Carmel City Council reviews 14 acre feet water allocation for affordable housing

Carmel-by-the-Sea's City Council convened on May 5, 2025, to discuss a significant water allocation of 14 acre-feet from the Monterey Peninsula Water Management District, marking a pivotal moment for the city’s housing strategy. This allocation, the first in years, is crucial as Carmel plans to address its housing needs, particularly for affordable units.

During the meeting, city staff outlined the water management plan established in 1987, which mandates that at least 10% of available water resources be reserved for affordable housing. Currently, the city has a total of 16.6 acre-feet in reserves, with the new allocation temporarily categorized as unallocated reserves until the council decides how to distribute it.

Council members engaged in a robust discussion about the best use of this water. They emphasized the importance of prioritizing affordable housing, with several members advocating for allocating a significant portion, if not all, of the new water to this category. Councilmember Hans Drammoth suggested that the city could benefit from a mixed-income approach, allowing for both affordable and market-rate units, while ensuring that any new developments include a substantial affordable component.

Public comments echoed the council's sentiments, with residents urging the council to focus on affordable housing to support local workers and families. Suggestions included restricting water allocations to projects that commit to deed-restricted affordable units, ensuring that the water serves the community's needs rather than facilitating luxury developments.

The council ultimately agreed to consider allocating a minimum of 10% of the new water to affordable housing, with plans to revisit the allocation strategy in the coming months as the housing element amendment progresses. This proactive approach aims to maximize the impact of the water allocation while addressing the pressing need for affordable housing in Carmel-by-the-Sea.