Water is An Important Part of a Property’s Value.

Water is a precious resource. Here on the Monterey Peninsula, we take that seriously. So seriously, in fact, that we have an entire water management district to manage this precious resource. It’s called the Monterey Peninsula Water Management District (MPWMD) and was formed in June of 1978.

 

Along with managing and allocating water, the MPWMD promotes water conservation. With these two goals in mind, the MPWMD created a system of water units and fixture credits to keep track of water usage on the Peninsula.

 

Why is this important? Because if you want to modify or add residential water fixtures (i.e. remodel your kitchen or your bathrooms) and the property is within the district, you must have a MPWMD permit.

 

 

First you need to know if your property is within the district.


(figure A)


The district (figure A) is highlighted in the green shaded area. Included are:

  • Carmel-by-the-Sea
  • Del-Rey Oaks
  • Monterey
  • Pacific Grove
  • Seaside
  • Sand City
  • Monterey Peninsula Airport District
  • and portions of Unincorporated Monterey County including Pebble Beach and Carmel Valley

Every residential property within the district area has a fixture unit count or number of "water credits" attached to the property. This number is fixed and cannot be changed as it was derived from the District’s initial survey of the property. The size of a home does not dictate the number of water credits. It is possible to find 3,000 square foot homes with only two baths, and not enough credits to add a third. The total amount of credits can be used for whatever fixtures a homeowner wishes, as long as the total number assigned to the property is not exceeded.

Sample of Fixture Values

Type of Fixture
Credits Value
Washbasin
1.0
Toilet (1.6 gal/flush)
1.7
Kitchen Sink (w/ or w/o dishwasher)
2.0
Laundry Sink
2.0

A basic full bath typically uses 4.7 water credits and a typical kitchen uses two. Fixture units can be reassigned. For example, a vegetable sink in the kitchen can be removed and replaced with a bar sink elsewhere in the home.

A master bathroom can have two sinks without the second sink costing any units, and a large bathtub “costs” three units while a regular bath only “costs” two.

View a list of Residential Fixture Unit Counts here.

If you undertake a project that involves adding or moving fixtures around (i.e. a toilet for a laundry sink) you are required to submit a "Residential Water Release and Water Permit Application" along with your building permit. The form can be found here.

For Sale: 3-bedroom, 2-bathroom, 13.4-water credits.

It gets complicated fast, so why is it important to know when buying a home? Because when you buy the home, you are buying a fixed number of water credits and that will dictate what remodeling you can do. Issues like adding a sun room, the setbacks from neighboring lots, and whether you can build a "granny unit" are all dictated by zoning and local building regulations.  However, even if the local building regulations would allow you to add a half bath to your home if you don't have sufficient water credits you will not be able to do so.

And, this is really important - when you apply for the building permit you will need a stamp from the water management district as well. 

Know all of your options.

A few years ago, the MPWMD realized that today it is a reasonable request to add a second bath to a one bath home, even if there aren’t enough fixture units assigned to the property.  So, under the Second Bathroom Protocol (sometimes referred to as Ordinance 98) a property owner can apply for a water permit for a second bath for an existing one bath home. Keep in mind; you cannot then add a third bath by downsizing water fixtures without coming up with the credits for the “free” second bath.

If you are considering a one-bathroom home it is likely you can secure a water permit for a second bath. You should confirm that the home is eligible under Ordinance 98 before releasing contingencies under your purchase contract.

If you are selling a one bathroom home, I recommend that you confirm that a second bath can be added before putting the home on the market and make sure that potential buyers understand that possibility.

It is also possible to liberate fixture units by utilizing low flow appliances. For example, you could replace your current dishwasher (2 units including the sink) with a low flow dishwasher (1.5 units including sink) and have .5 credits to apply towards another fixture. You could also replace your washing machine (2 units) with an ultra low flow model (1 unit) and have another unit to use elsewhere. Any use of low flow appliances requires approval and a deed restriction from the MPWMD.

Whether buying or selling it is important to understand what water credits exist on the property.

As you can imagine, there are many other aspects of the water regulations that can impact property value. Even if you don't plan on remodeling a home in the immediate future, it is important to understand the water credits associated with any property you are thinking of buying. 
If you have remodeling plans you should discuss those with the district or your architect and confirm that you can do what you want.  For example, opting for low flow fixtures can "liberate" water credits that can be used elsewhere.

Contact Information

If you know the property’s Assessor Parcel Number (APN) it will assist the District in finding the information you need. Their contact information is as follows:

Monterey Peninsula Water Management District
Phone (831)658-5601
Website: Click Here

If you would like to talk about a specific property our wish to discuss the above information, feel free to give me a call and we can review the property report and water credit inventory and how it might affect the property’s value.

Malone Hodges
831-601-4740
malone@malonehodges.com
www.malonehodges.com