvilleVISTA 2030 General Plan in August 2012. The 2030 General Plan was subject to litigation and on October 14, 2014, the City Council adopted Resolution No. 137-14 rescinding the approval of the 2030 General Plan to comply with the Appellate Court ruling. The Watsonville 2005 General Plan is the currently adopted General Plan. Table F-13 contains the existing residential densities from the 2005 General Plan.

Appendix F: Sites Analysis F-34
Table F-13: Adopted General Plan Residential Development Types General Pan Zoning Districts Residential Density (du/acre) Low Density Residential (RLD) R-1 7.99 or fewer
Medium Density Residential
(RMD)
RM-2
8 to 13.99
High Density Residential (RHD) RM-3 14 to 36.99;
up to 42.99 for studios or SROs
14 to 36.99
up to 42.99 for studios or SROs
General Commercial (GC) CN
CT
Based on nearest multifamily
residential districts (RM-2 or RM-3)
Downtown Mixed Use Downtown Neighborhood
Downtown Industrial ≤85
Downtown Commercial Core Downtown Core ≤125
For the purposes of demonstrating the City’s commitment to higher density development, a summary of the 2030 General Plan and the residential densities it included is below in Table F-14. As part of the 2030 Watsonville General Plan update, a “vision” was developed that identified basic components, including:
• Agricultural Land
• Streams and Sloughs
• Open Space and Parks
• Corridors
• Centers
• Neighborhoods
• Industrial Districts
• Downtown
The Downtown area was identified as a significant community resource. The Draft 2030 General Plan envisioned this area as the heart of the town, the center of life and culture. Watsonville’s downtown was defined as a critical element that defines the City of Watsonville. An area of significant investment potential with opportunities to live work and play. Encouraging and facilitating the redevelopment on underutilized sites while at the same time protecting and enhancing historic properties was identifies as a priority for the City. This area was identified as having the highest residential densities, the most pedestrian friendly design, and the greatest variety of uses. It was defined as a business district and a neighborhood. The 2030 Watsonville General Plan also envisioned that the Downton area would grow substantially over time. Table F-14 describes the envisioned residential densities for the 2030 General Plan.

Appendix F: Sites Analysis F-35
Table F-14: 2030 Draft General Plan Residential Development Types General Pan Residential Density
Downtown Mixed Use 60 du/ac
Residential Low Density <10 du/ac
Residential Medium Density 10 – 19.99 du/ac
up to 42.99 for studios or SROs
Residential High Density 17-42 du/ac
Central Commercial (CC) 30-60 du/ac
The 2030 General Plan also called for the creation of a mixed-use zoning district with increased FAR of up to 3.0 FAR along major corridors such as Freedom Boulevard and East Lake Avenue. The Draft 2030 General Plan estimated that between annexation areas in Buena Vista and Atkinson Lane, as well as infill along the City’s major corridors and downtown, an additional 4,100 housing units could be developed over the 25-year planning horizon.

The 2030 General Plan was first adopted on May 9, 2006, after a 4-year planning effort that was informed by a collaboration of local stakeholders known as “Action Pajaro Valley,” which was founded to create a positive future for the residents of the Pajaro Valley by facilitating an ongoing collaborative process for planning and community decision making. The Watsonville Pilots Association, Friends of Buena Vista, and the Sierra Club filed a lawsuit against both the City of Watsonville and the Caltrans Division of Aeronautics asserting that the 2030 General Plan violated the State Aeronautics Act and the California Environmental Quality Act. The Court found in favor of the appellants. As a result, the City rescinded the 2030 General Plan.

The City modified the General Plan and it was again adopted by the City Council on September 25, 2012.

A second lawsuit was filed in 2013 by the Watsonville Pilots Association asserting that the Plan was inconsistent with the Caltrans Airport Land Use Planning Handbook. The Superior Court ruled in favor of the Watsonville Pilots Association, and the General Plan was rescinded a second time.

Policy Support from General Plan
Commitment to Maximize Residential Potential
The 2005 General Plan, adopted by the City in 1994, anticipated a population of 51,600 within the City limits and Sphere of Influence by the year 2005. The 1990 City population was 31,099 people, therefore the 2005 General Plan aimed to accommodate over 20,000 people by the horizon year. At the time of preparation, only about 523 acres, or 14% of land within City limits, was considered vacant or underutilized.

Over time, the City has taken measures to accommodate anticipated growth. First, an urban growth boundary, known as Measure U, was passed by voters in 2002 that identified key annexation areas for future residential and job-generating uses. The annexation areas identified for residential uses were Buena Vista and Atkinson Lane areas. A Specific Plan would be required prior to annexation action for these future growth areas.

Appendix F: Sites Analysis F-36
The City developed the Atkinson Lane Specific Plan in 2013 in collaboration with the County of Santa Cruz.

The Specific Plan area would have accommodated up to 500 new housing units at low and medium densities, to include small lot subdivisions, apartments, condominiums, and townhomes. The Atkinson Lane Specific Plan was challenged by the Santa Cruz County Farm Bureau, and the City ultimately agreed to set aside the Specific Plan.

In 2018, the City was awarded a Caltrans Sustainable Communities Planning Grant to develop a Downtown Watsonville Specific Plan. This plan, adopted on October 10, 2023, has increased the development potential in the Downtown area to accommodate up to 3,900 additional units over the next 20 years. This effort necessitated the modification of the 2005 General Plan to allow increased density and the creation of a new land use classification.

As this narrative demonstrates, the City of Watsonville has been committed to providing housing for its residents, despite numerous challenges.
2050 General Plan Update
The draft 2050 General Plan Update will build upon the draft 2030 General Plan by increasing densities along the City’s major corridors, such as East Lake Avenue and Freedom Boulevard, while also taking advantage of the Atkinson Lane and Buena Vista annexation areas. In addition to annexed land to accommodate housing, the City is considering significant modifications to the Watsonville Municipal Airport, by shortening or closing the Crosswind Runway, also known as Runway 9-27, which has been classified as an “Additional Runway” that will no longer be supported by the Federal Aviation Administration (FAA).

With the shortening or removal of the Crosswind Runway, additional redevelopment opportunities open up in both the Buena Vista Annexation area as well as along Freedom Boulevard in the vicinity of the airport. All development, and residential development in particular, has been severely constrained in these two areas due to airport land use restrictions in the past. The owners of two large parcels in the Freedom Boulevard Corridor have expressed interest in developing mixed use projects if the Airport Safety Zones were modified. The City has done preliminary calculations and estimates that these parcels could accommodate up to 474 residential units at 40 dwelling units per acre.

Options being considered as part of the 2050 General Plan update include annexation of areas adjacent to the City that could accommodate significant residential development over the next 25 years.

Policy Support in Zoning Code
Affordable Housing Ordinance
The City adopted its first Affordable Housing Ordinance in 1991, and it has been updated twice since its inception. The Ordinance requires that 20% of all rental projects that propose 7 or more units be deed restricted affordable, and 15-20% of all ownership projects that propose 7 or more units must be sold to eligible low-income buyers.

This program has led to the development of 1,636 affordable units (317 for sale units and 1,319 rental units) in the City since 1991.

Appendix F: Sites Analysis F-37
In addition to the affordable housing requirement, the City has provided $5,335,000 in loans to nonprofit housing developers for the construction of 171 affordable units.

Downtown Watsonville Specific Plan
On October 10, 2023, the City Council adopted the Downtown Watsonville Specific Plan (DWSP). The Specific Plan is a significant change in the vision for the downtown area. Consistent with the general vision of the draft 2030 General Plan, the Specific Plan provides significant additional policy and regulatory support to encourage and facilitate residential development on infill sites.

The DWSP permits significant residential densities to allow for a variety of product types and affordability levels. These densities include:
• Downtown Mixed-Use: 85 dwelling units/acre
• Downtown Commercial Core: 125 dwelling units/acre
The DWSP is intended to enhance the downtown area as the City’s cultural hub, with a variety of opportunities for residential and other uses the will further encourage residential development. The Specific Plan’s EIR assumes a large amount of growth potential, including:
• 3,886 residential dwelling units
• 231,151 sf of commercial space (e.g., restaurant, bars, cafes, retail, office) • 376,827 sf of industrial space (e.g., restaurants, research & development, office, industrial) • 114,572 sf of civic space
Residential development opportunity in the DWSP provides significant opportunities to meet 6th Cycle growth need and the need in future cycles.

Key influencing factors supporting residential development in the DWSP Area The following key influencing factors contribute to and support the development of housing in the DWSP area. The policy and regulations in the Plan are supported and reinforced by the behaviors of the market, including new investments and commitments to future investments. • The Downtown area had historically struggled to compete regionally with other commercial areas and has experienced high retail and commercial vacancy rates for the past several decades. The new policy commitments in the DWSP have the potential to reshape the downtown area and make it an attractive regional investment opportunity for both commercial and residential development.
• The adoption of the DWSP has resulted in significant interest from private developers for new mixed-use and residential development. There has been growing interest in downtown Watsonville in recent years that has already resulted in built projects and the DWSP will support this trend by creating a flexible and streamlined environment for the development of new mixed-use and residential project during the Planning Period.

Appendix F: Sites Analysis F-38
• Roughly 60 percent of the downtown residential stock is comprised of multifamily structures.

Watsonville’s downtown has seen the successful delivery of new mid-rise housing developments, demonstrating the viability of residential redevelopment in the downtown area. • Existing infrastructure systems, including water and sewer, as evaluated in the DWSP Environmental Impact Report, have adequate capacity to serve development within the DWSP area. The availability of infrastructure contributes to lower development costs and supports improved project feasibility.
• Median Selling prices are lower and more affordable in Watsonville compared to neighboring cities ($695k in Watsonville vs $1.2m in Scotts Valley vs $1.3m in Santa Cruz). This creates greater opportunity to develop a wide range of housing types at different affordability levels. • Santa Cruz County has expressed its interest in affordable housing adjacent to transportation centers. The Santa Cruz Metro station in the downtown, located at 475 Rodriguez Street, has already been identified as an opportunity to provide increased transit use in conjunction with affordable housing.
• Public and stakeholder participation in the development of the DWSP has indicated a strong desire to increase housing opportunities and willingness to invest in the downtown. • The DWSP has specific policies and regulations supporting affordable residential development opportunity in the downtown area. The DWSP land use plan and policies prioritize infill development, reuse of underutilized parcels, reimagined mobility options, mixed-use design, and preservation of key elements that make downtown Watsonville unique. New development is prioritized where existing roads, water, sewer, and other utilities are in place and in a manner that minimizes the impact of development on existing infrastructure and services. • Recent infill development in the downtown has shown strong market support. For example, The Terrace at 445 Main Street has been well received by the market and residential renters leased up the project almost immediately,
• When comparing residential real estate downtown versus the city as a whole, residential stock citywide is overwhelmingly single-family (approximately two-thirds) while the majority of the housing stock downtown is multifamily. Roughly 60 percent of the Downtown residential stock is in multifamily structures.

Appendix F: Sites Analysis F-39
Attachment A: Letters of Support for Residential Development 475 Rodriguez Street METRO Letter of Interest

Appendix F: Sites Analysis F-40
734 East Lake Avenue Email Inquiry
511 Pennsylvania Drive Email Inquiry

Appendix F: Sites Analysis F-41
121 Martinelli Street Email Inquiry

Appendix F: Sites Analysis F-1
Table F-15: 5th Cycle Sites
Inventory/Map
ID APN Site Address Parcel Size(s)
General
Plan
Designation
(Current)
Zoning
(Current) Vacancy
5th
Cycle
Sites?
Existing
Units Density Total Yield
Assumed Net Unit Yield
Explanation of
Development/Redevelopment Potential 80%
Yield
Low/Very
Low Mod Above Mod
5th Cycle Sites
9 014-091-10 11 CAREY AVE 0.42 RLD R-1 Vacant Yes - 7.99 3 2 0 1 1 Vacant 5th Cycle Site 10 016-491-04 135 MILES LN 1.40 RMD RM-2 Vacant Yes - 13.99 19 17 0 7 10 Vacant 5th Cycle Site 11 016-071-02 1385 FREEDOM BLVD 0.22 RMD RM-2 Vacant Yes - 13.99 3 2 0 1 1 Vacant 5th Cycle Site 12 016-071-03 1385 FREEDOM BLVD A 0.11 RMD RM-2 Vacant Yes - 13.99 1 1 0 0 1 Vacant 5th Cycle Site 13 019-054-13 217 STANFORD ST 0.14 RMD RM-2 Vacant Yes - 13.99 1 1 0 0 1 Vacant 5th Cycle Site 14 019-053-06 222 PROSPECT ST 0.15 RMD RM-2 Vacant Yes - 13.99 2 1 0 0 1 Vacant 5th Cycle Site 15 017-162-15 228 LOCUST ST 0.16 RLD R-1 Vacant Yes - 7.99 1 1 0 0 1 Vacant 5th Cycle Site 16 017-162-16 234 LOCUST ST 0.18 RLD R-1 Vacant Yes - 7.99 1 1 0 0 1 Vacant 5th Cycle Site 17 017-621-09 290 W RIVERSIDE DR 2.95 RLD R-1 Vacant Yes - 7.99 23 18 0 7 11 Vacant 5th Cycle Site 18 017-221-03 484 BECK ST 0.49 RLD R-1 Vacant Yes - 7.99 3 3 0 1 2 Vacant 5th Cycle Site 19 019-236-01 78 ATKINSON LN 0.50 RLD R-1 Vacant Yes - 7.99 3 3 0 1 2 Vacant 5th Cycle Site 20 015-201-08 N/A 0.14 RLD R-1 Vacant Yes - 7.99 1 1 0 0 1 Vacant 5th Cycle Site 21 014-161-02 9 COMPTON TER 0.15 RLD R-1 Vacant Yes - 7.99 1 1 0 0 1 Vacant 5th Cycle Site 22 015-201-07 N/A 0.14 RLD R-1 Vacant Yes - 7.99 1 1 0 0 1 Vacant 5th Cycle Site 23 018-151-08 213 BRENNAN ST 0.06 RHD RM-3 Vacant Yes - 36.99 2 2 0 1 1 Vacant 5th Cycle Site 24 016-181-14 511 PENNSYLVANIA DR 1.51 RMD RM-2 Vacant Yes - 13.99 21 19 0 8 11 Vacant 5th Cycle Site Total 5th Cycle Units 86 74 0 27 47

Appendix F: Sites Analysis F-2
Table F-16: Vacant Existing Zoning Sites
Inventory/Map
ID APN Site Address Parcel Size(s)
General
Plan
Designation
(Current)
Zoning
(Current) Vacancy
5th
Cycle
Sites?
Existing
Units Density Total Yield
Assumed Net Unit Yield
Explanation of
Development/Redevelopment Potential 80%
Yield
Low/Very
Low Mod Above Mod
Existing Zoning - Vacant Sites
25 016-071-04 1385 FREEDOM BLVD 0.09 RMD RM-2 Vacant No - 13.99 1 1 0 0 1 Vacant Residential Land, this parcel can be
combined with APNs 016-071-05, -06 and
-24 to allow for development with
sufficient acreage.
26 016-071-05 1385 FREEDOM BLVD B 0.28 RMD RM-2 Vacant No - 13.99 3 3 0 0 3 Vacant Residential Land, this parcel can be
combined with APNs 016-071-04, -06 and
-24 to allow for development with
sufficient acreage.
27 016-071-06 1385 FREEDOM BLVD C 0.26 RMD RM-2 Vacant No - 13.99 3 3 0 1 2 Vacant Residential Land, this parcel can be
combined with APNs 016-071-04, -05 and
-24 to allow for development with
sufficient acreage.
28 016-071-24 1385 FREEDOM BLVD E 0.22 RMD RM-2 Vacant No - 13.99 3 3 0 1 2 Vacant Residential Land, this parcel can be
combined with APNs 016-071-04, -05 and
-06 to allow for development with
sufficient acreage.

Total Vacant Existing Zoning Units 10 10 0 2 8

Appendix F: Sites Analysis F-3
Table F-17: DWSP Vacant Sites
Inventory/Map
ID APN Site Address Parcel Size(s)
General
Plan
Designation
(Current)
Specific Plan
Zoning
(Current)
Vacancy
5th
Cycle
Sites?
Existing
Units Density Total Yield
Assumed Net Unit Yield
Explanation of
Development/Redevelopment Potential 74%
Yield
Low/Very
Low Mod Above Mod
DWSP Vacant Sites
29 018-151-06 762 FREEDOM BLVD X 0.05 DMU DN Vacant No - 85.00 4 3 0 1 2 Vacant Residential Land, this parcel can be
combined with APNs 018-151-34, -33, -11,
and -09 to allow for redevelopment with
sufficient acreage.
30 017-011-31 176 W BEACH ST 0.30 DMU DN Vacant No - 85.00 25 18 3 5 11 Vacant Commercial Land, this lot can be
consolidated with APN 017-011-30 to
provide sufficient acreage for
redevelopment
31 017-011-30 170 W BEACH ST 0.33 DMU DN Vacant No - 85.00 28 20 3 5 12 Vacant Commercial Land, this lot can be
consolidated with APN 017-011-31 to
provide sufficient acreage for
redevelopment
32 017-011-02 145 W LAKE AVE 0.75 DMU DI Vacant No - 85.00 63 47 7 12 28 Vacant Industrial Land 33 016-153-04 6 ALTON WAY 0.47 DCC DC Vacant No - 125.00 58 43 6 11 26 Vacant Residential Land, this land can be
combined with adjacent parcels 016-153-
03 and -05 for more development
potential.
34 016-153-03 1 WESTERN DR 0.50 DCC DC Vacant No - 125.00 62 46 7 11 28 Vacant Commercial Land, this land can be
combined with adjacent parcels 016-153-
04 and -05 for more development
potential.

Total DWSP Vacant Units 240 176 26 44 106

Appendix F: Sites Analysis F-4
Table F-18: DWSP Non-Vacant Sites
Inventory/Map
ID APN Site Address Parcel Size(s)
General
Plan
Designation
(Current)
Specific Plan
Zoning
(Current)
Vacancy
5th
Cycle
Sites?
Existing
Units Density Total Yield
Assumed Net Unit Yield
Explanation of
Development/Redevelopment Potential 74%
Yield
Low/Very
Low Mod Above Mod
DWSP Non-Vacant Sites
35 018-471-04 144 W LAKE AVE 1.57 DMU DN No No - 85.00 133 99 20 25 54 This site is currently underutilized per the
lower improvement value of the land,
making it feasible for redevelopment.

Redevelopment Factor(s): 1, 2, 3, 6
36 018-242-29 123 E LAKE AVE 0.96 DMU DN No No - 85.00 81 60 12 15 33 On this lot, this use and the adjacent one
is both dilapidated, making the feasibility
of this lot being redeveloped for housing
in the next 8 years possible.

Redevelopment Factor(s): 2, 3, 7
37 018-241-44 35 E LAKE AVE 0.52 DMU DN No No - 85.00 43 32 5 8 19 This parcel is currently used for retail.

Currently, there are vacancies in one of
the spaces in this building, and vacant
building adjacent to this parcel. The
underutilization of this parcel and the
possibility of this land to combined with
APNs 018-241-14, -15, -20, -23, -40, or -42
to provide sufficient buildable acreage
makes this site suitable for
redevelopment in the next 8 years.

Improvement percentage for the parcel is
54%.

Redevelopment Factor(s): 2, 3, 5, 7
38 018-241-42 15 BRENNAN ST 0.43 DMU DN No No - 85.00 36 27 4 7 16 This parcel is currently used for retail.

Currently, there are vacancies in one of
the spaces in the adjacent building, along
with this parcel seeming vacant as well.

Additionally, the lower improvement
value compared to land value is another
indicator of redevelopment potential.

Lastly, with the opportunity of this land to
be combined with APNs 018-241-14, -15, -
20, -23, -40, or -44 to provide sufficient
buildable acreage makes this site suitable
for redevelopment in the next 8 years.

Redevelopment Factor(s): 1, 2, 3, 5, 6, 7
39 018-241-40 29 E LAKE AVE 0.20 DCC DC No No - 125.00 24 18 2 5 11 This parcel is currently used as a parking
lot. Since there are no actual structures
on the site that can accrue improvement
value. Additionally, the opportunity for
this land to be combined with APNs 018-

Appendix F: Sites Analysis F-5
Table F-18: DWSP Non-Vacant Sites
Inventory/Map
ID APN Site Address Parcel Size(s)
General
Plan
Designation
(Current)
Specific Plan
Zoning
(Current)
Vacancy
5th
Cycle
Sites?
Existing
Units Density Total Yield
Assumed Net Unit Yield
Explanation of
Development/Redevelopment Potential 74%
Yield
Low/Very
Low Mod Above Mod
DWSP Non-Vacant Sites
241-01, -14, -15, -20, -23, -40, or -44 to
provide sufficient buildable acreage
makes this site suitable for
redevelopment in the next 8 years.

Redevelopment Factor(s): 1, 3, 5, 6, 7
40 017-641-16 No Address 3.17
(2.35) DCC DC No No - 125.00 293 216 43 54 119
This parcel is currently a large parking lot
that is severely underutilized for the uses
it is meant to serve. Only 2.35 acres of the
parcel are assumed to be utilized as
“buildable area,” due to the fact that an
existing use currently utilizes a portion of
the parcel as parking. Along with its no
improvement value and accessibility to
the street, it is a feasible site that can be
redeveloped in the next 8 years.

Redevelopment Factor(s): 1, 3, 6, 7
41 018-241-37 30 E 5TH ST A 0.63 DMU DN No No - 85.00 53 39 6 10 23 This parcel and its surrounding uses are all
older and underutilized. With this area
being near a large concentration of
residential uses, this site also has
potential to be redeveloped for housing in
the next 8 years.

Redevelopment Factor(s): 2, 3, 5, 7
42 018-241-35 15 E LAKE AVE 0.05 DCC DC No No - 125.00 6 4 1 1 2 This parcel is part of an underutilized
parking lot. It has no improvement value,
and the opportunity for this land to be
combined with APNs 018-241-01, -14, -15,
-20, -23, -40, -44, or -45 to provide
sufficient buildable acreage makes this
site suitable for redevelopment in the
next 8 years.

Redevelopment Factor(s): 1, 5, 6, 7
43 018-241-34 17 E LAKE AVE 0.05 DCC DC No No - 125.00 5 4 1 1 2 This parcel is part of an underutilized
parking lot. It has no improvement value,
and the opportunity for this land to be
combined with APNs 018-241-01, -14, -15,
-20, -23, -35, -40, -44, or -45 to provide
sufficient buildable acreage makes this
site suitable for redevelopment in the
next 8 years.

Appendix F: Sites Analysis F-6
Table F-18: DWSP Non-Vacant Sites
Inventory/Map
ID APN Site Address Parcel Size(s)
General
Plan
Designation
(Current)
Specific Plan
Zoning
(Current)
Vacancy
5th
Cycle
Sites?
Existing
Units Density Total Yield
Assumed Net Unit Yield
Explanation of
Development/Redevelopment Potential 74%
Yield
Low/Very
Low Mod Above Mod
DWSP Non-Vacant Sites
Redevelopment Factor(s): 1, 5, 6, 7
44 018-241-45 11-13 E LAKE AVE 0.99 DCC DC No No 1 125.00 124 92 14 23 55 This parcel is part of an underutilized
parking lot. It has no improvement value,
and the opportunity for this land to be
combined with APNs 018-241-01, -14, -15,
-20, -23, -34, -35, -40, or -44 to provide
sufficient buildable acreage makes this
site suitable for redevelopment in the
next 8 years.

Redevelopment Factor(s): 1, 2, 6
45 018-241-23 21 BRENNAN ST 0.67 DMU DN No No - 85.00 57 42 6 11 25 This sites development has a number of
vacant suites in it. The lack of tenants
shows this building is being underutilized,
and the opportunity for this land to be
combined with APNs 018-241-01, -14, -15,
-20, -34, -35, -40, -44, or -45 to provide
sufficient buildable acreage makes this
site suitable for redevelopment in the
next 8 years. Improvement percentage for
the parcel is 55 percent.

Redevelopment Factor(s): 2, 3, 5, 7
46 018-241-15 19 E LAKE AVE 0.24 DCC DC No No - 125.00 29 22 3 6 13 This parcel has an improvement value
that is lower that its land value, indicating
that the parcel is underutilized.

Additionally, the opportunity for this land
to be combined with APNs 018-241-01, -
14, -20, -23, -34, -35, -40, -44, or -45 to
provide sufficient buildable acreage
makes this site suitable for
redevelopment in the next 8 years.

Redevelopment Factor(s): 1, 2, 3, 4, 5, 6
47 018-241-14 23 E LAKE AVE 0.33 DCC DC No No - 125.00 41 30 4 8 18 This parcel has an improvement value
that is lower that its land value, indicating
that the parcel is underutilized.

Additionally, the opportunity for this land
to be combined with APNs 018-241-01, -
20, -23, -34, -35, -40, -44, or -45 to
provide sufficient buildable acreage
makes this site suitable for
redevelopment in the next 8 years.

Appendix F: Sites Analysis F-7
Table F-18: DWSP Non-Vacant Sites
Inventory/Map
ID APN Site Address Parcel Size(s)
General
Plan
Designation
(Current)
Specific Plan
Zoning
(Current)
Vacancy
5th
Cycle
Sites?
Existing
Units Density Total Yield
Assumed Net Unit Yield
Explanation of
Development/Redevelopment Potential 74%
Yield
Low/Very
Low Mod Above Mod
DWSP Non-Vacant Sites
Redevelopment Factor(s): 1, 2, 3, 4, 5, 6, 7
48 018-241-03 22 E 5TH ST 0.15 DMU DN No No - 125.00 19 9 1 2 6 This parcel has an improvement value
that is lower that its land value, indicating
that the parcel is underutilized.

Additionally, the opportunity for this land
to be combined with APNs 018-241-01, -
02, -14, -20, -23, -34, -35, -40, -44, or -45
to provide sufficient buildable acreage
makes this site suitable for
redevelopment in the next 8 years.

Redevelopment Factor(s): 1, 2, 5, 6
49 018-241-02 18 E 5TH ST 0.21 DCC DC No No - 125.00 25 19 3 5 11 This parcel has an improvement value
that is lower that its land value, indicating
that the parcel is underutilized.

Additionally, the opportunity for this land
to be combined with APNs 018-241-01, -
03 -14, -20, -23, -34, -35, -40, -44, or -45
to provide sufficient buildable acreage
makes this site suitable for
redevelopment in the next 8 years.

Redevelopment Factor(s): 1, 2, 3, 5, 6, 7
50 018-231-46 29 W 5TH ST 0.28 DCC DC No No - 125.00 34 25 4 6 15 This parcel is an underutilized parking lot.

The improvement value being lower than
the land value indicates that
redevelopment can be desired.

Additionally, the opportunity for this
parcel to combine with adjacent APNs
018-231-44 and -06 to provide sufficient
acreage, indicates that this parcel can be
redeveloped for housing in the next 8
years.

Redevelopment Factor(s): 1, 3, 5, 6, 7
52 018-231-06 31 W 5TH ST 0.10 DCC DC No No - 125.00 12 9 1 2 6 This parcel is an underutilized parking lot.

The improvement value being lower than
the land value indicates that
redevelopment can be desired.

Additionally, the opportunity for this
parcel to combine with adjacent APNs
018-231-44 and -46 to provide sufficient
acreage, indicates that this parcel can be

Appendix F: Sites Analysis F-8
Table F-18: DWSP Non-Vacant Sites
Inventory/Map
ID APN Site Address Parcel Size(s)
General
Plan
Designation
(Current)
Specific Plan
Zoning
(Current)
Vacancy
5th
Cycle
Sites?
Existing
Units Density Total Yield
Assumed Net Unit Yield
Explanation of
Development/Redevelopment Potential 74%
Yield
Low/Very
Low Mod Above Mod
DWSP Non-Vacant Sites
redeveloped for housing in the next 8
years.

Redevelopment Factor(s): 1, 3, 5, 6, 7
53 018-151-34 203 BRENNAN ST 0.17 DMU DC No No - 85.00 14 10 1 3 6 This parcel is a vacant parking lot. The lack
of improvement value is an indicator that
this parcel has redevelopment potential.

Additionally, this parcel can be combined
with APNs 018-151-06, -33, -11, and -09
to allow for redevelopment with sufficient
acreage.

Redevelopment Factor(s): 1, 3, 5, 6
54 018-151-33 207 BRENNAN ST A 0.17 DMU DN No No 5 85.00 14 10 1 3 6 This parcel is a number of dilapidated,
underdeveloped apartments that can be
combined with APNs 018-151-06, -34, -11,
and -09 to allow for redevelopment into
more quality housing in the next 8 years.

Redevelopment Factor(s): 2, 4, 5
55 018-151-32 217 BRENNAN ST 0.08 DMU DN No No - 85.00 6 4 1 1 2 This parcel currently has a single-family
development. All parcels adjacent to this
site is higher density apartments.

Additionally, the opportunity that this
parcel can be combined with APNs 018-
151-06, -33, -34, -11, and -09 increases
the likelihood that this parcel will convert
to a higher density development in the
next 8 years. Improvement value of the
parcel is 52 percent.

Redevelopment Factor(s): 2, 4, 5, 6
56 018-151-11 151 BRENNAN ST A 0.15 DMU DN No No 3 85.00 12 9 1 2 6 This parcel currently has a single-family
development. All parcels adjacent to this
site is higher density apartments.

Additionally, the opportunity that this
parcel can be combined with APNs 018-
151-06, -32, -33, -34, and -09 increases
the likelihood that this parcel will convert
to a higher density development in the
next 8 years.

Redevelopment Factor(s): 2, 4, 5

Appendix F: Sites Analysis F-9
Table F-18: DWSP Non-Vacant Sites
Inventory/Map
ID APN Site Address Parcel Size(s)
General
Plan
Designation
(Current)
Specific Plan
Zoning
(Current)
Vacancy
5th
Cycle
Sites?
Existing
Units Density Total Yield
Assumed Net Unit Yield
Explanation of
Development/Redevelopment Potential 74%
Yield
Low/Very
Low Mod Above Mod
DWSP Non-Vacant Sites
57 018-151-09 209 BRENNAN ST 1 0.17 DMU DN No No 5 85.00 14 10 1 3 6 This parcel is a number of dilapidated,
underdeveloped apartments that can be
combined with APNs 018-151-06, -34, -11,
and -32, -33 to allow for redevelopment
into more quality housing in the next 8
years.

Redevelopment Factor(s): 2, 4, 5
58 017-101-40 119 W BEACH ST 0.39 DCC DC No No - 125.00 49 36 5 9 22 This underutilized building has become
dilapidated and seems to not have been
taken care of for a number of years. This
couple with the fact it is adjacent to other
dilapidated developments shows that
they can be redeveloped for housing.

Adjacent parcels 017-101-14 and -39 can
be consolidated to allow sufficient
acreage for housing opportunity.

Redevelopment Factor(s): 2, 4, 5
59 017-101-39 127 W BEACH ST 0.46 DCC DC No No - 125.00 56 42 6 11 25 This underutilized building has become
dilapidated and seems to not have been
taken care of for a number of years. This
couple with the fact it is adjacent to other
dilapidated developments shows that
they can be redeveloped for housing.

Adjacent parcels 017-101-14 and -40 can
be consolidated to allow sufficient
acreage for housing opportunity.

Redevelopment Factor(s): 1, 3, 4, 5, 6, 7
60 017-681-08 49 UNION ST 0.96 DCC DC No No 22 125.00 120 89 18 22 49 This parcel has two underutilized,
dilapidated buildings and an
underdeveloped parking lot. These factors
make this parcel feasible for development
in the next 8 years.

Redevelopment Factor(s): 2, 7
61 017-661-28 480 UNION ST 0.31 DMU DN No No - 85.00 26 19 3 5 11 This parcel is an underutilized parking lot.

The lack of improvement value is an
indicator that this parcel has
redevelopment potential. Additionally,
this parcel can be combined with APNs
017-661-11, -10, and -09 to allow for
redevelopment with sufficient acreage.

Appendix F: Sites Analysis F-10
Table F-18: DWSP Non-Vacant Sites
Inventory/Map
ID APN Site Address Parcel Size(s)
General
Plan
Designation
(Current)
Specific Plan
Zoning
(Current)
Vacancy
5th
Cycle
Sites?
Existing
Units Density Total Yield
Assumed Net Unit Yield
Explanation of
Development/Redevelopment Potential 74%
Yield
Low/Very
Low Mod Above Mod
DWSP Non-Vacant Sites
Redevelopment Factor(s): 1,2, 3, 6, 7
62 017-661-11 25 CARR ST 0.21 DMU DN No No - 85.00 18 13 2 3 8 This parcel is an underutilized parking lot.

The lack of improvement value is an
indicator that this parcel has
redevelopment potential. Additionally,
this parcel can be combined with APNs
017-661-28, -10, and -09 to allow for
redevelopment with sufficient acreage.

Redevelopment Factor(s): 1, 3, 4, 5, 6, 7
63 017-661-10 27 CARR ST 0.22 DMU DN No No - 85.00 19 14 2 4 8 This parcel is an underutilized parking lot.

The lack of improvement value is an
indicator that this parcel has
redevelopment potential. Additionally,
this parcel can be combined with APNs
017-661-11, -28, and -09 to allow for
redevelopment with sufficient acreage.

Redevelopment Factor(s): 1, 3, 4, 5, 6, 7
64 017-661-09 31 CARR ST 0.18 DMU DN No No - 85.00 15 11 1 3 7 This parcel is an underutilized parking lot.

The lack of improvement value is an
indicator that this parcel has
redevelopment potential. Additionally,
this parcel can be combined with APNs
017-661-11, -10, and -28 to allow for
redevelopment with sufficient acreage.

Redevelopment Factor(s): 1, 3, 4, 5, 6, 7
65 017-192-42 100 UNION ST 0.75 DCC DC No No - 125.00 93 69 14 17 38 This parcel is underutilized, as the
improvement value is lower than the land
value. Additionally, there are a number of
vacant tenant spaces in the building these
factors make redevelopment in the next 8
years into housing feasible. This site also
can be consolidated with adjacent APN
017-192-31 to provide sufficient acreage
for affordability.

Redevelopment Factor(s): 1, 2, 3, 4, 6, 7
66 017-192-31 114 UNION ST 0.17 DCC DC No No 1 125.00 21 16 2 4 10 This parcel has two underutilized,
dilapidated buildings and an
underdeveloped parking lot. These factors
make this parcel feasible for development

Appendix F: Sites Analysis F-11
Table F-18: DWSP Non-Vacant Sites
Inventory/Map
ID APN Site Address Parcel Size(s)
General
Plan
Designation
(Current)
Specific Plan
Zoning
(Current)
Vacancy
5th
Cycle
Sites?
Existing
Units Density Total Yield
Assumed Net Unit Yield
Explanation of
Development/Redevelopment Potential 74%
Yield
Low/Very
Low Mod Above Mod
DWSP Non-Vacant Sites
in the next 8 years. This site also can be
consolidated with adjacent APN 017-192-
42 to provide sufficient acreage for
affordability.

Redevelopment Factor(s): 1, 2, 4, 5
67 017-121-04 112 E BEACH ST 0.95 DMU DN No No - 85.00 81 59 12 15 32 This parcel is an opportunity site per new
laws that incentivize churches to develop
housing. This makes it likely to develop
housing in the next 8 years.

Redevelopment Factor(s): 2, 3, 7
68 017-111-44 210 RODRIGUEZ ST 0.32 DCC DC No No - 125.00 40 29 4 7 18 This parcel is part of a vacant parking lot.

The lack of improvement value also makes
this site opportunity for redevelopment
into housing. It can be combined with
adjacent APN 017-111-42 to provide
sufficient affordability acreage. This parcel
is City-owned.

Redevelopment Factor(s): 1, 3, 4, 5, 6, 7, 8
69 017-111-42 320 RODRIGUEZ ST 0.20 DCC DC No No - 125.00 25 18 2 5 11 This parcel is part of a vacant parking lot.

The lack of improvement value also makes
this site opportunity for redevelopment
into housing. It can be combined with
adjacent APN 017-111-44 to provide
sufficient affordability acreage. This parcel
is City-owned.

Redevelopment Factor(s): 1, 3, 4, 5, 6, 7, 8
70 017-033-28 237 E BEACH ST 2.30 DMU DN No No - 85.00 195 144 29 36 79 This parcel has a number of old,
dilapidated buildings that have not been
restored in a number of years.

Additionally, this development is adjacent
to residential uses, which makes
redevelopment within the next 8 years
possible.

Redevelopment Factor(s): 2, 3
71 017-022-42 29 E BEACH ST 0.57 DCC DC No No - 125.00 70 52 10 13 29 This parcel has a building with a number
of vacant spaces for tenants in it, which
indicates the current uses lack of
performance. The improvement value
being lesser than the land value also

Appendix F: Sites Analysis F-12
Table F-18: DWSP Non-Vacant Sites
Inventory/Map
ID APN Site Address Parcel Size(s)
General
Plan
Designation
(Current)
Specific Plan
Zoning
(Current)
Vacancy
5th
Cycle
Sites?
Existing
Units Density Total Yield
Assumed Net Unit Yield
Explanation of
Development/Redevelopment Potential 74%
Yield
Low/Very
Low Mod Above Mod
DWSP Non-Vacant Sites
makes this site opportunity for
redevelopment into housing.

Redevelopment Factor(s): 1, 2, 3, 6, 7
72 017-022-37 449 UNION ST 0.74 DCC DC No No - 125.00 91 68 14 17 37 This parcel is part of a vacant parking lot.

The lack of improvement value also makes
this site opportunity for redevelopment
into housing. Parcel is City-owned.

Redevelopment Factor(s): 3, 6, 7, 8
73 016-153-05 21 WESTERN DR 0.38 DCC DC No No 11 125.00 47 35 5 9 21 This parcel has a number of old,
dilapidated buildings that have not been
restored in a number of years and has
vacant land adjacent to both sides of the
site. Additionally, this site can be
combined with adjacent parcels 016-153-
03 and -04 for more development
potential.

Redevelopment Factor(s): 2, 3, 5
74 017-101-46 307 RODRIGUEZ ST 0.48 DCC DC No No - 125.00 60 44 7 11 26 This parcel is near a number of sites that
have gained developer interest, which in
turn makes this site and the adjacent APN
017-101-17 likely to be redeveloped for
housing in the next 8 years.

Redevelopment Factor(s): 1, 2, 3, 5, 6, 7
75 017-101-17 321 RODRIGUEZ ST 0.28 DCC DC No No - 125.00 35 26 3 7 16 This parcel is near a number of sites that
have gained developer interest, which in
turn makes this site and the adjacent APN
017-101-46 likely to be redeveloped for
housing in the next 8 years. Improvement
value for the parcel is 58 percent.

Redevelopment Factor(s): 2, 3, 7
76 017-262-56 118 RIVERSIDE DR E 0.79 DCC DC No No - 125.00 99 73 15 18 40 This used car lot has a much lower
improvement value compared to its land
value. Due to this and the site meeting
size criteria, this property can be seen as
underutilized and feasible for
redevelopment into housing in the next 8
years.

Redevelopment Factor(s): 1, 2, 3, 6, 7

Appendix F: Sites Analysis F-13
Table F-18: DWSP Non-Vacant Sites
Inventory/Map
ID APN Site Address Parcel Size(s)
General
Plan
Designation
(Current)
Specific Plan
Zoning
(Current)
Vacancy
5th
Cycle
Sites?
Existing
Units Density Total Yield
Assumed Net Unit Yield
Explanation of
Development/Redevelopment Potential 74%
Yield
Low/Very
Low Mod Above Mod
DWSP Non-Vacant Sites
77 017-681-12 50 UNION ST 0.39 DCC DC No No - 125.00 48 35 7 9 19 As a result of the lack of cars being on the
lot and many vacant car spaces, this used
car lot is considered severely
underutilized. Due to this, this property
can be seen as feasible for redevelopment
into housing in the next 8 years.

Redevelopment Factor(s): 1, 2, 3, 6, 7
Total DWSP Non-Vacant Units 2,283 1,692 297 421 964

Appendix F: Sites Analysis F-14
Table F-19: Commercial Sites for Future Consideration
Inventory/Map
ID APN Site Address Parcel Size(s)
General
Plan
Designation
(Current)
Zoning
(Current) Vacancy
5th
Cycle
Sites?
Existing
Units Density Total Yield
Assumed Net Unit Yield
Explanation of
Development/Redevelopment Potential 80%
Yield
Low/Very
Low Mod Above Mod
Commercial Sites
78 016-031-06 86 MARIPOSA AVE 0.17 GC CO Yes No - 20.00 3 2 0 1 1 Vacant Commercial Land 79 017-113-08 16 PECK ST 0.19 CC DWSP-DC Yes No - 125.00 23 17 3 4 10 Vacant Commercial Land 80 017-183-07 105 UNION ST 0.11 CC DWSP-DC Yes No - 125.00 13 7 1 2 4 Vacant Commercial Land 82 019-043-04 1114 FREEDOM BLVD 0.14 GC CN Yes No - 20.00 2 2 0 1 1 Vacant Commercial Land 83 019-302-15 N/A 1.96 GC CNS Yes No - 30.00 58 47 9 12 26 Vacant Commercial Land 84 019-851-11 N/A 0.76 GC CT Yes No - 20.00 15 12 2 3 7 Vacant Commercial Land 85 019-851-16 102 GREEN VALLEY RD 0.72 GC CT Yes No - 20.00 14 12 2 3 7 Vacant Commercial Land 86 016-121-14 1021 FREEDOM BLVD 0.31 GC CN Yes No - 20.00 6 5 1 1 3 Vacant Commercial Land 87 016-121-13 1031 FREEDOM BLVD 0.24 GC CN Yes No - 20.00 4 3 0 1 2 Vacant Commercial Land 88 016-121-12 1037 FREEDOM BLVD 0.38 GC CN Yes No - 20.00 7 6 1 2 3 Vacant Commercial Land 89 017-321-74 820 EAST LAKE AVE 0.37 GC CNS Yes No - 20.00 7 5 1 1 3 Vacant Commercial Land 90 017-321-02 632 EAST LAKE AVE 1.18 GC CNS Yes No - 30.00 35 28 4 7 17 Vacant Commercial Land 91 019-093-02 1005 EAST LAKE AVE 0.23 GC CN Yes No - 20.00 4 3 0 1 2 Vacant Commercial Land 92 019-092-11 1007 EAST LAKE AVE 0.30 GC CN Yes No - 20.00 6 4 1 1 2 Vacant Commercial Land 93 014-162-01 2134 FREEDOM BLVD 0.40 GC CT Yes No - 20.00 8 6 1 2 3 Vacant Commercial Land 94 016-172-79 580 AUTO CENTER DR 0.47 GC CT Yes No - 20.00 9 7 1 2 4 Vacant Commercial Land 95 019-102-20 1015 EAST LAKE DR 0.30 GC CN Yes No - 36.99 11 9 1 2 6 Vacant Commercial Land 96 019-282-01 25 BLANCA LN 1.59 GC CNS Yes No - 30 48 39 8 10 21 Vacant Commercial Land Total Commercial Zoned Units 273 214 37 54 123

APPENDIX G Element Update COMMUNITY OUTREACH

This Page Intentionally Left Blank

Appendix G: Community Outreach G-1
A. Summary of Community Outreach
Section 65583(c)(9) of the Government Code states
that the Housing Element shall, “include a diligent
effort by the local government to achieve public
participation of all economic segments of the
community in the development of the Housing
Element, and the program shall describe this effort.”
Meaningful community participation is also required in
connection with the City’s Assessment of Fair Housing.

The community’s participation is key in designing a
successful General Plan that is representative of the Watsonville community.

Beginning in Spring 2023, the City conducted a variety of outreach and engagement efforts detailed in this Appendix. As required by Government Code Section 65585(b)(2), all written comments regarding the Housing Element made by the public have previously been provided to each member of the City Council.

1. Online Community Survey
The City provided an Online Community Survey on its Watsonville General Plan 2050 website which was available from April to June 2023. This survey was available in both English and Spanish. The survey was promoted online, at public meetings, and at multiple pop-up events around the City, from the Friday Farmers Markets to Beer Mule Happy Hour. The survey is part of the City’s efforts to shape the future of Watsonville with community guidance at the forefront. The survey asks for the respondents’ opinions about community values, challenges, and visions for the future as well as specific questions about housing preferences and challenges. The City received 503 survey responses, 432 of which were in English and 71 of which were in Spanish. The City has reviewed the survey results and taken them into consideration during this process.

2. Plug into the Community
Engagement Plan
The City provided the Engagement Guide to provide insight into the City’s approach to community engagement
throughout the process of the General Plan Update. The
guide laid out the following community engagement goals for the General Plan Update:
• Understand the community’s assessment of current
conditions in Watsonville;
• Educate the community on all elements of the
General Plan;
• Ensure equitable engagement that encompasses the
entire community; and
• Ensure that community input is reflected in the plan.

Appendix G: Community Outreach G-2
A flyer was included as part of the Community Engagement Plan and provided an overview of the process, its project phases, and major engagement activities.

3. Community Advisory Committee Meeting #1
On March 29th, 2023, the City hosted a Community Advisory Committee Meeting at the Library Community Meeting Room. The topics of discussion in this meeting were to:
• Initiate the Community Advisory Committee for the General Plan Update; • Discuss the roles and responsibilities of the Community Advisory Committee; • Provide an overview of the General Plan Update process, including the Housing Element; • Discuss key issues and opportunities in Watsonville; and • Revisit the guiding principles for the VISTA 2030 General Plan.

Meeting Summary
This meeting primarily discussed the role of the Community Advisory Committee Meeting (CAC), the community engagement process, key issues and opportunities, and expanding on the VISTA 2030 General Plan. Lastly, the meeting reviewed the next steps in the process. The City posted the full presentation slides on the Watsonville General Plan 2050 website.

4. Technical Advisory Committee Meeting #1
On April 12th, 2023, the City hosted a virtual meeting which aimed to meet the following objectives:
• Initiate the Technical Advisory Committee for the General Plan Update. • Discuss the roles and responsibilities of the Technical Advisory Committee. • Provide an overview and schedule of the General Plan Update process, including the Housing Element.
• Discuss key issues, needs, opportunities, and initiatives in Watsonville.

Meeting Summary
This meeting primarily discussed the role of the Technical Advisory Committee (TAC), key issues, needs, and opportunities for housing, land use, airport land use compatibility, community design, safety & public hazards, circulation, transportation, environmental resources management, economic development, and public services & infrastructure. Lastly, the meeting asked for feedback regarding the key initiatives presented as well as the next steps in the process. The City posted the full presentation slides on the Watsonville General Plan 2050 website.

5. Discovery Workshop #1
On May 3rd, 2023, the City hosted a virtual meeting that was designed specifically for the public to learn about the City of Watsonville’s General Plan Update, including the Housing Element, and provide input about what they would like to see for the future of Watsonville. The meeting was held in English with Spanish translation.

Meeting Summary
The Discovery Workshop was held virtually over Zoom on Wednesday, May 3, 2023, from 5:30pm-7:30pm.

There were approximately 65 community members that participated in the workshop with additional community members watching the livestream on Facebook. The workshop was conducted in English and

Appendix G: Community Outreach G-3
Spanish. The goal of the Discovery Workshop was to educate the Watsonville community about the General Plan Update, including the Housing Element, encourage the community to get involved, and solicit ideas from meeting participants on Watsonville assets, challenges, and opportunities for the future that should be included in the General Plan. Throughout the workshop, participants answered questions via an interactive online polling tool (MentiMeter) and provided input into the Zoom “chat” box. The City posted the meeting summary on the Watsonville General Plan 2050 website.

Workshop Participant Input & Feedback
Several questions were posed to attendees during the first portion of the workshop to get a sense of who was in attendance. Highlights include:

Which of the General Plan Topics Mentioned Most Interest You? Key topics and required elements anticipated to be addressed in the general plan were shared and participants were asked which ones are most important to them. The top three topics emerging from the polling exercise were: land use and community design; housing; and recreation, parks, and open space.

Which of the Community Assets Presented Have the Most Meaning for You? The next portion of the workshop focused on local assets. A series of initial assets and unique attributes were presented. Participants were asked to identify the most meaningful Watsonville assets from that list. The top three community assets identified by participants included natural resource access; walkable downtown neighborhood; and proximity to parks, schools, day care centers, community centers, trails, and transit. These assets were closely followed by agricultural setting and small-town character.

Appendix G: Community Outreach G-4
What Are Some Other Important Watsonville Assets?
Participants were then asked to share and record directly into the survey other assets that they thought were not addressed or not fully addressed. The top additional assets identified by participants were diversity, arts, modern housing, the people, and the airport.

Which of the Challenges Presented Do You Feel Are Most Important? The presentation then went over key challenges for the City of Watsonville. A set of challenges were presented to participants, and they were asked to identify which challenges are most important to them.

The top three challenges for the City of Watsonville identified by participants were gaps in the pedestrian and bicycle network, the need for more housing, and job diversification and expansion.

Appendix G: Community Outreach G-5
What Are Some Key Watsonville Challenges?
Participants were then asked to identify key challenges that were not mentioned. The top challenges mentioned were education, crime, homelessness, traffic accidents, and gentrification. The word cloud showcases other community thoughts and opinions.

What Should Be Some Priorities for Existing Watsonville Neighborhoods? Participants were asked to identify priorities for existing Watsonville neighborhoods. Participants identified the need for infill and new housing and improving neighborhood streets. These were followed by the desire for more nearby shops, services, recreational amenities; the need to plant more trees and general beautification of the city; and improving access to transit. Lower priorities included renovating existing housing and protecting the existing character of the neighborhoods.

Appendix G: Community Outreach G-6
What Kind of Housing Would You Like to See?
Participants were then asked what new types of housing they would like to see. Responders indicated they would like to see new mixed-use (apartments above retail or office), followed by condominium (ownership) housing and then affordable housing.

What Else Would You Like to See Along and Near These Corridors? Attendees were asked to list what additional opportunities they would like to see along and near the above corridors. Top preferences for changes and improvements that participants indicated they would like to see along Watsonville’s corridors consisted primarily of public realm improvements, including safe streets, new parks and parklets, more outdoor seating, and more trees. Other suggestions included housing options such as tiny homes, destinations such as local coffee shops, breweries, and bowling alleys, and community benefits such as childcare centers, bathrooms, and more wetlands art.

Appendix G: Community Outreach G-7

6. Stakeholder Focus Group Meetings
On June 6, 2023, the City of Watsonville held a series of stakeholder focus groups to discuss topics relevant to the ongoing General Plan Update and Housing Element Update projects. Focus groups were led by City staff and members of the consultant teams for each project. A range of stakeholder groups were represented, as further described below. The following summarizes key discussion points and comments related to housing in the City, based on two focus group meetings: Housing and Human & Community Services.

Housing Groups
The Housing focus group meeting was held to better understand the existing housing-related challenges in the City and the community’s housing needs. The focus group was attended by representatives from MidPen Housing Developers, Envision Housing, Eden Housing, local realtors, local banks, local property management groups, and the Community Opportunity to Purchase Act (COPA).

Based on the feedback provided, the key challenges in the City include overall housing affordability, the need for for-sale housing, and the provision of workforce housing (e.g., agriculture workers, teachers, day laborers), housing for people with disabilities, and middle-class housing (80 to 100% AMI). Additionally, due to the cost of housing in the City, there has been an increase in overcrowding with many families living in garages or doubling up in apartments to afford rent. A number of lower-income individuals have also relocated outside the City to areas including Salinas, Fresno, and other parts of the Central Valley.

Stakeholder representatives also expressed a need for housing that serves special needs groups, including those with disabilities and unhoused individuals, including many unhoused students. Currently, the same services in the City target these groups, however their needs vary and housing-related resources and developments should be distinct.

To address housing-related challenges, stakeholder representatives suggested a number of potential priorities and programs for the Housing Element: a focus on 2–3-bedroom units for larger families, transitional housing, an additional homeless shelter in the southern portion of the County, transitional

Appendix G: Community Outreach G-8
housing, and affordable workforce housing. When asked whether ownership or rental housing should be prioritized, representatives expressed that there is a demand for both, but there have not been any new for-sale units on the market in many years. There are many barriers to entry for ownership, but people are still interested in this if there are programs to make it more attainable. As such, programs such as the City’s down payment assistance program should continue to be supported.

Further, to facilitate efficient progress on the City’s housing needs, stakeholder representatives recommended finding opportunities to collaborate with other cities and the County, Catholic charities, and the school district to address the needs of unhoused students. While continuing to develop housing, a focus should also be placed on maintaining other services in the city, including public facilities and services (libraries, etc.) to meet demand associated with population growth.

Despite the housing challenges and needs, stakeholder representatives noted that there are also a number of things that are valued by the community. City staff is known for being very supportive of affordable housing, while many other cities in the region are not. Additionally, City staff is helpful and supportive of developers through the development process. Concerning community character, many people appreciate the small-town feeling and value maintaining community character while continuing to develop additional housing.

Human & Community Services
This meeting was started by addressing the stakeholder representatives’ vision for the City. Concerning housing, the need for affordable housing was a key focus. Many people, primarily farmworkers, are leaving the City for other cheaper cities (e.g., Salinas and San Juan Bautista). Of those who do remain in the City, many households are living in garages. To address these concerns, representatives suggested government assistance with managing the existing housing stock and assisting community members with buying homes through offering down payment assistance or programs similar to a housing trust fund.

Many obstacles were identified to achieving the vision, including community members not being aware of the services that are currently available to them, scaling back of available services since Covid, and the distance of housing from available community services. Additionally, community services and infrastructure need to be maintained alongside housing development to meet the needs of residents. This includes improving bicycle/pedestrian infrastructure throughout the City, as some developments don’t have safe access for people trying to walk to/from school, bus stops, etc. Further, there should be a priority placed on including recreational or community facilities as part of developments to serve the needs of residents.

To help achieve the City’s housing needs, stakeholders suggested several programs/policies including:
• Incentivizing housing through density bonuses;
• State-supported housing;
• Inclusionary Zoning Ordinance;
• Mixed-use development;
• Placing supportive services along ground-floor frontages with housing on top; and • Collaboration with faith-based organizations to reconceptualize the properties they own (e.g. allowing housing on church properties).

Appendix G: Community Outreach G-9

7. Community Advisory Committee Meeting #2
On August 16, 2023, the City hosted a Community Advisory Committee Meeting at the Library Community Meeting Room. The objectives of this meeting were to:
• Discuss Fair Housing priorities within Watsonville,
• Evaluate sites feasible for development/redevelopment around the City, • Provide input on housing policies that should be considered for implementation; and • The relation of sites selection to the Downtown Watsonville Specific Plan.

Meeting Summary
This meeting primarily focused on housing priorities in the City and suitable sites that would provide fair housing throughout Watsonville. The City posted the full presentation slides on the Watsonville General Plan 2050 website. Topics discussed included: the need to define each income category and its relation to sites selected, homeless resources, the need for more ownership opportunities, and opportunities to create a “15-minute city,” which was described as a city that has all the necessary resources for the community living there within a 15-minute walk or bike ride. One important point of concern was the availability of land within the city limits for development. This carried over to the second topic of suitable sites. Over the course of this conversation, the need for workforce housing for healthcare workers, schoolteachers, and students were discussed. In addition, rezoning and the re-use of certain locations such as K-Mart and the Fox Theater were evaluated. When discussing the airport and surrounding areas, some residents were concerned with adequate distance between homes and the airport and land use restrictions related to airport safety zones. In addition, some individuals supported and others opposed dismantling the airport to provide more opportunities to develop housing in the area.

8. City Council & Planning Commission Study Session
On September 26, 2023, the City held a Joint City Council/Planning Commission Meeting to discuss the Draft Housing Element and the candidate site selection inventory in the City Hall Community Room. The objectives of this meeting were to:
• Provide an overview of the Housing Element update
process and the Draft Housing Element;

Appendix G: Community Outreach G-10
• Discuss Fair Housing priorities within Watsonville;
• Evaluate sites feasible for development/redevelopment within the City; and
• Provide an overview of how the capacity of the candidate sites selected relates to the Downtown Watsonville
Specific Plan and the City’s RHNA.

Meeting Summary
During the study session, the City Council made the following points:
• Expressed concerns regarding the availability of diverse housing types and opportunities for all demographics, such as ownership condominiums, townhomes, and single-family dwellings. • ADU projections are lower than what is reflected in the presentation due to the nature of city residents.
• A three-story development by Metro station should be a part of the pipeline projects inventory but was not identified during staff presentation.
• Expressed need for amenities for residents and visitors to enjoy and keep business within the city.
• Discussed ramifications of annexation and its role in housing. • Raised concerns about environmental constraints in the city and consideration by Association of Monterey Bay Area Governments (AMBAG).

Additionally, the Planning Commission agreed with City Council members that the availability of diverse housing types is important to consider. A member of the public commented on enhancing local control due to Watsonville’s status as a charter city; however, no other substantive comments from the public regarding the housing element were made.

Appendix G: Community Outreach G-11
B. Public Comments on Draft Housing Element
This section contains a summary of public comments received during the 2023-2031 Housing Element Update process.

1. Pre-HCD Submittal Public Review Draft (December ‘23 - January ‘24) The City made the Draft 6th Cycle Housing Element available for public review and comment from Friday, December 22, 2023, to Friday, January 26, 2024. A total of 13 written comments were received. All comments received during this period are summarized below. All written comments received are also provided following this section.

Summary of Public Review Comments Received:
• The Regional Housing Needs Allocation (RHNA) – comments related to the methodology of determining the RHNA for the City.
• Public Review Requirements – comments related to requirements of the Public Review period, such as timeline and accessibility of the Housing Element document. • Site Specific Development – comments related to specific sites not included in the Housing Element Update.
• The 2050 General Plan Update – comments related to the overall status of the 2050 General Plan Update and its various elements in relation to housing. • The 2005 General Plan – comments related to consistency in policies and programs in the upcoming update to the City’s General Plan.
• Agriculture – comments related to the agricultural land outside of the city limits and its balance with providing new housing opportunity.
• Transportation – comments related to the promotion of transportation strategies that could provide easier access to housing.
• Homelessness – comments related to services that help persons experiencing homelessness. • Housing Types – comments related to the potential types of housing that can be built during the 6 th Cycle.
• Housing Assistance – comments related to the types of housing assistance provided by the City. • The Downtown Watsonville Specific Plan (DWSP) – comments related to the DWSP document and its relation to the Housing Element.
• Clarification – comments related to clarification of various topics discussed in the Housing Element.

The City reviewed and considered these comments for a 10-day period following the close of the public comment period (January 27 to February 11). The HCD Submittal Draft Housing Element reflects this review and consideration of these comments. The comments received did not necessitate any substantial changes or modifications to the policies or analysis contained in the Draft Housing Element.

For privacy purposes, personal addresses and other contact details of commentors have been redacted.

Appendix G: Community Outreach G-12

2. HCD Submittal Public Review Draft
On July 12, 2024, the City posted revisions to the Housing Element for the mandated 7-day public review. Stakeholders were also directly notified of the updated draft. No public comments were received.

3. HCD Submittal Public Review Draft
On September 6, 2024, the City posted revisions to the Housing Element for the mandated 7-day public review. Stakeholders were also directly notified of the updated draft. One public comment was received.

Appendix G: Community Outreach G-13
Attachment A: Public Comments Received
(this page is intended to be blank)

Appendix G: Community Outreach G-14
Pre-HCD Submittal Draft
Public Comment #1

Appendix G: Community Outreach G-15
Pre-HCD Submittal Draft
Public Comment #2

Appendix G: Community Outreach G-16
Pre-HCD Submittal Draft
Public Comment #3

Appendix G: Community Outreach G-17
Pre-HCD Submittal Draft
Public Comment #4

Appendix G: Community Outreach G-18
Pre-HCD Submittal Draft
Public Comment #4 – Continued

Appendix G: Community Outreach G-19
Pre-HCD Submittal Draft
Public Comment #5

Appendix G: Community Outreach G-20
Pre-HCD Submittal Draft
Public Comment #5 – Continued

Appendix G: Community Outreach G-21
Pre-HCD Submittal Draft
Public Comment #5 – Continued

Appendix G: Community Outreach G-22
Pre-HCD Submittal Draft
Public Comment #6

Appendix G: Community Outreach G-23
Pre-HCD Submittal Draft
Public Comment #7

Appendix G: Community Outreach G-24
Pre-HCD Submittal Draft
Public Comment #8

Appendix G: Community Outreach G-25
Pre-HCD Submittal Draft
Public Comment #9

Appendix G: Community Outreach G-26
Pre-HCD Submittal Draft
Public Comment #10

Appendix G: Community Outreach G-27
Pre-HCD Submittal Draft
Public Comment #10 – Continued

Appendix G: Community Outreach G-28
Pre-HCD Submittal Draft
Public Comment #10 – Continued

Appendix G: Community Outreach G-29
Pre-HCD Submittal Draft
Public Comment #11

Appendix G: Community Outreach G-30
Pre-HCD Submittal Draft
Public Comment #12

Appendix G: Community Outreach G-31
Pre-HCD Submittal Draft
Public Comment #12 – Continued

Appendix G: Community Outreach G-32
Pre-HCD Submittal Draft
Public Comment #13

Appendix G: Community Outreach G-33
Pre-HCD Submittal Draft
Public Comment #14

Appendix G: Community Outreach G-34
Pre-HCD Submittal Draft
Public Comment #14 – Continued

APPENDIX H Element Update GLOSSARY

This Page Intentionally Left Blank

Appendix H: Glossary H-1
Definitions
American Community Survey. Demographic data source from the United States Census Bureau related to population, education, employment, age, race/ethnicity, housing, internet access, and transportation.

Area Median Income. Area median income for Santa Cruz County as published by the State of California pursuant to California Code of Regulations, Title 25, Section 6932, or successor provision. Commonly abbreviated as AMI. Area median income is the median or average income of a specific area and is based on household size.

Assessment of Fair Housing. An analysis of housing discrimination and residential segregation and exclusion based on a protected class such as race, gender, ethnicity, disability, income, religion, familial status, or national origin. The assessment is mandated by Assembly Bill 686 (AB 686)(2019) and implemented through various policies and programs in the Affirmatively Furthering Fair Housing section of the Housing Element.

Acre Foot Per Year. A unit of measurement for water supply volume that measures the amount of water that can cover one acre of land one foot deep for one year. One thousand acre-feet per year is equivalent to 0.8921 million gallons per day1.

Below-Market-Rate Housing. Any housing unit specifically priced to be sold or rented to low- or moderate-income households for an amount less than the fair-market value of the unit. Both the State of California and the U.S. Department of Housing and Urban Development set standards for determining which households qualify as “low income” or “moderate income.” The financing of housing at less than prevailing interest rates.

Child Care Home for Children. A private family home in which is provided daytime care (including the furnishing of supervision, recreation, food, and rest) for not more than six (6) children, including children of the proprietary family.

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

Conditional Use Permit. A type of authorization by the local government which allows specific land uses on a property to occur that is not otherwise listed in the municipal code. Conditional use permit applicants typically go through a discretionary approval process such as design review, environmental impact review, public hearings, and other reviews specific to the jurisdiction.

Cost Burden: Monthly housing costs (including utilities) exceeding 30 percent of monthly income. 1 Groundwater Exchange. Accessed on July 2023 at https://groundwaterexchange.org/glossary/acre-feet-per-year/.

Appendix H: Glossary H-2
Cost Burdened, Severely. Monthly housing costs (including utilities) exceeding 50 percent of monthly income.

Coverage. The percent of the total site area covered by structures.

Density Bonus. The allocation of development rights that allow a parcel to accommodate additional square footage or additional residential units beyond the maximum for which the parcel is zoned, usually in exchange for the provision or preservation of an amenity such as affordable rent for lower income residents at the same site or at another location.

Density, Residential. The number of permanent residential dwelling units per acre of land. Densities specified in the General Plan may be expressed in units per gross acre or per net developable acre.

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

Deed-Restricted Affordable. A housing unit that has a use-restriction that limits the rent or purchase price and requires occupancy by low-income housing for a set period of time.

Dormitory. A residential facility with three (3) 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 two (2) paying guests per room.

Duplex. A building designed as a single structure, containing two (2) separate living units, each of which is designed to be occupied as a separate permanent residence for one housekeeping unit.

Dwelling Group. a group of two (2) or more detached or semi-detached buildings, each of which contains one or more dwelling units, located on a parcel of land in one ownership.

Dwelling, multi-family. Any building, with three (3) or more individual dwellings with separate cooking, sleeping, and bathroom facilities for each dwelling. The term shall include flats and apartments.

Dwelling, single-family. One detached dwelling per legal lot of record designed with a kitchen, bedroom(s) and bathroom(s), used exclusively for residential purposes by one housekeeping unit.

Dwelling, townhouse. 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.

Dwelling, townhouse group. A group of not fewer than two (2) townhouse units arranged side-by-side and separated from any other townhouse group by a yard area.

Dwelling unit. One or more habitable rooms which are occupied, or which are intended or designed to be occupied, by one housekeeping unit, with a living area(s), bedroom(s), bathroom(s), a kitchen, and a dining area.

Dwelling unit, accessory (accessory dwelling unit). An attached or a detached accessory residential dwelling unit that provides complete independent living facilities for one (1) or more persons and is located on a lot with a proposed or existing primary residence/residences. It shall include permanent

Appendix H: Glossary H-3
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.

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

Emergency Shelter. Housing with minimal supportive services for homeless persons that is limited to occupancy of six (6) months or less by a homeless person. No individual or household may be denied emergency shelter because of an inability to pay.

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

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

Family. An individual, or two or more persons living together and occupying a dwelling which is not a rooming house, lodging house, or residential institutional use.

Foster Home (Children). A private family home for foster children in which is provided full-time care for not more than six (6) 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.

Foster Home (Family). A boarding home for not more than six (6) aged ambulatory guests as licensed by the Department of Social Welfare of the County.

General Plan. Plan for the future development of the City of Watsonville, California, as adopted by the City Council and as amended from time to time.

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

Group Care Homes. A boarding home for seven (7) to fifteen (15) aged ambulatory guests as licensed by the Department of Social Welfare of the County.

HOME Investment Partnership Program. A grant program administered by the U.S. Department of Housing and Urban Development (HUD) on a formula basis for states and localities. HOME is the largest federal block grant to state and local governments designed exclusively to create affordable housing for low-income households. HOME funds are awarded annually as formula grants to participating jurisdictions (PJs). This grant allots money for building, buying, and/or rehabilitating affordable housing for rent or homeownership or providing direct rental assistance to low-income people.

Appendix H: Glossary H-4
Household: All people living in a housing unit. Members of a households can be related (see family) or unrelated.

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

Housing and Urban Development, U.S. Department. A cabinet-level department of the federal government that administers housing and community development programs.

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

Housing Payment. For ownership housing, this is defined as the mortgage payment, property taxes, insurance, and utilities. For rental housing, this is defined as rent and utilities.

Housing Problems: There are four housing problems in the CHAS data: 1) housing unit lacks complete kitchen facilities; 2) housing unit lacks complete plumbing facilities; 3) household is overcrowded; and 4) household is cost burdened. A household is said to have a housing problem if they have any 1 or more of these 4 problems.

Implementation Measures. Actions, procedures, programs, or techniques that carry out policies.

Land Use Classification. The systematic grouping of related land uses (activities on land) to facilitate the collection, tabulation, analysis, and presentation of land use data.

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

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

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

Metropolitan Planning Organization. A policy-making organization comprised of representatives from local government and governmental transportation authorities that implements a transportation improvement program for urbanized areas within a region.

Mixed-use. Properties on which various uses such as office, commercial, institutional, and residential, are combined in a single building or on a single site in an integrated development project with significant functional interrelationships and a coherent physical design. A “single site” may include contiguous properties.

Appendix H: Glossary H-5
Mobile Home. 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. Mobile homes are considered dwelling units for the purpose of this title only when they are located in mobile home parks.

Mobile Home Park. Any parcel of land, or portion thereof, which is used or offered for use as a location for one or more mobile homes.

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

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

Overcrowded Housing Unit. A housing unit in which the members of the household or group are prevented from the enjoyment of privacy because of small room size and housing size. The U.S. Bureau of Census defines an overcrowded housing unit as one which is occupied by more than one person per room.

Parcel. A lot or tract of land.

Planned Development District. A master planning mechanism that establishes alternative zoning regulations for the development of large parcels of land in residential, commercial, industrial, and open space designated areas. The purpose of a planned development district is to encourage innovative uses of land that promote a jurisdiction’s vision and goals.

Planned Unit Development. A zoning tool used by jurisdictions to implement a planned development district; developers can also initiate a PUD through a comprehensive plan that includes a mix of land uses such as residential, commercial, recreational, open space, and infrastructure, and which dictates how the development is designed.

Policy. A specific statement of principle or of guiding action that implies clear commitment but is not mandatory. A general direction that a governmental agency sets to follow, in order to meet its objectives before undertaking an action program.

Poverty level. As used by the U.S. Census, families and unrelated individuals are classified as being above or below the poverty level based on a poverty index that provides a range of income cutoffs or “poverty thresholds” varying by size of family, number of children, and age of householder. The income cutoffs are updated each year to reflect the change in the Consumer Price Index.

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

Racially or Ethnically Concentrated Areas of Poverty. R/ECAP is a metric that analyzes the spatial distribution of race and income at a census tract level throughout a jurisdiction. R/ECAP areas typically

Appendix H: Glossary H-6
have a majority non-White population and a poverty rate that exceeds 40 percent or is three times the average tract poverty rate for the metropolitan area, whichever is lower.

Racially Concentrated Areas of Affluence. Similar to R/ECAP, RCAA is a metric that analyzes the spatial distribution of race and income at a census tract level. RCAA areas typically have a White, Non-Hispanic population rate that is greater than 80 percent and a median household income of at least $125,000 or more.

Redevelop. To demolish existing buildings; or to increase the overall floor area existing on a property; or both; irrespective of whether a change occurs in land use.

Regional. Pertaining to activities or economies at a scale greater than that of a single jurisdiction and affecting a broad geographic area.

Regional Housing Needs Allocation. A quantification by the local council of governments of existing and projected housing need, by household income group, for all localities within a region.

Residential or R-District. Any district classification the symbol for which has an “R” prefix.

Residential Care Facilities. 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 (24) 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. (California Health and Safety Code Section 1502.)
Retirement Home. Multiple dwelling units containing not less than four (4) dwelling units which are designated and intended to provide suitable living quarters and specialized services to elderly, or retired, ambulatory persons. Such units shall be designed to serve elderly persons and may include such special facilities and services as, but not limited to, communal cooking and eating areas, special dietary programs, wheelchair ramps, hallway handrails, and other special features and programs intended to serve the needs of elderly, retired persons.

Special Housing Needs. Special housing needs are those associated with specific demographic or occupational groups that call for specific Housing Element program responses. State law specifically requires Housing Element analysis of the special housing needs of people who are elderly or disabled (including developmental disabilities), female-headed households, large families, farmworkers, and people experiencing homelessness. These special-needs groups often spend a disproportionate amount of their income to secure safe and decent housing and are sometimes subject to discrimination based on their specific needs or circumstances.

Special Needs Population. Disabled Households, agricultural workers, single-parent households, victims or survivors of domestic or physical abuse, households enrolled in Welfare-to-Work programs, homeless persons or persons at risk of becoming homeless, chronically ill persons including those with HIV and mental illness, displaced dependent parents (or expectant dependent parents), emancipated foster youth, individuals exiting from institutional settings, chronic substance abusers, or other specific groups with

Appendix H: Glossary H-7
unique housing needs as determined by the Housing and Community Development Department. “Special Needs Populations” do not include seniors or the frail elderly unless they otherwise qualify as a Special Needs Population.

Specific Plan. A compilation of all ordinances, maps, regulations, documents, or other descriptive material, based on the General Plan, setting forth in detail a plan or program for the effectuation of a particular element, or portion of an element, of the General Plan.

Subsidize. To assist by payment of a sum of money or by the granting to terms or favors that reduces the need for monetary expenditures. Housing subsidies may take the forms of mortgage interest deductions or tax credits from federal and/or state income taxes, sale, or lease at less than market value of land to be used for the construction of housing, payments to supplement a minimum affordable rent, and the like.

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

Supportive Housing. Housing with no limit on length of stay, that is occupied by the target population as defined in Section 14-18.802.1, 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.

Transitional Housing. Temporary housing provided to individuals or families recovering from the effects of economic dislocation or emotional/mental problems and/or substance abuse. Housing involving onsite 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” shall also mean 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 (6) months.

Appendix H: Glossary H-8
Acronyms
ACS: American Community Survey
ADU: Accessory Dwelling Unit
AFC: Association of Faith Communities
AFH: Assessment of Fair Housing
AFY: Acre-Foot Per Year
ALUPH: Airport Land Use Planning Handbook
AMBAG: Association of Monterey Bay Area
Governments
AMI: Area Median Income
ASR: Applied Survey Research
BMR: Below Market Rate
CALHFA: California Housing Finance Agency
Multifamily Programs
CAR: The California Association of Realtors
CCRC: California Community Reinvestment
Corporation
CDBG: Community Development Block Grant
CDDS: California Department of Developmental
Services
CDF: California Department of Forestry and Fire
Protection
CESH: California Emergency Solutions and Housing
Program
CHAS: Comprehensive Housing Affordability Strategy
CoC: Continuum of Care
COG: Council of Government
CRLA: California Rural Legal Assistance
CUP: Condition Use Permit
DFEH: California’s Department of Fair Employment
and Housing
DOF: Department of Finance
DWSP: Downtown Watsonville Specific Plan
EDD: California Employment Development
Department
ECS: Encompass Community Services
ELI: Extremely Low-Income
EMS: Emergency Medical Services
FEHA: California Fair Employment and Housing Act
FHA: Federal Housing Administration
FHAA: Federal Fair Housing Amendment Act
FHEO: Office of Fair Housing and Equal Opportunity
FIT: Families in Transition
FMR: Fair Market Rent
HACSC: Housing Authority of the County of Santa
Cruz
HAP: Homeless Action Partnership
HAMI: HCD Area Median Family Income
HCD: California State Department of Housing and
Community Development
HCV: Housing Choice Voucher
HEAP: Homeless Emergency Aid Program
HERO: The Homeless Engagement Resources
Officers
HHAP: Homeless Housing Assistance and Prevention
Program
HMDA: Home Mortgage Disclosure Act
HOPES: Homeless Outreach, Proactive Engagement
Services
HPHP: Homeless Persons’ Health Project
HUD: U.S. Department of Housing and Urban
Development
ICC: The International Code Council
JADU: Junior Accessory Dwelling Unit
LIHTC: Low-Income Housing Tax Credit
METRO: Metropolitan Area Transit Authority
MGD: Million Gallons Per Day
MHI: Median Household Income
MOBPSP: Manabe-Ow Business Park Specific Plan
MPO: Metropolitan Planning Organizations
OEHHA: The California Office of Environmental
Health Hazard Assessment
PBV: Project Based Vouchers
PG&E: Pacific Gas and Electric Company
PD: Planned Development District
PUD: Planned Unit Development
PVSS: Pajaro Valley Shelter Services
PVUSD: Pajaro Valley Unified School District
R/ECAP: Racially Concentrated Areas of Poverty
RCAA: Racially Concentrated Areas of Affluence
RFP: Request For Proposal
RHNA: Regional Housing Needs Allocation
SARC: San Andreas Regional Center
SCA: South County Adult
SRO: Single Room Occupancy
SS: Suspended Solids
SSI: Supplemental Security Income
SSVF: Supportive Services for Veterans Families
TAY: Transition Age Youth
TBRA: Tenant Based Rental Assistance
TCAC: California Tax Credit Allocation Committee
UCSC: University of California, Santa Cruz
UDP: Urban Displacement Project
VASH: HUD-Veterans Affairs Supportive Housing
Program
WFD: Watsonville Fire Department
WPD: Watsonville Police Department
WWTF: Watsonville Wastewater Treatment Facility

CITY OF WATSONVILLE
6TH CYCLE HOUSING ELEMENT

TIMELINE
• JANUARY 2023 – CONTRACT SIGNED
• DECEMBER 2023 – PUBLIC REVIEW DRAFT
• FEBRUARY 2024 – FIRST SUBMITTAL TO HCD
• JULY 2024 – SECOND SUBMITTAL
• AUGUST 2024 – INTERIM SUBMITTAL #1
• SEPTEMBER 2024 – INTERIM SUBMITTAL #2
• SEPTEMBER 17, 2024 – CONDITIONAL

CERTIFICATION LETTER RECEIVED

AGENDA

HOUSING ELEMENT OVERVIEW
CHAPTER 1 - INTRODUCTION
CHAPTER 2 – HOUSING PLAN

APPENDICES

NEXT STEPS

THE HOUSING ELEMENT IS A CRITICAL

TOOL FOR PLANNING FOR AND

ACCOMMODATING CURRENT AND

FUTURE HOUSING GROWTH AND
SERVICES OVER THE NEXT 8 YEARS.

ONE OF SEVEN STATE - MANDATED

ELEMENTS IN THE WATSONVILLE
GENERAL PLAN.

REQUIRED TO BE UPDATED EVERY
EIGHT YEARS IN ‘CYCLES’
CURRENTLY IN THE 6 TH CYCLE

CONTAINS DETAILED GOALS, POLICIES,

AND OBJECTIVES FOR THE

PROTECTION, IMPROVEMENT, AND
PRODUCTION OF HOUSING.

HOUSING ELEMENT OVERVIEW

CHAPTER 1 - INTRODUCTION
 State Requirements
Ensure every resident has access to housing and a suitable living environment  Regional Housing Need Allocation (RHNA)
Methodology used for determining future housing need, by income category, throughout the State based on growth in population, households, and employment.  Relationship to Other General Plan Elements
Goals, policies, and programs must be consistent with those established in all other elements in the City’s General Plan.
 Public Participation
Local governments must make diligent and continued efforts to achieve public participation from all economic segments of the community  Data Sources
U.S. Census, American Community Survey (ACS), 2022 Homeless Point-In-Time Count & Survey, etc.
 Housing Element Organization
Chapter 1, Chapter 2, Appendices A-H

CHAPTER 1 – INTRODUCTION

REGIONAL HOUSING NEEDS ALLOCATION
(RHNA)

CHAPTER 1 – INTRODUCTION

PUBLIC PARTICIPATION
• Four public outreach meetings between February and April 2023 • Joint Planning Commission & City Council Study Session on September 26, 2023 • Three public review periods for draft Housing Element submittals • December 22, 2023, to January 26, 2024
• 13 comments from 12 individuals
• Some changes made, but no substantive changes required • July 12, 2024, to July 19, 2024
• 1 comment received
• No substantive changes required
• September 6, 2024, to September 13, 2024
• 1 comment received
• No substantive changes required
• Community outreach summary in Appendix G

CHAPTER 1 – INTRODUCTION

HOUSING ELEMENT ORGANIZATION
• Chapter 1 – Introduction
• Chapter 2 – Housing Plan
• Appendix A – Review of Past Performance
• Appendix B – Housing Needs Assessment
• Appendix C – Housing Resources
• Appendix D – Housing Constraints
• Appendix E – Fair Housing Analysis
• Appendix F – Sites Analysis
• Appendix G – Community Outreach
• Appendix H – Glossary

CHAPTER 2 – HOUSING PLAN
Goal 1: Improve, conserve, and preserve both the safe condition of and the continued availability of Watsonville’s existing affordable housing stock to meet the needs of all economic segments of the community.

Goal 2: Expand and protect housing opportunities for all economic segments and special needs groups within the community.

Goal 3: Provide housing opportunity for Watsonville’s share of the regional housing need for all income and special needs groups.

Goal 4: Where appropriate, mitigate unnecessary governmental constraints to the maintenance, improvement, and development of housing.

Goal 5: Ensure fair and equal housing opportunity for all persons regardless of race, religion, sex, marital status, family type, ancestry, national origin, color, or other protected status.

CHAPTER 2 – HOUSING PLAN

1. Housing and Neighborhood Conservation
• Program A.1 to A.6

2. Provision of Housing Assistance
• Program B.1 to B.8

3. Housing Production
• Program C.1 to C.12

4. Removal of Governmental Constraints
• Program D.1 to D.13

5. Equal Housing Opportunity
• Program E.1 to E.7

CHAPTER 2 – HOUSING PLAN
Programs of Note:

Program A.6 – Displacement Protection
• Apply for at least one grant per year; Present anti-displacement options to City Council by December 2026 with the goal of adopting some polices or programs by December 2027.

Program C.2 – Explore Additional Residential Opportunity Sites • Research opportunity sites in commercial and institutional areas within 3 years and adopt Municipal Code amendments within 4 years.

Program C.7 – Transitional Housing and Emergency Shelters • Adopt Code amendments permitting transitional housing by-right in all residential zoning districts within one year.

Program C.8 – Supportive Housing
• Adopt Code amendments permitting supportive housing by-right in all residential zoning districts and establish a monitoring program by June 2026.

CHAPTER 2 – HOUSING PLAN
Programs of Note:

Program C.9 – Low-Barrier Navigation Centers
• Amend the Zoning Ordinance to include procedures and regulations to process low-barrier navigation centers in compliance with State law by June 2026.

Program C.11 – SB 35 Streamlining
• Establish streamlining procedures and objective standards for qualifying projects under SB 35 to be approved ministerially by December 2025.

Program C.12 – Surplus Land Act
• Declare City-owned sites as surplus and approve a resolution making the findings that the project will be put out to competitive bid by December 2026.

Program D.3 – Design Review Process
• Update the City’s Residential Design Guidelines to provide objective design standards by December 2026.

CHAPTER 2 – HOUSING PLAN
Programs of Note:

Program D.7 – Development Constraints for Affordable Housing • Amend the parking requirements in the Zoning Ordinance and any other constraints to reduce potential constraints for multifamily developments by June 2026.

Program D.8 – Require 50% Residential Use in Downtown Central Core Area
• Amend requirements for applicable sites in the Downtown Watsonville Specific Plan to require a minimum of 50 percent of the proposed floor area to be for residential use for mixed use projects by June 2026.

Program D.13 – Building Height Limits
• Adopt an amendment to the DWSP increasing height limits for the Downtown Neighborhood and Downtown Industrial zoning districts to six stories and for the Downtown Core zoning district to eight stories by January 2027.

CHAPTER 2 – HOUSING PLAN
Revision to Program D.8 – Require 50% Residential Use in Downtown Central Core Area
Program D.8: PermitRequire 50 Percent Residential Use in Downtown Central Core Area Pursuant to State law, identified opportunity sites that permit a mix of uses must provide a minimum of 50 percent of the proposed floor area to residential uses when a component of a mixed use project. Sites identified in the Downtown Watsonville Specific Plan (DWSP) shall incorporate this requirement. The City will incorporate this provision to require a minimum of 50 percent residential use on these sites.

Objective:
• Amend requirements for applicable sites in the Downtown Watsonville Specific Plan to allow require a minimum of 50 percent of the proposed floor area to be for residential use for mixed use projects.

Timeframe: Amend Zoning Ordinance by June 20242025
Responsible Agency: Community Development Department
Funding Source: General Fund Page 441 of 452
CHAPTER 2 – HOUSING PLAN
Program D.13 – Building Height Limits
• City Staff provided the following justification for the existing four- and six-story height limits in the Downtown Watsonville Specific Plan (DWSP) area:
• Detailed description of engagement with nonprofit and for-profit developers in crafting the DWSP
• Testimonial from non-profit developer that the four- and six-story height limits are not a constraint on housing development
• Local example of the project at 445 Main Street that was able to provide 101 du/acre in a four-story project
• Table D-4 highlighting projects in downtown Santa Cruz that provide densities at or above the 85 du/acre and 125 du/acre DWSP densities in the four- and six-story height range.
• Hypothetical project examples demonstrating how densities could be achieved at the four- and six-story height limits
• 1-Acre Redevelopment in the Downtown Neighborhood Zoning District • 2-Acre Redevelopment in the Downtown Core Zoning District • HCD still demanded increased building heights.
• HCD provided no evidence or justification demonstrating why the densities could not be achieved with the four- and six-story height limits. Page 442 of 452 CHAPTER 2 – HOUSING PLAN
Program D.13 –Building Height
Program D.13: Building Height Limits
Adopt changes to the Downtown Watsonville Specific Plan (DWSP) modifying the four-story height limit for the Downtown Neighborhood and Downtown Industrial zoning districts up to a maximum of six stories and the six-story height limit for the Downtown Core zoning district up to a maximum of eight stories.

Objectives:
• Adopt an amendment to the DWSP increasing height limits for the Downtown Neighborhood and Downtown Industrial zoning districts up to a maximum of six stories and for the Downtown Core zoning district up to a maximum of eight stories.

Timeframe: By January 2027
Responsible Agency: Community Development Department
Funding Source: General Fund Page 443 of 452

APPENDICES
Appendix A – Review of Past Performance
Appendix B – Housing Needs Assessment
Appendix C – Housing Resources
Appendix D – Housing Constraints
Appendix E – Fair Housing Analysis
Appendix F – Sites Analysis
Appendix G – Community Outreach
Appendix H - Glossary Page 444 of 452
APPENDIX E – FAIR HOUSING ANALYSIS
• 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.

APPENDIX E – FAIR HOUSING ANALYSIS
Fair Housing Analysis:

1. Resource Levels
a. All of Watsonville is categorized as a ‘Low Resource’ area

2. Patterns of Integration and Segregation
a. All of Watsonville is either ‘Mostly Latinx’ or “Latinx-White” with no demonstrable segregation

3. Diversity
a. All of Watsonville is categorized as either ‘≥85” or “Higher Diversity”

4. Racially and Ethnically Concentrated Areas of Poverty a. No racially or ethnically concentrated areas of poverty in Watsonville

5. Racially Concentrated Areas of Affluence
a. No racially concentrated areas of affluence in Watsonville

APPENDIX E – FAIR HOUSING ANALYSIS

APPENDIX F – SITES ANALYSIS
The Housing Element is required pursuant to Government Code Section 65583.2 to include an inventory of parcels (or sites) suitable for residential development to accommodate the Regional Housing Needs Allocation (RHNA) for all income levels, as shown in Table F-1 below.

APPENDIX F – SITES ANALYSIS

APPENDIX F –

SITES ANALYSIS

NEXT STEPS
• Once City Council adopts a General Plan Amendment
replacing the 5th Cycle Housing Element with the 6th
Cycle Housing Element, the City’s consultants can submit the draft 6th Cycle Housing Element to HCD for final
certification.

RECOMMENDATION
Staff recommends the City Council approve a
resolution adopting a general plan amendment to
include the California Department of Housing and
Community Development approved 2023-2031
6th Cycle Housing Element in the 2005 City of
Watsonville General Plan and finding the project
exempt from the California Environmental
Quality Act (CEQA) under Sections 15262, 15283,
and 15061(b)(3) of the State CEQA Guidelines.