Grand Jury Scotts Valley Response - Housing Our Workers Tue, Aug 29, 2023 at 2:04

While all city and county planning departments have demonstrated a good understanding of the new State housing laws and the need to facilitate more housing, the failure to do so in a timely manner has served to further decrease the availability of housing and further increase the need and cost of more housing. __ AGREE _X_ PARTIALLY DISAGREE __ DISAGREE Response explanation (required for a response other than Agree): With respect to Scotts Valley, the City follows all new State housing laws and will continue to facilitate housing production under such laws. With the many annual housing bills, cities and developers alike must be diligent in understanding the latest legislative changes. The City will continue to stay knowledgeable about the latest legislative changes, interpretations, and case law. It is unclear in the wording of this finding what the “failure to do so” refers to. The City has not taken action to “decrease the availability of housing” and the “need and cost of more housing” are primarily driven by market forces, not City actions.

The City of Scotts Valley has facilitated the building of market rate housing in recent years, but has made little effort to develop housing for low income workers. __ AGREE _X_ PARTIALLY DISAGREE __ DISAGREE Response explanation (required for a response other than Agree): Historically, the City had more tools to encourage and facilitate affordable housing but with the elimination of the Redevelopment Agency, those funds have been significantly reduced. The City works closely with housing developers to encourage more diversity in the City’s overall housing inventory, including more rentals, multifamily, mixed use, and smaller units. Chapter 14 of the Scotts Valley Municipal Code (SVMC) outlines the City’s inclusionary zoning requirements that apply to the production of both market rate and below market rate housing production. Residential developments of seven or more dwelling units are required to deed restrict 15 percent of the units for sale/rental to low-income households on- or off-site. Residential developments of six or fewer dwelling units are required to pay an in-lieu affordable housing fee. As such, new residential development projects of seven or greater units are required to provide affordable housing for low-income workers. The City’s Affordable Housing Subcommittee reviews proposed housing projects and often advocates for even more low and very-low affordable units.

The City of Scotts Valley has made little progress towards developing the Town Square project which could accommodate both business and housing. __ AGREE _X_ PARTIALLY DISAGREE __ DISAGREE Response explanation (required for a response other than Agree): The development of Town Center has faced a complex set of challenges, many of which are outside of the City’s control. For the last two years, the City has been actively engaged in characterizing and removing environmental contamination from the site and has initiated a Town Center Specific Plan update to encourage the development of the Town Center. The site continues to be included in the City’s Housing Element and in the most recent draft, the number of housing units is proposed to increased significantly which should improve the economic viability of the project.

The City of Scotts Valley claims to have significantly fewer resources to attract housing planners and builders than do the bigger municipalities of Santa Cruz, Watsonville and the County of Santa Cruz, but that does not mean the City should be exempt from the need to construct housing for local low income workers. _X_ AGREE __ PARTIALLY DISAGREE __ DISAGREE Response explanation (required for a response other than Agree): The City agrees that smaller jurisdictions have fewer resources to attract affordable housing developers. Scotts Valley has never claimed to be exempt from the need for housing and continues to be committed to encouraging the construction of housing for local low income workers. However, the City does not construct housing nor can the City compel private property owners to develop properties. (Please see responses to

While all local municipalities have voiced support for prioritizing housing for local workers, only some of them have clear local preference guidelines that give some priority to local workers. Without clear guidelines and incentives, new housing is more likely to be purchased by those who do not live and work here. _X_ AGREE __ PARTIALLY DISAGREE __ DISAGREE Response explanation (required for a response other than Agree): The City agrees that clear local preference guidelines that give priority to local workers is important and thus has a preference system to ensure residents and workers are prioritized. Applicants are prioritized in the order listed below: 1. Live and work in Scotts Valley: A household which includes at least one adult whose primary work location is within the city limits of the City of Scotts Valley and they have been working in Scotts Valley for a minimum of six (6) months, and the household has resided in the City of Scotts Valley for a minimum of six (6) months prior to the date of application to purchase the unit. 2. Live in Scotts Valley: A household which has resided within the city limits of the City of Scotts Valley for a minimum of six (6) months prior to the date of application to purchase the unit. 3. Work in Scotts Valley: A household which includes at least one (1) adult who has worked within the city limits of the City of Scotts Valley for a minimum of one (1) year prior to the application to purchase the unit and at least one (1) adult shall be working in Scotts Valley at the time of occupancy of the unit. 4. Live and work in Santa Cruz County: A household which contains at least one (1) adult who works within the County of Santa Cruz and the household has resided in the County of Santa Cruz for a minimum of one (1) year prior to the date of application to purchase the unit. 5. Live in Santa Cruz County: A household which has resided in the County of Santa Cruz for a minimum of six (6) months prior to the date of application to purchase the unit. 6. Work in Santa Cruz County: A household which includes at least one (1) adult has worked in the County of Santa Cruz for a minimum of one (1) year prior to the date of application to rent the unit and at least one (1) adult shall be working in the county of Santa Cruz at the time of occupancy of the unit. 7. All Others: A household which does not meet any of the above listed Preference Criteria. Historically most affordable housing units are purchased or rented by persons in the top 3 ranking categories.

All municipalities are trying to identify and facilitate the building of housing projects, but most of that is done independently of the other municipalities or with outside partners. Since workforce housing and transportation gridlock is a county-wide problem, all county municipalities need to work more closely together and with property owners to develop housing solutions. __ AGREE _X_ PARTIALLY DISAGREE __ DISAGREE Response explanation (required for a response other than Agree): Representatives from the different jurisdictions regularly learn from one another and collaborate on the best ways to grow across the region, particularly when it comes to planning for and requiring increased densities in areas close to transit and other daily needs. Individual projects are typically best handled by the jurisdiction in which they are located. Planning Directors throughout the County also meet at least five times per year to collaborate on housing and other related issues. The Planning Department staff from countywide jurisdictions also collaborate through AMBAG meetings, trainings, discussions of state legislation, joint presentations, and various other communication streams.