A city (or county) is not an accident but the result of coherent visions and aims

C H A P T E R   4 :   R E Q U I R E D   E L E M E N T S
   |   99
4
Accessory Dwelling Unit Ordinance, Santa Cruz
In 2002, the City Council of Santa Cruz supported staff efforts to increase the pool of affordable housing by initiating a 
comprehensive strategy and implementation plan for promotion of accessory dwelling units which resulted in adoption of the 
Accessory Dwelling Unit Ordinance. The plan offered approximately a 1:1 match from city in lieu fees, lower interest mortgage 
loans, partial subsidy of wages for a construction training program for women, and credit for in-kind staff time funded through 
the competitive award of a state Sustainable Communities Grant from the California Pollution Control Financing Authority. 
The city produced manuals and design handbooks distributed at no cost. The two pronged benefit accruing to the city would 
increase rental housing opportunities and strengthen home owner’s ability to retain ownership in an increasingly expensive 
housing market.
The ordinance reduced the uncertainty and risk of application denial, provided technical and design support, facilitated partial 
loan assistance at a pre-determined low interest tax rate (4.5% in 2002) and programmatic support through the city approval 
process. Permit fees were revised and reduced and waived for units deed restricted to low and extremely low income renters by 
depth of affordability. The city subsidized the wages of construction workers hired through the city’s training program. The city 
has since determined how constraints might be further loosened.
Accessory Dwelling Units:
Local governments can address a portion of their adequate sites requirement through the provision of accessory dwelling 
units based on a number of factors including the number of accessory dwelling units developed in the prior planning period, 
community need and resources and/or incentives available that will encourage their development. Accessory dwelling units are a 
valuable housing type that can facilitate affordability for a variety of housing needs. For more information, see the HCD’s website.
Jurisdictions may also use other alternatives to accommodate the regional housing need including units constructed since 
the beginning of the planning period, motel conversions, potential for manufactured housing on rural lots and sites with 
permanent housing on military bases undergoing closure or conversion. 
Identification of Zoning for Emergency Shelters 
Requirement Description:
Every jurisdiction must identify a zone or zones where emergency shelters are permitted without a conditional use or other 
discretionary permit (
Gov. Code § 65583(a)(4)
). The identified zone(s) must include sufficient capacity to accommodate the 
need for emergency shelter as identified in the housing element, EXCEPT that each jurisdiction must identify a zone(s) to 
accommodate at least one year-round shelter. Adequate sites can include sites with existing buildings that can be converted 
to accommodate need. Shelters may only be subject to development and management standards that apply to residential or 
commercial development in the same zone. However, local governments may apply written and objective standards that include 

---

C H A P T E R   4 :   R E Q U I R E D   E L E M E N T S
   |   100
4
maximum number of beds, off-street parking based upon demonstrated need, size and location of on-site waiting and intake 
areas, provision of on-site management, proximity to other shelters, length of stay, lighting, and security during hours when the 
shelter is open.
For more information, see the HCD’s 
technical assistance on zoning for emergency shelters
. 
Analysis of Governmental and Non-governmental Constraints 
Requirement Description:
Governmental:
 The element must describe and analyze governmental constraints for impacts on housing such as costs, 
supply and approval timing and certainty (
Gov. Code §65583(a)(5) and (6)
). This analysis must include constraints in 
land 
use controls
, 
codes and enforcement
, on and off site improvement requirements, 
fees and exactions
, 
processing and permit 
procedures
, and 
housing for persons with disabilities
. Other governmental constraints specific to localized areas should also be 
addressed as appropriate. 
The analysis of potential governmental constraints must describe past or current efforts to remove them. Where the analyses 
identify that a constraint exists, program responses to 
address and mitigate or remove
 its effects should be included in the element. 
Ordinances, policies, procedures, or measures imposed by the local government that specifically limit the amount or timing of 
residential development should be analyzed as a potential governmental constraint and mitigated where necessary. The analysis 
will vary depending on the nature of the measure. In general, the measure and its implementation procedures should be 
specifically described and analyzed as to the impact on the cost and supply of housing.
Non-governmental:
 The housing element must include an analysis of non-governmental constraints, including land prices, 
construction costs, and financing availability. Although nongovernmental constraints are primarily market-driven and generally 
outside direct government control, localities can significantly influence and offset the negative impact of nongovernmental 
constraints through responsive programs and policies.
Analysis of Energy Conservation Opportunities 
Requirement Description:
The 
energy conservation
 section of the element must inventory and analyze the opportunities for energy conservation in 
residential development such as energy saving features, energy saving materials, and energy efficient systems and design for 
residential development (
Gov. Code §65583(a)(8)
). Planning to maximize energy efficiency and the incorporation of energy 
conservation and green building features can contribute to reduced housing costs for homeowners and renters, in addition to 
promoting sustainable community design. Such planning, development, and building standards can also significantly contribute 
to reducing greenhouse gases. Updated policies and programs can address a variety of factors related to energy conservation 
and even broader environmental goals such as 
climate change
 by highlighting the environmental significance and operational 
benefits of employing energy conservation in the siting, building and retrofitting of decent, safe and affordable housing. 

---