Watsonville City Council
October 15, 2024

AGENDA

CITY OF WATSONVILLE

SPECIAL JOINT COUNCIL, SUCCESSOR HOUSING AGENCY,
& SUCCESSOR AGENCY MEETING
Working with our community to create positive impact through service with heart.

Values: Teamwork, Integrity, Honesty, Service and Respect Vanessa Quiroz-Carter, Mayor, District 2
Maria Orozco, Mayor Pro Tempore, District 3
Eduardo Montesino, Council Member, District 1
Kristal Salcido, Council Member, District 4
Casey K. Clark, Council Member, District 5
Jimmy Dutra, Council Member, District 6
Ari Parker, Council Member, District 7
Tamara Vides, City Manager
Samantha W. Zutler, City Attorney
Irwin I. Ortiz, City Clerk
Location:

City of Watsonville
City Council Chambers
275 Main Street, Top Floor
Watsonville, CA 95076
Anyone addressing the City Council is asked to fill out a speaker card and leave it at the podium for recording purposes

IF YOU CHALLENGE ANY ACTION APPEARING ON THIS AGENDA IN

COURT, YOU MAY BE LIMITED TO RAISING ONLY THOSE ISSUES YOU OR

SOMEONE ELSE RAISED AT THE PUBLIC MEETING DESCRIBED ON THIS

AGENDA, OR IN WRITTEN CORRESPONDENCE DELIVERED TO THE CITY CLERK PRIOR TO, OR AT, THE PUBLIC MEETING.

SPANISH INTERPRETATION WILL BE AVAILABLE
Americans with Disabilities Act
The Council Chambers is an accessible facility. If you wish to attend a meeting and you will require assistance in order to attend and/or participate, please call the City Clerk's Office at least three (3) business days in advance of the meeting to make arrangements. The City of Watsonville TDD number is (831) 763-4075.

For information regarding this agenda, please call the City Clerk's Office at (831) 768- 3040
AGENDA

CITY OF WATSONVILLE

JOINT COUNCIL, SUCCESSOR HOUSING AGENCY, &

SUCCESSOR AGENCY MEETING

City of Watsonville
City Council Chambers
275 Main Street, Top Floor
Watsonville, CA 95076

Tuesday, October 15, 2024, 6:30 p.m.

City Council Chambers : 275 Main Street, Top Floor (Special Meeting) Pages

1. ROLL CALL

1.a MOTION TO EXCUSE ABSENT COUNCIL MEMBER(S) (If any)

2. PLEDGE OF ALLEGIANCE

3. PUBLIC HEARINGS, ORDINANCES, & APPEALS

3.a GENERAL PLAN AMENDMENT TO INCLUDE THE 6TH CYCLE HOUSING ELEMENT IN THE 2005 CITY OF WATSONVILLE GENERAL PLAN
2 1) Staff Report by Principal Planner Orbach
2) City Council Clarifying & Technical Questions
3) Public Comments
4) Motion
5) City Council Deliberation on Motion
6) Action on Resolution Repealing in its Entirety the 2015-2023 Housing Element of the General Plan & Adopting in Full the 2023-2031 6th Cycle Housing Element as an Amendment to the 2005 General Plan & Finding the Action Not Subject to Review Under the California Environmental Quality Act

4. EMERGENCY ITEMS ADDED TO AGENDA

5. ADJOURNMENT
This agenda was posted in accordance with the California Ralph M. Brown Act. The agenda packet can be accessed on the City of Watsonville website at https://watsonville.gov/2123/City-Council-Agendas-Minutes and is available for public inspection in the City Clerk’s Office (275 Main Street, 4th Floor) during normal business hours. Any materials related to an item on this Agenda submitted to the Council after the distribution of the agenda packet will be made available to the public in accordance with Government Section 54957.5.

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C:\Program Files\eSCRIBE\TEMP\11231077141\11231077141,,,6th Cycle Housing Element CC.docx Agenda Report
MEETING DATE: Tuesday, October 15, 2024
TO: City Council
FROM: COMMUNITY DEVELOPMENT DIRECTOR MERRIAM

PRINCIPAL PLANNER ORBACH
SUBJECT: GENERAL PLAN AMENDMENT TO INCLUDE THE 6TH CYCLE HOUSING ELEMENT IN THE 2005 CITY OF WATSONVILLE

GENERAL PLAN AND FINDING THE PROJECT EXEMPT FROM

THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
RECOMMENDED ACTION:

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.

BACKGROUND:

The Housing Element is a critical tool for the City of Watsonville to use in planning for and accommodating current and future housing growth and services over the next eight years. The Housing Element is one of the seven state-mandated elements included in the Watsonville General Plan and is required to be updated in eight-year planning “cycles.” The 5th Cycle ended on December 15, 2023, so this update is for the 6th Cycle Housing Element covering December 15, 2023, to December 15, 2031. The final draft of the 6th Cycle Housing Element can be viewed on the City website. The Housing Element contains a detailed outline of the City’s goals, policies, and objectives for the protection, improvement, and production of housing for a sustainable future. The Housing Element Update is adopted by City Council and then certified by the California Department of Housing and Community Development (HCD) for compliance with State Housing Element law. The statutory deadline for adoption was December 15, 2023.

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

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

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

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

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

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

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

Regional Housing Needs Allocation
A central part of the Housing Element is detailing how the City can facilitate the construction of housing units at various affordability levels to the amounts prescribed in the Regional Housing Needs Allocation (RHNA). The RHNA target for this Housing Element cycle was developed by HCD and then refined by the Association of Monterey Bay Area Governments (AMBAG). It provides each jurisdiction a specified target number of housing units in four different affordability levels (as shown in Table 1-2 from Chapter 1 of the Housing Element below).

Table 1-2: City of Watsonville 6th RHNA by Income Category Income Category Percent of Area Median
Income (AMI) RHNA
Very Low-Income 0-50% AMI 283
Low-Income 51-80% AMI 186
Moderate-Income 81-120% AMI 521
Above ModerateIncome>120% AMI 1,063
TOTAL RHNA 2,053
Source: AMBAG Final 6th Cycle Regional Housing Needs Allocation Plan 2023- 2031
The total number of units the City needs to plan for is 2,053 over the next 8 years.

However, the California Department of Housing and Community Development (HCD) recommends a buffer of 15-30%. Table F-2 below demonstrates that each income category has a buffer of between 16% and 40%, with an average buffer of 28%, which is in compliance with HCD’s recommendation. To put this number in perspective, the total RHNA units for Watsonville in the previous 5th Cycle was 700. The increase in this

10/14/2024 11:23:13 AM
C:\Program Files\eSCRIBE\TEMP\11231077141\11231077141,,,6th Cycle Housing Element CC.docx housing target is the state recognizing an underproduction of housing statewide for many years. The City of Watsonville is doing its part to help achieve housing production goals by approving 515 units (building permits issued) during the City’s 5th Cycle, with approximately 48% of those units restricted to below market rate in their affordability. If several of the City’s entitled projects, including Miles Lane, Sunshine Gardens, Hillcrest Estates, and Airport Road residential projects, had been constructed prior to December 15, 2023, the City would have met its’ 5th Cycle RHNA target. Despite this accomplishment, the City will need to make even greater strides to reach the significantly increased 6th Cycle RHNA targets in the next 8 years. However, the City is not in the business of developing housing, and must rely on private sector developers to build housing units. The City does have the ability to remove constraints to the development of housing, and HCD has put significant emphasis on removing these constraints in this Housing Element cycle.

Housing Element Contents
The Housing Element Update includes two chapters: an Introduction Chapter and a Housing Plan Chapter. These chapters are followed by eight appendices:

1. Review of Past Performance,

2. Housing Needs Assessment,

3. Housing Resources,

4. Housing Constraints,

5. Fair Housing Analysis,

6. Sites Analysis,

7. Community Outreach,

8. Glossary
This update provides a comprehensive view of the City’s past, present, and future actions as they relate to supporting programs and housing development for all needs and all affordability levels.

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

New to the 6th Cycle Housing Element Updates statewide is the inclusion of Affirmatively Furthering Fair Housing (AFFH) requirements. Beginning on January 1, 2019, Assembly Bill (AB) 686 established new requirements for all California

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C:\Program Files\eSCRIBE\TEMP\11231077141\11231077141,,,6th Cycle Housing Element CC.docx jurisdictions to ensure that local laws, programs, and activities affirmatively further fair housing and that all Housing Elements due after January 1, 2021, contain an assessment of fair housing. Under state law, affirmatively furthering fair housing means “taking meaningful actions, in addition to combatting discrimination, that overcome patterns of segregation and foster inclusive communities free of barriers that restrict access to opportunity based on protected characteristics (such as race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability).” The state requires Watsonville to show how its housing decisions are furthering fair housing, and HCD assigns special focus on this new portion of the document in its certification review.

Summary and analysis of AFFH can be found in the Fair Housing appendix, and numerous AFFH policies are designated in the Policy section to provide actions/objectives to meet the noted State aims.

DISCUSSION:

Policy Plan Chapter
The Policy Plan Chapter details the community’s goals, policies, and objectives relative to housing production, rehabilitation, protection, and assistance for all residents in Watsonville. The five goals of the Policy Plan chapter are listed below to provide the reader with a general overview of policy priorities. More detail on the goals, as well as the policies and objectives within them, are in the attached Housing Element document.

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.

Over the spring and summer of 2024, multiple policies and objectives saw edits and further refinement based on staff review and feedback from HCD and the public. Most of the policy plan revisions stemmed from HCD direction to make policies and objectives as concrete and measurable as possible. In some places, this meant adding quantifiable metrics, such as for policies related to housing rehabilitation. HCD requested specific numbers, so staff consulted with the Housing Division (who provide loans for housing rehabilitation), reviewed code enforcement cases for substandard housing during the

10/14/2024 11:23:13 AM
C:\Program Files\eSCRIBE\TEMP\11231077141\11231077141,,,6th Cycle Housing Element CC.docx 5 th Cycle Housing Element period, and coordinated with the Code Enforcement Division to produce an estimate of the number of units in need of rehabilitation citywide during the 6th Cycle. In other places, this meant removing non-committal language like “Explore…” or “Consider…,” and instead providing specific commitments, timelines, and quantifiable metrics.

Despite the City staff’s inclusion of a substantial amount of justification demonstrating that construction of four-story buildings with densities of up to 85 du/are and six-story buildings with densities of up to 125 du/acre are feasible in the Downtown Watsonville Specific Plan (DWSP) area, supported by local developers, and being built in the City of Santa Cruz, HCD also required the City to include a program in the Housing Element to increase the height limits in the DWSP area to six stories for the Downtown Neighborhood and Downtown Industrial zoning districts and eight stories in the Downtown Core zoning district.

Sites Analysis
The Sites Inventory is broken down into several sections:
 Projects in the Pipeline
 Projected Accessory Dwelling Unit Production
 5
th Cycle Sites
 Existing Zoning on Vacant Sites
 Downtown Watsonville Specific Plan
Pipeline projects include projects that have been proposed or entitled but have not yet been counted in a previous Annual Progress Report on housing for HCD (which is how housing production toward RHNA is tracked).

The other sections detail sites throughout the City that have the potential to develop with housing over the eight-year planning period.

Below is the Sites Inventory summary table of the current Sites Inventory tables on page F-2 of Appendix F: Sites Analysis.

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C:\Program Files\eSCRIBE\TEMP\11231077141\11231077141,,,6th Cycle Housing Element CC.docx Table F-2: Summary of RHNA Status and Sites Inventory
Lower
Income
1 Moderat
e
Income
Above
Moderat
e
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
5 th 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/Inf
ill 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%
Aside from pipeline projects with known affordability levels (e.g. Lower Income, Moderate Income, Above Moderate Income) HCD prescribes set percentages of affordability (and generally for sites designated to provide capacity to meet the City’s Lower Income RHNA only if the parcel is at least a half-acre in size or more). It must be reiterated that the affordability breakdown in the Sites Inventory is not necessarily correlated with what will get built or a projection of the City’s housing priorities but rather an output on paper based on HCD’s algorithms all jurisdictions must use. The unit counts by affordability are not allowed to consider the City’s Inclusionary Ordinance or the use of Density Bonus Law. While the percentage of Above Moderate Income units is higher than Very Low, Low, and Moderate, the affordable units created by the Above Moderate development through the Inclusionary Ordinance are not taken into account.

These projections set by HCD also do not directly consider 100% affordable development that is often facilitated through the work of City staff and non-profit partners, even though that work was successful in the 5th Cycle. For instance, during

1 “Lower Income” includes both Very Low and Low Income categories.

10/14/2024 11:23:13 AM
C:\Program Files\eSCRIBE\TEMP\11231077141\11231077141,,,6th Cycle Housing Element CC.docx the 5th Cycle Housing Element, out of the 515 units counted towards RHNA, 249 (48%) were affordable. Thus, with the City’s Inclusionary Ordinance and with 100% affordable projects, more affordable units are expected to be constructed in the 6th Cycle than what is included in the table.

It is a noted State Prohousing Designation best practice that the Sites Inventory include units over the RHNA target to help ensure that RHNA targets can be met should some sites not develop or if sites are developed with fewer units than projected. HCD recommends that the Sites Inventory include a 15-30% buffer. The Lower Income category has a 16% buffer, the Moderate Income category has a 17% buffer, and the Above Moderate Income category has a 40% buffer over the RHNA target. These buffers are lower than the initial submittal, but they are still within or above HCD’s recommended range.

It is important to note that under the “No Net Loss Law,” Government Code Section 65863, the City must maintain adequate sites to accommodate its remaining unmet RHNA by each income category at all times throughout the entire planning period. If the City takes an action to reduce a parcel’s residential density or if the City approves a development of a parcel identified in its Housing Element sites inventory with fewer units than shown in the Housing Element, findings must be made that the remaining sites identified in its Housing Element sites inventory can accommodate the City’s remaining unmet RHNA by each income category. If the findings can’t be made the City is required to identify additional sites so that there is no net loss of residential unit capacity.

HCD requires strong justification for inclusion of a site in the inventory. Working with HCD, considering community feedback, and evaluating development trends allowed for refinement of the sites inventory during the first two HCD reviews. Sites identified in the inventory are expected to develop with housing in the near term. Undoubtedly, however, some sites listed on the inventory will not develop with housing in the next eight years, and other sites that are not listed on the inventory will develop with housing over the next eight years. The latest version includes an inventory of sites with realistic and demonstrated development potential over the eight-year planning period.

Implementation
Following adoption of the 6th Cycle Housing Element, the City must begin implementing the housing programs identified in the Housing Plan. These programs have specified timeframes for implementation, which are identified in Chapter 2 – Housing Plan. A summary table of the programs with target timeframes is below.

Housing Element Programs
Program Title Timeframe
D.8
50% Minimum Residential Use in Downtown
Central Core Jun-24
D.9
Update to Allow Residential Care Facilities of 7
or More Persons Jun-24

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C:\Program Files\eSCRIBE\TEMP\11231077141\11231077141,,,6th Cycle Housing Element CC.docx D.1
Density Bonus Ordinance - State Law
Consistency Dec-24
D.4 ADUs & JADUs - Pre-Approved Plans Dec-24
D.10 Manufactured Homes Jun-25
C.7 Transitional Housing and Emergency Shelters Dec-25
D.3
Design Review Process - Citywide Objective
Design Standards Dec-25
D.4 ADUs & JADUs - State Law Consistency Dec-25
D.5 Reasonable Accommodations Procedures Dec-25
D.6 Definition of Family Dec-25
E.6 Farmworker and Workforce Housing Dec-25
D.11 Lot Consolidation Jan-26
C.8 Supportive Housing - By-Right Jun-26
C.8 Supportive Housing - Monitoring Program Jun-26
C.9 Low-Barrier Navigation Centers Jun-26
D.7
Zoning Ordinance Update Addressing
Development Constraints for Affordable Housing Jun-26
E.3
Housing for Persons with Developmental
Disabilities Jun-26
A.4 Mobile Home Park Conservation Ordinance Dec-26
D.4 ADUs & JADUs - ADU Manual Dec-26
D.4 ADUs & JADUs - Incentive Program Dec-26
D.4 ADUs & JADUs - Monitoring Program Dec-26
E.4 Affirmatively Further Fair Housing Dec-26
C.12 Surplus Lands Act Dec-26
E.7 Environmental Justice Element Dec-26
D.13 Increase DWSP Building Height Limits Jan-27
A.3 Preservation of Affordable Housing Dec-28
C.1 Adequate Sites Program
At
adoption
and
ongoing
C.10 Water and Sewer Providers
Upon
adoption of
HE
B.5 Child Care Assistance
Within 1
year of HE
adoption
A.5 Replacement Housing
Within 3
years of
HE
adoption
C.2
Explore Additional Residential Opportunity Sites
- Research
Within 3
years of

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adoption
C.2
Explore Additional Residential Opportunity Sites
- Code Amendments
Within 4
years of
HE
adoption
The City received a Regional Early Action Planning (REAP) 2.0 grant of $169,380 that will be used to implement the Housing Element programs. The City put out a Request for Proposals (RFP) for a planning consultant for Housing Element implementation that closed on Friday, September 27, 2024. The submittals are currently under review.

Following selection of a planning consultant, work will begin as soon as possible, as the City must expend at least 20% of the grant funds by the end of the year. The programs included in the planning consultant scope of work include:
 Program D.1 – Density Bonus Ordinance – State Law Consistency  Program D.4 – ADUs & JADUs – State Law Consistency
 Program D.5 – Reasonable Accommodation Procedures
 Program D.6 – Definition of Family
 Program D.8 – 50% Minimum Residential Use in Downtown Central Core  Program D.13 – Increase DWSP Building Height Limits
 Program E.6 – Farmworker and Workforce Housing
 Program C.7 – Transitional Housing and Emergency Shelters in Residential Zoning Districts
General Plan Amendment Findings and State Law Requirements General Plan Amendment Findings
Pursuant to Government Code Section 65354 the Planning Commission makes a recommendation to the City Council on the adoption of amendments to the General Plan. A recommendation for approval shall be made by the affirmative vote of not less than a majority of the total membership of the Commission.

In addition, per Watsonville Municipal Code (WMC) Section 14-12.703, a general plan amendment shall be reviewed by Planning Commission and the Commission shall adopt a resolution recommending approval or denial of the proposed amendment to the City Council, subject to the two findings required in WMC Section 14-12.708. The required findings with staff analysis are below.
a) That the proposed amendment is consistent with the policies embodied in the General Plan;
Staff Analysis: The proposed amendment is consistent with the following policies embodied in the General Plan as described below:

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C:\Program Files\eSCRIBE\TEMP\11231077141\11231077141,,,6th Cycle Housing Element CC.docx  Goal 3.1 Orderly Growth – Provide for orderly urban development that respects existing community character and provides for a clear separation between urban and agricultural land uses.

The Draft 6th Cycle Housing Element provides for orderly urban development by only identifying potential housing sites within the existing city limits. No housing inventory sites are within close proximity to agricultural land uses.

 Goal 3.2 Containment of Urban Development – Discourage urban sprawl by maintaining a well-defined boundary to contain urban development.

The Draft 6th Cycle Housing Element discourages urban sprawl and contains urban development by only identifying potential housing sites within the existing city limits.
 Goal 5.6 Urban Design – Achieve high standards of street, site, and building design that are both efficient and aesthetically pleasing.

The Draft 6th Cycle Housing Element builds on the recently adopted Downtown Watsonville Specific Plan (DWSP), which set new high standards of street, site, and building design that are both efficient and aesthetically pleasing, by identifying sites within the DWSP area for infill development.

Inclusion of the sites identified in the 6th Cycle Housing Element sites inventory increases the potential redevelopment within the next eight years, which will help the City achieve this goal.
 Goal 10.2 Transit Facilities and Service – Promote the use of transit as an alternative to the automobile for all types of travel.

The Draft 6th Cycle Housing Element builds on the recently adopted Downtown Watsonville Specific Plan (DWSP), which concentrates higher density residential and mixed-use development in the downtown area surrounding the City’s Metro station. The station has been identified as an opportunity site in the DWSP and has received funding to redevelop with updated and expanded bus facilities and more than 60 units of 100% affordable housing above the station. Inclusion of the sites identified in the 6th Cycle Housing Element sites inventory increases the potential redevelopment within the next eight years, which will help the City achieve this goal.  Goal 10.3 Rail Facilities and Service – Plan and provide for the continued use of rail to move industrial/agricultural commodities and encourage the establishment of passenger service to the Watsonville area.

10/14/2024 11:23:13 AM
C:\Program Files\eSCRIBE\TEMP\11231077141\11231077141,,,6th Cycle Housing Element CC.docx The Draft 6th Cycle Housing Element builds on the recently adopted Downtown Watsonville Specific Plan (DWSP), which concentrates higher density residential and mixed-use development in the downtown area adjacent to the rail corridor and the historic train depot, which has been identified as a possible location for a new Watsonville train station. Inclusion of the sites identified in the 6th Cycle Housing Element sites inventory increases the potential redevelopment within the next eight years, which will help the City achieve this goal by creating demand for passenger rail service in close proximity to the planned rail station.
b) That the proposed amendment is compatible to the extent possible with the actual and general planned use of the adjacent properties.

Staff Analysis: The Draft 6th Cycle Housing Element is consistent and compatible with the densities and development standards identified in the Downtown Watsonville Specific Plan (DWSP), which was adopted in October 2023, and the General Plan as modified by the DWSP. As such, the 6th Cycle Housing Element does not require any changes to the Zoning Map or the General Plan Land Use Diagram. Therefore, the proposed amendment is compatible with the actual and general planned use of the adjacent properties.

The required findings are located in Exhibit A of the resolution.

State Law Requirements - Findings
In addition, because the Housing Element relies on nonvacant sites to accommodate 50 percent or more of the City’s RHNA for lower income households, the nonvacant site’s existing use is presumed to impede additional residential development, unless the housing element describes findings based on substantial evidence that the use will likely be discontinued during the planning period. In addition to a description in the element, findings should also be included as part of the resolution adopting the housing element.

Based on substantial evidence in the record including the City’s history of development on infill sites, current entitlements on infill sites, the propensity of existing uses to redevelop, developer and property owner interest in redevelopment, and current and future policy commitments, as described in detail in Appendix F, Section B7 – Suitability of Non-Vacant Sites, the existing uses are likely to discontinue during the planning period and will not impede additional residential development and therefore the inclusion of non-vacant sites in the 6th Cycle Housing Element is not an impediment to residential development. This finding is included in the attached resolution.

Additional Authorized Changes

10/14/2024 11:23:13 AM
C:\Program Files\eSCRIBE\TEMP\11231077141\11231077141,,,6th Cycle Housing Element CC.docx On October 1, 2024, the Planning Commission reviewed the proposed General Plan amendment and approved Resolution #12-24 recommending City Council approval of the General Plan amendment by an affirmative vote of a majority of the total membership of the Commission (4 members). The Commission also recommended that the Council approve modifications to Program D.8 to incorporate minor revisions proposed by staff if such revisions are acceptable to HCD:

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 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 2024 2025
Responsible Agency: Community Development Department
Funding Source: General Fund
Staff is recommending that the Council also authorize these changes subject to HCD’s approval.

HCD has also requested minor modifications to program D.13:

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

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C:\Program Files\eSCRIBE\TEMP\11231077141\11231077141,,,6th Cycle Housing Element CC.docx 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
Staff is recommending that the Council also authorize staff to make these changes prior to the final submittal to HCD.

Environmental Review
As described in Attachment 1 - 2023-2031 Housing Element CEQA Determination Technical Memorandum, the Housing Element is exempt from CEQA review per State CEQA Guidelines Sections 15262, 15283, and 15061(b)(3).

Adoption of the Housing Element is exempt pursuant to CEQA Guidelines Section 15262 because it is a feasibility or planning study for possible future actions by the City.

In addition, it is exempt under Section 15283 as an action to implement a regional housing needs determination.

Finally, adoption of the Housing Element is exempt from CEQA, given this project consists of activities covered by the “common sense exemption” that CEQA allows when a project would not cause a significant effect on the environment.

As proposed, the Housing Element would not result in any direct or indirect physical changes to the environment. The Housing Element is a policy document and does not provide entitlements to any specific land use projects. It does not make any changes to the 2005 General Plan land use map and does not modify any land use designations, allowed densities, or land use intensities currently established in the 2005 General Plan.

It neither entitles, proposes, or otherwise requires the construction of new development or rehabilitation of existing development, nor does it change the rate or location of new development.

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

NEXT STEPS
Following HCD’s review of the third draft submittal, HCD determined that the City of Watsonville 6th Cycle Housing Element meets the statutory requirements of Housing

10/14/2024 11:23:13 AM
C:\Program Files\eSCRIBE\TEMP\11231077141\11231077141,,,6th Cycle Housing Element CC.docx Element Law. Following City Council adoption of the resolution approving the General Plan amendment including the 6th Cycle Housing Element in the 2005 General Plan, the City’s consultant will submit the document and resolutions with required findings to HCD for final certification.

STRATEGIC PLAN:

Adoption of the 6th Cycle Housing Element supports the following strategic plan priorities:
1-Economic Development
3-Housing
FINANCIAL IMPACT:

There are no financial impacts associated with a project approval. The City has already received REAP 2.0 grant funding to cover the cost of a Housing Element Implementation consultant who will be selected soon and start work before the end of 2024. A certified housing element will also make the City eligible for many state grant funding opportunities.

ALTERNATIVE ACTION:

City Council could choose not to approve the resolution adopting the 6th Cycle Housing Element. This would leave the city open to additional builder’s remedy project applications, which will have significant negative effects on the community. In addition, without a certified housing element, the City will not be eligible for many state grant funding opportunities.

ATTACHMENTS AND/OR REFERENCES (If any):

1. 2023-2031 Housing Element CEQA Determination Technical Memorandum

1 TECHNICAL MEMORANDUM
To: Matt Orbach, Principal Planner
From: Rita Garcia, Environmental Project Manager
Date: September 25, 2024
Subject: City of Watsonville 2023-2031 Housing Element CEQA Determination

INTRODUCTION
This Technical Memorandum evaluates the City of Watsonville 2023-2031 Housing Element (“2023-2031 Housing Element” or “the Project”) concerning California Environmental Quality Act (CEQA) compliance.

This Technical Memorandum was prepared to present: 1) the findings of the CEQA compliance review, as described below; and 2) the recommendations concerning the appropriate CEQA compliance documentation.

STATUTORY AUTHORITY AND REQUIREMENTS
Once it has been determined that an activity is a project subject to CEQA, it is then determined whether the project is exempt from CEQA.

State CEQA Guidelines Section 15061 – Review for Exemption Pursuant to State CEQA Guidelines Section 15061, a project is exempt from CEQA if:
1) The project is exempt by statute (see State CEQA Guidelines Article 18, commencing with §15260). 2) The project is exempt pursuant to a Categorical Exemption (CE) (see State CEQA Guidelines Article 19, commencing with §15300) and the application of that CE is not barred by one of the exceptions set forth in State CEQA Guidelines Section 15300.2.
3) The activity is covered by the common sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.
4) The project will be rejected or disapproved by a public agency. 5) The project is exempt pursuant to the provisions of Article 12.5 - Exemptions for Agricultural Housing, Affordable Housing, and Residential Infill Projects.

State CEQA Guidelines Section 15262 – Feasibility and Planning Studies Pursuant to State CEQA Guidelines Section 15262, a project involving only feasibility or planning studies for possible future actions which the agency board or commission has not approved, adopted, or funded does not require the preparation of an EIR or Negative Declaration but does require consideration of environmental factors is exempt from CEQA.

Attachment 1

2 State CEQA Guidelines Section 15283 – Housing Needs Allocation Pursuant to State CEQA Guidelines Section 15283, CEQA does not apply to regional housing needs determinations made by the Department of Housing and Community Development, a council of governments, or a city or county pursuant to Government Code Section 65584.

PROJECT DESCRIPTION
The Housing Element is a state-mandated chapter of the Watsonville General Plan that establishes the City of Watsonville’s (“City”) official housing policies and programs to accommodate the Regional Housing Needs Allocation (RHNA) goals, as determined by the Association of Monterey Bay Area Governments (AMBAG). The Housing Element identifies and analyzes the City’s housing needs and includes a detailed outline and work program of the City’s goals, priorities, and quantified objectives to develop housing. The Housing Element also addresses the maintenance and expansion of the City’s housing supply to accommodate households currently living and expected to live in Watsonville in the housing cycle. For the 6 th Cycle (2023-2031) planning period, AMBAG allocated 2,053 housing units to the City, apportioned by the following income categories: 283 units affordable to very low-income households; 186 units affordable to low-income households; 521 units affordable to moderate-income households; and 1,063 units affordable to above-moderate (market-rate) income households.

The proposed Housing Element represents the City’s policy program for the 6th Cycle 2023-2031 planning period. The 2023-2031 Housing Element is a comprehensive review and update to the previous Housing Element, which covered the 5th Cycle 2015-2023 planning period. The proposed Housing Element is comprised of two Chapters (i.e., Introduction and Housing Plan) and seven Appendices (i.e., Review of Past Performance, Housing Needs Assessment, Housing Resources, Housing Constraints, Fair Housing Analysis, Sites Analysis, Community Outreach, and Glossary).

The Housing Plan addresses the City’s identified housing needs, including housing Goals, Policies, and Programs, and discusses the City’s approach to addressing its share of the regional housing need. The Housing Element includes an Adequate Sites Analysis, which the City conducted to satisfy their RHNA allocation. The identified housing sites represent the City’s ability to accommodate housing at the designated income levels within the 2023-2031 planning period. To accommodate the City’s 2023-2031 RHNA, a comprehensive review of opportunity sites was evaluated. The following types of sites were identified: projects in the pipeline, accessory dwelling units (ADUs), undeveloped 5th Cycle Housing Element sites, sites within the Downtown Watsonville Specific Plan, existing vacant residential land, and future housing opportunity sites. The City’s potential development capacity totals 2,635 units on 69 sites throughout the City, which includes 512 units currently within the planning process (projects in the pipeline), 184 ADUs, and 1,939 units of existing capacity (based on existing General Plan land use and zoning). The Housing Plan shows the City has the capacity to meet its 2023-2031 RHNA allocation through the above-identified methods, with a surplus of 581 units (28 percent surplus). 1 The Housing Plan includes Goals, Policies, and Housing Programs intended to: preserve, conserve, and improve affordable housing stock and neighborhoods; promote the production of a diversity of housing types; assist in the provision of affordable housing; remove or mitigate constraints to housing investment; 1 City of Watsonville. (2024). Watsonville Housing Element Table F-2: Summary of RHNA Status and Sites Inventory.

Watsonville, CA: City of Watsonville.

Attachment 1

3 and promote equal housing opportunity. The Project does not propose to implement or result in housing development. Additionally, the Project does not propose to implement any Housing Program that could have a significant effect on the environment or that was not previously analyzed in a CEQA document.

FINDINGS CONCERNING CEQA COMPLIANCE/CEQA EXEMPTION
Kimley-Horn has completed the Project’s CEQA compliance review, as discussed below.

Exemption Justification
The Project proposes an update to the City’s Housing Element and includes Goals, Policies, and Housing Programs to meet the City’s 6th Cycle RHNA allocation. Attachment A: Watsonville 2023-2031 Housing Element Program Review Matrix summarizes the 2023-2031 Housing Element Housing Programs, compares these to the 2015-2023 Housing Element Housing Programs, and provides summary findings concerning their potential to have a significant effect on the environment. As concluded in Attachment A, the proposed Housing Programs could not have a significant effect on the environment.

As proposed, the Housing Element would not result in any direct or indirect physical changes to the environment. All future proposed housing development projects submitted to the City will be reviewed pursuant to CEQA, when required, concurrent with other permitting and regulatory requirements. The Housing Element is a policy document and does not provide entitlements to any specific land use projects.

Any future policy changes and implementation of Housing Programs will be evaluated for CEQA compliance prior to adoption of any such changes or implementation. The 2023-2031 Housing Element does not make any changes to the 2005 General Plan land use map and does not modify any land use designations, or allowed densities or intensities currently established in the 2005 General Plan. The 2023- 2031 Housing Element neither entitles, proposes, nor otherwise requires the construction of new development or rehabilitation of existing development, nor does it change the rate or location of new development. Future housing development pursuant to the 2023-2031 Housing Element would be subject to compliance with the established regulatory framework, namely federal, state, regional, and local laws, ordinances, and regulations, including the General Plan policies, Municipal Code standards, and Standard Conditions of Approval. While by-right housing projects may be exempt from CEQA, all future housing development pursuant to the 2023-2031 Housing Element would be subject to compliance with the established regulatory framework, which can include supporting technical reports.

As is evidenced by the analysis presented in Attachment A, and given the nature and scope of the proposed Project as discussed above, it can be seen with certainty that the proposed Project would not have a significant effect on the environment. As such, the Project qualifies as being exempt from CEQA under the common sense exemption pursuant to State CEQA Guidelines Section 15061(b)(3). Additionally, the Housing Element is exempt pursuant to State CEQA Guidelines Section 15262 because it is a feasibility or planning study for possible future actions by the City and is exempt pursuant to State CEQA Guidelines Section 15283 as an action to implement a regional housing needs determination. Therefore, it has been determined that a Notice of Exemption is the appropriate CEQA documentation.

Attachment 1

1 Reso No. ______ (CM)
Meeting Date: 101524 SWZ ______ TV ______ CDD ______
RESOLUTION NO. _________ (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE REPEALING IN ITS ENTIRETY THE 2015-2023

HOUSING ELEMENT OF THE GENERAL PLAN AND ADOPTING IN
FULL THE 2023-2031 6
th CYCLE HOUSING ELEMENT AS AN
AMENDMENT TO THE 2005 GENERAL PLAN AND FINDING THE

ACTION NOT SUBJECT TO REVIEW UNDER THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
WHEREAS, the City has prepared a draft 2023-2031 Housing Element as an amendment to the 2005 Watsonville General Plan; and
WHEREAS, notice of time and place of the hearing to consider approval of the General Plan Amendment for the 2023-2031 Housing Element was given at the time and in the manner prescribed by the Government Code and Zoning Ordinance of the City of Watsonville. The matter called for hearing evidence both oral and documentary introduced and received, and the matter submitted for decision; and WHEREAS, the City Council has found that the proposed General Plan amendment is exempt from review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and the CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et. seq.), including without limitation, Sections 15262, 15283, and 15061(b)(3), because it is a feasibility or planning study for possible future actions by the City and is an action to implement a regional housing needs determination, further, the proposed amendment is not a “project” that may cause a direct, or reasonably foreseeable indirect, physical change in the environment; and because even if adoption of the Resolution were considered to be a “project”, it would be exempt under the “common sense” exception (14 Cal. Code Regs. § 15061(b)(3)), because it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment; and

2 Reso No. ______ (CM)
Meeting Date: 101524
WHEREAS, the California Department of Housing and Community Development (HCD) reviewed the Draft 6th Cycle Housing Element four times between February 2024 and September 2024; and
WHEREAS, HCD provided the City with a findings letter on September 17, 2024, indicating that the draft Housing Element meets the requirements of Housing Element Law; and
WHEREAS, based on substantial evidence in the record including the City’s history of development on infill sites, current entitlements on infill sites, the propensity of existing uses to redevelop, developer and property owner interest in redevelopment, and current and future policy commitments, as described in detail in Appendix F, Section B7 – Suitability of Non-Vacant Sites, the existing uses are likely to discontinue during the planning period and will not impede additional residential development and therefore the inclusion of non-vacant sites in the 6th Cycle Housing Element is not an impediment to residential development; and
WHEREAS, on October 1, 2024, the Planning Commission adopted Resolution 12-24 (PC) recommending the City Council repeal in its entirety the 2015-2023 Housing Element of the General Plan and adopt in full the 2023-2031 6th Cycle Housing Element as an amendment to the 2005 General Plan by an affirmative vote of a majority of the total membership of the Commission (4 members) in compliance with Government Code Section 65354; and
WHEREAS, pursuant to Watsonville Municipal Code (WMC) Section 14-12.703, the general plan amendment was reviewed by Planning Commission and the Commission adopted Resolution 12-24 (PC) recommending approval of the proposed general plan

3 Reso No. ______ (CM)
Meeting Date: 101524
amendment to the City Council and including the findings required by WMC Section 14-

12.708; and
WHEREAS, per WMC Section 14-12.708(a), the City Council has found that the proposed amendment is consistent with the policies embodied in the General Plan, as described in Exhibit A; and
WHEREAS, per WMC Section 14-12.708(b), the City Council has found that the proposed amendment is compatible to the extent possible with the actual and general planned use of the adjacent properties, as described in Exhibit A; and WHEREAS, there are no proposed changes to the General Plan Land Use Diagram; and
WHEREAS, the City Council has considered all written and verbal evidence regarding this application at the public hearing and has solicited and considered public comment to allow a General Plan amendment in consideration of the Draft 6 th Cycle
Housing Element Update for the 2023-2031 planning cycle.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS:

1. The foregoing recitations are true and correct and are hereby incorporated into this Resolution.

2. Adoption of the 6th Cycle Housing Element is exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Sections 15262, 15283, and 15061(b)(3).

3. The 6
th Cycle Housing Element is consistent with the purposes of the General Plan and Municipal Code as set forth in Exhibit A which is attached hereto and incorporated herein by this reference.

4 Reso No. ______ (CM)
Meeting Date: 101524

4. The 6
th Cycle Housing Element complies with Housing Element Law, as provided in Government Code Section 65580 et seq., and contains all provisions required by Housing Element Law.

5. As required by Government Code Section 65583.2(g)(2), based on substantial evidence in the record including the City’s history of development on infill sites, current entitlements on infill sites, the propensity of existing uses to redevelop, developer and property owner interest in redevelopment, and current and future policy commitments, as described in detail in Appendix F, Section B7 – Suitability of Non-Vacant Sites, the existing uses are likely to discontinue during the planning period and will not impede additional residential development and therefore the inclusion of non-vacant sites in the 6th Cycle Housing Element is not an impediment to residential development.

6. Good cause appearing, therefore, the City Council of the City of Watsonville does hereby repeal the 2015-2023 Housing Element in its entirety and replace it in full with the 2023-2031 6
th Cycle Housing Element, attached hereto and incorporated herein by this reference, as an amendment to the 2005 General Plan. ***************************************

CITY OF WATSONVILLE EXHIBIT A

CITY COUNCIL
GENERAL PLAN AMENDMENT FINDINGS (WMC §14-12.708)

1. That the proposed amendment is consistent with the policies embodied in the General Plan;
Supportive Evidence
The proposed amendment is consistent with the following policies embodied in the General Plan as described below:
 Goal 3.1 Orderly Growth – Provide for orderly urban development that respects existing community character and provides for a clear separation between urban and agricultural land uses.

The Draft 6th Cycle Housing Element provides for orderly urban development by only identifying potential housing sites within the existing city limits. No housing inventory sites are within close proximity to agricultural land uses.  Goal 3.2 Containment of Urban Development – Discourage urban sprawl by maintaining a well-defined boundary to contain urban development.

The Draft 6th Cycle Housing Element discourages urban sprawl and contains urban development by only identifying potential housing sites within the existing city limits.
 Goal 5.6 Urban Design – Achieve high standards of street, site, and building design that are both efficient and aesthetically pleasing.

The Draft 6th Cycle Housing Element builds on the recently adopted Downtown Watsonville Specific Plan (DWSP), which set new high standards of street, site, and building design that are both efficient and aesthetically pleasing, by identifying sites within the DWSP area for infill development. Inclusion of the sites identified in the 6th Cycle Housing Element sites inventory increases the potential redevelopment within the next eight years, which will help the City achieve this goal.
 Goal 10.2 Transit Facilities and Service – Promote the use of transit as an alternative to the automobile for all types of travel.

The Draft 6th Cycle Housing Element builds on the recently adopted Downtown Watsonville Specific Plan (DWSP), which concentrates higher density residential and mixed-use development in the downtown area surrounding the City’s Metro station. The station has been identified as an opportunity site in the DWSP and has received funding to redevelop with updated and expanded bus facilities and more than 60 units of 100% affordable housing above the station. Inclusion of the sites identified in the 6th Cycle Housing Element sites inventory increases the potential redevelopment within the next eight years, which will help the City achieve this goal.

 Goal 10.3 Rail Facilities and Service – Plan and provide for the continued use of rail to move industrial/agricultural commodities and encourage the establishment of passenger service to the Watsonville area.

The Draft 6th Cycle Housing Element builds on the recently adopted Downtown Watsonville Specific Plan (DWSP), which concentrates higher density residential and mixed-use development in the downtown area adjacent to the rail corridor and the historic train depot, which has been identified as a possible location for a new Watsonville train station. Inclusion of the sites identified in the 6th Cycle Housing Element sites inventory increases the potential redevelopment within the next eight years, which will help the City achieve this goal by creating demand for passenger rail service in close proximity to the planned rail station.

2. That the proposed amendment is compatible to the extent possible with the actual and general planned use of the adjacent properties.

Supportive Evidence
The Draft 6th Cycle Housing Element is consistent and compatible with the densities and development standards identified in the Downtown Watsonville Specific Plan (DWSP), which was adopted in October 2023, and the General Plan as modified by the DWSP. As such, the 6th Cycle Housing Element does not require any changes to the Zoning Map or the General Plan Land Use Diagram.

Therefore, the proposed amendment is compatible with the actual and general planned use of the adjacent properties.

Reso No. ______ (CM) Page 26 of 452
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INTRODUCTION

Acknowledgments
City Council
Eduardo Montesino – District 1
Vanessa Quiroz-Carter – Mayor, District 2
Maria Orozco – District 3
Kristal Salcido – District 4
Casey Clark – District 5
Jimmy Dutra – District 6
Ari Parker – District 7
Planning Commission
Daniel Dodge – District 1
Brando Sencion – District 2
Jenni Veitch-Olson – District 3
Martha Vega – District 4
Peter Radin – District 5
Lucy Rojas – District 6
Ed Acosta – District 7
2050 General Plan Technical Advisory Committee
Amelia Conlen
Angelica Jauregui
Antonella Gentile
Brian Lockwood
Carlos Landaverry
Casey Meusel
Celia Castro
Christina Watson
Guy Preston
Heather Adamson
Jackie McCloud
Jeanne LePage
Joe Serrano
Jorge Zamora
June Padilla Ponce
Katia Obraczka
Matt Orbach
Michelle Rodriguez
Murray Fontes, P.E.

Nick Calubaquib
Oxo Slayer
Paul Guirguis
Piet Canin
Rachel Moriconi
Robert Ratner
Rudy Lopez Sr.

Steve Wiesner
Suzi Merriam
Tamara Vides
Theresia Rogerson
Will Smith
Chris Bjornstad
Thomas Travers
City Staff
Suzi Merriam – Community Development Director
Justin Meek, AICP – Assistant Community Development Director Matt Orbach – Principal Planner
Mary Wagner – City Attorney
Kimley-Horn (Consultants)
Dave Barquist, AICP – Project Director
Ines Galmiche, AICP – Project Manager
Bryant de la Torre
Sean Gorden
Junhyun Kim
Denise Truong
Rebeca Duran-Lopez
Daria Young
Thank you to all community stakeholders who have participated in the Housing Element update process!

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INTRODUCTION

Table of Contents
Chapter 1: Introduction
A. State Requirements.........................................................................................................................1-1

1. State Requirements ..................................................................................................................1-1

2. Regional Housing Needs Allocation ...........................................................................................1-3

3. Relationship to General Plan Elements......................................................................................1-3

4. Public Participation...................................................................................................................1-4

5. Data Sources.............................................................................................................................1-4

6. Housing Element Organization..................................................................................................1-5 Chapter 2: Housing Plan
A. Housing Goals and Policies..............................................................................................................2-1

1. Housing and Neighborhood Conservation .................................................................................2-2

2. Housing Assistance ...................................................................................................................2-2

3. Housing Production ..................................................................................................................2-3

4. Removal of Government Constraints.........................................................................................2-4

5. Fair and Equal Housing Opportunity..........................................................................................2-5 B. Housing Programs ...........................................................................................................................2-6

1. Housing and Neighborhood Conservation .................................................................................2-6

2. Housing Assistance ...................................................................................................................2-9

3. Housing Production ................................................................................................................2-12

4. Removal of Governmental Constraints....................................................................................2-19

5. Fair and Equal Housing Opportunity........................................................................................2-24 C. Summary of Quantified Objectives................................................................................................2-33 Appendix A: Review of Past Performance
A. Special Housing Needs Resources................................................................................................... A-1

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

2. Persons With Disabilities...........................................................................................................A-3

3. Persons Experiencing Homelessness.........................................................................................A-5

4. Extremely Low-Income Households ..........................................................................................A-9

5. Farmworkers...........................................................................................................................A-11

6. Higher Education ....................................................................................................................A-14 B. 5
th Cycle (2015-2023) Housing Element Program Accomplishments..............................................A-17 Appendix B: Housing Needs Assessment
A. Population Characteristics...............................................................................................................B-1

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

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

3. Race/Ethnicity Characteristics...................................................................................................B-3 B. Economic Characteristics ................................................................................................................B-6

1. Employment and Wage Scale....................................................................................................B-6 C. Housing Characteristics....................................................................................................................B-9

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

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

3. Household Income..................................................................................................................B-11 D. Housing Problems..........................................................................................................................B-14

1. Overcrowding .........................................................................................................................B-15

2. Overpayment (Cost Burden)....................................................................................................B-16 E. Special Needs Groups.....................................................................................................................B-18

1. Seniors....................................................................................................................................B-18

2. Persons with Physical and Developmental Disabilities.............................................................B-19

3. Large Households....................................................................................................................B-24

4. Single-Parent Households.......................................................................................................B-26

5. Farmworkers...........................................................................................................................B-27

6. Extremely Low-Income (ELI) and Poverty Status......................................................................B-27

7. Persons Experiencing Homelessness.......................................................................................B-29

8. Students .................................................................................................................................B-30 F. Housing Stock Characteristics ........................................................................................................B-31

1. Housing Growth......................................................................................................................B-31

2. Housing Types.........................................................................................................................B-31

3. Housing Availability and Tenure ..............................................................................................B-32

4. Housing Age and Conditions....................................................................................................B-34

5. Housing Costs and Affordability ..............................................................................................B-36 Appendix C: Housing Resources
A. Neighborhood Assets......................................................................................................................C-1 B. Resources for Special Housing Needs Groups..................................................................................C-1

1. Seniors......................................................................................................................................C-1

2. Persons with Disabilities ...........................................................................................................C-2

3. Persons Experiencing Homelessness.........................................................................................C-2

4. Female-Headed & Large Households.........................................................................................C-4 C. Publicly Owned Land .......................................................................................................................C-5 D. Financial Resources.........................................................................................................................C-5

1. Housing Choice Vouchers (HCV)................................................................................................C-5

2. Community Development Block Grants.....................................................................................C-7

3. SB 2 Grant.................................................................................................................................C-8 E. Energy Conservation........................................................................................................................C-8

1. Energy Use and Providers .........................................................................................................C-8

2. Energy Conservation.................................................................................................................C-8 Appendix D: Housing Constraints
A. Non-Governmental Constraints...................................................................................................... D-1

1. Land Costs and Construction.................................................................................................... D-1

2. Availability of Financing ........................................................................................................... D-2

3. Economic Constraints .............................................................................................................. D-4 B. Environmental Constraints............................................................................................................. D-5

1. Geological and Seismic Hazards ............................................................................................... D-5

2. Flood Hazards.......................................................................................................................... D-6

3. Fire Hazards............................................................................................................................. D-9 C. Governmental Constraints............................................................................................................ D-11

1. Land Use Controls.................................................................................................................. D-11

2. Zoning Districts...................................................................................................................... D-12

3. Overlay Districts..................................................................................................................... D-17

4. New Growth Areas................................................................................................................. D-17

5. Specific Plans......................................................................................................................... D-21

6. Airport Land Use Compatibility .............................................................................................. D-26

7. Variety of Housing Permitted................................................................................................. D-30

8. Residential Development Standards....................................................................................... D-41

9. Local Processing and Permit Procedures ................................................................................ D-47

10. Development Fees................................................................................................................. D-52

11. Local Ordinances.................................................................................................................... D-56

12. Housing for Persons with Disabilities...................................................................................... D-61 D. Infrastructure Constraints............................................................................................................ D-62

1. Dry Utilities............................................................................................................................ D-62

2. Water Supply ......................................................................................................................... D-62

3. Fire and Emergency Services.................................................................................................. D-63

4. Police Services ....................................................................................................................... D-63 Appendix E: Fair Housing Analysis
A. Assessment of Fair Housing.............................................................................................................E-1

1. TCAC/HCD Opportunity Maps ...................................................................................................E-1

2. Patterns of Integration and Segregation....................................................................................E-4

3. Access to Opportunities..........................................................................................................E-24

4. Disproportionate Housing Need and Displacement.................................................................E-38 B. Fair Housing Enforcement and Outreach Capacity.........................................................................E-61

1. Fair Housing Enforcement and Outreach.................................................................................E-61

2. Fair Housing Enforcement Partnerships ..................................................................................E-62

3. Fair Housing Laws...................................................................................................................E-63

4. Fair Housing and Civil Rights Findings, Lawsuits, Enforcement, Settlements or Judgments ......E-64 C. Relevant Factors............................................................................................................................E-65

1. Background.............................................................................................................................E-65

2. Investments............................................................................................................................E-65

3. Contributing Factors ...............................................................................................................E-67 D. Analysis of Sites Pursuant to AB 686 .............................................................................................E-69

1. Framework for AB 686 Analysis...............................................................................................E-69

2. Assessment of Contributing Factors to Fair Housing in Watsonville .........................................E-95

3. Analysis of Fair Housing Priorities and Goals ...........................................................................E-96 Appendix F: Sites Analysis
A. General Residential Development Trends....................................................................................... F-4 B. Summary of Sites to Accommodate 2023-2031 RHNA..................................................................... F-4

1. Projects in the Pipeline ............................................................................................................. F-5

2. Accessory Dwelling Units ........................................................................................................ F-10

3. 5
th Cycle Housing Element Sites............................................................................................... F-12

4. Downtown Watsonville Specific Plan....................................................................................... F-14

5. Existing Vacant Residential Land ............................................................................................. F-18

6. Future Housing Opportunity on Commercial Sites................................................................... F-20

7. Suitability of Non-Vacant Sites................................................................................................ F-22 Appendix G: Community Outreach
Summary of Community Engagement ................................................................................................ G-1

1. Online Community Survey........................................................................................................ G-1

2. Plug into the Community Engagement Plan.............................................................................. G-2

3. Community Advisory Committee Meeting #1........................................................................... G-2

4. Technical Advisory Committee Meeting #1 .............................................................................. G-3

5. Discovery Workshop #1 ........................................................................................................... G-3

6. Stakeholder Focus Group Meetings.......................................................................................... G-8

7. Community Advisory Committee Meeting #2........................................................................... G-9

8. City Council & Planning Commission Study Session ................................................................ G-10 Public Comments on Draft Housing Element .................................................................................... G-12

1. Pre-HCD Submittal Public Review Draft (December '23 to January '24)................................... G-12

2. HCD Submittal Public Review Draft (TBD)............................................................................... G-13 Attachment A: Public Comments Recieved....................................................................................... G-14 Appendix H: Glossary
Definitions.......................................................................................................................................... H-1 Acronyms............................................................................................................................................ H-8

CHAPTER 1 Element Update INTRODUCTION

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Chapter 1: Introduction 1-1
Introduction
The Housing Element is one of the twelve elements included in the Watsonville General Plan and the only element requiring certification from the California State Department of Housing and Community Development (HCD). The Housing Element is reviewed and certified by HCD for substantial compliance with State laws. The purpose of the Housing Element is to identify and plan for the City’s existing and projected housing needs. Through research and analysis, the Housing Element identifies available candidate housing sites and establishes housing policies and programs to accommodate the Regional Housing Needs Allocation (RHNA) determined by the Association of Monterey Bay Area Governments (AMBAG). The Housing Element is a critical tool for Watsonville to plan for and accommodate current and future growth within the community, over the eight-year planning cycle.

A. State Requirements

1. State Requirements
California State Housing Element Law (California Government Code Article 10.6) establishes the Housing Element requirements. As stated in California Government Code Section 65588, local governments are required to review and revise the Housing Element of their comprehensive General Plans once every eight years.

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

Chapter 1: Introduction 1-2
Table 1-1 summarizes the Housing Element requirements mandated by HCD and identifies where these requirements are addressed in this document.

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

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

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

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

Section 65583.c(1) Appendix F
Identification of strategies to assist in the development of adequate housing to meet the needs of low and moderate-income households.

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

Chapter 1: Introduction 1-3

2. Regional Housing Needs Allocation
The RHNA is the methodology used for determining future housing need, by income category, throughout the State based on growth in population, households, and employment. The state-wide determination is first administered by HCD. The quantified housing need is then allocated among the State’s 18 Metropolitan Planning Organizations (MPOs). For Watsonville, this agency is AMBAG. In accordance with Section 65584.04 of the California Government Code, AMBAG is then tasked with creating a methodology for distributing the “fair share” of housing need to its member jurisdictions. Through this process, the City of Watsonville was allocated 2,053 total housing units.

The City’s RHNA is divided amongst four income categories, as shown in Table 1-2, which are based on Santa Cruz County’s area median income (AMI) for a family of four. According to the HCD State Income Limits for 2023, the AMI for Santa Cruz County is $132,800.

Table 1-2: City of Watsonville 6th RHNA by Income Category Income Category Percent of Area Median Income (AMI) RHNA 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

3. Relationship to General Plan Elements
The City’s Housing Element identifies programs and resources required for the preservation, improvement, and development of housing to meet the existing and projected need of the community.

For the Housing Element to be successful, its goals, policies, and programs must be consistent with those established in all other elements in the City’s General Plan.

The Housing Element works in tandem with development policies in the Land Use Element. The Land Use Element guides decision makers with the pattern, distribution, density, and intensity of land uses. Over time, these land uses will help the City achieve Watsonville’s vision for the future; it establishes the location, type, intensity, and distribution of land uses throughout the City, and defines the land use buildout potential. By designating areas for residential development, the Land Use Element places an upper limit on the densities and types of housing units constructed in the City. Land use patterns and decisions are influenced by population and economic growth (which create market demand), transportation access and opportunities, the availability of infrastructure, environmental constraints, and quality of life potential reflected in school quality, parks and recreational opportunities, and cultural amenities. The presence and potential for jobs also affects the current and future demand for housing at the various income levels in the City.

The City’s Circulation Element also affects the implementation of the Housing Element. The Circulation Element establishes policies for a balanced circulation system in the City. The Circulation Element aims to reduce the impacts of transportation on the region’s environment and provide a variety of options so individuals can choose to travel by car, bicycle, foot, or public transportation. Consequently, the Housing

Chapter 1: Introduction 1-4
Element must include policies and incentives that consider the types of infrastructure essential for residential housing units in addition to mitigating the effects of growth in the City.

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

4. Public Participation
Government Code Section 65583 requires local governments to make diligent and continued efforts to achieve public participation from all economic segments of the community. Public participation is a key component to the success of the Housing Element. Throughout the update process, the City prioritized outreach to the general public, community organizations, stakeholders, and various agencies to ensure all voices were heard and all feedback was considered. Appendix G provides a detailed description of outreach conducted and comments received.

5. Data Sources
The data used for the completion of this Housing Element comes from a variety of sources. These include, but are not limited to:
• United States Census, 2010
• American Community Survey (U.S. Census Bureau Survey Program) • 2022 Homeless Point-in-Time Count and Survey, Santa Cruz County Housing for Health Partnership
• Home Mortgage Disclosure Act (HMDA) lending data
• California Department of Economic Development
• California Employment Development Division Occupational Wage data, 2022 • Department of Housing and Urban Development, Comprehensive Housing Affordability Strategy (CHAS), 2015-2019
• AMBAG Regional Growth Forecast, 2022
The data sources represent the best data available at the time this Housing Element Update was prepared.

The original source documents contain the assumptions and methods used to compile the data.

6. Housing Element Organization
This Housing Element represents the City of Watsonville’s policy program for the 2023-2031, 6th Housing Cycle Planning Period. The Housing Element comprises the following Chapters:

Chapter 1: Introduction contains a summary of the content, organization, and statutory considerations of the Housing Element.

Chapter 2: Housing Plan addresses the City’s identified housing needs, including housing goals, policies, and programs.

Appendices provides various appendices with supplementary background resources including:

Chapter 1: Introduction 1-5
• Appendix A – Review of Past Performance of 5th Cycle Housing Element Programs • 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 Element Update HOUSING PLAN

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Chapter 2: Policy Plan 2-1
Housing Plan
The Housing Plan described in this Chapter includes the City’s goals, policies, programs, and objectives for the 2023-2031 planning period. The Housing Plan addresses the need to plan for additional housing opportunities, remove constraints to affordable housing, improve the existing housing stock, and provide equal opportunities for all current and future residents of Watsonville.

These goals, policies, and programs were developed based on:
• Review of the City’s 5th Planning Cycle Housing Element; • Input and feedback from the community, stakeholders, and decision makers; • State law requirements; and
• Analysis provided in the Community Profile, Constraints, Resources, and Fair Housing Chapters of this 2023-2031 Housing Element.

A. Housing Goals and Policies
The following describes the goals and policies the City intends to implement to meet its RHNA and address its housing needs. On a bi-annual basis, the City Council prepares a Strategic Plan that identifies key planning issues in Watsonville, sets forth goals to address identified needs, and allocates appropriate financial resources to achieve those goals. Based on a review of housing needs identified in the Housing Needs Assessment (Appendix B of the Housing Element), the following housing goals and policies are designed to:

1. Preserve, conserve, and improve affordable housing stock and neighborhoods;

2. Promote the production of a diversity of housing types;

3. Assist in the provision of affordable housing;

4. Remove or mitigate constraints to housing investment; and

5. Promote equal housing opportunity.

Chapter 2: Policy Plan 2-2

1. Housing and Neighborhood Conservation
Conserving, preserving, and improving the housing stock is an important goal. Approximately 45 percent of the housing stock in Watsonville is 30 years old or older, the age when most homes begin to have major rehabilitation needs. The City actively supports neighborhood preservation and upgrading through housing repair assistance and code enforcement.

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.
• Policy 1.1: Encourage homeowners and landlords to maintain properties in sound condition through the City’s residential rehabilitation assistance programs and code enforcement efforts. • Policy 1.2: Continue to preserve and maintain the City’s historical and architecturally significant buildings and neighborhoods.
• Policy 1.3: Encourage citizen involvement in addressing the maintenance and improvement of the housing stock and neighborhood quality.
• Policy 1.4: Support housing providers in the acquisition, rehabilitation, and maintenance of older residential properties as long-term affordable housing. • Policy 1.5: Preserve the existing stock of affordable housing, including mobile homes, through City regulations and land use and development controls, including mobile home park exclusive-use zoning, as well as financial and other forms of assistance. • Policy 1.6: Revitalize neighborhoods by addressing substandard housing, investing in public infrastructure, and providing appropriate public services and facilities.

2. Housing Assistance
Watsonville is home to various groups with special housing needs, including seniors, large families, disabled persons, homeless persons, single parent families, and students, among others. These groups may face greater difficulty in finding decent and affordable housing due to special circumstances. Special circumstances may be related to one’s income, family characteristics, disability, or health issues. The City remains committed to addressing the special needs of Watsonville residents.

Goal 2:

Expand and protect housing opportunities for all economic segments and special needs groups within the community.
• Policy 2.1: Encourage the provision of jobs and housing by annexing areas outside of city limits but within the urban growth boundary for new housing opportunities and promoting the City’s affordable housing programs with Watsonville businesses. • Policy 2.2: Continue to offer and promote homeownership assistance programs to lower- and moderate-income households to purchase housing and give preference, to the extent possible, to those who work or live in Watsonville.

Chapter 2: Policy Plan 2-3
• Policy 2.3: Continue to support the provision of rental assistance to lower-income households and encourage property owners to list units with the Housing Authority of the County of Santa Cruz (”Housing Authority”).
• Policy 2.4: Continue to enforce notification and provide relocation assistance for lower-income persons displaced due to substandard conditions, demolition, reuse, condominium conversion, or rehabilitation as a result of code enforcement.
• Policy 2.5: Support efforts by non-profits to expand transitional and emergency housing in Watsonville, including support of grant applications and assistance in identification of suitable sites.
• Policy 2.6: Encourage and support, as feasible, non-profit and for-profit agencies who provide supportive services and alternative housing options for persons with special housing needs in Watsonville.
• Policy 2.7: Support the provision of childcare centers in residential neighborhoods, through commercial business as feasible, and in new residential projects.

3. Housing Production
Housing diversity is important to ensure that all households, regardless of age, income level, and household type, have the opportunity to find housing suited to their lifestyle. Part of this diversity is addressed through the regional housing needs assessment process, which encourages the provision of housing for all economic segments in the community. However, housing diversity is also addressed by supporting alternative housing options for residents with special housing needs. The following goals and policies are designed to encourage appropriate and quality housing in Watsonville.

Goal 3:

Provide housing opportunity for Watsonville’s share of the regional housing need for all income and special needs groups.
• Policy 3.1: Encourage the production of housing that meets the needs of all economic segments, including lower-, moderate-, and above moderate-income households, to achieve a balanced community.
• Policy 3.2: Provide high quality rental and ownership housing opportunities for current and future residents that are affordable to a diverse range of income levels. • Policy 3.3: Encourage a variety of housing types to address the needs of farmworkers and special needs groups. Housing types include affordable rentals, mobile homes, single room occupancy hotels, manufactured and factory-built housing and group housing. • Policy 3.4: Continue to implement the Affordable Housing Ordinance, Density Bonus Ordinance, and other programs as a means of integrating affordable units within new residential development.
• Policy 3.5: Pursue State, Federal, and other funding sources for housing activities as a means to leverage local funds and maximize assistance.

Chapter 2: Policy Plan 2-4
• Policy 3.6: Encourage and support the efforts of non-profit organizations that develop housing affordable to very low-, low-, and moderate-income households. • Policy 3.7: Examine the feasibility of developing quality live/work housing, as appropriate, as a means to provide affordable housing.
• Policy 3.8: Ensure that adequate infrastructure, public facilities, water, and services are available or in place to support the development of new housing.

4. Removal of Government Constraints
Under State law, the Housing Element must address, and where legally possible, remove governmental constraints affecting the maintenance, improvement, and development of housing at all income levels.

The following programs are designated to mitigate government constraints on housing and facilitate development of housing affordable to lower-, moderate-, and above moderate-income households, including families, seniors, and persons with special needs.

Goal 4:

Where appropriate, mitigate unnecessary governmental constraints to the maintenance, improvement, and development of housing.
• Policy 4.1: Provide regulatory and/or financial incentives, where appropriate, to offset or reduce the costs of affordable housing development, including density bonuses and flexibility in site development standards.
• Policy 4.2: Implement and enforce objective residential design standards to ensure that the community’s expectations are met with respect to the quality and style of housing projects. • Policy 4.3: Continue to provide priority processing to affordable housing projects. • Policy 4.4: Expressly permit the development of Accessory Dwelling Units and Junior Accessory Dwelling Units to provide additional affordable housing opportunities. • Policy 4.5: Periodically review City regulations, ordinances, departmental processing procedures and residential fees related to rehabilitation and/or construction to assess their impact on housing costs and revise as appropriate.
• Policy 4.6: Provide regulatory and financial incentives, as appropriate, to facilitate the development of supportive housing for families with children, and other special needs groups. • Policy 4.7: Revise and update Title 14, Zoning Ordinance, of the Watsonville Municipal Code, to mitigate unnecessary governmental constraints to the maintenance, improvement, and development of housing.
• Policy 4.8: Continue to support the incorporation of energy efficient devices in existing housing and utilization of energy efficient designs for new housing.

Chapter 2: Policy Plan 2-5

5. Fair and Equal Housing Opportunity
Ensuring fair and equal housing opportunity is an important goal. Whether through mediating disputes, investigating bona fide complaints of discrimination, or through education, the provision of fair housing services is important to ensuring fair and equal access to housing. Watsonville supports the provision of fair housing opportunity through the following goals and supporting policies.

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. • Policy 5.1: Continue to enforce fair housing laws prohibiting arbitrary discrimination in the building, financing, selling, or renting of housing on the basis of race, religion, family status, national origin, disability, or other such factors.
• Policy 5.2: Continue to support organizations that offer fair housing and mediation services to Watsonville residents.
• Policy 5.3: Promote and support, as feasible, housing that meets the special needs of large families, single-parent/female-headed households, families with children, students, elderly persons, homeless persons, farm workers, and the disabled. • Policy 5.4: Encourage the provision of housing adaptable to the physically disabled through integration of universal design features in new development, and compliance with Title 24 of the California Health and Safety Code.

Chapter 2: Policy Plan 2-6
B. Housing Programs
The goals and policies contained in the Housing Element address Watsonville’s housing needs and are implemented through housing programs offered by the Community Development Department.

Government Code Section 65583 requires that the Housing Element address five major areas:

1. Housing and Neighborhood Conservation

2. Provision of Housing Assistance

3. Housing Production

4. Removal of Governmental Constraints

5. Equal Housing Opportunity
The housing programs described below include existing programs as well as future programs needed to address identified housing needs.

1. Housing and Neighborhood Conservation
Many housing units in Watsonville were constructed prior to 1990 and are likely to have rehabilitation needs, such as new plumbing, roof repairs, foundation work, and other major repairs. Other housing conservation needs include preservation of existing multi-family rental apartments at-risk of converting to condominiums.

Program A.1: Code Enforcement
Code enforcement is a means to ensure that the character and quality of neighborhoods is enhanced and maintained. The code enforcement efforts in Watsonville will continue to focus on bringing substandard units into compliance with City building, housing, and property maintenance codes.

Objectives:

The City will continue to carry out code enforcement activities, including performing property inspections and citing code violations, when necessary.

Timeframe: Throughout the Planning Period
Responsible Agency: Community Development Department
Funding Source: General Fund; Community Development Block Grants

Program A.2: Housing Rehabilitation Loans
To strengthen the City’s code enforcement efforts and improve neighborhoods, the City offers home rehabilitation loan programs. Correcting code violations is the top priority of the loans. The rental rehabilitation program prioritizes properties with 11 or fewer units. Assisted rental units must be affordable for at least five years. Rental rehabilitation loans have interest rates of 0 percent to 3 percent with payments for up to 30 years. The City will continue seeking funding opportunities to support the Rehabilitation Loan Program.

Objectives:
• The City will advertise the availability of this program through bilingual brochures at City Hall, in the City’s bilingual newsletter, and posting on the City’s website. • The City will aim to assist 20 households during the planning period.

Chapter 2: Policy Plan 2-7
• Target assistance in the City’s historic core and around the DWSP area. These are the oldest areas of the City and may have housing units that have a higher rehabilitation need due their age.

Timeframe: Throughout the Planning Period; Apply for funding annually to support the Rehabilitation Loan Program.

Responsible Agency: Community Development Department
Funding Source: Cal Home; Community Development Block Grants; PLHA Program A.3: Preservation of Affordable Housing
Watsonville has 263 affordable housing units that receive public subsidies or are regulated by the City’s Affordable Housing Ordinance. Currently, there is one property with 100 units that is considered at-risk of conversion to market-rate housing during the 10 years following the beginning of the planning period (2023-2033). However, the City has coordinated with property owners in extending the expiration date through the next planning period. The City is committed to preserving its stock of affordable housing and will provide technical assistance, see additional nonprofit and for-profit partners, and facilitate financial assistance where available for assisted affordable housing units at-risk of conversion to market-rate units.

The City was able to assist in saving 236 lower and moderate-income affordable units during the 4th planning cycle; no units were at-risk during the 5th planning cycle.

Objectives:
• Continue to maintain an inventory of assisted units and establish an early warning system for assisted housing units that have the potential to convert to market-rate units. • Outreach to and coordinate with property owners with assisted housing units at-risk of converting to market-rate units to preserve affordability – this includes providing technical assistance to property owners and non-profit developers.
• Facilitate and promote tenant outreach, noticing, and education, as well as funding opportunities, as available.
• Proactively seek funding opportunities for units at-risk of converting to market-rate units.

Timeframe: Develop the warning system by December 2028; Review annually thereafter; Outreach to begin by December 2028; Annually seek funding opportunities Responsible Agency: Community Development Department
Funding Source: General Fund; Housing In Lieu fees; state and federal loans/grants including LEAP, CDBG, and AHSC

Program A.4: Mobile Home Park Conservation Ordinance
Watsonville is home to nine mobile home parks containing approximately 900 homes. Through its existing Mobile Home Park Conversion Ordinance, the City has established requirements and procedures for the control and approval of the conversion of mobile home parks to community mobile home parks, mobile home park condominiums, and non-mobile home park uses. A comprehensive update of the Ordinance was adopted by the City Council in January 2019 to streamline the process, provide greater clarity, and ensure consistence with State law, thisincludes adoption of a mobile home park overlay district to protect and preserve existing mobile home parks.

Chapter 2: Policy Plan 2-8
Watsonville’s Rent Stabilization Ordinance is also intended to protect the investments of mobile-home owners, preserve the affordability of the lower-income housing stock located in the City’s mobile home parks, while at the same time ensuring the continued economic viability and preservation of the mobile home parks by also ensuring that rent limits will not operate to deny park owners a fair rate of return on investments.

Objectives:
• Continue to implement the Mobile Home Park Conversion and Rent Stabilization Ordinances. • Reach out to mobile home park communities and host a workshop to discuss their specific housing needs.

Timeframe: Continue to implement the ordinances throughout the Planning Period; Conduct outreach and meet with the mobile home park communities by December 2026 Responsible Agency: Community Development Department
Funding Source: General Fund

Program A.5: Replacement Housing:

Existing non-vacant sites included within the sites inventory may contain vacant or demolished residential units that were occupied by lower income households or households subject to affordability requirements within the last five years. Pursuant to Government Code section 65915, the City will adopt replacement housing requirements to ensure the replacement of any existing units occupied by lower income households or households subject to affordability requirements in the last five years that are demolished to construct new housing units.

Objective:
• Formulate replacement housing program requirement and amend the Municipal Code.

Timeframe: Within three years of Housing Element adoption Responsible Agency: Community Development Department
Funding Source: General Fund

Program A.6: Displacement Protection
The City understands that new development can increase the risk of displacement, especially for sensitive populations. It is also known that sensitive populations are more likely to live in areas susceptible to displacement due to higher costs, poor housing conditions and other environmental factors and the City can work towards mitigating those displacement risks.

Objective:
• Apply for at least one grant per year focused on improving community assets such as recreational facilities and programs, social service programs, parks, streets, active transportation, and infrastructure in areas identified as those in highest need. Target the DWSP area and areas directly outside of the DWSP boundaries.
• Consider anti-displacement policy options, programs, or code amendments, such as additional anti-retaliation policies and programs or a revised first right of refusal to tenants displaced due to

Chapter 2: Policy Plan 2-9
development, after evaluating the effectiveness of existing anti-displacement strategies and tools and engaging with the community to develop a list of best practices and recommendations.

Present options to City Council by December 2027. Target areas at risk of displacement.

Timeframe: 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.

Responsible Agency: Community Development Department
Funding Source: General Fund

2. Housing Assistance
Watsonville is home to various groups with special housing needs, such as: seniors, large families, persons with disabilities, persons experiencing homelessness, single parents, farmworkers, extremely low-income households, and students, among others. These groups may face greater difficulty in finding decent and affordable housing due to special circumstances. Special circumstances may be related to one’s income, family characteristics, disability, or health issues. The City remains committed to addressing the special needs of Watsonville residents.

Program B.1: First Time Home Buyer Loans
The City offers home purchase loans for eligible first-time homebuyers. Homebuyers who live and work within the city limits are given priority for these loans. The amount of assistance is based on the lesser of either the Program funding subsidy limits or the gap in affordability. The payments on these loans are deferred for up to 30 years with a 1 percent interest rate. The City will continue to utilize program income from HOME Investment Partnership Program (HOME) and CalHome Programs and will continue to apply for other state and federal funding to support the First Time Homebuyer loans.

Objective:
• Continue to offer First Time Home Buyer Loans. The City aims to assist 60 households at an average of 8 loans per year during the planning period. Assistance to be provided citywide. • Advertise the availability of this Program through bilingual brochures at City Hall, in the City’s bilingual newsletter, and posting on the City’s website, conduct bilingual community workshops, continue promoting the program through lenders, realtors, the Board of Realtors and other housing professionals.

Timeframe: The City will continue to utilize program income from HOME Investment Partnership Program (HOME) and CalHome Programs and will continue to apply for other state and federal funding to support the First Time Homebuyer loans annually throughout the Planning Period; Outreach continuously with first workshop by December 2026.

Responsible Agency: Community Development Department
Funding Source: HOME; Cal Home; PLHA, Housing In Lieu Fees

Program B.2: Down Payment Assistance Loans
Some homebuyers are unable to achieve homeownership because they do not have sufficient funds for a down payment and/or closing costs. Recognizing this need, the City offers down payment assistance loans to homebuyers to purchase affordable homes and provide more homeownership opportunities to residents. Buyers who currently live and work within the city limits are given priority for these loans. At

Chapter 2: Policy Plan 2-10
present, the maximum loan amount is $60,000 for buyers who live and work in the City. Up to $30,000 is available to buyers who live or work in the City. Other buyers can borrow a maximum of $10,000. The payments on these loans are deferred for up to 30 years with a 1% interest rate.

Objective:
• Continue to offer Down Payment Assistance Loans. Assistance to be provided citywide. • Aim to assist 25 households at an average of 3 loans per year during the planning period. • Continue to advertise the availability of this program through bilingual brochures at City Hall, in the City’s bilingual newsletter, and posting on the City’s website, conduct bilingual community workshops, continue promoting the program through lenders, realtors, the Board of Realtors and other housing professionals.

Timeframe: The City will continue to utilize program income from HOME Investment Partnership Program (HOME) and CalHome Programs and will continue to apply for other state and federal funding to support the First Time Homebuyer loans annually throughout the Planning Period; Outreach annually with first workshop by December 2026.

Responsible Agency: Community Development Department
Funding Source: Affordable Housing Program
Program B.3 Housing Choice Voucher (HCV) Rental Assistance The Housing Authority administers the Housing Choice Voucher (HCV; also known as Section 8) Rental Assistance in Watsonville. The HCV Program extends rental subsidies to very low-income households, including families, seniors, the disabled, and farmworkers. The HCV Program offers a voucher that pays the difference between the current fair market rent (FMR) and what a tenant can afford to pay (i.e., 30 percent of household income). HCVs may also be used to assist certificate holders in purchasing a home.

Objective:
• The City will continue to support Housing Authority efforts to provide rental vouchers to residents in need. The City will continue to encourage the Housing Authority and other agencies to list available rentals.
• Goal of reducing voucher waitlist by 10 percent annually. • Goal of increasing landlord participation by 5 percent annually.

Timeframe: Throughout the Planning Period; Goal of reducing voucher waitlist by 10 percent annually; Goal of increasing landlord participation by 5 percent annually.

Responsible Agency: Housing Authority
Funding Source: Federal

Program B.4: Relocation Assistance Ordinance
The Relocation Assistance Ordinance requires landlords to pay relocation benefits to tenants who are displaced from dangerous buildings. Specifically, landlords must provide up to three months of rent plus a moving allowance and storage costs for tenants who are displaced from a dangerous building as determined by the Building Official. In conjunction with the Relocation Assistance Program, displaced families can also receive motel vouchers for up to a week and a case worker to help them find and secure

Chapter 2: Policy Plan 2-11
replacement housing. The City will advance relocation benefits under the Ordinance if the landlord does not pay in a timely manner.

Objective:
• The City will continue to implement the Relocation Assistance Ordinance to assist tenants who are displaced from dangerous buildings.

Timeframe: Throughout the planning period
Responsible Agency: Community Development Department
Funding Source: Community Development Block Grant; General Fund

Program B.5: Child Care Assistance
Watsonville is primarily a family community. Between 2011 and 2021, married-couple family households experienced a small decrease; however, single-parent households increased by approximately 20 percent.

To address this trend, the City permits child (day) care homes as an accessory use in all residential zones.

Additional smaller day care homes are available options for childcare. The City will continue to support projects offering childcare.

Objective:
• Continue to support the provision of childcare assistance and facilitate the development of new housing with a childcare component.
• Amend the Municipal Code to allow child day care home by-right in all residential zoning districts in compliance with the provisions of the Health and Safety Code.

Timeframe: Throughout the Planning Period, amend the Municipal Code within one year of adoption.

Responsible Agency: Community Development Department
Funding Source: Community Development Block Grant; General Fund Program B.6: Application for Grants and Loans
In 2000, the voters of California approved Proposition 46, authorizing the issuance of bonds, to support well over $2 billion in new and continued housing programs. In 2006, voters approved Proposition 1C for

2.8 billion in additional funds for affordable housing and emergency shelters. This will fund affordable housing (both ownership and rental), neighborhood revitalization efforts, special needs housing and supportive services, downtown revitalization, and a variety of other programs that help meet the housing needs of communities across the State. The City has had considerable success in applying for available grants and loans programs and will continue efforts to investigate potential funding sources.

Objective:

Investigate funds available under Proposition 46, 1C and other affordable housing programs, and pursue those that help meet the housing needs of Watsonville residents. Assistance to be provided citywide.

Timeframe: Apply annually throughout the planning period Responsible Agency: Community Development Department
Funding Source: General Fund

Chapter 2: Policy Plan 2-12
Program B.7: Promotion of Resources for Large Households Large households are a special needs group because many communities have a limited supply of adequately sized, affordable housing units. It is common for lower-income large households to reside in smaller units with an inadequate number of bedrooms, which frequently results in overcrowding and can contribute to faster rates of deterioration. The City intends to support efforts that provide resources to help ease the burden of this special needs group.

Objective:
• Encourage the establishment of resources that help meet the large household housing needs of Watsonville residents.

Timeframe: Annually throughout the planning period
Responsible Agency: Community Development Department
Funding Source: General Fund
Program B.8: Promotion of Resources for Female-Headed Households Female-headed households often require special consideration and assistance. They usually have a greater need for affordable and accessible day care, health care, and other supportive services due to lack of dual incomes in the household. Female-headed households are more likely to have lower incomes than similar two-parent households and require resources that can assist them. The City intends to support efforts that provide resources to help ease the burden of this special needs group.

Objective:
• Encourage the establishment of resources that help meet the female-headed household housing needs of Watsonville residents.

Timeframe: Annually throughout the planning period
Responsible Agency: Community Development Department
Funding Source: General Fund

3. Housing Production
Housing diversity is important to ensure that all households, regardless of age, income level, and household type, have the opportunity to find housing suited to their lifestyle. Part of this diversity is addressed through the regional housing needs assessment process, which encourages the provision of housing for all economic segments in the community. However, housing diversity is also addressed by supporting alternative housing options for residents with special housing needs. The following goals and policies are designed to encourage appropriate and quality housing in Watsonville.

Program C.1: Adequate Sites Program
Maintain a current inventory of vacant and underutilized lands suitable for residential development to ensure adequate capacity to meet the RHNA during the planning period. Ensure that proposed development on housing inventory sites contributes to meeting the RHNA goal or by utilizing appropriate replacement sites. Conduct additional monitoring on mixed-use sites to determine whether further incentives are needed to generate the desired level of affordability.

Chapter 2: Policy Plan 2-13
Objective:
• Maintain an adequate sites inventory continuously throughout the Housing Element Planning Period and maintain adequate sites at all times to meet remaining unaccommodated need during the Planning Period.

Timeframe: Establish inventory at Housing Element adoption and maintain adequate inventory on the City’s website throughout the Planning Period
Responsible Agency: Community Development Department
Funding Source: General Fund

Program C.2: Explore Additional Residential Opportunity Sites The provisions of AB 2011 and SB 6 are intended to permit residential development on sites currently zoned and designated for commercial or retail uses. To comply with the provisions of AB 2011 and SB 6, the City will adopt implementing Ordinancesfor AB 2011 and SB 6 requirements and establish a ministerial processing procedure for AB 2011 eligible projects. The Ordinances shall contain all required site criteria, development standards and project criteria, affordable housing requirements, prevailing wage, and other labor requirements.

AB 2295 and SB 4 have similar intentions to AB 2011 and SB 6 for permitting residential development on sites currently not zoned for residential use. However, AB 2295 and SB 4 are intended for sites that are educational and religious sites, respectively. The City will conduct outreach with those respective communities. Should there be interest, the City will adopt implementing Ordinances for AB 2295 and SB 4 requirements. The Ordinances shall contain all required site criteria, development standards and project criteria, affordable housing requirements, prevailing wage, apprentice employment, and other labor requirements.

Objective:
• Research potential AB 2295, AB 2011, SB 6, and SB 4 sites and adopt amendments to the Municipal Code as needed.

Program C.3: SB 330 Compliance
The City will ensure compliance with state law enacted through Senate Bill 330 and prohibit amendments to the general plan or zoning of properties in a manner that would reduce residential density compared to the designation/district in effect as of January 1, 2018, without concurrent upzoning of equal capacity on property elsewhere in the City.

Objective:
• Maintain consistency with State Housing Law.

Timeframe: Research opportunities within 3 years, and adopt Municipal Code amendments, as necessary, within 4 years of Housing Element adoption.

Responsible Agency: Community Development Department
Funding Source: General Fund

Chapter 2: Policy Plan 2-14
Program C.4: Affordable Housing Ordinance
Under the City’s adopted Affordable Housing Ordinance, developers are required to set aside a certain portion of units (up to 20 percent) in projects of seven or more units for targeted income level groups.

Due to the cost of single-family homes, homeownership projects are required to set aside units for median, moderate, and above-moderate income households. The term of affordability is a minimum of 45 years. Developers may be eligible for density bonus provisions under State Density Bonus Law by providing the minimum percent of affordable units as required by the Affordable Housing Ordinance.

Objective:
• Continue to implement the Affordable Housing Ordinance to ensure that the private sector assists in meeting the housing needs of all income groups in Watsonville.

Timeframe: Conduct annual reporting of progress and units constructed through the ordinance Responsible Agency: Community Development Department
Funding Source: General Fund, Affordable Housing Program

Program C.5: Partnership with Non-Profit Housing Agencies Non-profit housing developers play an important role in providing affordable housing in Watsonville. The City has granted direct financial assistance, land write-downs, regulatory incentives, and other forms of assistance to a number of developers to provide both ownership and rental housing to lower- and moderate-income households. In recent years, the City has assisted South County Housing, Santa Cruz Community Counseling Center, Mid-Peninsula Housing Coalition, Eden Housing, Inc., Habitat for Humanity, Community Housing Improvement Systems and Planning Association, Inc. (CHISPA), and others in the provision of affordable housing.

Objective:
• Continue to grant financial assistance, land write-downs, regulatory incentives, and/or other forms of assistance to non-profit developers of affordable and special needs housing. Assistance to be provided citywide.
• Annually seek and apply for funding opportunities.

Timeframe: Throughout the planning period; annually seek and apply for funding opportunities Responsible Agency: Community Development Department
Funding Source: Set-aside funds; HOME; CalHome; PLHA; Mobile Home Program; Farmworker Housing Grant; Affordable Housing Program; Community Development Block Grant; Private Funding/Financing Program C.6: Encourage Mixed-Use Development Opportunity in Commercial Areas Several areas in Watsonville are suitable for a mix of residential and commercial uses. During the prior Housing Element planning period, the City was successful in permitting mixed-use development in the Downtown corridor. The City will continue to encourage the development of underutilized commercial areas to establish a range of housing types and affordability that are near employment opportunities and Timeframe: Maintain compliance with State Housing Law.

Responsible Agency: Community Development Department
Funding Source: General Fund

Chapter 2: Policy Plan 2-15
amenities and contribute to a safe and inclusive community. Should a mixed-use development be proposed, the City shall require that at least 50 percent of the floor area is designated for residential use.

Objective:
• Continue to promote residential uses in commercial areas. • As feasible, provide financial, technical, and/or other incentives or assistance to facilitate the development of mixed-use housing.
• Review the feasibility of permitting SROs in the CT and CN zones. • Encourage higher densities for residential uses in commercial zones.

Timeframe: Provide annual monitoring of mixed used development throughout the Planning Period Responsible Agency: Community Development Department
Funding Source: General Fund

Program C.7: Transitional Housing and Emergency Shelters The City is actively involved in addressing homelessness. As an active participant in the Santa Cruz County Continuum of Care Coordinating Group, the City Council adopted a resolution (No. 387-91) supporting a coordinated Countywide effort to assist the homeless and prepare a five-year strategic plan.

Locally, the City currently permits transitional housing in the PF zone through an Administrative Use Permit and emergency shelters by-right in the PF and N zones. California Government Code Section 65583(c)(3) requires transitional housing to be permitted in all residential zoning districts under the same restrictions as other residential dwellings of the same type in the same zone. As such, the City will adopt a Zoning Ordinance amendment to update zoning for transitional housing in compliance with State law.

The City also supports the Pajaro Valley Shelter Services and Salvation Army Loma Prieta Transitional Housing Complex. In order to facilitate this housing, the City has allowed a significant reduction in parking requirements and no minimum lot area requirement (unlike other residential uses).

Objective:
• Adopt a Zoning Ordinance amendment to permit transitional housing in all residential zoning districts under the same restrictions as other residential dwellings of the same type in the same zone. Also update the definition of emergency shelter housing in the Code. • Continue to support the development and expansion of existing transitional housing facilities. • Continue to participate and provide financial assistance to the Continuum of Care Coordinating Group in developing and implementing the five-year plan.

Timeframe: Adopt Code amendments within one year of adoption Responsible Agency: Community Development Department
Funding Source: General Fund
Program C.8: Supportive Housing
California Government Code Sections 65583(c)(3) and 65651(a) (AB 2162) respectively require 1) supportive housing to be permitted in all residential zoning districts under the same restrictions as other residential dwellings of the same type in the same zone and 2) permanent supportive housing to be

Chapter 2: Policy Plan 2-16
permitted by-right in zones where multi-family uses and mixed-use development is permitted, including non-residential zones permitting multi-family uses if they meet the Government Code Section requirements.

The City will also establish a monitoring program to track an inventory of sites appropriate to accommodate transitional and supportive housing and solicit input from organizations who specialize in addressing the needs of persons experiencing homelessness and extremely low-income households.

Objective:
• Amend the Zoning Ordinance to permit permanent supportive housing by-right in all zones where residential uses are permitted.
• Establish a monitoring program to track an inventory of sites to accommodate transitional and supportive housing.
• Collaborate with local organizations and agencies to discuss the needs of persons experiencing homelessness and extremely low-income households.
• Support and, when possible, fund local and regional efforts to address the housing needs of persons experiencing homelessness or at-risk of homelessness.

Timeframe: Amend the Zoning Ordinance and establish a monitoring program by June 2026; Annually seek funding and outreach to local organizations and agencies; Throughout the Planning Period Responsible Agency: Community Development Department
Funding Source: General Fund
Program C.9: Low-Barrier Navigation Centers
Senate Bill 48 established by-right approval of certain low-barrier navigation centers that meet specified requirements. Low-barrier navigation centers are generally defined as service-enriched temporary living facilities focused on the transition of persons experiencing homelessness or at-risk of becoming homeless into permanent housing. Low-barrier navigation centers connect individuals to income, public benefits, health services, and housing.

The City will amend the Zoning Ordinance to include regulations and procedures for low-barrier navigation centers, as well as establish a ministerial approval process. In the interim, the City will process applications for this type of use in accordance with State law.

Objective:
• Amend the Zoning Ordinance to include procedures and regulations to process low-barrier navigation centers in compliance with State law.

Timeframe: Amend Zoning Ordinance by June 2026
Responsible Agency: Community Development Department
Funding Source: General Fund
Program C.10: Water and Sewer Providers
Pursuant to Government Code Section 65589.7, the City is required to forward its adopted Housing Element, and any amendments thereto, to local water and sewer service providers. This legislation allows for coordination between the City and service providers when considering approval of new residential

Chapter 2: Policy Plan 2-17
projects. Since the City of Watsonville is the provider of their own water and sewer services, this Housing Element will be delivered to the City’s respective divisions.

Objectives:
• Forward the adopted 2023-2031 Housing Element to local water and sewer providers, and any amendments thereto.

Timeframe: Upon adoption of the 2023-2031 Housing Element or any amendments thereto Responsible Agency: Community Development Department
Funding Source: General Fund
Program C.11: SB 35 Streamlining
The City will establish written procedures to comply with California Government Code Section 65913.4 and publish those procedures for the public, as appropriate, to comply with the requirements of SB 35 (2017).

SB 35 requires local jurisdictions to provide a streamlined ministerial approval process for eligible multifamily residential developments, subject to objective zoning and design review standards. The City of Watsonville is subject to the streamlined ministerial approval process required of SB 35 for proposed developments with an affordability component, as determined by the SB 35 Statewide Determination Summary Report which is updated annually.

Objectives:
• The City will establish streamlining procedures and objective standards for qualifying projects under SB 35 to be approved ministerially. The City will make procedures available to the public on the City’s webpage and at the front counter.

Timeframe: Establish written procedures to comply with SB 35 by December 2025 Responsible Agency: Community Development Department
Funding Source: General Fund
Program C.12: Surplus Land Act The Surplus Lands Act (SLA) of California (Government Code Section 54220 et. seq.) and AB 1486 (2019) requires the City to declare property to be “surplus land” before the City can take any action (sale or lease) to dispose of the property. Surplus land is land deemed not necessary for a local agency’s use, including that according to a local agency’s plan, including but not limited to, utility sites or land used for conservation purposes.

The City will maintain a list of all surplus City-owned lands, including identification of address, APN, General Plan land use designation, zoning, current use, parcel size, and status (surplus land or exempt surplus land), in accordance with State Housing Law. In accordance with State Housing Law, should surplus land be identified in the future, the City will work with non-profits and public agencies to evaluate the feasibility of transferring surplus city-owned lands not committed to other City purposes for development of affordable housing by the private sector. The inventory will be updated annually in conjunction with the Annual Progress Report program. Any disposition of future surplus lands shall be conducted consistent with the requirements of Government Code Section 54220 et. seq.

Chapter 2: Policy Plan 2-18
Objectives:
• By December 2026, declare City-owned sites as surplus and approve a resolution making the findings that the project will be put out to competitive bid and a successful bidder will be required to enter into a regulatory agreement establishing the minimum affordability requirements. • The City will facilitate development of City-owned sites by 1) issuing a Request for Proposals (RFP) by January 2026 on the City’s website and distributing the RFP to any affordable housing developers; 2) if the City receives a satisfactory response, the City will select a developer by fall of 2026; 3) Target exclusive negotiating agreements by 2027; and 4) Target entitlements by 2028. • In the event the RFP is not successful by Fall of 2026, the City shall either issue a new RFP in 2027 or conduct annual outreach to affordable housing developers in accordance with the Surplus Lands Act
• The City shall provide assistance to a successful bidder by offering technical assistance; facilitating entitlements; assisting with funding, as available, and/or supporting funding applications. • The City shall establish and implement a variety of incentives to facilitate development of CityOwned sites, including providing fee waivers, flexibility and reductions to development standards, priority processing, and financial assistance.

Timeframe: By December 2026, declare City-owned sites as surplus and approve a resolution making the findings that the project will be put out to competitive bid. In the RFP is not successful by Fall of 2026, the City shall either issue a new RFP in 2027 or conduct annual outreach to affordable housing developers in accordance with the Surplus Lands Act. The City will assess potential incentive actions and implement incentives within 2 years of adoption of the housing element. Review sites at least annually (no later than December of each year) to make certain the City maintains adequate sites to accommodate the RHNA throughout the 6th Cycle pursuant to Government Code Section 65863 (No Net Loss Law), and, if necessary, rezone sufficient sites within 180 days to accommodate the shortfall.

Responsible Agency: Community Development Department
Funding Source: General Fund

4. Removal of Governmental Constraints
Under State law, the Housing Element must address, and where legally possible, remove governmental constraints affecting the maintenance, improvement, and development of housing at all income levels.

The following programs are designed to mitigate government constraints and facilitate development of housing affordable to lower-, moderate-, and above moderate-income households, including families, seniors, and persons with special needs.

Program D.1: Density Bonus Ordinance
California Government Section 65915, as amended is known as State Density Bonus Law and establishes density bonuses that projects may be eligible for. Various amendments and changes to State Density Bonus Law have occurred in recent years. To ensure the Municipal Code is consistent with the requirements of State Density Bonus law, as amended, the City will review current provisions of the Municipal Code to ensure consistency with State law.

Chapter 2: Policy Plan 2-19
Objective:
• Conduct a comprehensive review of Density Bonus Law requirements in the City’s Municipal Code. • Amend the Density Bonus Ordinance, as applicable, to comply with State law requirements.

Timeframe: Review Municipal Code provision by December 2024. Adopt applicable amendments by December 2025
Responsible Agency: Community Development Department
Funding Source: General Fund

Program D.2: Planned Development District (PD)
A PD designation allows the regulations of the underlying zoning district to be superseded, modified, or amended. In order to create a superior housing product, the City frequently uses the PD designation to permit higher densities through smaller lots, narrower streets, and other deviations from conventional zoning regulations. Using the PD designation, the City has facilitated greater housing affordability by approving small-lot single-family homes and rental projects. PD designations are not pre-applied to sites, and it is not a requirement for development.

Objective:
• Continue to offer the PD zoning designation as an option for developers to create more tailored residential projects.

Timeframe: Continuing allowing PD development throughout the planning period Responsible Agency: Community Development Department
Funding Source: General Fund

Program D.3: Design Review Process
In April 2001, the City adopted Livable Community Residential Design Guidelines. These Guidelines supplement quantitative standards in the Zoning Ordinance with Neighborhood and architectural design principles. These Guidelines help in part to clarify the City and Community’s expectations in the quality and style of projects and ensure that developments are also consistent with General Plan policies. All projects with two or more units are required to comply with the City’s Design Review process and the Residential Design Guidelines.

Objective:
• Update and enforce the City’s Design Review process and the Residential Design Guidelines to provide objective design standards.

Timeframe: Review the Design Review Process by December 2025, Amend the Residential Design Guidelines by December 2026.

Responsible Agency: Community Development Department
Funding Source: General Fund

Program D.4: Accessory Dwelling Units and Junior Accessory Dwelling Units Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) provide additional housing opportunity to accommodate local housing needs. The integration of accessory dwelling units in existing residential neighborhoods creates opportunity to accommodate more affordable rental and for-sale

Chapter 2: Policy Plan 2-20
housing. In 2020, the City amended the ADU Ordinance in compliance with updates to State law. However, the City’s ADU ordinance has be updated to comply with new State laws that went into effect after 2020.

Since adoption of the ADU Ordinance, 81 ADUs have been constructed in the City, half of which are affordable to lower income households. Based on yearly averages, the City has planned for the construction of 184 ADUs during the 2023-2031 Housing Element Planning Period.

The City will continue to encourage the development of ADUs and JADUs citywide by offering permitready ADU and JADU plans and establishing a user’s guide to assist applicants in the ADU entitlement process.

Objective:
• Maintain compliance with State housing laws for ADUs and JADUs. • Remove maximum bedroom requirements in the City’s ADU Ordinance to comply with State law. • Establish permit-ready ADU and JADU plans to minimize design costs, expedite permit processing, and provide development certainty.
• Establish and maintain an ADU Manual guiding applicants through the permitting and construction of an ADU.
• Establish an incentive program for deed-restricted affordable ADUs and JADUs such as waived permitting fees and/or priority processing.
• Establish an ADU monitoring program, and biennially review, for development trends for potential gaps. If gaps are identified, implement changes within one year.

Timeframe: Adopt applicable Zoning Ordinance amendments by December 2025; Offer permit ready plans by December 2026
Responsible Agency: Community Development Department
Funding Source: General Fund

Program D.5: Reasonable Accommodations
Pursuant to Government Code Section 65583, the City is obligated to remove potential and actual governmental constraints to the maintenance, improvement, or development of housing for all income levels and for persons with disabilities. The Fair Housing Act, as amended in 1988, requires that cities and counties provide reasonable accommodation to rules, policies, practices, and procedures where such accommodation may be necessary to afford individuals with disabilities equal housing opportunities.

Reasonable accommodation provides a basis for residents with disabilities to request flexibility in the application of land use and zoning regulations or, in some instances, even a waiver of certain regulations or requirements to ensure equal access to housing opportunities. The City is required to consider requests for accommodations related to housing for people with disabilities and provide the accommodation when it is determined to be “reasonable” based on fair housing laws and case law interpreting the statutes. The City does not currently have reasonable accommodations procedures in place, which is considered a constraint to housing accessibility for persons with disabilities. The City will adopt reasonable accommodations procedures and provide information on the process to the public.

Chapter 2: Policy Plan 2-21
Objective:
• Adopt reasonable accommodations procedures.
• Establish and maintain updated information on reasonable accommodations on the City’s website and at City Hall.
• Within a year of adopting reasonable accommodations procedures, outreach to local organizations and agencies that address the needs of persons experiencing homelessness to inform them of this update.

Timeframe: By December 2025; Begin outreach within a year of adopting reasonable accommodations procedures
Responsible Agency: Community Development Department
Funding Source: General Fund
Program D.6: Definition of Family
State housing law prohibits a restrictive definition of “Family” which limits the number of unrelated persons and differentiates between related and unrelated individuals living together. The City’s Zoning Ordinance does not currently define “Family.” The City will amend the Zoning Ordinance to adopt a definition which meets State requirements.

Objective:
• Amend the Zoning Ordinance to include a definition of “Family” which meets State requirements.

Timeframe: Amend Zoning Ordinance definitions by December 2025 Responsible Agency: Community Development Department
Funding Source: General Fund
Program D.7: Zoning Ordinance Update Addressing Development Constraints for Affordable Housing The constraints analysis in this Housing Elementidentified multifamily parking requirements as a potential constraint to the development of housing. The City will review and revise parking requirements, as appropriate, to remove any potential constraints. Additionally, the City will meet with the development community to identify any potential constraints.

Objective:
• Meet with development community and the public to identify potential constraints to parking standards and solicit input on Zoning Ordinance Modification. • Amend the parking requirements in the Zoning Ordinance as appropriate to reduce potential constraints for multifamily developments.
• Amend additional requirements in the Zoning Ordinance should they be deemed as constraints to the development of housing.

Timeframe: Amend Zoning Ordinance by June 2026
Responsible Agency: Community Development Department
Funding Source: General Fund

Chapter 2: Policy Plan 2-22
Program D.8: Require 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 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 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 2024
Responsible Agency: Community Development Department
Funding Source: General Fund
Program D.9: Zoning Ordinance Update to Allow Residential Care Facilities of 7 or More Persons Pursuant to State law provisions in Title 24, The City will update and amend its Zoning Ordinance, as necessary to permit residential care facilities administratively. This will be done to ensure that no special requirements are placed on residential care facilities dedicated for more than six persons, consistent with State law and fair housing requirements.

Objective:
• Amend requirements for residential care facilities of 7 or more persons in residential zones to allow development through administrative review.
• Remove subjective approval findings that may reduce approval certainty.

Timeframe: Amend Zoning Ordinance by June 2024
Responsible Agency: Community Development Department
Funding Source: General Fund
Program D.10: Manufactured Homes
The City will review the existing provisions and development standards of manufactured homes for consistency with State Law in accordance with Government Section 65852.3. These housing types will be allowed in the same manner and zones as conventional single-family dwelling units.

Objective:
• Review Municipal Code for consistency with State Law and adopt any necessary amendments. • Allow manufactured homes by-right in all residential zones that allow single-family residential units.

Timeframe: Amend Zoning Ordinance by June 2025
Responsible Agency: Community Development Department
Funding Source: General Fund
Program D.11: Lot Consolidation The City has identified sites that are adjacent to one another – some with common ownership. The City will facilitate the consolidation of these sites through incentives such as, but not limited to, technical assistance, reduction in lot size and setback requirements, and/or parking reductions. Consolidation will provide the opportunity to develop underutilized lots to their fullest

Chapter 2: Policy Plan 2-23
potential. The City will evaluate the appropriateness of a variety of incentives and provide this information to the developers and other interested parties through the City’s website and at City Hall.

Objective:
• Facilitate the consolidation of non-vacant, underutilized sites. • Adopt and promote incentives online and at City Hall.

Timeframe: Adopt and implement program by January 2026
Responsible Agency: Community Development Department
Funding Source: General Fund
Program D.12: Development Community Outreach The City understands the importance of timely and transparent development review processes in facilitating housing development. It also seeks to use its recently approved objective development standards and another regulatory tools to promote the development of housing.

Objectives:
• Coordinate yearly meetings with the development community (at minimum) to learn about process improvements, housing impediments, and associated policy and code amendments that can be addressed to promote efficiency and predictability in the development review process and implement approaches to improve project feasibility.
• Meet with the development community to discuss potential barriers to the development of alternative types of housing and use that information to adopt policy or code changes that facilitate the production of alternative housing types. • Continue to engage with affordable housing advocates during the creation of policy and during the development review process to help achieve successful affordable housing outcomes. • Annually conduct outreach to developers and community organizations to identify development opportunities and incentives for the creation of affordable housing units.

Timeframe: Coordinate yearly meetings with the development community Responsible Agency: Community Development Department
Funding Source: General Fund
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 up to a maximum of eight stories for the Downtown Core zoning district.

Chapter 2: Policy Plan 2-24
Timeframe: By January 2027
Responsible Agency: Community Development Department
Funding Source: General Fund

5. Fair and Equal Housing Opportunity
To adequately meet the housing needs of all segments of the community, the Housing Plan must include programs promoting housing opportunities for all persons regardless of race, color, ancestry, national origin, religion, age, gender, gender identity and expression, marital status, familial status, medical condition or disability, military or veteran status, source of income, sexual orientation, or any other protected characteristic.

Program E.1: Fair Housing Program
The City supports fair housing and refers all alleged cases of discrimination to the State Office of Fair Employment and Housing and the California Rural Legal Assistance (CRLA). The City also prepares an Analysis of Impediments to Fair Housing as part of the consolidated planning process. The City updates the consolidated plan every five years. The City supports equal opportunity lending programs and nondiscriminatory practices in selection of residents for participation in the City’s housing assistance programs. The City also sponsors an Annual Housing Fair in which CRLA hosts one of the workshops on Landlord and Tenant Rights. The City also distributes the Consumer Affairs “Tenant Rights and Responsibilities” booklet, and Fannie-Mae “Your Credit Rights” booklet at the Annual Housing Fair and the City’s Permit Center.

Objective:
• Continue to support the State Office of Fair Employment and Housing, CRLA, and equal opportunity lending programs.
• Continue to support efforts by the Housing Authority and other agencies to list units accessible to disables persons.

Timeframe: Throughout the Planning Period
Responsible Agency: Community Development Department
Funding Source: Community Development Block Grant
Program E.2: Housing for Persons with Physical Disabilities The City will continue to collaborate with nonprofit housing partners and keep resources updated on the City website for persons with physical disabilities. The City will take additional steps to facilitate housing units accessible to persons with physical disabilities and a barrier free environment.

Objective:
• Outreach annually to nonprofit housing partners and keep resources updated on the City website. • Create and promote informational materials on housing accessibility, rehabilitation, and maintenance resources – complete by December 2025.
• Hold a workshop with relevant community organizations and groups to discuss the needs of persons with disabilities and identify whether additional resources and development concessions

Chapter 2: Policy Plan 2-25
are needed by December 2025. If necessary changes are identified, adopt amendments to the Building Code, Zoning Ordinance, or other relevant policy and regulatory documents as needed within 6 months.
• Extend search times for particular groups with housing choice vouchers, such as larger families with children or persons with disabilities by December 2025. • Adopt accessibility programs focused on improving access to housing, transit, public buildings and facilities, sidewalks, pedestrian crossings, and businesses by December 2026.

Timeframe: Monitor annually throughout the Planning Period. Evaluate and establish accessibility programs, as appropriate, within the first 3 years of Planning Period.

Responsible Agency: Community Development Department
Funding Source: General Fund
Program E.3: Housing for Persons with Developmental Disabilities The housing needs of persons with developmental disabilities are typically not fully addressed by local zoning regulations and may require modifications to existing units, varying range of supportive services, and affordable housing. To accommodate residents with developmental disabilities, the City will encourage construction and rehabilitation of housing with supportive services targeted for persons with developmental disabilities in compliance with ADA and other zoning and land use laws. The City will also seek State and Federal funding in support of housing construction and rehabilitation targeted for persons with developmental disabilities.

The City will explore regulatory incentives, such as expedited permit processing and fee deferrals, for projects targeted towards persons with developmental disabilities. To further facilitate the development of units to accommodate persons with developmental disabilities, the City will collaborate with developers of supportive housing.

Objective:
• Encourage construction and rehabilitation of housing with supportive services for persons with developmental disabilities.
• Seek State and Federal funding to support housing construction for persons with developmental disabilities.
• Review and identify regulatory incentives for projects proposing housing for persons with developmental disabilities.
• Collaborate with housing developers and local organizations to identify the needs of local persons with developmental disabilities.
• Collaborate with local organizations and agencies to identify resources and services for persons with disabilities experiencing homelessness.

Timeframe: Review and develop incentives by June 2026; Review funding and incentives annually; Annual outreach to housing developers and local organizations.

Responsible Agency: Community Development Department
Funding Source: General Fund

Chapter 2: Policy Plan 2-26
Program E.4: Affirmatively Further Fair Housing
Pursuant to AB 686, the City will affirmatively further fair housing by taking meaningful actions that foster inclusive communities free from barriers, which restrict access to opportunities based on protected classes, as defined by State law. To accomplish this, the City will collaborate with local and regional organizations to review any housing discrimination complaints, assist in dispute resolution, and refer select complainants to appropriate state or federal agencies for further investigation, action, and resolution.

The City will continue to collaborate with the community, stakeholders, and appropriate organizations to address potential constraints to fair housing.

Objectives:
• Partner with the Housing Authority to assist lower-income households in finding housing throughout the Planning Period.
• On a project-by-project basis, promote the development of affordable units through the Affordable Housing Ordinance requirements through construction of units versus payment of housing in-lieu fees.
• Biennially review of the number of affordable units built and adopt amendments within one year if there is a trend showing developers are paying housing in-lieu fees rather than building affordable units.
• Facilitate the construction of 184 ADUs.
• Facilitate the construction of 100 units for special needs populations. • Partner with the County to annually provide HCV rental assistance for up to 350 lower-income households through the end of the Planning Period.
• Partner with the Housing Authority to provide home purchase assistance for a minimum of 20 households by the end of the Planning Period.
• Create and promote a SB 9 factsheet by December 2026. • Facilitate the construction of 10 units through SB 9 developments. • Facilitate the development of 150 missing middle housing units. • Promote public infrastructure improvements in areas near selected Housing Element sites. • Affirmatively Further Fair Housing by taking the following meaningful actions addressing local contributing factors and fair housing issues:

Chapter 2: Policy Plan 2-27
Fair Housing Issues, Contributing Factors and Meaningful Actions Fair Housing Issue Contributing Factor Priority and
Geography Meaningful Action
Fair Housing
Outreach

1. Lack of local private fair
housing outreach and
enforcement may be a
significant contributing
factor to fair housing
issues in the region.

AMBAG area is served
by quality private, nonprofit fair housing
organizations, do not
have the capacity to
serve the total need for
their services. With
greater resources,
victims of discrimination
would be more able to
exercise their rights and
remedies.

2. Lack of local public fair
housing outreach and
enforcement may also
be a significant
contributing factor.

High
Focus on
Downtown
Specific Plan
area and higher
density multifamily zones
The City will continue to disseminate
information regarding fair housing in a
variety of locations including City Hall, the
City website and the public library, and
conduct ongoing, proactive outreach to
engage members of all socio-economic
groups and recruit members of
underrepresented groups to participate in
City meetings.

The City will continue to seek funding to
support the Community Action Board,
Catholic Charities and other local entities
that provide community education,
individual counseling, mediation, and lowcost advocacy with the expressed goal of eliminating housing discrimination and
guaranteeing the rights of all people to
freely choose the housing for which they
qualify in the area they desire.

The City will collaborate with
governmental and non-governmental
entities and conduct annual fair housing
outreach targeted Watsonville residents
and landlords.

Access to
Opportunity
Lack of access to
opportunity due to high
housing costs, lack of
housing choices, services
and amenities may be a
significant contributing
factor to fair housing issues
in Watsonville and the local
region. Increasing housing
affordability would make it
easier for low-income
households to access the
types of services and
amenities that further social
mobility.

High
Focus on
Opportunity
sites in the
Downtown
Specific Plan
area
The City will seek to improve access to
opportunity for lower-income households
and other protected classes by providing
adequate sites for affordable housing
development, encouraging the production
of ADUs, and facilitating the production of
housing for persons with special needs.

Mobility Actions
Availability of
Affordable Housing
General lack of a range of
affordable housing
opportunities and housing
product types.

Medium
Focus efforts in
single family
zones and
improve
opportunities in
Recruit at least 5 landlords to become
participating voucher properties within
five years of the planning period.

Create and promote informational
materials about the location of
participating voucher properties and

Chapter 2: Policy Plan 2-28
Fair Housing Issues, Contributing Factors and Meaningful Actions Fair Housing Issue Contributing Factor Priority and
Geography Meaningful Action
the Downtown
area
availability of voucher programs/financial
assistance.

Evaluative Metric(s):
• Reduce voucher waitlist by 10
percent annually.
• Increase landlord participation by
5 percent annually.
• Reach at least 100 residents on
annual basis.
• Increase voucher participation in
relatively higher opportunity or
income areas by at least 20
percent in the planning period.

High
Focus on efforts
in single family
zones and
improve
opportunities
and new
opportunity
areas
The City has a substantial amount of land
appropriately zoned for low density
residential development. To accommodate
an expansion in opportunity for a variety of
housing options, including development
type and affordability, the City will conduct
the following actions:
• Implement the Downtown
Watsonville Specific Plan and
permit a variety of higher density
housing types in residential only
and mixed used developments.

Provide for tailored development
standards and densities to
encourage the availability of
additional housing types and
affordability options.
• Biannually seek funding and other
strategies to promote
affordability.
• Homesharing: Research and
evaluate the feasibility of a
homesharing program, including
research and coordination with
non-profit and other organizations
to assist with matching tenants
with existing homeowners. The
City will market and promote a
homesharing program if deemed
feasible and effective. The City will
provide for annual
coordination/meetings with nonprofits to further the homesharing program.

Chapter 2: Policy Plan 2-29
Fair Housing Issues, Contributing Factors and Meaningful Actions Fair Housing Issue Contributing Factor Priority and
Geography Meaningful Action
• In coordination with research
being conducted at the State level,
evaluate and pursue opportunities
to incentivize and provide funding
assistance for homeowners to
provide affordable units under SB

9. • Accessibility Improvements:

Research and pursue funding
opportunities at least every other
year to make accessibility
improvements to homes and
community infrastructure.
• Alternative Land Use Strategies:

The City will explore through the
General Plan update, additional
alternative land use strategies to
facilitate development of a variety
of housing choices, including but
not limited to higher density
opportunities, missing middle
housing in addition to SB 9, SB 10
units, adaptive reuse, ADU and
JADU, density modifications and
other appropriate strategies to
enhance housing choice in
Watsonville.

Evaluative Metric(s):
• General Plan land use
amendments by December 2026
• Provide Zoning Ordinance
implementation amendments for
General Plan amendments by
December 2027, as appropriate.
• Provide additional opportunities
to accommodate the City’s RHNA
obligation for very-low and lowincome households through a variety of housing types and
design options.
• Annual outreach to developers
• Review progress by 2026 to ensure
significant progress toward
increasing housing mobility,
choice, and affordability
throughout all neighborhoods.

Chapter 2: Policy Plan 2-30
Fair Housing Issues, Contributing Factors and Meaningful Actions Fair Housing Issue Contributing Factor Priority and
Geography Meaningful Action
Medium
Focus efforts in
single family
zones and
improve
opportunities in
the Downtown
area
Disseminate affordable housing
information and listings on the City’s
website.

Evaluative Metric(s):
• Reach at least 500 residents on
annual basis
Medium
Focus efforts in
single family
zones and
improve
opportunities in
the Downtown
area
Conduct affirmative marketing to increase
awareness and diversity throughout the
city and areas with identified displacement
risk. This is aimed at ensuring existing
residents are not displaced, as well as
providing opportunity for residents within
the surrounding region.

Specifically, this may include, but is not
limited to, noticing of affordable
units/projects through direct mail targeted
outreach to all lower income census tracts
and households in the City, publishing
advertising materials in multiple language,
informing service agencies, outreach to
community organizations or places of
worship.

Provide housing mobility counseling either
directly or through referrals. This
counseling may include, but is not limited
to, information on opportunity areas,
housing search skills and tools, workshops,
search assistance, referrals, structured
support for a time after a move to the City,
landlord-tenant mediation, and retention
counseling.

Evaluative Metric(s):
• Reach at least 100 residents on
annual basis
Create an Affordable
Housing Database
and Outreach toolkit
to help lower income
families match
opportunities based
on individual needs
Limited opportunity for
access to affordable housing
options for families
Medium
Focus efforts in
areas with
multiple family
housing and
lower income
households
Coordinate with the Housing Authority to
assist with improving voucher mobility at
local level by:
• Identifying local staff to commit
increased administrative function
to support voucher mobility
programs by December 2025.
• Establish a customer service
framework including dedicated
phone number, email and contact
information by December 2025

Chapter 2: Policy Plan 2-31
Fair Housing Issues, Contributing Factors and Meaningful Actions Fair Housing Issue Contributing Factor Priority and
Geography Meaningful Action
• Establish an annual monitoring
program to evaluate success of
voucher mobility program by
December 2026. Provide for
annual program amendments as
necessary.

Evaluative Metric:
• Target up to 25 percent of total
annual Voucher recipients.
• Develop database and toolkit by
December 2026.
• Target to assist 25 lower income
families on an annual basis.

Annually review the
Sites Inventory and
the location of new,
affordable housing
development.

Promote equal and
fair housing
development
practices by annually
reviewing to make
sure there remains
opportunities for
affordable housing
development
throughout the
whole City.

Limited opportunity for
residential development in
sites accommodating
multiple family development
Medium
Focus in areas
adjacent to
services
Make progress in meeting the City’s RHNA
obligation throughout the Planning Period.
• Annual RHNA progressing
reporting through APR
Evaluative Metrics:
• Seek to identify annual progress
in bringing 100 percent of needed
units to market within the
Planning Period.
• Annual meetings with developers
to explore affordable housing and
non-traditional single family
housing opportunities.
• Look into place-based strategies
in order to improve local
infrastructure, especially near
Housing Element selected sites.
• Participation by at least 5
affordable housing developers in
the Planning Period
Timeframe: By December 2026 and throughout the Planning Period Responsible Agency: Community Development Department
Funding Source: General Fund

Program E.5: Energy Conservation
The City will continue to post and distribute information on currently available weatherization and energy conservation programs to residents and property owners through annual mailings in City utility billings, distribution of program information to community organizations and at municipal offices, and the City’s website. The City will continue to enforce state requirements, including Title 24 of the California Code of Regulations, for energy conservation in new residential projects and will encourage residential developers

Chapter 2: Policy Plan 2-32
to employ additional energy conservation measures for the siting of buildings, landscaping, and solar access through programs in the Energy Action Plan.

The City will encourage the development of affordable housing units that use alternative energy, low energy demand appliances, passive and solar heating, and other appropriate methods and provide in-kind assistance to developers to pursing funding to incorporate into development projects.

Objective:
• Increase public awareness and information on energy conservation opportunities and assistance programs for new and existing residential units and comply with state energy conservation requirements.

Timeframe: Throughout the Planning Period
Responsible Agency: Community Development Department
Funding Source: General Fund, State, Federal Funds, Grants Program E.6: Farmworker and Workforce Housing
The City will update applicable sections of the Municipal Code to comply with provisions for farmworker and workforce housing in compliance with the Employee Housing Act (Sections 17000-17062.5 of the California Health and Safety Code), which states the following:
• Any employee housing providing accommodations for six or fewer employees shall be deemed a single-family structure with a residential land use.
• Any employee housing consisting of no more than 36 beds in a group quarter, or 12 units or spaces designed for use by a single family or household shall be deemed an agricultural land use. • Additionally, no conditional use permit, zoning variance, or other zoning clearance shall be required of employee housing that serves six or fewer employees and employee housing developments which are located on land classifies as agricultural may be subject to a streamlined, ministerial approval process, and is not subject to a conditional use permit. • Employee housing that serves six or fewer employees or is deemed an agricultural land use shall not be subject to any business taxes, local registration fees, use permit fees, or other fees to which other family dwellings of the same type in the same zone are not likewise subject to.

Objective:
• Amend the Zoning Ordinance to comply with agricultural and employee housing requirements as established by California Health and Safety Code Section 17021.5 and 17021.6.

Timeframe: Revise Zoning Ordinance by December 2025
Responsible Agency: Community Development Department
Funding Source: General Fund, State, Federal Funds, Grants

Chapter 2: Policy Plan 2-33
Program E.7: Environmental Justice Element
In accordance with SB 1000, the City will incorporate environmental justice objectives, policies, and programs throughout the General Plan as part of the comprehensive 2050 General Plan Update.

Objective:
• Incorporate environmental justice objectives, policies, and programs in the 2050 General Plan Update.

Timeframe: Adopt by December 2026
Responsible Agency: Community Development Department
Funding Source: General Fund

C. Summary of Quantified Objectives
State law requires the Housing Element to include quantified objectives for the maximum number of units that can be rehabilitated, conserved, or constructed. Policies and programs have been established to achieve these objectives. Table 2-1 summarizes the County’s quantified objectives for the 2023-2031 planning period by income group.

Table 2-1: 6th Planning Cycle Quantified Objectives
Objectives
Income Level
Extremely Total
Low-*
Very
Low-*
Low- ModerateAbove
ModerateRHNA 141 142 186 521 1,063 2,053
New Construction
Projected ADU Construction 92 46 46 184
Pipeline Projects 127 70 315 512
Selected Sites 323 509 1,078 1,868
Conservation and Preservation
Home Repair/Rehabilitation 12 0 0 12
At-Risk Housing Units 100 0 0 100
Household Assistance
Rental Assistance** 350 0 0 350
* The Very Low-Income (VLI) category includes Extremely Low-Income (ELI) households (<30% AMI) and accounts for half of the total VLI RHNA. The total ELI RHNA is 141 units.
** Provide housing choice voucher rental assistance for 350 extremely low- and very low-income households each year throughout the Planning Period.

APPENDIX A Element Update REVIEW OF PAST PERFORMANCE

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Appendix A: Review of Past Performance A-1
Review of Past Performance
This Appendix provides a review of the City’s housing and program performance throughout the 2015- 2023 planning cycle. It is an evaluation of the 5th Cycle’s policy actions and considers the City’s progress towards completing all programs outlined within the previous 5th Cycle Housing Element. In addition, this review also details the steps the City has taken to provide for the needs of special housing groups.

A. Special Housing Needs Resources
The City of Watsonville has demonstrated a significant effort in working towards accomplishing the objectives set for the programs of the past cycle. During the 5th cycle, the City completed a number of key programs to support housing opportunity and made substantial progress towards many of its programs.

The City’s successful programs have been identified as continued and ongoing for the 6th cycle, due to their success in the previous cycle.

1. Seniors
Appendix B Shows that 11.3 percent of Watsonville residents are over the age of 65. This percentage has been increasing while children and the middle-aged population decrease. Seniors represented 9.4 percent of the population in 2010, dropped slightly to 9.3 percent in 2015, and jumped to 11.3 percent in 2021.

The City supported the senior population through a variety of programs specifically focused on the development of affordable housing as many seniors are on restricted incomes and are in need of affordable housing options.

The City has implemented programs that address housing issues related to seniors. The list of programs provided includes:
• Program A.3 Preservation of Affordable Housing – The City has made efforts to protect at-risk affordable housing units, including units designated for seniors. • Program B.3 Housing Choice Voucher (HCV) Rental Assistance – Through joint efforts between the Housing Authority of Santa Cruz (HACSC) and the City, 4,294 project- and tenant-based housing vouchers have been provided to lower income households, which includes seniors. • Program C.5: Affordable Housing Ordinance – The City’s Affordable Housing Ordinance has facilitated and helped create a growing affordable housing inventory. With new development projects being required to include up to 20 percent of affordable units, the Ordinance has been impactful in creating affordable living opportunities for Seniors with lower income. • Program C.8: Transitional Housing and Emergency Shelters – In 2018, the City adopted the Emergency Shelter Ordinance. This allowed emergency shelters to be principally permitted in the public facilities (PF) and Institutional (N)zones. Program C.8 will allow transitional and supportive housing to become principally permitted in all residential zones. Program C.8 will allow lower income seniors to bridge the gap between homelessness and permanent housing. • Program E.1: Fair Housing Program – The City continues to promote the Fair Housing Program by referring all alleged fair housing cases to the State Office of Fair Employment and Housing.

Additionally, the City is also an active participant in various housing and service provider boards,

Appendix A: Review of Past Performance A-2
as well as an active collaborator with other local agencies and non-profits that promote senior special need housing.
• Program E.2: Housing for Persons with Physical Disabilities – Due to seniors being more likely to experience physical disabilities as they get older, the City continues to promote and support the provision of accessible housing units for seniors with disabilities. • Program E.3: Housing for Persons with Developmental Disabilities – Like physical disabilities, Seniors are more likely to experience developmental disabilities as they get older. The City is an active participant in various housing and service provider boards, as well as an active collaborator with other local agencies and non-profits that promote senior housing for those with special developmental needs.

The City provided information about housing choice vouchers and housing assistance at the counter and on the City’s webpage both of which provide important supportive resources for lower income households, including senior households. The HOME Tenant-Based Rental Assistance (TBRA) program provides subsidies to low-income, senior, and disabled households at varying levels based on household income (Program B.3). Through the Housing Authority of the County of Santa Cruz (HACSC), Watsonville residents may receive TBRA voucher assistance. The Housing Authority tracks these vouchers by zip codes, which include areas outside of the City’s limits. The table below provides the number of project-based and tenant-based vouchers granted throughout the 5th cycle planning period.

Table A-1: TBRA Vouchers
Project-Based Vouchers Tenant-Based Vouchers Total
301 3,993 4,294
Source: Santa Cruz County Housing Authority, Watsonville Consolidated Plan 2020-2024 Elderly homeowners generally tend to prefer to stay in their own homes as long as possible. If family members are nearby, they can also assist with basic care needs, enabling seniors to remain in their homes longer. However, this is not always possible. Senior Network Services helps match seniors in shared housing arrangements.

The City’s Senior Center provides elderly residents with social networking opportunities through a variety of activities such as computer classes, social events, and weekday meals, served by meals on wheels.

Additionally, home delivery by Meals on Wheels is also available for residents to use. Other services available to seniors in Watsonville are Grey Bears Healthy Food Program and Second Harvest Food Bank; which provide a weekly grocery bag filled with fresh produce and healthy staples and a Farmers Marketstyle food bank, respectively. Project Scout, a tax assistance service is available to help the elderly understand and do their taxes. Community Bridges also provides the Lift Line service, which provides doorto-door rides to people with mental or physical challenges and elderly residents. This service is free of cost to qualifying residents of Santa Cruz County. As a continuation from the 5th Cycle Housing Element, the City continues to analyze current conditions and implement methods to reduce constraints to special needs housing (Programs E.1, E.3).

Appendix A: Review of Past Performance A-3
Summary of Effectiveness
• The City facilitated affordable housing development, leading to additional units available for seniors on lower or fixed incomes.
• Through the use of HCV’s, the City provided opportunity for seniors to have affordable housing on lower or fixed incomes.
• The City ensured that seniors on lower or fixed incomes were not at risk of housing displacement. • For seniors that were experiencing homelessness, the City provided support through transitional housing to bridge the gap between homelessness and permanent housing.

2. Persons With Disabilities
Persons with disabilities may require various accessibility improvements and may also have a limited ability to earn adequate income. Approximately 13.6 percent of the Watsonville population has at least one disability. The most common disabilities in Watsonville are cognitive, ambulatory, and independent living difficulties.

The City has implemented programs that address housing issues related to persons living with disabilities.

The list of programs provided includes:
• Program A.3: Preservation of Affordable Housing – The City has made efforts to protect at-risk affordable housing units, including units designated for persons with disabilities. While none are currently at-risk, the City keeps a record of those units, as well as their expiration. • Program B.3: Housing Choice Voucher (HCV) Rental Assistance – Through joint efforts between the (HACSC) and the City, 4,294 project- and tenant-based housing vouchers have been provided to lower income households, which includes homes for persons with disabilities. • Program B.4: Relocation Assistance Ordinance – Housing relocation is considered much more difficult for person with disabilities, as they may not have the ability or means to leave unsafe and substandard housing conditions. In the 5th cycle, the City assisted 66 households in relocating to more safe and secure housing developments.
• Program C.5: Affordable Housing Ordinance – The City’s Affordable Housing Ordinance has facilitated and helped create a growing affordable housing inventory. With new development projects being required to include up to 20 percent of affordable units, the Ordinance has been impactful in creating affordable living opportunities for persons with disabilities. • Program C.8: Transitional Housing and Emergency Shelters – In 2018, the City adopted the Emergency Shelter Ordinance. This allowed emergency shelters to be principally permitted in the public facilities (PF) and Institutional (N)zones. Program C.8 will allow transitional and supportive housing to become principally permitted in all residential zones. Program C.8 will allow lower income persons with disabilities to bridge the gap between homelessness and permanent housing.
• Program E.1: Fair Housing Program – The City continues to promote the Fair Housing Program by referring all alleged fair housing cases to the State Office of Fair Employment and Housing.

Additionally, the City is also an active participant in various housing and service provider boards,

Appendix A: Review of Past Performance A-4
as well as an active collaborator with other local agencies and non-profits that promote housing for persons with disabilities.
• Program E.2: Housing for Persons with Physical Disabilities – For those with disabilities that limit their physical mobility, finding housing that is accessible can be a burden. The City continues to promote and support the provision of accessible housing units in projects for persons with physical disabilities.
• Program E.3: Housing for Persons with Developmental Disabilities – Similar to physical disabilities, it is much more difficult to find housing that accommodates for those with developmental disabilities. The City is an active participant in various housing and service provider boards, as well as an active collaborator with other local agencies and non-profits that promote and create housing for those with special developmental needs.

Persons with disabilities may experience difficulties locating accessible and affordable rental housing close to public transportation. The Santa Cruz County Human Resources Agency coordinates federal, state, and county government funding for programs and services for disabled populations in the City. A number of services and facilities available to the community are listed in Appendix F.

According to Watsonville’s 2020-2024 Consolidated Housing Plan, the HACSC has 885 vouchers available for those that are experiencing a disability. There are eight public housing developments in the City with 135 total units, nine of which are wheelchair accessible. Of the 80 units projected to be a part of the Pippin II Apartment Development, 12 units will be designated for households with supportive housing needs.

Additionally, housing developments on Freedom Lane and Miles Lane in the City will designate 5 and 7 housing units for people with disabilities, respectively (Program C.5).

The City provided assistance to the following social service organizations for persons with disabilities:
• Lift Line (Community Bridges) provides transportation services. • Meals on Wheels (Community Bridges) provides a daily visit and a nutritious meal. • Hope Services provide services and assistance for developmentally disabled persons. • Central Coast Center for Independent living services persons with disabilities and provides continuum of care.
• Encompass provides housing, counseling, substance use recovery, reentry, and health and financial services to individuals, families, and youth with disabilities. • Family Service Agency of the Central Coast provides resources, support, and counseling. • Housing Choices Coalition creates housing opportunities for people with developmental and other disabilities.
• San Andreas Regional Center serves individuals with developmental disabilities and their families who reside within Monterey, San Benito, Santa Clara, and Santa Cruz counties. • Volunteer Center of Santa Cruz County provides transportation services.

Rental subsidies provided by the HACSC also play a key role in providing affordable housing for individuals experiencing disabilities. According to the HACSC 2020 Administrative Plan, Pippin Orchards provides 31

Appendix A: Review of Past Performance A-5
PBVs for disabled adults, homeless youth with a disability, and families. A centralized database was also created for individuals with disabilities to find accessible housing throughout the City (Programs E.1, E.2, E.3). The City continues to analyze current conditions and implement methods to reduce constraints to special needs housing (Program E.3).

Summary of Effectiveness
• The City facilitated affordable housing development, leading to additional units available for persons with disabilities on lower or fixed incomes.
• Through the use of HCV’s, the City provided opportunity for persons with disabilities to have affordable housing on lower or fixed incomes.
• The City ensured that persons with disabilities on lower or fixed incomes were not at risk of housing displacement.
• For persons with disabilities that were experiencing homelessness, the City provided support through transitional housing to bridge the gap between homelessness and permanent housing. • For persons with disabilities living in unsafe housing conditions, the City assisted in the relocation those residents through the Relocation Ordinance.

3. Persons Experiencing Homelessness
Homelessness continues to be an important issue in the region and throughout California. There are multiple factors that may contribute to a person experiencing homelessness; Appendix C provides a detailed definition of “homelessness” and an analysis of the City and County’s unhoused population.

Resources available for persons experiencing homelessness are listed in Appendix F.

The City has implemented programs that address housing issues related to persons experiencing homelessness. The list of programs provided includes:
• Program A.3: Preservation of Affordable Housing – In order to allow homeownership opportunity, preservation of affordable housing units is a vital component. This is particularly true for person experiencing homelessness. The City has made efforts to protect at-risk affordable housing units, including units designated for persons experiencing homelessness.

While none are currently at-risk, the City keeps a record of those units, as well as their expiration. • Program B.3: Housing Choice Voucher (HCV) Rental Assistance – For those experiencing homelessness, it is extremely difficult to find housing that is affordable, as their income might be far too low to qualify for loans. Through joint efforts between the HACSC and the City, 4,294 project- and tenant-based housing vouchers have been provided to lower income households, which can include households experiencing homelessness. • Program B.6: Application for Grants and Loans – To further combat housing insecurity, the City actively applies for State and Federal grants and loans to help alleviate the burden of finding housing for persons experiencing homelessness.
• Program C.5: Affordable Housing Ordinance – The City’s Affordable Housing Ordinance has facilitated and helped create a growing affordable housing inventory. With new development

Appendix A: Review of Past Performance A-6
projects being required to include up to 20 percent of affordable units, the Ordinance has been impactful in creating affordable living opportunities for persons experiencing homelessness. • Program C.6: Partnership with Non-Profit Housing Agencies – The City continues to collaborate with non-profit housing developers (Mid Peninsula, Habitat for Humanity, etc.) to further combat and solve the issue of housing insecurity in Watsonville. Through these partnerships, a number of affordable housing units have been developed to provide housing opportunity for those that are experiencing homelessness.
• Program C.8: Transitional Housing and Emergency Shelters – The 2018 Emergency Shelter Ordinance allowed emergency shelters to be principally permitted in the public facilities (PF) and Institutional (N) zones. Program C.8 will allowtransitional and supportive housing to become principally permitted in all residential zones. Program C.8 will beinstrumental in bridging the gap between homelessness and permanent housing.
• Program D.4: Accessory Dwelling Units and Junior Accessory Dwelling Units – The City uses the Accessory Dwelling Unit Ordinance to provide more affordable and accessible housing opportunity for persons experiencing homelessness. Since ADUs and JADUs can developed as infill and on smaller lots, they can create much more affordable opportunities. • Program E.1: Fair Housing Program – The City continues to promote the Fair Housing Program by referring all alleged fair housing cases to the State Office of Fair Employment and Housing.

Additionally, the City is also an active participant in various housing and service provider boards, as well as an active collaborator with other local agencies and non-profits that promote housing for persons experiencing homelessness.
• Program E.2: Housing for Persons with Physical Disabilities – For those with disabilities that limit their physical mobility, finding housing that accessible can be a burden. This is especially true for Watsonville residents that are experiencing homelessness. The City continues to promote and support the provision of accessible housing units in projects for persons with physical disabilities. • Program E.3: Housing for Persons with Developmental Disabilities – Similar to physical disabilities, it is much more difficult to find housing that accommodates for those with developmental disabilities and are experiencing homelessness. The City is an active participant in various housing and service provider boards, as well as an active collaborator with other local agencies and non-profits that promote and create housing for those with special developmental needs experiencing homelessness.

Like other communities in California, the City has been working diligently to address very high levels of unsheltered homelessness. City staff have work extensively with the Santa Cruz County Continuum of Care (CoC), other jurisdictions, the community, and affected persons to develop and implement new programs, such as new emergency services, emergency shelters, and navigation centers, to address immediate needs (Program C.8). This has included coordinating with the Homeless Action Partnership (HAP) Board and HAP Executive Committee to identify program priorities and make funding decisions through the Countywide Permanent Local Housing Allocation (PLHA) Draft Five-Year Plan for the California Emergency Solutions and Housing Program (CESH), Homeless Emergency Aid Program (HEAP), the Homeless Housing Assistance and Prevention Program (HHAP), and for County and City funding sources (Program B.6). The implementation of the emergency shelter ordinance (Program C.8) and funding for homeless services and

Appendix A: Review of Past Performance A-7
housing development (Program B.6) aims to reduce constraints regarding transitional housing and emergency shelters development (Programs E.1, E.2, E.3).

Rental subsidies also played a key role in achieving housing affordability during the 5th planning cycle.

HACSC provides project-based vouchers (PBVs) for individuals and families experiencing homelessness at affordable housing sites in Watsonville. According to the HACSC 2020 Administrative Plan, the City housed 14 PBV units for formerly homeless veterans, homeless disabled youth, and homeless families at Resetar Residential Hotel, Pippin Orchards, and the Pajaro Valley Shelter. Currently, 1,600 households participate in the Section 8 program throughout the City (Program B.3).

The City coordinates closely with the CoC and all of its members. The CoC covers the entire geography of Santa Cruz County, including the Cities of Watsonville, Santa Cruz, Capitola, and Scotts Valley, as well as large unincorporated areas. The lead planning body for the CoC is the HAP, a community-wide action team that meets regularly. The City of Watsonville participates in all HAP meetings and takes a leadership position in the CoC by serving as a member of the HAP Governing Board, which makes key CoC and other funding and policy decisions. The HAP Executive Committee coordinates the activities of the County and cities around a unified CoC strategy and plan for preventing and ending homelessness. The full HAP includes 30 active organizational and individual members representing all geographic parts of the county, as well as a broad range of stakeholder categories such as nonprofit homeless assistance providers, mental health agencies, health providers, affordable housing developers, Veteran’s service providers, youth services providers, and persons with lived experience of homelessness.

The CoC and City of Watsonville work closely together to address the needs of varied homeless populations, including persons experiencing chronic homelessness, families with children, Veterans, unaccompanied youth, as well as the needs of persons who are at risk of homelessness. These efforts are guided and defined by the CoC’s and the community’s 2015 homeless strategic plan, called All In: Toward a Home for Every County Resident (All In). All In provides the vision and framework for countywide coordination to address the needs of all homeless populations, and includes specific outcome goals, measurable indicators, and action strategies for addressing the following eight strategic priorities:

1. Transforming the Crisis Response System

2. Increasing Access to Permanent Housing

3. Integrating Systems and Community Support

4. Ending Chronic and other Adult Homelessness

5. Ending Family Homelessness

6. Addressing Needs in South County

7. Initiating a Response to Youth and Adult Homelessness

8. Ending Veteran Homelessness
Discharge Planning is a key strategy for preventing homelessness by instigating changes within systems that regularly discharge people directly to homelessness. The County Homeless Persons’ Health Project (HPHP) leads implementation of policies and protocols for homeless people leaving hospital care. HPHP’s Project Connect provides frequent users of emergency rooms with intensive services to prevent hospitalization and homelessness. Hospital discharge planners contact HPHP when a homeless person is hospitalized. HPHP nurses and caseworkers visit and coordinate with all hospitals (and six (6) community

Appendix A: Review of Past Performance A-8
clinics) to ensure homeless people receive case management and housing upon discharge. For Medi-Cal individuals discharged from a hospital stay, the first step is often a recuperative care program, such as the 12-bed Coral St. recuperative care unit or the medically frail motel program of Community Action Board.

HPHP also works with the following providers (among others) to place those who are ready into long-term housing. The City addresses the needs of individuals experiencing homelessness by ongoing support of local service agencies through the City's Social Service Grant Program. Projects are currently in the pipeline to provide housing for persons experiencing homelessness:
• Pajaro Valley Shelter Services (PVSS) utilized a comprehensive, outcome-oriented approach to homelessness, which also includes childcare and counseling to help move beyond the cycle of poverty.
• The Salvation Army manages the Loma Prieta Transitional Housing Complex, which rehabilitated three homes with FEMA 403 funds and technical assistance by the City’s Housing Rehabilitation Program. This program helps houseless individuals transition to permanent housing and independent living.
• In June 2023, the State announced their intent to grant $8 million in funding to help local agencies create a micro-village homeless shelter community for individuals experiencing homelessness along the Pajaro River. The emergency housing is estimated to provide 34 prefabricated units and will be constructed early in the 6th planning cycle. The shelters will have a limit on tenure, but time limits for a residents stay have not yet been established.

Summary of Effectiveness
• The City facilitated affordable housing development, leading to additional units available for persons experiencing homeless being able to obtain permanent housing. • Through the use of HCV’s, the City provided opportunity for persons experiencing homelessness to have affordable housing.
• For persons that were experiencing homelessness, the City provided support through transitional housing and relocation to bridge the gap between homelessness and permanent housing. • Through grant applications, loans, and housing vouchers, the City has received funding to help support persons experiencing homeless find a permanent place to live. • Through collaboration and partnerships with non-profit affordable housing agencies, the City facilitated several affordable housing projects that were developed to provide housing for persons with disabilities.
• The City’s programs have been effective in the support of helping persons experiencing homeless, which also includes seniors, and persons with disabilities that are experiencing homelessness.

4. Extremely Low-Income Households
HCD’s 2023 State Income Limits define extremely low-income (ELI) households as those that earn 30 percent or less of the area median income (AMI). For Santa Cruz County, that refers to households that make $34,600 for a 1-person household and $49,400 for a 4-person household. According to the 2016- 2020 Comprehensive Housing Affordability Strategy (CHAS) Data, there are approximately 4,020

Appendix A: Review of Past Performance A-9
extremely low-income households in Watsonville. Extremely low-income households are generally more likely to experience overpayment, overcrowding, or substandard housing conditions, and are more likely to include transitional and supportive housing.

The City has implemented programs that address housing issues related to ELI households. The list of programs provided includes:
• Program A.2: Housing Rehabilitation Loans – Housing rehabilitation can be very costly, and even more so for residents that are considered extremely low-income. The City routinely applies for funding to continue Housing Rehabilitation Loan Program, and has approved some lower income households in Watsonville for these loans in the 5th cycle. • Program A.3 Preservation of Affordable Housing – In order to allow homeownership opportunities, preservation of affordable housing units is a vital component. It is even considered crucial for families that are considered extremely low-income, as these affordable units may be their only path to homeownership. The City has made efforts that help protect at-risk affordable housing units, allowing households at this income level opportunity for homeownership. While none are currently at-risk, the City keeps a record of those units, as well as their expiration. • Program B.1: First Time Home Buyer Loans – For extremely low-income households, First Time Home Buyer Loans are a major method of achieving homeownership. The City has approved a total of 21 First Time Homebuyer Loans since 2018, and will continue to promote opportunities for these loans in the future.
• Program B.2: Down Payment Assistance Loans – ELI households are typically not in the position to achieve homeownership due to not having sufficient funds. As such, the City has made efforts to assist households in similar situations. As of 2018, the City has assisted with 6 Down Payment Assistance Loans.
• Program B.3 Housing Choice Voucher (HCV) Rental Assistance – ELI households have the opportunity to alleviate their housing burden through the use of HCV assistance. Through joint efforts between the HACSC and the City, 4,294 project- and tenant-based housing vouchers have been provided to lower income households, which can include ELI households. • Program B.4: Relocation Assistance Ordinance – Leaving dangerous or unsafe living conditions can be an impediment for ELI households. Housing costs that are out of an ELI households budget may lead them to staying in these dangerous buildings, as it is more financially feasible. As a result, the City of Watsonville uses the Relocation Assistance Ordinance to assist families in these situations. Since 2018, the City has assisted 66 households in relocating to more safe and secure housing developments.
• Program C.5: Affordable Housing Ordinance – The City’s Affordable Housing Ordinance has facilitated and helped create a growing affordable housing inventory. With new development projects being required to include up to 20 percent of affordable units, the Ordinance has been impactful in creating affordable living opportunities for ELI households. • Program C.6: Partnership with Non-Profit Housing Agencies – The City continues to collaborate with non-profit housing developers (Mid Peninsula, Habitat for Humanity, etc.) to further combat

Appendix A: Review of Past Performance A-10
and solve the issue of housing insecurity in Watsonville. Through these partnerships, a number of affordable housing units have been developed to provide housing opportunity for lower incomes such as ELI households.
• Program C.8: Transitional Housing and Emergency Shelters – The 2018 Emergency Shelter Ordinance allowed emergency shelters to be principally permitted in the public facilities (PF) and Institutional (N) zones. Program C.8 will allowtransitional and supportive housing to become principally permitted in all residential zones. Program C.8 will beinstrumental in helping ELI households secure eventual permanent housing.
• Program D.4: Accessory Dwelling Units and Junior Accessory Dwelling Units – The City uses the Accessory Dwelling Unit Ordinance to provide more affordable and accessible housing opportunity for ELI households. Since ADUs and JADUs can developed as infill and on smaller lots, the costs to build them is much less. Thus, ADUs and JADUs can be viable options for ELI households that are struggling with typical rent prices. • Program E.1: Fair Housing Program – The City continues to promote the Fair Housing Program by referring all alleged fair housing cases to the State Office of Fair Employment and Housing.

Additionally, the City is also an active participant in various housing and service provider boards, as well as an active collaborator with other local agencies and non-profits that promote housing for lower income households, including ELI households.
• Program E.2: Housing for Persons with Physical Disabilities – For those with disabilities that limit their physical mobility, finding housing that accessible can be a burden. This is especially true for Watsonville residents that are extremely low income, as they have additional financial burden as well. The City continues to promote and support the provision of accessible housing units in projects for persons with physical disabilities.
• Program E.3: Housing for Persons with Developmental Disabilities – Similar to physical disabilities, it is much more difficult to find housing that accommodates for those with developmental disabilities and are in ELI households. The City is an active participant in various housing and service provider boards, as well as an active collaborator with other local agencies and non-profits that promote and create housing for those with special developmental needs and ELI.

The City offers assistance in accessing local, state, and federal funding for affordable housing, as well as technical assistance. Throughout the 5th cycle, programs such as Section 8 rental assistance (Program B.3) provided rental subsidies to 1,600 very low- and extremely low-income households, 75 of which are project-based vouchers for ELI households. Additionally, the City facilitated the development of two affordable housing projects (125 low-income units) through the affordable housing ordinance (Program 12) and density bonus provisions (Program D.1). Recent projects are listed in Appendix C. The emergency shelter ordinance conditionally permits transitional housing in multi-family and some commercially designated areas. No applications have been submitted under the ordinance within the 5th planning cycle.

The City also provided information about housing choice vouchers and housing assistance at the counter and on the City’s webpage both of which provide important supportive resources for lower income households, including extremely low-income households. The City continues to reduce constraints to

Appendix A: Review of Past Performance A-11
special needs housing (Programs E.1, E.2, E.3) for ELI households who may fall into multiple special needs categories such as seniors with disabilities or homeless families.

Summary of Effectiveness
• The City facilitated affordable housing development, leading to additional units available for ELI households to gain access to housing.
• Through the use of HCV’s, the City provided opportunity for ELI households to have affordable housing in the form of project- and tenant-based vouchers. • For ELI households, the City provided support through transitional housing and relocation to bridge the gap between homelessness and permanent housing. • Through grant applications, loans, and housing vouchers, the City has received funding to help support ELI households find a permanent place to live.
• Through collaboration and partnerships with non-profit affordable housing agencies, the City facilitated several affordable housing projects that were developed to provide housing for ELI households in the City.
• Through the City’s efforts in facilitating ADU and JADU development, there has been additional affordable housing opportunity for ELI households.
• The City’s programs have been effective in the support of helping ELI households, which also includes seniors, persons with disabilities, farmworkers, and students.

5. Farmworkers
Farmworkers are a prominent portion of the City’s population. Farmworkers are traditionally defined by HCD as people whose primary incomes are earned through permanent or seasonal agricultural labor.

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

The City has implemented programs that address housing issues related to farmworkers. The list of programs provided includes:
• Program A.2: Housing Rehabilitation Loans – Due to the average income of farmworkers being lower than the median, rehabilitation for their housing can be burdensome. The City routinely applies for funding to continue Housing Rehabilitation Loan Program and has approved 3 very low-income households in Watsonville for these loans since 2018. • Program A.3 Preservation of Affordable Housing – As a result of their median income, it can be troublesome for farmworker households to secure affordable housing. The City has made efforts that help protect at-risk affordable housing units, allowing households at this income level

Appendix A: Review of Past Performance A-12
opportunity for homeownership. While none are currently at-risk, the City keeps a record of those units, as well as their expiration.
• Program B.1: First Time Home Buyer Loans – First Time Home Buyer Loans are useful tools to help lower income households achieve homeownership, such as farmworker households. The City has approved a total of 21 First Time Homebuyer Loans since 2018, and will continue to promote opportunities for these loans in the future.
• Program B.2: Down Payment Assistance Loans – Farmworker households are typically not in the position to achieve homeownership due to not having sufficient funds. As such, the City has made efforts to assist households in similar situations. As of 2018, the City has assisted with 6 Down Payment Assistance Loans.
• Program B.3: Housing Choice Voucher (HCV) Rental Assistance – Farmworker households have the opportunity to alleviate their housing burden through the use of HCV assistance. Through joint efforts between the HACSC and the City, 4,294 project- and tenant-based housing vouchers have been provided to lower income households, which can include farmworker households. • Program B.4: Relocation Assistance Ordinance – Leaving dangerous or unsafe living conditions can be an impediment for farmworker households. Farmworker household budgets may not allow them these dangerous buildings, as it is more financially feasible. As a result, the City of Watsonville uses the Relocation Assistance Ordinance to assist families in these situations. Since 2018, the City has assisted 66 households in relocating to more safe and secure housing developments.
• Program C.5: Affordable Housing Ordinance – The City’s Affordable Housing Ordinance has facilitated and helped create a growing affordable housing inventory. With new development projects being required to include up to 20 percent of affordable units, the Ordinance has been impactful in creating affordable living opportunities for farmworker households. • Program C.6: Partnership with Non-Profit Housing Agencies – The City continues to collaborate with non-profit housing developers (Mid Peninsula, Habitat for Humanity, etc.) to further combat and solve the issue of housing insecurity in Watsonville. Through these partnerships, a number of affordable housing units have been developed to provide housing opportunity for lower incomes such as farmworker households.
• Program C.8: Transitional Housing and Emergency Shelters – The 2018 Emergency Shelter Ordinance allowed emergency shelters to be principally permitted in the public facilities (PF) and Institutional (N)zones. Program C.8 will allowtransitional and supportive housing to become principally permitted in all residential zones. Program C.8 will beinstrumental in helping households like farmworkers secure eventual permanent housing. • Program D.4: Accessory Dwelling Units and Junior Accessory Dwelling Units – The City uses the Accessory Dwelling Unit Ordinance to provide more affordable and accessible housing opportunity for farmworker households. Since ADUs and JADUs can developed as infill and on smaller lots, the costs to build them is much less. Thus, ADUs and JADUs can be viable options for farmworker households that are struggling with typical rent prices.

Appendix A: Review of Past Performance A-13
• Program E.1: Fair Housing Program – The City continues to promote the Fair Housing Program by referring all alleged fair housing cases to the State Office of Fair Employment and Housing.

Additionally, the City is also an active participant in various housing and service provider boards, as well as an active collaborator with other local agencies and non-profits that promote housing for lower income households, including Farmworker households.

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

According to the American Community Survey, 3,624 Watsonville residents work in the agricultural field, with only educational services, healthcare, and social assistance having a higher number of employed residents at 4,457. Also, Watsonville residents employed in Farming, Fishing, and Forestry occupations earn one of the lowest salaries in comparison to other occupations, with an estimated median income of $19,864. This is considered extremely low-income for Santa Cruz County.

The City offers assistance in accessing local, state, and federal funding for affordable farmworker housing, as well as technical assistance. Throughout the 5th cycle, the City facilitated the development of affordable farmworker housing (Program C.5) and partners with non-profit organizations such as MidPen Housing to develop and maintain affordable housing for farmworkers and their families (Program C.6). Additionally, 56 place-based vouchers are anticipated to provide stable housing for farmworkers at Jardines del Valle, Villas del Parcuiso, and San Andreas housing developments (Program B.3). Recent projects are listed in Appendix C. The City also provided information about housing choice vouchers and housing assistance at the counter and on the City’s webpage both of which provide important supportive resources for lower income households, including extremely low-income households. The City continues to analyze current conditions and implement methods to reduce constraints to special needs housing (Programs E.1, E.2, E.3).

Summary of Effectiveness
• The City facilitated affordable housing development, leading to additional units available for farmworker households to gain access to permanent housing. • Through the use of HCV’s, the City provided opportunity for farmworker households to have affordable housing in the form of project- and tenant-based vouchers. • For farmworker households, the City provided support through transitional housing and relocation to bridge the gap between homelessness and permanent housing. • Through grant applications, loans, and housing vouchers, the City has received funding to help support farmworker households find a permanent place to live. • Through collaboration and partnerships with non-profit affordable housing agencies, the City facilitated several affordable housing projects that were developed to provide housing for households such as farmworkers in the City.

Appendix A: Review of Past Performance A-14
• Through the City’s efforts in facilitating ADU and JADU development, there has been more opportunity for farmworkers to have affordable housing. • The City’s programs have been effective in the support of helping farmworker households, which also includes seniors and persons with disabilities.

6. Higher Education
Students are a unique aspect of the City’s population as they may live in the City temporarily and are more likely to generally experience housing insecurity, housing cost burden, substandard housing conditions, and overcrowding. For example, students are typically unable to work full-time while attending school full-time. As such, they have much more limited disposable income for housing and often seek roommates to share rental and living costs. Through community outreach to student renters, participants shared stories of living with eight or more roommates in a home or living in illegally converted “bedrooms” (such as garages), unpermitted backyard structures, and personal vehicles. While there is no university in the City itself, the City of Watsonville is located near the University of California, Santa Cruz (UCSC) and Cabrillo College, which could potentially lead some students to looking for housing in Watsonville.

The City has implemented programs that address housing issues related to students. The list of programs provided includes:
• Program A.3 Preservation of Affordable Housing – Due to students usually having little to no income during their studies, it is much harder to secure housing that is affordable for them. The City has made efforts that help protect at-risk affordable housing units, allowing households at this income level opportunity for homeownership. While none are currently at-risk, the City keeps a record of those units, as well as their expiration. • Program B.1: First Time Home Buyer Loans – First Time Home Buyer Loans are useful tools to help lower income households achieve homeownership. Students who rent in Watsonville are more likely to obtain permanent residence in the city with the assistance of these loans. The City has approved a total of 21 First Time Homebuyer Loans since 2018, and will continue to promote opportunities for these loans in the future.
• Program B.3 Housing Choice Voucher (HCV) Rental Assistance – Student households have the opportunity to alleviate their housing burden through the use of HCV assistance. Through joint efforts between the HACSC and the City, 4,294 project- and tenant-based housing vouchers have been provided to lower income households, which can include student households. • Program B.4: Relocation Assistance Ordinance – Due to having limited income as a student, they are more likely to live and stay in buildings that are more dangerous, as the rent prices will be cheaper. As a result, the City of Watsonville uses the Relocation Assistance Ordinance to assist households in these situations. Since 2018, the City has assisted 66 households in relocating to more safe and secure housing developments.
• Program C.5: Affordable Housing Ordinance – The City’s Affordable Housing Ordinance has facilitated and helped create a growing affordable housing inventory. With new development projects being required to include up to 20 percent of affordable units, the Ordinance has been impactful in creating affordable living opportunities for students’ households.

Appendix A: Review of Past Performance A-15
• Program C.6: Partnership with Non-Profit Housing Agencies – The City continues to collaborate with non-profit housing developers (Mid Peninsula, Habitat for Humanity, etc.) to further combat and solve the issue of housing insecurity in Watsonville. Through these partnerships, a number of affordable housing units have been developed to provide housing opportunity for lower incomes such as student households.
• Program C.8: Transitional Housing and Emergency Shelters – The 2018 Emergency Shelter Ordinance allowed emergency shelters to be principally permitted in the public facilities (PF) and RM-3 zones. Program C.8 will allow transitional and supportive housing to become principally permitted in all residential zones. Program C.8 will be instrumental in helping households like students to secure eventual permanent housing.
• Program D.4: Accessory Dwelling Units and Junior Accessory Dwelling Units – The City uses the Accessory Dwelling Unit Ordinance to provide more affordable and accessible housing opportunity for lower income households. Since ADUs and JADUs can developed as infill and on smaller lots, the costs to build them is much less. Thus, ADUs and JADUs can be viable options for student households that are struggling with typical rent costs. • Program E.1: Fair Housing Program – The City continues to promote the Fair Housing Program by referring all alleged fair housing cases to the State Office of Fair Employment and Housing.

Additionally, the City is also an active participant in various housing and service provider boards, as well as an active collaborator with other local agencies and non-profits that promote housing for lower income households, including student households. • Program E.2: Housing for Persons with Physical Disabilities – For those with disabilities that limit their physical mobility, finding housing that accessible can be a burden. For students that also have physical disabilities, it can additional financial burden. The City continues to promote and support the provision of accessible housing units in projects for persons with physical disabilities. • Program E.3: Housing for Persons with Developmental Disabilities – Similar to physical disabilities, it is much more difficult to find housing that accommodates for those with developmental disabilities and are students. The City is an active participant in various housing and service provider boards, as well as an active collaborator with other local agencies and nonprofits that promote and create housing for those with special developmental needs.

The City offers assistance in accessing local, state, and federal funding for affordable student housing, as well as technical assistance. Throughout the 5th cycle, the City facilitated the development of affordable housing (Program C.5) and partners with non-profit organizations to maintain decent affordable housing conditions (Program C.6). Recent projects are listed in Appendix C. The City also provided information about housing choice vouchers and housing assistance at the counter and on the City’s webpage both of which provide important supportive resources for lower income households, including extremely lowincome households.

Summary of Effectiveness
• The City facilitated affordable housing development, leading to additional units available for students to gain access to permanent housing.

Appendix A: Review of Past Performance A-16
• For students, the City provided support through transitional housing and relocation to bridge the gap between potential homelessness and permanent housing. • Through grant applications, loans, and housing vouchers, the City has received funding to help support students in finding a permanent place to live in Watsonville. • Through collaboration and partnerships with non-profit affordable housing agencies, the City facilitated several affordable housing projects that were developed to provide housing for students living in the City.
• Through the City’s efforts in facilitating the development of ADUs and JADUs, there has been more affordable housing opportunities for students in the City.

Appendix A: Review of Past Performance A-17
B. 5
th Cycle (2015-2023) Housing Element Program Accomplishments Table A-2 provides detailed, program specific Accomplishments for 2015-2023. The City has demonstrated significant effort in working towards accomplishing many of the objectives established in the 2015 to 2023 Housing Element. The City’s successful programs have been identified as ongoing for the 6th planning cycle. Various programs have been modified in the 6th cycle Policy Plan to account for new requirements and changes in State Law.

Table A-2: 5th Cycle Housing Element Program Accomplishments Goals and Programs Five Year Objective Program Accomplishments /Effectiveness Status for 6th Cycle
Goal 1.0 Improve, conserve, and preserve both the safe condition of and the continued availability of Watsonville’s existing affordable housing stock in order to meet the housing needs of all economic segments of the community.

Program A.1 Code Enforcement: Code
enforcement is a means to ensure that the
character and quality of neighborhoods is
enhanced and maintained. Code
enforcement efforts in Watsonville focus
on bringing substandard units into
compliance with City building, housing,
and property maintenance codes.

The City will continue to carry
out code enforcement activities,
including performing property
inspections and citing code
violations, when necessary.
2018-2022: The City processed a total of 2,121 code
enforcement cases from 2018 to 2022. In the time period, the City was working on a backlog of complaints, which
led to the number of cases each year decreasing. The City will continue to process these cases in an efficient
manner.
2022: The City processed a total of 371 cases.
2021: The City processed a total of 374 cases.
2020: The City processed a total of 407 cases.
2019: The City processed a total of 506.
2018: The City processed a total of 463 cases.

The City has been effective in addressing prior backlog of complaints and will continue annual proactive code
enforcement activities.

Ongoing
Program A.2 Housing Rehabilitation Loan
Programs: To strengthen the City’s code
enforcement efforts and improve
neighborhoods, the City offers home
rehabilitation loan programs. Correcting
code violations is the top priority of the
The City anticipates assisting 10
renter households and 20
ownership households during
the planning period. The City
will advertise the availability of
this program through bilingual
During the last Cycle, the City met and exceeded their
anticipated goals for this program, as shown below:
2022: 17 inquiries were received, and 6 applications
distributed.

Ongoing

Appendix A: Review of Past Performance A-18
Table A-2: 5th Cycle Housing Element Program Accomplishments Goals and Programs Five Year Objective Program Accomplishments /Effectiveness Status for 6th Cycle
loans. The rental rehabilitation program
gives a priority to properties with 11 or
fewer units. Assisted rental units must be
affordable for at least five years. Rental
rehabilitation loans have interest rates of
0% to 6% with payments for up to 30
years. The City will apply annually for
funding to support the Rehabilitation Loan
programs.
brochures at City Hall, in the
City’s bilingual newsletter, and
posting on the City’s website.
2021: 19 inquiries were received, and 4 applications
distributed.
2020: 16 inquiries were received, 4 applications
distributed and 1 received and approved for a very lowincome household. 2019: 28 inquiries were received, 8 applications
distributed and 1 received and approved for a very lowincome household. 2018: 20 inquiries were received, 14 applications
distributed and 1 received and approved for a very lowincome household.

The City has exceeded numerical goals for this program
and will continue this program in the 6th Cycle.

Program A.3 Preservation of Affordable
Housing: Watsonville has a significant
stock of affordable housing units receiving
public subsidies or regulated by the City’s
Affordable Housing Ordinance.

Approximately 1,240 affordable units have
been built (many in recent years).

Currently, no tax credit projects are at risk
of conversion to market-rate housing. Over
the last Housing Element Cycle, the City
was able to assist in saving 236 affordable
units (Evergreen Apartments and Sunny
Meadows) from converting to market rate
units.

The City will help reserve the
affordability of existing tax
credit projects and continue to:
1) monitor status of at-risk
projects; 2) provide technical
assistance as feasible to
property owners and non-profit
developers; and 3) conduct
tenant notification as required
by law for at risk projects.

Continue to collaborate with
developers to maintain
affordability through other
assistance programs as they are
implemented.
2018-2022: City monitors its housing portfolio annually, refers at risk homeowners to counselors and programs
that can provide assistance, and evaluates the purchase of at-risk units on a case-by-case basis. However, there were no at-risk affordable housing units in 2018, 2019, 2020, 2021, or 2022 that necessitated City intervention.

The City will continue this program in the upcoming cycle, monitoring its housing portfolio to provide assistance to at-risk units when identified.

Ongoing

Appendix A: Review of Past Performance A-19
Table A-2: 5th Cycle Housing Element Program Accomplishments Goals and Programs Five Year Objective Program Accomplishments /Effectiveness Status for 6th Cycle
Program A.4 Mobile Home Park
Conversion Ordinance: Watsonville is
home to six mobile home parks containing
a total of 800 homes. Through its existing
Mobile Home Park Conversion Ordinance,
the City has established requirements and
procedures for the control and approval of
the conversion of mobile home parks to
community mobile home parks, mobile
home park condominiums, and non-mobile
home park uses. However, the current
Ordinance is outdated, designed for
condominium conversions, and conflicts
with State law. A comprehensive revision
of the Ordinance is necessary to streamline
the process, provide greater clarity, and
make the process consistent with State
law. Watsonville also has a rent
stabilization ordinance, which is intended
to protect the investments of mobile home
owners in their mobile homes, preserve
the affordability of the low income housing
stock located in the City’s mobile home
parks, while at the same time ensuring the
continued economic viability and
preservation of the mobile home parks by
also ensuring that its rent limits will not
operate to deny park owners a fair rate of
return on their investments. Watsonville
supported the successful enactment of
SB510, which now requires mobile home
The City will help preserve the
continued availability and
affordability of the current
affordable housing stock located
in the city’s mobile home parks
as follows:
• Continue enforcement and
defense of the City’s mobile
home park rent stabilization
ordinance;
• Enact a SB510 implementation
resolution and enforce
SB510’s provisions; Review
and revise the City’s Mobile
Home Park Conversion
Ordinance to streamline the
process and to ensure
consistency with state law;
and
• Enact mobile home exclusive
use zoning.
2019-2022: On January 22, 2019, the City Council
approved a mobile home park overlay district to protect existing mobile home parks. Enacting a SB510
implementation resolution to enforce SB510’s provisions – Currently working on a comprehensive revision of WMC
Chapter 14-42 – Mobile Home Park Conversions to
Resident Ownership or to Any Other Use to implement
and enforce provisions of SB510. “Enact mobile home
exclusive use zoning” was included in 2019 update of
Chapter 14-16.700 – Residential Manufactured Home Park
District.
2018: The City drafted a mobile home park overlay district to protect our existing mobile home parks, which was
recommended for approval by the Planning Commission
to the City Council on November 6, 2018. The ordinance
was scheduled for consideration by the City Council on
January 22, 2019.

Completed –
The City has
implemented
their Mobile
Home Park
overlay
district, thus
completing
this program.

Appendix A: Review of Past Performance A-20
Table A-2: 5th Cycle Housing Element Program Accomplishments Goals and Programs Five Year Objective Program Accomplishments /Effectiveness Status for 6th Cycle
park subdividers to survey mobile home
park residents and demonstrate majority
support in favor of the proposal prior to
subdivision approval. However, several
other California cities have adopted SB510-
Implementing Resolutions in order to
protect their right to enforce the new
provisions of SB510.

Goal 2.0 Expand and protect housing opportunities for all economic segments and special needs groups within the community.

Program B.1 First Time Homebuyer Loans:

The City offers home purchase loans for
eligible first-time and move-up
homebuyers. Homebuyers who live in or
work within the city limits are given
priority for these loans. Lower-income
first-time home buyers who live or work in
Watsonville can borrow the highest
amount available, which is $90,000. Other
buyers can borrow a maximum of $30,000.

The payments on these loans are deferred
up to 45 years. Instead of charging an
interest-rate, these loans are made on a
shared appreciation basis. For instance, if
the City finances 10% of the purchase
price, it will receive 10% of the homes’
sales price or appraised value at the time
the loans is repaid. The City will apply
annually for funding to support the First
Time Homebuyers loans.

The City will continue to offer
First Time Home Buyer Loans.

The City anticipates assisting 60
households during the planning
period. The City will advertise
the availability of this program
through bilingual brochures at
City Hall, in the City’s bilingual
newsletter, and posting on the
City’s website.

In this time period, the City met and exceeded the amount of assisted households anticipated during the 5th Cycle. 2022: Responded to 186 inquiries. Received applications for and approved 3 loans. Conducted 3 outreach and
education meetings on the programs offered by the
Housing Division, which were well attended.
2021: Responded to 216 inquiries. Received applications for and approved 5 loans. Conducted 5 outreach and
education meetings on the programs offered by the
Housing Division, which were well attended.
2020: Responded to 178 inquiries. Received applications for and approved 7 loans. Conducted 7 neighborhood
outreach and education meetings on the programs
offered by the Housing Division, which were attended by approximately 350 people in total.
2019: Responded to 205 inquiries. Received applications for and approved 4 loans. Conducted 9 neighborhood
outreach and education meetings on the programs
Ongoing

Appendix A: Review of Past Performance A-21
Table A-2: 5th Cycle Housing Element Program Accomplishments Goals and Programs Five Year Objective Program Accomplishments /Effectiveness Status for 6th Cycle
offered by the Housing Division, which were attended by approximately 550 people in total.
2018: Responded to 28 inquiries. Received applications
for and approved 3 loans. Conducted 3 neighborhood
outreach and education meetings on the programs
offered by the Housing Division, which were attended by approximately 300 people in total.

The City has been effective in proactively assisting
households in the last cycle, and will continue to actively assist households through this program in the 6th Cycle.

Program B.2 Down Payment Assistance
Loans: Some homebuyers are unable to
achieve homeownership because they do
not have sufficient funds for a down
payment and/or closing costs. Recognizing
this need, the City offers down payment
assistance loans to homebuyers who
currently live or work within the City limits
are given a priority for these loans. At
present, the maximum loan amount is
$60,000. Other buyers can borrow a
maximum of $30,000. The payments on
these loans are deferred up to 45 years.

Instead of charging an interest rate, these
loans are made on a shared appreciation
basis.

The City will continue to offer
Down Payment Assistance Loans
and anticipates assisting 25
households during the planning
period. The City will advertise
the availability of this program
through bilingual brochures at
City Hall, in the City’s bilingual
newsletter and posting on the
City’s website.

In this time period, the City met and exceeded the amount of assisted households in Down Payment Assistance
anticipated during the 5th Cycle.
2022: Responded to approximately 186 inquiries.

Conducted 3 outreach and education meetings on the
programs offered by the Housing Division, which were
well attended. Since 2018, The City of Watsonville has
assisted with 6 Down Payment Assistance Loans.
2021: Responded to approximately 216 inquiries.

Conducted 5 outreach and education meetings on the
programs offered by the Housing Division, which were
well attended.
2020: Responded to approximately 178 inquiries.

Conducted 7 neighborhood outreach and education
meetings on the programs offered by the Housing
Division, which were attended by approximately 350
people in total.
2019: Responded to approximately 167 inquiries.

Conducted 9 neighborhood outreach and education
Ongoing

Appendix A: Review of Past Performance A-22
Table A-2: 5th Cycle Housing Element Program Accomplishments Goals and Programs Five Year Objective Program Accomplishments /Effectiveness Status for 6th Cycle
meetings on the programs offered by the Housing
Division, which were attended by approximately 550
people in total.
2018: Responded to approximately 62 inquiries.

Conducted 3 neighborhood outreach and education
meetings on the programs offered by the Housing
Division, which were attended by approximately 300
people in total.

The City has been effective in proactively assisting
households in the last cycle and will continue to actively assist households through this program in the 6th Cycle.

Program B.3 Section 8 Rental Assistance:

The County of Santa Cruz Housing
Authority administers the Section 8 (now
recognized as the Housing Choice Voucher,
or HCV) Rental Assistance program in
Watsonville. The Section 8 Rental Program
extends rental subsidies to very lowincome households, including families, seniors, the disabled, and farmworkers.

The Section 8 Program offers a voucher
that pays the difference between the
current fair market rent (FMR) and what a
tenant can afford to pay (i.e. 30% of
household income). The voucher allows a
tenant to choose housing that costs above
the payment standard, provided that the
tenant pays the extra cost. Currently, 1,600
households in Watsonville receive
vouchers. Section 8 may now be used to
The City will continue to support
the Housing Authority’s efforts
to provide rental vouchers to
needy residents. The City will
continue to encourage the
Housing Authority or other
agencies to list available rentals.
2018-2022: Continued to refer prospective clients as well as landlords to Housing Authority for participation in the program. Continued an Agreement to provide financial
support for Program (Landlord Incentive Program)
administered by Housing Authority to encourage landlords through risk mitigation to rent to housing choice voucher holders.

The City has been effective in providing support to the County of Santa Cruz Housing Authority and will continue to do so in its efforts to provide rental vouchers to
residents in need through the next cycle.

Ongoing

Appendix A: Review of Past Performance A-23
Table A-2: 5th Cycle Housing Element Program Accomplishments Goals and Programs Five Year Objective Program Accomplishments /Effectiveness Status for 6th Cycle
assist certificate holders to purchase a
home as well.

Program B.4 Relocation Assistance
Ordinance: The Relocation Assistance
Ordinance requires landlords to pay
relocation benefits to tenants who are
displaced from dangerous buildings.

Specifically, landlords must provide three
months of rent plus moving allowance and
storage costs for tenants who are
displaced from a dangerous building as
determined by the Building Official. In
conjunction with the Relocation Assistance
Program, displaced families can also
receive motel vouchers for up to a week
and a case worker to help them find and
secure replacement housing. The City will
advance relocation benefits under the
Ordinance if the landlord does not pay in a
timely manner.

The City will continue to
implement the Relocation
Assistance Ordinance to assist
tenants who are displaced from
dangerous buildings.

In this time period, the City provided temporary shelter referrals to over 50 families living in unsafe and
substandard housing in the City.
2022: The Relocation Assistance Ordinance provided
referrals for temporary shelter for 27 families who were living in unsafe and substandard housing units in the City. 2021: The Relocation Assistance Ordinance provided
referrals for temporary shelter for 13 families who were living in unsafe and substandard housing units in the City. 2020: The Relocation Assistance Ordinance provided
referrals for temporary shelter for 17 families who were living in unsafe and substandard housing units in the City. 2019: The Relocation Assistance Ordinance provided
referrals for temporary shelter for 7 families who were living in unsafe and substandard housing units in the City. 2018: The Relocation Assistance Ordinance provided
temporary shelter for 2 families who were living in unsafe and substandard housing units in the City.

The City has been effective in implementing the
Relocation Ordinance to assist displaced tenants living in the City and will continue to do so in the upcoming 6th Cycle.

Ongoing
Program B.5 Child Care Assistance:

Watsonville is primarily a community of
families. Between 2000 and 2010, there
was a noticeable increase in married
The City will continue to support
the provision of childcare
assistance and facilitate the
2018-2022: The City continues to support the provision of small and large in-home childcare facilities.

Ongoing

Appendix A: Review of Past Performance A-24
Table A-2: 5th Cycle Housing Element Program Accomplishments Goals and Programs Five Year Objective Program Accomplishments /Effectiveness Status for 6th Cycle
couples with children in the City. To
address this trend, the City permits child
(day) care homes as an accessory use in all
residential zones. As of 2002, State
licensing board records report that 30
childcare centers, 100 large family day care
homes, and 8 infant care facilities are
licensed in Watsonville. Additional smaller
day care homes are available options for
childcare. The City also supports projects
offering child care. The City encouraged
development of the Transit Center Project,
with 40 units of affordable rental housing
and a child care center serving 36 children.
development of new housing
with a childcare component.

In the 6th Cycle, the City will continue to provide support in the provision of childcare assistance and facilitation of new housing developments with a childcare component.

Program B.6 Application for Grants and
Loans: In 2000, the voters of California
approved Proposition 46, authorizing the
issuance of bonds to support well over $2
billion in new and continued housing
programs. In 2006, voters approved
Proposition 1C for 2.8 billion in additional
funds for affordable housing and
emergency shelters. This will fund
affordable housing (both ownership and
rental), neighborhood revitalization
efforts, special needs housing and
supportive services, downtown
revitalization, and a variety of other
programs that help meet the housing
needs of communities across the State.

The City had considerable success in
The City will investigate funds
available under Proposition 46,
1C and other affordable housing
programs, and pursue those
that help meet the housing
needs of Watsonville residents.
2023: The State announced the County of Santa Cruz will receive a Permanent Local Housing Allocation estimated
at $3,395,713 over five years for homeless services and permanent housing projects within cities, including
Watsonville.
2022: The City applied for its Permanent Local Housing
Allocation and waiting to hear from HCD, and we continue to monitor HCD and HUD for funding opportunities.
2018-2021: Continued to monitor HCD and HUD for
funding opportunities.

Ongoing

Appendix A: Review of Past Performance A-25
Table A-2: 5th Cycle Housing Element Program Accomplishments Goals and Programs Five Year Objective Program Accomplishments /Effectiveness Status for 6th Cycle
applying for available grants and loan
programs and will continue efforts to
investigate potential funding sources.

Goal 3.0 Provide housing opportunity for Watsonville’s share of the regional housing need for all income groups.

Program C.1 Adequate Sites Program: A
key component of the Housing Element is
the identification of adequate sites to
accommodate the City’s share of regional
housing needs as determined by AMBAG.

The City has identified a variety of vacant
and underutilized sites where new housing
may be developed, including infill sites,
mixed-use opportunities in underutilized
commercial areas, and single-family
neighborhoods where second units may be
added. During the 1990s, the City pursued
multiple large annexations to provide
opportunities for new single-family
housing, but has been constrained by
LAFCO, County growth control policies, and
an Urban Limit Line since 2002. The Urban
Limit Line (ULL) was renewed and
extended in 2022 by Measure Q. The ULL
restricts the City’s ability to approve
projects with new single-family ownership
housing.

The City will continue to
inventory sites to meet its
remaining share of regional
housing needs as determined by
AMBAG.
2018-2022: The City maintains a list of vacant and
underutilized parcels and updates it annually.

The City has been effective in consistently maintaining an updated list of vacant and underutilized parcels in the City and will continue to do so to meet its share of regional housing needs in the 6th Cycle.

Ongoing
Program C.5 Affordable Housing
Ordinance: Under the Affordable Housing
Ordinance, developers are required to set
aside a certain portion of units (up to 20%)
in projects of seven or more units for
The City will continue to
implement the Affordable
Housing Ordinance to ensure
that the private sector assists in
During this time period, the City has facilitated the
development over 200 housing affordable housing units
across Watsonville, actively addressing the City’s share of housing needs in the region.

Ongoing

Appendix A: Review of Past Performance A-26
Table A-2: 5th Cycle Housing Element Program Accomplishments Goals and Programs Five Year Objective Program Accomplishments /Effectiveness Status for 6th Cycle
targeted income level groups. Due to the
cost of single-family homes,
homeownership projects are required to
set aside units for median, moderate, and
above moderate-income households. The
term of affordability is a minimum of 40
years. Developers who exceed the
minimum number of affordable units may
be eligible for density bonuses under
Chapter 14- 47). The Density bonus
provisions have been amended to meet
new State requirements.
meeting the housing needs of
Watsonville.
2022: Building permits have been issued and construction is underway for three housing projects totaling 269 units (Miles Lane Project for 72 affordable units, 1482 Freedom Boulevard project for 53 affordable units, and Hillcrest Estates project for 144 units with 29 affordable units. The City also supported their efforts and collaborated with both non-profit developers to secure funding from TCAC, Joe Serna Farmworker Program and NPLH Program.
2021: Approved an application for an affordable housing project with 72 units (Miles Lane Project) and an
application for a housing project with 50 units, 20 percent of which (10 units) were affordable units (558 Main Street Project). Received and approved an application for an
affordable housing project with 53 units (1482 Freedom
Boulevard Project). 150-unit subdivision (Hillcrest Estates Project) was modified, reducing the total units to 144 with 29 affordable units). The City also supported their efforts and collaborated with both non-profit developers to
secure funding from TCAC, Joe Serna Farmworker Program
and NPLH Program.
2020: Received application for a 72 affordable unit
subdivision. This project is currently under construction. 2019: Received an application for a housing project with 50 units, 20 percent of which (10 units) were affordable units (558 Main Street Project).
2018: Approved entitlements for a 150-unit subdivision
which will provide 30 affordable units. This project is currently under construction, with changes in the
entitlements in 2021. Conducted a nexus/linkage study
and moderately raised residential affordable housing in

Appendix A: Review of Past Performance A-27
Table A-2: 5th Cycle Housing Element Program Accomplishments Goals and Programs Five Year Objective Program Accomplishments /Effectiveness Status for 6th Cycle
lieu fees and increased commercial linkage fee from
$.40/sf to $1.50/sf for new construction.

The City has been effective in implementing the
Affordable Housing Ordinance, facilitating the
development of affordable housing through partnerships
with private developers. The City will continue to do so in the 6th cycle in order to ensure Watsonville’s share of regional housing needs are being met.

Program C.6 Partnership with Non-Profit
Housing Agencies: Non-profit housing
developers play an important role in
providing affordable housing in
Watsonville. The City has granted direct
financial assistance, land write-downs,
regulatory incentives, and other forms of
assistance to a number of developers to
provide both ownership and rental housing
to lower- and moderate-income
households. In recent years, the City has
assisted South County Housing, Santa Cruz
Community Counseling Center, MidPeninsula Housing Coalition, Habitat for Humanity, CHISPA, and others in the
provision of affordable housing.

As available, the City will
continue to grant financial
assistance, land write-downs,
regulatory incentives, and/or
other forms of assistance to
non-profit developers of
affordable and special needs
housing.
2018-2022: The City worked with a variety of non-profit housing agencies, including the Homeless Action
Partnership, Mid Peninsula Housing, Eden Housing, as well as the Housing Authority of Santa Cruz County and the
Santa Cruz County housing department.

The City has been effective in successfully collaborating with and assisting non-profit housing agencies in the
development of housing in Watsonville. The City will
continue to be a partner with these agencies in the 6th Cycle.

Ongoing
Program C.7 Mixed Use Development:

Within Watsonville, several areas in the
community are suitable for a mix of
residential and commercial uses. Adding
residential development on some of the
City’s underutilized commercial areas will
The City will continue to
promote residential uses in
commercial areas. As feasible,
the City will provide financial,
technical, and/or other
assistance to facilitate mixedIn this time period, the City has promoted residential uses in commercial areas in the form of mixed use
development.
2022: The City promoted mixed use development along
commercial corridors. The City initiated a Downtown
Ongoing

Appendix A: Review of Past Performance A-28
Table A-2: 5th Cycle Housing Element Program Accomplishments Goals and Programs Five Year Objective Program Accomplishments /Effectiveness Status for 6th Cycle
create activity along the street, provide a
variety of housing types near work and
shopping, and enhance public safety.

Inclusion of residential uses in new mixeduse development will be encouraged through the use of incentives such as
reduced parking requirements and shared
parking (between commercial and
residential uses). Single room occupancy
(SROs) hotels may be encouraged in the CT
and CN zoning districts and in high-density
residential areas; currently, they are
permitted in the CCA and CC zones.
use housing in other areas. The
City will review the feasibility of
permitting SROs in the CT and
CN zones. Whenever feasible,
the City will encourage the
highest allowable residential
densities in commercial zones
through the Density Bonus and
Planned Development District.

Watsonville Specific Plan (DWSP), which could allow for approximately 4,000 new housing units in the Specific Plan area. The intent is for the majority of these units to be mixed use projects. The DWSP was adopted in October
2023.
2021: The City promoted mixed use development along
commercial corridors. The City worked with the developer of an approved mixed use development in the Downtown
corridor which includes 50 rental units, ten of which will be affordable to Watsonville residents pursuant to the City Affordable Housing Ordinance Chapter 14-46. Project
received entitlements in 2021. Building permits are
almost ready to issue. Affordable Housing Agreement
approved by City Council on November 14, 2023.
2018-2020: The City promoted mixed use development
along commercial corridors; however, developers
expressed concern that mixed use developments are
difficult to make successful unless located in high density commercial corridors. City did extensive research and
outreach as part of DWSP including interviews with
developers, property owners, and realtors, community
workshops, stakeholder interviews, to understand
developer concerns and foster a development-friendly
plan. The DWSP was adopted in October 2023 and
includes higher density, objective development standards, adaptive reuse options, and other components to help
encourage and streamline development. Currently the
2050 General Plan update process is under way and the
City is conducting the same type of outreach activities related to commercial corridors in other areas of the city.

Appendix A: Review of Past Performance A-29
Table A-2: 5th Cycle Housing Element Program Accomplishments Goals and Programs Five Year Objective Program Accomplishments /Effectiveness Status for 6th Cycle
The City has effectively promoted the development of
residential uses in commercial areas through mixed use
development and the adoption of the DWSP. The City will continue to promote these development types and the
DWSP in the 6th Cycle.

Program C.8 Transitional Housing and
Emergency Shelters: The City is actively
involved in addressing homelessness. As an
active participant in the Santa Cruz County
Continuum of Care Coordinating Group,
the City passed a resolution (No. 387-91)
supporting a coordinated Countywide
effort to assist the homeless and prepare a
five-year strategic plan. Locally, the City
conditionally permits transitional housing
in the RM-2, RM-3, CC, and CN districts.

The City supports the Pajaro Valley Shelter
Services and Salvation Army Loma Prieta
Transitional Housing Complex. In order to
facilitate this housing, the City has allowed
a significant reduction in parking
requirements and no minimum lot area
requirement (unlike other residential
uses). Additionally, the City is dedicated to
removing constraints to transitional
housing by allowing for such facilities in
the High Density Residential Zone (RM-3)
through a text amendment to the Zoning
Ordinance. This endeavor will increase
access to transitional and supportive
housing within the City.

The City will continue to support
the development of new and
expansion of existing
transitional housing facilities.

The City will continue to
participate and provide financial
assistance to the Continuum of
Care Coordinating Group in
developing and implementing
the five-year plan. In 2003, the
City approved changes to the
Zoning Ordinance to allow
emergency shelters and
transitional housing in the PF
Zoning district via an
Administrative Use Permit. The
City will pursue additional
amendments to the zoning
ordinance within two years of
adoption by the City Council to
establish transitional housing
and emergency housing as
principally permitted uses in
Public Facilities and RM-3 zoning
districts without requiring any
type of conditional use permit.
2018-2022: The City Council adopted an Emergency
Shelter Ordinance on August 28, 2018. The Ordinance,
WMC Chapter 14-43 was certified by the state in Fall,
2018 and determined to be compliant. The City continues support the development of new and existing transitional housing. The City also continues to participate in the
Continuum of Care Coordinating Group.

The City has effectively supported the development of
new and expansion of existing transitional housing
facilities in the City. With the adoption of the Emergency Shelter Ordinance in 2018. The City will continue to
support the Ordinance and assist the Continuum of Care
group in the next cycle.

Completed –
The City
gained
certification
by the State
for their
Emergency
Shelter
Ordinance,
thus
completing
this program.

Appendix A: Review of Past Performance A-30
Table A-2: 5th Cycle Housing Element Program Accomplishments Goals and Programs Five Year Objective Program Accomplishments /Effectiveness Status for 6th Cycle
Additionally, the City will initiate
a zoning Ordinance amendment,
pursuant to SB2, to allow
transitional and supportive
housing as principally permitted
residential uses only subject to
those restrictions that apply to
other residential uses of the
same type in the same zone
without undue special
regulatory requirements.

Goal 4.0 Where appropriate, mitigate unnecessary governmental constraints to the maintenance, improvement, and development of housing Program D.1 Density Bonus Ordinance: In
2006, the City Council adopted a new
Chapter 14-47 of the Zoning Code
regarding Density Bonuses, as mandated
by State law. Under the Density Bonus
Ordinance, developers who reserve a
certain percentage (above the minimum
required by the Affordable Housing
Ordinance) of units as affordable to
qualified very-low, low-, and moderateincome households may be eligible for up to a 35% density bonus, regulatory
incentives, and reduced parking
requirements. Regulatory concessions
include modifications of development
standards or zoning requirements that
result in identifiable cost reductions (e.g.,
setbacks, lot size). Upon request, parking
The City will continue to offer
density bonuses, incentives,
and/or regulatory concessions
to facilitate the development of
additional affordable housing,
particularly in areas with
underutilized sites that benefit
from deviations in development
standards. The City will further
publicize the density bonus
ordinance via flyers and the City
website and make reference to
it as development inquiries are
received by the community
Development Department.
2021-2022: Three applications for density bonus have
been approved by the City (one for the Miles Lane
Affordable Housing Project for a total of 72 new
affordable units, one for the 558 Main Street Housing
Project for a total of 50 units, 10 of which are affordable, and one for 1482 Freedom Boulevard Housing Project for
53 affordable units).
2018-2020: No applications for density bonuses were
processed in 2018, 2019, or 2020.

The City has effectively promoted density bonus
incentives through several application approvals to
support the development of additional affordable housing and will continue to do so in the next cycle.

Ongoing

Appendix A: Review of Past Performance A-31
Table A-2: 5th Cycle Housing Element Program Accomplishments Goals and Programs Five Year Objective Program Accomplishments /Effectiveness Status for 6th Cycle
requirements may be adjusted to the State
minimum outlined in AB 1866.

Program D.2 Planned Development
District (PD): A PD designation allows the
regulations of the underlying zoning
district to be superseded, modified, or
amended. In order to create a superior
housing product, the City frequently uses
the PD designation to permit higher
densities through smaller lots, narrower
streets, and other deviations from
conventional zoning regulations. Using the
PD designation, the City has facilitated
greater housing affordability by approving
small-lot single-family homes and rental
projects.

The City will continue to use the
PD designation to provide
flexibility in developments and
facilitate creative housing
options as well as explore
amendments to the Zoning and
Subdivision Ordinances to
encourage lot consolidation in
districts with substandard lots,
fee and development waivers
for projects meeting
redevelopment criteria and
other incentives for developers
and property owners in such
districts.
2019-2022: The City promotes the utilization of the PD
overlay zoning designation to facilitate more creative
development projects.
2018: The City promotes the utilization of the PD overlay zoning designation to facilitate more creative
development projects. In 2018, 1 project consisting of 150 housing units was approved.

Ongoing
Program D.3 Design Review Process: In
April 2001, the City adopted Livable
Community Residential Design Guidelines.

These Guidelines supplement quantitative
standards in the Zoning Code with
neighborhood and architectural design
principles. These Guidelines help in part to
clarify the City and community’s
expectations in the quality and style of
projects and ensure that developments are
also consistent with General Plan policies.

All projects with two or more units are
required to comply with the City’s Design
The City will continue to use the
Residential Design Guidelines in
concert with the City’s General
Plan, Zoning and Subdivision
Ordinance and other area plans.

The City will continue to ensure
that projects comply with the
City’s design review process and
the Design Guidelines.
2021-2022: The City processed 3 design review permits in 2021 for multi-family development projects.
2020: The City processed 2 design review permits in 2020 for multi-family development projects.
2019: The City processed 3 design review permits in 2019 for multi-family development projects.
2018: The City processed 2 design review permits in 2018 for multi-family development projects.

The City has effectively used the Residential Design
Guidelines to ensure project compliance with the City’s design review process and will continue to do so in 6
th
Cycle.

Ongoing

Appendix A: Review of Past Performance A-32
Table A-2: 5th Cycle Housing Element Program Accomplishments Goals and Programs Five Year Objective Program Accomplishments /Effectiveness Status for 6th Cycle
Review process and the Residential Design
Guidelines.

Program D.4 Accessory Dwelling Unit
Development: Accessory Dwelling Units
provide an important housing opportunity
for seniors, college students, and other
special needs groups. Given the dwindling
supply of developable land in Watsonville,
integrating accessory dwelling units in
existing residential neighborhoods present
an opportunity for the City to
accommodate needed rental housing. In
2003, the City Council adopted Chapter 14-
23 of the Zoning Code, regulating
Accessory Dwelling Units, in compliance
with new State law, which required all
jurisdictions to permit such uses by right in
residential zones. Since adoption of the
Ordinance, 115 accessory units have been
constructed in the City.

The City will continue to use the
Accessory Dwelling Unit
Ordinance to provide in-fill
residential housing throughout
the City. The City will establish
additional approaches to
encourage second unit
development including revision
of the existing ordinance to
create greater incentives such
as smaller lot size requirements,
advertising second-unit
development opportunities
where possible, and establishing
pre-approved design prototypes
to encourage and stimulate the
development of second units.

In this period, the City used the Accessory Dwelling Unit Ordinance to promote the development of in-fill
residential housing across the City, as seen in the
consistent increase in permit applications and permits
issued through the years.
2022: The City received 47 permit applications for
accessory dwelling units and issued 30 permits by the end of the reporting period. In addition, and in light of new state regulations regarding accessory dwelling units, the City revised its ADU ordinance to comply with state law. 2021: The City received 38 permit applications for
accessory dwelling units and issued 30 permits by the end of the reporting period and expect to issue the remaining permits in the next reporting period.
2020: The City received and issued 36 permit applications for accessory dwelling units. In light of new state
regulations regarding accessory dwelling units, the City revised its ADU ordinance to comply with state law.
2019: The City received and issued 12 permit applications for accessory dwelling units.
2018: The City received and issued 4 permit applications for accessory dwelling units.

The City has effectively used the Accessory Dwelling Units to promote more in-fill residential housing in the City, an will continue to do so in the upcoming cycle.

Ongoing

Appendix A: Review of Past Performance A-33
Table A-2: 5th Cycle Housing Element Program Accomplishments Goals and Programs Five Year Objective Program Accomplishments /Effectiveness Status for 6th Cycle
Program D.7 Zoning Ordinance Update:

The City will amend Title 14 (Zoning) of the
Watsonville Municipal Code to address
changes in housing priorities. This
comprehensive update will include greater
density on residential lots, mixed use
provisions along transit corridors and
throughout the downtown, and greater
flexibility in order to address changes in
state legislation.

The City will complete a
comprehensive Zoning
ordinance and map update
pending resolution of General
Plan litigation. This update will
also include consideration of the
removal of constraints to
developing affordable housing
at the RM-3 density for
apartment units 16 or greater to
require a simple administrative
review and design review
permits.
2018-2022: The City continually monitors the relevance of the Zoning code and makes changes as necessary.

Additionally, the Downtown Watsonville Specific Plan,
which was adopted in October 2023, replaced the zoning
in the downtown area and allows for greater density for residential and mixed-use development along transit
corridors and throughout the downtown. A
comprehensive zoning code update will follow adoption of the 2050 General Plan Update, currently slated for 2025.

The City has proven effective in promoting affordable
housing in the City through the adoption of the DWSP,
which will allow for greater residential and mixed-use
development densities. The city will continue to do so in the 6th cycle through a comprehensive zoning code
update, following the adoption of the 2050 General Plan.

Ongoing
Goal 5.0 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.

Program E.1 Fair Housing Program: The
City supports fair housing and refers all
alleged cases of discrimination to the State
Office of Fair Employment and Housing
and the California Rural Legal Assistance
(CRLA). The City also prepares an Analysis
of Impediments to Fair Housing. The City
supports equal opportunity lending
programs and nondiscriminatory practices
in selection of residents for participation in
the City’s housing assistance programs.

The City also sponsors an Annual Housing
Fair in which CRLA hosts one of the
The City will continue to support
the State Office of Fair
Employment and Housing, CRLA,
and equal opportunity lending
programs. The City will support
efforts by the Housing Authority
or other agencies to list units
accessible to disabled persons.
2018-2022: City staff participated on various housing and service provider boards and were actively involved in
collaborations with local jurisdictions and non-profit
service providers to improve awareness and expansion of available resources as indicated in other sections. Fair housing information was displayed in City Hall and on all housing applications and contracts. Handouts were
maintained and provided in English and Spanish. Began
discussion on potential collaboration with Housing
Authority on a regional assessment of fair housing.

The City has been effective in its participation with various housing agencies in the effort to provide equal
Ongoing

Appendix A: Review of Past Performance A-34
Table A-2: 5th Cycle Housing Element Program Accomplishments Goals and Programs Five Year Objective Program Accomplishments /Effectiveness Status for 6th Cycle
workshops on Landlord and Tenant Rights.

The City also distributes the Consumer
Affairs “Tenant Rights and Responsibilities”
booklet, and Fannie-Mae’s “Your Credit
Rights” booklet at the Annual Housing Fair
and the City’s Permit Center.
opportunity lending programs and accessibility to housing units for special need populations. The City will continue to support these efforts in the 6th cycle.

Program E.2 Housing for Disabled
Persons: Consistent with Senate Bill 520
enacted January 1, 2002, the City analyzed
potential constraints to the development,
maintenance, and improvement of housing
intended for persons with disabilities. The
City will outreach to nonprofit housing
partners and the City website as the City
moves through the process of increasing
housing opportunities for this needs group.

The analysis included an evaluation of
existing land use controls, permit and
processing procedures, and building codes.

The City’s Zoning Ordinance was amended
to eliminate the definition of a family as
well as the limitations on the number of
occupants in a house. Moreover, public
meetings on the Housing Element revealed
a need for a centralized database in the
County to assist disabled persons in finding
accessible housing in Watsonville. These
actions would improve housing
opportunities for persons with disabilities
in Watsonville.

The City will support the
County’s (or other agency)
efforts to create a centralized
database of affordable rental
housing accessible to disabled
persons. Further the City will
modify Chapter 14-40
(Exceptions and Modifications)
of the Watsonville Municipal
Code as necessary to allow for
modifications to the Zoning
regulations for people with
disabilities within 18 months of
certification by the State.
2018-2022: The City continued to work with the County of Santa Cruz to promote the provision of accessible housing units.

Ongoing

Appendix A: Review of Past Performance A-35
Table A-2: 5th Cycle Housing Element Program Accomplishments Goals and Programs Five Year Objective Program Accomplishments /Effectiveness Status for 6th Cycle
Program E.3 Special Needs Housing: The
City will make other changes to better
facilitate the development of housing for
persons with special needs. This includes
amending the Zoning Ordinance to include
a definition of residential care facilities,
emergency shelters, transitional housing
facilities, and other types of special needs
housing. Moreover, the regulations for
permitting residential care facilities serving
six or fewer persons, emergency shelters,
transitional housing, farm worker housing,
and other special needs housing are also
unclear. Finally, certain zoning and
development regulations can impede the
construction of residential care facilities,
emergency shelters, transitional housing,
farm worker housing, and other types of
special needs housing. Therefore, the
Zoning Ordinance and other local
regulations should be analyzed to
determine whether such constraints exist.

The City has committed to analyze
potential constraints and, if found, develop
programs to mitigate or remove such
constraints.

Consistent with Senate Bill 520
enacted January 1, 2002. The
City analyzed potential
constraints to the development,
maintenance, and improvement
of housing intended for persons
with disabilities. The analysis
included an evaluation of
existing land use controls,
permit and processing
procedures, and building codes.

During this process, the City
found that several constraints
will be mitigated over the
planning period of the 2015-
2023 Housing Element Cycle. In
2004, the City amended the
Public Facilities District to allow
transitional housing as an
Administrative Use.
2018-2022: City staff participated on various housing and service provider boards and were actively involved in
collaborations with local jurisdictions and non-profit
service providers to improve awareness and expansion of available resources as indicated in other sections. Fair housing information was displayed in City Hall and on all housing applications and contracts. Handouts were
maintained and provided in English and Spanish. Began
discussion on potential collaboration with Housing
Authority on a regional assessment of fair housing. The City continued to work with the County of Santa Cruz to promote the provision of accessible housing units.
2018: The City amended the Zoning Ordinance to include a definition of residential care facilities, emergency shelters, transitional housing facilities, and other types of special needs housing. The City analyzed and developed programs to mitigate or remove such constraints.

The City has proven to be effective in removing
constraints to housing for special needs populations. The City will continue to mitigate and remove identified
housing constraints for special need persons in the
upcoming cycle.

Ongoing

Appendix B Element Update HOUSING NEEDS ASSESSMENT

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Appendix B: Housing Needs Assessment B-1
Housing Needs Assessment
This section provides an overview of the City’s housing and population conditions. The community profile analyzes characteristics of the City’s population, households, economy, and housing stock, and presents each of these components in a regional context to create a comprehensive evaluation of Watsonville’s housing needs. The City of Watsonville strives to achieve a balanced housing stock that meets the varied needs of all income segments of the community. The nature of the existing housing stock and the housing market are comprehensively evaluated to understand the City’s housing needs. This assessment serves as the basis for identifying the appropriate goals, policies, and programs for the City to implement during the 2023-2031 Housing Element Cycle.

The Housing Needs Assessment uses the most current data available from the Association of Monterey Bay Area Governments (AMBAG), U.S. Census, American Community Survey (ACS), the California Department of Finance (DOF), the California Employment Development Department (EDD), and other real estate market data resources.

A. Population Characteristics
Understanding the characteristics of a population is critical to plan for the needs of a community.

Population growth, age composition, race and ethnicity, and employment trends influence the type and extent of housing needs and the ability of the local population to afford housing costs. The following section describes and analyzes the various population characteristics and trends that affect housing need.

1. Population Growth
Table B-1 below displays the forecasted population growth for Watsonville in comparison to Santa Cruz County and neighboring jurisdictions. According to the U.S. Census and AMBAG Projections, the Watsonville population is forecast to increase 5.3 percent through 2040. From 2015 to 2021, the City experienced minimal growth in population by 0.8 percent. This is a similar trend for the County of Santa Cruz where the population increased 1.1 percent from 2015 to 2021 but is forecasted to grow 7.7 percent by 2040.

Table B-1: Population Growth (2015-2040)
Jurisdiction
Population Percent Change
2015
Actual
2021
Actual
2025
Projected
2030
Projected
2035
Projected
2040
Projected
2015-
2021
2021-
2040
Salinas 155,366 163,004 166,226 170,459 173,393 175,358 4.9% 7.6% Hollister 36,529 41,077 42,604 43,327 44,421 45,345 12.5% 10.4% Watsonville 52,543 52,966 52,918 54,270 55,138 55,786 0.8% 5.3% City of Santa
Cruz 62,752 62,714 68,845 72,218 75,257 78,828 -0.1% 25.7% Santa Cruz
County 269,278 272,138 278,641 284,146 288,523 293,156 1.1% 7.7% Source: 2022 Regional Growth Forecast AMBAG, Table 1-2; ACS Census Data Table S0101, 2015 and 2021.

Appendix B: Housing Needs Assessment B-2

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

Figure B-1 below displays ACS data for age distribution in Watsonville. The population of 5- to 19-yearolds makes up the largest age group at 25.8 percent, followed by 65-years and over (11.3 percent). The adult population 50 years and older continued to experience growth since 2010. This indicates an aging population in the City of Watsonville. The senior population aged 50 to 64 years experienced the largest increase of all age groups between 2010 and 2021 – indicating a potential increased need for seniorrelated housing and services.

Figure B-1: Age Distribution in Watsonville
Source: American Community Survey, Table S0101, 5-Year Estimates, 2010, 2015, and 2021 Table B-2 below shows the age distribution of Watsonville residents in comparison to the surrounding communities in 2021. Watsonville’s age distribution aligns closely with nearby jurisdictions. Children aged 5 to 19 make up 25.8 percent of the total population in both Salinas and Watsonville. Compared to Santa Cruz County as a whole, Watsonville’s 65 years and older population makes up less than the City of Santa Cruz, and Santa Cruz County. However, Watsonville generally has a younger population (aged 34 and under) compared to Santa Cruz County.

Under 5 5 to 19 20 to 34 35 to 49 50 to 64 65 years +
2010 8.9% 26.4% 22.4% 20.6% 12.2% 9.5%
2015 9.7% 24.2% 23.0% 19.7% 14.2% 9.2%
2021 7.5% 25.8% 21.2% 19.0% 15.2% 11.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Appendix B: Housing Needs Assessment B-3
Table B-2: Age Characteristics/Age Distribution
Jurisdiction Under 5 5 to 19 20 to 34 35 to 49 50 to 64 65 years + Salinas 8.1% 25.8% 21.9% 20.1% 14.6% 9.4%
Hollister 7.1% 24.6% 21.0% 20.8% 16.6% 9.8%
Watsonville 7.5% 25.8% 21.2% 19.0% 15.2% 11.3%
City of Santa Cruz 3.1% 21.2% 32.5% 15.9% 15.0% 12.4%
Santa Cruz County 4.9% 19.6% 22.2% 18.0% 19.8% 17.1%
Source: American Community Survey, Table S0101, 5-Year Estimates, 2021.

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

It is important to note that while race and ethnicity are used to identify different sections of a community’s population, they are not the same and are not mutually exclusive. The data identified below shows the racial and ethnic composition of Watsonville and nearby jurisdictions using ACS, which allows Census respondents to identify one’s race and ethnicity. Therefore, overlap may occur.

As shown in Figure B-2, persons who identified as Hispanic or Latino made up the largest ethnic group in Watsonville (84.3 percent); larger than that of the County (34.0 percent). Those who identified as White, not Hispanic or Latino, made up the largest racial group at a much smaller rate of 11.9 percent. Persons who identify as Black or African American, American Indian and Alaska Native, Native Hawaiian/Other Pacific Islander, and some other race alone collectively make up a total of 1 percent of the City’s population.

Appendix B: Housing Needs Assessment B-4
Figure B-2: Racial Ethnic Composition
Source: American Community Survey, Table B03002, 5-Year Estimates, 2021 The Hispanic or Latino population makes up the largest racial/ethnic composition in the City of Watsonville (84.3 percent) as shown in Table B-3 below. Those who identify as White make up the second largest racial/ethnic composition (11.9 percent). Compared to surrounding jurisdictions, Watsonville has the highest overall percentage of Hispanic or Latino and lowest overall percentage of White racial/ethnic composition.

Table B-3: Racial/Ethnic Composition
Jurisdiction White* Black*
American
Indian/
Alaska
Native*
Asian*
Native
Hawaiian /
Other Pacific
Islander*
Some
Other
Race*
Two or
More
Races*
Hispanic
or Latino
Salinas 12.2% 1.1% 0.1% 5.4% 0.0% 0.1% 1.3% 79.8%
Hollister 22.8% 0.7% 0.3% 2.3% 0.2% 0.1% 1.9% 71.6%
Watsonville 11.9% 0.5% 0.0% 2.5% 0.0% 0.3% 0.5% 84.3%
City of Santa
Cruz 60.8% 1.8% 0.1% 10.6% 0.1% 0.5% 5.1% 21.1%
Santa Cruz
County 56.1% 0.8% 0.1% 4.7% 0.1% 0.4% 3.6% 34.0%
Source: American Community Survey, Table DP05, 2021
*: Not including Hispanic or Latino
White
alone
Black or
African
American
alone
American
Indian and
Alaska
Native
alone
Asian
alone
Native
Hawaiian
and Other
Pacific
Islander
alone
Some
other race
alone
Two or
more
races
Hispanic
or Latino
Watsonville 11.9% 0.5% 0.0% 2.5% 0.0% 0.3% 0.5% 84.3%

11.9%

0.5% 0.0% 2.5% 0.0% 0.3% 0.5%

84.3%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Appendix B: Housing Needs Assessment B-5

Table B-4 shows moderate changes in racial and ethnic demographics between 2011 and 2021 in the City of Watsonville. Those that identify as White, not Hispanic or Latino, experienced the largest decrease within the decade from 14.7 percent to 11.9 percent. Similarly, the American Indian and Alaska Native, Asian, and two or more races experienced a decrease from 2011 to 2021. In contrast, those that identified as Hispanic or Latino origin increased from 80.1 percent to 84.3 percent. Black or African American and Native Hawaiian/Other Pacific Islander experienced increases by 0.4 percent and 0.1 percent, respectively.

Table B-4: Racial/Ethnic Composition of Watsonville (2011-2021) Race/Ethnicity 2011 2016 2021 Change 2011
to 2021
White 14.7% 14.1% 11.9% -2.8%
Black or African American 0.1% 0.3% 0.5% 0.4%
American Indian and Alaska Native 0.3% 0.1% 0.0% -0.3%
Asian 3.4% 2.8% 2.5% -0.9%
Native Hawaiian/Other Pacific Islander 0.0% 0.2% 0.0% 0.0% Some other Race 0.2% 0.0% 0.3% 0.1%
Two or more races 1.1% 0.7% 0.5% -0.6%
Hispanic or Latino Origin 80.1% 81.8% 84.3% 4.2%
Source: American Community Survey, Table B03002, 5-Year Estimates, 2011, 2016, and 2021.

Appendix B: Housing Needs Assessment B-6
B. Economic Characteristics
In addition to demographics, economic characteristics may also indicate different housing needs.

Employment and income trends may indicate a need for more affordable units and assistance programs.

The data in this section provides valuable insight into Watsonville community’s ability to access the housing market and to afford housing. Specifically, incomes associated with different employment sectors and the number of workers in a household may affect housing affordability need and choice. Local employment growth is also linked to local housing demand, and vice versa. Therefore, to consider a healthy balance between jobs and housing, it is important to consider the employment characteristics of a community.

1. Employment and Wage Scale
Employment and income directly affect housing needs as they provide the ability to purchase and rent housing, as well as influence the types of housing residents can afford. Job growth refers to the number of residents in a jurisdiction that are employed. Table B-5 below outlines the total job growth forecast from 2015 to 2045. By 2045, the City is forecasted to experience a 14.8 percent job growth (approximately 3,900 new jobs). Compared to the nearby jurisdictions, Watsonville is projected to have the smallest growth in total jobs. This may be due to residents possibly commuting to nearby jurisdictions for work, and lasting effects from the COVID-19 pandemic.

Table B-5: Total Job Growth (2015-2045)
Jurisdiction 2015 2025 2035 2045 % Change
2015-2045
Salinas 73,009 79,577 82,505 85,683 17.4%
Hollister 14,428 15,728 16,655 17,613 22.1%
Watsonville 26,403 28,765 29,505 30,303 14.8%
City of Santa Cruz 40,840 44,317 46,863 49,636 21.5%
Santa Cruz County 130,436 141,391 147,125 153,261 17.5% Source: Association of Monterey Bay Area Governments, 2022 Regional Growth Forecast As of 2021, the largest sectors of employed people in Watsonville, as shown in Table B-6 below, were the education services, health care, and social assistance sector and the agriculture, forestry, fishing and hunting, and mining sector. Those industry sectors contained 19.3 percent and 15.7 percent, respectively, of the City’s employed population. A large number of persons were also employed in the retail and manufacturing trades. From 2016 to 2021, arts, entertainments, recreation, and food service had the largest decrease of employment in the City by 33.7 percent. In total, Watsonville’s employment is shown to have increased by 0.6 percent from 2016 to 2021 accounting for all industry sectors.