The Planning Commission recommended forwarding Carmel-by-the-Sea’s draft housing element to the California Department of Housing and Community Development (HCD) for a statutory 60-day review, city staff said.

Staff said HCD has worked with the city for about a year and a half during drafting and has praised efforts to refine local programs. The city official said HCD has described the draft as turning constraints into opportunities and suggested the city apply for planning awards. Assuming the City Council does not request major changes at its upcoming meeting, staff said the draft will go to HCD for the 60-day review, with a best-case completion and certification target in April; staff called Jan. 14 a worst-case date for one step in the timeline depending on submission timing.

Staff emphasized that CEQA review will occur after the project is finalized through adoption steps: Planning Commission review of the CEQA document, a resolution recommendation to City Council, and then formal adoption. Once adopted, the city will file required notices (staff cited filing of a notice of determination with Monterey County). Staff said this housing element process does not require Coastal Commission adoption.

City staff said the city has been coordinating with HCD and the Coastal Commission while drafting the housing element and the related accessory-dwelling-unit (ADU) ordinance. Staff described the ADU ordinance as being timed to follow the housing element adoption so the ADU rules align with commitments in the housing element, noting the draft relies in part on ADUs to meet housing objectives.

The transcript does not show a formal City Council adoption vote; it records the Planning Commission recommendation and staff description of the next steps and timelines.