Scotts Valley council votes to submit 2025 Housing Element annual progress report amid concern about state mandates
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Summary
Council unanimously directed staff to submit the 2025 Housing Element Annual Progress Report to the California Department of Housing and Community Development, after staff detailed production and pipeline numbers and after residents raised concerns about an unrelated development. Councilmembers expressed frustration over state-imposed RHNA allocations and limits on local control.
The Scotts Valley City Council on April 1 voted unanimously to direct staff to submit the city’s 2025 Housing Element Annual Progress Report (APR) to the California Department of Housing and Community Development.
Senior planner Fralick presented the APR, saying Scotts Valley was assigned 1,220 housing units for the current planning period (RHNA) and summarizing 2025 activity: 86 units submitted for planning review, 40 entitled through planning, 153 building permits issued and eight units reaching occupancy (the point at which units are counted toward RHNA). Staff also described program completions, including updates to local code to align with state ADU and SB 9 laws and adoption of town-center plan and zoning changes tied to the housing element.
Fralick described the pipeline likely to be reported in 2026 (61 units across two projects and a late submittal of 21 units at Graceway) and noted a developer revision that reduced the number of very-low-income units in one project; staff asked council to authorize the APR submittal so it reflects the most accurate information.
Council members pressed staff on enforcement and consequences from the state. One council member noted recent state attention and possible fines for jurisdictions not in compliance; staff said a mid-cycle review with HCD will clarify state actions and that the APR is largely a reporting tool. Council discussion emphasized that the city must plan for housing but cannot force development; staff said success depends on market forces and developer interest.
During public comment, Joanne Dawood, a Windward Place resident, asked whether a rapidly rising Old Seagate building was part of the housing element, raising concerns about parking, traffic and neighborhood impacts; staff clarified that the site used different state legislation and was not identified by the city in its housing element.
Following the discussion, Council member Tim moved to approve the APR submittal; the motion was seconded and carried unanimously.
Next steps: Staff will submit the APR to HCD as authorized and continue tracking pipeline changes. Councilmembers urged continued advocacy to state representatives about the costs and mandates associated with housing requirements.
Quotes from the meeting include: "We don't actually build it. It depends on market forces, depends on developers," a planner said, summarizing the city's limited role in creating housing.
