Downtown Specific Plan + EIR - City of Watsonville - Watsonville City

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Downtown Specific Plan + EIR - City of Watsonville - Watsonville City
City of Watsonville

Downtown Specific Plan + EIR
Advisory Meeting #6 | February 10, 2022

This meeting is being recorded | Esta reunión está siendo grabada

                                     RAIMI + ASSOCIATES | SARGENT TOWN PLANNING | EPS | RINCON | NELSON/NYGAARD | KEITH HIGGINS | BKF
                                                                                                   Downtown Watsonville Specific Plan   |1
Downtown Specific Plan + EIR - City of Watsonville - Watsonville City
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                                                                                    Downtown Watsonville Specific Plan   |2
Downtown Specific Plan + EIR - City of Watsonville - Watsonville City
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                               Downtown Watsonville Specific Plan   |3
Downtown Specific Plan + EIR - City of Watsonville - Watsonville City
Zoom – What You Need To Know

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                                                Downtown Watsonville Specific Plan   |4
Downtown Specific Plan + EIR - City of Watsonville - Watsonville City
Welcome and Introductions

                            Downtown Watsonville Specific Plan   |5
Downtown Specific Plan + EIR - City of Watsonville - Watsonville City
Advisory Committee
 Jane Barr                           Carmen Herrera Mansur
 Eduardo Cervantes                   Sal Orozco
 Gina Cole                           Ben Ow
 Maria Elena De la Garza             William Ow
 Francisco Estrada, Councilmember    Manuel Rodriguez
 Aurelio Gonzalez                    Shaz Roth
 Neva Hansen                         Tony Scurich
 Felipe Hernandez                    Brian Spector
 Sylvia Luna                         Jenni Veitch-Olson

                                                         Downtown Watsonville Specific Plan   |6
Downtown Specific Plan + EIR - City of Watsonville - Watsonville City
Project Team Introductions
City Staff
 Suzi Merriam, Community Development Director
 Justin Meek, Principal Planner
 Carlos Landaverry, Housing Manager
 Sarah Wikle, Associate Planner
 Elena Ortiz, Administrative Analyst
 Angelica Jauregui, Interpreter

Consultant Team
 Simran Malhotra, Principal, Raimi + Associates
 Jasmine Williams, Senior Planner, Raimi + Associates
 Benjamin Sigman, Principal, EPS

                                                         Downtown Watsonville Specific Plan   |7
Downtown Specific Plan + EIR - City of Watsonville - Watsonville City
Advisory Committee Meetings
1.    Introduction/project overview
2.    Existing conditions, issues, opportunities and visioning
3.    Plan framework (streets, public spaces, land use)
4.    Refined plan framework and Opportunity sites
5.    Downtown design character/Development code
6.    Housing
7.    Mobility and parking
8.    Economic development
9.    Specific Plan review
10.   Revised Specific Plan review

                                                                 Downtown Watsonville Specific Plan   |8
Downtown Specific Plan + EIR - City of Watsonville - Watsonville City
Vision Themes and Guiding Principles

      Vitality     Dignity        Equity     Preservation        Safety          Innovation

     Preserve key elements that make Downtown unique
     Establish a varied choice of uses and experiences for our diverse community
     Create housing opportunities for all
     Promote local economic prosperity
     Create a vibrant, safe, and active Downtown
     Foster a healthy, inclusive, and culturally connected community where all can thrive
     Re-imagine and innovate mobility options and connections
     Incorporate sustainable design elements to improve community health

                                                                       Downtown Watsonville Specific Plan   |9
Downtown Specific Plan + EIR - City of Watsonville - Watsonville City
Advisory Committee Ground Rules
 Participate in good faith
 Respect your fellow members even if you don’t agree
 Allow space for differences of opinion
 Operate in the spirit of consensus
 Be a good listener
    o Share the floor

    o Do not interrupt one-another

 Ask questions for clarification and mutual understanding

                                                             Downtown Watsonville Specific Plan   | 10
Agenda
Welcome! Tonight, we will…
• Updates on Progress to Date
• Housing in Watsonville Today
• City Housing Programs
• Recent State Laws
• Best Practices
• Policy Recommendations
• Housing Policy and Anti-
  Displacement Discussion
• Public Comment
                                 Downtown Watsonville Specific Plan   | 11
Specific Plan Process Overview

                                 Downtown Watsonville Specific Plan   | 12
Specific Plan Process Overview
                                                              We are here

                          Guiding
  Existing                                                       Plan
                        Principles +                                                           Review +
Conditions +                                 Alternatives    Development
                          Overall                                                              Adoption
 Visioning                                                      + EIR
                        Framework

    Fall 2019 -          Fall 2020 –           Spring –        Fall 2021 –                       Summer –
   Summer 2020           Winter 2021         Summer 2021        Summer                           Fall 2022
                                                                  2022
2 AC Meetings           1 AC Meeting         1 AC Meeting     4 AC Meetings                    2 AC Meetings

Introduction/project    Guiding Principles   Refined plan     Design character/                Review of Specific
overview                                     framework and    Development code                 Plan (2)
                        Plan framework       Opportunity
Existing conditions,    (streets, public     sites            Housing
issues, opportunities   spaces, land use)
                                                              Mobility & Parking
and visioning
                                                              Economic Development

                                                                             Downtown Watsonville Specific Plan   | 13
Community Engagement Efforts to Date
 Stakeholder Interviews & Focus Groups
 Advisory Committee Meetings (5) and Interviews
 Community-Wide Workshops (2)
 Online Engagement
   o Draft Themes and Guiding Principles Feedback (100 comments)

 Community-Wide Surveys (2)
   o Strengths, Issues, and Opportunities Survey (666 respondents)

   o Public Spaces, Character Areas, Streetscape & Bike Network (257
     respondents)
 City Council Updates (2)

                                                             Downtown Watsonville Specific Plan   | 14
Recent and Ongoing Work Efforts
 Big Ideas for Downtown
 Character areas
    o Refinement of boundaries

    o Placemaking priorities

 Opportunity sites
    o Conceptual plans

 Public realm design refinements
    o Street network

    o Bicycle network

    o Discussions with Caltrans

 Caltrans Updates
   o Potential Funding for Road Diet on
     Main Street

                                          Downtown Watsonville Specific Plan   | 15
Housing In Watsonville
W h e re W e A re, W h a t W e H e a rd , C ity -w id e P ro g ra m s a n d P o lic ie s

                                                                                           Downtown Watsonville Specific Plan   | 16
Where We Are

               Downtown Watsonville Specific Plan   | 17
Watsonville: Where We Are
 Existing Land Uses
  Mix of retail, commercial, civic,
   religious, industrial and residential
   uses

                          Area in   Percent
Land Use Category          Acres    of Total
Civic/Institutional        28.8      21%
Commercial                 45.8      33%
Industrial                 17.9      13%
Mixed Use                   6.9       5%
Multifamily Residential    13.6      10%
Parking                     6.3       4%
Parks and Open Space        2.4       2%
Single-Family
Residential                14.8      11%
Vacant/Other                3.4       2%
Grand Total                140       100%

                                               Downtown Watsonville Specific Plan   | 18
Watsonville: Where We Are
Population Trends
Geography                     2010         2020                   2010-2020                    2010-2020
                                                                   Change                      Change %
City of Watsonville          51,204       52,590                     1,386                        2.71%
Santa Cruz County            262,382      270,861                    8,479                        3.23%
California Statewide        37,253,956   39,538,223                2,284,267                      6.13%
                                             Sources: Social Explorer Tables (SE), CENSUS 2020 - Preliminary Data

Population Trend – City of Watsonville
            54,500
            52,500
            50,500
  Persons

            48,500
            46,500
            44,500
            42,500
                     2000        2005         2010                       2015                          2020
                                                                   Sources: California Department of Finance E-5

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Watsonville: Where We Are
Housing Need vs. Housing Production in Watsonville
                2,500

                2,000
Housing Units

                1,500

                1,000

                 500

                   0
                        3rd Cycle                 4th Cycle                    5th Cycle*                  6th Cycle**
                         '02-'07                   '08-'13                       '15-'23                     '23-'31
                                                                                                                *Building permits through 2020
                                            RHNA Allocation    Permitting Over Same Period                      **Preliminary as of January 2022

Sources: Sources: CA Dept. of Housing and Community Development; U.S. Dept. of Housing and Urban Development; City of Watsonville; & EPS
                                                                                                      Downtown Watsonville Specific Plan           | 20
Watsonville: Where We Are
Summary of Multifamily Rental Trends
               Citywide Multifamily Inventory                          Multifamily Rents
3,500                                                           ($ Per Square Foot Per Month)
                                                $2.00
3,400
        + 419 Units                                     + $0.57 PSF/Mo.
3,300
        +14%                                    $1.90   +42% (1.6% per year vs. inflation of 2.3%)
        2000-2022                                       2000-2022
                                                $1.80
3,200

                                                $1.70
3,100

                                                $1.60
3,000

2,900                                           $1.50

2,800                                           $1.40

2,700                                           $1.30

                                                                                    Downtown Watsonville Specific Plan   | 21
Watsonville: Where We Are
Downtown Housing – Multifamily vs. Single Family Housing Stock

                          Downtown               Citywide             County of Santa Cruz

 Multifamily Units           60%                   33%                              23%

 Single Family Units         40%                   67%                              77%

Total Housing Units          100%                 100%                            100%
                                                         Sources: California Department of Finance E-5

                                                                           Downtown Watsonville Specific Plan   | 22
Watsonville: Where We Are
Watsonville Rental Housing Project Profile (The Terrace at 445 Main Street)

                                                                                                  54 (107 DU/AC)

                                                                          (18) Studios, (18) 1-bdrm., (18) 2-bdrm.

                                                                                                 667 Square Feet

               Sources: CoStar Group, Economic & Planning Systems, Inc.

                                                                                                            Downtown Watsonville Specific Plan   | 23
Watsonville: Where We Are
Affordable Housing In Watsonville   Residential Units: In The Works

                                      221 Airport                                       Pippin II
                                      48 units                                          80 units

                                          547 Airport                   1482 Freedom
                                          21 units                      53 units
                                                                                                                Marin St.
                                                                                                                Townhomes
                                                                                                                16 units

                                                                               Miles Lane
                                                                               72 units

                                                                                                                     558 Main St.
                                                    Hillcrest Estates                                                50 units

Affordable Housing Counts                           144 units
                                                                                             Sunshine Gardens
                                                                                             87 units
571 Units
                                                                                       Downtown Watsonville Specific Plan           | 24
What We Heard

            Downtown Watsonville Specific Plan   | 25
What We Heard From The Community
Housing, Development & Redevelopment

    A lack of housing was ranked as the #4 most important issue.
    Housing should aim to be affordable and geared toward diverse income groups
     (Low income, work force, senior, etc.).
    There are plenty of market-rate buildings downtown, however the construction of more
     market rate and affordable housing options are needed to attract diversity and business
     downtown
    New development should be mixed-use with active ground floor uses (e.g., retail &
     restaurants), and housing or office above
    Reduced parking requirements could help create more housing
    Avoid having Watsonville become a bedroom community
    We need culturally diverse plans to welcome other families and entice young families to stay
     in Watsonville

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What We Heard From The Community
Gentrification & Displacement

    Gentrification was highlighted by many community respondents as concern
    Respondents would like to keep Watsonville unique and local
    Watsonville’s historic and cultural identities are important to the community and
     should be maintained (e.g., architecture, people, and cultural connection)
    Avoid touching the homes of current residents to avoid displacement
    The focus of development should first and foremost be on businesses and unused
     buildings
    Avoid dividing the community by attracting “hipsters” that could contribute to
     gentrification, displacement and raising prices

                                                                             Downtown Watsonville Specific Plan   | 27
Current City-
Wide Policies
and Programs

                 Downtown Watsonville Specific Plan   | 28
Watsonville: City-wide Policies & Programs
Inclusionary Housing Ordinance

 Requires a percentage of new homes and            First Ordinance Adopted in 1991
  those where the developer and/or buyer            From 1990-2000 nothing was built
  received a City subsidy be affordable for very
  low to above moderate-income households.          Required 25% Inclusionary based on County
                                                     Median Income
                                                    Most affordable units were produced by non-
 These homes are part of the City’s Affordable      profit developers
  Housing Program and may also be referred to
  as inclusionary or deed restricted units.         Current Ordinance Adopted in 2001

                                                                            Downtown Watsonville Specific Plan   | 29
Watsonville: City-wide Policies & Programs
Inclusionary Housing Ordinance
 Current Ordinance Adopted in 2001
     Set standards for rental & home
      ownership (required percentage)
     Set Watsonville Income Limits
     Set In-Lieu Fees
     Incentives

 Prospective Buyers
     Unit must be owned and occupied as
      the buyer's principal place of
      residence
     Unit cannot be sold for more than
      the maximum resale limit
     Unit must be sold to an income
      eligible buyer

                                             Downtown Watsonville Specific Plan   | 30
Watsonville: City-wide Policies & Programs
Inclusionary Housing Ordinance
For Sale Unit Requirements           Rental Unit Requirements
For Sale Developments                Rental Developments
Projects with 7-50 new units:        Projects with 7 or more new units:
         5% Above Moderate                    5% Median
         5% Moderate                          5% Low
                                              5% Very Low
         5% Median
                                              5% Section 8
15% Total Requirement
                                     20% Total Requirement
For Sale Developments
Projects with more than 50 units:
         10% Above Moderate
         5% Moderate
         5% Median
20% Total Requirement
                                                Downtown Watsonville Specific Plan   | 31
Watsonville: City-wide Policies & Programs
In Lieu Fees                                  Incentives for 100% Affordable Projects
Projects with 6 or fewer units may:            Priority Processing
 Pay a Fee                                    Direct Financial Assistance
     Single Family = $13,970/unit
     Multi Family = $6,986/unit
    Or
 Provide an Affordable Unit
     For Sale Development - Above Moderate
     Rental Development - Median

                                                                        Downtown Watsonville Specific Plan   | 32
Watsonville: City-wide Policies & Programs
First Time Home Buyer Program (FTHB)

 The City of Watsonville offers a First Time Home Buyer Program
 (FTHB) to help low-income homebuyers buy a home.
 Eligibility Criteria
  No ownership in the last three years
  Meet annual gross income
  Provide 3% of the home purchase price
  Meet Housing debt ratio (30-45%- front end) & (50% - back end)
  Meet property specific requirements
  Complete city-approved homebuyer class

                                                                    Downtown Watsonville Specific Plan   | 33
Watsonville: City-wide Policies & Programs
Downpayment Assistance Program

 The Downpayment Assistance Program (DAP) is intended to help low to above moderate-income
 households purchase their first home. Operated in the same manner as the City’s First Time
 Homebuyer Program but may only be used to purchase a deed restricted affordable unit.

 Program Eligibility                                Home Eligibility
  No ownership in the last three years              Must be located within the City limits
  households annual projected gross income          Must be a deed restricted affordable unit
   does not exceed the income limits based
                                                     Must be on a permanent foundation
   on household size for the income category
                                                     Must be vacant for a minimum of three
  Provide 3% of the home purchase price
                                                      months or be owner-occupied prior to offer
                                                      to purchase
                                                     Must be able to pass a housing and lead-
                                                      based paint inspection

                                                                           Downtown Watsonville Specific Plan   | 34
Watsonville: City-wide Policies & Programs
Owner-Occupied and Rental Housing Rehabilitation

 The City's Housing Rehabilitation Program offers low-interest loans to eligible low-income
 homeowners for rehabilitation of their homes. The program also helps homeowners who rent to
 low-income households pay for necessary repairs.

 The Program also helps borrowers to:               Available Improvements & Repairs
  Receive financial assistance from the City’s     • Code violations
   Community Development Block Grant Funds          • Disabled access needs
  Determine the work that needs to be
                                                    • Failing building systems (i.e. roofs,
   performed and cost
                                                      plumbing, electrical, etc.) or systems where
  Prepare plans and construction contracts           failure appears imminent
  Obtain permits; Locate a contractor              • Health and safety deficiencies
  Provide temporary relocation services for        • Structural deficiencies
   tenants, if necessary
                                                    • Other repairs and/or improvements such as
  Oversee the construction process                   painting, landscaping, etc. (Case-by-case)

                                                                            Downtown Watsonville Specific Plan   | 35
Watsonville: City-wide Policies & Programs
Emergency Rental Assistance Program

 The NEW Emergency Rental Assistance Program (ERAP) funded by the Community
 Development Block Grant COVID-19 Program (CDBG-CV) will provide direct assistance to
 eligible low- and moderate-income households experiencing financial hardships due to the
 COVID-19 economic crisis.

 Eligibility (One or more individuals):               Distribution
  Low- or moderate-income resident of                 The emergency housing assistance will be
   Watsonville.                                         paid directly to the landlord on behalf of
  Rental housing unit must be located within           the individual or family.
   the Watsonville city limits.
  Experience a loss or reduction of income
   due to COVID-19.

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Questions?

             Downtown Watsonville Specific Plan   | 37
New State
 Housing
Legislation

              Downtown Watsonville Specific Plan   | 38
Recent State Laws Encouraging Housing Production
State Density Bonus Law (SDBL)                   Housing Crisis Act (HCA – SB 330)
 Requires an agency to grant a density bonus     Passed in 2019, SB 330 modifies the Permit
  and/or a certain number of concessions or        Streamlining Act (PSA) and Housing
  incentives to developers who agree to            Accountability Act (HAA) to include a new
  construct developments that provide
  affordable housing.                              Preliminary Application and expedited timeline
Recent SDBL Amendments (AB 2345)                  Downzoning is not allowed below local rules in
                                                   effect as of January 1, 2018 unless upzoning is
 Revises several SDBL provisions to provide       occurring at the same time
  additional entitlement benefits for projects
  that include qualifying affordable housing:     Housing Moratoriums are not allowed by
    o Increases the maximum density bonus, to      affected cities – census designated urbanized
      up to 50%                                    area – unless “Imminent Health & Safety
    o Lowers the threshold required to qualify     Threat” and HCD approval
      for incentives/concessions                  Unobjective Design Standards are not allowed
    o Decreases the maximum ratio of required
                                                   on or after January 1, 2020
      vehicular parking

                                                                           Downtown Watsonville Specific Plan   | 39
Recent State Laws Encouraging Housing Production
Objective Design Standards (HCA – SB 330)           Housing Accountability Act (HAA)
 Takes away the ability of cities to use            Applies to all multi-family housing
  discretionary review to deny projects or lower      developments and certain mixed-use projects,
  densities unless a specific finding can be made     not just affordable projects
 Requires objective standards - standards that      Provides that a local agency may not reject or
  involve "no personal or subjective judgment by      make infeasible housing developments without
  a public official and uniformly verifiable by       making certain findings
  reference to an external and uniform                 o   If a housing project complies with all
  benchmark or criterion available and                     "objective" general plan, zoning, and
  knowable by both the development                         subdivision standards, it may only be denied or
  applicant… and the public official prior to              have its density reduced if a city or county can
  submittal."                                              find that the project would have a "specific
                                                           adverse impact" on public health and safety

                                                                                 Downtown Watsonville Specific Plan   | 40
Recent State Laws Accelerating Housing Production
Affordable Housing Streamlining (SB 35)                       Duplexes/Lot Splits in Single Family Zones
 Streamlines the approval process for certain                (SB 9)
  qualifying infill developments that provide                  Allows lot splits and/or the development of
  affordable housing and pay prevailing wages in                duplexes on single-family-zoned parcels to be
  local communities that have failed to meet                    approved ministerially (i.e., without
  their regional housing needs.                                 discretionary approval or hearings) if certain
                                                                requirements are met.
 Allows a ministerial permit instead of
  discretionary review if a project/developer                  Includes measures to prevent displacement:
                                                                      Lot splits cannot require the demolition or
  meets the following:                                            o

                                                                      alteration of affordable or rent-controlled units.
    o   The site is suitable for development and adjoins
        urban uses                                                o   A lot split cannot result in the demolition or
    o   The project includes affordability requirements               alteration of housing that has been occupied by a
        and a determined percentage of affordable units               tenant in the last three years
    o   The project is consistent with local zoning and           o   Owner-occupancy of one of the housing units for
        design review requirements
                                                                      a minimum of three years
    o   The construction workers for the development
        will be paid with at least general prevailing wages       o   No vacation rentals

                                                                                             Downtown Watsonville Specific Plan   | 41
Recent State Laws Accelerating Housing Production
SB 478                                               Extension of HCA (SB 8)
 Prohibits local governments from imposing           Extends the provisions of the Housing Crisis
  certain floor area ratio (FAR) standards on          Act of 2019 through 2030 (from 2025)
  housing projects of three to 10 units               Streamlines housing project approval by
                                                       restricting local governments’ ability to
                                                       downzone and limits fee increases on housing
SB 791
                                                       applications
 Establishes the California Surplus Land Unit, a
  task force to identify surplus or empty lots and   Increased Density in Transit-Rich Areas (SB
  facilitate new housing developments                10)
                                                      Allows but does not require jurisdictions to
                                                       develop and adopt an ordinance that increases
                                                       the density of parcels to up to 10 residential
                                                       units per parcel without CEQA

                                                                               Downtown Watsonville Specific Plan   | 42
Recent State Laws related to Affordable Housing
AB 447                                             AB 1043
 Expands the low-income housing tax credit         Adds a definition of “Deeply Low-Income”
  program to allow more programs to qualify for      households to increase access to affordable
  governmental assistance.                           housing and critical social programs for the
                                                     state’s neediest families
AB 571
 Prohibits affordable housing impact fees,        AB 1095
  including inclusionary zoning fees and in-lieu    Extends the incentives and programs provided
  fees, from being imposed on a housing              under the Affordable Housing and Sustainable
  development’s affordable units.                    Communities Program to both rental and
                                                     owner-occupied units
AB 787
 Creates new incentives for cities to secure      SB 728
  more “workforce housing” or deed-restricted       SB 728 expands existing density bonus grants to
  affordable homes for working families              nonprofits buying or building affordable
                                                     housing

                                                                             Downtown Watsonville Specific Plan   | 43
Recent State Laws related to Anti-Displacement
Housing Crisis Act (HCA – SB 330)                  Tenant Protections (AB 1482)
 Replacement Housing must be provided by           AB 1482 restricts rents from being increased
  developer at a one-to-one ratio for all            more than 5 percent plus inflation annually for
  demolished units and existing or demolished        the next 10 years and requires landlords to
  protected units – lower income households for      demonstrate “just cause” prior to evicting
  past 5 years and those vacated under Ellis Act     tenants of at least one year
  in past 10 years
                                                    Property owners evicting tenants for
 Residents of protected units are also entitled     renovations or condo constructions must
  to State relocation benefits                       provide relocation fee equal to one month’s
                                                     rent
                                                   Tenant Protections (SB 329)
                                                    Prohibits discrimination against tenants paying
                                                     for housing with public assistance, such as
                                                     Section 8 vouchers.

                                                                             Downtown Watsonville Specific Plan   | 44
Recent State Laws related to Housing Elements
AB 725                                            AFFH (AB 1304)
 AB 725 imposes new requirements for city         Amends the requirements set forth in the
  housing element updates that are required to      Planning and Zoning Law to ensure that
  be prepared under the already underway sixth      housing elements are drafted and adopted in a
  cycle of the Regional Housing Needs               manner to affirmatively further fair housing
  Assessment (RHNA) process
                                                   Importantly, the law requires that local
                                                    governments provide an analysis of the
No Net Loss (SB 116/SB 1333)                        relationship of sites identified in the housing
                                                    element’s inventory of land suitable for
 If a project is approved on a housing element     development to the jurisdiction’s duty to
  site with either fewer units or a different       affirmatively further fair housing
  income category, cities must either:
 Make written “no net loss” finding that other
                                                  Rezoning (AB 1398)
  housing element sites are adequate to meet       Provide more onerous conditions on local
  the RHNA for lower-or moderate-income             governments that fail to adopt a housing
  housing; or                                       element within 120 days of the statutory
 Identify and make available within 180 days       deadlines.
  other sites zoned at a density suitable for      Reduces the time period that a local agency
  lower-or moderate-income housing                  must rezone certain sites from three years and
                                                    120 days to one year
                                                                            Downtown Watsonville Specific Plan   | 45
Best Practices
W h a t O th e r C o m m u n itie s A re D o in g &
P o te n tia l Id e a s F o r D o w n to w n

                                                      Downtown Watsonville Specific Plan   | 46
What Other
Communities Are
    Doing

              Downtown Watsonville Specific Plan   | 47
Affordable Housing and Anti-Displacement Policies
Public policy strategies to address affordable housing need and anti-
displacement goals commonly are grouped into four categories:
 Housing Production – development of new housing
 Housing Preservation – reinvestment in existing housing
 Neighborhood Stabilization – tenant protections
 Household Assistance - financial support for renters and owners

                                                            Downtown Watsonville Specific Plan   | 48
Housing Production Examples
 Inclusionary policies and affordable housing fees
 Community benefits programs (e.g., incentive zoning)
 Tax revenue earmarking and new taxes for housing development (e.g.,
  transfer tax, business license tax)
 New bond measures
 Housing trust funds
 Expedited permitting
 Public land dedications for affordable housing

                                                          Downtown Watsonville Specific Plan   | 49
Housing Preservation Examples
 Condominium conversion restrictions
 SRO protections
 Acquisition and rehabilitation of existing housing
 Replacement requirements
 Demolition ordinance

                                                       Downtown Watsonville Specific Plan   | 50
Neighborhood Stabilization Examples
 Rent control
 Tenant protections ordinance / Just cause eviction policy
 Tenant counseling
 Code enforcement

                                                              Downtown Watsonville Specific Plan   | 51
Household Assistance Programs
 Rental assistance
 Relocation assistance during temporary displacement
 Homeowner assistance
 First-time homebuyer programs
 Housing rehabilitation funds

                                                        Downtown Watsonville Specific Plan   | 52
Livermore – Isabel Neighborhood (Adopted)
Housing Production                                 Housing Preservation
 25% affordable housing in the Plan Area           Preservation of existing mobile home parks
    o 20% citywide policy

    o +5% generated through 100% below-
                                                   Neighborhood Stabilization
      market-rate (BMR) projects
                                                    Require supportive services (e.g., childcare,
 Affordable Housing Fund resources for              mobility services) in large housing projects
  acquisition of 100% BMR housing sites
 Affordable housing on public land (BART sites)
                                                   Household Assistance
 City partnerships with affordable housing
  developers, including subsidy funding             Develop anti-displacement strategy to combat
                                                     rising rents with financial assistance
 Funding to convert units from market-rate to
  affordable
 Relaxed development requirements for
  affordable units

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Sacramento – Stockton Blvd Plan (ongoing)
Housing Production (citywide policies)             Neighborhood Stabilization
 Accessory Dwelling Unit ordinance                 Tenant Protection Program (citywide) limits
                                                     annual rent increase and protects against
 Mixed-income housing ordinance for large           unwarranted lease terminations
  projects
                                                    Community Benefit Agreements to fund:
 Housing impact fee                                   o Homebuyer program

 Fee reductions for affordable housing projects       o Home repair program

                                                       o Homelessness prevention program
 Development application streamlining
                                                    Community land trust (non-profit model that
Housing Preservation                                 ensures long-term affordability)
 Subsidies for housing improvements
                                                   Household Assistance
                                                    Financial assistance to low-income first-time
                                                     homebuyers
                                                    Foreclosure assistance and tenant right to
                                                     counsel

                                                                             Downtown Watsonville Specific Plan   | 54
Berkeley – Adeline Corridor (adopted)
Housing Production                                Neighborhood stabilization
 50% BMR target for new housing                   Prioritize current and former area residents
                                                    for new affordable housing units
    o 20% citywide inclusionary requirements
                                                   Implement existing homelessness plans to
    o + additional 100% BMR projects
                                                    increase resources
 Prioritized development of BMR housing on        Expand technical assistance and anti-eviction
  public land, including BART site                  mediation programs
 City resources for housing (bonds proceeds,      Provide education, technical assistance, and
  transfer fee revenue, public land donation)       public information about protecting existing
                                                    affordable housing
 Incentive zoning for on-site affordable units
                                                  Household Assistance
 Promote a range of affordability levels and
  tenant types in new housing                      Increase funding to strengthen the citywide
                                                    housing Retention Program (rental assistance)
 Encourage non-traditional housing for low and    Financial and technical support for
  middle-income residents (e.g., housing            homeowners at risk of foreclosure
  cooperatives, group housing)

                                                                           Downtown Watsonville Specific Plan   | 55
Oakland – Downtown Oakland Specific Plan (ongoing)
Housing Production                                Housing Preservation
 Target up to 25% affordable housing              Strengthen SRO preservation and promote
                                                    rehabilitation
 Prioritize existing funding sources for         Neighborhood Stabilization
  affordable housing production Downtown
                                                   Expand the Condominium Conversion
 Prioritize publicly owned land for affordable     Ordinance to include Downtown
  housing production                               Explore community land trust concept
 Partnerships to co-located affordable housing    Enforce rent adjustment and eviction laws
  and public facilities                            Various commercial protections and assistance
 Develop a process to expedite housing           Household Assistance
  permitting                                       Continue state and local first-time homebuyer
                                                    programs
 Study potential for new funding (fees, taxes)
                                                   Pursue additional funding for expanded renter
 Study potential for a Density bonus program       services and counseling.

                                                                           Downtown Watsonville Specific Plan   | 56
Fresno – Downtown Neighborhoods Plan (adopted)
Housing Production                                 Neighborhood Stabilization
 Intensify existing single-family neighborhoods    Convene a displacement task force that
  with second units and infill development
                                                     explores opportunities for low-income
 Encourage senior housing near transportation,      residents and merchants
  health care, shopping, and public facilities
 Incentives for rehabilitation of existing        Household Assistance
  structures and new construction:
                                                    Create and promote rent-to-buy policies or
    o Fast-track permit processing
                                                     programs for housing
    o Subsidies and partnerships

Housing Preservation                                Support education and outreach on
 Purchase, rehabilitate, and sell homes to          homeownership and home rehabilitation
  qualifying families                                programs
 Target housing rehabilitation of the most
  blighted properties and areas
 Seek funding, potentially including Tax
  Increment Financing

                                                                            Downtown Watsonville Specific Plan   | 57
Potential Policies
for the Downtown
    Watsonville
   Specific Plan

                  Downtown Watsonville Specific Plan   | 58
Affordable Housing and Anti-Displacement Policies
Some policy strategies are commonly implemented at citywide and regional
level while others can work well when tailored for implementation through a
subarea plan:

 Housing Production – plan-level goals for new housing
 Housing Preservation – strategic protection of existing housing

 Neighborhood Stabilization            More typically Implemented at
 Household Assistance                  city and/or regional level

                                                             Downtown Watsonville Specific Plan   | 59
Potential Downtown Area Policies and Programs
Housing Production Policies
Pursue an elevated goal for development of new below-market-rate housing in
the downtown by encouraging 100% affordable housing project development:
   o   Pursue plan-wide affordable through existing inclusionary policy and
       development of all-affordable projects
   o   Encourage 100% below-market-rate housing with City funding and
       collaborative, streamlined project processing
   o   Consider 100% below-market-rate housing on public sites
   o   Provide deferred low interest loans for selected development impact fees for
       100% below-market-rate housing projects

                                                                   Downtown Watsonville Specific Plan   | 60
Potential Downtown Area Policies and Programs
Housing Preservation Policies
Pursue reinvestment in existing affordable housing in the downtown:
   o   Encourage protection of existing affordable housing downtown
       (generally older housing stock)
   o   Partner with non-profits to support acquisition and reinvestment in
       existing affordable housing downtown
Neighborhood Stabilization and Assistance
   o   Continue existing citywide housing programs
   o   Promote existing programs among downtown residents through
       outreach efforts and educational opportunities

                                                              Downtown Watsonville Specific Plan   | 61
Questions?

             Downtown Watsonville Specific Plan   | 62
Discussion

             Downtown Watsonville Specific Plan   | 63
Public
Comments
(2 minutes per speaker)

                          Downtown Watsonville Specific Plan   | 64
City of Watsonville

Downtown Specific Plan + EIR
Advisory Meeting #6 | February 10, 2022

                       RAIMI + ASSOCIATES | SARGENT TOWN PLANNING | EPS | RINCON | NELSON/NYGAARD | KEITH HIGGINS | BKF

                                                                                     Downtown Watsonville Specific Plan   | 65
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