Agenda packet

Watsonville City Council
March 10, 2026

Document: Agenda packet
Meeting: March 10, 2026
Body: Watsonville City Council
Pages: 275
Original file: 55.0 MB

Text extracted from the city's file for reading and search. Open the original on pub-cityofwatsonville.escribemeetings.com. That file is the official record.

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Reso No. ______ (CM)
Meeting Date: 031126 SWZ ______ TV ______ CC ______
1 RESOLUTION NO. (CM)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WATSONVILLE ESTABLISHING A POLICY IN THE CITY OF

WATSONVILLE FOR DISRUPTION OF REMOTE PARTICIPATION

SERVICES DURING A MEETING
WHEREAS, on October 3, 2025, Governor Newsom signed Senate Bill 707 (SB 707), which amends the Brown Act to increase public engagement during local government meetings of legislative bodies; and
WHEREAS, SB 707 requires that the City offer hybrid meetings through a two-way phone and video platform; and
WHEREAS, SB 707 requires that the legislative body adopt a policy by July 1, 2026, that outlines the City’s procedure for attempting to restore service to the remote participation option of the meeting, should there be a disruption of telephonic or internet services.

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

1. This action does not meet CEQA’s definition of a “project”, because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.

2. That the Council hereby adopts the Disruption of Remote Participation Services Policy, a copy of which is attached hereto and incorporated herein by this reference, is hereby approved.
********************************************

Page 240 of 275 ends

City of Watsonville
Disruption of Remote Participation Services Policy
______________________________________________________________________ INTENT:

Pursuant to GC 54953.4, this policy establishes a procedure for addressing a disruption of telephonic or internet services during a public meeting.

POLICY:

All open and public meetings shall include an opportunity for members of the public to attend via a two-way telephonic service or a two-way audiovisual platform, except if adequate telephonic or internet service is not operational at the meeting location. If adequate telephonic or internet service is operational at the meeting location during only a portion of the meeting, the legislative body shall include an opportunity for members of the public to attend via a two-way telephonic service or a two-way audiovisual platform during that portion of the meeting.

If a disruption of telephonic or internet service that prevents members of the public from attending or observing the meeting via the two-way telephonic service or two-way audiovisual platform occurs during the meeting, the eligible legislative body shall recess the open session of the meeting for at least one hour and make a good faith attempt to restore the service. The eligible legislative body may meet in closed session during this period. The eligible legislative body shall not reconvene the open session of the meeting until at least one hour following the disruption, or until telephonic or internet service is restored, whichever is earlier.

Page 241 of 275 ends

Upon reconvening the open session, if telephonic or internet service has not been restored, the eligible legislative body shall adopt a finding by rollcall vote that good faith efforts to restore the telephonic or internet service have been made in accordance with the policy adopted pursuant to sub-sub-subclause (Ia) and that the public interest in continuing the meeting outweighs the public interest in remote public access.

Page 242 of 275 ends

Disruption of Remote
Participation Services
Policy
Watsonville City Council
March 10, 2026

Page 243 of 275 ends

SB 707 Overview
• Senate Bill (SB) 707 was signed into law on
October 3, 2025.
• Effective January 1 and July 1, 2026.
• Sunsets on January 1, 2030.
• Aimed at improving public access to meetings.

Page 244 of 275 ends

Three Categories of Changes
 Requires “eligible legislative bodies” to allow members of the public to remotely participate in a meeting;
 Modifies the ways officials can participate in a meeting remotely; and
 Allows “eligible subsidiary bodies” to meet remotely under certain circumstances.

Page 245 of 275 ends

“Eligible” Legislative Bodies
 City councils and county boards of cities/counties with populations of 30,000 or more, city councils in counties with 600,000 or more people, and certain large special districts— those with substantial populations, employees, or revenues  Subject to additional requirements under SB 707.

Page 246 of 275 ends

Changes for Eligible Legislative Bodies
 Hybrid Meetings Must offer the public an option to remotely participate in meetings via video conference or telephone service unless exemption applies (i.e. off-site tour, emergency circumstances) starting July 1, 2026.
 Language Translation and Interpretation Must translate meeting agendas and participation instructions into applicable languages (those spoken by at least 20% of the relevant population with limited English proficiency); provide a multilingual, accessible public webpage explaining comment procedures and meetings; and assist with interpretation requests.  Outreach Efforts to Underrepresented Communities Must make reasonable efforts to invite groups that do not traditionally participate in public meetings to attend those meetings, such as outreach to media organizations serving non-English-speaking communities or civic engagement organizations. Legislative body has broad discretion to implement these efforts.  Public Adoption of Policy for Disruption of Remote Participation Services

Page 247 of 275 ends

Policy for Disruption of Remote Participation
Services
 If connectivity/service disruption prevents remote participation during a public meeting, Council must recess and make good faith attempt to restore service for at least 1 hour.
 If connection is not restored within 1 hour, Council must adopt the following findings in order to proceed with the meeting w/o remote access:
o good faith efforts have been made in accordance with the policy, and o public interest in continuing the meeting w/o remote access outweighs the public interest in remote access.

Page 248 of 275 ends

QUESTIONS?

Page 249 of 275 ends

1 CITY COUNCIL AGENDA REPORT
MEETING DATE: Tuesday, March 10, 2026
TO: CITY COUNCIL
WRITTEN BY: HOUSING MANAGER LANDAVERRY
RECOMMENDED BY: INTERIM COMMUNITY DEVELOPMENT DIRECTOR MANNING APPROVED BY: TAMARA VIDES, CITY MANAGER
SUBJECT: PRESENTATION OF THE 2025 HOUSING ELEMENT ANNUAL PROGRESS REPORT
RECOMMENDATION:

Staff recommends that the City Council, by motion, based on the Planning Commission’s recommendation, accept the Housing Element Annual Progress Report (APR) for the 2025 calendar year for the adopted 2024-2031 Housing Element and submittal of the reports to the California Department of Housing and Community Development (HCD) and the Governor’s Office of Land Use and Climate Innovation (LCI), formerly the Governor’s Office of Planning and Research (OPR).

DISCUSSION:

Government Code Section 65400 requires each local government to prepare an Annual Progress Report (APR) on the status and progress of implementation of the Housing Element and submit it to the Department of Housing and Community Development (HCD) and the Governor’s Office of Land Use and Climate Innovation (LCI) (formerly the Governor’s Office of Planning and Research (OPR)) by April 1st of each year. Cities and counties with a compliant housing element and up-to-date submissions of APRs gain access to State grant funds.

The APR details progress in meeting the City’s share of regional housing needs and local efforts to remove governmental constraints to the maintenance, improvement, and development of housing. The APR is prepared using standards, forms, and definitions adopted by HCD. The data and information in the HCD forms document the number of new units of all types of housing in each income category, and the progress in meeting the City’s share of the Regional Housing Needs Allocation (RHNA). In addition, the APR summarizes the planning activities and implementation of housing programs for the City of Watsonville from January 1 to December 31, 2025, in compliance with Government Code section 65400.

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2 Cities are required by state law to update their housing elements every eight years. 2025 is the second full year of our 6th Cycle Housing Element, which was certified by the State Housing and Community Development Department on October 28, 2024. The planning period for the 6th Cycle Housing Element for Watsonville began on June 30, 2023, and ends on December 15, 2031.

As shown in APR Table B, 142 housing units were counted during the first two and a half years of the 6th Housing Element Cycle, which will count towards the 2,053 total units of the RHNA goal, representing 7% of the City’s total RHNA allocation. The City’s responsibility with respect to the RHNA is to ensure that there is adequate land available and zoned appropriately to allow the development of the specified number of housing units, however because cities do not construct housing, we must rely on private developers to construct housing units. The state continues to push cities to relax development standards and provide additional incentives to developers in order to entice development and reduce the risks and costs inherent in new construction. With the adoption of the Downtown Watsonville Specific Plan, the City anticipates that a significant amount of new housing will be proposed in the downtown area during the current 6th Cycle Housing Element.

DESCRIPTION OF TABLES
The reporting forms (Tables A-K) have been revised by HCD in recent years and require detailed information on each application, entitlement, issued building permit, and completed construction in an Excel spreadsheet format. As a result, the tables are large and difficult to reproduce as attachments to this report. Summaries of the information presented in Tables A and A2 are attached to this report and the entire report can be found at the following link: https://cityofwatsonville.org/165/Housing Table A contains data on the housing development planning applications that were submitted to the Community Development Department in 2025. The data is limited to ministerial and discretionary applications received in 2025. A total of 30 complete applications were received last year. The 30 proposed units include 11 for-sale units at the Hillcrest Estates Development and 19 accessory dwelling units (ADUs). The table below shows all proposed units in 2025.

Table A: Housing Applications Summary
Total Housing Applications Submitted: 30
Number of Proposed Units in All Applications Received: 30 Total Housing Units Approved: 30
Total Housing Units Disapproved: 0

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3 Table A2 contains data on the discretionary housing development planning applications that were approved (entitled), all ministerial building permits issued for housing development, and housing construction completed. Building permits were issued for a total of 20 housing units in 2025 including single-family units and ADUs. Eleven of the permitted units are in the Hillcrest Estates development and the rest are ADUs as described previously. The table below shows all the permits issued in 2025 by income category.

Table A2: Building Permits Issued by Affordability Summary Income Level Current Year
Very Low
Deed Restricted 0
Non-Deed
Restricted
0 Low
Deed Restricted 0
Non-Deed
Restricted
0 Moderate
Deed Restricted 0
Non-Deed
Restricted
0 Above Moderate 20
Total Units 20
Table B places these 20 new housing units into affordability categories to demonstrate the City’s progress in meeting the allocated share of regional housing needs for the RHNA planning period. A summary of Table B is shown below, and the full table outlining units constructed per year, is listed in the APR.

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4 SUMMARY OF TABLE B
RHNA Progress Permitted Units Issued by Affordability
Income Level
RHNA Allocation
by Income Level
Total Units
to Date Total Remaining RHNA
Very Low
283 10 273
Low
186 32 154
Moderate
521 521
Above Moderate
1,063 100 963
Total RHNA 2,053
Total Units 142 1,911
Progress toward extremely low-income housing need, as determined pursuant to Government Code 65583(a)(1)
Extremely-Low
Income Need
Total Units
to Date Total Units Remaining
Extremely Low-Income
Units 142 0 142

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5 Table C is not applicable to the City.

Table D contains information on the status and progress of Housing Element program and policy implementation for all programs described in the Housing Element.

Tables E and F and F2 are not applicable to the City.

Table G requests a list of City-owned sites from the Housing Element Sites Inventory that were sold, leased, or otherwise disposed of during the reporting year. (None in 2025 – Not Applicable).

Table H requests an inventory of City-owned surplus lands. (None in 2025 – Not Applicable).

Table I requests a list of Units Constructed Pursuant to Government Code 65852.21 and Applications for Lot Splits Pursuant to Government Code 66411.7 (SB9) (None in 2025 – Not Applicable).

Table J requests a list of Student housing development for lower income students for which was granted a density bonus pursuant to subparagraph (F) of paragraph (1) of subdivision (b) of Section 65915 (None in 2025 – Not Applicable).

Table K is a recent requirement (SB 649) and requires local governments adopting a tenant preference to create a webpage containing the authorizing local ordinance and supporting materials. Last year, the City Council amended the City's Affordable Housing Ordinance to comply with current State law and make elements of the Ordinance clearer and more consistent, and one of the amendments includes having a provision for local preference. Following is the link containing the City’s local ordinance and supporting materials.
https://www.watsonville.gov/165/Housing
The Summary Table provides a summary of housing units for which building permits were issued and applications were submitted in 2025. These tables also include information on SB 35 streamlining applications and permits.

The LEAP Reporting table is required for any jurisdictions that have received Local Early Action Planning (LEAP) grants. (None in 2025 – Not Applicable).

The Housing Element APR was presented to the Planning Commission at its regularly scheduled meeting on March 3, 2026. No written comments in support or opposition were submitted prior to the meeting and no one from the public spoke during the meeting. The Planning Commission voted unanimously to recommend that the City Council accept the Housing Element APR and submit it for 2025 calendar year.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION:

The preparation and submittal of the Housing Element APR is not a project under the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines Section 15378(b)(2), as the action does

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6 not have the potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore no further review is required.

STRATEGIC PLAN:

The Housing Element APR is an informational document that shows the City’s progress in meeting our Regional Housing Needs Allocation and is consistent with the Housing goal in the City’s Strategic Plan.

FINANCIAL IMPACT:

Preparation of the Housing Element APR is part of the Community Development Department’s budgeted work program using existing staff resources.

ALTERNATIVE ACTION:

The City Council may choose not to accept the Housing Element APR for 2025 at this time, but doing so may jeopardize the City’s ability to gain access to State grant funds.

ATTACHMENTS AND/OR REFERENCES (IF ANY):
1) 2025 Housing Element Summary Table
2) 2025 Housing Element Table B
3) 2025 Housing Element Table D
4) Link to the 2025 Housing Element Annual Progress Report:
https://cityofwatsonville.org/165/Housing

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Jurisdiction Watsonville
Reporting Year 2025
Housing Element Planning Period 6th Cycle
Current Year
Deed
Restricted 0
Non-Deed
Restricted 0
Deed
Restricted 0
Non-Deed
Restricted 0
Deed
Restricted 0
Non-Deed
Restricted 0
Deed
Restricted 0
Non-Deed
Restricted 0
Deed
Restricted 0
Non-Deed
Restricted 0
20 20
Units by Structure Type Entitled Permitted Completed
Single-family Attached 0 11 33
Single-family Detached 0 0 0
2 to 4 units per structure 0 0 0
5+ units per structure 0 0 0
Accessory Dwelling Unit 7 9 17
Mobile/Manufactured Home 0 0 0
Total 7 20 50
Infill Housing Developments and Infill Units Permitted # of Projects Units 20 20
0 0
30 30
30 0
0 0
Income Rental Ownership Total
Acutely Low 0 0 0
Extremely Low 0 0 0
Very Low 0 0 0
Low 0 0 0
Moderate 0 0 0
Above Moderate 0 0 0
Total 0 0 0
Streamlining Provisions Used - Permitted Units # of Projects Units SB 9 (2021) - Duplex in SF Zone 0 0
SB 9 (2021) - Residential Lot Split 0 0
AB 2011 (2022) 0 0
SB 6 (2022) 0 0
SMAP 0 0
Ministerial and Discretionary Applications # of Units
Ministerial 19 19
Discretionary 11 11
Density Bonus Applications and Units Permitted
Number of Applications Submitted Requesting a Density Bonus 0 Number of Units in Applications Submitted Requesting a Density Bonus 0 Number of Projects Permitted with a Density Bonus 0
Number of Units in Projects Permitted with a Density Bonus 0 Housing Element Programs Implemented and Sites Rezoned Count 34 0
Total Housing Applications Submitted:

Number of Proposed Units in All Applications Received:

Total Housing Units Approved:

Total Housing Units Disapproved:

Total Units
Housing Applications Summary
Use of Streamlined Ministerial Approval Process or SMAP (formerly SB 35 / 423) - Applications Number of SMAP Applications
Above Moderate
Indicated as Infill
Not Indicated as Infill
Building Permits Issued by Affordability Summary
Income Level
Programs Implemented
Sites Rezoned to Accommodate the RHNA
(Jan. 1 - Dec. 31)
12/15/2023 - 12/15/2031
Units Constructed - SMAP (formerly SB 35 / 423) - Permits Number of SMAP Applications Approved
Very Low
Low
Moderate
Acutely Low
Extremely Low
Attachment 1

Page 1 of 1 ends

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Jurisdiction Watsonville ANNUAL ELEMENT PROGRESS REPORT Reporting Year 2025 (Jan. 1 - Dec. 31) Housing Element Implementation Planning Period 6th Cycle 12/15/2023 - 12/15/2031
1 Projection
Period 3 4
RHNA Allocation
by Income Level
Projection
Period -
06/30/2023-
12/14/2023
2023 2024 2025 2026 2027 2028 2029 2030 2031
Total Units to
Date (all
years)
Total Remaining
RHNA by
Income Level
Deed Restricted - - - - - - - - - -
Non-Deed Restricted - - - - - - - - - -
Deed Restricted - - - - - - - - - -
Non-Deed Restricted - - - - - - - - - -
Deed Restricted - - 10 - - - - - - -
Non-Deed Restricted - - - - - - - - - -
Deed Restricted 3 - 4 - - - - - - -
Non-Deed Restricted 20 5 - - - - - - - -
Deed Restricted - - - - - - - - - -
Non-Deed Restricted - - - - - - - - - -
Above Moderate 1,063 10 - 70 20 - - - - - - 100 963
2,053
33 5 84 20 - - - - - - 142 1,911
Please note: The APR form can only display data for one planning period. To view progress for a different planning period, you may login to HCD's online APR system, or contact HCD staff at [email protected].

Acutely Low - -
*For years prior to 2025, data on deed-restricted vs. non-deed restricted Extremely Low-Income units is approximated from whether the projects reported any deed-restricted Very Low-Income Units. If you wish to edit this historical data for accuracy or have any questions about the data, you may login to HCD's online APR system, or contact HCD staff at [email protected].

Total Units
*For jurisdictions that received RHNA determinations for the current cycle prior to the passage of AB 3093 (September 19, 2024):
- You were not allocated Acutely Low-Income and Extremely Low-Income RHNA targets, therefore the allocations in Field 1 are listed as "0" - If you wish to set your own targets in these income categories for informational purposes, contact HCD staff at [email protected]. - All Acutely Low-Income and Extremely Low-Income units reported during the cycle are counted towards Very-Low Income RHNA progress 521
Total RHNA
-
154 Low
*For years prior to 2025, Acutely Low-Income units are reported within the Extremely Low-Income category Please Note: Table B does not currently contain data from Table F or Table F2 for prior years. You may login to the APR system to see Table B that contains this data.

Extremely Low -
- Moderate
283
186
521
32 10
Income Level
Very Low
- -
This table is auto-populated once you enter your jurisdiction name and current year data. Past year information comes from previous APRs.

Please contact HCD if your data is different than the material supplied here 2 Table B
Regional Housing Needs Allocation Progress
Permitted Units Issued by Affordability
273
Attachment 2

Page 1 of 1 ends

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Jurisdiction Watsonville
Reporting Year 2025 (Jan. 1 - Dec. 31)
1 2 3 4 5 6 7 8 9
Name of Program Objective
Projected Completion
Date in Housing
Element
Applicable Cycle Status of Program
Implementation Program Implementation Details Quantified Outcomes: Category Quantified Outcomes:

Count Supporting Documents
Program A.1:

Code Enforcement
continue to carry out code enforcement
activities, including performing property
inspections and citing code violations,
when necessary
Throughout the Planning
Period
6th Cycle Continuous
The City processed over 300 cases in 2025. The
City has been working on a backlog of complaints
and activates cases in response to the number of
complaints received.

Other 300 None
Program A.2: Housing Rehabilitation
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
Throughout the Planning
Period
6th Cycle Continuous
35 rental units were rehabilitated during 2025 and
one owner occupied housing rehabilitation project
is under construction
Units 36 None
Program A.3: Preservation
of Affordable Housing
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
Throughout the Planning
Period
6th Cycle Continuous
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 case by
case basis. However, there were no at risk
affordable housing units in 2025 that necessitated
City intervention
Units 0 None
Program A.4: Mobile
Home Park Conservation
Ordinance
Continue to implement the Mobile Home
Park Conversion and Rent Stabilization
Ordinances
Throughout the Planning
Period
6th Cycle Completed
In the fall of 2024, the City Council approved
updates to the mobile home park conversion
ordinance to protect our existing mobile home
parks.

Units 0
https://www.codepublishing.com/CA/Watsonvi
lle/#!/Watsonville11/Watsonville1104.html#11-
4 Program A.5: Replacement Housing
Formulate replacement housing program
requirement and amend the Municipal
Code
Within three years of
Housing Element adoption
6th Cycle In Progress In Progress Units 0 None
Program A.6: Displacement Protection
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
Throughout the Planning
Period
6th Cycle Continuous
The City applied for it's Permanent Local Housing
Allocation , and we continue to monitor HCD and
HUD for funding opportunities.

Units 53 None
Program B.1: First
Time Home Buyer Loans
Continue to offer First Time Home Buyer
Loans
Throughout the Planning
Period
6th Cycle Continuous
Responded to over 1,200 inquiries; proceseed 20
FTHB applications and closed 12 transactions.

Conducted outreach and education meetings on
the programs offered by the Housing Division,
which were well attended, and processed 61
families for eligibility purposes to paticipate in the
City's affordable housing program.

Households 20 None

ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.

Table D
Program Implementation Status pursuant to GC Section 65583 Attachment 3

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Program B.2: Down
Payment Assistance Loans
Continue to offer Down Payment
Assistance Loans
Throughout the Planning
Period
6th Cycle Continuous
Responded to over 1,200 inquiries; processed 5
applications for financial assistance and approved
2 loans. Conducted outreach and education
meetings on the programs offered by the Housing
Division, which were well attended, and processed
56 families for eligibility purposes to paticipate in
the City's affordable housing program.

Households5 None
Porgram B.4: Relocation
Assistance Ordinance
continue to implement the Relocation
Assistance Ordinance to assist tenants
who are displaced from dangerous
buildings
Throughout the Planning
Period
6th Cycle Continuous
The relocation assistance program provides
referrals for temporary shelter for families who
were living in unsafe and substandard housing
units in the City.

Households1 None
Program B.5:

Child Care Assistance
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.

Throughout the Planning
Period
6th Cycle Completed The City Council adopted updates to the Municipal Code in the Fall of 2025.

Other1
https://www.codepublishing.com/CA/Watsonvi
lle/#!/Watsonville14/Watsonville1411.html#14-
11 Program B.6: Application
for Grants and Loans
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
Throughout the Planning
Period
6th Cycle Continuous
The City has had considerable success in
applying for available grants and loans programs
and continues efforts to investigate potential
funding sources.

Other2 None
Program B.7: Promotion
of Resources for Large
Households
Encourage the establishment of
resources that help meet the large
household housing needs of Watsonville
residents
Throughout the Planning
Period
6th Cycle Continuous
The City works 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 to promote resources for
large households. The City's affordable housing
stock includes large affordable housing units for
large households.

Persons2 None
Program B.8:

Promotion of Resources for
Female-Headed Households
Encourage the establishment of
resources that help meet the femaleheaded household housing needs of Watsonville residents
Throughout the Planning
Period
6th Cycle Continuous
The City works 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.

Households5 None
Program C.1:

Adequate Sites Program
Maintain adequate inventory on the
City’s website throughout the Planning
Period
Throughout the Planning
Period
6th Cycle Continuous
The City maintains a current inventory of vacant
and underutilized lands suitable for residential
development to ensure adequate capacity to meet
the RHNA during the planning period.

Other1
https://www.watsonville.gov/2328/CommunityDevelopment
Program C.2: Explore
Additional Residential
Opportunity Sites
Research potential AB 2295, AB 2011,
SB 6, and SB 4 sites and adopt
amendments to the Municipal Code as
needed
Throughout the Planning
Period
6th Cycle Continuous The City maintains a list of vacant and underutilized parcels and updates it annually Units
5 None
Program C.3: SB
330 Compliance
Maintain consistency with State Housing
Law
Throughout the Planning
Period
6th Cycle Completed The City Council adopted updates to the Municipal Code in the Fall of 2025.

Other1
https://www.codepublishing.com/CA/Watsonvi
lle/#!/Watsonville14/Watsonville1447.html#14-
47 Program C.4: Affordable
Housing Ordinance
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
Throughout the Planning
Period
6th Cycle Continuous
Construction was completed for two affordable
housing projects totalling 125 units (Miles Lane
Project for 72 units and 1482 Freedom Blvd.

Project for 53 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.

Units 125 None
Program C.5: Partnership
with Non-Profit Housing
Agencies
Continue to grant financial assistance,
land write-downs, regulatory incentives,
and/or other forms of assistance to nonprofit developers of affordable and special needs housing. Assistance to be
provided citywide
Throughout the Planning
Period
6th Cycle Continuous
The City works 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.

Units 125 None
Attachment 3

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Program C.6: Encourage
Mixed-Use Development
Opportunity in Commercial
Areas
Continue to promote residential uses in
commercial areas. Encourage higher
densities for residential uses in
commercial zones
Throughout the Planning
Period
6th Cycle Continuous
The City promotes mixed use development along
commercial corridors. During this reporting
period the City has been working 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 Chater 14-46.

Units 50 None
Program C.7: Transitional
Housing and Emergency
Shelters
Continue to support the development
and expansion of existing transitional
housing facilities
Throughout the Planning
Period
6th Cycle Continuous The City has an Emergency Shelter Ordinance, WMC Chapter 14-43 certified by the State . Persons 36
https://www.codepublishing.com/CA/Watsonvi
lle/#!/Watsonville14/Watsonville1443.html#14-
43 Program C.8: Supportive Housing
Collaborate with local organizations and
agencies to discuss the needs of
persons experiencing homelessness and
extremely low-income households
Throughout the Planning
Period
6th Cycle Continuous In Progress Persons 38 None
Program C.9: LowBarrier Navigation Centers
Amend the Zoning Ordinance to include
procedures and regulations to process
low-barrier navigation centers in
compliance with State law
Throughout the Planning
Period
6th Cycle Completed
The City Council adopted updates to the
Municipal Code in the Fall of 2025. The zoning
administrator approved one low-barrier navigation
center in 2024 consisting of 34 units (appeals
upheld the zoning administrator's decision),
construction was completed in late 2025.

Units 34 None
Program C.10:

Water and Sewer Providers
Forward the adopted 2023-2031 Housing
Element to local water and sewer
providers, and any amendments thereto Upon adoption
6th Cycle Completed
Completed
Other 2 None
Program C.12: Surplus
Land Act
establish and implement a variety of
incentives to facilitate development of
City-Owned sites, including providing
fee waivers, flexibility and reductions to
development standards, priority
processing, and financial assistance
Throughout the Planning
Period
6th Cycle Continuous
Ongoing
Units 13 None
Program D.1: Density
Bonus Ordinance
Conduct a comprehensive review of
Density Bonus Law requirements in the
City’s Municipal Code Dec-25
6th Cycle Completed The City Council adopted the Density Bonus Ordinance in the Fall of 2025.

Other 1
https://www.codepublishing.com/CA/Watsonvi
lle/#!/Watsonville14/Watsonville1447.html#14-
47 Program D.2: Planned
Development District (PD)
Continue to offer the PD zoning
designation as an option for developers
to create more tailored residential
projects.

Throughout the Planning
Period
6th Cycle Continuous The City continues to offer the PD zoning designation as an option for developers to create
more tailored residential projects.

Other 1 None
Program D.3:

Design Review Process
Update and enforce the City’s Design
Review process and the Residential
Design Guidelines to provide objective
design standards Dec-26
6th Cycle In Progress The City is currently working on amendments to the Residential Design Guidelines .

Other 1 None
Program D.4: Accessory
Dwelling Units and Junior
Accessory Dwelling Units
Maintain compliance with State housing
laws for ADUs and JADUs Dec-25
6th Cycle Continuous
The City received 19 permit applications for
accessory dwelling units in 2025 and approved
almost all permits by the end of the reporting
period. In addition and in light of new state
regulations regarding accessory dwelling units,
the City is in the process of revising its ADU
ordinance to comply with state law.

Units 19 None
Program D.5:

Reasonable
Accommodations
Adopt reasonable accommodations
procedures. Establish and maintain
updated information on reasonable
accommodations on the City’s website
and at City Hall Dec-25
6th Cycle Completed
The City Council adopted updates to the
Municipal Code in the Fall of 2025.

Other 1
https://www.codepublishing.com/CA/Watsonvi
lle/#!/Watsonville14/Watsonville1411.html#14-
11 Program D.6: Definition of Family
Amend the Zoning Ordinance to include
a definition of “Family” which meets
State requirements. Dec-25
6th Cycle Completed The City Council adopted updates to the Municipal Code in the Fall of 2025.

Other 1
https://www.codepublishing.com/CA/Watsonvi
lle
Attachment 3

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Program D.7: Zoning
Ordinance Update
Addressing Development
Constraints for Affordable
Housing
Meet with development community and
the public to identify potential
constraints to parking standards and
solicit input on Zoning Ordinance
Modification
Jun-26 6th Cycle Completed
The City Council adopted updates to the
Municipal Code in the Fall of 2025.

Other1
https://www.codepublishing.com/CA/Watsonvi
lle
Program D.8: Permit
50 Percent Residential Use
in Downtown Central Core
Area
Amend requirements for applicable sites
in the Downtown Watsonville Specific
Plan to allow minimum 50 percent
residential use for mixed use projects
Jun-26 6th Cycle In Progress
The City Council adopted updates to the
Municipal Code in the Fall of 2025.

Other1
https://www.codepublishing.com/CA/Watsonvi
lle
Program D.9: Zoning
Ordinance Update to Allow
Residential Care Facilities
of 7 or More Persons
Amend requirements for residential care
facilities of 7 or more persons in
residential zones to allow development
through administrative review
Jun-26 6th Cycle Completed
The City Council adopted updates to the
Municipal Code in the Fall of 2025.

Other1
https://www.codepublishing.com/CA/Watsonvi
lle
Program D.10:

Manufactured Homes
Review Municipal Code for consistency
with State Law and adopt any necessary
amendments
Jun-25 6th Cycle Completed The City Council adopted updates to the Municipal Code in the Fall of 2025.

Other1
https://www.codepublishing.com/CA/Watsonvi
lle
Program D.11: Lot
Consolidation
Facilitate the consolidation of nonvacant, underutilized sites.

Jan-26 6th Cycle Completed The City Council adopted updates to the Municipal Code in the Fall of 2025.

Other1
https://www.codepublishing.com/CA/Watsonvi
lle
Program D.12:

Development Community
Outreach
conduct outreach to developers and
community organizations to identify
development opportunities and
incentives for the creation of affordable
housing units.

Throughout the Planning
Period
6th Cycle Continuous The City continues to engage with developers, community organizatins and affordable housing
advocates to help achieve successful outcomes.

Meetings2 None
Program D.13:

Building Height Limits
Adopt an amendment to the DWSP
increasing height limits for the
Downtown Neighborhood and Downtown
Industrial zoning districts to six stories
and for the Downtown Core zoning
district to eight stories.

Jan. 2027 6th Cycle Completed
The City Council adopted updates to the
Municipal Code in the Fall of 2025.

Other1
https://www.codepublishing.com/CA/Watsonvi
lle
Program E.1: Fair Housing
Program
Continue to support the State Office of
Fair Employment and Housing
Throughout the Planning
Period
6th Cycle Completed
In 2025, the City prepared an Analysis of
Impediments to Fair Housing as part of the
consolidated planning process, and contiues to
support equal opportunity lending programs and
non-discriminatory practices in selection of
residents for participation in the City’s housing
assistance programs.

Other1 https://www.watsonville.gov/165/Housing
Program E.2: Housing
for Persons with Physical
Disabilities
Outreach annually to nonprofit housing
partners and keep resources updated on
the City website
Throughout the Planning
Period
6th Cycle Continuous
The City continues to work with non-profits and
the County of Santa Cruz to promote the provision
of accessible housing units. In 2024 three
affordable housing projects were completed
totalling 205 affordable units that include units for
persons with phisical and mental disabilities.

Units 10 None
Program E.3: Housing
for Persons with
Developmental Disabilities
Encourage construction and
rehabilitation of housing with supportive
services for persons with developmental
disabilities
Throughout the Planning
Period
6th Cycle Continuous
The City continues to work with non-profits and
the County of Santa Cruz to promote the provision
of accessible housing units. In 2024 three
affordable housing projects were completed
totalling 205 affordable units that include units for
persons with developmental disabilities.

Units 10 None
Program E.4: Affirmatively
Further Fair Housing
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
Throughout the Planning
Period
6th Cycle Continuous
City staff participates on various housing and
service provider boards and are actively involved
in collaborations with local jurisdictions and nonprofit service providers to improve awareness and expansion of available resources as indicated in
other sections. Fair housing information is
displayed in City Hall and on all housing
applications and contracts. Handouts are
maintained and provided in English and Spanish.

Units 50 None
Attachment 3

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Program E.5: Energy
Conservation
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.

Throughout the Planning
Period
6th Cycle Continuous
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 to employ additional energy
conservation measures for the siting of buildings,
landscaping, and solar access through programs
in the Energy Action Plan.
1 None
Program E.6: Farmworker
and Workforce Housing
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
Dec-25 6th Cycle Completed
The City continues to work with non-profits and
the County of Santa Cruz to promote the provision
of accessible housing for farmworkers. In 2024
three affordable housing projects were completed
totalling 205 affordable units that include almost
half of the units for farmworker families.

Units 100 None
Program E.7:

Environmental Justice
Element
Incorporate environmental justice
objectives, policies, and programs in the
2050 General Plan Update
Dec-26 6th Cycle In Progress In Progress Other 1
https://www.watsonville.gov/160/2005-
General-Plan
Attachment 3

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Attachment 3

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Attachment 3

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Housing Element
Annual Progress Report
Report 2025

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2025 Housing Element
Annual Progress Report
Required by state law to receive funding (both housing
and non-housing related funds)
Provides overview of housing development annually
•Applications, entitlements, permits, completed units
Provides a summary of Housing Element goals met
Recent Requirements
•SB35 Streamlining, Surplus Land Inventory, LEAP Reporting, Local Preference

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Housing
Element
Program
Goals
 Housing Programs:
 Approve first time homebuyer loans
 Approve sale of affordable units
 Process housing rehabilitation applications
 Monitor affordable housing units
 Leveraged CDBG funds to assist low-moderate income
residents; assist Parks & Rec and code enforcement
activities; fund capital projects

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Housing
Element
Program
Goals
Continued
 Housing Programs:
 Mortgage Assistance Pre-qualifications
 Refinances/Subordinations
 Payoff Demands
 Sale Price Calculations
 Code Enforcement Cases
 Work with Housing Developers
 Mobile Home Parks
 Homelessness

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2025
Development
Activity
Results
 Total planning applications submitted: 30
 Housing units approved: 30
 Total units Entitled: 7
 Building permits issued: 20
 Total units completed: 50

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2025
Building
Permits by
Income
Level
Income Level
Current Year
(2025)
Very Low
Low
Moderate
Above Moderate 20
Total Units 20

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RHNA Progress Made
Income
Level
RHNA
Allocation
by Income
Level
2024 2025 2026 2027 2028 2029 2030 2031 Total Units to
Date (all
years)
Total
Remaining
RHNA by
Income
Level
Very Low 283 10 10 273
Low 186 32 32 154
Moderate 521 521
Above
Moderate 1,063 80 20 100 983
Total RHNA
2,053
Total Units 122 142 1,911

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221 Airport
49 units
Miles Lane
72 units
1482
Freedom
53 units

CURRENT DEVELOPMENTS
Sunshine
Gardens
87 units
Hillcrest
Estates
144 units
558 Main St.
50 units
36 Airport
23 units

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Estimated Construction Timeline for Major Projects
Project Name 2025 2026 2027 2028
221 airport Blvd Completed
558 Main St.

Begin
Building Building Finish
Building
Miles Lane Completed
1482 Freedom Blvd Completed
Sunshine Gardens Resume
Building Building Building Building
Hillcrest Estates Begin
Building Building Building Building
36 Airport/Evans Cir Begin
Building Building Building

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Recommendation
 Staff recommends that the City Council accept the 2025 Housing Element Annual Progress Report.

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Questions?

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