First Phase of Housing Element Implementation Completed

As of the end of 2024, the City implemented the first phase of the Housing Action Plan, including the programs summarized below and ongoing programs.

Programs Completed

In December of 2024, the City Council adopted the following programs resulting in full implementation of these programs:

• 1-B Multi-Family Residential Overlay Amendments

The City has an established Multifamily Residential Overlay District (MFR) Overlay District, set forth in City Code section 38-99.4 et seq. The existing overlay applies to properties along the south side of Garden Road and permits the conversion of existing commercial and office buildings to housing and the development of new housing at densities up to 30 du/ac.

The amendment expands the existing MFR overlay to include portions of the City located in the Pacific/Munras/Cass area (Map 1) as well as the County Courthouse site located at 1200 Aguajito Road (Map 2) and incorporates an increased density of 60 dwelling units per acre (du/ac) in all overlay areas. The amendment further facilitates housing development in these areas by allowing ministerial permitting of residential development when at least 20 percent of the proposed units are affordable to lower-income households in accordance with Government Code section 65583.2(h) and (i). In addition to defining three unique geographical overlay zones, the amendment establishes four distinct subsections of land use and development standards addressing setbacks, height, tree removals, etc.

Map 1. New Multifamily Overlay for Pacific/Munras/Cass Area

Map. 2. New Multifamily Overlay for 1200 Aguajito Road Site

(Ordinance No. 3688 C.S. 1st reading adopted December 3, 2024; 2nd reading adopted December 17, 2024; Effective January 16, 2025)

• 1-C Focused Specific Plan Updates

Focused specific plan amendments to the North Fremont, Downtown, and Lighthouse Specific Plans have been adopted to facilitate development at the projected densities planned for in the adopted housing element. The amendments include:

North Fremont Specific Plan

o Increased residential density from 30 du/ac to 60 du/ac.

o Increased maximum allowed building height from 35 feet to 45 feet in areas.

o Reduced minimum parking requirement from 1.5 spaces per unit to 1 space per unit.

o Allow ministerial permitting of residential development when at least 20 percent of the proposed units are affordable to lower-income households in accordance with Government Code section 65583.2(h) and (i).

Downtown Specific Plan

o Incorporate additional development incentives beyond State density bonus for qualifying projects.

o Increase maximum allowed building height from 4 stories to 5 stories in the Alvarado District.

Lighthouse Specific Plan

o Amend use table to allow 100 percent residential developments including ground floor residential uses.

o Allow parking requirements for residential projects to be met with a municipal shared parking agreement when projects proposing 30 du/acre are located within 500 feet of a City-owned parking lot or structure.

(Resolution No. 24-188 C.S. adopted December 3, 2024)

• 1-L County Courthouse Site

The Monterey County Courthouse site, located at 1200 Aguajito Road (Map 2), is identified on the 6th Cycle housing element sites inventory. However, the existing Single Family (R-1) zoning would not permit the 246 units projected for the property. A zoning map amendment rezoned the site to Medium Density Multifamily (R-3) with the Multifamily Overlay (MF3). Land Use Regulations and Development standards contained within the Multifamily Overlay District apply to the site, ensuring orderly development and allowing a maximum density of 60 du/ac. The amendment will further facilitate housing development in these areas by allowing ministerial permitting of residential development when at least 20 percent of the proposed units are affordable to lower-income households in accordance with Government Code section 65583.2(h) and (i).

(Ordinance No. 3688 C.S. 1st reading adopted December 3, 2024; 2nd reading adopted December 17, 2024; Effective January 16, 2025)

• 2-F Update Density Bonus Ordinance and 3-C Local Density Bonus

The City’s current Density Bonus ordinance set forth in City Code section 38-112.5, was adopted in 2016. Since that time, the State has enacted new laws pertaining to density bonuses. The City amended its Density Bonus ordinance to incorporate the current requirements of State density bonus law. In addition to bringing the City’s Density Bonus ordinance into full compliance with State law, the amendment established additional density bonus and development incentives for qualifying projects under local density bonus provisions. The local development bonus will target projects that consolidate small, adjacent lots and/or develop higher proportions of 2- and 3-bedroom units. Projects that commit to additional Moderate-Income units over and above those units required under the City’s Inclusionary Zoning Program would also qualify. An additional density bonus of up to 10%, along with increases in allowed building height, would be available through the program for qualifying projects as needed to support a higher share of 2- and 3-bedroom units in the Alvarado District downtown and the Pacific / Munras / Cass Multifamily Overlay District.

(Ordinance No. 3689 C.S.1st reading adopted December 3, 2024; 2nd reading adopted December 17, 2024; Effective January 16, 2025)

• 2-A By-Right Zoning Sites from Prior Inventories

Pursuant to Government Code section 65583.2(h) and (i), any non-vacant commercial sites identified on two prior housing element inventories that are also identified to accommodate lower income RHNA units on the 6th Cycle Housing Element shall be allowed ministerial permitting when 20 percent or more of the units are affordable to lower-income households.

The Regional Housing Needs Assessment Overlay District (Table 1) clearly identifies these sites in addition to the requirements of Government Code section 65583.2(h) and (i) to ensure compliance with State law. Qualifying projects will continue to be required to comply with existing zoning regulations and objective design standards.

Table 1 – RHNA Overlay District Sites

(Ordinance No. 3688 C.S. 1st reading approved December 3, 2024; 2nd reading adopted December 17, 2024; Effective January 16, 2025)

Programs Partially Completed

• 2-E Revise Parking Requirements

In September of 2024, the City Council adopted an amendment to the Downtown Specific Plan to eliminate minimum parking requirements for residential land uses.

(Resolution No. 24-154 C.S. adopted September 17, 2024; effective December 1, 2024).

Ongoing Programs Continuously Being Implemented

• 6-A Adequate Sites Available to Meet RHNA

The City is required to annually review its Available Land Inventory to ensure Monterey can accommodate its share of the Regional Housing Needs Allocation (RHNA) throughout the planning period. The City is tracking development to ensure adequate sites remain available for residential development to accommodate the City’s RHNA for all income categories.