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State Water Restriction Impacts on Affordable Housing


The City of Monterey has been working to fulfill a state-mandated regional housing needs assessment (RHNA) that assigned Monterey 3,654 housing units (1,177 very low income, 769 low income, 462 moderate-income, and 1,246 market rate), and to place this housing closer to jobs as well as address equity metrics, all within a 2023 to 2031 timeframe. The RHNA is also consistent with one of the Council’s strategic initiatives - to “champion regional and local efforts to secure adequate, affordable, and sustainable water sources for the city, now and into the future.” The aspirational goal to address these issues and fulfill the Council strategy is impossible with the current water supply restrictions imposed by the State.

At the March 15, 2022 City Council Meeting, City Staff recommended that Council authorize letters to be sent to the Monterey Peninsula Water Management District, Monterey One Water, State Water Resources Control Board, and Association of Monterey Bay Area Governments regarding the City of Monterey’s water supply needs to build the required housing to meet the Regional Housing Needs Allocation. In addition, the letters request the various agencies adopt resolutions requesting the State Water Resources Control Board lift the Cease and Desist Order since all illegal diversions from the Carmel River ceased December 31, 2021 so developers can set new water meters and work within the Monterey Peninsula Water Management District credit system. The letter to the State Water Resources Control Board requests that the Cease and Desist Order be lifted since all illegal diversions from the Carmel River have ceased December 31, 2021.

City Council is committed to providing affordable housing for its residents and workforce; Council approved the recommendation, and on March 18, 2022, those letters were emailed and mailed.

For background, please read the March 15, 2022 City Council please read the agenda report. Also see the news release dated March 17, 2022.