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Watsonville council moves to update affordable‑housing ordinance, codify local preference
Summary
Council voted to introduce amendments to Watsonville's affordable‑housing ordinance to align with the city’s 6th‑cycle housing element, clarifying prevailing interest‑rate calculations, increasing deed‑restriction terms, and prioritizing local residents and workers for affordable units.
The Watsonville City Council on Aug. 26 introduced amendments to the city's affordable‑housing ordinance intended to implement the 2023–2031 housing element and state law updates, including measures to prioritize local residents and workers in affordable‑unit marketing.
Carlos Landaveri, housing manager, said the ordinance clarifications include deleting obsolete redevelopment references, refining the prevailing‑interest calculation used to set initial sales prices for ownership units, and codifying a local preference that reserves the first 30 days of marketing to local households and employees.
"Local preference prioritizes the current resident," Landaveri said, adding that local workers may also have priority to rent or purchase an affordable unit. The change is intended to help retain community members despite market changes and rising housing costs.
Why it matters: The amendments are intended to make the city's ordinance consistent with the adopted housing element and state statutes, streamline compliance for developers, and provide clearer rules for affordable‑unit pricing and marketing.
Key details and council questions
Council members pressed staff for clarity on how the prevailing interest rate affects unit pricing and on timing: Landaveri said current average mortgage rates remain high (reported between 6.5% and 6.8% at the meeting) and that the city will set an initial rate to be updated by the community development director and reviewed by council when income limits are announced.
On local preference and legal risk, the city attorney said the ordinance language is permitted by state law (cited in the meeting as SB 649) and creates reporting duties for how the preference is applied. The council highlighted requirements in the draft ordinance that a developer establish a local office, employ Spanish‑English multilingual staff for outreach, and provide materials in both languages.
Public comment: No members of the public spoke during the ordinance item; Planning Commission had unanimously recommended adoption. Councilmember Dutra moved and Montesinos seconded the first reading motion; roll call showed the motion carried.
What's next: The council introduced the ordinance for first reading (waiving full reading) and will return for further readings and final adoption steps. Staff said they would provide updated interest‑rate figures close to the second phase of developer sales so the pricing reflects current market conditions.
Sources: Presentation by Housing Manager Carlos Landaveri and Planning Commission recommendation as read into the record at the Aug. 26 Watsonville City Council meeting.
