Introduction
This Chapter of the General Plan is entitled “Housing Element Summary.”, It is an abbreviated version of the Full Housing Element Technical Document 2002-2008. The Full Housing Element was adopted by the Monterey County Board of Supervisors on November 4, 2003, and has subsequently been certified by the State Department of Housing and Community Development.

This Housing Element Summary amends certain Housing Element strategies in the Housing Program Strategy section of the Full Housing Element, to strengthen the Element with respect to maximizing the amount of affordable housing built in Monterey County. For instance, the policies contained in this Housing Element Summary increase the amount of inclusionary housing required in new housing developments. The technical sections of the Full Housing Element, including the Needs Assessment, Projected Housing Needs, Housing Constraints, Resource Inventory, Affordable Housing Opportunities, Review of the 1992 Housing Element, Energy Conservation Opportunities, and Appendices do not change, and are incorporated here by reference.

This Housing Element Summary has been submitted to the State Department of Housing and Community Development for their preliminary review. Following adoption of the Community General Plan, including this Housing Element Summary, program and text amendments necessary to reflect the changes made must be submitted by the County to the State Department of Housing and Community Development for certification. While the Full Housing Element Technical Document will need to be updated every five years under state law, it is anticipated that the housing goals and policies will not change significantly over the 20-year horizon of this General Plan.

As with all other Elements of this Community General Plan, the policies included in this Housing Element are based on the Twelve Guiding Objectives, and particularly on Guiding Objective #4:

Guiding Objective #4
Strongly encourage new commercial, industrial, and residential development to provide actual, new, permanently affordable living quarters, including housing for people with low, very low, and moderate incomes who live and/or are employed in Monterey County. Promote density, creative and innovative design concepts, and employer-produced housing which will increase affordable housing opportunities convenient to the workplace. Promote a healthy job and housing balance in all areas.

The policies in this Housing Element Summary, along with the rest of this Community General Plan, will achieve this most important community goal.

Housing – Policy #1
Commitment To Affordable Housing – The lack of adequate affordable housing in Monterey County has caused, and will continue to cause serious economic, public safety, social, and environmental problems. These problems constitute a community crisis, and without the policies established within this General Plan, new commercial, industrial, and residential developments will make these problems worse. The public health, safety, and welfare require that new developments within Monterey County help provide increased housing opportunities for persons who live and work in Monterey County, and particularly for those persons with very low, low, or moderate incomes.

Housing – Policy #2
Inclusionary Housing Program -The County shall adopt and implement an Inclusionary Housing Program, which will require that at least 25% of the units in any new housing project (or 25% of the new lots in any new residential subdivision) will be affordable to very low, low and moderate income households in perpetuity. The Inclusionary Housing Program shall require all new housing projects of four units or more, and all residential subdivisions of four or more new parcels, to provide affordable units or lots as part of the project. New housing projects of fewer than four units, or residential subdivisions that create fewer than four new parcels, shall be required to pay an in-lieu fee, which shall be in an amount sufficient to pay for one-fourth of the cost of creating a new housing unit, including the cost of land and construction, in the Planning Area in which the new housing unit or residential subdivision is located. This 25% Inclusionary requirement will be achieved as follows:

• Very Low Income Category – 5% [Usually Rental Units]
• Low Income Category –5% [For Sale or Rental Units]
• Moderate Income Category – 15% [For Sale Units]

Housing – Policy #3
Increased Inclusionary Requirements in Special Cases – For housing developments on lands owned by Monterey County, including lands on the former Fort Ord, or on any land in the unincorporated area whose General Plan designation is changed from Agriculture or Rural Lands to a designation allowing for an urban level of development, at least 40% of the new housing units constructed shall be affordable to very low, low and moderate-income households. This 40% Inclusionary requirement will be achieved as follows:

• Very Low Income Category – 8% [Usually Rental Units]
• Low Income Category –12% [For Sale or Rental Units]
• Moderate Income Category – 20% [For Sale Units]

Housing – Policy #4
Affordable Housing Defined – “Affordable housing” means those residential projects, for rent or sale, which are intended for and permanently restricted to households of very low, low, and moderate income, which meet the following qualifications:

1. A rental project for very low income households (income up to 50% of Housing and Urban Development (HUD) median household income for Monterey County) where the unit has a monthly contract rent less than or equal to 30% of 50% of the HUD median household income adjusted for household size; or
   
   
2. A rental project for low income households (income between 50% and 80% of Housing and Urban Development (HUD) median household income for Monterey County) where the unit has a monthly contract rent less than or equal to 30% of 70% of the HUD median household income adjusted for household size; or
   
   
3. A project for sale to low income households (income between 50% and 80% of Housing and Urban Development (HUD) median household income for Monterey County) where the units are for sale to households with incomes not more than 80% of the HUD median income for Monterey County.  The average price of the unit will be based on the affordability of such a unit to a four person household earning 70% of the Monterey County median income as defined by HUD; or
   
   
4. A project for sale to moderate income households (income between 80% and 120% of Housing and Urban Development (HUD) median household income for Monterey County) where the units are for sale to households with incomes not more than 120% of the HUD median income for Monterey County. The average price of the unit will be based on the affordability of such a unit to a four person household earning 100% of the Monterey County median income as defined by HUD; or
   
   
5. Any combination of the above.

Housing – Policy #5
Equity Sharing – In order to allow very low, low, and moderate income families to achieve the greatest possible benefit from the economic advantages of homeownership, any increased equity in a for-sale affordable housing unit produced as part of the County’s Inclusionary Housing Program shall be shared, upon the resale of the unit, with the very low, low, or moderate income homeowner selling the unit, so long as the unit remains permanently affordable in the same category in which it was originally sold (e.g. sale at the very low, low or moderate income level).

Housing – Policy #6
Density Bonus Ordinance – State density bonus provisions shall be applied to housing projects that meet at least one of the following:

a.	10% of the units affordable to very low-income households.
b.	20% of the units affordable to low-income households.
c.	20% of the units in a condominium project and affordable to moderate-income households.
d.	50% of the units for special need groups (as defined in Section 51.3 of the State Civil Code).

Other developer incentives shall be offered to encourage housing projects that meet these provisions, such as, modified development standards, permit fast-tracking, and fee reductions or waivers.

Housing – Policy #7
Federal and State Housing Grant Programs – The County shall administer housing programs to assist those living and/or working within the unincorporated area and shall apply for State,  Federal and private grants in order to maximize the development of affordable housing.

Housing – Policy #8
Funding Assistance – The County shall leverage funding available through the Inclusionary Housing Program in-lieu fees, program income and the Redevelopment Housing set-aside funds, as well as other private and public programs to obtain additional loans, grants, and private financing to develop the maximum amount of affordable housing feasible.

Housing – Policy #9
Assistance to Achieve Affordability and Diversity – The County shall provide technical assistance and/or provide support services to agencies and organizations that are involved in the development and construction of housing.  Further, the County shall encourage other agencies to provide increased assistance to help Monterey County residents enter the rental and homeownership markets.

Housing – Policy #10
Secondary Units – In addition to a primary residence on a parcel, the County shall allow secondary dwellings as provided below, in order to provide additional housing opportunities:

a.	In Community Areas, secondary units shall be called Accessory Dwelling Units (ADUs). The Redevelopment and Community Area Plans will define standards for such units, including compliance with all of the requirements for State legislation regarding Second Units (AB 1866). The feasibility of including affordability restrictions on new ADUs shall be evaluated during the preparation of the Redevelopment and Community Area Plan process.
b.	In Agricultural Lands and on Qualified Rural Lands, a second and/or a third unit may be allowed as a conditional use on an existing legal lot of record, provided that all of the following findings are made: 1) the unit is clearly accessory to the agricultural uses and incidental and secondary to the agricultural uses on site; 2) the unit is located on the same parcel as the primary residence; 3) the unit is located so as to minimize interference with agricultural operations and conversion of the most productive agricultural lands on the property; 4) the unit is located to minimize impacts on the viewshed; 5) the units complies with all health and safety codes to ensure protection for farmworkers;  6) a deed restriction has been recorded stating that the second or third unit shall remain accessory to the agricultural use on site; and 7) all essential services can be provided to support the second unit without resulting in a significant environmental impact. Such second and third units shall not be separated from the parcel on which they have been constructed by a land division, and shall not be used for other than agricultural support purposes.
c.	In Rural Lands that are not Qualified Rural Lands, and that have a minimum parcel size of 2_ acres, and on an existing legal lot of record between 2_ and 160 acres in size, a single secondary unit consisting of a guesthouse, a caretaker unit, or a senior citizen unit  may be allowed as a conditional use, providing that all the following findings are made: 1) the unit is on the same parcel as the primary residence; 2) the unit meets all requirements for the type of second unit proposed; 3) all essential services can be provided to support the second unit without resulting in a significant environmental impact, including, but not limited to wastewater, water and parking; 4) the unit is sized and sited so as not to result in a significant visual impact; 5) the unit is clearly subordinate to the primary residence; and 6) there is no existing secondary unit on the parcel.  Such secondary units shall not be separated from the parcel on which they have been constructed by a land division. Secondary units already existing on the date that this General Plan policy is adopted, even if in excess of the number permitted under this policy, are hereby determined to be conforming.

Housing – Policy #11
“Mixed Use” Developments To Increase Housing Opportunities – New commercial and professional office developments shall incorporate residential housing opportunities on site in a mixed use complex wherever feasible. Existing commercial and professional office developments shall be encouraged to redevelop and reconfigure uses to incorporate new residential housing opportunities. Notwithstanding this policy, the approving authority may make a finding, with respect to any specific proposed new commercial or professional office development, that it would be infeasible or inappropriate to require on site residential housing, because of the unsuitability of the area or the development for residential use; in that case, the approving authority may require equivalent residential housing to be constructed at an offsite location, or may impose an appropriate in-lieu fee.

Housing – Policy #12
New Jobs And New Housing Go Together – When newly constructed professional office, industrial, or commercial facilities creates 50 or more new jobs, the employers utilizing these new facilities shall be required to help provide, directly or indirectly, new, permanently affordable living quarters, sufficient to help meet the housing demand generated by the new jobs.

Housing – Policy #13
First Right To Rent or Purchase – Monterey County shall establish, maintain, and either directly administer or cause to be administered a list of persons who live in or who work in Monterey County, and who may wish to rent or purchase new housing to be constructed in the County. The County shall give written notice to persons on this list who may be eligible for such housing whenever a new housing development of five or more units is proposed, and is set for public hearing.

When residential housing developments are approved within Monterey County, it shall be a condition of approval that the new residential units constructed shall first be offered for rental or sale to individuals who currently live in or work in Monterey County, and who have indicated their interest in renting or purchasing new housing constructed in the community by having their names placed upon the list maintained by the County for that purpose.

Housing – Policy #14
New Housing Directed to Community Areas – All new urban development in the unincorporated portions of Monterey County shall be directed to the Community Areas of Pajaro, Castroville, Boronda, Chualar and Fort Ord.

Housing – Policy #15
Intensification of Developed Areas – The Community Areas of Pajaro, Boronda, Castroville, Chualar and Fort Ord shall be developed to their capacity through redevelopment and the conversion of low density and low intensity areas to higher residential densities, mixed-use areas or high quality employment centers providing jobs for the Community Area. The intensification of these existing Community Areas, and the provision of necessary supporting infrastructure, will be accomplished in connection with the adoption of Redevelopment and Community Area Plans for each area.

Housing – Policy #16
Rehabilitation Assistance within Unincorporated Areas – Whenever possible, existing housing stock shall be preserved through rehabilitation, with special emphasis on existing affordable housing stock and historic structures. The County shall prioritize housing rehabilitation efforts in Community Areas where housing stock is most in need of rehabilitation, and shall assist very low and low-income homeowners and owners of rental property that provide affordable housing in maintaining and repairing their housing units.

Housing – Policy #17
Replacement Housing – The County shall identify severely deteriorated housing units throughout the County, and shall identify methods to encourage construction of new units while addressing the needs of displaced residents.

Housing – Policy #18
Neighborhood Compatibility and Historic Character – Within the unincorporated Community Areas, the County shall work with the existing property owners, residents and businesses to develop Redevelopment Plans that integrate new housing into the style of existing neighborhoods.

Housing – Policy #19
Energy Efficiency and Building Standards – The County shall promote energy efficiency through the use of energy conservation measures and Green Building Standards in all new and existing housing units.

Housing – Policy #20
Major Employment Center Job-Based Housing Demand – The County will make all reasonable efforts to achieve balanced housing production, based upon the housing required by the workforce in each region of the County.  Residential areas will be designated in Community Areas that will accommodate the housing units required for jobs located within each of the Greater Monterey, Greater Salinas, and Central Salinas Valley areas.

Housing – Policy #21
Housing Phased with Infrastructure and Jobs – The provision of all essential public services and facilities shall be prior to or concurrent with the development of new housing.

Housing – Policy #22
Development To Be Directed to Community Areas -Except for residential development on existing legal lots of record, residential growth in the unincorporated portions of Monterey County shall be located within designated Community Areas. Redevelopment and Community Area Plans shall be completed for the areas of Pajaro, Castroville, Boronda, Chualar and Fort Ord, and shall emphasize the construction of residential housing, particularly housing affordable to those persons with very low, low, or moderate incomes.

Housing – Policy #23
Community Plans to Improve Existing Residential Areas – Redevelopment and Community Plans shall consider the needs of the whole community, including existing housing areas and the economic condition of residents within the community. Plans must address existing housing substandard conditions, infrastructure deficiencies, rehabilitation needs, and the reuse of underutilized parcels.

Housing – Policy #24
New Housing Within Community Areas – Within Community Areas, housing locations and the type of housing must be mixed so as to achieve balanced socio-economic communities. New housing units within existing Community Areas must approximate a character and style consistent with existing residential areas and achieve a mixture of unit price levels and diversity of housing units.

Housing – Policy #25
Community Area Development Standards – Development within Community Areas shall permit medium to high residential density housing, mixed-use development, accessory dwelling units and other innovative housing types, pursuant to the design criteria for Community Areas. In these Community Areas, the County shall evaluate and, where appropriate, modify the existing parking requirements, building setback and height limitations, mix of commercial and residential space, and minimum and maximum density standards so as to promote the development of affordable housing.

Housing – Policy #26

Design Housing To Meet Community Needs – Every new residential development of thirty or more units, when constructed at either Medium or High Density, shall incorporate all of the following design features:

• On site recreational facilities, appropriately sized to serve the needs of the residents of the development.
  
  
• Except for developments exclusively designed for residents who will be fifty-five years of age or older, on site childcare facilities, or the provision within the development of one or more units specifically designed to accommodate family day care, including necessary outdoor space, and appropriately sized to serve the needs of the residents of the development.
  
  
• Indoor common space, including simple kitchen and restroom facilities, to accommodate educational, social service, and similar programs, and appropriately sized to serve the needs of the residents of the development.

Housing – Policy #27
Public Participation – Redevelopment and Community Area Plans shall be developed utilizing a public outreach process that provides significant opportunities for community review and participation throughout the planning, drafting and implementation phases. Where necessary to include the entirety of the community, Spanish translation at outreach meetings and written materials in Spanish shall be provided.

Housing – Policy #28
Promotion of Development in Community Areas – The County shall promote the development of Community Areas that have been identified as suitable for residential development. This shall include assisting developers with preparation of designs that integrate housing into existing neighborhoods, providing examples of housing prototypes and sponsoring housing fairs.

Housing – Policy #29
Monitoring of Community Area Plans – Community Area and associated Redevelopment Plans shall be monitored to insure that design criteria are complied with and that affordable unit counts are achieved. Inventories of vacant land within the unincorporated communities will be updated in connection with the five year annual review of the General Plan, and may be updated more frequently. The periodic review of Community Area Plans required by this policy will assess the need for additional areas for residential development.

Housing – Policy #30
Housing Affordability and Diversity – The County shall strongly encourage housing opportunities in designated Community Areas that will provide for a diversification of housing stock for all income levels, and for the development of housing that meets the special needs of Monterey County households including, housing for senior and disabled households, homeless and farm workers. Community Area Plans must encourage a range of housing types, prices and sizes to meet the varied needs of Monterey County households.

Housing – Policy #31
Diversification of Affordability within Community Areas – New housing units shall incorporate density standards and housing prototypes that will insure that each area has a mixture of housing prices consistent with Land Use policies.

Housing – Policy #32
Homeless – The County recognizes the housing needs of those who are unable to participate in market housing, and shall make funding and technical assistance available to support the efforts of local non-profit agencies that provide direct housing assistance to homeless households, including programs such as Emergency Shelters, Eviction Prevention, Rental Assistance, Transitional Housing, Group Homes, and Permanent Affordable Housing.

Housing – Policy #33
Farmworker Housing – The County shall permit farm worker housing as specified in state law, and unless state law provides otherwise, farm worker housing may be allowed on Agricultural Lands and Qualified  Rural Lands, on an existing legal lot of record, as a conditional use if the following findings are made: 1) the housing will support agricultural uses on-site; 2) the housing is located to minimize interference with agricultural use of the property and the conversion of commercially productive agricultural lands; 3) the housing is located to minimize impacts on the viewshed and is not in an SEA; 4) the housing complies with all health and safety codes to ensure protection for farmworkers; 5) the housing is permanently restricted to farm worker housing; 6) a deed restriction has been recorded stating that the units shall remain accessory to the agricultural use on site; and 7) all essential services can be provided to support the housing without resulting in a significant unavoidable environmental impact. Such housing units shall not be separated from the parcel on which they have been constructed by a land division, and shall not be used for other than agricultural support purposes.

In addition, the redevelopment, reconstruction, and expansion of existing farm worker housing and farm labor camps within the existing development footprint may be allowed as a conditional use where the following findings are made: 1) no additional farmland will be converted from agricultural use; 2) all essential services can be provided without resulting in a significant unavoidable environmental impact; 3) the housing complies with all health and safety codes to ensure protection of farmworkers; and 4) the housing is permanently restricted to farm worker housing.

Housing – Policy #34
Workforce Housing – The County shall encourage the development of housing that is affordable to workforce households; that is, households employed in the labor market who can not afford market rate housing.

Housing – Policy #35
Housing Trust Fund – The County shall work with other jurisdictions to implement a Housing Trust Fund to assist in the development of workforce housing.

Housing – Policy #36
Employer Assistance – Within Community Areas the County shall seek assistance from employers and housing partners in order to encourage the production of housing units on employer owned sites or areas adjacent to such sites. The County also shall coordinate transportation alternatives (e.g. van pools) from housing to job sites.

Housing – Policy #37
Workforce Housing Program – The County shall develop a Developer Housing Incentives Program with incentives for developers who provide 25% affordable units through the Inclusionary Program and 20% additional units for workforce and moderate-income households. Examples of incentives are:

• Fee reductions or waivers
• Expedited processing times
• Modified developer standards
• Density bonuses
• Staff assistance in permit processing
• Financial Assistance

Housing – Policy #38
Regional Allocation – The County shall ensure that there is sufficient developable land at appropriate densities with adequate infrastructure to accommodate 2,511 new units within the unincorporated portion of Monterey County during the period from 2002 – 2008, and to meet state requirements to provide housing units for very low, low, and moderate income persons.

Housing – Policy #39
On-going Tracking of Production – The County shall monitor the production of housing units to assure the effectiveness of plans in providing affordable housing opportunities for all segments of the County’s current and projected population.

Housing – Policy #40
Housing in Cities – The County shall work with the cities to develop growth strategies that provide incentives for the development of a range of housing types for all segments of the population in the cities.

Housing – Policy #41
Future Allocations – The County shall encourage future regional fair share allocation processes to encourage the efficiencies produced by directing new housing into existing cities.

Housing – Policy #42
Credit for Fair Share – The County will work with the cities and the Department of Housing and Community Development in order to fairly credit to the cities and the County with any new housing development in the Spheres of Influence developed as a result of annexation by the cities.

Housing – Policy #43
Fair Housing and Equal Opportunity – The County will promote and enforce fair housing and equal opportunity laws throughout the County.

Housing – Policy #44
Housing Unit Allocation System – Beginning in January 2006, Monterey County shall establish an annual “housing unit allocation” for the unincorporated portions of Monterey County, based on new jobs created in the unincorporated portions of Monterey County during the previous year, and taking account of the housing needs of retirees, students, the unemployed, and persons with special housing needs. This housing unit allocation shall be based on AMBAG job data. Each year, the housing unit allocation shall allocate the number of new housing units necessary to provide housing for the workers in new jobs created in the unincorporated portions of Monterey County during the previous year, taking account of the housing needs of retirees, students, the unemployed, and persons with special housing needs, and shall not exceed that number. The housing unit allocation shall be divided into segments specifically designated for very low income, low income, moderate income, workforce, and market rate housing, according to the income level of the jobs created in the unincorporated portions of Monterey County during the previous year.

Any person wishing to build one or more residential housing units in the unincorporated portions of Monterey County shall be required to obtain a housing unit allocation for each such unit, prior to obtaining a building permit. Housing unit allocations shall be made available for residential housing units created in the very low, low, and moderate income segments only for housing units restricted to remain available to persons in that income category upon each subsequent sale and resale of the unit. The County may make the annual housing unit allocation available on a “first come first served” basis, or on the basis of a competitive system established by the Board of Supervisors. Any unused housing allocation, in any segment, may be carried forward from year to year.

To promote the construction of housing affordable to current residents and workers of Monterey County, projects that meet the following requirements (“exempt projects”) will not be required to obtain a housing unit allocation, prior to obtaining a building permit  However, all housing units constructed within exempt projects for persons in the very low, low, median, and moderate income levels shall be restricted to remain available to persons in the same income category upon each subsequent sale and resale of the unit, subject to the provisions of Housing Policy #5 on “Equity Sharing.” The following projects are “exempt projects”:

• Single family homes on legal lots of record.
  
  
• Farm worker housing projects constructed consistent with state law, and specifically including any redevelopment, renovation, and improvement of existing Farm Labor camps, as long as such redevelopment, renovation, and improvement remains within the physical boundaries of the existing site.
  
  
• Projects under ten acres in size which provide a minimum of 10% very low, 20% at median (not more than 100% AMI), 20% moderate (100-120% AMI) and no more than 20% Workforce I and 10% Workforce II housing, and in which the remaining 20% of units are either moderate or below moderate.
  
  
• Projects over ten (10) acres in size which provide a mix of rental and for-sale housing, and which provide a minimum of 20% very low, 10% low (defined as not more than 60% AMI), 15% median (not more than 100% AMI), 15% moderate, and 40% Workforce  housing, with not more than 25% of the total units in Workforce II housing.

All exempt projects except single family homes on legal lots of record and farm worker housing projects constructed consistent with state law must also:

• Be located within a Community Area identified in the General Plan.
  
  
• Provide one or more of the following amenities, open to public use: public open space or recreation space, a community center, a community garden, day care facilities, after school centers, or a senior center.
  
  
• Provide adequate public services and facilities to serve the project including availability of public water and sewer.
  
  
• Be of demonstrably high quality design.

Housing – Policy #45
Redevelopment and Community Area Plan Requirements – Redevelopment Plans shall be completed for Pajaro, Castroville, Boronda, Chualar and Fort Ord prior to the construction of any non-exempt housing development in those Community Areas. Exempt projects may be approved in these areas prior to completion of Redevelopment and Community Area Plans. Redevelopment and Community Area Plans shall comply with the policies contained in this General Plan.