2023 - 2031 Housing Element Update

Capitola's 6th Cycle Housing Element 

   

On August 22, 2024, Capitola's 6th Cycle Housing Element was re-adopted by the City Council.  The State of California Department of Housing and Community Development certified the housing element on August 30, 2024.  Please click on the link below to view the document and appendices.   

Capitola Housing Element (Link)
Capitola Housing Element Appendices (link)

 

WHAT IS A HOUSING ELEMENT?

The Housing Element is one of the seven State-required “elements” or chapters that comprise the City’s General Plan and includes goals, policies, programs to be implemented during the planning period to meet current and future housing needs within the City. The Housing Element provides an analysis of the City’s population, economic, and housing stock characteristics, in addition to a comprehensive evaluation of housing programs and regulations.

State law requires the Housing Element to be updated every eight years in order to remain relevant and reflective of the community’s changing housing needs. The City’s current Housing Element covers the 2015-2023 period, also known as the fifth cycle. The City is in the process of preparing the Housing Element Update, which will plan for the 2023-2031 period (also known as the sixth cycle), and the State law requires that the City adopt this update by December 15, 2023.

Income

Level

Percent

AMI*

Minimum

Income**

Maximum

Income**

Units # Percent %

Very-Low***

<50%

n/a

$77,750

430

32%

Low

50 - 80%

$77,751

$124,750

282

21%

Moderate

80 - 120%

$124,751

$143,150

168

13%

Above 

Moderate

120% +

> $143,152

N/A

455

34%

 

 

 

Total 

1,336

 

* AMI - Area Median Income

** Income range is based on 2022 HUD Median Family Income (MFI) for Santa Cruz County of $119,300

*** AMBAG notes that for housing element updates, local jurisdictions will have to consider extremely low income (ELI) households as well.  ELI housing needs may be calculated either by using Census data or assuming 50% of the very low-income households qualify as ELI housiholds, which would be approximately 215 units.

 

Housing Element Components

Pursuant to State housing law, a Housing Element document is required to include the following components:

Housing Needs Assessment: Analysis of the City’s demographic, household and housing characteristics for the purpose of identifying and analyzing the existing and projected housing needs of a City.
Site Inventory: An inventory of resources and constraints relevant to meeting a city’s housing needs, including an inventory of adequate sites and zones for future housing development.
Constraints Analysis: Analysis of potential market, governmental, environmental and infrastructure constraints to the development of housing.
Goals, Policies and Objectives: A statement of goals, policies, quantifiable objectives and financial resources available for the preservation, improvement and development of housing.
Housing Programs: A list of housing programs setting forth actions and timelines for the implementation of established policies and goals set forth in the Housing Element.

 

WHAT IS THE REGIONAL HOUSING NEEDS ASSESSMENT?

The Regional Housing Needs Assessment (RHNA) is mandated by State housing law to quantify the need for housing throughout the State and is addressed in the local housing element update process. The State Department of Housing and Community Development (HCD) identifies a Statewide projected housing need and assigns housing allocations to each metropolitan area in the State.

The City of Capitola is located in the Association of Monterey Bay Area Governments (AMBAG) region. For the 2023–2031 planning period, the City of Capitola is allocated 1,336 units to accommodate the City’s projected housing needs for the eight-year planning period. The Housing Element must identify “adequate sites” and establish policies and programs that will accommodate this estimated growth. The City is required to develop the policies, programs, and zoning to incentivize and allow for this anticipated growth, as well as report to the State on an annual basis of the City’s progress. The City is not obligated to produce, construct, or develop these allocated units. Want to know more about RHNA? Please see AMBAG’s FAQ sheet here.

IMPORTANCE OF UPDATING THE HOUSING ELEMENT

The City is required by State Housing Law to adopt a compliant Housing Element.

Having a compliant Housing Element means that the City:

  • Is eligible for State grants and funding sources.
  • Allows the community to further engage in the planning process.
  • Demonstrates its ability and commitment to meeting future and anticipated housing needs.

However, a non-compliant Housing Element may make the City subject to numerous consequences including:

  • Lawsuits by the State and/or nonprofit advocacy groups.
  • Fines up to $600,000/month, pursuant to California Government Code Section 65585(l)(1)(A).
  • Loss of State funding/grant eligibility to help fund public facilities, infrastructure improvements, transportation, and affordable housing.
  • State control of City zoning and permitting.