My (informal) thought is that it is very likely the increases in the share of households with higher income is due to the in-migration of older people at or near retirement age.
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1 Galmiche, Ines
From: Matthew VanHua <[email protected]>
Sent: Thursday, April 6, 2023 10:42 AM
To: Galmiche, Ines
Subject: FW: Housing Element; 336 , 337 and vacant parcel on Golf Club Drive Categories: External
Specific comments on our sites inventory regarding a few parcels. We will talk with this development team next week.
Matthew VanHua, AICP
Principal Planner – Advance Planning
Planning and Community Development Department
809 Center Street, Room 107 | Santa Cruz, CA 95060
Main: 831-420-5110 | Direct: 831-420-5216
From: John Swift <[email protected]>
Sent: Wednesday, April 5, 2023 8:23 AM
To: Matthew VanHua <[email protected]>
Cc: David Cury <[email protected]>
Subject: RE: Housing Element; 336 , 337 and vacant parcel on Golf Club Drive Mathew,
Good morning. I enjoyed the Housing Element Workshop last night. Lots of good information and well done!!!
My partner and I, Dave Cury, would like to meet with you at your earliest convenience to discuss these properties in relation to the Housing Element. We had prior discussions with Katherine Donovan, but it appears that those may not have been communicated to you when she retired.
Have a good day.
John Swift
[email protected]
Swift Consulting Services, Inc.
500 Chestnut Street, Suite 100
22.255
2 Santa Cruz, CA 95060
(831) 459-9992
(831) 459-9998 fax
From: John Swift
Sent: Tuesday, April 4, 2023 8:10 AM
To: Katherine Donovan <[email protected]>; Matthew VanHua <[email protected]> Cc: David Cury <[email protected]>
Subject: Housing Element
Katherine, Mathew,
We spoke several months ago about our properties on Golf Club Drive in the context of the Housing Element update. Upon reviewing the staff report for tonight’s workshop I was surprised to see that no recognition of our properties, 336 Golf Club, APN 001-172-02 ; 337 Golf Club, APN 001-171- 10 and APN 001-172-11 are shown as having infill development potential. Section 4.5 Other Infill Sites, Table B-17 includes two properties that are in the Golf Club Drive area and are immediately adjacent to our properties. These two properties are identified as 210 Golf Club ,APN 001-172-01 and 209 Golf Club, APN 001-172-03. Why were our three properties adjacent to these two properties not included in this inventory?
Additionally, there seems to be an omission of a very pertinent General Plan Policy regarding the infill development potential of this 20 acre Golf Club Drive Area. This policy is quoted below:
2030 General Plan
1.1.5 Any future land divisions within the Golf Club Drive shall be limited to three lots and a remainder per existing parcel. These limited land divisions may be approved prior to adoption of an Area Plan. Proposed parcels shall be clustered and the area of the parcels shall be in the higher range (R-1-7) of the Low Density Residential designation (1.1-10 DU/ acre) with a remainder that may be larger than the minimum parcel area allowed by the Low Density Residential designation. Any land division application processed prior to adoption of an Area Plan shall not impede or detract from the future development potential of the remainder property.
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3 • Prior to allowing any subdivision for the creation of lots less than 7,000 square feet in area, an Area City of Santa Cruz 44 Chapter 4 Plan for the 20-acre Golf Club Drive Area shall be approved by the City. All new construction proposed prior to the adoption of the Area Plan shall be subject to a design permit. • The Area Plan shall provide housing within developable areas of the site at 10.1- 20 DU/acre. Upon adoption of the Area Plan the Golf Club Drive Area shall be designated Low Medium Density Residential on the General Plan Land Use Map. • The Area Plan shall preserve up to five acres of open space. Urban wildlife interface zones, community gardens and riparian corridor areas could be included in the open space requirement.
• Pedestrian and bicycle access to Pogonip and nearby employment areas are to be incorporated into the plan.
• The evaluation of a future rail transit stop is to be included in the Area Plan analysis.
The impacts of the potential development of these Golf Club Drive properties at 20 units per acre was analyzed in the General Plan EIR. There is a long history of the City recognizing the development potential of these properties. The potential for these properties to be developed with housing at 20 units per acre or more and make a significant addition to the housing supply should be acknowledged in the current housing element update.
Please give me a call to discuss further.
John Swift
[email protected]
Swift Consulting Services, Inc.
500 Chestnut Street, Suite 100
Santa Cruz, CA 95060
(831) 459-9992
(831) 459-9998 fax
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1 Rosemary Balsley
From: Garrett <[email protected]>
Sent: Friday, April 21, 2023 10:56 AM
To: City Council
Subject: 4.25.23 Agenda Item #36 Housing Element
4.25.23 Agenda Item #36 Housing Element
Dear Council,
While it's not the first time the government has bold faced lied to justify its agenda, this time it's really obvious.
The idea Santa Cruz must build 3736 new housing units in various categories of low income rental cost over the next 8 years to meet population growth needs :
1) is a big fat lie. Population growth peaked in California in the 80's and has trended down ever since, and has now crossed over to negative. Santa Cruz county crossed over to negative (declining population) for the LAST 5 YEARS, and the city itself negative for a few years. There is no evidence this trend won't continue.
There are plenty of reasons for declining population. Trends include an aging population, the boomer generation dying off, increasing age of first births among women, delayed child rearing generally, Covid deaths, a stubborn excess mortality co-incident with the mandated mRNA vaccinations, declining male fertility, and a realization California is anti-business, high tax no return state with an odious politic that make people want to leave and they are, in droves now.
2) is stupid beyond words. The building of new units in that quantity without actual population growth will result in massive vacancies in the worst case 3% range. There will be mass financial casualties. Mass building into a pending housing bust is near insanity. Rising interest rates are starting, but only just begun, to crush housing prices.
Think Stockton in 2009.
3) Is racist. A good chunk of the housing allocation is because Santa Cruz is "too white" which is as racist as can be. Good thing we are also not "too affluent" (the state thinks affluent communities need lots more poor people because they have some sort of magic that rubs off and are discriminating) or we would have been assigned even more low income housing. It is classic leftist drivel SJW logic, but that is California today headed for the trash bin of states.
4) Interferes with the free market in communist style central planning mandates.
Especially when government incentives are used like permanently giving away public assets like parking lots to the benefit/partnership with developers and VERY FEW citizens
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2 it is not playing on a level playing field of capitalism and stealing public assets from the rest.
It pretends "governments know best" but they don't. Every serious problem we face like inflation which is the real issue here is caused by the corruption partnership of the Federal government, banks, Federal Reserve massive debt bubble creation. This doesn't solve that or even acknowledge it.
5) Is a dodge for a very different agenda. Both "affordable housing" and "climate change" are the vehicles being used to imprison the population in ultra dense urban cores without the freedom of mobility (no cars) creating 15 minutes cities where everyone works and lives out their entire lives within a 15 minute radius. It is totalitarian, it is about control.
It is not America. There is lots of open land in the US, but the government doesn't want us living there, no matter what we want.
6) Does NOT reduce overcrowding. I suppose it depends on your definition of overcrowding, but using the Food Bin example, building 59 288 sq foot units "designed for singles and couples" packs more people into an acre lot than ever before. There may be walls between the people, but they are in solitary confinement and cannot even own cars? Jail isn't much worse and even serve free food.
Economically, it is just the shrinking cereal box and is not more affordable per sq foot (we will see, but 288 sq feet isn't a lot). It is you pay for what you get.
It is possible this or a different mix of housing is desirable, but only as replacements for any existing housing that is not appropriate given a lack of population growth.
If there is any cost/affordability advantage to building density, you could allow such structures, but also demand open space so the people/acre doesn't change that much (quality of life issue). But you won't because you are part of the agenda, Agenda
21. As with the climate change energy starvation mass hysteria, the consequences are not considered. The risks not considered. 7) Catering to, subsidizing, and attracting a mass of poor people by offering them less and less for whatever money they have is not the road to prosperity. It is the road to the cesspool of government dependence.
8) The University doesn't pay property taxes, and they can house their own students many of which are out of state or foreign because they pay higher tuition. Do an analysis of city resources
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3 the University sucks up they don't pay for, how they impact density and then quality of life and let me know the balance.
This place will turn into a ___hole and you're all giddy with glee and beaming with virtuosity without facing realities.
Garrett Philipp
342 Plateau
Santa Cruz, CA 95060
22.260
July 5, 2023
To: Jose Jauregui, Housing Policy Analyst,
California Housing and Community Development
CC: Matt VanHua, Principal Planner, Advance Planning,
City of Santa Cruz Planning and Community Development
RE: City of Santa Cruz Draft Housing Element (May 2023) Santa Cruz YIMBY has the following comments on the City of Santa Cruz’s 6th cycle Housing Element draft submitted to Housing and Community Development for review on May 10, 20231. We submitted feedback to the City during the public review and comment period, and would like to highlight the issues that remain in the amended Housing Element.
In response to the ever-increasing cost of living, Santa Cruz YIMBY advocates for abundant housing at all levels of affordability to meet the needs of a growing population in Santa Cruz County. The Housing Element is an opportunity for the City of Santa Cruz to address the housing crisis on its own terms. We support sustainable growth, including along transportation corridors and activity centers and a commitment to lower Vehicle Miles Traveled by housing people near services and jobs.
Policy 1 - Housing Production
We are thrilled that the City has met their 5th cycle goals, however, with no rezoning taking place to meet the 6th cycle production goals, policies to increase housing production will be of huge importance.
It is stated under Policy 1.2, and more fully in Appendix D: Fair Housing Assessment, that most new housing will be concentrated in the central core of the City, meaning along major commercial corridors and on major opportunity sites. With this area receiving over 45% of the new housing, including over 40% of the Very Low and Low-Income sites, we believe that the City should be looking towards additional opportunities to meet AFFH goals, including in majority single-family neighborhoods of other districts. 1 https://www.cityofsantacruz.com/home/showpublisheddocument/93344/638194110391470000 May 2023 Housing Element - SC YIMBY Comment Letter Page 1 of 7
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We believe the City can and should go further to enable more housing types in its most resource rich neighborhoods. Objective 1.3e intends to utilize SB 10 to increase residential density in transit rich areas, which in Santa Cruz are not high resource. The SB 10 scope should be expanded to include urban infill sites in high resource districts outside of transit rich areas to allow for more affordable housing throughout the City.
Pipeline Projects
A large source of new units for the City during the 6th cycle will be from pipeline projects.
For jurisdictions relying heavily on pipeline projects, HCD recommends2 that “…the element should include programs with actions that commit to facilitating development and monitoring approvals of the projects, including the number of units and affordability (e.g., coordination with applicants to approve remaining entitlements, supporting funding applications, expediting approvals and monitoring of project progress, including rezoning or identification of additional sites, if necessary).” We suggest that the city commit to implementing such a recommendation to facilitate development, such as by proactively monitoring and facilitating post-entitlement developments with technical and/or financial assistance.
Mid-cycle Review
Under Policy 1.1, the City commits to providing new housing through adoption of the Housing Element (1.1a) and review and annual publication of sites inventory (1.1b). The City can make a stronger commitment to appropriate progress towards its 6th cycle goals. We would like to see an objective with a more active mid-cycle review and adjustment. Tying this review to commitments to increase housing production such as rezoning, ADU incentives, or removing development constraints would allow the City to minimize impacts of falling behind in the 6th cycle. Making these commitments specific now would reduce the staff time required to implement mid-cycle.
As part of the mid-cycle review, the City should create objectives that monitor the progress of pipeline projects. This should include automatic entitlement extensions until midway through the 6th cycle, a commitment to advocate for city-entitled projects to be approved by the Coastal Commission, and proactively reaching out to all pipeline projects to confirm that there is still development interest.
Objective Standards
The City should expand Objective 1.2b to include a policy that any project found consistent with Objective Standards is placed on the consent agenda for all hearing bodies. Such projects should only be appealable to council if denied by the planning commission, or if the appeal is related to consistency with objective standards. This would greatly increase the incentive for developers to design projects compliant with the standards. 2 HCD response to Brisbane Draft Housing Element, January 2023 May 2023 Housing Element - SC YIMBY Comment Letter Page 2 of 7
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Parking
We are pleased to see that elimination of parking minimums is intended as a policy objective, however it is not stated as a commitment in objective 1.3c. In the City’s work to achieve this, we believe the elimination of such requirements within a mile walking area of five or more amenities (pharmacies, grocery stores, transit stops, etc), and in very low vehicle travel areas, would be a good intermediate policy stepping stone.
FAR and Density
A significant constraint to development of 2+ bedroom units is the units/ acre density requirement, something that does not apply to smaller units such as SROs. In order to increase the number of family sized (2+ bed) units built, this constraint should be removed or significantly modified. This should also be addressed by increasing the FAR for projects consisting of 50% or more 2+ bedroom units. This increase should allow the same net number of units as if they were proposed as SROs or a similar unlimited density unit.
Policy 2 - Affordable Housing
The ordinance options allowing 100 percent affordable residential development to be considered a “by-right” use would greatly speed along much needed affordable housing. As such, we urge expedited approval of Objective 2.2g to 2024 or earlier rather than a quarter of the way through the 6th cycle. A commitment to developing or declaring city parking lots downtown surplus by a certain date with the goal of providing affordable housing would also be a valuable policy.
As part of objective 2.4c, we support establishing a Community Opportunity to Purchase3 program to give qualified non-profit organizations the right of first offer or refusal to purchase certain properties offered for sale in the City. We also support establishing a Tenant Opportunity to Purchase4 program to help prevent displacement, empower tenants, and preserve affordable housing when the owner decides to sell.
Policy 3 - Special Needs and Homelessness
Permanent supportive housing is a key solution towards solving homelessness. Policy 3.4 should explicitly indicate equitable distribution (and development potential) of such housing across all districts.
Persons with disabilities benefit from the development of extremely low- and very low-income housing. Objective 3.1c falls short of any commitment to develop housing, only to “publicize housing accessible to persons with disabilities”. The City should increase incentives for extremely low housing in objectives under Policy 2 - Affordable Housing, such as additional density bonus (Policy 2.3) or modification of the inclusionary ordinance (objective 2.1a) or by-right approval (objective 2.2g) to favor more extremely-low homes. 4 EBCLC's Tenant Opportunity to Purchase Act (TOPA) - East Bay Community Law Center 3 Community Opportunity to Purchase Act (COPA) | San Francisco May 2023 Housing Element - SC YIMBY Comment Letter Page 3 of 7
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The University
The two objectives related to the University of California, Santa Cruz (UCSC), 3.5a and 3.5b, are vaguely worded to “Continue to collaborate…” and “Support state legislation…” which are repeats from the 5th cycle. Note that as recently as 2022, the City formally expressed opposition to proposed legislation intended to facilitate more housing at UCSC. 5 The City has been and continues to be a significant barrier to development at UCSC, as evidenced by past and ongoing litigation6. This is not acknowledged in the constraints portion of the City’s housing element. The city should make a good faith effort to analyze the barriers it presents to housing construction and planning with regards to UCSC and propose programs to mitigate these impacts. The city should commit to providing municipal services to new housing at UCSC and a policy to not sue over housing production on campus or to obstruct UCSC housing projects through other means such as withholding water access via the Local Agency Formation Commission process.
Policy 5 - Neighborhood Vitality
Policy 5 opens with the following context: “Quality of life is shaped, in part, by neighborhood conditions in Santa Cruz. As an older, established community, Santa Cruz requires a concerted effort to encourage the maintenance, rehabilitation, and improvement of housing and to promote sustainable, livable neighborhoods in the face of increasing density.” We wholly reject the framing that density and sustainable, livable neighborhoods are incompatible. The city should update this language.
Policy 6 - Affirmatively Furthering Fair Housing
As discussed in our Housing Production section, a majority of new housing is being planned along major corridors. This leaves out many exclusive and high opportunity neighborhoods from producing their fair share of housing.
Creation of missing middle housing isn’t mentioned within the policy plan - the City should adapt zoning regulations that would incentivize this form of housing. Examples include reducing minimum lot size, lot width, and parking requirements (kudos to the latter already being included!)
We believe the City can and should go further to enable more housing types in its most resource rich neighborhoods. Objective 6.2d should use SB 10 to increase density in R1 districts, not just to allow construction of Flexible Density Units (FDUs). FDUs are a housing type, not a zoning district. The time frame for zoning amendments to expand housing opportunities in single family zones should be sooner than 2029 as proposed in Objective
6.2c. Similarly, the City’s deadline for updating the local SB9 ordinance consistent with State Law should be earlier than 2027.
6 City of Santa Cruz, UCSC in talks to possibly end lawsuits over enrollment and housing plans 5 Minutes from City Council meeting, 4-26-2022
May 2023 Housing Element - SC YIMBY Comment Letter Page 4 of 7
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Policy 6.4 recognizes that displacement may follow new development. Improvements of community assets, as proposed in Objective 6.4a may also result in displacement. This objective should include applicable anti-displacement strategies.
Sites Inventory - Small Sites Program
The site inventory identifies a significant number of small parcels for development, many of which are projected to accommodate low income units. Per HCD’s Site Inventory Guidebook7“A parcel smaller than one half acre is considered inadequate to accommodate housing affordable to lower income households, unless the housing element demonstrates development of housing affordable to lower income households on these sites is realistic or feasible.” The City claims that many of these parcels have development opportunities due to common ownership with adjacent parcels; the Housing Element includes no objectives in the Policy Plan with specific incentives to facilitate consolidation. We recommend an incentive program such as a FAR density bonus for projects which involve small lot consolidation.
Upzoning Near Potential Light Rail Stations
The RTC has multiple scenarios for a passenger light rail route. In most scenarios stations would be located on the Westside, Bay/California, Downtown, and Seabright8. We encourage a program to look at additional density along the Coastal Rail Trail, with a focus on these station locations.
Tenant Protections
As a majority-renter city, it is important that we have strong tenant protections. There are a number of programs we would like to see implemented or expanded in the City including:
● Elimination of or cap on rental application fees
● Creation of a rental registry. This was recently passed by both Salinas9 and Monterey10 ● Local preference for people employed in the county
● COPA and TOPA programs (see Policy 2 - Affordable Housing) ● Conduct a disparate impact analysis of non-high(est) resource areas11 and apply a live-work preference if if it matches county demographics Need for Active Language, Dates and Measurable Metrics
Objectives/Time frames lack active language, dates, and measurable metrics to determine the success of the objective. Time frames are often a recitation of the process, not a commitment to an outcome. Some examples:
11 2023 CTCAC HCD Opportunity Map
10 Monterey City Council moves ahead with rental registry 9 Salinas passes rental registry, first in Monterey County 8 SCCRTC Rail Study - Service Scenario Map
7 Housing Element Sites Inventory Guidebook
May 2023 Housing Element - SC YIMBY Comment Letter Page 5 of 7
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Policy 1 - Housing Production
● 1.2d - Time frame should be tightened to the action phrase “Adopt rezonings for the Ocean Street Area plan by the end of 2024, and submit to Coastal Commision as Local Coastal Program Amendment by [date]
● 1.3b - Time frame is to “Meet annually with the development community to consider process improvements.” Also, 1.4b time frame is to “Meet annually with the development community”. These are commitments to meetings; they should include development of an action or improvement plan based on input. ● 1.3c time frame should be tightened to the action phrase “Eliminate minimum parking requirements citywide by January 2028”
● 1.5a and 1.5b are focused on important facilitation of ADU development, and both commit to “consider” amendments or modifications , with no dates. 1.5e Time frame should be tightened to “Amend ADU owner occupancy regulations by May 2024” Policy 2 - Affordable Housing
● 2.1a and 2.1b and 2.2a Time frames all are “Review…and present…” related to the Inclusionary Ordinance. The language should be tightened to the outcomes:
○ 2.1a “Amend Inclusionary Ordinance to ensure requirements provide maximum number of affordable units or deeper levels of affordability without behind a barrier to housing development by [DATE]”
○ 2.1b “Amend Inclusionary Ordinance with programs and incentives to increase rental and home ownership opportunities for workforce housing by [DATE]” ○ 2.2a “ Amend Inclusionary Ordinance to update affordable housing options such as provided offsite or incentivizing land dedication by [DATE] ● 2.2g - Time frame should be tightened to the action phrase “Allow 100 percent affordable residential development to be considered a “by-right” use by December 2024” (new date suggested).
● 2.3a and 2.3b lack specific commitments and action language related to Density Bonus Ordinance as it exceeds State Density Bonus law.
● 2.4b, 2.4c and 2.6 include the vague language of “on an ongoing basis” and “whenever possible” which are difficult to ascertain for success. ● 2.4a, 2.4b and 2.5a “coordinate” or “partner” with others to an unspecified outcome or milestone with date.
Policy 3 - Special Needs and Homelessness
● 3.1a, 3.1c, 3.2a, 3.2b, 3.2c, 3.3a, 3.3g, 3.3h, 3.3i, include the vague language of “on an ongoing basis” and “when possible” which are difficult to ascertain for success. ● 3.1c, 3.2a, 3.3c, 3.3e, 3.4a 3.5a “Work with” , “Assist” ,“coordinate with”, “actively seek partnerships”, “continue support for”, “continue to collaborate” to unspecified outcomes or milestones with date.
Policy 4 - Housing Assistance
● 4.1a, 4.2b “Continue to contract…”, “Continue to support….” with unspecified outcomes or milestones with date.
Policy 5 - Neighborhood Vitality
● 5.5b - Time frame should be tightened to the action phrase “Implement new anti-displacement measures by September 2025”
May 2023 Housing Element - SC YIMBY Comment Letter Page 6 of 7
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● 5.3a, 5.3b includes the vague language of “Explore…” and “Seek out…” which are difficult to ascertain for success.
● 5.1a, 5.2a, 5.4c, 5.5a “Continue to implement”, “Continue to administer….”, “Continue to support….”with unspecified outcomes or milestones with date. ● Time frame should be tightened to the action phrase “Amend Zoning Ordinance to increase base zoning consistent with SB10 by December 2026.” ● 6.2c - Time frame should be tightened to the action phrase “Amend Zoning Ordinance to expand housing opportunities in single-family zones by December 2026.” (proposed new date)
● 6.2d - Time frame should be tightened to the action phrase “Amend Zoning Ordinance to increase base zoning consistent with SB10 by December 2026.” ● 6.1e, 6.2f, 6.4a, 6.4c, 6.4e include the vague language of “on an ongoing basis” which is difficult to ascertain for success.
● 6.1a, 6.1b “Coordinate”, “Support…”,“Provide support”, “Continue to administer….”, “Continue to support….”with unspecified outcomes or milestones with date. ● 6.2c and 6.2d - these similar initiatives for single-family and high resource areas should have synchronized dates of 2026.
● 6.2e - local SB 9 ordinance to align with state law should be sooner than 2027 ● 6.4a - investment in “areas of highest need” can spur displacement, this objective should include anti-displacement efforts
● 6.4b - Time frame should be tightened to the action phrase “Amend the City’s Relocation Ordinance by September 2025”
Policy 7 - Resource Conservation and Environmental Stewardship ● 7.1a, 7.1b, 7.1c, 7.2b, 7.3a, 7.3b, 7.4b, include the vague language of “on an ongoing basis” with unspecified milestones with date.
● We appreciate the reference to the Climate Action Plan in 7.2a, which has specific measures and actions.
May 2023 Housing Element - SC YIMBY Comment Letter Page 7 of 7
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1 Galmiche, Ines
From: Karen Dawson <[email protected]>
Sent: Tuesday, October 17, 2023 2:22 PM
To: Clara Stanger
Subject: Re: Housing Element revised draft document available for public review Hello Clara. I did my best to read this and I am confused ⷓⷔⷕⷖ.
I live in Deanza and I am a strong proponent for mobile homes for seniors.. as both rental and home ownership. since there are only 3 mobile home parks in city of Santa Cruz, and only for for seniors.. over 55, how is this housing “preserved and sustained without rent control in the city? I have been trying to advocate for this issue for last 1.5 years without a lot of interest but no movement. can you assist to strengthen the language in element to preserve mobile homes in city for more than moderate plus income persons?
I have a list of recc. That I sent mayor that I can send you too. hopefully it’s a document in process! Thsnks Karen Scott
Sent from my iPhone
On Oct 12, 2023, at 6:23 PM, Clara Stanger <[email protected]> wrote:
Good Evening,
The City has revised the HCD Submittal Draft (6th Cycle) Housing Element that was submitted to HCD on August 30, 2023, based on preliminary comments provided by HCD. The revised document is available for public review at www.cityofsantacruz.com/housingelement. The public comment period runs from October 12, 2023 through October 19, 2023. Please email any comments directly to me.
Sincerely,
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Clara Stanger
Senior Planner
City of Santa Cruz | Planning and Community Development 809 Center Street, Room 101, Santa Cruz, CA 95060
Main: 831-420-5110 | Direct: 831-420-5247
Email: [email protected]
Web: www.cityofsantacruz.com
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1 Galmiche, Ines
From: kathleen duncan <[email protected]>
Sent: Tuesday, October 17, 2023 6:15 PM
To: Clara Stanger
Cc: Matthew VanHua; Samantha Haschert
Subject: Re: Housing Element revised draft document available for public review Attachments: end game santa cruz.xlsx
Hi Clara,
Thanks for your reply.
I'm sorry to be bugging you some more, i'm sure i must have a frequent flyer sƟcker on my folder :-) ◣◤◥◦◧◨ How many addiƟonal potenƟal units were created in the City as a result of the General Plan change to use GROSS rather than NET for density calculaƟons ?
Which parcels besides our lot at 190 westview court were affected ? For instance, 5 addiƟonal potenƟal HU's were added to ours.
How many potenƟal HU's IN TOTAL did the city get from this change ? I haven't come across a discussion of how this change to the General Plan came about. Scrounging for HU's ? imitaƟng another juridicƟon ? or something else?
I can look harder for a discussion in city docs. Just thought one of you guys might remember the raƟonale.
I know the City and County struggle to control the growth of UCSC campus. fyi: I've discussed my concerns about the University's displacement of Santa Cruz City residents, with Ian Klein at LAO.
He asked me to send my end-game-santacruz spreadsheet. It will be interesƟng to get his fact-checking and feedback. Maybe i'm exaggeraƟng the effect.
I asked Ian if the State/Regents have considered adding a sister campus in Watsonville, and he said this had "come up" but is complex and far future.
And of course that decision should be made in Watsonville. thanks again,
Kathy
On 10/16/2023 12:39 PM, Clara Stanger wrote:
Hi Kathy,
While the gross lot area density calculaƟon allows for more potenƟal units than would one based on net lot area, it doesn’t require a property to develop at that increased density. The development would need to meet at least the minimum end of the density range.
With regard to your quesƟon about the State and UC campus growth, the state goes through a process that’s separate from our local process when they determine the growth targets for different campuses, and then the campus conducts a public process for their Long Range Development Plan, in which they idenƟfy how they will accommodate the growth targets.
Sincerely,
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2 Clara Stanger
Senior Planner
City of Santa Cruz | Planning and Community Development 809 Center Street, Room 101, Santa Cruz, CA 95060
Main: 831-420-5110 | Direct: 831-420-5247
Email: [email protected]
Web: www.cityofsantacruz.com
From: kathleen duncan <[email protected]>
Sent: Friday, October 13, 2023 1:38 PM
To: Clara Stanger <[email protected]>
Subject: Re: Housing Element revised draft document available for public review
Hi Clara,
Do you happen to know how many addiƟonal "potenƟal" housing units resulted from the change in the General Plan to use Gross rather than Net Lot Area for density calculaƟons ? I guess Katherine Donovan would be more likely to know, if anyone did this analysis prior to modifying the General Plan.
I'm sƟll wondering why with all these new housing laws passed by State, there seem to be no California laws restricƟng the growth of UC campuses as a funcƟon of local populaƟon, holding capacity, service capacity, overcrowding, vacancy and replacement rates, AFFH etc ?
hƩps://lao.ca.gov/PublicaƟons/Report/3532/1
"No Agreed Upon OpƟmal Campus Size. LiƩle consensus exists on the ideal enrollment level and physical size of a campus.......
Though external constraints (such as environmental and community factors) exist for all campuses, these constraints typically can be overcome with creaƟvity, compromise, and monetary contribuƟons." ..new library...new bus staƟon hmmmm
The LAO assessment fails to menƟon lost $$$ from expensive legal acƟons and courts. thanks,
Kathy
p.s. here's some tables you might find interesƟng.
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3 On 10/12/2023 6:22 PM, Clara Stanger wrote:
Good Evening,
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4 The City has revised the HCD SubmiƩal DraŌ (6th Cycle) Housing Element that was submiƩed to HCD on August 30, 2023, based on preliminary comments provided by HCD. The revised document is available for public review at www.cityofsantacruz.com/housingelement. The public comment period runs from October 12, 2023 through October 19, 2023. Please email any comments directly to me.
Sincerely,
Clara Stanger
Senior Planner
City of Santa Cruz | Planning and Community Development 809 Center Street, Room 101, Santa Cruz, CA 95060
Main: 831-420-5110 | Direct: 831-420-5247
Email: [email protected]
Web: www.cityofsantacruz.com
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October 19, 2023
Ms. Clara Stanger
Senior Planner
City of Santa Cruz Planning and Community Development
809 Center St. Rm 101
Santa Cruz, CA 95060
Dear Ms. Stanger,
COPA appreciates the efforts of city staff, Mayor and Councilmembers in drafting the 6th Cycle Housing Element. We are most pleased with the creativity and commitment to identify viable parcels for development of new housing, along with policies to incentivize the development of housing of all types throughout the city. In time, we expect these policy choices will yield the creation of more housing and likely success at meeting the RHNA goals for our city. We look forward to the days when more units are available, particularly for the many families with children and local service and hospitality workers who desperately need below market rate homes if we are to continue to be a functioning community.
It will take years to see the results in new housing units, which is why COPA recommended policy ideas to support tenants who face the immediate pressures and threats of becoming homeless. Given the severity of the housing crisis, we would expect the City would be open to seriously explore multiple strategies, especially those that are rooted in hundreds of conversations that COPA has had with our members over the last 3 years.
In the early community meetings, COPA leaders asked if it was appropriate to propose tenant support policies in the Housing Element. We were encouraged by your consultants to contribute our ideas. We held a COPA civic academy attended by 81 residents in February attended by Mayor Keeley and Councilmember Brown. We submitted our suggestions and received your responses, some of which were rejected
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without any explanation (community or tenant purchase opportunity programs, in effect in some cities) while you explained that some already existed (local preference) which was instructive. You did incorporate two concepts we proposed, to provide “culturally responsive outreach” and increase the goal for the number of people served by the existing security deposit program.
However, we do want to state on the record that overall, we notice a lack of urgency and ambition to stem the tide of homelessness and displacement that faces most Santa Cruz tenants every single day. As the least affordable community in the nation, we expect more can be done to keep families housed through the policy options we proposed and expected more willingness to seriously consider community-generated solutions.
To be specific, regarding Policy 4.1a, we shared how the existing security deposit program is cumbersome, not well marketed, with language barriers and therefore, underutilized. Based on our comments in April, you increased your initial goal from assisting 50 households to 100 over the life of the planning cycle, justified by the “recent assistance trends.” Based on the stories our members have shared, the low number of “recent assistance trends” is more than likely due to the barriers to access the program and its poor design to meet the real-world situation facing tenants in a tight rental market. It is not sufficient to point to a program and check that box if the program itself needs to be evaluated and improved to have real impact for renters to stay housed.
Given the large number of rent-burdened tenants, (over 3000 pay more than half their income on rent), COPA expected to see more commitment to examine and improve this program.
Another opportunity to take immediate action to prevent tenants from losing their homes, is to provide a more robust system of legal assistance to teach both tenants and landlords the law, their rights and their respective responsibilities. Policy 6.3b states the City will continue to fund bi-lingual assistance, and let service providers know about funding opportunities, but the goal of reaching 50 households is unambitious and woefully disproportionate to the need. Given that more than 3000 households are rent burdened and housing insecure and the high degree of fear of retaliation or eviction inevitable in a tight rental market, a proactive and larger scale effort to ensure tenant and landlord education is necessary if we are serious about preventing homelessness.
These are just two of what could be a suite of strategies to assist renters who are facing the immediate and everyday pressure to stay housed, while at the same time, you pursue the longer-term goals of construction of new housing. As stated earlier, we commend the City for a robust plan and set of policies that we expect will lead to
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reaching the 6th cycle RHNA targets. At the same time, COPA expects our city staff and elected officials can do so much more to reduce the pressure on tenants, retain our local workforce and prevent families from losing their existing homes. We have a housing emergency. We stand ready to work together with you to seriously consider action on multiple fronts.
Sincerely,
Barbara Meister
On behalf of the COPA Housing Strategy Team
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Review of Past Performance
Appendix B
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Appendix B: Review of Past Performanc e B-2
Santa Cruz Housing Element Update
Review of Past Performance
This Appendix B provides a review of the City’s housing and program performance throughout the 2015 to 2023 planning cycle. In addition, this review also details the steps the City has taken to provide for the needs of special housing groups.
A.Program Evaluation for Households with Special Needs
As part of analyzing prior programs, this Appendix provides an outline of the effectiveness of goals, policies, programs, and objectives in meeting the housing needs of Santa Cruz’s special housing needs populations.
1. Seniors
Appendix C shows that 12.5 percent of Santa Cruz residents are over the age of 65. This has only been increasing while children and the middle-age population decreases. Seniors represented 8.7 percent of the population in 2010, 9.6 percent in 2015, and then jumped to 12.5 percent in 2020.
The Housing Choice Voucher (HCV) program provides subsidies to low-income, senior, and disabled households at varying levels based on household income. Through the Housing Authority of the County of Santa Cruz, Santa Cruz residents may receive TBRA voucher assistance. The Housing Authority tracks these vouchers by zip codes, which include areas outside of the City’s limits. The following provides the number of project-based and tenant-based vouchers granted throughout the 5th planning cycle. It is important to note that the numbers provided below are not just seniors.
Table B-1: TBRA Vouchers
Zip Code Project-Based
Vouchers
Tenant-Based
Vouchers Total
95060 88 655 743
65062 34 454 488
95064 0 3 3
95065 26 198 224
Total 148 1,310 1,458
Source: Santa Cruz County Housing Authority
Elderly homeowners generally tend to prefer to stay in their own homes as long as possible. If family members are nearby, they can also assist with basic care needs, enabling seniors to remain in their homes longer. However, this is not always possible. In the City of Santa Cruz, Seniors years 65 and older make up 39 percent of owner-occupied housing units and 12.1 percent renteroccupied housing units (4,089 and 1,474 units respectively). Senior Network Services helps match seniors in shared housing arrangements.
Additionally, the City worked with Habitat of Humanity to implement a pilot program, My House My Home, which is designed to help fixed income senior homeowners age in place by providing new or renovating existing ADUs on the property. The property owners can live in the ADU and
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rent out the main house to low income households to supplement their fixed incomes. Three ADUs have been constructed in Santa Cruz since the program began.
The City’s Downtown Senior Center at London Nelson provides senior residents with social networking opportunities through a variety of activities such as computer classes, social events, and weekday lunches. The Market Street Senior Center, located in a City owned building at 222 Market Street, also provides activities and programs for seniors. Additionally, home delivery by Meals on Wheels is available. Advocacy, Inc. provides a Long‐Term Care Ombudsman Program and the Patients’ Rights Advocate Program for seniors and disabled individuals living in residential care facilities. Para Cruz is a senior transportation service that is free to City residents.
During the 5th Cycle, the City worked with property owners to extend affordability agreements whenever possible. In 2021, the Arbor Cove Senior Housing project completed their rehabilitation of 22 units. This included critical and non-critical rehabilitation with most tenants not needing temporary relocation during the repairs.
2. Persons with Disabilities
Persons with disabilities may require varying accessibility improvements and may also have a limited ability to earn adequate income. Approximately 9.7 percent of the Santa Cruz population has at least one disability. The most common disabilities in Santa Cruz are cognitive, ambulatory, and independent living difficulties.
Persons with disabilities may experience difficulties locating accessible and affordable rental housing close to public transportation. The Santa Cruz County Human Resources
Agency coordinates federal, state, and county government funding for programs and services for disabled populations in the City. A number of services and facilities available to the community are listed in Appendix F.
During the 5th Cycle, Water Street Apartments was developed with 41 new affordable housing units. At least eight of those units are reserved for disabled persons, primarily serving developmentallydisabled individualswho would benefit from support services provided by Housing Choice and San Andreas Regional Center. The recently developed 36 units Redwood Commons project was also designed to be 100 percent
wheelchair accessible and has 13 units affordable to
extremely low- and very low‐income persons. Priority is given to mobility impaired individuals and their caregivers.
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The City provided assistance to the following social services for persons with disabilities:
• Vista Center for the Blind and Visually Impaired.
• Central Coast Center for Independent Living.
• Liftline (Community Bridges) provides transportation services. • Meals On Wheels (Community Bridges) provides a daily visit and a nutritious meal.
3. Persons Experiencing Homelessness
Homelessness continues to be an important issue in the region and throughout California. There are multiple factors that may contribute to a person experiencing homelessness; Appendix C provides a detailed definition of “homelessness” and an analysis of the City and County’s unhoused population. Resources available for persons experiencing homelessness are listed in Appendix F.
Like other communities in California, the City has been working hard to address very high levels of unsheltered homelessness. Key steps for the City have been to convene a Homeless Coordinating Committee to develop a series of short-term and long-term actions steps. The City also formed a Community Advisory Committee on Homelessness (CACH) that included City staff working with homeless representatives to come up with programs and policies to address homeless issues. City staff have worked extensively with the Santa Cruz County Continuum of Care (CoC), other jurisdictions, the community, and affected persons to develop and implement new programs, such as new emergency services, emergency shelters, and navigation centers, to address immediate needs. This has included coordinating with the Homeless Action Partnership (HAP) – now known as Housing For Health Partnership (H4HP) - Board and HAP Executive Committee to identify program priorities and make funding decisions for the California Emergency Solutions and Housing Program (CESH), Homeless Emergency Aid Program (HEAP), the Homelessness Housing Assistance and Prevention Program (HHAP), and for County and City funding sources.
The City coordinates closely with the Santa Cruz County CoC and all of its members. The CoC covers the entire geography of Santa Cruz County, including the Cities of Santa Cruz, Watsonville, Capitola, and Scotts Valley, as well as large unincorporated areas. The lead planning body for the CoC is the HAP, a community‐ wide action team that meets regularly. The City of Santa Cruz participates in all HAP meetings and takes a leadership position in the CoC by serving as a member of the HAP Governing Board, which makes key CoC and other funding and policy decisions, and of the HAP Executive Committee, which coordinates the activities of the County and Cities around a unified CoC strategy and plan for preventing and ending homelessness. The full HAP includes 30 active organizational and individual members representing all geographic parts of the county, as well as a broad range of stakeholder categories such as nonprofit homeless assistance providers, victim service providers, faith-based organizations, government departments, advocates, public housing authority, school districts, social service providers, mental health agencies, health providers, affordable housing developers, Veterans service providers, youth service providers, and persons with lived experience of homelessness.
The CoC and City of Santa Cruz work closely together to address the needs of varied homeless populations, including persons experiencing chronic homelessness, families with children,
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Veterans, unaccompanied youth, as well as the needs of persons who are at risk of homelessness.
These efforts are guided and defined by the CoC’s and the community’s 2015 homeless strategic plan, called All In -Toward A Home For Every County Resident (All In). All In provides the vision and framework for countywide coordination to address the needs of all homeless populations, and includes specific outcome goals, measurable indicators, and action strategies for addressing the following seven strategic priorities:
1. Transforming the Crisis Response System
2. Increasing Access to Permanent Housing
3. Integrating Systems and Community Support
4. Ending Chronic and Other Adult Homelessness
5. Ending Family Homelessness
6. Addressing Needs in South County
7. Initiating a Response to Youth and Young Adult Homelessness
8. Ending Veteran Homelessness
Discharge Planning is a key strategy for preventing homelessness by instigating changes within systems that regularly discharge people directly to homelessness. The County Homeless Persons’ Health Project (HPHP) leads implementation of policies and protocols for homeless people leaving hospital care. HPHP’s Project Connect provides frequent users of emergency rooms with intensive services to prevent hospitalization and homelessness. Hospital discharge planners contact HPHP when a homeless person is hospitalized. HPHP nurses and caseworkers visit and coordinate with all hospitals (and 6 community clinics) to ensure homeless people receive case management and housing upon discharge. For Medi-Cal individuals discharged from a hospital stay, the first step is often a recuperative care program, such as the 12-bed Coral St. recuperative care unit or the medically frail motel program of Community Action Board. HPHP also works with the following providers (among others) to place those who are ready into long-term housing. • Santa Cruz Health Center – A sister program in the County Health Services Agency, and the location of North County Mental Health services, the Emeline clinic provides many of the same services as HPHP, as well as: X-rays, Psychiatric Services, HIV/AIDS screening, orthopedic services, and more.
• Central California Alliance For Health – The main provider of Medi-Cal benefits in Santa Cruz County, HPHP works closely with Alliance team members to obtain Medi-Cal coverage for eligible clients, meets with our Project Connect Team to refer clients, as well as provides grants for programs meant to improve the level of care for our clients. • Homeless Action Partnership (HAP) – The HAP is a collaboration of the five jurisdictions in Santa Cruz County (the County and the Cities of Santa Cruz, Watsonville, Capitola and Scotts Valley) along with homeless housing and services providers, and acts as the local Continuum of Care. HAP contributors account for approximately $2.3 Million each year for housing subsidy and supportive services.
• Front Street Housing Inc. – The landlord proxy for clients in our MATCH (Meaningful Answers to Chronic Homelessness) housing program, Front St. works with both landlords and tenants on securing and maintaining housing for qualifying and homeless individuals.
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• Planned Parenthood of Mar Monte – Planned Parenthood (located on Pacific Avenue), is the Primary Care Physician (PCP) for hundreds of homeless people throughout the county. • Dientes Community Dental Care – Dientes “fills the gap” of affordable, much needed dental services for the homeless in Santa Cruz County. Dientes sees referred patients on the Coral Street Campus, at the Watsonville Health and Dental Center, and at their location in Soquel.
• Watsonville Health and Dental Center – Located at 1430 Freedom Blvd. in Watsonville, their child health and immunization program, family planning services, breast cancer early detection program, and general healthcare services meets the needs of thousands of patients annually in South County. HPHP staff provide medical case management, behavioral health, and outreach services in South County from this location. • Encompass Community Services – The largest non-profit agency in the county for homeless, low-income, transitional age youth, and similar populations, Encompass serves as the money manager for a percentage of our clients, along with providing shelter beds, mental health programs, and many other programs throughout the county. • Homeless Services Center – Serving the homeless, and located on the Coral Street Campus, HSC consists of the Rebele Family Shelter, Paul Lee Loft, Page Smith Community Housing, and other related programs.
• Recuperative Care Center (RCC) – a twelve-bed, respite care center for homeless persons being discharged from the hospital but requiring additional care and rest. Working with the Homeless Services Center, Dominican Hospital, and other community partners, HPHP is responsible for processing referrals and intakes, as well as providing medical care for each of the clients during their stay of up to 6 weeks. • Janus of Santa Cruz County – We work closely with Janus of Santa Cruz County to coordinate detox, residential treatment, methadone treatment, and sober living environments for our clients seeking treatment from substance use disorders.
During the 5th Cycle, outreach to the homeless community and organizations serving or advocating for the homeless occurred via multiple formats, include a survey which was distributed widely through Housing Matters social media outlets and the City’s Citizen Advisory Committee on Homelessness (CACH). At the December 17, 2019, CACH meeting, there was a discussion on needs and priorities to inform the City’s Consolidated Plan. City staff participated in community discussions on ending homelessness led by Housing Matters and hosted at the downtown library (August 15, 2019, September 26, 2019, November 7, 2019, and February 12, 2020). In addition, City staff participated in Councilmember Drew Glover’s community discussions on housing and homelessness needs and priorities in the City (November 13, 2019, and November 20, 2019).
Several projects are currently in the pipeline to provide housing for persons experiencing or atrisk of homelessness:
• 119 Coral Street (Harvey West Studios): A building permit application has been submitted to provide 120 studio units of supportive housing.
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• 818 Pacific Avenue (Pacific Station South): City-sponsored and will contain a minimum of 25 percent of the project’s 70 units as supportive housing units. The building permit were issued in June 2022 and the project is currently in construction. • 902 Pacific Avenue (Pacific Station North): City-sponsored and will contain a minimum of 25 percent of the project’s 128 units as supportive housing units. The project’s entitlements were approved in June 2021.
• 532 Center Street (Cedar Street Apartments): A mixed-use development consisting of 2,210 square feet of commercial retail space, 65 residential units 100 percent affordable (25 percent as supportive housing), and a public paseo. Entitlements were approved in May 2022 and lease up is anticipated for early 2024.
• 314 Jessie Street (Jessie Street Apartments): A 100 percent affordable housing project that will have 25 percent of the 50-unit project for supportive housing. The City is currently reviewing the building permit application submitted in September 2022.
4. Extremely Low-Income Households
Extremely low-income households are those that earn 30 percent or less of the area median income (AMI) for Santa Cruz County. According to CHAS (Comprehensive Housing Affordability Strategy) Data, there are approximately 5,640 extremely low-income households (25 percent of total households) in the City of Santa Cruz. Extremely low-income households are generally more likely to experience overpayment, overcrowding, or substandard housing conditions, and are more likely to include transitional and supportive housing.
The City offers assistance in accessing local, state, and federal funding for affordable housing, as well as technical assistance. Throughout the 5th Cycle, the City facilitated the development of affordable housing, including those listed below:
• Riverfront & Casa del Rio Apartments: 71 existing affordable units, including 32 units converting to affordable, were awarded with affordable housing tax credits and a taxexempt bond to rehabilitate the property, extending their affordability covenant for another 55 years.
• 801 River Street Project: New Way Homes is getting underway with a rehabilitation of a seven-unit conversion project that will increase the City’s affordable housing supply. • 350 Ocean Street Project: a 63-unit 100 percent affordable rental apartment building. • 180 Coral Street Project: a permanent supportive housing project with 121 units. • Pacific Station Project: the City has been acquiring parcels to assemble affordable housing sites in the downtown and is partnering with an affordable housing developer for Phase 1 of the development. Pacific Station South consists of a mixed-use development with 70 affordable residential apartments (includes a manager’s unit) and commercial space, amenities, and medical offices. Pacific Station North consists of a mixed-use development with 125 affordable units (includes a manager’s unit), as well as commercial and office space.
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• Jessie Street Project: MidPen Housing project to demolish its 14-unit affordable housing development and construct a new, 50-unit affordable apartment complex that will significantly add to the City’s affordable housing supply. • 415 Natural Bridges Drive: a 100 percent affordable, 20 unit SRO project. • Downtown Library and Affordable Housing Project: Between 100 to 125 units of extremely low, very low, and low income housing units are proposed in conjunction with a modern, accessible library, childcare facilities, and a parking structure. The project also includes approximately 10,000 square feet of commercial tenant space and will have roof decks available to tenants and library patrons.
5. University Students
Students are a unique portion of the City’s population as they may live in the City temporarily and/or live on-campus. In addition, students are rarely able to work full-time while attending school full-time. As such, they have much more limited disposable income for housing and often seek roommates to share rental and living costs. Through community outreach to student renters, participants shared stories of living with eight or more roommates in a home or living in illegally converted “bedrooms” (such as boiler rooms), unpermitted backyard structures, and personal vehicles.
The City and the University of California, Santa Cruz have a settlement agreement that requires the University to provide housing for approximately two-thirds of its student population. The University’s Long Range Development Plan proposes to provide up to 10,125 on-campus beds, 579 off-campus beds, and 443 faculty and staff housing units. The University has plans to build additional housing that have been stalled due to several lawsuits to prevent the construction of this housing. Therefore, as noted in Program 3.5 in Table B-2, the University has met its housing requirements by converting spaces designed for lounges into rooms and adding beds to rooms designed for fewer beds. The City continues to regularly meet and work with the University to identify opportunities to provide more housing options for students, staff, and faculty.
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B. 2015-2023 Program Accomplishments
Table B-2 provides detailed, program-specific accomplishments for 2015-2023. The City has demonstrated significant effort in working towards accomplishing many of the objectives established in the 2015 to 2023 Housing Element. The City’s successful programs have been identified as ongoing for the 6th Cycle. Various programs have been modified in the 6th Cycle Policy Plan to account for new requirements, changes in State Law, and to better accomplish the City’s goals.
Table B-2: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments
Status for Sixth
Cycle
Goal 1. An adequate diversity in housing types and affordability levels to accommodate present and future housing needs of Santa Cruz residents.
Program 1.1 Providing new housing to accommodate
projected employment and population growth and to
meet the needs of existing residents is a major
objective of the City. To that end, the Housing Element identifies “adequate” sites to accommodate the City’s
share of the region’s housing needs from 2015-2023.
Adequate sites are those with sufficient development
and density standards, water and sewer services, and
adequate infrastructure. The Vacant Land Inventory
(Appendix B), in concert with an underutilized land
survey (Appendix D), shows that housing can be
accommodated on vacant land, underutilized sites
along major corridors, in the Central Core, and on
larger housing opportunity sites.
Maintain an inventory of available
vacant and underutilized sites that
can accommodate new housing.
The City annually updates available vacant and underutilized sites.
Modified to
remove
objectives that
relate to the sites
strategies from
the 5th Cycle and
add new
objectives to
promote
residential
development and
comply with State
requirements.
Require the preparation of Specific
Plans or Area Plans for larger
developable residential areas
identified in the Land Use
Element.
Completed – The Downtown Plan was amended in 2017 to
extend Additional Height Zone A to Laurel Street and modifying Additional Height Zone B for the Front Street Riverfront properties, with an intent to create opportunity for additional housing units in these zones. Specifically, the amendments increased allowable building height in the area bounded by Pacific Avenue, Front Street, Cathcart Street, and Laurel Street from 50 feet to 75 feet and up to 85 feet for a smaller portion of the sites larger than 50,000 square feet. In the area bounded by Front Street, the Riverwalk, Soquel Avenue, and Laurel Street, the amendments increased allowable building height from 50 feet to 70 feet under specific conditions. The changes to the additional height zones have facilitated approval projects in these areas including three under construction with a total of 465 new residential units (100 Laurel Street, 508 Front Street, 818 Pacific Avenue) and two projects that have obtained land use entitlements for a total of 370 additional units (902 Pacific Avenue and 530 Front Street)
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Table B-2: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments
Status for Sixth
Cycle
A Planned Development project was completed on Golf Club Drive that retained an existing unit and provided 10 new units of supportive housing for developmentally disabled individuals, including one affordable unit. There have been some discussions related to a potential project on the
Swenson parcel by Antonelli Pond.
Continue to require housing
production goals for the larger
housing opportunity sites
described in the Land Use
Element.
The City is continuing to review applications to promote housing production. Generally, projects are required to be developed at the high end of the density range unless there are physical or environmental constraints on the property that prevent this density. Regarding specific sites described in the Land Use Element, the Planned Development project on Golf Club Drive has a density of 7.3 units per acre, at the high end of the Low Density Residential land use designation as required by General Plan policy LU 1.1.5
Program 1.2 Recognizing the limited availability of
land and the City’s commitment to preserve open
space, the General Plan encourages a compact urban
form. High density development, mixed uses, transitand pedestrian-oriented land uses, and other creative housing types are encouraged. To that end,
the City’s Zoning Ordinance currently allows higher
densities, reduced parking requirements, and higher
building heights for residential projects in the Central Core and along major corridors. The City also
financially supports many of the projects in the
Central Core. Since 2007, the City’s policies have
facilitated more than 400 multifamily units and 70
single-room occupancy units in commercial districts.
Establish mixed-use development
standards to encourage housing
along transit corridors, including
density levels, parking and open
space requirements, and other
development standards.
Completed – The City adopted Objective Development
Standards in December 2022 that include specific standards for mixed use zones.
Modified to
remove
completed
objectives and
add new
objectives in line
with plans the
City is currently
undertaking.
Encourage the redevelopment of
existing single-story commercial
buildings to include upper story
residential units, where feasible.
The City is continuing to redevelop throughout the
community, including several recent projects either adding units above an existing single-story building or replacing a single-story building with a taller, mixed-use building. The City has implemented ordinances and zoning changes to
facilitate additional housing and mixed-use buildings by amending parking regulations to eliminate parking
requirements consistent with AB2097 and to implement
mixed use zoning along commercial corridors. The City has
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Table B-2: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments
Status for Sixth
Cycle
The City will continue to focus on mixed use to
expand housing opportunities.
permitted several projects that redevelop a site with existing commercial buildings or parking areas into mixed-use projects with upper floor residential uses. Those include 11 projects with entitlements approved, adding 915 new housing units; four projects under construction, adding 515 units, and three projects with construction completed in the last housing cycle, with a total of 119 housing units.
Encourage the redevelopment of
existing projects with large parking
lots to add housing units above
existing development, taking
advantage of shared parking
potentials.
There are currently several projects in the pipeline that would redevelop parking lots to add mixed-use projects with significant amounts of affordable housing: the Pacific Station North (902 Pacific Ave.) and Pacific Station South (818 Pacific Ave.) projects, the Cedar Street Family Apts. (approved pursuant to AB2162) (532 Center St.) and the Library Mixed Use Project (119 Lincoln St.). As of 2023, a building permit application was issued for Pacific Station South, the Cedar St.
Family Apartments were under construction, entitlements were approved for Pacific Station North, and the Library Mixed-Use Project obtained entitlements. These projects create a total of 387 new dwelling units, including 386 affordable units.
Examine the possibility of utilizing
graduated density for mixed-use
development.
Completed – The City determined there are too many
variables to have blanket policy, particularly related to parcel depth adjacent to lower density neighborhoods.
Program 1.3 Santa Cruz faces the challenge of
meeting the housing needs of residents, particularly
given the needs of single-person households, small
families, and special needs groups. Given diminishing
vacant land and a diversity of housing needs,
alternative housing types will need to be built in a
creative manner on less than optimal housing sites.
Create and/or revise development
standards for co-housing,
live/work, and other alternative
and appropriate housing types
that respond to Santa Cruz’s
diverse population and housing
needs.
Completed – Several live/work projects are underway using current standards. ADU standards were updated in 2018,
2019, 2020, and 2022 to comply with changes in State law.
The City's Density Bonus and Inclusionary Ordinances were also updated in 2020 to comply with changes in State law.
The City revised its Small Ownership Unit ordinance into a Modified to
remove
completed
objectives and
add new
objectives to
further facilitate
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Table B-2: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments
Status for Sixth
Cycle
To that end, the City revised its Zoning Ordinance to
facilitate development of live-work, single-roomoccupancy units, and accessory dwelling units (ADU).
Flexible Development Unit in 2021 and created requirements for Live-Work units through the Objective Standards process. and streamline
ADU
Continue to implement the ADU development.
program and monitor the effect of
ordinance revisions on
neighborhood vitality.
ADUs continue to be one of the City's most prolific
development types. The City continues to implement and
update the ADU ordinance, both to comply with State law changes and to encourage additional ADU development. The ADU ordinance was updated in 2015, 2016, 2019, 2020, and 2022, with major changes to the ordinance to facilitate ADU development in 2019-2022. Aligning with these updates, the number of ADU permits issued increased, ranging from 56 in 2019 up to 88 in 2022 as compared to 30-55 permits issued per year in 2016-2018.
Examine development regulations
to identify potential barriers to the
development of alternative types
of housing and, if such barriers are
found, develop actions to remove
or modify them as feasible.
Completed – In 2021, the City reviewed the SRO (SingleRoom Occupancy) and SOU (Small Ownership Units) ordinances and determined that the SOU unit type was not successful and, therefore, replaced it with the Flexible Density Unit.
Encourage the State to recognize
appropriate non-traditional
housing types as housing units.
Completed – The City meets with our lobbyists at the
beginning of each legislative cycle to discuss priorities which consistently include bills that support affordable housing., and the City's lobbyists includes this in their scope of work.
The City’s lobbyists successfully lobbied our state legislators for $15 million in the state budget for homelessness
response purposes. Over half of this amount has been
dedicated to homeless shelter use, acquiring property to be used for homeless services and permanent supportive/ELI housing, and completing a Coral St. Visioning exercise that includes direction to facilitate permanent supportive
housing, affordable housing, and homeless services.
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Table B-2: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments
Status for Sixth
Cycle
The City has also connected with staff of a state
representative, initiated conversations with UCSC, and
initiated research to inform discussions about non-traditional housing types
Program 1.4 The Planned Development Permit (PD) is
an administrative technique to foster development
plans that serve public objectives more fully than
plans permitted under conventional zoning. In such
cases, the City will consider modifications to: 1)
building setbacks, lot coverage, and lot area; 2) street standards; 3) parking and loading; 4) open space and
landscaping; and 5) maximum height. The PD permit
has been used successfully to facilitate a range of
housing projects in recent years. To be eligible for a
PD permit, however, the project must occupy a lot of
at least 20,000 square feet in area and be approved
by the Planning Commission and City Council. The
minimum lot size requirement could, in some cases,
constrain the production of nontraditional housing
on smaller infill lots.
Examine the minimum lot size
requirement for Planned
Development Permits and
consider amending the Zoning
Ordinance to allow PD Permits on
smaller infill lots if appropriate.
The City has processed 11 Planned Development Permits
associated with housing projects or mixed use developments that have been under review, entitlements approved, under construction, or construction completed within the 5th cycle, making up 289 residential units. It should be noted that with recent changes to State density bonus law, developer interest in Planned Development Permits has declined significantly as they prefer the density bonus option as a means to vary from development standards in order to create new housing. Since the State density bonus law changes took effect in 2021, the City received only one Planned Development Permit application.
Therefore, while the City will consider reviewing making changes to the Planned Development Permit in 2023, it is not clear whether such changes would substantially increase housing production in the City.
Modified to
remove the
completed
objective and
revise objectives
to further assess
potential
constraints in the
PD process and
allow PD permits
on smaller infill
lots.
Examine parking requirements and
other regulatory constraints that
may deter the development of
Planned Developments. Initiate
study within 1 year of adoption of
the Housing Element.
Completed – The City revised its parking standards for all development in 2020 to lower parking requirements, with revisions within the Coastal Zone certified by the California Coastal Commission in 2021. Additional parking revisions were included in the Objective Standards Ordinance in 2022.
Program 1.5 Housing developers undertake the risk
of purchasing property, borrowing funds, and
drafting architectural and site plans in anticipation of building new housing. In addition to these
investments, developers must secure various
Work with the development
community to continue to
streamline the project and design
review processes to provide a
The City adopted a new Public Outreach policy in 2018 that requires larger projects to meet with the community early in the development process to ensure community input,
providing more certainty to developers who respond to
community comments.
Modified –
objectives have
been continued
but are located
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Santa Cruz Housing Element Update
Table B-2: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments
Status for Sixth
Cycle
permits, pay planning and impact fees, and comply
with environmental regulations. These investments
are financially attractive only when the development
review process has reasonable certainty. The
development community has expressed concern that
the cumulative impact of project review procedures,
fee structures, and the public hearing process may, at
times, constrain the development of housing. To that
end, the City should undertake a periodic review of
such processes.
greater level of certainty in the
outcome of housing proposals.
under different
policies.
Periodically audit the effectiveness
of the development review
process to promote efficiency and
predictability.
The city is considering doing a new audit on the development review process. Process mapping for project entitlements and building permits occurred in 2021, along with
consultation on process flows with software providers in anticipation of permit tracking system upgrades, originally anticipated to begin in 2022. However, it was put on hold by the IT department due to issues with the vendor. The
upgrades are anticipated to restart in 2023.
Review the existing development
fee structure, including water and
sewer connection fees, to
determine if the current structure
is appropriate and equitable.
While some fees, particularly for ADUs, have already been adjusted; a city-wide fee study is being considered.
Review and adjust the fee
structure for Single Occupancy
Units and propose changes for City
Council consideration as
necessary.
One Single Occupancy Unit (SOU) project was constructed in the City during the 5th cycle. After completing a review of the SOU ordinance, the City found that use restrictions and development standards in the ordinance created the greatest impediment to development of SOU units, rather than fees, which are based on square footage as required for any type of multi-family residential use. Therefore, the City amended the Zoning Ordinance in 2022 to eliminate SOUs and instead
create a new type of unit called a Flexible Density Unit (FDU), which removed barriers to development by exempting FDUs from density limitations, providing more flexibility with regard to unit size and configuration, allowing units to be rented or sold, and allowing developments with FDUs to also include other types of units, among other changes.
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Appendix B: Review of Past Performanc e B-15
Santa Cruz Housing Element Update
Table B-2: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments
Status for Sixth
Cycle
Review the development
standards in the Zoning Ordinance
and considered impediments to
housing development.
Completed – The City has concluded the initial review, with tasks to be undertaken as time permits. In 2020, the City made several amendments to the Zoning Ordinance to maintain consistency with state law regarding subdivisions, ADUs, and density bonus; to improve and streamline application processing in terms of permit modifications, eliminating public hearings for minor Administrative Use Permits; to eliminate Design Permit requirements for minor projects such as small accessory buildings; to create more flexible standards for duplexes on corner lots; and to create more flexibility in residential parking requirements, In 2022, the City made significant revisions to the Zoning Ordinance to implement objective development
standards for new residential and mixed-use development and to streamline the approval process for fully conforming projects; to create mixed-use zone districts along major transportation corridors; to eliminate the Conditional Driveway Permit; to eliminate a public hearing requirement for parking variations; to streamline permits for development on or adjacent to slopes; and to maintain consistency with state law with regard to relocation assistance, replacement housing requirements, and small and large family daycares. The City also made changes to the ADU ordinance in 2015, 2016, 2019, 2020, and 2022 to eliminate impediments to development of these units and maintain consistency with state law. In 2023, the City updated the Zoning Ordinance to reflect elimination of parking
requirements within a half mile of a major transit stop consistent with state law.
Consider revising the Zoning
Ordinance to reflect policies of the
General Plan 2030 that would
Completed – The City revised the Zoning Ordinance to
modify the Slope Regulations, limiting which permits require public hearings and at what hearing body, and implemented the objective development standards, clarifying standards for
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Santa Cruz Housing Element Update
Table B-2: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments
Status for Sixth
Cycle
remove or lessen constraints on
housing development.
development. In addition, the City implements regulations set forth by state law SB330 requiring the general plan density to supersede regulations in the Zoning Ordinance that would otherwise limit the development potential of a project to a density less than allowed under the general plan.
Program 1.6 Meaningful and informed public
participation helps ensure that proposals for new
housing meet community expectations and are
consistent with the City’s General Plan. Santa Cruz
offers many venues for residents to learn of
proposed projects and provide meaningful input.
Continue to provide accurate and
clear information to the public and
the development community
about City policies and the
development review process and
make such information available
at the public counter.
The City adopted a new Public Outreach policy in 2018 that clarifies what projects require public outreach and the various forms it should take. Meetings are scheduled
multiple times per year with the development community to understand how communications can be improved. Website
updates are continuous and ongoing, with information
posted about projects currently under review, providing additional information to the public.
Modified to
update language
and add more
specific
objectives.
Continue to develop educational
materials such as brochures and
videos that provide information on
the development process,
planning, and housing issues as
programs change.
The City is committed to continuously develop educational materials, particularly as ordinances are revised and
updated. This information is posted on the City’s website, included on social media platforms, and sent out in emails to those who have signed up online to received information on various topics as well as on specific projects.
Continue to ensure that
information is accessible and
available to all members of the
community on the City’s web page
and at the public counter.
The City is committed to ensuring information is accessible and available to all members of the community, with updates related to development projects, ordinance revisions, and policy documents occurring throughout the process. The
Planning Department has developed a new process to
provide information about current projects on the website.
In addition, people can sign up to be notified when specific projects or projects related to specific topics are being reviewed or going to public hearings.
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Santa Cruz Housing Element Update
Table B-2: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments
Status for Sixth
Cycle
Program 1.7 The City recognizes that mixed income
neighborhoods provide a variety of benefits to the
City including a chance for residents to learn from
others of different backgrounds and interests. This
helps to broaden perspectives and deepen
understanding of other people’s values and points of
view, leading to more respect and understanding.
The City has an interest in encouraging such projects
and neighborhoods.
Develop zoning tools to provide
incentives to the development of
mixed income projects.
Completed – The City’s Inclusionary Ordinance requires
twenty percent of new units in housing projects to be
affordable to lower income households within each project and the inclusionary units are required to be disbursed throughout the development. In addition, the City has
updated the density bonus regulations in the Zoning
Ordinance to maintain consistency with state law. In 2022, the City updated the Zoning Ordinance to create Flexible Density Units (FDUs), units that don’t count toward density limitations and that can add more units to a housing or mixed-use development that are smaller and therefore more affordable by nature.
Modified with a
focus on the
Inclusionary
Ordinance.
GOAL 2. Increased and protected supply of housing affordable to extremely low-, very low-, low-, and moderate-income households.
Program 2.1 The City’s Inclusionary Housing Program
is an important means of encouraging new affordable
housing. Measure O states that “at least 20 percent
of those housing units newly constructed for sale or
rental each year shall be capable of purchase or
rental by persons with average or below average
incomes.” Pursuant to an ordinance amendment
approved in 2018, the City requires projects built
after 1991 that contain five or more units to set aside at least 20 percent as affordable in perpetuity. Rental units must be provided as affordable to lower income
households. Since its inception, more than 576
affordable units have been created, but significant
City assistance has been necessary to offset high land
costs, prevailing rents, and ordinance requirements.
This trend is problematic given continuing cutbacks in
local and state funding. The City will review other
Revise the Inclusionary Housing
Ordinance to reflect recent legal
decisions.
Completed – This Ordinance was revised in 2018, 2019 and 2020.
Modified to
remove
completed
objectives and
add newer
objectives.
Review the Small Ownership Unit
and Single Room Occupancy
Ordinances to consider ways to
make them more effective in
today's market.
Completed – In 2021, the City reviewed the SRO (SingleRoom Occupancy) and SOU (Small Ownership Units) ordinances and proposed a revision that would combine
these ordinances to a single ordinance for small units. The revisions were adopted in 2022 and are now in review with the Coastal Commission.
Prioritize a portion of public
housing funds for 100% affordable
housing projects that include the
extremely low-income household
housing category.
Recent projects including units for extremely low-income households include the Library Mixed Use project, 818 Pacific Ave, and 902 Pacific. The City will continue to set aside funds in the future. In addition, the inclusionary requirement for SRO units is for very low income units. In recent years, due to changes in State Density Bonus law, the City is receiving many density bonus projects that choose to provide their affordable housing requirement as fifteen percent very low
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Santa Cruz Housing Element Update
Table B-2: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments
Status for Sixth
Cycle
potential revisions at the time that the rental
requirement is revised.
income and five percent low income units. The combination of SRO projects and density bonus projects has helped the City meet its 5th Cycle RHNA.
Program 2.2 The City may provide regulatory and/or
financial incentives to facilitate affordable housing
production, particularly in the case of inclusionary
units not otherwise able to secure additional State
and federal financial assistance. The City may also
provide low interest loans, land write-downs,
infrastructure improvements, Affordable Housing
Trust funds, and other financial assistance for
affordable housing. The Planned Development
Permit, in tandem with regulatory and financial
incentives, can further encourage the production of
affordable housing. City staff is committed to
expeditiously processing development proposals for
affordable housing.
Identify residential projects for
City financial or regulatory
incentives subject to City Council
approval.
The most recent incentives were granted to the 902 Pacific Avenue and 818 Pacific Avenue affordable housing projects.
The City will continue to identify residential projects.
Modified to
update
objectives.
Direct City lobbyists to
concentrate on legislation that
would help fund affordable
housing.
This is a current part of the direction given to the City's lobbyist, and the Governor has recently dedicated funding for housing, including affordable housing.
Starting in 2018, staff advocated for legislation to use proceeds from bonds issued by the former redevelopment
agency (RDA) for affordable housing purposes and facilities for homeless persons rather than decreasing the bonds. The bill, AB411 (Stone), authorizing the $16M of expenditures by the City of Santa Cruz was passed by the State Assembly and Senate. It was vetoed by the Governor, however, on October 13, 2019.
Encourage "citizen lobbyists" on
issues related to housing,
particularly affordable housing.
This work included by the Housing Blueprint Subcommittee of the City Council. The new Council Community Outreach Policy encourages broader citizen participation.
Explore the possibility of
establishing a Real Estate Transfer
Tax to help fund affordable
housing.
The City considered taking an initiative for a Real Estate Transfer Tax to the voters in 2018 but determined not to at that time as there were several other City and County tax measures on the ballot.
Explore the potential of dedicating
a portion of TOT, either existing or
new percentage, for affordable
housing.
The City considered taking a measure to the voters to
increase the TOT to set aside a portion for affordable housing in 2018 but determined not to at that time as there were several other City and County tax measures on the ballot.
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Santa Cruz Housing Element Update
Table B-2: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments
Status for Sixth
Cycle
Program 2.3 The City’s density bonus ordinance
implements California’s Density Bonus Law, and
allows a developer to construct 35 percent more
units than allowed under the Zoning Ordinance for
projects that dedicate 10 percent of units for very
low-income households or 20 percent for low-income
households and for qualified residents such as
seniors. The Density Bonus program includes the
opportunity for developments of at least five units to
utilize up to three incentives. The Density Bonus
Program continues to be a valuable tool, in tandem
with the Affordable Housing Ordinance, to allow
developers to build additional housing units which
help subsidize the inclusion of affordable units in the project.
Amend the density bonus
ordinance to reflect findings from
recent court cases.
Completed – The City’s density bonus regulations were
updated in 2017, 2018, and 2020.
Modified to
remove
completed
objectives, and to
continue
implementing the
program in
compliance with
newer updates to
State law.
Continue to implementation of the
density bonus ordinance.
The City continues to update the Density Bonus Ordnance to comply with changes in State Density Bonus law, including Ord. 2017-20 in 2017, Ord. 2018-10 in 2018, and Ord. 2020- 23 in 2020.
Evaluate and revise the City
residential development standards
to ensure housing projects can be
built at the maximum density
allowed under the underlying
district.
Completed – The original update was completed in 2017.
With new State requirements, new updates will be
completed in 2022. In 2021, the City approved an increase in the number of affordable supportive units allowed by right under AB2162 to 100 units for one project and 120 units for another. More work will be done regarding development
agreements anticipated in the 2021-2023 time period.
Program 2.4 In today’s housing market, creative
approaches and partnerships are required to finance
and build affordable housing. The County Housing
Authority, Eden Housing, Mercy Housing California,
MidPen Housing, Habitat for Humanity, For-theFuture Housing, Santa Cruz Community Counseling Center, Inc., and other housing groups and agencies
offer expertise in developing and managing
affordable housing. In addition, the City has
partnered with nonprofit developers to build
housing. The City has granted regulatory concessions
(such as density bonuses), subsidized the
replacement of infrastructure, modified development
regulations, lowered development and impact fees,
and provided direct assistance to such groups.
Continue to encourage publicprivate housing partnerships as a means to incentivize the
production of affordable housing
and build local capacity to manage
such projects.
The City has worked with a number of affordable housing developers including those listed. Specific projects built or underway through these partnerships include 314 Jessie St (48 VLI units, 2 manager units), 818 Pacific Ave (20 ELI, 39 VLI, 10 LI, 1 manager unit), 902 Pacific (29 ELI, 63 VLI, 34 LI, 2 manager units), 708 Water (11VLI, 29 LI, 1 manager), 350 Ocean (42 VLI, 20 LI), and 119 Lincoln (approx. 124 units, 114 ELI and VLI, 10 LI).
Modified to
include more
specific
coordination
efforts and
partnerships.
Explore creative approaches to
developing and financing
affordable housing in partnership
with private developers.
The City has partnered with affordable developers to obtain additional State HCD funding to finance affordable projects, including the Local Housing Trust Fund program, Affordable Housing Sustainable Communities program, and Infill &
Infrastructure program.
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Table B-2: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments
Status for Sixth
Cycle
Working with affordable housing developers enables
the City to better provide high quality and affordable
housing. The City’s Economic Development
Department cultivates public-private partnerships to
develop affordable housing. The most recent publicprivate partnership projects in the City are Pacific Station and the Library Affordable Housing projects.
The City is also pursuing also pursuing a Pro Housing
Designation from the State to facilitate future applications for affordable housing funds.
Program 2.5 Apartments provide affordable housing
opportunities for low- and moderate- income
households. To preserve these units, the City
prohibits the conversion of apartments to a
community housing project (for-sale housing) as long
as the multifamily dwelling vacancy rate is less than 5 percent. This restriction is waived if at least twothirds of the units are sold to tenants currently occupying the structure and 20 percent of the total
units are offered for purchase to households of
below-average income. In addition, three mobile
home parks provide a total of 360 homes for
residents. To protect the supply of such housing, the
Mobilehome Rent Stabilization Ordinance regulates
rent increases and other related actions to ensure
adequate noticing, findings, and relocation assistance
in case of a conversion.
Continue implementation of the
Condominium Conversion
Ordinance.
As a duty of the Planning Department, the City is continuing to implement the Ordinance.
Continued as part
of Policy 6.4.
Maintain current mobile home
rent stabilization and conversion
regulations to preserve 360 mobile
homes in parks in the community.
The City has done a good job at preserving the mobile parks in the community and will continue to do so.
Program 2.6 Santa Cruz has approximately 1,600
units of affordable housing for very low, low, and
moderate-income households created through
various City, State and federal programs. Although
Measure “O” (Inclusionary) units built after 1991 are
permanently affordable, the affordability controls of
Work with interested agencies and
community organizations to
preserve at-risk units by
monitoring their status, providing
technical and/or financial
assistance in return for extended
The City works with the Housing Authority to help preserve at-risk units. Many units that appear to be at risk are part of a Section 8 program, which renews every five years. Thus, the City has been working with individual property owners to provide incentives to maintain affordability.
Continued.
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Appendix B: Review of Past Performanc e B-21
Santa Cruz Housing Element Update
Table B-2: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments
Status for Sixth
Cycle
485 affordable units are at risk of expiration between
2014 and 2028. The City’s Affordable Housing
Preservation Ordinance governs noticing procedures
for the conversion of at-risk affordable units and
allows the City and qualified nonprofit housing
organizations an opportunity to negotiate to
purchase the project or extend the affordability
restrictions. In addition, the City plays an active role in financially assisting at-risk projects in return for extended affordability controls on the projects.
affordability controls, and
ensuring proper tenant
notification prior to project
conversion.
Assist projects approved by City
Council in return for extensions of
their affordability controls for as
long as feasible.
The Economic Development Department works with
property owners to extend affordability agreements
whenever possible. In 2021, the Arbor Cove Senior Housing project completed their rehabilitation of 22 units. This included critical and non-critical rehabilitation with most tenants not needing temporary relocation during the repairs.
Similarly, the City also worked with Mercy Housing to extend the affordability of the Sycamore La Playa affordable housing development as part of a rehab.
GOAL 3. Accessible housing and appropriate supportive services that provide equal housing opportunities for special needs populations.
Program 3.1 Santa Cruz recognizes the importance of
a living environment conducive to families and
children, and is committed to the development of
affordable and accessible family housing in the City.
In recent years, the City has entered into owner
participation agreements with Grace Commons, Easy
Access Developers for 1606 Soquel Avenue, and
various other ownership and rental projects to
facilitate and encourage the development of
affordable family housing. Additionally, the City
provided financial assistance to the Tannery Artist
Lofts complex of 100 affordable units that includes 14
studios, 16 one-bedroom, 28 two-bedroom, and 42
three-bedroom units.
Work with nonprofit organizations
to identify proposed housing
projects suitable to families with
children and consider providing
financial assistance, subject to
availability and City Council
approval, to facilitate and
encourage their development.
The City's population of families with children is shrinking, so the need for this housing type can generally be met by the current development market. That said, City-sponsored
affordable housing projects include some 2+ bedroom units that can accommodate families. Staff will continue to
evaluate if additional family housing is needed that is not being met by the development market, and the City will look into working with affordable housing developers to provide this housing type. The City's Security Deposit Program, sponsored by the City of Santa Cruz and administered by the Housing Authority of the County of Santa Cruz, provides security deposits for low-income households, including
families with children. Recent policy considerations related to Flexible Density Units can facilitate production of small, two-bedroom units that can accommodate small families.
Modified. As the
general needs of
family households
are met through
the current
housing market,
this program has
been modified to
focus on
providing for the
needs of lowincome families
with children.
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Appendix B: Review of Past Performanc e B-22
Santa Cruz Housing Element Update
Table B-2: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments
Status for Sixth
Cycle
Encourage the development of
child care opportunities in
conjunction with residential
development.
For projects that include family-style housing, the City has been encouraging the provision of childcare facilities onsite.
A child care impact fee was added to the City's fee schedule in 2021 that will be used to perform a facilities analysis and to directly invest in child care facilities. The Library project includes a new public library, parking garage, and 100 to 125 units of affordable housing and a child care facility with a capacity to care for 16 children.
Program 3.2 Santa Cruz recognizes that our children
represent the future. In today’s market, the high cost
of rental and ownership housing typically requires
that all adult family members work. The availability of affordable care for children and youth is necessary to
provide an environment conducive to healthy and
safe development and to enable families to continue
to live in Santa Cruz. The City is committed to making
high quality care alternatives for children and youth
available, affordable, and accessible to those persons
who live or work in the City, including childcare
centers and family daycare homes in appropriate
locations. The City is committed to planning
affirmatively for childcare through land use, zoning,
and permitting procedures.
Continue to assist nonprofit and
for-profit organizations that
provide services to children,
youth, and families with children.
The City funds a number of social service organizations through its annual budget.
Continued.
Encourage the establishment of
child care centers in appropriate
locations.
For projects that include family-style housing, the City has been encouraging the provision of childcare facilities onsite.
A child care impact fee was added to the City's fee schedule in 2021 that will be used to perform a facilities analysis and to directly invest in child care facilities. The Library project includes a new public library, parking garage, and 100 to 125 units of affordable housing and a child care facility onsite.
The City also amended the Zoning Ordinance in 2022 to allow both small and large family home daycare facilities as byright uses in all zoning districts that allow residential uses.
Program 3.3 Santa Cruz has the County’s largest
population of people who are homeless and, as a
member of the Continuum of Care (CoC)
Coordinating Group, maintains the most extensive
program in the County for assisting homeless people.
The City helps fund five entities that provide
Continue to implement current
programs aimed at the reduction
and the prevention of
homelessness.
The City is actively working with other local jurisdictions to address homelessness and prevention. In addition, the City created a new position to address homelessness within the City. The City also created a Homelessness Response Action Plan in 2022, with goals to create an organizational response to homelessness and housing instability, engage with the community, provide permanent affordable and supportive
Modified to
remove
completed
objectives and
added new
objectives to
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Table B-2: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments
Status for Sixth
Cycle
homeless outreach services, three emergency
shelters, and a bad weather shelter. In addition to
offering shelter and services to the homeless, the City is committed to preventing homelessness by assisting
at-risk populations, such as those with extremely
low-incomes, through emergency assistance and the
development of stable, affordable housing. Santa
Cruz also has a significant number of transitional and
permanent supportive housing units for people with
disabilities, psychiatric illness, HIV/AIDS, and
substance problems. The City also contracts with
nonprofit organizations providing employment
training, childcare, rental assistance, and other
supportive services. The City plays an instrumental
role in the CoC by supporting the continued
operation of homeless services, funding the majority
of the Continuum’s operations, and applying for
grants on behalf of nonprofits.
housing, provide basic support services for unhoused persons, provide effective care and support services for unhoused persons, and support community safety.
continue
providing more
resources and
Participate with other Santa Cruz services.
County communities and
organizations in implementing "All
In - Toward a Home for Every
County Resident, the Santa Cruz
County Community’s Strategic
Plan to Prevent, Reduce, and
Eventually End Homelessness."
The City is actively working with other local jurisdictions to address homelessness and prevention. In addition, the City created a new position to address homelessness within the City.
Amend the Zoning Ordinance to
permit transitional and supportive
housing as a residential use
subject only to those restrictions
that apply to other residential uses
of the same type in the same
zone.
Completed – The City amended the Zoning Ordinance to
permit transitional and supportive housing as a residential use subject only to those restrictions that apply to other residential uses of the same type in the same zone.
Program 3.4 Santa Cruz has a large population
requiring supportive living services to preserve and
maintain equal housing opportunities and choice.
This includes people with disabilities, formerly
homeless people, persons recovering from substance
abuse, persons living with chronic disabling
conditions such as HIV/AIDS, and other special needs
groups. "Supportive Living Housing Services" is a
broad term that encompasses a range of community
services and types of assistance. The concept goes
beyond the traditional single-service delivery
"supportive services" and seeks to enable individual
Continue supporting organizations
in maintaining permanent
supportive housing and providing
assistance to special needs groups.
Through the City’s annual budget, many social service
organizations are being funded continuously, with these being included.
Continued.
Additional
objectives have
been added in
response to
updates to State
law for supportive
housing.
Encourage the location of
permanent supportive housing for
the able-bodied in residential
settings or other locations readily
accessible to public amenities,
public transit, shopping, and
supportive services.
Several projects are currently in the pipeline, including 119 Coral St., which will provide 120 units of supportive housing, and City-sponsored project at 818 Pacific Ave. (Pacific Station South), which will reserve 25% of its units for homeless households or those in danger of becoming homeless.
Another City-sponsored project at 902 Pacific Ave. (Pacific Station North, 95 units) will contain a minimum of 25% of the project as supportive housing units. The 100% affordable
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Appendix B: Review of Past Performanc e B-24
Santa Cruz Housing Element Update
Table B-2: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments
Status for Sixth
Cycle
special needs recipients to achieve a significantly
greater quality of life and independence and to adapt
as individual needs change over time. The City
recognizes that permanent supportive housing can
broadly service a variety of special needs groups.
Whatever the level of service or setting required, the
City remains committed to continue providing
appropriate permanent supportive housing options
for residents as funds are available.
housing project at 532 Center St. (Cedar St Apartments) will also be providing 25% of the 65 unit project for supportive housing. Another 100% affordable housing project at 314 Jessie St. (Jessie St Apartments) will have 25% of the 50 unit project for supportive housing.
Program 3.5 Over the next 5 years, the University
may construct additional housing pursuant to its Long
Range Development Plan (LRDP, 2005-2020) to
provide up to 10,125 total on-campus beds, no more
than 579 off-campus residential beds, and 443 faculty
or staff housing units. There are currently 8,396 oncampus beds; however, this has been achieved by converting spaces designed for lounges into rooms
and adding beds to rooms designed for fewer beds.
The City supports UCSC’s goal to provide housing
opportunities commensurate with goals set forth in
the LRDP, as financially feasible. As mandated by the
City Council and Chancellor, City and University staff
meets regularly to collaborate on facilitating new
student, faculty, and staff housing.
Continue to collaborate with UCSC
on ways to increase the supply of
student, faculty, and staff housing
serving the University campus.
The City has been in consistent collaboration with the
University in order to meet these strategic goals.
Continued.
Promote housing strategies that
reflect student housing needs
including affordability and the
siting of high density apartments
and townhouses along transit
corridors.
The City is committed to promoting affordable housing
strategies, as well as strongly encouraging the University to provide additional student housing on campus. The
University updated its Long Range Development Plan in 2021 for the next 20 years and addresses student housing need. As of March 2023, the UC Board of Regents has approved of
financials for the 3,000 bed (on-campus) Student housing West project. The project includes the Hagar Development Family Student Housing with 140 total units anticipated to be completed in fall 2025. Also included is the Heller
Development scheduled for completion in fall 2028 and
including approximately 780 units; an additional 165 units will be provided for graduate student housing.
Support State and federal
legislation that would advance the
housing goals of the community
such as increasing the funding for
The City's lobbyist, citizen lobbyists, and local politicians including City Council have been in support of increasing funding for student housing at the State level at an ongoing level.
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Appendix B: Review of Past Performanc e B-25
Santa Cruz Housing Element Update
Table B-2: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments
Status for Sixth
Cycle
housing at University of California
campuses.
Explore innovative methodologies
for development funding models
and delivery methods for new
housing.
The City has continued to explore funding opportunities to further the production of new housing.
Continue to administer the City's
Rental Inspection Program to
ensure maintenance of a healthy
and safe rental housing stock
within the City.
As one of the Code Enforcement Division’s signature
programs, the City has been consistently requiring the
upgrading of rental housing units to meet basic life and safety standards. There are over 11,000 rental units in Santa Cruz, all of which are required to participate in the Residential Rental Inspection Program. In the last year, approximately 54 percent of units inspected were upgraded to correct life and safety deficiencies. While rental inspections were paused during COVID, prior to covid approximately 65-70 percent of units inspected were upgraded to meet life and safety
standards.
Program 3.6 Consistent with SB520 (2007),
Government Code Sections 65583(a)(4) and
65583(a)(5), the Housing Element analyzed potential
constraints to the development, maintenance, and
improvement of housing for persons with disabilities.
The analysis included an evaluation of land use
controls, permit processing, and building codes
among others. The analysis found that the City
permits, encourages, and facilitates a range of special needs housing in the community. With respect to
housing for persons with physical disabilities, the City applies current building code requirements for
accessibility on new and rehabilitation projects and
Work with other Santa Cruz
County jurisdictions and the
County Housing Authority to
support the compilation and
publicizing of housing accessible to
persons with disabilities.
The City has consistently been supporting the County
Housing Authority, including through work on homelessness issues.
Continued.
Work with non-profit
organizations to develop housing
for persons with disabilities.
The City has two recently completed projects that provide housing for persons with disabilities: the 708 Water St. project, completed in 2020 and the 335 Golf Club Dr. project completed in 2021/2022.
Develop procedures to provide
reasonable accommodations for
The City has included this in the Zoning Ordinance, with specific accommodations determined on a case-by-case basis dependent on the physical conditions of the property.
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Appendix B: Review of Past Performanc e B-26
Santa Cruz Housing Element Update
Table B-2: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments
Status for Sixth
Cycle
offers grants and loans to homeowners to make basic
accessibility modifications as part of a rehabilitation project. Nonetheless, people with physical disabilities continue to have difficulty finding accessible units or sufficient funds to purchase or retrofit their homes.
Additional measures could be undertaken to improve
their housing opportunities.
persons with disabilities in land
use and zoning.
Program 3.7 The City provides approximately $1
million each year to a variety of nonprofit human
service and housing development organizations
supporting numerous programs that assist homeless
persons, very low and low income households,
families with children, women, and others in finding
housing and appropriate supportive services. Funding
is provided annually, contingent on adequate funds
and City Council approval, through the City’s General
Fund, HOME funds, Community Development Block
Grant Funds, and other sources.
Continue funding nonprofit human
service and housing development
organizations through the City’s
Housing and Community
Development Program subject to
funding availability and City
Council approval.
Through the City’s annual budget, many social service
organizations are being funded continuously – such as the new Homeless Services Division.
Continued.
GOAL 4. Increased opportunities for low and moderate income residents to rent or purchase homes.
Program 4.1 The Housing Authority administers the
Housing Choice Voucher (HCV, formerly Section 8)
rental assistance program for Santa Cruz. This
program extends rental subsidies to very low income
households and offers the tenant a voucher that pays
the difference between the current fair market rent
(FMR) established by the Federal Housing and Urban
Development Department (HUD) and 30 percent of
the tenant’s income. The voucher is accepted on a
voluntary basis by the landlord. A tenant may choose
housing that costs more than the FMR and pay the
Work with Santa Cruz County
jurisdictions and interested
community organizations to
continue to advocate for a
payment standard that keeps pace
with changes in market rents.
HUD updated the payment standards in 2018. Continued, and added objectives
to support the
adoption of more
vouchers and
resources.
Encourage property owners to
accept Section 8 tenants.
The Planning and Economic Development and Housing
Departments have developed a program to help ADU and
other property owners to use the HCV program. The City cosponsors a landlord incentive program to cover any property
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Appendix B: Review of Past Performanc e B-27
Santa Cruz Housing Element Update
Table B-2: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments
Status for Sixth
Cycle
extra rent above the standard. In recent years, the
volatility of the local rental market, as related to the FMR, has presented challenges in ensuring that the
voucher program remains attractive to landlords.
damage from low income tenants beyond what is covered by the deposit.
Program 4.2 In recent years, rising rental costs mean
that some households may have insufficient income
for a security deposit and cannot secure an
apartment. The City contracts with the Housing
Authority to assist low- income households with the
security deposit and last month’s rent. The security
deposit is provided in the form of a loan to the
tenant. The City also funds, through the Community
Action Board, an emergency rental assistance
program to prevent the eviction of tenants or
homeowners for a short transition period to allow
tenants to stabilize their finances.
Continue program implementation
and assist households with
security deposit and last month’s
rent and/or emergency rent
assistance with available funding.
The City has been working with the Housing Authority to provide tenant-based rental and security deposit assistance.
The City also has been providing Red Cross funds to the Community Action Board for emergency rent assistance for extremely low income tenants.
Continued.
Program 4.3 The Mortgage Credit Certificate (MCC)
program is a federal program that provides tax
credits to income eligible home buyers. The program
allows buyers to receive a tax credit of up to 20
percent of the annual interest paid on a mortgage.
This enables homebuyers to have more income
available to qualify for a mortgage loan and to make
monthly payments. The MCC program has covenant
restrictions to ensure the affordability of
participating homes for 15 years. Santa Cruz
participates through the County Housing Authority
and has issued 157 MCCs since the program began.
The Housing Authority determines the quantified
objectives for each community.
Continue to support the program
and encourage the assistance of
up to three households each year.
This program was previously funded through Redevelopment funding. With the dissolution of Redevelopment, the City has not been able to fund the program.
Discontinued due
to lack of funding.
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Appendix B: Review of Past Performanc e B-28
Santa Cruz Housing Element Update
Table B-2: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments
Status for Sixth
Cycle
Program 4.4 Various State, federal, and private
sources provide financing for the construction of new
housing and provision of supportive services.
CalHome Grants and other State and federal sources
fund affordable ownership and rental housing,
neighborhood revitalization efforts, special needs
housing and supportive services, downtown
revitalization, and a variety of other programs that
address housing needs of communities across the
state. Many of these programs benefit Santa Cruz
residents and nonprofit organizations.
Investigate and apply for funds
available through State housing
programs that help meet the
housing needs of Santa Cruz
residents.
The City continues to investigate available State and federal grant funding opportunities and apply for those for which the City is eligible.
Continued.
Continue to investigate and apply
for additional sources of funding
for new housing and supportive
services.
The City continues to investigate additional sources of funding opportunities and apply for those for which the City is eligible.
Annually review and apply for
appropriate funding resources for
new housing and supportive
services.
The City continues to annually review available State and federal grant funding opportunities and apply for those for which the City is eligible.
Program 4.5 The City contracts with California Rural
Legal Assistance, Senior Network Services, La Familia
Center, Santa Cruz Community Counseling Center,
and other organizations to provide services that
improve housing opportunities. These organizations
provide counseling and referrals, landlord and tenant
dispute resolution, discrimination and complaint
processing, education and outreach, training and
technical assistance, advocacy, and relocation
assistance. The City has also adopted an
antidiscrimination ordinance affecting all aspects of
the rental, sale, and occupancy of housing. The City
supports equal opportunity lending programs and
ensures that nondiscriminatory practices are
followed in the selection of participants for City
housing programs. The City is in the process analyzing
the Impediments to Fair Housing within the City,
Complete Fair Housing Plan and
implement strategies.
Completed – The Fair Housing Plan is updated every five years. The City is working to update the plan to line-up with the 6th Housing Element Cycle and the next Consolidated Plan.
Modified –
objectives were
continued but
moved under
Continue to provide free legal different polocies.
assistance to low income residents
through California Rural Legal
Assistance and to provide contact
information for other free and
low-cost legal services.
The City is committed to continuing the accessibility of free legal assistance for low income residents.
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Appendix B: Review of Past Performanc e B-29
Santa Cruz Housing Element Update
Table B-2: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments
Status for Sixth
Cycle
which may include recommendations to improve fair
housing services. Any recommendations would be
implemented by the City.
GOAL 5. Improved housing and neighborhoods throughout Santa Cruz and in designated target areas.
Program 5.1 Code enforcement is important to
ensuring that the character and quality of
neighborhoods and housing is maintained. The City’s
Code Compliance Division inspects properties for
compliance with State and local regulations
governing building and property maintenance. If
deficiencies are found, the property owner has a
specified period of time to voluntarily correct the
problem. Should corrections not occur, the City can
issue citations or initiate legal action. In situations where violations threaten the safety of tenants,
property owners must provide up to three months of
relocation assistance. However, the City seeks
voluntary compliance through educating property
owners and may refer property owners to programs
for available financial and technical assistance.
Continue to implement code
enforcement program.
As a duty of the Code Enforcement Division, the City will continue to ensure that the program is enforced. In the last year, 48 percent of code enforcement complaints resulting in enforcement were resolved.
Continued.
Conduct targeted code
enforcement efforts in concert
with the Beach/South of Laurel
Comprehensive Area Plan and the
HUD target areas.
The City will continue to conduct code enforcement efforts in targeted areas in conjunction with the Beach/South of Laurel Comprehensive Area Plan.
The City has held neighborhood clean-up events twice yearly in two target areas, the Lower Ocean area and the Beach Flats area, for a total of four clean-up events per year. The City has also attending the UCSC Housing Fair to inform students of the Residential Rental Inspection Program for those who live off campus.
Consider expanding the Target
Areas for proactive code
enforcement efforts.
The City has been upgrading areas in the community that are less well-kept. Code Enforcement Division will continue to monitor this progress.
Program 5.2 Given the age of housing in Santa Cruz,
some older homes may experience deferred
maintenance or have substandard electrical,
plumbing, or other systems. Lead-based paint or
asbestos may require removal to ensure the health
and safety of residents. Many of these conditions
may not be evident to residents or property owners.
In order to improve the quality of housing,
neighborhood conditions, and health of residents,
the City benefits from a rental housing inspection
Continue to administer the City's
rental inspection program to
ensure maintenance of a healthy
and safe rental housing stock
throughout the City.
Due to this being a prominent and ongoing program for the Code Enforcement Division, many units have been and will continue to be upgraded to meet basic life and safety
standards. There are over 11,000 rental units in Santa Cruz, all of which are required to participate in the Residential Rental Inspection Program. In the last year, approximately 54 percent of units inspected were upgraded to correct life and safety deficiencies. While rental inspections were paused during COVID, prior to covid approximately 65-70 percent of units inspected were upgraded to meet life and safety standards.
Continued, and
an objective has
been added to
expand outreach
for the rental
inspection
program and
other CE
initiatives.
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Appendix B: Review of Past Performanc e B-30
Santa Cruz Housing Element Update
Table B-2: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments
Status for Sixth
Cycle
program. The Rental Inspection Program requires
rental properties to undergo periodic inspections to
ensure the prevention and correction of basic
housing code violations.
Program 5.3 The Unified Housing Rehabilitation
Program (UHRP) provides federally-funded loans to
low income homeowners or rental property owners
with low income tenants to upgrade housing or
eliminate substandard or unsafe housing conditions.
Eligible work includes repairs to electrical and
plumbing systems, seismic upgrades to foundations,
painting, replacement of roofing, energy
conservation devices, and modifications to improve
accessibility for people with disabilities. Depending
on the funding sources, the loan terms require the
unit to remain affordable to low income households
for up to 15 years after rehabilitation.
Concentrate limited rehabilitation
program funding where it will
provide the most benefit.
As a standard, the City will always continue to meet this goal.
The UHRP is not currently active; as such, rehabilitation projects are accepted as part of the CDBG program.
Modified to seek
additional
funding.
Projects using rehabilitation
program funding shall explore
ways to improve energy efficiency
within the project.
Explore programs that would
assist low income seniors to age in
place.
The City partnered with Habitat for Humanity on the My
House My Home program, which has expanded to other
communities in California.
Program 5.4 The Beach/South of Laurel area in Santa
Cruz has long experienced disinvestment in housing
and infrastructure, is home to a large proportion of
the City’s low to moderate income and minority
households, and also experiences very low
homeownership, a high prevalence of overcrowding,
and substandard living conditions. Therefore, the City
Council adopted the Beach/South of Laurel
Comprehensive Area Plan, which establishes a series
of land use and circulation plans, enhanced code
enforcement efforts, development and design
regulations, and financial assistance programs to
rehabilitate substandard housing, improve the
Continue to provide pro-active
code enforcement and other
community development activities
for the Beach/South of Laurel and
Lower Ocean-Neighborhood
Revitalization Strategy Areas.
The City is committed to continuing to provide pro-active code enforcement as well as other community development activities for said communities. This includes cleanup days, where Code Enforcement provides dumpsters for residents to drop off unwanted items. Usable items are donated to Santa Cruz Grey Bears. The City has held neighborhood cleanup events twice yearly in two target areas, the Lower Ocean area and the Beach Flats area, for a total of four clean-up events per year.
Modified to
include objectives
with proactive
outreach efforts
and continue
utilizing the HUD
Neighborhood
Revitalization
Strategy.
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Appendix B: Review of Past Performanc e B-31
Santa Cruz Housing Element Update
Table B-2: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments
Status for Sixth
Cycle
homeownership rate, upgrade deteriorating
infrastructure, and improve community services and
facilities.
GOAL 6. Fulfill the City’s housing needs while promoting an environmentally sustainable, compact community with clearly defined urban boundaries.
Program 6.1 Santa Cruz receives the majority of its
water supply locally from the San Lorenzo River and
other surface water sources, which have also been
identified as a sensitive habitat for steelhead trout. A serious drought or federally-imposed cutbacks could
significantly reduce water supplies and require water
rationing among customers. The City’s approach to
providing water to customers is twofold: conserve
water usage in the short-term and improve the City’s
water supply and storage capacity in the long-term.
The City currently implements water waste
regulations, offers rebates for water-efficient home
appliances, and provides technical assistance to
control usage. The City’s 2010 Urban Water
Management Program sets forth long-term plans to
address water supply issues. The City is also working
on the Water Conservation Master Plan, which will
outline a set of programs that target water
conservation needs specific to Santa Cruz.
Continue to implement water
conservation measures and
publicize efforts at the City Hall
and on the City’s Water
Conservation Office website at
www.cityofsantacruz.com/depart
ments/water/conservation
The City is committed to continuing to implement water
conservation measures and publicize the efforts done by City Hall and the Water Conservation Office. Modification of the City’s water rate structure in 2016 resulted in a stable decrease in overall water consumption to approximately
2,600 million gallons per year compared to pre-2014-2015 drought levels of 2,900 to 3,300 million gallons per year, a reduction of 11-21 percent in water usage systemwide.
Throughout 2015-2023, the City has continued to implement a number of other water conservation measures that result in water consumption reduction to a lesser degree than the rate change. These measures include providing rebates for water efficient toilets, clothes washers, dishwashers; rebates for converting lawns to low water use landscapes (ended in 2022); provision of free water saving devices including showerheads, kitchen and bathroom faucet aerators, toilet leak detecting tablets, low flow hose nozzles, and
showerhead control valves; and availability of educational information on water conservation, water meter reading, fixing leaks, and calculating landscape water budgets.
Information on each of these measures continues to be
available on the City’s Water Department website at
https://www.cityofsantacruz.com/government/citydepartments/water/conservation/more-information.
Modified with the
most recent
references to
water plans and
projects.
Maintain and implement shortand long-term contingency plans The City is pursuing a Water Supply Augmentation Strategy, with a portfolio including demand management
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Appendix B: Review of Past Performanc e B-32
Santa Cruz Housing Element Update
Table B-2: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments
Status for Sixth
Cycle
to ensure an adequate water
supply for residents and business.
(conservation), transfers and exchanges, aquifer storage and recovery, and recycled water or desalination in order to ensure a safe, adequate, reliable, affordable, and
environmentally sustainable water supply. To support the augmentation strategy, the City has certified an
Environmental Impact Report for the Santa Cruz Water
Rights Project and is seeking water rights modification with the State Water Resources Control Board to increase the flexibility of the water system by improving the City’s ability to utilize surface water within existing allocations.
Additionally, the City is pursuing a capital investment program, the Santa Cruz Water Program, to secure its future water supply portfolio, to improve reliability and resiliency in the face of climate change, and to address aged
infrastructure. Finally, as required by California Water Code and to manage risks due to possible future water supply shortages, the City has adopted a Water Shortage
Contingency Plan as part of its 2020 Urban Water
Management Plan.
Continue to require all residential,
commercial and industrial
buildings to be retrofitted
completely with low-consumption
plumbing fixtures at the time of
sale of the property.
The City is committed to continuing the retrofitting with lowconsumption plumbing fixtures of all residential, commercial, and industrial buildings. The City certified 2,707 properties between January 1, 2015 and March 9, 2022, which includes properties in our service area both inside and outside city limits. The retrofit program officially ended March 2022 following council approval to rescind Santa Cruz Municipal Code Chapter 16.03. The City continues to provide rebates for water efficient toilets, clothes washers, and dishwashers, and provides free low water consumption showerheads and faucet aerators to assist customers in retrofitting their
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Appendix B: Review of Past Performanc e B-33
Santa Cruz Housing Element Update
Table B-2: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments
Status for Sixth
Cycle
properties with low-consumption plumbing fixtures and
appliances.
Program 6.2 Santa Cruz is committed to protecting
the environment and promoting a sustainable
community. To fulfill this commitment, the City
adopted a Green Building Ordinance that required
construction projects to attain a minimum number of
“green building points” to be able to obtain building
permits. Subsequent to the City’s adoption of the
Green Building Ordnance, the 2013 California
Building Code included Green Building Standards. The
City amended its ordinance to complement the 2013
California Building Code standards. The program
works in conjunction with other programs to include
best management practices, deconstruction and
reuse of materials, erosion control and grading
ordinances, energy and waste management, and
application to residential, commercial, and industrial
projects.
Continue the Green Building
Program for design and
construction of new housing.
As a duty of the Building Division, the City will continue to utilize the Green Building program.
Modified.
Updated
references and
objectives related
to the new 2022
CalGreen Code
have been added.
Program 6.3 Santa Cruz’s desire to preserve
environmental features, protect sensitive habitats,
and shape future urban growth led to the
establishment of a greenbelt surrounding the
community. Residents recognized as a quid pro quo
that future housing growth would be accommodated
within a dense urban core and along major
transportation corridors. The City supports
connections between land uses and transportation
networks (including transit, bicycle, and pedestrian)
to minimize automotive dependence. To that end,
Link land uses and transportation
systems and promote bicycle- and
pedestrian-friendly
neighborhoods.
The City is continuing to promote bicycle and pedestrian friendly neighborhoods as well as linking land uses and transportation systems.
Continued.
Continue to facilitate the
development of transit-oriented
housing projects through
regulatory concessions, financial
assistance, and zoning.
The City is committed to continuing the facilitation of developing transit-oriented housing projects.
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Appendix B: Review of Past Performanc e B-34
Santa Cruz Housing Element Update
Table B-2: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments
Status for Sixth
Cycle
the City is processing high-density multifamily
projects in the Downtown Core, single-room
occupancy units along major corridors, and other
similar projects. Zoning Ordinance incentives allow
for higher density residential structures in these
areas because of their proximity to transportation,
public services, and facilities.
GOAL 7. Reduce communitywide GHG emissions 30 percent by 2020 and 80 percent by 2050 (compared to 1990 levels).
Program 7.1 The City has been reducing its
contribution to greenhouse gas emissions through
land use planning, program development, investment
in energy-efficient infrastructure, and increased use
of renewable energy. Benefits include reduced facility
life-cycle costs and the provision of healthier home
and work environments. Green building policies and
actions incorporate energy efficiency measures,
water stewardship, use of sustainable building
materials derived from renewable resources,
reduction of waste through recycling and reuse, and
smart growth and sustainable development practices.
In addition to defining shorter-term strategies to
address likely impacts of climate change on City
infrastructure and resources, the City must set
planning goals to minimize future risks of sea level
rise and climate change.
Adopt and implement key
programs related to housing
developed by the Regional
Compact that meet city GHG
reduction goals.
The City has included such reductions through the Green Building requirements. In addition, various other programs such as the City’s green waste recycling program are aimed at reducing GHG emissions.
Continued.
Encourage property owners to
consider construction techniques
and methods to reduce and
respond to global warming.
The City's Green Building Standards ensure that individual projects include such techniques and methods. The City
adopted an electrification ordinance in 2020 that requires new buildings to be 100% electric. The City's electricity is provided by Central Coast Community Energy (formerly
Monterey Bay Community Power), which provides carbon
free electricity from renewable and hydropower sources.
Implement tracking and reporting
procedures that meet AB32
requirements and the public
interest.
Implementation of tracking and reporting procedures that meet AB32 was completed in 2019.
Continue to implement the
Climate Adaption Plan.
The Climate Adaption Plan of 2018 has been updated and
adopted to include an assessment of social vulnerability to climate change and sea level rise.
Encourage the construction of
housing along major
transportation corridors and
This has been implemented for the 2030 General Plan and the Zoning Ordinance. Most larger development projects in the past few years have been along major corridors or in the
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Appendix B: Review of Past Performanc e B-35
Santa Cruz Housing Element Update
Table B-2: 5th Planning Cycle Program Accomplishments
Goals and Programs Objective Program Accomplishments
Status for Sixth
Cycle
where alternative transportation is
viable.
downtown area. The adoption of the City’s Objective
Development Standards in 2022 encourage compact
development along major transportation corridors by
providing certainty and reducing review times and costs for projects that meet the City’s Objective Standards.
Program 7.2 The energy measures included in this
chapter will guide Santa Cruz toward a sustainable
energy future. Strategies that conserve existing
energy resources and develop future renewable
energy systems will help preserve nonrenewable
resources for future generations, reduce long-term
energy costs, reduce the environmental impacts of
burning fossil fuels, and help to reduce the nation’s
dependency on imported fuel.
Promote solar energy systems on
housing projects.
The City developed a pilot program and awarded one CBDG grant for a Grid Alternative Low-Income Solar Project for 6 low income households. Three properties/households have had solar installations. ED extended the grant to also allow non-profit installations. MHCAN, a local non-profit providing mental health services, has been identified as a potential recipient. The City has partnered with several Property Assessed Clean Energy (PACE) financing providers to provide a variety of options for financing of solar installations on existing properties.
Discontinued as
the City follows
State Law
requirements for
solar and
renewable energy
projects and
streamlining.
Promote efficiency upgrades and
renewable energy projects over
the use of carbon offsets to meet
climate reduction goals.
The City discourages the use of carbon offsets for projects and seeks to achieve all green building standards without use of "carbon credits." Carbon offsets are rarely used, only in limited circumstances when other options are exhausted.
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Housing Needs Assessment
Appendix C
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Appendix C: Housing Needs Assessment C-2
Santa Cruz Housing Element Update
Community Profile
This section provides an overview of the City’s housing and population conditions. To create a comprehensive evaluation of the City of Santa Cruz’s housing needs, the community profile analyzes characteristics of the City’s population, households, economy, and housing stock, and presents each of these components in a regional context. This assessment serves as the basis for identifying the appropriate goals, policies, and programs for the City to implement during the 2023-2031 Housing Element Cycle.
The community profile uses the most current data available from the Association of Monterey Bay Area Governments (AMBAG), U.S. Census, American Community Survey (ACS), the California Department of Finance, the California Employment Development Department, the California Department of Education, and other currently available real estate market data.
A.Population Characteristics
Understanding the characteristics of a population is critical to plan for the needs of a community.
Population growth, age composition, race and ethnicity, and employment trends influence the type and extent of housing needs and the ability of the local population to afford housing costs.
The following section describes and analyzes the various population characteristics and trends that affect housing need.
1. Population Growth
Table C-1 below displays the forecasted population growth for the City in comparison to Santa Cruz County and surrounding communities. According to the U.S. Census and AMBAG Projections, the Santa Cruz County population is forecasted to increase by 8.1% through 2040. From 2015 to 2020, the County experienced a 0.9% drop in population. In comparison to neighboring communities, the City of Santa Cruz’s population increased between 2015 and 2020 and is forecasted to continue increasing by 22.4% between 2020 and 2040.
Table C-1: Population Growth (2015-2040)
Jurisdictions
Population Percent Change
2015
Actual
2020
Actual
2025
Projected
2030
Projected
2035
Projected
2040
Projected
2015-
2020
2020-
2040
Santa Cruz County 273,793 271,233 278,641 284,146 288,523 293,156 -0.9% 8.1% Capitola 10,224 10,108 10,485 10,794 10,957 11,049 -1.1% 9.3% City of Santa Cruz 64,223 64,424 68,845 72,218 75,257 78,828 0.3% 22.4% Scotts Valley 11,946 11,693 11,718 11,837 11,867 11,868 -2.1% 1.5% Watsonville 52,410 51,515 52,918 54,270 55,138 55,786 -1.7% 8.3% Source: 2022 Regional Growth Forecast AMBAG, Table 8
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Appendix C: Housing Needs Assessment C-3
Santa Cruz Housing Element Update
2. Age Characteristics
Housing choices may differ based on the age of residents. Young adults (18 to 30 years old) and seniors (65 years or older) typically favor apartments, low- to moderate-cost condominiums, and smaller or more affordable single-family residences as they tend to have limited incomes or smaller families. As a community’s population ages, housing must also accommodate new or adjusted needs. A variety of housing options is needed to accommodate all stages of life to produce a well-balanced and healthy community.
Figure C-1 below displays ACS data for age distribution in the City of Santa Cruz. Young adults between 20 and 24 years of age make up the largest age group at 20.6 percent, followed by 15- to 19-year-olds(14 percent) – likely due to the university’s presence in the City. While the young adult population has continued to experience growth since 2010, the adult population between the ages of 35 and 59 has been on the decline. The senior population over the age of 65 experienced the largest increased of all age groups between 2015 and 2020 – pointing towards a potential need for senior-related housing and services. The number of young children continues to shrink within the City.
Figure C-1: Age Distribution in the City of Santa Cruz (2010-2020) Source: American Community Survey, Table S0101, 5-Year Estimates, 2010, 2015, and 2020 Table C-2 below shows the age distribution of the City of Santa Cruz residents in comparison to surrounding communities. The City’s adult population between 50 to 64 and seniors over 65 both represent the smallest percentages in comparison to neighboring communities after Watsonville.
The City has the lowest population percentage of children under 5, but larger population percentages for young adults between 20 and 34 than nearby jurisdictions, likely due to the University.
Under
5 years
5 to 9
years
10 to
14 years
15 to
19 years
20 to
24 years
25 to
34 years
35 to
44 years
45 to
54 years
55 to
59 years
60 to
64 years
65 years +
2010 4.1% 3.8% 3.5% 13.0% 18.7% 7.1% 12.5% 11.6% 6.2% 4.3% 8.7% 2015 4.0% 3.5% 3.5% 14.2% 19.8% 12.3% 10.4% 11.1% 6.4% 5.0% 9.6% 2020 3.1% 3.3% 3.7% 14.0% 20.6% 12.7% 10.1% 10.2% 5.0% 4.7% 12.5%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
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Table C-2: Age Characteristics/Age Distribution
Jurisdiction Under 5 5 to 19 20 to 34 35 to 49 50 to 64 65 years + Santa Cruz County 5.30% 19.2% 22.1% 23.9% 13.4% 16.4%
Capitola 3.7% 15.1% 17.3% 28.2% 14.5% 21.2%
City of Santa Cruz 3.1% 21.0% 33.3% 20.3% 9.7% 12.5%
Scotts Valley 5.1% 15.2% 17.8% 24.1% 17.3% 20.4%
Watsonville 8.1% 25.6% 21.6% 24.5% 9.5% 10.8%
Source: American Community Survey, Table S0101, 5-Year Estimates, 2020.
3. Race/Ethnicity Characteristics
Analyzing and understanding the racial and ethnic composition of a community is important as different racial and ethnic groups may have varying household characteristics, income levels, and cultural backgrounds that may affect their housing needs, housing choice, and housing type.
Cultural influences may reflect preference for a specific type of housing or other characteristics, such as location and mobility.
It is important to note that while race and ethnicity are used to identify different sections of a community’s population, they are not the same and are not mutually exclusive. The data identified below shows the racial and ethnic composition of the City of Santa Cruz and nearby jurisdictions using ACS, which allows Census respondents to identify their race and ethnicity. Therefore, overlap may occur.
As shown in Figure C-2, persons who identify as White made up the largest racial group in the City (62.1 percent); larger than that of the County (56.9 percent). In contrast, the Asian population made up the second largest racial group at a much smaller rate of about 10 percent. Additionally, those who identify as Hispanic or Latino origin (of any race) represent about 20 percent of the City’s population.
Figure C-2: Racial Ethnic Composition
Source: American Community Survey, Table B03002, 5-Year Estimates, 2020 White
Black or
African
American
American
Indian
and
Alaska
Native
Asian
Native
Hawaiian/
Other
Pacific
Islander
Some
Other
Race
Two or
More
Races
Hispanic
or Latino
Origin
Santa Cruz 62.1% 1.8% 0.1% 10.2% 0.1% 0.4% 4.6% 20.7%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
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Table C-3 shows generally greater diversity within the City compared to neighboring jurisdictions for those who identify as Black, Asian, and Some Other Race. After Scotts Valley, the City of Santa Cruz has the second largest percentage of White population, with Capitola virtually tied at 62.1% and 62% respectively, and the second lowest percentage of Hispanic or Latino population.
Table C-3: Racial/Ethnic Composition
Jurisdiction White* Black*
American
Indian/
Alaska
Native*
Asian*
Native
Hawaiian/
Other
Pacific
Islander*
Some Other
Race*
Two or
More
Races*
Hispanic or
Latino (of
any race)
Santa Cruz
County 56.9% 1.0% 0.1% 4.7% 0.1% 0.3% 3.3% 33.6%
Capitola 62.0% 0.6% 0.1% 4.8% 0.0% 0.0% 6.7% 25.8%
City of
Santa Cruz 62.1% 1.8% 0.1% 10.2% 0.1% 0.4% 4.6% 20.7%
Scotts Valley 76.1% 0.5% 0.0% 6.8% 0.0% 0.3% 3.5% 10.8% Watsonville 15.0% 0.4% 0.1% 2.2% 0.0% 0.0% 0.6% 81.7%
Source: American Community Survey, Table B03002, 5-Year Estimates, 2020.
Table C-4 shows mostly moderate changes in racial and ethnic demographics between 2010 and 2020. The Asian population experienced the largest increase from 5.7 percent to 10.2 percent. In contrast, the White population decreased from 69.5 percent to 62.1 percent. Those who identify as American Indian and Alaska Native and Native Hawaiian/Other Pacific Islander also experienced similar decreases from 0.3 percent to 0.1 percent, respectively. The population that identifies as Black or African American increased by 0.5 percent from 2015 to 2020. Overall, the City of Santa Cruz became modestly more diverse between 2010 and 2020.
Table C-4: Racial/Ethnic Composition of the City of Santa Cruz (2010-2020) Race/Ethnicity 2010 2015 2020 Change from
2010 to 2020
White 69.5% 64.2% 62.1% -7.4%
Black or African American 1.3% 1.8% 1.8% 0.5%
American Indian and Alaska
Native 0.3% 0.3% 0.1% -0.2%
Asian 5.7% 8.3% 10.2% 4.5%
Native Hawaiian/Other Pacific
Islander 0.3% 0.1% 0.1% -0.2%
Some other Race 0.3% 0.1% 0.4% 0.1%
Two or more races 3.6% 4.6% 4.6% 1.1%
Hispanic or Latino Origin 19.0% 20.6% 20.7% 1.7%
Source: American Community Survey, Table B03002, 5-Year Estimates, 2010, 2015, and 2020.
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B. Economic Characteristics
In addition to demographics, economic characteristics may also indicate different housing needs.
Employment and income trends may indicate a need for more affordable housing units and assistance programs. The data in this section provides valuable insight into the City of Santa Cruz community’s ability to access the housing market and to afford housing. Specifically, incomes associated with different employment sectors and the number of workers in a household may affect housing affordability need and choice. Local employment growth is also linked to local housing demand, and vice versa. Therefore, to consider a healthy balance between jobs and housing, it is important to consider the employment characteristics of a community.
1. Employment and Wage Scale
Employment and income directly affect housing needs as they provide the ability to purchase and rent housing, as well as influence the types of housing residents can afford. Job growth refers to the number of jobs created in the jurisdiction whereas employment growth refers to the number of residents in a jurisdiction who are employed. Table C-5 shows projected job growth from 2015 through 2045 for the City and nearby jurisdictions. By 2045, the City is forecasted to experience a
21.5 percent job growth from 2015 to 2045 (approximately new 8,796 jobs). Compared to the nearby jurisdictions, the City of Santa Cruz is expected to experience the greatest percent of overall job growth during the period. The figures in Table C-5 provide a deeper understanding of economic growth as compared to forecasted population growth, shown in Table C-1.
Table C-5: Total Jobs Growth (2015-2045)
Jurisdiction 2015 2025 2035 2045 % Change
2015-2045
Santa Cruz County 130,436 141,391 147,125 153,261 17.5% Capitola 11,666 12,376 12,902 13,454 15.3%
City of Santa Cruz 40,840 44,317 46,863 49,636 21.5%
Scotts Valley 9,458 10,185 10,489 10,797 14.2%
Watsonville 42,069 45,748 47,366 49,071 16.6%
Source: Association of Monterey Bay Area Governments, 2022 Regional Growth Forecast Table C-6 shows the number of people employed in various sectors and the change in sector employment between 2010 and 2020. The education services, health care, and social assistance sector is by far the largest employment sector in the City, reflecting the University’s influence on employment. The arts, entertainment, recreation, accommodation, and food services sector is the next largest at almost 15 percent, reflecting the City’s emphasis on the arts as well as the prominence of the tourist industry, followed closely by the professional, scientific, management, and administrative services sector, reflecting the local government facilities in the City of Santa Cruz as well as other professional and research industries.
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Table C-6: Employment by Sector (2010-2020)
Industry Sector
2010 2020
Change
2010-2020 People
Employed
City
Employment
Percent
People
Employed
City
Employment
Percent
Agriculture, forestry, fishing and
hunting, and mining 247 0.8% 483 1.4% 0.6%
Construction 1,839 6.2% 1,399 4.1% -2.0%
Manufacturing 2,231 7.5% 2,431 7.2% -0.3%
Wholesale trade 670 2.2% 345 1.0% -1.2%
Retail trade 2,797 9.4% 3,409 10.0% 0.7%
Transportation and
warehousing, and utilities 536 1.8% 865 2.5% 0.8%
Information 814 2.7% 1,013 3.0% 0.3%
Finance and insurance, real
estate, and rental leasing 969 3.2% 1,273 3.7% 0.5%
Professional, scientific,
management, and
administrative services
3,225 10.8% 4,420 13.0% 2.2%
Education services, health care,
and social assistance 9,368 31.4% 11,014 32.4% 1.0%
Arts, entertainment, recreation,
accommodation, and food
services
3,930 13.2% 5,057 14.9% 1.7%
Other services (except public
administration) 1,852 6.2% 1,364 4.0% -2.2%
Public Administration 1,340 4.5% 875 2.6% -1.9%
Total 29,818 100.0% 33,948 100.0% 13.9%
Source: American Community Survey, 5- Year Estimates, 2010 and 2020
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Economists estimate a 3.5 percent to 4.5 percent unemployment rate as natural as it reflects the real voluntary economic forces within a city or county1. Table C-7 showsthe City of Santa Cruz had an unemployment rate of 8.3 percent in 2010 and 6.9 percent in 2020. While the rate of unemployment went down by 1.4 percent from 2010 to 2020, the rate is still high. There are a number of reasons why the unemployment rate is high in the City. Potential reasons include the large college student population from UC Santa Cruz and the 2020 COVID-19 pandemic.
Table C-7: Unemployment Rate
Jurisdiction Unemployment Rate* Percent Change 2010 2020 Santa Cruz County 8.3% 6.1% -2.2%
Capitola 8.6% 1.6% -7.0%
City of Santa Cruz city 8.3% 6.9% -1.4%
Scotts Valley 6.9% 4.3% -2.6%
Watsonville 11.0% 8.0% -3.0%
*Population 16 years and over
Source: American Community Survey, Table DP03, 5-Year Estimates, 2010 and 2020.
For those employed, income level can further identify housing types that may need to be provided within the City. According to the AMBAG Final Regional Housing Needs Allocation (RHNA), housing needs by income are broken down into four income categories:
• Very Low-Income (Less than 50% median family income)
• Low Income (50 to 80% median family income)
• Moderate Income (80 to 120% median family income)
• Above Moderate-Income (Above 120% median family income) The Santa Cruz county median income for a household of four is $119,300, according to the 2022 State Income Limits. Occupations with salariesthat fall under $54,450 for a single person would have an income in the very low-income category. As Table C-8 shows, the majority of the occupational salaries in Santa Cruz County fall below 50% of the area median income (AMI). Based on these salaries, housing stock in the City would need to be affordable to accommodate lowerincome households. This would be true for single income households; however, for dual income households, depending on the size of the household and the specific occupations, the households are more likely to meet the median income. For example, a household made up of two teachers would likely have an income slightly above the median household income for a household with two people.
1 Natural Rate of Unemployment, Its Components, and Recent Trends, Kimberly Amadeo, ed. Eric Estevez, August 30, 2020.
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Table C-8: Median Salary by Occupation in Santa Cruz County Occupation Salary
Management $96,222
Legal $87,551
Healthcare Practitioners and Technical $86,641
Architecture and Engineering $79,419
Computer and Mathematical $70,746
Life, Physical and Social Sciences $70,708
Business and Financial Operations $66,811
Construction and Extraction $56,649
Installation, Maintenance and Repair $54,640
Education, Training and Library $52,376
Community and Social Service $50,166
Arts, Design, Entertainment, Sports, and Media $48,070
Protective Services $47,973
Office and Administration Support $45,645
Production $43,993
Building, Grounds Cleaning, and Maintenance $40,481
Transportation and Material Moving $40,014
Sales $31,611
Farming, Fishing and Forestry $30,567
Personal Care and Service $30,270
Healthcare Support $29,735
Food Preparation and Serving Related $28,513
Source: American Community Survey, 5-Year Estimates, 2020
C.Household Characteristics
Households include all individuals that share a single housing unit whether they are single occupants, families, or unrelated people sharing a housing unit. Household characteristics provide insight on growth and determining a community’s housing needs. Income and affordability are best measured at the household level, as well as the special needs of certain groups, such as large families, single-parent households, or lower-income households.
1. Household Type
Table C-9 shows different household characteristics in the City. The City of Santa Cruz contains 22,644 total households. This represents about 23.5% of total Santa Cruz County households.
About 52.8 percent of total households in the City of Santa Cruz are non-family households. This may include unrelated persons living together or persons living alone. Non-family households tend to occupy multi-family units or seek out more affordable housing options such as students and other young adults living together in a house. In contrast, married-couple family households make up 35.4% of total households. This population tends to seek occupancy in a single-family residence with multiple bedrooms.
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Appendix C: Housing Needs Assessment C-10
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Table C-9: Household Characteristics
Jurisdiction
MarriedCouple
Family HH
Total HH
Percent
Female HH,
No Spouse
Present
Total HH
Percent
Non-Family
HH
Total HH
Percent Total HH
Santa Cruz
County 46,297 48.1% 9,718 10.1% 35,405 36.8% 96,275
Capitola 1,783 38.3% 457 9.8% 2,209 47.4% 4,658
City of Santa
Cruz 8,006 35.4% 1,680 7.4% 11,950 52.8% 22,644
Scotts Valley 2,649 55.4% 263 5.5% 1,551 32.5% 4,779
Watsonville 7,345 51.3% 2,524 17.6% 3,199 22.3% 14,317
Note: HH = Households
Source: American Community Survey, Table B11001, 5-Year Estimates, 2020.
Table C-10 illustrates the changes in household types from 2010 through 2020. The City experienced a growth of approximately 926 new households from 2010 to 2020. During this time, householders ages 65 or above grew by 3.6 percent. Female households with no spouse present experienced a decline by 1.2 percent.
Table C-10: Changes in Household Types
Household Types 2010 Percent 2015 Percent 2020 Percent
Married-Couple Family Households 7,698 35.4% 7,327 34.1% 8,006 35.4% Female Households, No Spouse 1,867 8.6% 1,842 8.6% 1,680 7.4% Male Households, No Spouse 876 4.0% 931 4.3% 1,008 4.5% Non-Family Households 11,277 51.9% 11,416 53.1% 11,950 52.8% Householder Age 65 or Above 1,803 8.3% 2,345 10.9% 2,695 11.9% Total Households 21,718 100.0% 21,516 100.0% 22,644 100.0% Source: American Community Survey, Table S11001, 5-Year Estimates, 2010, 2015, 2020.
2. Household Size
Understanding household size helps identify the basic unit of demand for housing as it identifies the type and size of housing needed by the community. It is also an indicator of population growth and household character. The measure of person per household provides an indicator of the number of persons residing in a housing unit. Average household size can be both a result and indicator of housing affordability and other household economic conditions and is important in understanding housing need by size and type of housing.
Table C-11 illustrates the household size for the City and nearby communities. The City of Santa Cruz has approximately 2.4 persons per household, fewer than the County, Scotts Valley, and Watsonville but more than Capitola. Larger households may require additional bedrooms and may result in overcrowding. Given the City of Santa Cruz’s student population, it is likely that household size adjusts based on available housing.
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Table C-11: Average Household Size
Jurisdiction Average Persons per Household
Santa Cruz County 2.7
Capitola 2.1
City of Santa Cruz 2.4
Scotts Valley 2.5
Watsonville 3.6
Source: American Community Service, 5-Year Estimates 2020
3. Household Income
Household income is connected to affordability. As household income increases, households are more able to afford market-rate units, larger units, and/or pursue ownership opportunities. On the other hand, as household income decreases, households tend to pay a disproportionate amount of their income for housing. This could lead to increased incidences of overcrowding and substandard living conditions.
HCD has identified the following income categories based on the Area median Income (AMI):
• Extremely Low-income: Households earning up to 30 percent of the AMI • Very Low-income: Households earning between 31 and 50 percent of the AMI • Low-income: Households earning between 51 percent and 80 percent of the AMI • Moderate-income: Households earning between 81 percent and 120 percent of the AMI • Above Moderate-income: Households earning over 120 percent of the AMI Together, the extremely low-, very low-, and low-income categories are referred to as lower income2. Comprehensive Housing Affordability Strategy (CHAS) estimates based on 2015-2019 ACS 5-year average data are used below. The CHAS, developed by the Census Bureau for the U.S.
Department of Housing and Urban Development (HUD), provides detailed information on housing needs by income level for different types of households in the City of Santa Cruz. The most recent available CHAS data for the City was published in May 2022.
Table C-12 shows that majority of owners and households as a whole had a moderate or above incomes, 67.5% of owners and 50.5% of total households, while 36.2% of renters had extremely low incomes and 35.3% of renters had moderate or above incomes, showing a split in the incomes of the renter population. Approximately 49.5% of the City’s households are estimated to have a lower income – with 25% earning an extremely low income. 2 Federal housing and community development programs typically assist households with incomes up to 80 percent of the AMI and use different terminology. For example, the Federal Community Development Block Grant (CDBG) program refers households with incomes between 51 and 80 percent AMI as moderate-income (compared to low-income based on State definition).
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Table C-12: Households by Income Category
Income Category (% of County AMI) Owner Renter Households Total Percent Total Percent Total Percent
Extremely Low (30% AMI or less) 1,305 12.3% 4,335 36.2% 5,640 25.0% Very Low (31 to 50% AMI) 795 7.5% 1,650 13.8% 2,445 10.8% Low (51 to 80% AMI) 1,345 12.7% 1,755 14.7% 3,100 13.7% Moderate or Above
(over 80% to 100% AMI) 7,170 67.5% 4,225 35.3% 11,395 50.5% Total 10,615 100.0% 11,965 100.0% 22,580 100.0%
Source: HUD Comprehensive Housing Affordability Strategy (CHAS), 2015-2019.
The ACS 2020 data shown in Figure C-3 below depicts median household income for the City of Santa Cruz, the surrounding jurisdictions, and Santa Cruz County. In 2020, the median household income in the City of Santa Cruz was $86,618, which is $3,368 lower than for the County as a whole, and $17,165 lower than Scotts Valley. Of the incorporated cities in the County, the City of Santa Cruz has the second highest household income in the area behind the City of Scotts Valley.
Larger household income allows for more flexibility and opportunity of housing choice.
Households with lower median incomes are more susceptible to housing cost burdens and may have fewer choices. Additionally, lower-income households may not be able to afford adequate housing. Low-income households may have a challenging time finding housing that can fit the needs of a larger household because larger housing tends to be owned, rather than rented, and is more expensive than smaller rental units. As a result, cost burden, displacement, and overcrowding may occur.
Figure C-3: Median Household Income by City
Source: American Community Survey, 5-Year Estimates, 2020 $81,617 $86,618
$103,783
$61,496
$89,986
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
Capitola Santa Cruz Scotts Valley Watsonville
Jurisdictions Santa Cruz County, California
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Appendix C: Housing Needs Assessment C-13
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Table C-13 shows the median household income of nearby jurisdictions and compares the percentage difference with the Santa Cruz County median income. The City of Santa Cruz’s median household income is 3.7% below that of Santa Cruz County. Given the median incomes of other jurisdictions, the City of Santa Cruz falls roughly in the middle, with the median income of Scotts Valley above and the median income of Capitola and Watsonville below.
Table C-13: Median Household Income
Jurisdiction Median Income Difference with County
Median
Santa Cruz County $89,986 --
Capitola $81,617 -9.3%
City of Santa Cruz $86,618 -3.7%
Scotts Valley $103,783 15.3%
Watsonville $61,496 -31.7%
Source: American Community Survey, Table S1901, 5-Year Estimates, 2020.
Figure C-4 below outlines income levels in the City of Santa Cruz. According to this data, 53% of the City’s households earn an income below $150,000, with 13% earning less than $50,000, and 1% earning less than $10,000. Approximately 31% of the City’s households earn $200,000 or more annually. This data supports the need for a variety of housing types and a range of prices to meet the needs of the residents of the City.
Figure C-4: The City of Santa Cruz Household Income Breakdown by Category Source: American Community Survey, Table S1901, 5-Year Estimates, 2020.
Less than $10,000
1%
$10,000 to $14,999
1%
$15,000 to $24,999
3%
$25,000 to $34,999
3%
$35,000 to $49,999
5%
$50,000 to $74,999
8%
$75,000 to $99,999
9%
$100,000 to $149,999
23%
$150,000 to $199,999
16%
$200,000 or more
31%
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D.Housing Problems
The Comprehensive Housing Affordability Strategy (CHAS) developed by the Census Bureau for HUD provides detailed information on housing problems by income level for different types of households in the City. The most recent available CHAS data was published in May 2022 and is based on 2020 ACS data. Housing problems considered by CHAS include:
Housing Problems:
• Units with physical defects (lacking complete kitchen or bathroom); • Overcrowded conditions (more than one person per room); or • Cost burdens exceeding 30 percent of gross income (including utilities).
Severe Housing Problems:
• Units with physical defects (lacking complete kitchen or bathroom); • Overcrowded conditions (more than 1.5 persons per room); or • Cost burdens exceeding 50 percent of gross income (including utilities).
Types of housing challenges in the City vary according to household income, type, and tenure.
Table C-14 shows the housing assistance needs of lower-income households. In general, there are more renter households (53 percent) than owner-occupied households (47 percent) in the City of Santa Cruz. Approximately 14.9 percent of owner-occupied households experience at least one housing problem. For renters, 31.4 percent of households experience at least one housing problem. An estimated 29.8 percent of the City’sresidents experience at least one severe housing challenge. More renters (21.7 percent) than owners (8.1 percent) experience a severe housing challenge. These findings may reflect the level of control over maintenance and repairs. Renters typically rely on property owners and management companies to provide repair services and maintenance, which can result in higher levels of housing problems. In addition, homeowners have a vested interest in keeping their properties in good condition while rental property owners and/or managers are looking at the return to investment and may choose to delay repairs.
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Appendix C: Housing Needs Assessment C-15
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Table C-14: Housing Assistance Needs of Lower-Income Households Housing Challenge Owner Total HH
Percent Renter Total HHPercent Total Total HHPercent
Housing Challenge Overview*
Household has at least one of four
Housing Challenge 3,360 14.9% 7,090 31.4% 10,450 46.3%
Household has no Housing
Challenges or cost burden not
available, no other challenges
7,255 32.1% 4,870 21.6% 12,125 53.7%
Total 10,615 47% 11,960 53% 22,575 100.0%
Severe Housing Challenge Overview**
Household has at least one of four
Severe Housing Challenges 1,830 8.1% 4,895 21.7% 6,725 29.8% Household has no Severe Housing
Challenges or cost burden not
available, no other challenges
8,790 38.9% 7,070 31.3% 15,860 70.2%
Total 10,620 47.0% 11,965 53.0% 22,585 100%
Note: “% of total HH” equals Percent of total Households in the City of Santa Cruz * The four housing challenges are: incomplete kitchen facilities, incomplete plumbing facilities, more than one person living per room, and cost burden greater than 30 percent.
** The four severe housing challenges are: incomplete kitchen facilities, incomplete plumbing facilities, more than 1.5 persons per room, and cost burden greater than 50 percent.
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) 2015-2019
Table C-15 includes data characterizing affordability and cost burden for various income groups.
More renters than homeowners are subject to at least one housing challenge in the City. The extremely low-income household need is generally estimated as 50 percent of the very lowincome RHNA. The City’s very-low-income RHNA is 857 units; therefore, the projected housing need for extremely low-income households is 429 units.
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Appendix C: Housing Needs Assessment C-16
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Table C-15: Housing Challenges for All Households by Income Category Income Category
Owner
Household has at
least one of four
Housing Challenges
% of
Owner
HH
Household has no Housing
Challenges OR cost burden
not available
% of
Owner HH
Extremely Low (< 30%) 1,125 10.6% 180 1.7%
Very Low (31% to 50% HAMFI) 435 4.1% 365 3.4%
Low (51% to 80% HAMFI) 620 5.8% 730 6.9%
Moderate (81% to 100% HAMFI) 315 3.0% 735 6.9%
Above Moderate (>100% HAMFI) 865 8.1% 5,250 49.5%
Total 3,360 31.7% 7,260 68.4%
Income Category
Renter
Household has at
least one of four
Housing Challenges
% of
Renter HH
Household has no Housing
Challenges OR cost
burden not available
% of
Renter HH
Extremely Low (< 30%) 3,460 28.9% 875 7.3%
Very Low (31% to 50% HAMFI) 1,470 12.3% 180 1.5%
Low (51% to 80% HAMFI) 1,290 10.8% 470 3.9%
Moderate (81% to 100% HAMFI) 565 4.7% 695 5.8%
Above Moderate (>100% HAMFI) 315 2.6% 2,655 22.2%
Total 7,100 59.4% 4,875 40.8%
Total Households (Owner and
Renter) 10,460 46.3% 12,135 53.8%
*The four housing challenges are: incomplete kitchen facilities, incomplete plumbing facilities, more than one person per room, and cost burden greater than 30%
** The four severe housing challenges are: incomplete kitchen facilities, incomplete plumbing facilities, more than 1.5 persons per room, and cost burden greater than 50%
Note: HAMFI equals HUD Area Median Family Income, this is the median family income calculated by HUD for each jurisdiction, to determine Fair Market Rents (FMRs) and income limits for HUD programs. HAMFI will not necessarily be the same as other calculations of median incomes (such as a simple Census number), due to a series of adjustments that are made.
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) 2015- 2019
1. Overcrowding
As described above, “overcrowding” is defined by the U.S. Census as a housing unit occupied by more than one person per room in a unit (including bedrooms, living room, and dining room, but excluding hallways, the kitchen, and bathrooms). An overcrowded household results from either a lack of affordable housing (which forces more than one household to live together) and/or a lack of available housing units of adequate size, especially for large families.
Overcrowded (more than one person per room) and severely overcrowded (more than 1.5 persons per room) households can lead to neighborhood deterioration due to the intensive use of individual housing units leading to excessive wear and tear, and the potential cumulative overburdening of community infrastructure and service capacity. Furthermore, overcrowding in neighborhoods can lead to an overall decline in social cohesion and environmental quality. Such decline can often spread geographically and impact the quality of life and the economic value of property. The combination of lower incomes and high housing costs results in many households living in overcrowded housing conditions.
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Table C-16 below illustrates the severity of overcrowding in the City of Santa Cruz by household tenure. About 0.8% of owner-occupied units experience overcrowding, while 1.3 percent of renter-occupied units experience overcrowding. Additionally, 0.2 percent of owner-occupied units experience severe overcrowding, while 2.4 percent of renter-occupied experience severe overcrowding. Overall, 1,069 units (4.7 percent) experience some form of overcrowding in the City. Increasing the opportunities for housing of all types and appropriate sizes for different households can help mitigate overcrowded units.
Table C-16: Overcrowding by Tenure
Tenure
Overcrowded Units
(1.0 to 1.50 persons/room)
Severely Overcrowded Units
(>1.51 persons/room)
Total Overcrowded
Occupied Units
Count
Percent of Total
Occupied Units Count
Percent of Total
Occupied Units Count
Percent of Total
Occupied Units
Owner
Occupied 178 0.8% 37 0.2% 215 0.9%
Renter
Occupied 300 1.3% 554 2.4% 854 3.8%
Total 478 2.1% 591 2.6% 1069 4.7%
Source: American Community Survey, Table B25014, 5-Year Estimates, 2020 Table C-17 below shows that owner-occupied housing units make up 20.1 percent of the overcrowded units in the City. In comparison, renter-occupied units make up 79.9 percent of overcrowded units. The City of Santa Cruz has the second highest percentage of renter-occupied and owner-occupied overcrowded units compared to nearby jurisdictions.
Table C-17: Overcrowded Housing Units by Tenure
Jurisdiction
Owner-Occupied Overcrowded Units Renter-Occupied Overcrowded Units Total Overcrowded
Units
Count
Percent of
Overcrowded
Units
Total
Units Count
Percent of
Overcrowded
Units
Total
Units Total Percent of Total Units
Santa Cruz
County 2028 3.5% 58,094 4563 12.0% 38,181 6591 6.8%
Capitola 24 14.0% 2,222 147 86.0% 2,436 171 3.7%
City of Santa
Cruz
215 20.1% 10,486 854 79.9% 12,158 1069 4.7%
Scotts Valley 24 43.6% 3,488 31 56.4% 1,291 55 1.2%
Watsonville 648 24.1% 6,437 2044 75.9% 7,880 2692 6.8%
Source: American Community Survey, Table B25014, 5-Year Estimates, 2020.
2. Overpayment (Cost Burden)
State and federal standards indicate that a household paying more than 30 percent of its income for housing is overpaying. Overpayment for housing can cause an imbalance on the remainder of a household’s budget.
Table C-18 below summarizes The City of Santa Cruz’s cost burdened households. About 55.4 percent of renters are cost burdened, with an additional 36 percent who are severely cost
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burdened. In comparison, 29.7 percent of homeowners are cost burdened, with an additional 14.5 percent being severely cost burdened. As shown below, renters in the lower income levels are more likely to experience a severe cost burden but are less likely to experience a cost burden as their incomes increase. This may reflect a willingness of households with larger incomes to invest in home ownership even if it will cost them a higher percentage of their incomes.
Table C-18: Summary of Housing Overpayment
Income by Cost
Burden*
Owner Renter
Cost
Burden
> 30%
% of
Owner
HH
Cost
Burden
> 50%
% of
Owner
HH
Cost
Burden
> 30%
% of
Renter
HH
Cost
Burden
> 50%
% of
Renter
HH
Household
Income is < 30%
HAMFI
1,120 10.6% 800 7.5% 3,360 28.1% 3,155 26.4%
Household
Income is 31% to
50% HAMFI
435 4.1% 265 2.5% 1,405 11.7% 925 7.7%
Household
Income is 51% to
80% HAMFI
570 5.4% 250 2.4% 1,165 9.7% 200 1.7%
Household
Income is 81% to
100% HAMFI
315 3.0% 125 1.2% 475 4.0% 30 0.3%
Household
Income is >100%
HAMFI
710 6.7% 100 0.9% 220 1.8% 0 0.0%
Total 3,150 29.7% 1,540 14.5% 6,625 55.4% 4,310 36.0%
Note: HAMFI equals HUD area median family income, this is the median-family income calculated by HUD for each jurisdiction, to determine Fair Market Rents (FMRs) and income limits for HUD programs. HAMFI will not necessarily be the same as other calculations of median incomes (such as a simple Census number), due to a series of adjustments that are made.
* Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities). For owners, housing cost is "select monthly owner costs", which includes mortgage payment, utilities, association fees, insurance, and real estate taxes.
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) 2015-2019
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E. Special Needs Groups
Special needs populations as defined by the California Housing and Community Development Department (HCD) include seniors, persons with disabilities, female-headed households, large households, farmworkers, persons experiencing homelessness, and students. Special needs groups may have lower-incomes because of their conditions. Special circumstances may be related to one’s employment and income, family characteristics, disability and household characteristics, or other factors. Consequently, certain residents in the City of Santa Cruz may experience higher incidences of housing overpayment (cost burden), overcrowding, or other housing problems.
1. Seniors
The senior population is generally defined as those 65 years or older. They may have several concerns such as limited and fixed incomes, high health care costs, higher incidence of mobility and self-care limitations, and transit dependency. As a result, the senior population has specific housing needs which include affordable housing, care facilities, and other housing that includes planned service components. Table C-19 shows that the City has the second to lowest percentage of persons aged 65 and over, compared to nearby jurisdictions.
Table C-19: Persons Aged 65 and Over
Jurisdiction Population Count Percent
Santa Cruz County 44,913 16.4%
Capitola 2,143 21.2%
City of Santa Cruz 8,117 12.5%
Scotts Valley 2,463 20.4%
Watsonville 5,635 10.8%
Source: American Community Survey, Table S0101, 5-Year Estimates, 2020.
Table C-20 summarizes the incomes of senior householders in the City. Of all senior householders,
25.3 percent earn less than 30 percent of the Median Household Income (MHI), and 42.5 percent earn less than 50 percent of the MHI. In total, 53.7 percent of senior households are considered low-income and earn less than 80 percent of the MHI.
Table C-20: Elderly Householders by Income
Income Category Total Percent of Total Senior
Householders
Extremely Low (<30% MHI) 1,406 25.3%
Very Low (31% to 50% MHI) 957 17.2%
Low (51% to 80% MHI) 621 11.2%
Moderate (81% to 100% MHI) 619 11.1%
Above Moderate (>100% MHI) 1,960 35.2%
Total 5,563 --
Note: Median Household Income (MHI) - $86,618
Source: American Community Survey, Table B19037, 5-Year Estimates, 2020.
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2. Persons with Physical and Developmental Disabilities Physical and developmental disabilities can hinder access to traditionally designed housing units as well as potentially limit the ability to earn adequate income. Physical, mental, and/or developmental disabilities may prevent a person from earning income, restrict mobility, or make self-care difficult. Thus, persons with disabilities often have special housing needs related to limited earning capacity, a lack of accessible and affordable housing, and higher health costs. Some residents suffer from disabilities that require living in a supportive or institutional setting.
Many people with developmental disabilities can live and work independently within a conventional housing environment. Individuals with more severe developmental disabilities may require a group living environment where supervision is provided. The most severely affected individuals may require an institutional environment where medical attention and physical therapy are provided. Because developmental disabilities exist before adulthood, the first issue in supportive housing for persons with developmental disabilities is the transition from the person’s living situation as a child to an appropriate level of independence as an adult.
There are resources that may be beneficial for people living with a disability, including rent subsidized homes, licensed and unlicensed single-family residences, inclusionary housing, Housing Choice vouchers, special programs for home purchase, HUD housing, and SB 962 (veterans) homes. The design of housing-accessibility modifications, the proximity to services and transit, and the availability of group living opportunities represent some of the types of considerations that are important in serving the needs of this group. Incorporating ‘barrier-free’ design in new multifamily residences (as required by California and Federal Fair Housing laws) is especially important to provide the widest range of choices for residents with disabilities. Special consideration should also be given to the affordability of housing, as people with disabilities may be living on a fixed income.
The ACS identifies six disability types: hearing, vision, cognitive, ambulatory, self-care, and independent living. The U.S. Census and ACS provide clarifying questions to determine persons with disabilities and differentiate disabilities within the population. The ACS defines a disability as a report of one of the six disabilities identified by the following questions:
• Hearing Disability: Is this person deaf or do they have serious difficulty hearing? • Visual Disability: Is this person blind or do they have serious difficulty seeing even when wearing glasses?
• Cognitive Difficulty: Because of a physical, mental, or emotional condition, does this person have serious difficulty concentrating, remembering, or making decisions? • Ambulatory Difficulty: Does this person have serious difficulty walking or climbing stairs? • Independent Living Difficulty: Because of a physical, mental, or emotional condition, does this person have difficulty doing errands alone such as visiting a doctor’s office or shopping?
According to the 2020 ACS data, about 9.7 percent of the City’s population has a disability (Table C-21).
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Table C-21: Disability Status
Disability Type
Population with a Disability
Total
Percent of
Population
with
Disability
Percent of
Total
Population Under 18 18 to 64 65 and
Over
Population with a
Hearing Difficulty 65 448 987 1,500 13.7% 2.3%
Population with a
Vision Difficulty 47 556 545 1,148 10.5% 1.8%
Population with a
Cognitive Difficulty 227 2,075 595 2,897 26.4% 4.5%
Population with an
Ambulatory Difficulty 0 933 1,270 2,203 20.1% 3.4%
Population with a Selfcare Difficulty 54 461 588 1,103 10.1% 1.7% Population with an
Independent Living
Difficulty
- 1,019 1,091 2,110 19.3% 3.3%
Total 393 5,492 5,076 10,961
Source: American Community Survey, Table S1810, 5-Year Estimates, 2020.
The California Department of Developmental Services (CDDS) provides estimates of persons with developmental disabilities in the City of Santa Cruz, as shown in Table C-22a below. As of January 2022, CDDS identified 64 juvenile persons and 125 adults of having developmental disability in the ZIP code 95060. This ZIP code is contained within the City, but doesn’t include all areas of the City, so this is not a complete tally of all people with developmental disabilities within the City.
Table C-22a: Developmental Disability Status for ZIP Code 95060 Disability Type Number of Residents
Living Arrangement
Home of Parent/Guardian 135
Independent/Supported Living 46
Community Care Facility <11
Intermediate Care Facility 0
Foster/Family Home <11
Other <11
Total >181
Age Range
0-17 Years Old 64
18+ Years Old 125
Source: CA DDS data by ZIP Code, January 2022.
Housing Choices is a housing service provider funded by the San Andreas Regional Center (SARC) to support people with developmental disabilities to be fully integrated in the affordable housing supply within the Counties of Santa Cruz, San Benito, and Monterey. They provide housing navigation services for individuals and families, and they also partner with affordable housing developers to make inclusive housing commitments for people with developmental and other
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disabilities in their housing projects. Housing Choices reported the City-specific data on population with developmental disabilities, as shown in Table C-22b.
Table C-22b: City and County Population with Development Disabilities Age City of Santa Cruz Santa Cruz County
Count Percent Count Percent
Under Age 18 88 24% 407 29%
18 Years and Older 275 76% 1,009 71%
Total 363 100% 1,416 100%
Source: Housing Choices – SARC (November 2021).
Table C-22c also reports living arrangements of adults in the City and County. Housing Choices reports – SARC recognizes the family home as the most prevalent living arrangements for adults in the City and the County. The home is considered to be a community-based living arrangement; however, there is an increased risk of displacement or homelessness when aging parents are no longer able to provide housing. For adults with developmental disabilities, the most integrated and least restrictive living arrangement is living independently in their own apartment with living supportive services. Only 35 percent of adults with developmental disabilities in the City have transitioned into their own apartment due to a lack of deeply affordable housing available. Eight percent of City adults with developmental disabilities live in licensed care facilities, which heavily limits interactions with people without disabilities. According to Housing Choices, not planning for more inclusive housing for people with developmental disabilities to transition into when aging parents are no longer able to provide housing, the City will see more adults falling into homelessness, being displaced, or being forced to live in segregated settings.
Table C-22c: Living Arrangements of Adults with Development Disabilities Adult Living
Arrangement
City of Santa Cruz Santa Cruz County
Count Percent Count Percent
In the family home 151 55% 630 62%
Own apartment
with supportive
services
97 35% 248 25%
Licensed Facilities 23 8% 125 12%
Other (including
homeless) 4 2% 6 1%
Total 275 100% 1,009 100%
Source: Housing Choices – SARC (November 2021).
As provided by Housing Choices during the Housing Element update process – the Department of Developmental Services reports a decrease of seven percent in the number of people with developmental disabilities able to be housing in licensed care facilities in Santa Cruz County between September 2015 and June 2021. The trend is the result of 1) increased housing prices making it unfeasible for new facilities to open when old ones close and 2) decrease in demand as more adults choose to live in less restrictive settings and therefore increasing the need for affordable housing options coordinated with supportive services funded by SARC. The County’s reduced supply of licensed care facilities increases the likelihood that Santa Cruz adults with
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developmental disabilities will be forced out of the County when their parents are no longer able to house them – unless there is a significant improvement in access to affordable housing.
A letter submitted by Housing Choices in April 2023 (and included in Appendix A) provides additional data and notes on Santa Cruz County trends for persons with developmental disabilities, including:
• Increase of autism diagnosis in adults in their 20s and 30s – 19 percent total increase between 2015 and 2021.
• Longer life span – the number of residents with developmental disabilities age 62 and older grew by 79 percent between 2015 and 2021.
• Residents experience increased displacement from the County because of a lack of residential living options.
• Higher rates of physical disabilities – 26 percent of residents with developmental disabilities have limited mobility.
• Ineligibility to afford rental units due to reliance on a monthly income of about $1,000 from the Supplemental Security Income (SSI) program.
• Reliance on transit to travel throughout the community.
3. Large Households
Large households are defined as those consisting of five or more members. These households comprise a special needs group because many communities have a limited supply of adequately sized, affordable housing units. To save for other necessities such as food, clothing, and medical care, it is common for lower-income large households to reside in smaller units with an inadequate number of bedrooms, which frequently results in overcrowding and can contribute to faster rates of deterioration.
Securing housing large enough to accommodate all members of a household is more challenging for rentersfor several reasons. Multifamily rental units are typically physically smaller than singlefamily units, which are generally fewer and more expensive. While apartment complexes offering two and three bedrooms are common, apartments with four or more bedrooms are rare. It is more likely that large households will experience overcrowding in comparison to smaller households. Additionally, single-family residences with higher bedroom counts, whether rental or ownership units, are rarely affordable to lower-income households. There is also competition for larger units with students living together in a single household, which further limits the availability of larger units.
Table C-23 below provides a breakdown of large households by tenure in the City of Santa Cruz.
The data identifies the household size of homeowners and renters living in a large household.
Large households are units with five or more occupants. About 8.1 percent of all households in the City are large households. There are more owner-occupied units with five occupants and six occupants than renter-occupied households. However, there are more renter-occupied units with seven occupants than owner-occupied.
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4. Single-Parent Households
Single-parent households often require special consideration and assistance. They have a greater need for affordable and accessible day care, health care, and other supportive services. Many of the female-headed households are more likely to have lower incomes than similar two-parent households.
The City of Santa Cruzhas 1,658 single-parent households, as shown in Table C-24. Out of the total City of Santa Cruz households, 7.1 percent are single-parent males and 8.4 percent are singleparent females. In comparison, the county has 4.6 percent of households that are single-parent males and 9 percent are single-parent females. In the City, about 2 percent of single-parent households were reported to be living in poverty in 2020.
Table C-24: Single Parent Households
Jurisdiction
Single-Parent Male, No
Spouse Present
Single Parent-Female,
No Spouse Present
Single-Parent HH
Living in Poverty Single
Parent HH
Percent
of Total
Count Percent Count Percent Count Percent HH*
City of Santa
Cruz 761 7.1% 897 8.4% 210 2.0% 1,658 15.5%
Santa Cruz
County 2,787 4.6% 5,493 9.0% 1,670 2.7% 8,280 13.6%
Note: HH = Households
* Percent of total Households
Source: American Community Survey, Table B17010, 5-Year Estimates, 2020 Table C-25 shows the breakdown of female-headed households in the City. Of the total of the City’s household, 15.7 percent are single female households with no spouse present. Of those households, 2.4 percent are single female households living in poverty and 2 percent are single female parent households living in poverty. The percentage of single female households and single parent female household are similar to the percentages for the City and the County. In the City, about 8.4 percent of the total households were estimated to be single parent female households in 2020 while the percent for the County is slightly higher at 9 percent.
Table C-23: Large Households by Tenure
Household Size
Owner Renter Total
Count Percent of
Owner HH Count Percent of Renter HH Count Percent of Total HH 5-Person Household 529 5.0% 537 4.4% 1,066 4.7%
6-Person Household 157 1.5% 164 1.3% 321 1.4%
7-or-More Person
Households 135 1.3% 309 2.5% 444 2.0%
Total 821 7.8% 1,010 8.3% 1,831 8.1%
Source: American Community Survey, Table B25009, 5-Year Estimates, 2020.
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Table C-25: Female Headed Households
Jurisdiction
Single Female HH,
No Spouse Present
Single Female HH
Living in Poverty
Single Parent Female,
No Spouse Present
Single Parent Female
HH Living in Poverty
Count Percent Count Percent Count Percent Count Percent City of
Santa Cruz 1,680 15.7% 252 2.4% 897 8.4% 210 2.0%
Santa Cruz
County 9,718 16.0% 1,676 2.8% 5,493 9.0% 1,200 2.0%
Note: HH = Households
1. Percent of total Households
Source: American Community Survey, Table B17012, 5-Year Estimates, 2020.
5. Farmworkers
Farmworkers are traditionally defined by HCD as people whose primary incomes are earned through permanent or seasonal agricultural labor. Generally, permanent farmworkers (working 150 days or more) work in the fields, processing plants, or support activities on a year-round basis.
When workload increases during harvest periods, the labor force is supplemented by seasonal farmworkers, often supplied by a labor contractor. For some crops, farms may hire migrant farmworkers, defined as those whose travel distance prevents them from returning to their primary residence daily. Farmworkers have special housing needs because they generally earn lower incomes than many other workers and move throughout the year from one harvest location to the next.
The U.S. Department of Agriculture, National Agriculture Statistics provides data on hired farmworkers across the United States at both a state and county level. Within Santa Cruz County, there were a total of 16,114 hired farmworkers in 2017. A total of 11,254 are considered permanent and 4,860 were considered seasonal (working less than 150 days annually). The County also reported a total of 2,254 migrant farmworkers.
According to the American Community Survey, Santa Cruz County has 4,772 and the City has 257 people employed in Farming, Fishing, and Forestry. This occupation earns one of the lowest salaries in comparison to other occupations, with an estimated median income of $30,567. This is considered an extremely low-income for the City.
6. Extremely Low-Income (ELI) and Poverty Status
CHAS data indicates there are approximately 3,100 low-income households and 2,445 very lowincome households in the City of Santa Cruz. Very low-income households are those households that earn 50 percent or less of the area median income (AMI) for Santa Cruz County. Extremely low-income households are those households that earn less than 30 percent of AMI. Extremely low-income households are generally more likely to experience overpayment, overcrowding, or substandard housing conditions, and are more likely to be housed in transitional and supportive housing.
According to CHAS, there are approximately 5,640 extremely low-income households in the City of Santa Cruz (renters and owners).
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According to 2020 ACS data, 20 percent of the City’s population lives in poverty. Figure C-5 illustrates the percentage of people within each racial and ethnic group living below the poverty level. Asians experienced the most poverty at 37.3 percent. Followed by Hispanic or Latino origin at 30.9 percent. A composite group of “some other race alone” makes up 38.3 percent of those living in poverty.
Figure C-5: Percent below Poverty Level, by Race and Hispanic or Latino Origin Source: American Community Survey, Table S1701, 5-Year Estimates, 2020.
Additional analysis and data on ELI households in Santa Cruz is provided in Appendix D.
7. Persons Experiencing Homelessness
Homelessness has become an increasingly important issue across the State and the region.
General factors contributing to the rise in homelessness include increased unemployment and underemployment, a lack of housing affordable to lower- and moderate-income persons (especially extremely low-income persons), reductions in public subsidies to the poor, and the deinstitutionalization of the mentally ill.
State law mandates that municipalities address the special needs of homeless persons within their jurisdictional boundaries. “Homelessness” as defined by HUD has been updated to include the following descriptions for homeless:
• People who are living in a place not meant for human habitation, in an emergency shelter, in transitional housing, or exiting an institution where they temporarily resided. • People who are losing their primary nighttime residence, which may include a motel or hotel or a doubled-up situation, within 14 days and lack resources or support networks to remain in housing.
16.0% 14.8%
26.9%
37.3%
10.0%
38.3%
12.2%
30.9%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
White alone Black or
African
American
alone
American
Indian and
Alaska
Native alone
Asian alone Native
Hawaiian
and Other
Pacific
Islander
alone
Some other
race alone
Two or more
races
Hispanic or
Latino origin
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• Families with children or unaccompanied youth who are unstably housed and likely to continue in that state. This applies to families with children or unaccompanied youth who have not had a lease or ownership interest in a housing unit in the last 60 days or more, have had two or more moves in the last 60 days, and who are likely to continue to be unstably housed because of disability or multiple barriers to employment. • People who are fleeing or attempting to flee domestic violence, have no other residence, and lack the resources or support networks to obtain other permanent housing.
These definitions do not include persons living in substandard or overcrowded housing units, persons being discharged from mental health facilities (unless the person was homeless when entering and is considered homeless at discharge), or persons who may be at risk of homelessness.
The 2022 Santa Cruz County Homeless Point-in-Time Count and Survey was conducted in Santa Cruz to identify where homeless individuals are living in the County and to provide information about the County’s homeless population at a point in time. HUD requires communities to conduct the Point-in-Time Count every two years. The count results are shown in Table C-26. In 2019, the County counted 2,167 individuals experiencing homelessness in Santa Cruz County. Of those counted, 1,700 were unsheltered and 467 were sheltered. In their most recent count in 2022, the County counted 2,299 individuals experiencing homelessness in Santa Cruz County. Of those counted, 1,774 were unsheltered and 525 were sheltered. The number of individuals who experienced homelessness increased by 132 from 2019 to 2022. Across the two survey years listed above, the City of Santa Cruz had the highest rate of homelessness compared to nearby jurisdictions.
Table C-26: Homelessness in the City of Santa Cruz and Surrounding Cities (2019-2022) Jurisdictions
Unsheltered Sheltered Total
2019 2022 2019 2022 2019 2022 Percent
Change
Santa Cruz County (total) 1,700 1,774 467 525 2,167 2,299 6% Capitola 6 35 0 0 6 35 *
City of Santa Cruz 865 1,058 332 381 1,197 1,439 20%
Scotts Valley 4 48 0 0 4 48 *
Watsonville 257 222 113 144 370 366 -1%
Source: Santa Cruz County Homeless Census & Survey Comprehensive Report 2022. *: Percentage change is not calculated for jurisdictions with fewer than 20 persons The 2023 Point-in-Time Count and Survey was released in August 2023. The results are shown in Table C-26.a. Across the county, the results show a 21.5 percent decline in the number of people experiencing homelessness. In the City of Santa Cruz, the results show a 29% decrease in the number of people experiencing homelessness between 2022 and 2023.
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Table C-26.a: Homelessness in the City of Santa Cruz and Surrounding Cities (2022-2023) Jurisdictions
Unsheltered Sheltered Total
2022 2023 2022 2023 2022 2023
Percent
Change
Santa Cruz County (total) 1,774 1,426 525 378 2,299 1,804 -21% Capitola 35 23 0 0 35 23 -34%
City of Santa Cruz 1,058 746 381 279 1,439 1,028 -29%
Scotts Valley 48 24 0 0 48 24 -50%
Watsonville 175 322 144 99 366 421 15%
Source: 2023 County of Santa Cruz Homeless Count & Survey Comprehensive Report.
8. Students
The need for student housing is another significant factor affecting housing demand. In the City, student housing demand is strongest during the school year, roughly August through May. The impact upon housing demand is critical in areas that surround universities and colleges. Located in the City of Santa Cruz is University of California, Santa Cruz (UCSC); and colleges/universities near the City include Cabrillo College, West Valley College, San Jose State University, and Santa Clara University. Young adults between the ages of 15 to 24 represent 34.6 percent of the City’s total population and has been increasing since 2010. The City has an estimated 20,634 total students enrolled in an undergraduate program or professional graduate school, according to 2020 ACS data.
Typically, students are low-income and are, therefore, affected by a lack of affordable housing, especially within easy commuting distance from campus. Therefore it is important for the City to consider the student population in its housing needs assessment. Students often seek shared housing situations to decrease expenses and can be assisted through roommate referral services offered on and off campus. A lack of affordable housing also influences choices students make after graduating. In recent years, the City has received multiple applications for single-family residences near campus with large numbers of bedrooms, as many as seven or eight, that are obviously designed to house students. ADUs, especially near campus, are also a good source of housing for students.
The University of California has set statewide goals of increasing university enrollment, which have been broken down by campus. UCSC’s target is to increase the student population by approximately 8,500 students by 2040 and they have committed to housing 100 percent of that student population growth on campus. Their latest Long Range Development Plan (LRDP) also predicts additional growth in faculty and staff and commits to building up to 558 units of housing to meet the faculty and staff growth.
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F. Housing Stock Characteristics
The City of Santa Cruz’s housing stock includes all housing units located within its jurisdiction.
Housing stock growth, type, age and condition, tenure, vacancy, and cost are all important factors in determining the community's housing needs. This section details the City’s housing stock characteristics to identify how well the needs of current and future residents are addressed.
1. Housing Growth
Table C-27 below displays housing stock growth data for the City of Santa Cruz and nearby jurisdictions. According to the ACS data, the City added 751 additional housing units between 2015 and 2020, a 3.2 percent increase. This is an improvement from 2010 and 2015 when the number of housing units went down by 0.5 percent.
Table C-27 Housing Unit Growth Trends
Jurisdiction 2010 2015 2020 Percent Change
2010 to 2015
Percent Change
2015 to 2020
Santa Cruz County 104,444 105,034 105,819 0.6% 0.7%
Capitola 5,616 5,112 5,292 -9.0% 3.5%
City of Santa Cruz 23,614 23,499 24,250 -0.5% 3.2%
Scotts Valley 4,661 4,390 5,252 -5.8% 19.6%
Watsonville 14,498 14,744 14,881 1.7% 0.9%
Source: American Community Survey, Table DP04, 5-Year Estimates, 2010, 2015, 2020
2. Housing Types
Table C-28 provides a breakdown of the number of housing units by type for Santa Cruz County and City. Majority of the housing in the City is detached single-family (56.8 percent). About 33.1 percent of the City’s housing units are multi-family residences. Mobile homes, boats, and other types of housing make up the smallest number of housing units by type.
Table C-28: Total Housing Units by Type
Jurisdiction
Single- Family
Detached
Single-Family
Attached
Multi-Family
Mobile Homes,
Boats, and other
Types of Housing
Count Percent Count Percent Count Percent Count Percent City of Santa Cruz 12,854 56.8% 1681 7.4% 7,501 33.1% 626 2.8% Santa Cruz County 61,698 64.1% 7389 7.7% 20,879 21.7% 6,309 6.6% Source: American Community Survey, Table S2504, 5-Year Estimates, 2020.
3. Housing Availability and Tenure
Housing tenure and vacancy rates generally influence the supply and cost of housing. Housing tenure refers to whether a unit is owner occupied or renter occupied. The tenure characteristics in a community can indicate several aspects of the housing market, such as affordability, household stability, and availability of unit types, among others. In many communities, tenure distribution generally correlates with household income, composition, and age of the resident.
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Appendix C: Housing Needs Assessment C-30
Santa Cruz Housing Element Update
Homeowners tend to gravitate towards single-family, detached residences as they are typically better suited for larger households and more affordable to home buyers rather than renters. Table C-29 shows that in 2010, 54.1 percent of renters lived in multi-family residences as opposed to 4.9 percent of homeowners who lived in a multi-family residence. For homeowners, 81.8 percent lived in single-family, detached residences. In total, 45.5 percent of all occupied housing units were made up of homeowners and 54.5 percent renters.
Table C-29: Occupied Housing Units by Type and Tenure (2010) Tenure
SingleFamily
Detached
SingleFamily
Attached
Multi-Family
Mobile
Homes,
Boats, and
other Types
of Housing
Total
Number of
Occupied
Units
Total
Percent of
Occupied
Units
Owner Occupied 81.8% 10.6% 4.9% 2.7% 9,874 45.5%
Renter Occupied 35.1% 10.5% 54.1% 0.3% 11,844 54.5%
Source: American Community Survey Table B25032, 5-Year Estimates, 2010.
Table C-30 shows that the total percent of owner-occupied housing units went up by 0.8 percent while the renter-occupied housing units went down by 0.8 percent compared to 2010. Multifamily occupancy went up for both owner-occupied and renter-occupied housing units by 1.6 percent and 1.9 percent respectively. Mobile homes, boats, and other types of housing also increased by 1.4 percent for owner occupied housing units and 1.3 percent for renter occupied housing units. The percent of single family detached housing units experienced an insignificant increase between 2010 and 2020.
Table C-30: Occupied Housing Units by Type and Tenure (2020) Tenure
SingleFamily
Detached
SingleFamily
Attached
Multi-Family
Mobile
Homes,
Boats, and
other Types
of Housing
Total
Number of
Occupied
Units
Total
Percent of
Occupied
Units
Owner Occupied 81.9% 7.5% 6.5% 4.1% 10,486 46.3%
Renter Occupied 35.1% 7.4% 55.9% 1.6% 12,158 53.7%
Source: American Community Survey Table B25032, 5-Year Estimates, 2020.
The City has one of the smaller average household sizes compared to the nearby jurisdictions.
Table C-31 shows that average household size of both the City’s owner-occupied households and renter-occupied households is lower than the average household size in the County. The City has an average of 2.53 persons per owner-occupied household and 2.31 per renter-occupied household.
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Appendix C: Housing Needs Assessment C-31
Santa Cruz Housing Element Update
Table C-31: Average Household Size by Tenure
Jurisdiction Owner-Occupied
Households
Average Owner
Household Size
Renter-Occupied
Households
Average Renter
Household Size
Santa Cruz County 60.3% 2.68 39.7% 2.73
Capitola 47.7% 2.06 52.3% 2.18
City of Santa Cruz 46.3% 2.53 53.7% 2.31
Scotts Valley 73% 2.63 27% 2.08
Watsonville 45% 3.44 55% 3.79
Source: American Community Survey Table B25010 and B25032, 5-Year Estimates, 2020.
Vacancy rates are also an important housing indicator as they indicate the degree of housing choices available. High vacancy rates usually indicate low demand and/or high supply conditions in the housing market. High vacancy rates can be difficult for owners trying to sell or rent. Low vacancy rates usually indicate high demand and/or low supply conditions in the housing market.
Low vacancy rates can inflate prices, making it more difficult for lower- and moderate-income households to find housing. Vacancy rates between two to three percent are usually considered healthy for single-family or ownership housing, and vacancy rates of five to six percent are usually considered healthy for multi-family or rental housing. Vacancy rates must be viewed in the context of all local and regional market characteristics. Because Santa Cruz County and the City of Santa Cruz and Capitola in particular are tourist destinations, vacancy rate statistics often include seasonal vacancies, which artificially inflate the vacancy rates of those cities. Countywide, the City of Santa Cruz has the third highest vacancy rate, behind Capitola and Scotts Valley. As shown in Figure C-6, The City of Santa Cruz has a vacancy rate of 7.4 percent.
Figure C-6: For-Sale and Rental Unit Vacancy Rates by Jurisdiction Source: American Community Survey, CP04, 5-Year Estimates, 2020.
Table C-32 below displays ACS data for vacancy rates in the City of Santa Cruz. The “other vacant housing units” category has the largest percent of vacancy (42 percent), followed by seasonal, recreational, or occasional use housing units (32.2 percent). Seasonal, recreational, or occasional Santa Cruz
County Watsonville Scotts Valley Santa Cruz Capitola
Vacancy Rate 9.0% 3.8% 9.0% 7.4% 12.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
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Appendix C: Housing Needs Assessment C-32
Santa Cruz Housing Element Update
use units may include secondary vacation homes or short-term rental homes; these homes often do not contribute to the housing needs of a community as they are not considered valuable for long-term rental or occupancy purposes.
Table C-32: Vacant Housing Units by Type
Type of Housing Estimate Percent of Vacant
For rent 107 5.9%
Rented, not occupied 174 9.6%
For sale only 123 6.8%
Sold, not occupied 61 3.4%
For seasonal, recreational, or occasional use 582 32.2% Other vacant 759 42%
Total 1,806 100%
Source: American Community Survey, Table B25004, 5-Year Estimates, 2020.
4. Housing Age and Conditions
Housing age can be an important indicator of housing conditions within a community. Housing that is over 30 years old is typically in need of some major rehabilitation, such as a new roof or repairs to the foundation, plumbing, etc. Many federal and state programs also use the age of housing as one factor in determining housing rehabilitation needs.
Figure C-7 illustrates the age of housing stock in the City of Santa Cruz. The majority of the housing stock in the City was built between 1970 and 1979 (19.8 percent) followed by 1939 or earlier (18.3 percent). This reflects an aging housing stock that may need certain updates. Due the aging housing stock in the City, many houses are in need of substantial rehabilitation. Estimates from the code compliance division show that of approximately 375 code compliance cases opened per year, approximately one percent, or around 5 or fewer dwellings, involve significantrehabilitation or replacement. The City estimates that approximately 100 homes are in need of substantial rehabilitation and has added programs to the Policy Program to address these needs.
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Appendix C: Housing Needs Assessment C-33
Santa Cruz Housing Element Update
Figure C-7: Housing Stock Age
Source: American Community Survey, Table B25034, 5-Year Estimates, 2020.
Figure C-8 below displays housing units by the year they were built and sorted by whether they are currently occupied by homeowners or renters. Based on the data below, in general, housing stock built prior to 1970 is more likely to be owner-occupied while in general, a higher percent of the newer housing stock is occupied by renters. This likely reflects the more recent trend of building more multi-family house, while in earlier generations, much of the housing stock being built was single-family.
Figure C-8: Tenure by Year Structure Built
2014 or
later
2010 to
2013
2000 to
2009
1990 to
1999
1980 to
1989
1970 to
1979
1960 to
1969
1950 to
1959
1940 to
1949
1939 or
earlier
Santa Cruz 1.3% 1.1% 6.8% 9.9% 10.4% 19.8% 11.2% 13.0% 8.1% 18.3% 0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
2014 or
later
2010 to
2013
2000 to
2009
1990 to
1999
1980 to
1989
1970 to
1979
1960 to
1969
1950 to
1959
1940 to
1949
1939 or
earlier
Owner Occupied 1.0% 1.9% 5.7% 4.5% 9.6% 16.1% 11.3% 16.5% 9.7% 23.8% Renter Occupied 1.4% 0.6% 7.8% 14.4% 11.0% 23.0% 11.0% 11.5% 5.6% 13.7% 0%
5%
10%
15%
20%
25%
30%
35%
40%
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Appendix C: Housing Needs Assessment C-34
Santa Cruz Housing Element Update
Source: American Community Survey, Table B25036, 5-Year Estimates, 2020.
5. Housing Costs and Affordability
Housing costs in large part reflect the supply and demand of housing in a community. The following summarizes the cost and affordability of the City’s housing stock.
Table C-33 below shows the median home value in the City of Santa Cruz was $895,800 in 2020.
This is significantly above the County median home value at $787,000 and higher than the median home value of any other jurisdiction within the County.
Table C-34 shows median monthly rental rates for units in the City of Santa Cruz. The monthly rental rates for all unit types increased from 2016 to 2020, with the highest increase in units with five or more bedroom. The true costs of rent may be higher than the ACS estimates but the overall trend and increase in rental costs highlights the dramatic increase in less than a decade. It is possible that the increase in five or more bedroom units may reflect the recent increase in very large units with seven or eight bedrooms, largely rented to students.
Table C-33: Median Home Value by Community
Jurisdictions Median Home Value
Santa Cruz County $787,000
Capitola $712,000
City of Santa Cruz $895,800
Scotts Valley $811,900
Watsonville $500,300
Source: American Community Survey, Table DP04, 5-Year Estimates, 2020.
Table C-34: Median Gross Rent by Bedroom (2016-2020)
Unit Type 2016 2017 2018 2019 2020 % Change
2016-2020
Studio $934 $1,014 $1,092 $1,210 $1,185 26.9%
1 bedroom $1,341 $1,382 $1,529 $1,685 $1,750 30.5%
2 bedrooms $1,759 $1,807 $1,993 $2,112 $2,235 27.1%
3 bedrooms $2,224 $2,164 $2,331 $2,412 $2,567 15.4%
4 bedrooms $2,471 $2,308 $2,368 $2,467 $2,624 6.2%
5 or more bedrooms $1,873 $2,180 $2,618 $2,794 $2,738 46.2% Source: American Community Survey, Table B25031, 5-Year Estimates, 2016, 2017, 2018, 2019, 2020 Beginning in 2021, City staff has sent out an annual ADU survey to ADU property owners for the specific purpose of providing a more accurate reflection of their affordability, as they are nondeed restricted. Survey results from 2022 showed that for ADU rentals to separate households (as opposed to family members of main dwelling owner), the median rent was $1,779 for a studio, $2,107 for a one-bedroom unit, and $2,075 for a two-bedroom unit. In comparison to the ACS data for 2020, the ADU survey data showed studios to be substantially more expensive, onebedroom ADUs about the same, and two-bedroom ADUs substantially less expensive. It should be noted that in addition to the two-year difference between the ACS data and ADU data, ACS data looked at all unit types whereas the ADU survey evaluated ADUs only, so a direct comparison between the two data sets cannot easily be made.
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Appendix C: Housing Needs Assessment C-35
Santa Cruz Housing Element Update
A 2023 analysis of market value rental rates showed that true rental prices were significantly higher than ACS estimates. The City analyzed rentals found on common websites such as Zillow.com, Appartments.com, Trulia.com, and Hotpads.com.
Table C-35: Median Gross Rent by Bedroom (2023)
Unit Type Cost
Studio $2199
1 bedroom $2734
2 bedrooms $3684
3 bedrooms $4581
4 bedrooms $6100
5 or more bedrooms $7537
Source: Zillow.com, Appartments.com, Trulia.com, and Hotpads.com (Accessed August 14, 2023).
As shown in Table C-35 above, true rental rates often differ from ACS estimates which may not always accurately reflect local market conditions. The City has seen significant increase in housing costs in the last decade and understands the complexity of addressing these issues. The City is dedicated to increasing housing opportunities through the numerous commitments made in the Policy Plan.
Housing affordability can be inferred by comparing the cost of renting or owning a home in the City with the maximum affordable housing costs for households at different income levels. Taken together, this information can generally show who can afford what size and type of housing and indicate the type of households most likely to experience overcrowding and overpayment.
The U.S. Department of Housing and Urban Development (HUD) conducts annual household income surveys nationwide to determine a household’s eligibility for federal housing assistance.
Based on this survey, the State of California Department of Housing and Community Development (HCD) develops income limits based on the Household Area Median Income (HAMI), which can be used to determine the maximum price affordable to households in the upper range of their respective income category. Households in the lower end of each category can afford less by comparison to those at the upper end. The maximum affordable home and rental prices for residents in Santa Cruz County are shown in Table C-36 and Table C-37.
The data shows the maximum amount that a household can pay for housing each month without incurring a cost burden (overpayment). This amount can be compared to median home value (Table C-33) and monthly rental rates (Table C-34) to determine what types of housing opportunities a household can afford.
Extremely Low-Income Households
Extremely low-income households earn less than 30 percent of the County HAMI – up to $32,700 for a one-person household and up to $50,400 for a five-person household in 2022. Extremely low-income households cannot afford market-rate rental or ownership housing in the Citywithout assuming a substantial cost burden.
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Appendix C: Housing Needs Assessment C-36
Santa Cruz Housing Element Update
Very Low-Income Housing
Very low-income households earn between 31 percent and 50 percent of the County HAMI – up to $54,450 for a one-person household and up to $84,000 for a five-person household in 2022.
The maximum affordable purchase price for very low-income households is $196,000 for a oneperson household and $293,600 for a five-person household. A one-person very low-income household can afford to pay up to $1,361 in monthly rent and a five-person very low-income household can pay up to $2,100 in monthly rent. Given housing costs, very low-income households cannot afford market-rate rental or ownership housing in the City without assuming a substantial cost burden.
Low-Income Housing
Low-income households earn between 51 percent and 80 percent of the County’s HAMI - up to $87,350 for a one-person household and up to $134,750 for a five-person household in 2022. The maximum affordable purchase price for a low-income household is $345,000 for a one-person household and $523,250 for a five-person household. A one-person low-income household could afford to pay up to $2,184 in rent per month and a five-person low-income household could afford to pay as much as $3,369 per month. Based on the 2020 rents shown in Table C-34, low-income households in the City of Santa Cruz would be able to find adequately sized affordable apartment units (Table C-37).
Moderate -Income Housing
Persons and households of moderate-income earn between 81 percent and 120 percent of the County’s HAMI – up to $100,200 for a one-person household and up to $154,600 for a five-person household in 2022. The maximum affordable purchase price for a moderate-income household is $402,930 for a one-person household and $613,120 for a five-person household. Moderate income households may be able to purchase a home in the City, depending on the household size.
The maximum affordable rent payment for moderate-income households is between $2,505 and $3,865 per month. Appropriately sized, market-rate rental housing is generally affordable to moderate-income households.
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Appendix C: Housing Needs Assessment C-37
Santa Cruz Housing Element Update
Table C-36: Affordable Housing Costs for Homeowners (2022) Annual Income Mortgage Utilities1 Tax and
Insurance
Total
Affordable
Monthly
Housing Cost
Affordable
Purchase Price
Extremely Low-Income (30% of HAMI)
1-Person $32,700 $458 $237 $123 $818 $97,500
2-Person $37,350 $540 $254 $140 $934 $115,000
3-Person $42,000 $593 $300 $158 $1,050 $126,250
4-Person $46,650 $645 $346 $175 $1,166 $137,500
5-Person $50,400 $665 $406 $189 $1,260 $141,700
Very Low-Income (50% of HAMI)
1-Person $54,450 $920 $237 $204 $1,361 $196,000
2-Person $62,200 $1,068 $254 $233 $1,555 $227,500
3-Person $70,000 $1,188 $300 $263 $1,750 $253,000
4-Person $77,750 $1,306 $346 $292 $1,944 $278,200
5-Person $84,000 $1,379 $406 $315 $2,100 $293,600
Low-Income (80% HAMI)
1-Person $87,350 $1,619 $237 $328 $2,184 $345,000
2-Person $99,800 $1,867 $254 $374 $2,495 $397,600
3-Person $112,300 $2,086 $300 $421 $2,808 $444,320
4-Person $124,750 $2,305 $346 $468 $3,119 $490,880
5-Person $134,750 $2,457 $406 $505 $3,369 $523,250
Moderate-Income (120% HAMI)
1-Person $100,200 $1,892 $237 $376 $2,505 $402,930
2-Person $114,500 $2,179 $254 $429 $2,863 $464,050
3-Person $128,850 $2,438 $300 $483 $3,221 $519,200
4-Person $143,150 $2,696 $346 $537 $3,579 $574,150
5-Person $154,600 $2,879 $406 $580 $3,865 $613,120
1. Utilities include garbage, sewer, water, refrigerator, range, water heating, cooking, heating, and general utilities such as lights.
Source: Santa Cruz County Housing Authority Utility Allowance Schedule; California Department of Housing and Community Development, 2022 State Income Limits, and Kimley Horn and Associates.
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Appendix C: Housing Needs Assessment C-38
Santa Cruz Housing Element Update
Table C-37: Affordable Monthly Housing Cost for Renters (2022) Annual Income Rent Utilities1 Total Affordable Monthly
Housing Cost
Extremely Low-Income (30% of HAMI)
1-Person $32,700 $581 237 $818
2-Person $37,350 $680 254 $934
3-Person $42,000 $750 300 $1,050
4-Person $46,650 $820 346 $1,166
5-Person $50,400 $854 406 $1,260
Very Low-Income (50% of HAMI)
1-Person $54,450 $1,124 237 $1,361
2-Person $62,200 $1,301 254 $1,555
3-Person $70,000 $1,450 300 $1,750
4-Person $77,750 $1,598 346 $1,944
5-Person $84,000 $1,694 406 $2,100
Low-Income (80% HAMI)
1-Person $87,350 $1,947 237 $2,184
2-Person $99,800 $2,241 254 $2,495
3-Person $112,300 $2,508 300 $2,808
4-Person $124,750 $2,773 346 $3,119
5-Person $134,750 $2,963 406 $3,369
Moderate-Income (120% HAMI)
1-Person $100,200 $2,268 237 $2,505
2-Person $114,500 $2,609 254 $2,863
3-Person $128,850 $2,921 300 $3,221
4-Person $143,150 $3,233 346 $3,579
5-Person $154,600 $3,459 406 $3,865
1. Utilities include garbage, sewer, water, refrigerator, range, water heating, cooking, heating, and general utilities such as lights.
Source: Santa Cruz County Housing Authority Utility Allowance Schedule; California Department of Housing and Community Development, 2022 State Income Limits, and Kimley Horn and Associates.
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Appendix D: Fair Housing Assessment D-1
Santa Cruz Housing Element Update
Fair Housing Assessment
Appendix D
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Appendix D: Fair Housing Assessment D-2
Santa Cruz Housing Element Update
Affirmatively Furthering Fair Housing
Beginning January 1, 2019, AB 686 established new requirements for all California jurisdictions to ensure that local laws, programs, and activities affirmatively further fair housing. All Housing Elements due on or after January 1, 2021 must contain an Assessment of Fair Housing (AFH) consistent with the core elements of the analysis required by the federal Affirmatively Further Fair Housing Final Rule of July 16, 2015.
Fair housing is a condition in which individuals of similar income levels in the same housing market have like ranges of choice available to them regardless of race, color, ancestry, national origin, age, religion, sex, disability, marital status, familial status, source of income, sexual orientation, or any other arbitrary factor. Under State law, affirmatively furthering fair housing means “taking meaningful actions, in addition to combatting discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics.” These characteristics can include, but are not limited to race, religion, sex, marital status, ancestry, national origin, color, familiar status, or disability.
A.Assessment of Fair Housing
As part of California Government Code Section 65583 (10)(A)(ii), the City is required to complete an assessment of fair housing, including a summary of housing issues. This includes analysis of racially concentrated areas of poverty and affluence, disparities in access to opportunities, disproportionate housing needs, and displacement risk.
1. TCAC/HCD Opportunity Maps
The California Tax Credit Allocation Committee (TCAC) and the California Department of Housing and Community Development (HCD) developed the TCAC Opportunity Maps to provide research and evidence-based policy recommendations to further HCD’s fair housing goals. These goals include: (1) avoiding further segregation and concentration of poverty and (2) encouraging access to opportunity through land use policy and affordable housing, program design, and implementation. Overall, opportunity maps are intended to display which areas, according to research, offer low-income children and adults the best chance at economic advancement, high educational attainment, and good physical and mental health. The opportunity maps also help inform the TCAC to distribute funding more equitably to affordable housing in areas with the highest opportunity through the Low-Income Housing Tax Credit (LIHTC) Program.
Figure D-1 shows the TCAC/HCD Opportunity Scores for the City and surrounding neighborhoods.
The map uses a regional index score to determine categorization of resource levels, as detailed below:
• Highest Resource – Top 20 percent highest-scoring census tracts in the region. Residents have the best outcomes in terms of health, economic attainment, and educational attainment.
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Appendix D: Fair Housing Assessment D-3
Santa Cruz Housing Element Update
• High Resource – Top 40percent highest-scoring census tracts in the region. Residents have access to highly positive outcomes in terms of health, economic attainment, and educational attainment.
• Moderate Resource – Top 30 percent of remaining census tracts in the region. Residents have access to somewhat positive outcomes in terms of health, economic attainment, and educational attainment, or a mix of high and low outcomes in certain areas. • Moderate Resource (Rapidly Changing) – Moderate resource-scoring census tracts that are nearing High Resource status and are experiencing rapid increase in certain areas such as housing prices, median income, proximity, etc.
• Low Resource – Bottom 30 percent of remaining census tracts in the region. Residents may have a lack of access to positive environmental, economic, and educational opportunities that results in negative outcomes or perpetuated outcomes.
Figure D-1 shows the City is categorized as Moderate to High Resource. As shown, the moderate scores correspond with areas that have greater occurrences of non-residential uses; the high scores are generally located over areas of the City that are predominantly single-family neighborhoods. Table D-1 provides a breakdown of candidate housing units by income category for the TCAC scores.A greater percentage of units are located in areas reporting a moderate score, but this is due to a greater number of units being located along corridors. Over 60 percent of moderate-income units are located in high resource areas and over 80 percent of above moderate-income units are located in highresource areas. About 35 percent of lower income units are located in high resource areas. Overall, future housing developments within the City will benefit from access to moderate to high levels of resources, bringing additional opportunities for existing and future residents.
Table D-1: Candidate Housing Sites by Income Category by TCAC Score TCAC Scores
Percent of Units by Income Category
Lower Moderate Above Moderate Total
High Resource 35.3% 62.6% 16.2% 26.9%
Moderate Resource 64.7% 37.4% 83.7% 73.1%
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Appendix D: Fair Housing Assessment D-4
Santa Cruz Housing Element Update
Figure D-1: TCAC/HCD Opportunity Map
Source: California Department of Housing and Community Development – AFFH Data Viewer
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Appendix D: Fair Housing Assessment D-5
Santa Cruz Housing Element Update
2. Patterns of Integration and Segregation
To inform priorities, policies, and actions, this section contains an analysis of integration and segregation, including patterns and trends, relating to people with protected characteristics1.
Segregation is defined as the separation or isolation of a race/ethnic group, national origin group, individuals with disabilities, or other social group by enforced or voluntary residence in a restricted area, by barriers to social connection or dealings between persons or groups, by separate educational facilities, or by other discriminatory means.
It is important to note that segregation is a complex topic, difficult to generalize, and is influenced by many factors. Individual choices can be a cause of segregation, with some residents choosing to live among people of their own race or ethnic group. For instance, recent immigrants may depend on nearby relatives, friends, and ethnic institutions to help them adjust to a new country.
Alternatively, when White residents leave neighborhoods that become more diverse, those neighborhoods can become segregated. Other factors, including housing market dynamics, availability of lending to different ethnic groups, availability of affordable housing, and discrimination can also cause residential segregation.
Historic use of racially restrictive covenants and redlining by both public and private entities nationwide directly contributed to today’s racial disparities in homeownership rates and wealth attainment. This discrimination is often reflected geographically in racial segregation and land use patterns that still exist today at the local level. For instance, Santa Cruz’ areas of higher opportunity (discussed in the section above) and areas of concentrated affluence (discussed further below) are located in areas of the city that have a predominance of detached single-family housing.
Conversely, areas of the City that have a predominance of multifamily housing are more likely to have lower resource and opportunity scores.
The City’s AFFH policies and programs seek to address equity, prevent displacement, and provide for ongoing affordability to help address this historic pattern of racial disparity. Programs in Chapter 2 such as 6.2c and 6.2d will create opportunities for more types of housing development in areas of higher resources and opportunity to promote inclusion. A host of other policies and programs seek to increase affordable housing, improve mobility, preserve existing affordable housing, provide renter protections, support anti-displacement, and provide culturally sensitive outreach to historically underrepresented groups. Chapter 2 programs also note which of the AFFH goals the policy is seeking to achieve:
1. Enhancing housing mobility strategies
2. Encouraging development of new affordable housing in high-resource areas
3. Improving place-based strategies to encourage community conservation and revitalization, including preservation of existing affordable housing
4. Protecting existing residents from displacement
1 Government Code Section 65583 (c)(10), 8899.5 (a)(b)(c).
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Appendix D: Fair Housing Assessment D-6
Santa Cruz Housing Element Update
Race and Ethnicity
Neighborhood Segregation and Diversity
Figures D-2 and D-3 map concentrations of predominant racial and ethnic groups. Figure D-2 shows the City has two census tracts, tracts 12.12 and 12.08, that report “Mostly White” populations and all but three of the remaining census tracts report “Latinx-White.” There are three “3 Group Mixed” census tracts in the north-western region of the City. The UC Santa Cruz campus is located in one of the census tracts and has a very diverse student population, in comparison to the City’s demographics. According to campus admissions, in 2022 the racial and ethnic composition of undergraduates were: European American (31.3 percent), Asian (28.6 percent), Chicanx/Latinx (26.7 percent), International (5.7 percent), African American (4.7 percent), American Indian (0.6 percent), Pacific Islander (0.3 percent), and 1.9 percent not stated. The second census tract just south of UC Santa Cruz encompasses the Moore Creek Preserve and some residential neighborhoods, as well as some commercial uses to the north of Cabrillo Highway (Highway 1). The third census tract located just east of the second is entirely made up of residential neighborhoods.
Table D-2a provides a breakdown of candidate housing units by income category for the percentages of White population and Table D-2b provides a unit breakdown for the percentage of Non-White populations. Over 60 percent of lower income units are located in areas with 20 to 40 percent White population; 48 percent of all units are located within this category. Lower income units represent the highest percentage of units located in areas with 40 to 60 percent White population. Units have been spread out to the extent possible to provide for a mix of incomes and integration throughout the community. While less than two percent of units are in areas with 60 to 80 percent White population, these tend to include built-out single-family neighborhoods where future affordable ADUs are anticipated to provide housing opportunities to a greater variety of households.
Table D-2a: Candidate Housing Sites by Income Category by Percent White Population Percent White Population Units by Income Category
Lower Moderate Above Moderate Total
< 20% 10.3% 67.7% 31.7% 30.3%
20% - 40% 63.9% 27.4% 45.1% 48.0%
40% - 60% 24.7% 3.3% 21.3% 20.0%
60% - 80% 1.1% 1.5% 1.8% 1.6%
Table D-2b: Candidate Housing Sites by Income Category by Non-White Population Percent Non-White
Population
Units by Income Category
Lower Moderate Above Moderate Total
20% - 40% 1.1% 1.5% 1.8% 1.6%
40% - 60% 31.9% 65.8% 46.3% 44.8%
60% - 80% 64.4% 28.8% 46.9% 49.4%
> 80% 2.6% 4.0% 4.9% 4.2%
Figure D-3 illustrates the diversification of the City between 2010 and 2018. Over this eight-year period, the City experienced an increase in diversity in the western region and particularly around
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the Downtown area. In addition, there were increases in diversity seen within the City of Santa Cruz east of the San Lorenzo River. This is further supported by the Longitudinal Tract Data Base (LTDB), from the Diversity and Disparities Project, which found that from 1980 to 2020 the City became increasingly diverse. In 1980, the Non-Hispanic White population totaled 85.3 percent of the overall population and decreased to about 57.8 percent in 2020. During the same timeframe, the Hispanic population increased from 8.7 percent to 24 percent. Similarly, the total Asian population increased from2.4 percent in1980 to 11.3 percent in 2020, as well as the Non-Hispanic Black population which increased from 1.8 percent to 3.6 percent. All other races also increased from 1.8 percent to 3.3 percent. Between 2010 and 2018, the county and neighboring communities also experienced gains in diversity, largely within the communities to the east of the City, and in the eastern portion of the County. The regional trends on racial composition are explored in more detail in Appendix C.
Table D-3 shows that candidate housing units have been spread out across areas of the City with varying percentages of Hispanic population. The majority of units are in areas with the lowest percent of Hispanic population (65.7 percent). Lower income units are evenly distributed in areas with the lowest and highest percent of Hispanic population, and the majority of moderate- and above moderate-income units are in areas with the lowest percent of Hispanic population.
Table D-3: Candidate Housing Sites by Income Category by Hispanic Population Percent Hispanic Population Units by Income Category
Lower Moderate Above Moderate Total
20% - 40% 49.6% 75.5% 70.8% 65.7%
40% - 60% 1.1% 1.5% 1.8% 1.6%
> 80% 49.3% 23.0% 27.3% 32.7%
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Figure D-2: Neighborhood Segregation
Source: California Department of Housing and Community Development – AFFH Data Viewer
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Figure D-3: Diversity Index (2010 – 2018)
Source: California Department of Housing and Community Development – AFFH Data Viewer 2010
2018
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Figure D-4: Diversity Index in Neighboring Communities (2010 – 2018) Source: California Department of Housing and Community Development – AFFH Data Viewer 2010
2018
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Racially Concentrated Areas of Poverty (R/ECAP)
Racially and Ethnically Concentrated Areas of Poverty (R/ECAPs) are geographic areas with significant concentrations of poverty and minority populations. HUD developed a census-tract based definition of R/ECAP that relies on a racial and ethnic concentration threshold and a poverty test. The threshold states that an area with a non-White population of 50% or more would be identified as a R/ECAP; the poverty test defines areas of extreme poverty as areas where 40% or more of the population live below the federal poverty line or where the poverty rate is three times the average poverty rate for the metropolitan area (whichever is lower). Thus, an area that meets either the racial or ethnic concentration and the poverty test would be classified as a R/ECAP.
There are no R/ECAPs in the City on in the neighboring communities, as shown in Figure D-5.
Figure D-5: R/ECAPs in Neighboring Communities
Racially Concentrated Areas of Affluence (RCAA)
R/ECAPs are a long-standing, contributing factor to segregation. However, patterns of segregation in the United States show that of all racial groups, the White population is the most separated from other racial groups. Research identifies the segregation of affluence to be greater than the segregation of poverty. Racial and economic segregation can have significant effects on respective communities, including but not limited to socioeconomic disparities, disparities in access to
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educational experiences and benefits, exposure to environmental conditions and crime, and access to public goods and services.
Data used in the analysis of Racially Concentrated Areas of Affluence (RCAAs) comes from the 2015-2019 American Community Survey and is measured at the census tract level. HCD has created an RCAA metric to reflect California's relative diversity and regional conditions, and to aid local jurisdictions in their analysis pursuant to AB 686 and AB 1304. HCD's RCAA metric is first calculated using a Location Quotient (LQ) for each census tract that represents the percentage of the total White population (White Alone, Not Hispanic or Latino) per census tract compared to the average percentage of total White population for all census tracts in a given Council of Governments (COG). For example, a census tract with an LQ of 1.5 has a percentage of total white population that is 1.5 times higher than the average percentage of total white population in the given COG region. RCAAs are identified by taking census tracts with an LQ of more than 1.25 and a median income 1.5 times higher than the COG Area Median Income (AMI) (or 1.5 times the State AMI, whichever is lower) and assigning these tracts a numeric score of 1. A score of 1 indicates that a census tract meets the qualifications of an RCAA. Census tracts that did not meet this criterion are assigned a score of 0.
A nationwide analysis of RCAAs identified the following trends:
• RCAA tracts have more than twice the median household income of the average tract in their metro area.
• Poverty rates in RCAAs are significantly lower and are, on average, about 20 percent of a typical tract.
• RCAAs tracts are more income homogenous than R/ECAPs. • The average RCAA is about 57 percent affluent, whereas the average R/ECAP had a poverty rate of 48 percent.
• The typical RCAA tract has a rate of affluence 3.2 times that of a typical tract, whereas R/ECAPs on average had a poverty rate 3.2 times that of a typical tract.
RCAAs may represent a public policy issue to the extent that they have been created and maintained through exclusionary and discriminatory land use and development practices. Postwar patterns of suburbanization in many metropolitan areas were characterized by White, affluent communities erecting barriers to affordable housing and engaging in racially exclusionary practices. According to the Housing and Community Development AFFH Guidance Memo, “segregation is a continuum, with polarity between race, poverty, and affluence, which can be a direct product of the same policies and practices.” Therefore, both sides of the continuum must be examined.
Figures D-6 and D-7 show census tracts that meet the RCAA criterion in Santa Cruz and in the surrounding region. As illustrated, there are 4 census tracts in the City that classified as RCAAs under HCD’s criterion. These census tracts are located closest to the coast and in the foothills. The foothills of Santa Cruz present a challenging obstacle to all development and development of lower income housing specifically. It is more difficult and expensive to develop housing on slopped or
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hilly terrain, making affordable housing infeasible in these areas. The City has encouraged the development of affordable housing in these areas for decades, but without significant financial incentives, it is not feasible to develop. The topography of this portion of the City creates a financial constraint to the development of housing. Hills, canyons, and sloped terrain increase the cost of housing, especially low-income housing, due the additional measures required to safely develop housing in that environment. Because development of housing in these areas is costly, typically only households with higher incomes can afford to buy or rent, establishing a concentration of affluence. Each of these neighboring jurisdictions with RCAAs experience the same conditions due to the topography in these areas. Figure D-7 shows that there are other RCAAs in the region, but it is important to note that most of these are in remote, sparsely populated, and mountainous areas.
Additionally, the cost of land on the coast has historically been very high, and housing in these areas regularly sell for multi-million dollars. These areas have historically been affluent and efforts to develop affordable housing in these areas have been largely unsuccessful due to the cost of subsidizing housing in this area. Similarly to all coastal areas in the state, developers have cited the cost of development in the area as a significant constraint to development of housing at moderate and lower income levels. The City continues to encourage development in these areas through incentives and financial subsidies.
Table D-4a below displays the RCAA data for the City. The data shows these RCAAs have significantly higher percentage of white residents and median household incomes (the AMI for the City is $199,000). By cross-referencing Figure D-7 to Figure D-4 and Figure D-7a, there are RCAAs scattered across the County in the City of Santa Cruz and Scotts Valley. This aligns with the cities’ racial demographics and median income (summarized in Table D-4b below). Although not all census tracts/block groups meet the criteria to qualify as RCAAs, there is a tendency for census block groups with higher white populations to have higher median incomes throughout the county. The RCAAs also aligns with Figure D-7b TCAC/HCD Opportunity map. Areas with the highest resource throughout the County typically correlate with areas qualified as RCAAs. For instance, the same tracts that had the highest and high resources in the City of Santa Cruz and Scotts Valley were also considered RCAAs.
Additionally, Table D-4b below compares median household incomes of white residentsin the City and in the County. The City’s White population earns a median income of approximately $91,054 whereas the County’s White population earns a median income of approximately $100,259. In both jurisdictions, the White population represents over half of the total population.
Geographically, RCAAs in Santa Cruz are located in portions of the City that have predominantly detached single-family land uses. The RCAAs reflect a historic pattern of racially discriminatory decision-making that contributed to inequitable outcomes for communities of color. These are challenges that City’s AFFH policies and programs such as 6.2c and 6.2d seek to ameliorate.
While the City has committed to actions meant to address the concentration of affluence in past Housing Element cycles, many decades of earlier local policies may have contributed to the
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presence of RCAAs seen today. The City is committed to further improving access to opportunities and resources, and through the sites inventory and Policy Plan, the City plans to address RCAAs through further integration of these areas into more diverse, mixed-income communities.
Table D-4a: Median Household Income and White Population of RCAAs Census Tract Percent White Population Median Income
10.11 77.3% $122,927
12.08 81.5% $124,000
12.12 86.6% $159,643
10.01 73.0% $118,056
Source: (U.S. Census Bureau) from HCD AFFH Data Viewer, Accessed September 14, 2022.
Table D-4b: White Population and Median Household Income of RCAAs in Santa Cruz County Jurisdiction Percent White Population
(Not Hispanic or Latino) Median Income1
Santa Cruz County 56.9% $100,259
Capitola 69% $81,617
City of Santa Cruz 62.1% $91,054
Scotts Valley 75.6% $103,783
Watsonville 12.8% $61,469
Notes: 1 Median income in the past 12 months (in 2019 inflation-adjusted dollars) Source: American Community Survey, 5-Year Estimates, 2019.
Table D-4c: Median Household Income by Race and Geography Race City of Santa Cruz Santa Cruz County
Median Income1 Population Median Income 1 Population
White (Not Hispanic or Latino) $91,054 62.1% $100,259 56.9% All Households $86,618 -- $89,986 --
Notes: 1 Median income in the past 12 months (in 2019 inflation-adjusted dollars) Source: American Community Survey, 5-Year Estimates, 2019.
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Figure D-6: Racially Concentrated Areas of Affluence in Santa Cruz Source: California Department of Housing and Community Development – AFFH Data Viewer
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Figure D-7: Racially Concentrated Areas of Affluence in Neighboring Communities
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Figure D-7a: Median Income in Santa Cruz County (2014 – 2019) Source: California Department of Housing and Community Development – AFFH Data Viewer
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Figure D-7b: TCAC/HCD Opportunity Map for Santa Cruz County Source: California Department of Housing and Community Development – AFFH Data Viewer Table D-5 provides a breakdown of candidate housing units by whether they are located in an RCAA. Very few units are located in the RCAAs given their location on the hillside and along the coast in built-outsingle-family neighborhoods. In comparison to corridors and the downtown area, the RCAA north of Cabrillo Highway is not considered the most appropriate location for affordable housing given its separation from the rest of the City by the highway, lack of public transit, and distance from commercial needs and community resources. Both RCAAs are still planned to accommodate a percentage of units, and affordable units, to facilitate greater integration. The RCAAs are also anticipated to provide affordable units through the development of ADUs on existing single-family parcels. The Policy Plan includes a number of policies geared toward facilitating affordable housing development and addressing housing needs for all segments of the community.
Table D-5: Candidate Housing Sites by Income Category by RCAAs Located in an RCAA Units by Income Category
Lower Moderate Above Moderate Total
No 97.6% 96.3% 95.9% 96.4%
Yes 2.4% 3.7% 4.0% 3.6%
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Hate Crimes
Hate crimes are violent acts against people, property, or organizations because of the group to which they belong or identify. The Federal Fair Housing Act makes it illegal to threaten, harass, intimidate, or act violently toward a person who has exercised their right to free housing choice.
As shown in Table D-6, between 2014 and 2020, a total of 52 hate crimes were reported in Santa Cruz. The most common hate crime was based on Race/Ethnicity/Ancestry. Of these, the most were anti-Black or African American, with 16 total hate crimes from 2014 to 2020, followed by four anti-Asian and anti-Jewish hate crimes. The second most hate crimes were based on Sexual Orientation, most being anti-Gay hate crimes.
Table D-6: FBI Hate Crimes by Bias (2014-2020)
Year
Race/
Ethnicity/
Ancestry
Religion Sexual
Orientation Disability Gender Identity
Multiple
Bias Total
2014 4 1 2 1 0 0 8
2015 4 1 0 0 1 0 6
2016 7 3 2 0 0 0 12
2017 5 1 3 0 0 0 9
2018 4 2 2 0 0 1 9
2019 1 0 1 0 0 0 2
2020 3 0 2 0 1 0 6
Total 28 8 12 1 2 1 52
Source: Federal Bureau of Investigation, Crime Data Explorer, 2014-2020.
Income
Household income level plays a significant role in housing choice. According to the U.S. Census Bureau 2020 5-year estimates, the median household income for the City is $86,618 compared to $89,986 at the County level. The median household income in the City also varies significantly based on tenure; renter-occupied households have a median income of $54,609 while owneroccupied households have a median income of $126,202.
Figure D-8 shows the median income for Santa Cruz and the surrounding region. There is a large range of economic outcomes in the City, with the neighborhoods surrounding the Downtown region reporting the lowest median incomes. One large area in the north-eastern region reports a median income greater than $125,000; however, this area is mostly comprised of the De Laveaga Park and Golf Course, with a smaller portion of residential neighborhoods. The relatively small population of this area means that a few households with extremely high incomes could have skewed the median, making this statistic a less reliable indicator of the area’s overall affluence.
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Figure D-8: Median Income (2014 – 2019)
Source: California Department of Housing and Community Development – AFFH Data Viewer 2019
2014
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The City has experienced a relatively large increase in median income over the past decade. Census data reports a 45.5 percent increase in median income between 2010 and 2020, with the greatest growth occurring in the last five years. This is a much greater increase than for the County and the across the state as shown in Table D-7. The increase in median income across the City could reflect a similar increase in housing costs, resulting in the displacement of lower income households.
Table D-7: Median Income by Geography (2010 – 2020)
Median Income by Year City of Santa Cruz Santa Cruz County California 2020 $86,618 $89,986 $78,672
2015 $62,164 $67,256 $61,818
2010 $61,207 $65,253 $60,883
Percent Change 45.5% 37.9% 29.2%
Source: American Community Survey, 5-Year Estimates, 2010, 2015, 2020.
Over this ten year period, the City has had a lower median household income than the County but higher than the State. As Table D-8 shows, a large portion of the City’s households are higher earning; in total, over 55.5 percent of households in Santa Cruz earn more than the State medianincome of $60,883. Additionally, over 16 percent of households in Santa Cruz earn $200,000 or more annually. While just under 36 percent of City residents earn less than $50,000 annually, compared to 28.6 percent and 32.6 percent for the County and State, respectively, the City also has more households in the lower income ranges than the State or County. This may, at least in part, be attributable to the larger population of students in the City. In general, the City has fewer households in the mid-income ranges and more at the upper and lower levels than the State or County.
Table D-8: Households by Median Income by Geography
Households Income City of Santa Cruz Santa Cruz County California Less than $10,000 7.9% 4.4% 4.7%
$10,000-$14,999 4.8% 3.6% 3.9%
$15,000-$24,999 7.7% 6.3% 6.9%
$25,000-$34,999 6.1% 5.5% 7.1%
$35,000-$49,999 9.3% 8.8% 10.0%
$50,000-$74,999 8.7% 12.8% 15.3%
$75,000-$99,999 10.8% 12.9% 12.3%
$100,000-$149,999 14.8% 16.9% 17.1%
$150,000-$199,999 13.4% 12.1% 9.4%
$200,000 or More 16.5% 16.8% 13.3%
Source: American Community Survey, 5-Year Estimates, 2020.
Table D-9 shows that a higher percentage of units are located in areas with higher percentages of existing low- and moderate-income households. Higher income areas are generally built out single-family neighborhoods where the City anticipates additional affordable housing opportunities through the development of ADUs on existing parcels. While Table D-9 shows that affordable units are located in areas with higher percentages of existing lower and moderateincome households, they are located in areas with the closest proximity to transit, commercial needs, and community resources. The City has included a number of policies in the Policy Plan to protect existing households from displacement and provide opportunities for focused resources.
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Table D-9: Candidate Housing Sites by Income Category by Low and Moderate Income Households Percent Low- and ModerateIncome PopulationUnits by Income Category Lower Moderate Above Moderate Total
10% - 25% 0.2% 0.2% 0.4% 0.3%
25% - 50% 20.7% 17.5% 24.6% 22.7%
50% - 75% 44.5% 14.2% 25.0% 28.9%
> 75% 34.6% 68.2% 49.8% 48.0%
Disability
In 1988, Congress added protections against housing discrimination for persons with disabilities through the Federal Housing Administration (FHA), which protects against intentional discrimination and unjustified policies and practices with disproportionate effects. The FHA also includes the following unique provisions for persons with disabilities: (1) prohibits the denial of requests for reasonable accommodations for persons with disabilities, if necessary, to afford an individual equal opportunity to use and enjoy a dwelling; and (2) prohibits the denial of reasonable modification requests. Regarding fair housing, persons with disabilities have special housing needs due to lack of accessible and affordable housing, and the higher health costs associated with their disability. In addition, many may be on fixed incomes that further limit their housing options.
Table D-10 shows data for persons with disabilities in the City, County, and State. About 10.6 percent of the California population reported having at least one disability. In the City, about 9.7 percent of persons reported at least one disability. The County reported a higher percentage than the City at 11.5 percent. Of the 9.7 percent of Santa Cruz residents who reported a disability, the most common disabilities were cognitive difficulties and independent living, which could be tied to the City’s senior population. Ease of reasonable accommodation procedures and opportunity for accessible housing can provide increased housing security for the population with disabilities.
Table D-10: Population by Disability Type, Compared by Geography, 2020 Disability City of Santa Cruz Santa Cruz County California Total with a Disability 9.7% 11.5% 10.6%
Hearing Difficulty 2.4% 3.4% 2.9%
Vision Difficulty 1.8% 2.4% 2.0%
Cognitive Difficulty 4.6% 4.9% 4.3%
Ambulatory Difficulty 3.5% 5.0% 5.8%
Self-care Difficulty 1.8% 2.3% 2.6%
Independent Living 3.7% 5.0% 5.5%
Source: American Community Survey, 5-Year Estimates, 2020.
The data in Figure D-9 below displays data for disability status in Santa Cruz by census tract. The data shows that in the City approximately half of the census tracts report 10 to 20 percent of the population to have at least one disability and the other half reports under 10 percent. Overall, this is consistent with the surrounding region.
Although there is no significant concentration of the population having at least one disability, it is the policy and practice of the City to take all reasonable steps to ensure its services, programs, and activities are accessible to all members of the public including persons with disabilities. Community
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resources and services are located near community parks, fire and police services, grocery stores and commercial uses, and medical offices. Approximately 96.1 percent of homes and 95.7 of jobs are located within half a mile of transit. Appendix B and F provide detailed descriptions of services and resources provided for persons with disabilities.
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Figure D-9: Population with a Disability
Source: California Department of Housing and Community Development – AFFH Data Viewer
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Familial Status
Under the FHA, housing providers (e.g., landlords, property managers, real estate agents, or property owners) may not discriminate because of familial status. Familial status refers to the presence of at least one child under 18 years old, pregnant persons, or any person in the process of securing legal custody of a minor child (including adoptive or foster parents). Examples of familial status discrimination include refusing to rent to families with children, evicting families once a child joins the family (through birth, adoption, or custody), enforcing overly restrictive rules regarding children’s use of common areas, requiring families with children to live on specific floors, buildings, or areas, charging additional rent, security deposit, or fees because a household has children, advertising a preference for households without children, and lying about unit availability.
Families with children often have special housing needs due to lower per capita income, the need for affordable childcare, the need for affordable housing, or the need for larger units with three or more bedrooms. Single parent households are also protected by fair housing law. Of particular consideration are female-headed households, who may experience greater housing affordability challenges due to typically lower household incomes compared to two-parent households or male-headed single parent households. Often, gender and familial status intersect to compound the discrimination faced by single mothers.
Table D-11 displays household type for the State, County, and City. Overall, Santa Cruz has the largest percentage of non-family households (52.8 percent) which can be at least partially attributed to the large student population in the City. Santa Cruz has the lowest percentage of all other household types compared to the County and State. Approximately 35.5 percent of households in Santa Cruz have at least one person over the age of 60, which is slightly lower than the State and almost 9 percent lower than the County. Different household types have varying housing needs – senior households may benefit from reasonable accommodation procedures and being located near medical facilities, single-parent households may benefit from affordable housing options due to limited income, and all family households may benefit from larger housing units located near community areas and schools, as well as near childcare facilities.
Table D-11: Population by Familial Status by Geography
Familial Status City of Santa Cruz Santa Cruz County California Total Households 22,644 96,275 13,103,114
Married-Couple Family
Households 35.4% 48.1% 49.7%
With Children 13.1% 17.8% 17.8%
Non-Family Households 52.8% 36.8% 31.4%
Households with one or more
people 60 years+ 35.5% 44.3% 39.9%
Female Headed Households, No
Spouse Present with Children 7.4% 10.1% 12.9%
Source: American Community Survey, 5-Year Estimates, 2020.
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The data in Figure D-10 and Figure D-11 below shows living arrangements of children by census tract in Santa Cruz. Figure D-10 shows the percent of children in Santa Cruz in married couple households by census tract. The data shows that most census tracts have children living in married couple households (60 to 80 percent and above 80 percent per tract). There are several census tracts closer to the coast where between 40 and 60 percent have children living in married couple households.
Figure D-11 shows the percent of children in female headed households with no spouse/partner by census tract in Santa Cruz. The data shows that the City has a number of census tracts in the southeast region where female headed households with children and no spouse present are more than 20 percent.
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Figure D-10: Children Living in Married-Couple Households Source: California Department of Housing and Community Development – AFFH Data Viewer
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Figure D-11: Children Living in Female-Headed Households Source: California Department of Housing and Community Development – AFFH Data Viewer
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3. Access to Opportunities
Access to opportunity is a concept to approximate the link between place-based characteristics (e.g., education, employment, safety, and the environment) and critical life outcomes (e.g., health, wealth, and life expectancy). Ensuring access to opportunity means both improving the quality of life for residents of low-income communities, as well as supporting residents’ mobility and access to ‘high resource’ neighborhoods.
Mobility
Access to public transit is of paramount importance to households affected by low incomes and rising housing prices, especially because lower-income households are often transit dependent.
Public transit should strive to link lower-income persons, who are often transit-dependent, to major employment areas where job opportunities exist. Access to employment via public transportation can reduce welfare usage and increase housing mobility, which enables residents to locate housing outside of traditionally low-income neighborhoods.
Transportation opportunities are depicted by two indices: (1) the transit trips index and (2) the low transportation cost index. The transit trips index measures how often low-income families in a neighborhood use public transportation. The index ranges from 0 to 100, with higher values indicating a higher likelihood that residents in a neighborhood utilize public transit. The low transportation cost index measures cost of transportation and proximity to public transportation by neighborhood. It too varies from 0 to 100, and higher scores point to lower transportation costs in that neighborhood.
AllTransit, a source of transit data provided by CNT (Center for Neighborhood Technology), explores metrics that reveal the social and economic impact of transit, specifically looking at connectivity, access to jobs, and frequency of service. According to the data shown in Table D-12, Santa Cruz scored a 7.0 AllTransit performance score out of 10 possible points, illustrating a high combination of trips per week and number of jobs accessible that enable a moderate number of people to take transit to work. In total, 46,043 jobs are accessible within a 30-minute trip from Santa Cruz, and 6.89 percent of commuters use transit. Additionally, AllTransit identified the following transit-related statistics for Santa Cruz:
• 95.7% of jobs in Santa Cruz are located within a half-mile of transit. • 97.1% of low-income households (earning less than $50,000) live within a half-mile of transit.
• 11.18% of workers who commute by walking live within a half-mile of transit. • 10.28% of workers who commute by bicycle live within a half-mile of transit.
By comparison, Santa Cruz scored higher than the neighboring jurisdictions of Watsonville (6.1) and Scotts Valley (4.4). Overall, Santa Cruz has a higher AllTransit score than the Santa Cruz County average (7.0 in Santa Cruz and 4.8 in the County), meaning that the City has relatively better transit service than the surrounding areas.
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Table D-12: AllTransit Index
Jurisdiction
All Transit
Performance
Score
Transit Trips
Per Week
within 1/2 Mile
Jobs
Accessible in
30-min trip
Commuters
Who Use
Transit
Transit
Routes
within 1/2
Mile
Santa Cruz 7.0 2,743 46,043 6.89% 12
Santa Cruz County 4.8 1,269 33,599 2.99% 6
Source: AllTransit, Transit Scores. Accessed September 15,2022.
Figure D-12: AllTransit Performance Score (2021)
Source: AllTransit Fact Sheet, 2021.
Economic and Employment Opportunities
The TCAC/HCD Opportunity Area Maps include economic data, as shown in Figure D-13. This data represents opportunity levels based on the following factors:
• Poverty – Percent of population with an income above 200 percent of the federal poverty line.
• Employment – Percent of adults aged 20-64 who are employed in the civilian labor force or in the armed forces.
• Job Proximity – Number of jobs filled by workers with less than a Bachelor of Arts degree that fall within a given radius (determined by the typical commute distance of low-wage workers in each region) or each census tract population-weighted centroid. • Adult Education – Percent of adults with a bachelor's degree or above. • Median Home Value – Value of owner-occupied units.
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Figure D-13 shows that the majority of households in the City have fairly positive economic scores.
The areas with lower scores include:
• The UCSC campus in the north-western region of the City which includes mostly students without full-time jobs, as well as a large portion of open space (forests and meadows). • Largely undeveloped land (open space and parkland) and some residential neighborhoods on the western edge of the City, north of Mission Street. This area includes the Moore Creek Preserve. Residential uses, which represent less than half of the area, are mainly single-family homes along Western Drive and neighborhoods branching off of Bay Street. • The south-western region of the City south of Mission Street, which is predominantly comprised of industrial uses, some residential, the UCSC biology/research campuses and related marine science centers, as well as vacant and preserved natural space (Natural Bridges State Park). The residential uses in this area include generally affluent, singlefamily residences along the coast, but also several multi-family complexes as well as De Anza Mobile Home Community to the west of Natural Bridges State Park. Few residential projects are currently in progress within the industrial area, which is predominantly focused on providing employment opportunities for the City, but residential projects are developing along the residential borders of the industrial area. • Downtown Santa Cruz, which includes a large variety of commercial and retail employment opportunity but sees a higher rate of poverty. The area is currently experiencing high rates of redevelopment with new residential opportunities, including many affordable housing units.
In terms of economic and employment opportunities, the City is comparable to the surrounding region. The area to the west of the City is Wilder Ranch State Park – whose lower economic score can be explained by the area’s status as a preserved natural space. The area to the north of the City is part of the Santa Cruz Mountains; there are a number of smaller towns, but housing costs are generally high and predominantly single-family residences. While there may be fewer employment opportunities to the north of the City, households located within this area may have higher rates of higher education and higher incomes, which may be the cause of the area reporting more positive economic scores. Communities to the east of Santa Cruz are fairly similar but have less open and protected natural space and more single-family neighborhoods – resulting in generally positive economic scores.
When compared to proximity to jobs (Figure D-14), Santa Cruz residents generally live the closest to employment opportunities. Overall, Santa Cruz residents have moderate access to positive economic opportunities. Areas on the western side of the City showing moderate proximity to employment are mostly comprised of natural open space, the UCSC campus, industrial areas, and some residential neighborhoods. Additionally, the City’s expansive bus network allows accessible travel throughout the entire City and the university campus, proving access to employment. The City also provides many employment opportunities for neighboring communities.
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Figure D-13: Economic Opportunity Scores
Source: California Department of Housing and Community Development – AFFH Data Viewer
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Figure D-14: Jobs Proximity Index
Source: California Department of Housing and Community Development – AFFH Data Viewer
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Education Opportunities
The TCAC/HCD Opportunity Area Maps include education data, as illustrated in Figure D-15. This data represents opportunity levels based on the following four factors:
• Math proficiency – Percentage of fourth graders who meet or exceed math proficiency standards.
• Reading proficiency – Percentage of fourth graders who meet or exceed literacy standards. • High school graduation rates – Percentage of high school cohort that graduated on time. • Student poverty rate – Percentage of students not receiving free or reduced-price lunch.
Figure D-15 shows educational scores for the City. As shown, a large portion of the City is scored at the second highest positive educational outcomes. The highest educational category is present in the northwest of the City where the University is located as well as in a portion of the northeastern area. Overall, Santa Cruz provides moderately high opportunities for educational achievement and Santa Cruz residents show high educational achievements and successes in achieving college degrees. Overall, future housing developments within the City will benefit from access to high levels of resources, bringing additional opportunities for existing and future residents.
Comparatively, the communities to the north of the city show more positive educational outcomes. The communities to the southeast of the City, however, report significant worse educational outcomes than both the City and the County.
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Figure D-15: Education Opportunity Scores
Source: California Department of Housing and Community Development – AFFH Data Viewer
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Figure D-16: Education Opportunity Scores in Neighboring Communities Environmental Health
The California Office of Environmental Health Hazard Assessment (OEHHA) developed a screening methodology to help identify California communities disproportionately burdened by multiple sources of pollution, called the California Communities Environmental Health Screening Tool (CalEnviroScreen). In addition to environmental factors (pollutant exposure, groundwater threats, toxic sites, and hazardous materials exposure) and sensitive receptors (seniors, children, persons with asthma, and low birth weight infants), CalEnviroScreen also takes into consideration socioeconomic factors. These factors include educational attainment, linguistic isolation, poverty, and unemployment. Research has shown a heightened vulnerability to environmental pollutants for people of certain ethnicities and lower socioeconomic status.
The CalEnviroScreen 4.0 Model is made up of a suite of 20 statewide indicators of pollution burden and population characteristics associated with increased vulnerability to pollution’s health effects.
The following factors are included in the model to identify areas of health risk:
• A weighted scoring system is used to derive average pollution burden and population characteristic scores for each census tract.
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• A final CalEnviroScreen score is calculated for a given census tract relative to the other tracts by multiplying the pollution burden and population characteristics components together.
• The relative pollution burdens and vulnerabilities are measured in one census tract compared to others; the score is not a measure of health risk.
Figures D-17 and D-18 display mapped results of the CalEnviroScreen 4.0 for the City and surrounding region. Overall, the City has low levels of pollution burdens, as do the majority of neighboring communities, which are wooded, mountainous, and sparsely populated. Table 4-13 compares the two census tracts with the highest and lowest pollution burdens in the City. As detailed, Census Tract 10.10 reports a higher pollution burden, but is still considered relatively low to moderate on the scale. The housing burden, poverty, and unemployment percentile in this census tract is greater than that of Census Tract 10.11. In general, new housing opportunities throughout the City would not be heavily affected by the low levels of pollution burdens.
Table D-13: EnviroScreen 4.0 for Census Tract 10.10
Pollutant Percentile* Health Risk/Burden Percentile*
Census Tract 10.10
CalEnviro Screen 4.0 40 Pollution Burden 35
Ozone 14 Asthma 18
Particulate Matter 2.5 4 Low Birth Weight 44
Diesel Particulate
Matter 45 Cardiovascular Rate 21
Toxic Releases 14 Education 49
Drinking Water 18 Linguistic Isolation 31
Lead from Housing 54 Poverty 90
Cleanup Sites 69 Unemployment 36
Groundwater Threats 94 Housing Burden 99
Hazardous Waste 75 - -
Impaired 93 - -
Solid Waste 0 - -
Census Tract 10.11
CalEnviro Screen 4.0 15 Pollution Burden 15
Ozone 14 Asthma 18
Particulate Matter 2.5 4 Low Birth Weight 50
Diesel Particulate
Matter 36 Cardiovascular Rate 21
Toxic Releases 13 Education 27
Drinking Water 18 Linguistic Isolation 10
Lead from Housing 45 Poverty 33
Cleanup Sites 23 Unemployment N/A
Groundwater Threats 53 Housing Burden 49
Hazardous Waste 59 - -
Impaired 83 - -
Solid Waste 0 - -
*Percentile derived using a weighted scoring system to determine average pollution burden/socioeconomic scores relative to other census tracts.
Source: CalEnviroScreen 4.0. Accessed January 10, 2023.
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Figure D-17: CalEnviroScreen 4.0
Source: California Department of Housing and Community Development – AFFH Data Viewer
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Figure D-18: CalEnviroScreen 4.0 in Neighboring Communities Source: California Department of Housing and Community Development – AFFH Data Viewer
4. Disproportionate Housing Need and Displacement
The analysis of disproportionate housing needs within Santa Cruz evaluated existing housing need, need of the future housing population, and units within the community at risk of converting to market-rate.
Disproportionate housing needs refer to disparities in cost burden, overcrowding, substandard housing, and displacement risk for special needs populations in comparison to the rest of the population. Housing needs are assessed by the HUD Comprehensive Housing Affordability Strategy (CHAS), based on ACS data. Housing problems and severe housing problems include the following elements:
Housing Problem
• Incomplete kitchen facilities
• Incomplete plumbing facilities
• 1+ person per room
• Cost burden greater than 30 percent
Severe Housing Problem
• Incomplete kitchen facilities
• Incomplete plumbing facilities
• 1.5+ person per room
• Cost burden greater than 50 percent
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Overcrowding
Overcrowding is defined as between 1.01 and 1.5 persons per room in a household, and severe overcrowding is defined as more than 1.5 persons per room. Overcrowding often occurs when nonfamily members combine incomes to live in one household, such as college students and roommates. It also occurs when there are not enough size-appropriate housing options for large or multigenerational families. Table D-14 displays data for overcrowding in the State, County, and City over time. The City experiences lower rates of overcrowding in comparison to the County and the State with overcrowding for owner households at less than half the rate of the County and the State and rates for renter households at just under half that of the County and State. According to the data, overcrowding occurs more frequently in renter households than owner households. In the City of Santa Cruz, owner households that are severely overcrowded represent 0.2 percent of all households, and severely overcrowded renter households represent 0.2 percent, down from 1 percent in 2010. In the City of Santa Cruz, owner households have had little change in overall overcrowding while renter households have seen a drop in overall overcrowding since 2010.
Table D-14: Overcrowding Change Over Time by Geography
Overcrowding and Tenure City of Santa Cruz Santa Cruz County State of California 2010 2020 2010 2020 2010 2020
Owner Households
Overcrowded
(1.01 to 1.5 persons per room) 0.7% 0.8% 1.5% 1.7% 1.8% 1.7% Severely Overcrowded
(1.51 or more persons per room) 0.2% 0.2% 0.5% 0.4% 0.5% 0.6% Renter Households
Overcrowded
(1.01 to 1.5 persons per room) 1.8% 1.3% 2.3% 2.5% 3.5% 3.5% Severely Overcrowded
(1.51 or more persons per room) 1.0% 0.2% 1.6% 2.3% 2.2% 2.4% Source: American Community Survey, 5-Year Estimates, 2010 and 2020.
Cost Burden
A household paying more than 30 percent of its income for housing is considered to be overpaying and cost burdened. A household paying 50 percent or more is considered severely cost burdened.
Table D-15 shows that the City has higher cost burden rates than the County or the State. Severe cost burden rates in the City and County increased two percent since 2010 while the severe cost burden rates in the State decreased by one percent. The percent of the population experiencing no cost burden increased three percent in all three geographic locations.
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Table D-15: Cost Burden Change Over Time by Geography
Cost Burden City of Santa Cruz Santa Cruz County State of California 2010 2020 2010 2020 2010 2020
Cost Burden > 30% 60% 54% 55% 52% 52% 54%
Cost Burden > 50% 31% 33% 27% 29% 27% 26%
No Cost Burden 35% 38% 39% 42% 43% 44%
Not Computed 6% 8% 6% 6% 5% 5%
Source: American Community Survey, 5-Year Estimates, 2010 and 2020.
Figures D-19 and D-20 illustrate overpayment for homeowners and renters throughout the City and neighboring communities. Homeowners in Santa Cruz have fairly low overpayment rates, except around the downtown area. This is consistent with the surrounding region. Renters, on the other hand, have high overpayment rates across all of Santa Cruz, while overpayment rates outside City-limits are lower, although still high. This shows a high need for affordable housing options or other strategies for lowering housing costs for renters in particular.
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Figure D-19: Overpayment by Homeowners
Source: California Department of Housing and Community Development – AFFH Data Viewer
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Figure D-20: Overpayment by Renters
Source: California Department of Housing and Community Development – AFFH Data Viewer
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Substandard Housing
Incomplete plumbing or kitchen facilities can be used to measure substandard housing conditions.
This includes:
• Housing without hot and cold piped water, a flush toilet, and a bathtub or shower; and Households with kitchen facilities that lack a sink with piped water, a range or stove, or a refrigerator.
Table D-16 below shows substandard housing within Santa Cruz, Santa Cruz County, and the State of California. Compared to the County and State, the City has a higher percentage of occupied housing units without complete plumbing and kitchen facilities. Between 2010 and 2020 in the City of Santa Cruz, the total number of occupied housing units grew by 2.5 percent. A comparison of the growth of substandard housing factors between 2010 and 2020 finds that there were approximately 2 more occupied units without complete plumbing in 2020 compared to 2010, and approximately 96 more housing units without complete kitchen facilities over the same period.
The City is the only geography that experienced an increase in substandard housing factors between 2010 and 2020 – possibly due to an aging housing stock or reflecting alternative housing types that include shared kitchens and/or bathroom facilities.
Table D-16: Substandard Housing Over Time by Geography
Factors City of Santa Cruz Santa Cruz County State of California 2010 2020 2010 2020 2010 2020
Total Occupied Housing Units 22,088 22,644 95,062 96,275 12,807,387 13,103,114 Without Complete Plumbing
Facilities 0.4% 0.6% 0.4% 0.4% 0.4% 0.4%
Without Complete Kitchen
Facilities 1% 1.4% 0.9% 1% 1.2% 1.2%
Source: American Community Survey, 5-Year Estimates, 2020.
The current distribution of the age of homes in Santa Cruz also indicates that a majority of homes in the City were built prior to the 1990 Americans with Disabilities Act (ADA), which may result in a lack of accessible homes for those residents with a disability. The City’s older housing stock reflects a rapidly growing need to rehabilitate housing to meet minimum livability and quality requirements, which is a barrier to many homeowners and residents in Santa Cruz who have a lower income or a fixed income. One caveat to this is that there are a large number of historic homes in the City that would show statistically as being in this category while often being very well maintained. Age alone does not necessarily mean “in poor repair.” Due the aging housing stock in the City, many houses are in need of substantial rehabilitation. Based on windshield surveys and estimates from the code compliance division, the City estimates that approximately 100 homes are in need of rehabilitation and approximately 5 are in need of major rehabilitation or replacement. Based on windshield surveys and knowledge from the code compliance division, the Citybelieves that housing units in the Lower OceanStreet and Beach Flats areas exhibit the highest rates of poor housing conditions and higher need for rehabilitation. The City targets these areas and has added various strategies to Policy Program 5.3 to address the unique needs of the residents.
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Figure D-21 shows the distribution of population with a disability within Santa Cruz and the neighboring communities by Census Tract from 2015-2019. This map shows that City does not appear to have a significantly different portion of the population with a disability compared to the neighboring communities.
Figure D-21: Population with a Disability by Census Tract (2015-2019) Source: California Department of Housing and Community Development – AFFH Data Viewer Displacement Risk
Displacement occurs when housing costs or neighboring conditions force current residents out and rents become so high that lower-income people are excluded from moving in. UC Berkeley’s Urban Displacement Project (UDP) states that a census tract is a sensitive community if the proportion of very low-income residents was above 20% in 2018 and the census tracts meets two of the following criteria: (1) Share of renters above 40% in 2018; (2) Share of Non-White population above 50% in 2018; (3) Share of very low-income households (50% AMI or below) that are also severely rent burdened households above the county median in 2018; or (4) Nearby areas have been experiencing displacement pressures.
The potential for economic displacement risk can result from a variety of factors, including largescale development activity, neighborhood reinvestment, infrastructure investments, and changes
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in local and regional employment opportunities. Economic displacement can be an inadvertent result of public and private investment, where individuals and families may not be able to keep pace with increased property values and market rental rates.
The U.C. Berkeley Urban Displacement Project developed a neighborhood change database to map neighborhood transformations and identify areas vulnerable to gentrification and displacement. This data was developed to assist local decision-makers and stakeholders to better plan for the stability of existing communities and provide additional resources to areas in need or at risk of displacement and gentrification.
Figure D-22 shows the Seabright and Lower Ocean Street areas (contained within census tract
10.08) at risk of displacement. This map also shows that the downtown area (census tract 10.10) is experiencing one income group displacement. These two Census Tracts stand in contrast to the displacement risk pattern seen across the rest of Santa Cruz county, which is characterized by a lower displacement risk as defined by the Urban Displacement Project. The following table identifies the demographics for the two census tracts that are either experiencing displacement or are at risk of displacement.
Table D-17: Areas At Risk of Displacement (2019)
Data Census Tract 10.10 Census Tract 10.08 City-Wide
Demographics
Population 8,081 6,608 64,522
Households 3,659 3,196 54,289
Renter Occupied 78.9% 72.6% 53%
Median Income $34,660 $65,750 $77,921
Low-Income Households 68.6% 50.7% 32.6%
Speak English Less Than Very
Well 12.9% 4.9% 4.9%1
Race/Ethnicity:
Latino-White
White 53.8% 60.8% 73.9%
Black 4.1% 1.5% 2.1%
Asian 8.1% 4.3% 10.1%
LatinX 29.3% 26.6% 21%
Other 4.7% 6.8% 6.9%
Housing
Median Rent $1,607 $1,805 $1,889
Rent Gap $300.09 lower than
nearby rents
$30.99 lower than nearby
rents
-
Hot Market Yes No -
Displacement Type:
Elevated displacement for
very low-income
households (0% - 50%
AMI)
At-risk of displacement -
1. Average of City of Santa Cruz census tracts.
Source: California Department of Housing and Community Development – AFFH Data Viewer
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Census tract 10.10 (shown in the dark orange in Figure D-22) includes the largest population of individuals who speak English “less than well,” as well as a greater ratio of low-income households.
Rental rates across both census tracts are lower than for the City as a whole. Diversity across the City is fairly similar to that reported in the census tracts, aside from a higher percentage of the White and Asian populations and a lower percentage of the LatinX population. Census tract 10.10, which is identified as a “hot market,” is currently experiencing elevated displacement of very lowincome households; while the area offers lower median rents than census tract 10.08 and the City as a whole, very low-income households are being priced out of the area and may need additional assistance to avoid displacement. The City is actively assisting in furthering the development of affordable housing and providing resources for the community and residents in need in this downtown area; additional information is provided in the Housing Sites Inventory and Housing Resources Appendices.
Outside of the city, the neighboring communities have a generally low risk for displacement, except for the community of Watsonville, as seen in Figure D-23. The low displacement risk outside of the city may be attributed to the fact that much of this land is mountainous or protected and that the residents of these areas do not tend to be low-income or otherwise vulnerable to displacement.
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Figure D-22: Displacement Risk
Source: California Department of Housing and Community Development – AFFH Data Viewer
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Figure D-23: Displacement Risk in Santa Cruz County
Source: California Department of Housing and Community Development – AFFH Data Viewer In addition to displacement and gentrification data, the UC Berkeley Urban Displacement Project also analyzes the occurrence of anti-displacement policies, as defined below:
• Just Cause Eviction Ordinance. Just cause eviction statutes are laws that allow tenants to be evicted only for specific reasons. These “just causes” can include a failure to pay rent or violation of the lease terms.
• Rent Stabilization or Rent Control. Rent Control ordinances protect tenants from excessive rent increases, while allowing landlords a reasonable return on their investments. Such ordinances limit rent increase to certain percentages, but State law allows landlords to raise rents to the market rate once the unit becomes vacant. • Rent Review Board and/or Mediation. Rent review boards mediate between tenants and landlords on issues related to rent increases and encourage them to come into voluntary agreement. As mediators, the board normally does not make binding decisions. • Mobile Home Rent Control. Mobile home rent control places specific rent increase restrictions on the land rented by mobile homeowners, or the mobile homes themselves.
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• SRO (Single-Room Occupancy) Preservation. Single room occupancies, also called residential hotels, house one or two people in individual rooms. Tenants typically share bathrooms and/or kitchens. These are often considered a form of permanent residence affordable for low-income individuals. SRO Preservation Ordinances help to preserve or create new SRO units.
• Condominium Conversion Regulations. In addition to state laws regulating the conversion of multi-family rental property into condominiums, many cities have enacted condominium conversion ordinances. These impose procedural restrictions and/or substantive restrictions on the ability to convert apartment units into condominiums to protect the supply of rental housing.
• Foreclosure Assistance. Many cities and counties have local programs that assist homeowners when they are at risk of foreclosure. These programs may be funded with federal grants.
• Jobs-Housing Linkage Fee or Affordable Housing Impact/Linkage Fee. Affordable housing impact/linkage fees are charges on developers of new market-rate residential developments. They are based on the square footage or number of units in the developments and are used to develop or preserve affordable housing. • Commercial Linkage Fee/Program. Commercial linkage fees are charged to developers per square foot of new commercial development. Revenues are used to develop or preserve affordable housing.
• Housing Trust Fund. A housing trust fund is a designated source of public funds— generated through various means—that is dedicated to creating affordable housing. • Inclusionary Zoning/Housing (Below Market Rate Housing). Inclusionary housing policies require market-rate developers of rental or for-sale housing to rent or sell a certain percentage of units at affordable prices. Some policies include a provision for developers to pay “in-lieu fees” in place of building the housing; this revenue is used to develop affordable units elsewhere.
• Density Bonus Ordinance. Density bonuses allow developers of market-rate housing to build higher-density housing, in exchange for having a certain portion of their units offered at affordable prices. In this inventory, we only include a city as having this policy if they allow an additional density bonus beyond that mandated by the State. • Community Land Trusts. Community land trusts are nonprofit, community-based organizations whose mission is to provide affordable housing in perpetuity by owning land and leasing it to those who live in houses built on that land. • First Source Hiring Ordinances. First Source hiring ordinances ensure that residents are given priority for new jobs created by municipal financing and development programs
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Table D-18 identifies which of these policies the City has adopted.
Table D-18: Anti-Displacement Policies
Anti-Displacement Measures Santa Cruz Policy
Measure
Just Cause Eviction Ordinance No
Rent Stabilization or Rent Control* No
Rent Review Board and/or Mediation No
Mobile Home Rent Control Yes
SRO Preservation Yes
Condominium Conversion Regulations Yes
Foreclosure Assistance No
Jobs-Housing Linkage Fee No
Commercial Linkage Fee No
Housing Trust Fund Yes
Inclusionary Zoning Yes
Density Bonus Ordinance Yes
Community Land Trusts Yes
First Source Hiring No
*While the Urban Displacement Project reports the City does not have rent stabilization or rent control, the City of Santa Cruz does have an adopted Large Rent Increases Ordinance.
Source: Urban Displacement Project, University of California Berkeley (2018), and the City of Santa Cruz.
Affordable Units At-Risk of Converting to Market Rate
Jurisdictions are required by State Housing Element Law to analyze government-assisted housing that is eligible to convert from lower income to market rate housing over the next ten years. State law identifies housing assistance as a rental subsidy, mortgage subsidy or mortgage insurance to an assisted housing development. Government assisted housing may convert to market rate housing for several reasons, including expiring subsidies, mortgage repayments, or expiration of affordability restrictions. Affordable covenants help to ensure that certain housing units remain affordable for an extended period of time. Covenants help balance the housing market in a community and provide lasting affordable options to low and very low-income households. This section will provide:
• An inventory of assisted housing units that are at risk of converting to market-rate housing,
• An analysis of the costs of preserving and/or replacing these units, • Resources that could be used to preserve at-risk units, • Program efforts for preservation of at-risk housing units, and • Quantified objectives for the number of at-risk units to be preserved during the Housing Element planning period.
The Inclusionary Housing Program2 applies to all new developments that create two or more new and/or additional dwelling units or single-occupancy units at one location by construction or would create two or more new lots through approval of a parcel map. Affordable units created through 2 See Section C.10 of Appendix C for more details on the Inclusionary Housing Program.
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the Program must be affordable in perpetuity. However, if the project includes units affordable through the Density Bonus Program, those units would lose their affordability after approximately 55 years. For example, if a proposed development is required to include ten units affordable to low-income households through the Inclusionary Housing Program (in perpetuity), but two of those must be affordable to very low-income households through the Density Bonus Program (for 55 years), those two very low-income units would become affordable to just low-income households at the end of the 55 year period. The City of Santa Cruz is committed to working with property owners and utilizing appropriate funds, as available, to review covenants set to expire for renewal.
Table D-19 below identifies deed-restricted, assisted rental properties within Santa Cruz, of which 372 units are at-risk of converting from affordable to market-rate units between 2023 and 2033.
Table D-19: Assisted Affordable Housing and At-Risk Units in Santa Cruz Project Name Total
Units
Affordable
Units Type Funding Source Owner/ Operator Expiration
Senior Housing
Arbor Cove
84 Blackburn St. 35 35 Senior HUD Sec. 202
Neary Lagoon
Senior Housing
Inc.
9/30/32;
12/31/51
Garfield Park
721 Bay St. 94 94 Senior
LIHTC, HUD
Sec 202,
HOME
Garfield Park
Village, LP 5/31/34
San Lorenzo Park*
134 Dakota Ave. 78 77 Senior HUD Sec. 221(d)(4)
San Lorenzo Park
Apartments 3/31/32
Gault Street
211 Gault St. 37 36 Senior
Measure O/
HUD Sec.
202/811
Mercy Housing 7/12/84
El Centro*
1108 Pacific Ave. 45 44 Senior LIHTC; RDA Centro Partners/ Mercy Housing 2024 DT Villas/
Washington
612 Washington St.
5 5 Senior CALDAP Mercy Housing In Perpetuity
TOTAL
SENIOR UNITS
294 291 6 projects
Special Needs
Monarch Housing*
143 Bixby St. 4 4 Special Needs HOME Monarch Housing Project 2024 Grace Commons
1041 Cayuga St. 15 14 Special
Needs
Measure O/
HUD Sec.
202/811
Grace Commons,
Inc. 10/26/61
Nuevo Sol
111 Barson St.
14 13 Special
Needs
HUD Mod.
Rehab.; fee
waiver
South County
Housing
Corporation
2061
Jessie Street
Apartments
314 Jessie St.
14 13 Special
Needs
Measure O/
RDA
Mid-Peninsula
Coalition Belle
Haven, Inc.
In Perpetuity
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Table D-19: Assisted Affordable Housing and At-Risk Units in Santa Cruz Project Name Total
Units
Affordable
Units Type Funding Source Owner/ Operator Expiration
Front St. Residential
Care*
126 Front St.
47 47 Special
Needs FEMA 403 Front Street Inc. 2027
SCAP House
223 Darwin St. 5 5 Special
Needs FEMA 403 CFSC Inc.
2022 (Extension
currently in
progress – units
not considered at
risk)
TOTAL SPECIAL
NEEDS UNITS 99 96 6 projects
Multifamily
Riverfront
Apartments.
146 Blaine St.
71 70 Multifamily HUD Sec. 8
Santa Cruz
Riverfront
Association
2075
Broadway (HA)
1223 Broadway 5 5 Multifamily Public Housing Santa Cruz Housing Authority In Perpetuity Nearly Lagoon COOP
75-99 Chestnut St.
95 95 Multifamily LIHTC; RDA Mercy Housing In Perpetuity La Fonda (HA)
301 La Fonda 12 12 Multifamily Public Housing Santa Cruz Housing Authority In Perpetuity Mission Gardens
90 Grandview St. 50 50 Multifamily
HUD S8 State
Agency; LIHTC;
CHFA; RDA
Santa Cruz
Mission Garden
12/31/31;
2064
Sycamore Commons
125 Sycamore St.
60 59 Multifamily LIHTC; RDA Mercy Housing In Perpetuity 505 Leibrandt
Avenue* 7 7 Multifamily HOME; RDA Patsy Baran 2030
Nueva Vista
124 Leibrandt Ave. 48 47 Multifamily LIHTC; CHFA; RDA
Mercy Housing
Cal XV 2058
1010 Pacific
1010 Pacific Ave. 112 44 Multifamily LIHTC; RDA 1010 Pacific Investors 2057 La Playa
304 Riverside Ave./
216 Leibrandt Ave.
8 8 Multifamily LIHTC; RDA Mercy Housing In Perpetuity
Downtown Villas/
Washington St.
612 Washington St.
5 5 Multifamily CALDAP Mercy Housing In Perpetuity
Pacific Shores
1280 Shaffer Rd. 206 83 Multifamily LIHTC; RDA Mercy Housing 2057 Tannery
1030/1040 River St. 100 99 Multifamily
Measure O;
LIHTC; HCD
MFHB; AHTF;
RDA
Artspace Projects,
LLC In Perpetuity
Riverwalk
Apartments
110 Lindberg St.
21 20 Multifamily
LIHTC; AHTF;
Dev.
Agreement
For-the-Future
Housing
2069
TOTAL MULTIFAMILY
UNITS 800 604 14 projects
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Cost of Preserving Versus Replacing At-Risk Units
While there are a few options to preserve at-risk units including providing financial incentives to property owners to extend lower income use restrictions in exchange for City loan extensions, purchase of affordable housing units by a non-profit or public agency, or providing federal, State, or local subsidies to offset the difference between the affordable and market rate units, the City typically has been extending existing loans in exchange for an extended affordability use restriction.
The analysis below provides comparative analysis for preserving or replacing the City’s at-risk units. The analysis does not suggest the City will subsidize the at-risk units, but rather highlights the importance of maintaining the affordable units rather than replacing them through new development. As Table D-19a and D-19b show, the cost for replacing the at-risk units is vastly greater than the cost of maintaining the affordability of these 372 at-risk units. The City will continue to work with property owners to identify solutions for maintaining affordability via a variety of options; programs are included in the Policy Plan to address this.
Table D-19a: Estimated Monthly Subsidy to Preserve At-Risk Units Unit Size Monthly Rents Number of
Units At-Risk
Difference Monthly
Subsidy
Annual
Fair Market Subsidy 1 Market Rate2
Studio $2,212 $2,668 259 $456 $118,057 $1,416,683
1-Bedroom $2,502 $3,533 61 $1,031 $62,919 $755,027
2-Bedroom $3,293 $4,435 52 $1,142 $59,367 $712,400
3-Bedroom $4,077 $6,750 0 $2,673 N/A N/A
4-Bedroom $4,568 N/A 0 $3,432 N/A N/A
TOTAL $2,884,110
Source:
1. HUD FY 2023 Fair Market Rent Document System – Santa Cruz-Watsonville MSA
2. Kimley-Horn and Associates Analysis – based on multi-family unitslisted for rent across 23 properties on July 5, 2023.
Table D-19: Assisted Affordable Housing and At-Risk Units in Santa Cruz Project Name Total
Units
Affordable
Units Type Funding Source Owner/ Operator Expiration
SRO
Gularte Building*
1114 Pacific Ave. 24 4 SRO Red Cross/ CALDAP
Rodger Crissman
Successor Trust 2023
Palomar Inn*
12344 Pacific Ave. 97 97 SRO CALDAP Palomar Associates 2024 Saint George*
1520 Pacific Ave./833
Front St.
124 87 SRO CALDAP Green Valley
Corporation 2023
Heiner House*
301 Elm St. 5 5 SRO CALDAP Front Street Inc. 2024
Redwoods Commons
1606 Soquel Ave. 37 15 SRO
Measure O;
AHTF; State
AHTF Grants
Redwoods
Commons, LLC In Perpetuity
TOTAL SRO UNITS 287 208 5 projects
TOTAL ASSISTED
UNITS 1,480 1,199
*Property contains affordable units at risk of converting to market rate.
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Table D-19b: Replacement Cost of At-Risk Units
Unit Size Cost per Square
Foot1
Average Square
Foot per Unit2
Replacement
Cost per Unit
Number of
Units At-Risk
Total
Replacement
Cost
Studio $144.50 421 $60,762 259 $15,737,423
1-Bedroom $144.50 629 $90,915 61 $5,545,790
2-Bedroom $144.50 920 $132,904 52 $6,911,002
3-Bedroom $144.50 1,439 $207,936 0 N/A
4-Bedroom $144.50 N/A N/A 0 N/A
TOTAL $28,194,214
Source:
1. International Code Council – February 2022
2. Kimley-Horn and Associates Analysis – based on multi-family units listed for rent across 23 properties on July 5, 2023.
Resources to Preserve At-Risk Units
The City can also consider the cost of rehabilitating the units or replacing the units with new construction, especially if new zoning is in place that could allow for increased density. A variety of programs exist to help cities acquire, replace, or subsidize at-risk affordable housing units. The following summarizes financial resources available:
• Community Development Block Grant (CDBG). CDBG funds are awarded to entitlement jurisdictions on a formula basis for various activities. The primary objective of the CDBG program is the development of viable communities through the provision of decent housing, a suitable living environment, and economic opportunity for principally low- and moderate-income persons. Eligible activities include administration, fair housing, energy conservation and renewable energy sources, assistance for economic development, public facilities and improvements, and public services.
• HOME Investment Partnership (HOME). Entitlement jurisdictions receive funds by formula from HUD to increase the supply of decent, safe, sanitary, and affordable housing to lowerincome households. Eligible activities include housing acquisition, rehabilitation, development, homebuyer assistance, and rental assistance. • Housing Choice Voucher Program (HCV). The Housing Choice Voucher Program provides rental assistance payments to owners of private, market-rate units on behalf of very lowincome tenants, senior citizens, disabled persons, and other individuals for securing affordable housing.
• Section 202/811 Program. Non-profit and consumer cooperatives can receive no-interest capital advances from HUD under the Section 202 Program for construction of very low income rental housing with the availability of supportive services for seniors and persons with disabilities. These funds can be used in conjunction with Section 811 funds, which can be used to develop group homes, independent living facilities, and immediate care facilities. The capital advance funding can also provide project rental assistance for the properties developed using the funds. Eligible activities include acquisition, rehabilitation, new construction, and rental assistance.
• California Housing Finance Agency (CalHFA) Multifamily Programs. CalHFA’s Multifamily Programs provide permanent financing for the acquisition, rehabilitation, and preservation of new construction of rental housing that includes affordable rents for low- and
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moderate-income families and individuals. One of the programs is the Preservation Loan program, which provides acquisition/rehabilitation and permanent loan financing designed to preserve or increase the affordability status of existing multifamily housing projects.
• Low-Income Housing Tax Credit (LIHTC). This program provides tax credits to individuals and corporations that invest in low-income rental housing. Tax credits are sold to those with high tax liability and proceeds are used to create housing. Eligible activitiesinclude new construction, rehabilitation, and acquisition of properties. • California Community Reinvestment Corporation (CCRC). The California Community Reinvestment Corporation is a multi-family affordable housing lender whose mission is to increase the availability of affordable housing for low-income families, seniors, and residents with special needs by facilitating private capital flow from its investors for debt and equity to developers of affordable housing. Eligible activities include new construction, rehabilitation, and acquisition of properties.
• Affordable Housing Trust Fund (AHTF). AHTF was created to help fund the creation and preservation of affordable housing in the city of Santa Cruz for lower income households.
While it has provided assistance for an array of programs in the past, due to the dissolution of the RDA as a consistent funding stream, the AHTF has been focusing mostly on new affordable housing development in which the largest number of households can be served because of the huge demand for affordable housing in the City. • Inclusionary Housing (Measure O). Inclusionary Housing requires that developers of residential projects provide a pre-determined percentage of the total number of units as affordable to moderate and low or very low-income households. All units provided by the developer as affordable remain affordable through a permanent deed restriction against each property. The City’s current Inclusionary requirement is 20 percent of a project’s units affordable to low and moderate income households, with rental projects of less than five units exempt and ownership projects of two to four units having an option for meeting lesser requirements, both as a means to promote small developments.
The following organizations have the experience and capacity to potentially assist in preserving units at risk of converting to market-rate as well as developing additional affordable units:
• Eden Housing
• Mercy Housing
• Habitat for Humanity
• MidPen Housing
• Housing Authority of the County of
Santa Cruz
• For the Future Housing
State law requires that jurisdictions establish the maximum number of units that can be preserved over the planning period. The City’s goal is to preserve as many affordable units as possible depending on financing available and owner willingness.
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Extremely Low Income (ELI) Households
Extremely low-income (ELI) households are those that earn 30 percent or less of the median family income (MFI) for Santa Cruz County. CHAS data indicates there are approximately 5,640 ELI households living in the City. ELI households represent approximately 25 percent of all Santa Cruz households. While the estimate is significantly skewed by the student population which typically have lower incomes due to part time or unemployed status, the need for affordable housing is large in the City. Of these households, 53 percent are renters and 47 percent are homeowners.
ELI renter households represent about 36 percent of renter households, and ELI owner households represent about 12 percent of owner households.
Housing ELI households is generally challenging in Santa Cruz. Figure C-5 illustrates the percentage of people within each racial and ethnic group living below the poverty level. Asians experienced the most poverty at 37.3 percent, followed by Hispanic or Latino origin at 30.9 percent; while only making up 10.2 percent and 20.7 percent of the total Santa Cruz population, respectively.
A majority of ELI households face a variety of housing problems. As shown in Table C-15, extremely low-income households experience the highest rate of housing problems as identified by CHAS, regardless of tenure. Additionally, extremely low-income households experience the highest rates of overpayment and experience cost burdens at a highest rate regardless of tenure. Santa Cruz experiences higher housing costs than other cities in the region, creating a severe cost burden for ELI households based on their average income in the county. ELI households may seek affordable housing options to relieve cost burdens, and these households are typically more susceptible to living in poor housing conditions, or in many cases, homeless or living in personal vehicles. Groups of individuals or families may occupy smaller housing units to alleviate housing costs, creating an issue of severe overcrowding in many cases. According to ACS data, renters in the City experience higher incidences of overcrowding and the City can assume that of these overcrowded households, a large percentage are ELI households. Additionally, some extremely low-income households could face other issues such as having special needs or disabilities that could exacerbate housing problems.
Key Challenges and Resources to Address Housing Needs of ELI Households Extremely Low-Income Households in Santa Cruz have exhibited the following unique challenges to housing:
• Need for increased affordable housing options
• Markedly higher incidents of cost burden for housing
• Higher incidents of overcrowding and substandard housing • Need for smaller housing unit options such as SRO’s
• Rental assistance
• Higher incidents of homelessness
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Table C-12 provides a list of households by income category and tenure in the City. Generally, there are disparities between the incomes of homeowners and renters, a pattern observed on both the regional and local level. In Santa Cruz, 32.5 percent of owner households are considered LMI (earns less than 80 percent of HAMFI) compared to almost 65 percent of renter households.
The reverse is true for those of high-income households (more than 100 percent of HAMFI), where almost 68 percent of owner households are high income and only about 35 percent of renter households are high income.
Although Santa Cruz experiences higher median incomes, it is still important to provide improved access to resources and opportunities for all households. The City has committed to the following programs in order to ensure fair housing for families experiencing financial hardships and to address unique needs of extremely-low income households in the City:
• Policy 1.4 – Facilitate alternative housing types that respond to Santa Cruz’s diverse population and housing needs, especially those for single-person households, low-income households, students, and special housing needs groups. • Policy 1.5 – Facilitate the development of Accessory Dwelling Units • Policy 2.1 – Enable mixed-income projects that encourage greater diversity within housing projects
• Policy 2.2 – Develop creative ways to facilitate more affordable housing development in the City.
• Policy 2.3 – Support the Density Bonus as a valuable tool for incentivizing the development of housing and the inclusion of affordable units in housing projects • Policy 2.4 – Support Public-Private Partnerships that facilitate the development of affordable housing.
• Policy 3.1 - Create housing for low-income families with children and persons with disabilities
• Policy 3.2 - Provide high quality care alternatives such as childcare centers and family daycare for children and youth that are available, affordable, and accessible to those persons who live or work in the City.
• Policy 3.3 - Implement the City’s Homelessness Response Action Plan and maintain the relationship with the Continuum of Care to support housing solutions for the homeless as well as a wide variety of supportive services.
• Policy 3.4 - Facilitate permanent supportive housing units, transitional housing options, and extremely low income units for residents through funding and partnerships. • Policy 3.6 – Provide community programming funding to support the special needs and homeless populations in finding housing and supportive services. • Policy 3.7 - Support agriculture and employee housing where applicable. • Policy 4.1 – Support the provision of rental assistance in the event of a household having insufficient funds for a security deposit or rent payment.
In addition, the City has included many programs to promote the development of affordable housing units throughout the City which may be available to ELI households.
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Similar to other special needs groups, ELI household needs are focused on affordability of housing and access to services that support lower monthly overall costs. To address these challenges, the City must consider a variety of solutions to address the above issues, such as affordable housing options for farmworkers and leveraging grants and funding opportunities.
Effectiveness of Past Policies and Programs
Housing and support services for ELI households continues to be a critical need in the City. As the private sector offers limited housing opportunities for affordable, ELI housing, the City and nonprofit partners, typically capitalizing on various state and federal funding assistance, provide the vast majority of new ELI housing in the City. The City has employed a wide range of strategies to make great strides in producing ELI housing, on both City-owned properties with City-led developments and in partnership with non-profit developers on privately-held lands. The “Financial Resources” section in Appendix F speaks to many of the City’s funding strategies that often support ELI households.
Resources for ELI Households
The City also provides a variety of other supports that directly benefit ELI households. The City funds programs that provide tenants with eviction prevention services and legal advice. The City‘s Rental Inspection Service ensures that all tenants, including ELI tenants, regardless of the amount of rent they pay, have safe and healthy housing. The City funds rental assistance programs that provide first and last months’ rent and/or emergency funding for qualifying low-income households, administered through Community Action Board. The City encourages landlords to accept Section 8 Housing Choice Voucher tenants, including ELI tenants, by providing funding to the Housing Authority for mediation services and expanded damage deposits. Chapter 2 of the Housing Element recognizes the great work that the City is doing to protect ELI tenants and expand housing choices for ELI tenants by establishing policies and programs for expanding, promoting, and/or maintaining many of these ELI household supports.
The City maintains a list of local resources and services meant to serve special needs groups. This list is available at City Hall and has been distributed by the City and local service providers.
Resources include, but are not limited to:
• Shelter and housing
• Financial assistance
• Housing assistance
• Legal assistance
• Medical and mental health services
• Clothing drives
• Food banks
• Food distribution
• Counseling
• Employment services
• Family and children service
Homelessness
People experiencing homelessness are those who do not have a fixed, regular, and adequate overnight residence, or whose overnight residence is a shelter, street, vehicle, or enclosure or
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structure unfit for habitation. Factors contributing to increases of homelessness may include the following:
• Lack available resources to support
stable housing access
• Spikes in rent increase and lack of
tenant protections
• Housing discrimination
• Evictions
• Lack of housing affordable to lowand moderate-income persons • Increases in the number of persons
whose incomes fall below the poverty
level
• Reductions in public subsidies to the
poor
• The deinstitutionalization of the
mentally ill
The City of Santa Cruz is an active participant in the county-wide Continuum of Care, the Housing for HealthPartnership, intended to support persons experiencing homelessness. The City provides direct assistance to homeless individuals or households through a variety of means and helps to support a network of services. See Appendix F for a sample of the many services the City provides and supports. The Housing for HealthPartnership works to distribute funds and many local service providers offer temporary shelter, pathways to housing, permanent supportive housing, drug rehabilitation, and other recuperative care. The City adopted a Three-Year Homelessness Response Action Plan in 2022, which focuses on the values of collaboration, health, safety, economic vitality, practicality, resource stewardship, and transparency. Key action areas within the plan include:
• Building partnerships and capacity
• Permanent affordable and
supportive housing
• Basic support services
• Care and stewardship
• Community safety
According to the Santa Cruz County Point-in-Time (PIT) report, there were an estimated 1,439 unhoused persons in Santa Cruz in 2022. Overall, this accounts for approximately 62.6 percent of the County’s homeless population. The PIT Count accounted for people living in cars, on streets, in parks, and in properties not meant for human habitation (people who are unsheltered). The Count also included people living in emergency shelters and transitional housing (people who are unhoused). Approximately 73.5 percent of all unhoused persons in the City are unsheltered. The unhoused population has increased 20 percent since the last Point in Time count in 2019. Figure D-24 shows the top five responses for the primary cause of homelessness over the past four PIT Counts. The most common response when survey respondents were asked about the primary cause of their homelessness was eviction, with 37 percent of respondents choosing that response, a notable increase from 18 percent in 2019. The second most common cause of homelessness amongst survey respondents was the loss of a job, with 33 percent indicating it was the primary cause of their homelessness. Five percent of homeless survey respondents was caused by the COVID-19 pandemic.
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Figure D-24: Primary Cause of Homelessness (Top Five Responses) Source: 2022 County of Santa Cruz Homeless PIT Count & Survey When contextualized with the total number of people residing in Santa Cruz, the 1,439 homeless individuals represent approximately 2.2 percent of the population. In neighboring jurisdictions, the point in time count of homeless persons in 2022 was:
• Capitola: 35 persons (0.3 percent of the total population) • Scotts Valley: 48 persons (0.4 percent of the total population) • Watsonville: 366 persons (0.7 percent of the total population) • Unincorporated: 396 persons (0.3 percent of the total population) Of the 2,299 unhoused persons in the County, persons who identified as White made up 74 percent of the unhoused population – up from 67 percent in 2019. The share of unhoused persons who identified as Black or African American rose to 12 percent in 2022, far greater than the group’s share of one percent of the total population in the County, indicating that Black or African American persons may be experiencing a disproportionate amount of homelessness. Three percent identified as American Indian or Alaska Native, less than one percent identified as Native Hawaiian, nine percent identified as multi-race, and one percent identified as Asian. Of the 74 percent who identified as white, 39 percent identified as Hispanic or Latino, a slight increase from 36 percent in 2019.
Of the County’s homeless population, 72 percent identified as male, 27 percent identified as female, and the rest identified as transgender or other. Approximately 39 percent of all unhoused persons across the county indicated a history of foster care. Figure D-25 shows the age of people who experience homelessness. More than half of the unhoused persons in the County (58 percent) were between 25 and 54 years of age. Unhoused persons aged 0-17 years old and 18-24 years old each made up 17 percent of the total unhoused population in the County. Approximately 59 percent of all unhoused persons were experiencing chronic homelessness, meaning they have been unhoused for one or more years. Of the unhoused population, many had health conditions
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which respondents indicated contributed to experiencing homelessness. Approximately 67 percent experienced drug or alcohol abuse, 57 percent experienced a physical disability, 49 percent experienced a chronic health condition, 39 percent experienced psychiatric or emotional conditions, and 35 percent experienced post-traumatic stress disorder.
Figure D-25: Age at First Experience of Homelessness
Source: 2022 County of Santa Cruz Homeless PIT Count & Survey The City saw a significant drop in the homeless population from 2022 to 2023, dropping approximately 29 percent from 1,439 individuals in 2022 to 1,028 individuals in 2023. During the height of COVID-19, the City utilized pandemic-specific funds and grants to temporarily house homeless individuals, with the ultimate goal of transitioning them into longer-term or permanent housing. It is believed that the transition process has contributed to the drop in the homeless population.
Key Challenges and Resources to Address Homeless Housing Needs Homeless individualsin Santa Cruz and the region have exhibited the following unique challenges to housing:
• Lack of affordable housing options
• Higher incidents of cost burden for housing
• Higher incidents of overcrowding and substandard housing • Lack of rental and for sale housing options
• Need for rental assistance
Similar to other special needs groups, needs are focused on affordability of housing and access to services that support lower monthly overall costs. To address these challenges, the City must consider a variety of solutions to address the above issues, such as affordable housing options for farmworkers and leveraging grants and funding opportunities.
Patterns and Trends for Disproportionate Housing Needs Based On Homeless Status Due to the transient nature of homelessness, homeless populations may move and may not always be present in the same general areas, but based on local data and knowledge, the City assesses
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that unsheltered homeless populations typically congregate around the Boardwalk area, along the creek areas, and around under and overpasses throughout the City. Additionally, homeless populations typically congregate around shelters, City and County buildings providing homeless resources, areas close to local and regional transportation, and areas providing social services.
Sheltered homeless populations are typically found parked in and around industrial areas and large commercial parking lots around the City.
In the 2023 PIT Count, rental assistance was the most common (77 percent) response when survey respondents were asked what kind of support they needed to obtain permanent housing.
Approximately 60 percentof respondents reported that an increase in the availability of affordable housing would support their ability to obtain permanent housing, while 42 percent of respondents reported that they needed money for moving costs to obtain permanent housing. Most respondents received some form of government assistance but noted that it was not enough to allow them to find permanent housing.
In addition to government assistance, there are numerous community-based services and programs that serve persons experiencing homelessness in the City and region. These services range from day shelters and meal programs to job training and health care. Usage of free meals was the most common form of assistance received by survey respondents. Thirty percent of survey respondents reported using emergency shelters, followed by bus passes (24 percent), shelter day services (23 percent) and health services (19 percent).
Future housing in Santa Cruz may need to consider the needs of farm workers employed in the City and the greater region.
Programs for Homeless Individuals
The City understands the transient nature of homelessness and aims to address the needs of this vulnerable population. To address homeless needs, the City has included the following Policy Programs:
• Policy 3.1 - Create housing for low-income families with children and persons with disabilities
• Policy 3.2 - Provide high quality care alternatives such as childcare centers and family daycare for children and youth that are available, affordable, and accessible to those persons who live or work in the City.
• Policy 3.3 - Implement the City’s Homelessness Response Action Plan and maintain the relationship with the Continuum of Care to support housing solutions for the homeless as well as a wide variety of supportive services.
• Policy 3.4 - Facilitate permanent supportive housing units, transitional housing options, and extremely low income units for residents through funding and partnerships. • Policy 3.6 – Provide community programming funding to support the special needs and homeless populations in finding housing and supportive services.
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In addition, the City has included many programs to promote the development of affordable housing units throughout the City which may be available to homeless individuals.
Farmworkers
The U.S. Department of Agriculture, National Agriculture Statistics provides data on hired farmworkers across the United States at both a state and county level. Within Santa Cruz County, there were a total of 16,114 hired farmworkers in 2017. A total of 11,254 are considered permanent and 4,860 were considered seasonal (working less than 150 days annually). The County also reported a total of 2,254 migrant farmworkers.
According to the American Community Survey, Santa Cruz County has 4,772 and the City has 257 people employed in Farming, Fishing, and Forestry. This occupation earns one of the lowest salaries in comparison to other occupations, with an estimated median income of $30,567. This is considered an extremely low-income for the City. The farmworker’s tenuous and/or seasonal employment status may further exacerbate their limited income. These employees and their households may reside in severely overcrowded dwellings, in packing buildings, or in storage sheds.
Patterns and Trends for Disproportionate Housing Needs Based On Farmworker Status Due to the cyclical and seasonal nature of agriculture, it is difficult to accurately estimate the housing needs of farmworkers in the region but based on local data and knowledge, the City assesses that virtually all farmworker households are in need of housing affordable to extremely low incomes. Santa Cruz experiences higher housing costs than other cities in the region, creating a severe cost burden for farmworker households based on their average income in the county.
Farmworker households may seek affordable housing options to relieve cost burdens, and these households are typically more susceptible to living in poor housing conditions, or in many cases, homeless or living in personal vehicles. Groups of individuals or families may occupy smaller housing units to alleviate housing costs, creating an issue of severe overcrowding in many cases.
Future housing in Santa Cruz may need to consider the needs of farm workers employed in the City and the greater region.
Key Challenges and Resources to Address Farmworker Housing Needs Farmworker households in Santa Cruz and the region have exhibited the following unique challenges to housing:
• Lack of affordable housing options
• Higher incidents of cost burden for housing
• Higher incidents of overcrowding and substandard housing • Lack of rental and for sale housing options
• Need for rental assistance
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Similar to other special needs groups, Farmworkers needs are focused on affordability of housing and access to services that support lower monthly overall costs. To address these challenges, the City must consider a variety of solutions to address the above issues, such as affordable housing options for farmworkers and leveraging grants and funding opportunities.
Effectiveness of Past Policies and Programs
Historically, the City has not provided formal services or resources for farmworker households, but instead, has partnered with County agencies to address the unique needs of farmworker households. The City has participated in coordinated efforts to address the needs of special needs groups. While the City did not incorporate policy programs specific to farmworker households in the 5th Cycle, many of the programs meant to address special needs groups apply to farmworker households. The City was able to facilitate the development of affordable housing that may have served farmworker households. Santa Cruz is committed to continuing to address the needs of all special needs groups in the City and the greater region.
Programs for Farmworkers
While farmworkers do not make up a large group of residents within the City, the City understands the transient nature of agriculture and aims to address the needs of this vulnerable population.
To address farmworker needs, the City has included the following Policy Programs:
• Policy 3.1 - Create housing for low-income families with children and persons with disabilities
• Policy 3.2 - Provide high quality care alternatives such as childcare centers and family daycare for children and youth that are available, affordable, and accessible to those persons who live or work in the City.
• Policy 3.3 - Implement the City’s Homelessness Response Action Plan and maintain the relationship with the Continuum of Care to support housing solutions for the homeless as well as a wide variety of supportive services.
• Policy 3.4 - Facilitate permanent supportive housing units, transitional housing options, and extremely low income units for residents through funding and partnerships. • Policy 3.6 – Provide community programming funding to support the special needs and homeless populations in finding housing and supportive services. • Policy 3.7 - Support agriculture and employee housing where applicable.
In addition, the City has included many programs to promote the development of affordable housing units throughout the City which may be available to Farmworkers.
B. Fair Housing Enforcement and Outreach Capacity
1. Fair Housing Enforcement and Outreach
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Fair housing enforcement and outreach capacity refers to the ability of a locality and fair housing entities to disseminate information related to fair housing laws and rights and provide outreach and education to community members. Enforcement and outreach capacity also includes the ability to address compliance with fair housing laws, such as investigating complaints, obtaining remedies, and engaging in fair housing testing.
California’s Department of Fair Employment and Housing (DFEH) has statutory mandates to protect the people of California from discrimination pursuant to the California Fair Employment and Housing Act (FEHA), Ralph Civil Rights Act, and Unruh Civil Rights Act (with regards to housing).
The FEHA prohibits discrimination and harassment on the basis of race, color, religion, sex (including pregnancy, childbirth, or related medical conditions), gender, gender identity, gender expression, sexual orientation, marital status, military or veteran status, national origin, ancestry, familial status, source of income, disability, and genetic information, or because another person perceives the tenant or applicant to have one or more of these characteristics.
The Unruh Civil Rights Act (Civ. Code, §51) prohibits business establishments in California from discriminating in the provision of services, accommodations, advantages, facilities, and privileges to clients, patrons, and customers because of their sex, race, color, religion, ancestry, national origin, disability, medical condition, genetic information, marital status, sexual orientation, citizenship, primary language, or immigration status. The Ralph Civil Rights Act (Civ. Code, § 51.7) guarantees the right of all persons within California to be free from any violence, or intimidation by threat of violence, committed against their persons or property because of political affiliation, or on account of sex, race, color, religion, ancestry, national origin, disability, medical condition, genetic information, marital status, sexual orientation, citizenship, primary language, immigration status, or position in a labor dispute, or because another person perceives them to have one or more of these characteristics.
Fair Housing Enforcement
Currently, the City maintains a formal contract with the California Rural Legal Assistance (CRLA) to help low-income residents with fair housing complaints. As the primary fair housing assistance provider in the Santa Cruz area, CRLA provides a variety of consultation services through its hotline service and consultations, distributes legal information to landlords and tenants, and participates in annual housing fairs, in addition to filing and litigating fair housing complaints where violations of federal or state housing discrimination laws impact Santa Cruz residents. These include cases involving race, national origin, familial status, religion, disability, age, sexual orientation, gender, and gender identity. The procedure for handling a case typically begins with an initial intake call.
The receptionist checks the conflict-of-interest files to ensure that no such conflict exists. The screened call is then passed to a housing worker who has received extensive training in proper interviewing techniques and legal knowledge. The housing worker will give the appropriate advice to the client. Typical questions received on the hotline involve security deposit refunds, entry into the home, when rent can be withheld, eviction notices, rent control, and fees for late rent payments. The vast majority of call-ins are handled by phone consultation only.
In situations where problems cannot be adequately addressed through telephone advice, clients meet with an attorney to explore the issue and develop an appropriate plan to address the
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problem. Further action is taken as needed, including letters, telephone calls, and preparation of court documents and fair housing complaints directed to HUD or the State of California Department of Fair Employment and Housing, if needed. No fair housing complaints were filed in the last Housing Element planning period.
Where required, CRLA will conduct fair housing surveys or tests to determine whether violations exist. Many landlord and tenant disputes are successfully resolved without formal litigation. In such disputes, the case handler assigned will contact the opposing party and attempt to resolve the issue with a mutually agreeable and negotiated resolution. If negotiations are not possible, litigation may be the only alternative. CRLA also participates in housing fairs in jurisdictions throughout the county. These forums provide the opportunity to distribute landlord-tenant information on rights and responsibilities and educating the general public about fair housing.
Programs organized by CRLA relating to fair housing include the following:
• Fair Housing Services
• First-Time Home Buyer Counseling
• First-Time Homebuyer Education
• Home-Seeking Counseling
• Shared Housing Counseling and
Placement
• Rent Review and Relocation
Programs
• Rental Assistance Program
Tenant/Landlord Services
In PY 2022-23, Santa Cruz allocated $25,000 in CDBG funds to CRLA to provide legal assistance to low-income individuals on a range of housing matters to help individuals and families make informed decisions and to take action to obtain, maintain, or improve their housing situation.
The Consumer Affairs and Environmental Protection Division of the District Attorney’s Office provides a variety of fair housing services. These services include:
• Telephone counseling and referrals to other agencies that deal with consumer issues; • Landlord- tenant information, assistance, and mediation efforts; and • Information and referral service to other agencies.
Approximately 100 to 200 calls are received each month from tenants, landlords, and roommates.
The most common complaints are about security deposits, evictions, and/or housing conditions.
The Office primarily provides legal information and self-help advice to inquiring clients and makes referrals to other legal and nonprofit agencies. Because of a persistent lack of funding, the Office does not have a database that can provide more detailed information on the type of calls received.
One volunteer is responsible for handling the majority of landlord-tenant questions and referrals; no paid staff members are involved in this effort.
Overall, the fair housing network appears to be quite fragmented; different groups are organized around special need groups. Only the District Attorney’s Office focuses on fair housing issues affecting the general population. During the analysis of this Housing Element, several organizations highlighted insufficient funding as the main source of their relative shortcomings, including the absence of maintained data, reduction or elimination of previously provided services, and lack of coordination between organizations.
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The following is a list of other fair housing legal assistance available to Santa Cruz residents:
• Tri-County Apartment Association
• Senior Citizens Legal Services (55 years of age and above) • Santa Cruz Lawyer's Referral Service
• Small Claims Advisory by Monterey College of Law (free service) • CRLA
• Tenant Sanctuary
2. Fair Housing and Civil Rights Findings, Lawsuits, Enforcement, Settlements or Judgments
The City’s Planning and Community Development Department works closely with residents, property owners, outside agencies, and other City departments to resolve health, safety, and public nuisance conditions that adversely affect the quality of life in Santa Cruz. Enforcement is provided proactively and on a complaint basis. Most code violations are resolved on the initial contact made by Staff. Staff generally works under the model of voluntary compliance within a reasonable amount of time allotted. In rare instances, penalties are assessed to those who fail to comply with the Santa Cruz Municipal Code. The Planning Division is primarily responsible for enforcing the provisions of the Zoning Ordinance and the Building and Safety Division is primarily responsible for enforcing the provisions of the California Building Codes, the Santa Cruz Municipal Code, and the Uniform Housing Code.
3. Fair Housing Laws
The City is in compliance with existing fair housing laws, and often seeks to go beyond State requirements to address fair housing and access to affordable housing. There have been no findings against the City of Santa Cruz from the U.S. Department of Housing and Urban Development (HUD) Office of Fair Housing and Equal Opportunity (FHEO) or from the State Department of Fair Employment and Housing (DFEH).
The following lists State and local fair housing laws and specifies how the City complies:
State
• California Fair Employment and Housing Act (FEHA): The City continues to implement and update programs that promote fair and equal access to housing. The City also continues to review standards and requirements that may constrain equal access to housing and the development of affordable housing.
• Government Code Section 65008: The City continues to implement programs that encourage affordable housing development. The City implements an Inclusionary Housing Ordinance that requires the development of affordable units as part of multi-family residential developments.
• Government Code Section 8899.50: The City implements programs and actions in compliance with State law that affirmatively further fair housing. As detailed in the Housing
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Plan, the City administers programs to promote equal housing access and affordable resources.
• Government Code Section 11135: The City promotes State-funded programs, such as the First-Time Homebuyer Loan Program, on the City’s website and at the public counter. The City continues to implement and encourages programs that promote full and equal access to all programs and activities.
• Density Bonus Law:The City has an adopted Density Bonus Ordinance consistent with State Density Bonus Law. The City provides incentives to developers to produce affordable housing to very low-income households, low-income households, moderate-income households, senior citizens, transitional foster youth, disabled veterans, and persons experiencing homelessness, as well as for the development of childcare facilities. The Housing Plan includes a program ensuring the City maintains compliance with Density Bonus Law updates.
• No-Net-Loss Law: The Candidate Sites Analysis details how the City maintains adequate sites to meet its RHNA. The City is on track to meet its 5th cycle RHNA across all incomelevels. • Excessive Subdivision Standards: The City continues to update its Zoning Ordinance, waive certain development fees, and offer incentive packages to facilitate housing development. • Housing Element Law: The City identifies and includes an analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs.
Local
• Local Ordinances: The City has multiple local ordinances that establish procedures for rezoning, development permit processing, affordable housing fees, and other programs that encourage fair housing practices. These are provided in Appendix E. • Policy Plan Programs: The Policy Plan details the City’s goals, policies, programs, and objectives. The City addresses the need to provide additional housing opportunities, remove constraints to affordable housing, improve the existing housing stock, and provide equal opportunities for current and future residents of Santa Cruz C.Relevant Factors
1. Background
The City of Santa Cruz is a thriving community of approximately 65,011 residents. Santa Cruz was incorporated in 1866 as a town and received its first charter as a City in 1876. The creation of the Santa Cruz Beach Boardwalk in 1907 solidified the City's status as a seaside resort community, while the establishment of the University of California, Santa Cruz in 1965 led to Santa Cruz's emergence as a college town.
Santa Cruz is located on the north shore of Monterey Bay and is encircled almost entirely by the Santa Cruz Mountains and public open space areas. The City’s vigorous and lively downtown lies directly south of the junction of north-south State Highway 17 and State Highway 1. The City of
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Santa Cruz is known for its vibrant tourism base, cultural amenities, diverse housing opportunities, and high quality of life. These amenities distinguish Santa Cruz as one of the most livable and sought-after communities in the Monterey Bay Area. The City is home to the University of California at Santa Cruz (UCSC), several private schools, and a breadth of cultural institutions. The City is also known for its social activism, both in the community and nationwide.
With these amenities comes a high demand for housing, as people from many backgrounds and income ranges seek to share the benefits the City offers. As housing prices have increased, housing opportunities for low- and moderate-income persons have diminished. This places a disproportionate burden on seniors, disabled persons, families with children, homeless persons, and others who more vulnerable to unequal treatment in the housing market.
2. University of California – Santa Cruz
A vital part of the community is the University of California, Santa Cruz (UCSC) which opened in 1965 with one college. Today, the 2,000-acre campus has 10 colleges and an enrollment of more than 18,980 students. The City’s post-World War II growth and development was most notably affected by the establishment of UCSC. Development of the University led to rapid population growth, with new housing rapidly filling in the gaps between existing neighborhoods and the new campus. The City’s population increased 29 percent during the 1970s. Population growth has slowed in recent decades due to the scarcity of vacant land, the presence of regional growth control measures, and demographic change.
3. Investments
Downtown
The City is primarily investing in Downtown Santa Cruz. According to the City’s Capital Investment Program FY 2020-24, some of these projects include several beautification and streetscape improvements, civic building renovations, fire station and infrastructure improvements, and downtown mixed-use projects. Figure D-26 illustrates the location of investment projects throughout the City.
Lower West Side
Investments on the Lower West Side are primarily centralized around the Santa Cruz Beach Boardwalk and the Santa Cruz Wharf. These projects include streetscape improvements, Wharf Master Plan implementation, and a scenic sanctuary trail.
Upper West Side
Investments on the Upper West Side primarily include infrastructure improvements. Some of these projects include a bridge replacement, solar expansion, and a stormwater pollution prevention plan.
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Figure D-26: 2020-2024 CIP Projects
Source: City of Santa Cruz Capital Investment Projects FY 2020-2024 D.Contributing Factors
Locally-derived knowledge and contributing factors were developed in response to community participation in outreach events and through analysis conducted in Affirmatively Furthering Fair Housing development and analysis of sites inventory and feedback and comment on the draft Housing Element’s data, analysis, and policy program. The contributing factors listed below were identified as creating, perpetuating, and/or increasing the severity of fair housing issues in Santa Cruz:
• Displacement Risk Due to Economic Pressures (High Priority) Santa Cruz residents generally earn high annual incomes. As Figure D-8 shows, approximately one third (1/3) of Santa Cruz households earn over $150,000. Additionally, Table C-33 states the median home value in Santa Cruz is $895,800, which is the highest value in the region and greater than Santa Cruz County’s median home value. Given the current housing market trends and the high propensity for greater incomes, lower income households may feel economic pressures to relocate out of the City. • Location and Type of Affordable Housing (High Priority) As noted above, the Santa Cruz community is generally affluent and has high housing costs, in addition to being a very high opportunity City. The retail trade and arts, entertainment, recreation, accommodation, and food service sectors represent just under 25 percent of
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the City’s total workforce but earn incomes that are much lower than the City’s median income. Persons working in these sectors, as well as other sectors earning below the City’s median income, may not have the opportunity to live in the City in which they work and must commute longer distances.
• Housing Conditions and Senior Housing (Moderate Priority) Affordability, design, and discrimination limit the supply of housing for persons with disabilities. Amendments to the Fair Housing Act, as well as State law, require ground-floor units of new multi-family construction with more than four units to be accessible to persons with disabilities. Units built prior to 1989 are not required to be accessible to persons with disabilities. As shown in Figure C-7, more than 80 percent of the City’s housing stock was built prior to 1989. Aging housing units may have severe housing problems and require significant rehabilitation which may be costly for seniors and low-income residents. • Barriers to Housing Choice Voucher Use (Lower Priority) Based on community feedback, Housing Choice Voucher holders and those with disabilities often find it difficult to find an appropriate housing unit. Some find it difficult to find an appropriately sized unit that will take their voucher and others experienced that the vouchers will not cover the rent of an appropriately sized unit. In addition, there is an extreme shortage of housing vouchers, and many eligible people are unable to obtain a voucher due to the shortage.
• Housing Disbursement (Moderate Priority)
Two RCAAs are found in the City, indicating a concentration of affluent White populations in the City. RCAAs may indicate that historical exclusionary practices continue to affect the Santa Cruz community or that secondary factors such as income inequality prevent integration from occurring more quickly. More integrated, mixed-income housing is required to dissolve RCAAs.
• Lack of Fair Housing Services (Lower Priority)
Overall, the fair housing network appears to be quite fragmented; different support groups are organized around specific special need populations. Only the District Attorney’s Office focuses on fair housing issues affecting the general population. During the analysis of this Housing Element, several organizations highlighted insufficient funding as the main source of their relative shortcomings, including the absence of maintained data, reduction or elimination of previously provided services, and lack of coordination between organizations.
The City recognizes the fair housing issues that exist within the community and is committed to reducing barriers to housing affordable to all persons. The Housing Plan of this Housing Element provides goals, policies, and programs to increase housing opportunities, remove constraints to affordable housing, improve the existing housing stock, and provide equal opportunities for all current and future residents of Santa Cruz.
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E. AFFH Summary
During the 6th Cycle Housing Element process, the City kicked off a comprehensive outreach plan to connect with as many members of the community as possible. Beginning in Fall 2022, the City conducted a variety of outreach and engagement efforts detailed in Appendix A. Community engagements were meant to notify, educate, and engage the public. The City outreached to special needs groups and organizations and groups representing or serving special needs groups.
In response to the feedback received and solicited, the City drafted a Policy Plan and Sites Inventory that responded to the unique needs of Santa Cruz residents in an effort to affirmatively further fair housing.
During community engagement events, the public expressed the need for a variety of housing types such as multifamily housing, ADUs and duplex/triplexes. More important than specific housing types, the public expressed the significant need for affordable housing options within the City. The public expressed that a mix of housing types were required in order to address the housing needs of residents with lower or fixed incomes. In direct response to the public’s desire for more affordable housing options, the City drafted the following Policy Programs:
• Policy 1.4 – Facilitate alternative housing types that respond to Santa Cruz’s diverse population and housing needs, especially those for single-person households, low-income households, students, and special housing needs groups. • Policy 1.5 – Facilitate the development of Accessory Dwelling Units. • Policy 2.1 – Enable mixed-income projects that encourage greater diversity within housing projects.
• Policy 2.2 – Develop creative ways to facilitate more affordable housing development in the City.
• Policy 2.3 – Support the Density Bonus as a valuable tool for incentivizing the development of housing and the inclusion of affordable units in housing projects. • Policy 2.4 – Support Public-Private Partnerships that facilitate the development of affordable housing.
• Policy 3.1 - Create housing for low-income families with children and persons with disabilities.
• Policy 3.2 - Provide high quality care alternatives such as childcare centers and family daycare for children and youth that are available, affordable, and accessible to those persons who live or work in the City.
• Policy 3.3 - Implement the City’s Homelessness Response Action Plan and maintain the relationship with the Continuum of Care to support housing solutions for the homeless as well as a wide variety of supportive services.
• Policy 3.4 - Facilitate permanent supportive housing units, transitional housing options, and extremely low income units for residents through funding and partnerships. • Policy 3.6 – Provide community programming funding to support the special needs and homeless populations in finding housing and supportive services. • Policy 3.7 - Support agriculture and employee housing where applicable.
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• Policy 4.1 – Support the provision of rental assistance in the event of a household having insufficient funds for a security deposit or rent payment. • Policy 4.2 – Investigate and apply for various state, federal, and private sources to provide financing for the construction of new housing and the provision of supportive services. • Policy 5.3 – Provide housing rehabilitation assistance to low-income households when feasible.
• Policy 6.3 – Support the development and marketing of accessible housing, senior housing, and tenant services.
In furtherance of fair housing, the City targeted outreach to areas and populations that have historically experienced lower opportunities, lower incomes, and lower resources. Through a variety of engagement events, the City engages residents in these areas to understand their unique needs and desires. In response to correspondence with affected groups in Santa Cruz, the City drafted a plan that will increase access to opportunities and resources for individuals who experience reduces access currently. In addition to the Policy Programs listed above, the City added the following programs to AFFH in Santa Cruz:
• Policy 6.1 – Seek to mitigate displacement risks and remove barriers to housing choice vouchers.
• Policy 6.2 – Support affordable housing and the siting of new housing that furthers fair housing.
• Policy 6.3 – Support the development and marketing of accessible housing, senior housing, and tenant services.
• Policy 6.4 – Consider displacement risks due to new development, economic trends, and the environment, and provide community investments to support fair housing.
A comprehensive summary of the above AFFH analysis is provided within this section for each of the City’s six districts (as illustrated in Figure D-27). In 2022, voters passed Measure E, amending the City’s Charter to create six districts and elect one at-large Mayor. This amendment allows voters of each district to elect their own Councilmember who must reside within that district, rather than electing seven Councilmembers at-large as was previously the case. This enables each district to be fairly and equitably represented.
As part of the process, the City hosted several public meetings in fall 2021 to receive input on what districts should look like. The City’s demographer then created several proposed draft maps for the City Council to consider and for residents to vote upon. The City must comply with State and federally-mandated criteria when developing districts, including the following requirements:
• Must contain a nearly equal population.
• May not be drawn with race as the predominate factor in violation of the principles established by the U.S. Supreme Court in Shaw v. Reno, 509 U.S. 630 (1993), and its progeny.
• Must be contiguous, which means districts should not hop, skip and jump over some areas to include others.
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• Must be drawn to maintain “communities of interest” so that people of like interests are brought together for representation.
• Should be consistent with City, County and local government boundary lines as much as possible.
• Should be compact. California defines compactness “as not bypassing nearby populated areas in favor of more distant populated areas.”
• The summaries provided below include local and historical context, as well as a breakdown of candidate sites identified in each district.
Figure D-27: City of Santa Cruz Council Districts
1. District 1
Local Context
Council District 1 is predominantly made up of single-family neighborhoods bisected by Cabrillo Highway and separated from Council District 2 to the south by Water Street. North of Prospect Heights and east of Branciforte Drive is the DeLaveaga golf course and preserved open space with trails and community amenities.
District 1 also includes the northern portion of Ocean Street down to Soquel Avenue. Ocean Street historically developed as a gateway into Santa Cruz to serve visitors and providing hotels/motels,
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gas stations and auto repair shops, restaurants, and a variety of retail businesses. A mix of singleand multi-family residential neighborhoods also surround the corridor. Recent developments have led to the consolidation of smaller sites to create mixed use higher density projects on the corridor. In 2014, the City adopted the Ocean Street Area Plan to guide development through 2030 and “provide a framework for creating a more welcoming environment along the corridor.” The Plan identifies the consolidation of smaller parcels as opportunities for more intensive development. The County Government Center and Paradox Inn are both identified as opportunity sites for potential future development given their size and location. The Plan’s vision is – “By the year 2030, Ocean Street will become a beautiful, multifaceted gateway to Santa Cruz that reflects the city’s unique and diverse character. Public art will create a distinctive sense of place as people enter the city, and the street itself will be an attractive, tree-lined boulevard that provides a comfortable and safe place for people to walk. New buildings on Ocean Street will reflect a high caliber of architectural design. They will provide space for a variety of local and franchise businesses, and they will create new places to work, live and visit. In addition, all parts of Ocean Street will have stronger connections to the San Lorenzo River.” Mixed-use development is identified as a prime solution to continue providing visitor-serving needs, as well as to add housing units in convenient proximity to commercial and retail needs. The Plan envisions the corridor transforming from a car-centric thoroughfare to a “more attractive and functional urban environment where residents can work, live and shop.” AFFH Findings
• High Resource neighborhoods to the north of Cabrillo Highway and Moderate Resource neighborhoods to the south of the highway.
• The area has experienced the greatest increase in diversity from 2010 to 2018 compared to the other districts; however, an RCAA is identified north of Cabrillo Highway. • The median income for the district as a whole has been increasing since 2014 – the region south of Cabrillo Highway has increased from a median of less than $55,000 to a mix of block groups ranging from less than $87,100 to less than $126,000. • Half of the district reports a population with a disability between 10 and 20 percent.
Candidate Sites
Candidate sites in District 1 are predominantly located along Water Street and Ocean Street. A few pipeline projects are scattered in existing neighborhoods throughout the District, along with two church properties.
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Table D-20: District 1 Candidate Site Units by Affordability Very Low-/ LowIncomeModerateIncomeAbove ModerateIncome TOTAL Units 154 22 608 784
Percent of Total Units
by Income Category 10.4% 3.4% 22.27% 16.1%
2. District 2
Local Context
District 2 includes the Seabright and Lower Ocean Street neighborhoods. Similar to District 1, the district includes a large percentage of residential neighborhoods with higher density mixed use, retail, and commercial uses along corridors such as Soquel Avenue, Ocean Street, and Water Street. The Santa Cruz Harbor and adjacent Arana Gulch Open Space Park separate Santa Cruz from the neighboring communities of Live Oak and Twin Lakes.
District 2 is made up of differing communities with varying median incomes. The Lower Ocean Street neighborhood is classified as at-risk of displacement for lower income households. In contrast, the neighborhood west of the harbor and north of Seabright Beach is considered affluent.
AFFH Findings
• High Resources area southeast of Seabright Avenue and Water Street and south of Murray Street; the rest of the district is categorized as Moderate Resource. • Neighborhoods around Murray Street have experienced an increase in diversity between 2010 and 2018.
• The median income has increased in neighborhoods between Water and Murray Street since 2010.
• The District has a low percent of population with a disability at less than ten percent. • The highest level of positive economic outcomes is reported for the whole District. • Jobs proximity is very highly rated with most of the District reporting the highest score and the region to the east reporting the second highest score. • 40 to 60 percent overpayment by homeowners (high for Santa Cruz) west of Seabright Avenue and north of Murray Street.
• 40 to 60 percent overpayment by renters (moderate for Santa Cruz). • One area at risk of displacement around Ocean Street neighborhoods west of Seabright Avenue.
Candidate Sites
A total of 11.6 percent of the total sites identified are located in District 2. These sites predominantly include infill opportunities along the Soquel Avenue, Water Street, and Ocean
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Street corridors, with some scattered sites throughout the neighborhoods and one church property.
Given the risk of displacement for communities in the Lower Ocean Street neighborhoods, sites were identified as appropriate but not extensively. The sites selected were deemed to provide opportunities for potential mixed-use and higher density development along the corridors, but not to threaten existing lower income households.
Table D-21: District 2 Candidate Site Units by Affordability Very Low-/ LowIncomeModerateIncomeAbove ModerateIncome TOTAL Units 167 80 393 640
Percent of Total Units
by Income Category 11.3% 12.3% 14.4% 13.1%
3. District 3
Local Context
District 3 covers a long portion of the City from West Cliff Drive, west of Neary Lagoon, past Mission Street, and west along Bay Street. The District is predominantly made up of single-family neighborhoods, with commercial, office, and educational uses along Mission Street. Much of Mission Street is zoned for medium density residential mixed-use. Multi-family uses are predominantly located off Bay Drive along Nobel Drive as well as adjacent to Neary Lagoon.
AFFH Findings
• District 3 is mostly made up of High Resources areas, with the exception of one Moderate area north of Bay Street.
• Slight increase in diversity north of Mission Street between Bay Steet and Western Drive. • One RCAA exists in District 3 along the coast and south of Bay Street. • District 3 has experienced a large increase in median income between 2014 and 2019. • Pockets of 10 to 20 percent population with a disability along the coast and near downtown.
• District 3 includes areas of positive economic outcomes along the coast as well as pockets of lower and highest positive outcomes towards downtown and north of Mission Street.
• Most of the District reports high job proximity scores, with the exception of neighborhoods north of Mission Street.
• Homeowners have a fairly average overpayment score between 20 to 40 percent (moderate for Santa Cruz); neighborhoods north of High Street and west of Mission Street report higher overpayment rates at 40 to 60 percent. • Renters along the coast report the lowest overpayment rate in the city – likely due to having higher incomes. The rest of the District reports the highest overpayment between
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60 to 80 percent; with the exception of a few neighborhoods along the north side of Mission Street which report 40 to 60 percent renter overpayment. • Neighborhoods closest to downtown north of High Street and west of Mission Street report the active displacement of one income group.
Candidate Sites
A number of pipeline projects are located within District 3; however, the majority of candidate sites are located along Mission Street corridor as the district is fairly built out with existing neighborhoods. The City can anticipate ADU development to occur throughout these neighborhoods and continue to provide a source of affordable units.
Table D-22: District 3 Candidate Site Units by Affordability Very Low-/ LowIncomeModerateIncomeAbove ModerateIncome TOTAL
Units 61 86 225 372
Percent of Total Units
by Income Category 4.1% 13.2% 8.2% 7.6%
4. District 4
Local Context
District 4 includes the entirety of Downtown
Santa Cruz and residential neighborhoods
south of High Street. Downtown Santa Cruz
has been the focus of redevelopment and
revitalization interest throughout the 5th
Cycle. The area was particularly affected by
the COVID-19 pandemic. Figure D-26 above
illustrates that the City has planned the
highest amount of CIP Projects in Downtown
Santa Cruz.
The Santa Cruz Boardwalk, related parking
lots, and the Wharf are part of District 4.
While this area is predominantly developed to serve visitors, the Beach Flats community is centrally located between these entertainment and lodging uses. As identified in the AFFH Findings, the south downtown area, Beach Flats community, and Neary Lagoon neighborhoods report active displacement. The City has made extensive investments in furthering affordable housing development within the area to create opportunities for existing residents and address the affordable housing crisis by facilitating affordable housing development. Throughout the 6th Cycle, the City will continue to focus attention on protecting residents from further displacement.
AFFH Findings
• District 4 is divided up by Moderate Resource areas in the downtown and High Resource areas northwest of Mission Street.
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• Diversity has increased in pockets of District 4 since 2010 – particularly in the northern region of downtown and to the west of Mission Street.
• Median incomes have increased in neighborhoods near the Boardwalk and west of Mission Street.
• Mission Street splits District 4 population with a disability with less than 10 percent to the north and 10 to 20 to the south.
• Low economic outcome scores downtown, moderate scores along the coast, and highest scores to the north of Mission Street.
• Highest job proximity index scores.
• Pocket of “higher” environmental burdens score downtown directly south of Mission Street at 41-50 percent (higher in comparison to the rest of the city, 41 to 50 percent is still considered on the lower half).
• District 4 almost entirely reports 40 to 60 percent overpayment by homeowners; and similarly for renters with the majority of the district reporting 60 to 80 percent renter overpayment.
• Downtown Santa Cruz reports one income group currently experiencing displacement.
Candidate Sites
New development projects seek to pair housing opportunities with ground-floor commercial uses to create an accessible and lively downtown without reliance on vehicles.
Large mixed-use projects have made their way through the permitting pipeline and the Downtown Expansion Plan has been in development to create new opportunities for affordable units paired with community and entertainment spaces.
District 4 has the greatest percentage of lower income units given it’s central accessibility to public transportation (the transit depot is located downtown); community resources tied to City Hall, the library, homeless resources and shelters, and community organizations; employment opportunities; medical offices; and commercial needs such as grocery stores and restaurants.
While the area has the greatest percent of lower income units, the percentage remains proportional to moderate- and above moderate-income units planned for in the area.
Table D-23: District 4 Candidate Site Units by Affordability Very Low-/ LowIncomeModerateIncomeAbove ModerateIncome TOTAL
Units 641 177 1,142 1,960
Percent of Total Units
by Income Category 43.2% 27.2% 41.7% 40.2%
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5. District 5
Local Context
District 5 covers residential neighborhoods north of High Street, the industrial complex along River Street, and the majority of the UC Santa Cruz campus.
The industrial area has seen increased interest in housing development over recent years. Existing affordable housing developments include units at the Tannery Arts Center and the Rebele Family Shelter. While there is interest on select sites throughout the area, the City is intent on maintaining its industrial areas to provide employment opportunities as reflected in General Plan policies.
South of Cabrillo Highway and north of Water Street is the northern downtown portion of District
5. This area currently has a variety of uses including faith-based organizations, Santa Cruz Mission, El Rio Mobile Home Park, various commercial uses, some industrial uses, and scattered residential uses.
AFFH Findings
• District 5 is a High Resource area with one small pocket of Moderate Resource scores south of Mission Street.
• The area has not experienced recent changes in diversity – all other Districts have reported increases.
• The median incomes across the entire District have increased between 2014 and 2019. • District 5 has a mix of 10-20 percent and less than 10 percent population with a disability. • District 5 has the highest percent of children in married-couple households, with the exception of lower scores over the UCSC campus.
• The majority of the District reports the Highest positive economic score, with the exception of the lowest score over the UCSC campus; this can be expected given the temporary nature of the student residents, as well as the lower rates of employment for full-time students.
• District 5 has the highest job proximity score for the majority of the area and the lowest scores over the UCSC campus.
• District 5 reports the highest rates of overpayment by renters.
Candidate Sites
Candidate site units located in District 5 include a number of pipeline projects, a few vacant lots, and a church property. The District is more constrained due to the UCSC campus, industrial land, single-family neighborhoods, and the Pogonip Open Space area. However, almost 30 percent of lower income units are planned for the high resource area.
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Table D-24: District 5 Candidate Site Units by Affordability Very Low-/ LowIncomeModerateIncomeAbove ModerateIncome TOTAL
Units 413 36 140 589
Percent of Total Units
by Income Category 27.8% 5.5% 5.1% 12.1%
6. District 6
Local Context
District 6 follows the coast from Lighthouse Field State Beach to the Younger Lagoon Reserve and up to the UC Santa Cruz campus. Along the coast, District 6 is known for its famous West Cliff Drive, with its long pedestrian and bike path, and vast ocean view. The adjacent neighborhoods are predominantly single-family, with ocean-view homes selling in the multi-million-dollar range.
Source: (Left) Lawrence Linda, SCPL Local History, (Right) Redfin Residential neighborhoods both to the south and to the north of Mission Street are largely built out, with the exception of a few vacant parcels. The area to the north of Mission Street is constrained to the west due to canyons and hillsides.
The City’s second industrial area is located northeast of Natural Bridges State Beach and south of Mission Street. The area has been growing slowly over the last few years with new industrial uses coming in and some residential. A number of parcels along Delaware Avenue west of Swift Street remain vacant; however, the vision for the area is to remain predominantly industrial focused and to continue serving as an employment hub for the community.
Future development interest in District 6 is focused along Mission Street predominantly to redevelop older strip malls and underutilized parcels with the vision of providing higher density mixed-use development with commercial components.
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AFFH Findings
• District 6 is divided by High Resource TCAC scores to the north of Mission Street and mostly Moderate Resource scores to the south.
• The area has experienced a large increase in population diversity. • Part of an RCAA exists along the coast and south of Mission Street. • The block group south of Mission Street between Almar Avenue and Shaffer Road may have experienced a decrease in median income from “<$80,000” to “<$55,000”. Given the change in categories for median income reporting, the area could have maintained a similar median income, but the surrounding block groups did experience an increase in median income.
• District 6 has neighborhoods with the highest percent of children living in married couple households north of mission Street and neighborhoods with the lowest percentages to the south of Mission Street.
• The area generally reports low economic outcome scores, potentially due to the higher prevalence of industrial and commercial uses.
• District 6 reports moderate job proximity scores.
• Approximately 60-80 percent of renters overpay for housing in the area.
Candidate Sites
District 6 is able to accommodate nearly half of the City’s moderate-income RHNA due to the UCSC pipeline projects. A number of other pipeline projects are proposed in the area, with the main focus being the Mission Street corridor. While the percent of lower income units is low in this District, units on the UCSC campus may develop at costs affordable to very low- and low-income households and thus increase the projected percentage.
Table D-25: District 6 Candidate Site Units by Affordability Very Low-/ LowIncomeModerateIncomeAbove ModerateIncome TOTAL
Units 47 249 229 525
Percent of Total Units
by Income Category
3.2% 38.3% 8.4% 10.8%
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Housing Constraints
Appendix E
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Housing Constraints
A variety of constraints may affect the provisions and opportunities for adequate housing in the City of Santa Cruz. Housing constraints consist of both governmental constraints (including, but not limited to, development standards and building codes, land use controls, and permitting processes) and non-governmental or market constraints (including, but not limited to, land costs, construction costs, and availability of finances). Potential infrastructure and environmental obstacles are also classified as housing constraints. Combined, these factors can create barriers to availability and affordability of new housing, especially for lower and moderate-income households.
A.Non-Governmental Constraints
Nongovernmental constraints largely affect the cost of housing in Santa Cruz and can produce barriers to housing production and affordability. These constraints may include real wages, the availability and cost of land for residential development, the demand for housing, financing and lending, construction costs, and the availability of labor, which can make it expensive for developers to build any housing, especially affordable housing. The following highlights the primary market factors that affect the production of housing in the City of Santa Cruz.
1. Land Costs and Construction
Construction costs vary widely according to the type of development, with multi-unit housing generally less expensive per unit to construct than single-unit homes. However, there is variation within each construction type, depending on the size of the unit and the number and quality of amenities provided. An indicator of construction costs is Building Valuation Data compiled by the International Code Council (ICC). The ICC was established in 1994 with the goal of developing a single set of national model construction codes, known as the International Codes, or I-Codes. The ICC updates the estimated cost of construction at six-month intervals and provides estimates for the average cost of labor and materials for typical Type VA wood-frame housing. Estimates are based on “good-quality” construction, providing for materials and fixtures well above the minimum required by state and local building codes. In February 2022, the ICC estimated that the average per square-foot cost for good-quality housing was approximately $144.50 for multi-unit housing, $160.35 for single-unit homes, and $181.25 for residential care/assisted living facilities.
Construction costs for custom homes and units with extra amenities run even higher. Construction costs are also dependent upon materials used and building height, as well as regulations set by the City’s adopted Building Code. For example, according to the ICC, constructing an accessory dwelling unit (ADU) or converting a garage using a Type VB wood framed unit would costs about $150.87 per square foot. Although construction costs are a significant portion of the overall development cost, they are consistent throughout the region and, especially when considering land costs, are not considered a major constraint to housing production in Santa Cruz.
Land costs can also pose a significant constraint to the development of affordable and middleincome housing and represent a significant cost component in residential development. Land costs may vary depending on whether the site is vacant or has an existing use that must be removed.
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Similarly, site constraints such as environmental issues (e.g., steep slopes, soil stability, seismic hazards, flooding) can also be factored into the cost of land. Additional costs may be associated with redeveloping and/or converting sites, which may influence the cost of the rental units or home value.
A Zillow search for vacant lots sold between September 2019 and September 2022 returned lots ranging from 0.06 acres to 152.11 acres. Of the lots listed, the costs ranged significantly depending on the area of the City. Lots with ocean views averaged $338 per square foot while lots more inland averaged less than $100 per square foot. The cost of ocean view lots increases the average cost per square foot in the City.
2. Availability of Financing
The availability of financing in a community depends on a number of factors, including the type of lending institutions active in a community, lending practices, algorithms, rates, and fees charged, laws and regulations governing financial institutions, and equal access to such loans. Additionally, availability of financing affects a person’s ability to purchase or improve a home. Under the Home Mortgage Disclosure Act (HMDA), lending institutions are required to disclose information on the disposition of loan applications and the income, gender, and race of loan applicants. The primary concern in a review of lending activity is to determine whether home financing is available to all residents of a community, regardless of income, sex, race, or ethnicity. The data presented in this section includes the disposition of loan applications submitted to financial institutions for home purchase, home improvement, and refinancing in the Santa Cruz-Watsonville MSA/MD.
Table E-1 below displays the disposition of loan applications for the Santa Cruz-Watsonville MSA/MD per the 2021 Home Mortgage Discloser Act report. According to the data, applications in the 100-119 percent of the MSA/MD median had the highest rates of loan approval. Within that income category, those who identify as Native Hawaiian or other Pacific Islander had the highest approval rates (80 percent), while those who identify as American Indian and Alaska Native and Hispanic or Latino had the lowest rates (60 and 65.2 percent, respectively). There is no general trend acrossincome categories. Those who identify as White had significantly more applications than any other racial or ethnic group. Persons who identify as White accounted for 81 percent of all applications received. Some racial or ethnic groups only had a handful of applications in certain income categories, which has skewed the results.
According to the data, applicants who identify as Black or African Americanwere on average more likely than other race/ethnicities to receive a loan approval (70.1 percent), although the limited number of applications may skew the results. On average, applicants who identify as Black or African American have approval rates approximately 24 percent higher than the lowest approval rate of all Race or Ethnicity groups (American Indian and Alaska Native, 45.2 percent approval).
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Table E-1: Disposition of Loan Applications by Race/Ethnicity – Santa Cruz-Watsonville MSA/MD Applications by Race/Ethnicity Percent
Approved
Percent
Denied
Percent
Other (1) Total (Count)
LESS THAN 50% OF MSA/MD MEDIAN
American Indian and Alaska Native 21.4% 42.9% 35.7% 14
Asian 35.7% 31.0% 33.3% 42
Black or African American 61.5% 23.1% 15.4% 13
Native Hawaiian or other Pacific Islander 0.0% 100.0% 0.0% 2 White 48.6% 26.1% 25.3% 1086
Hispanic or Latino 41.9% 32.6% 25.6% 227
50-79% OF MSA/MD MEDIAN
American Indian and Alaska Native 46.2% 23.1% 30.8% 13
Asian 46.7% 30.7% 22.7% 75
Black or African American 50.0% 25.0% 25.0% 12
Native Hawaiian or other Pacific Islander 66.7% 16.7% 16.7% 6 White 65.0% 14.9% 20.1% 1942
Hispanic or Latino 60.2% 17.1% 22.7% 467
80-99% OF MSA/MD MEDIAN
American Indian and Alaska Native 33.3% 66.7% 0.0% 6
Asian 56.0% 8.0% 36.0% 25
Black or African American 100.0% 0.0% 0.0% 3
Native Hawaiian or other Pacific Islander 50.0% 0.0% 50.0% 2 White 69.1% 8.8% 22.1% 748
Hispanic or Latino 61.4% 14.3% 24.3% 140
100-119% OF MSA/MD MEDIAN
American Indian and Alaska Native 60.0% 20.0% 20.0% 10
Asian 69.9% 8.7% 21.4% 103
Black or African American 76.5% 11.8% 11.8% 17
Native Hawaiian or other Pacific Islander 80.0% 20.0% 0.0% 5 White 73.6% 8.7% 17.7% 2212
Hispanic or Latino 65.2% 10.5% 24.3% 362
120% OR MORE OF MSA/MD MEDIAN
American Indian and Alaska Native 65.2% 4.3% 30.4% 23
Asian 71.3% 6.6% 22.1% 470
Black or African American 62.5% 12.5% 25.0% 32
Native Hawaiian or other Pacific Islander 71.4% 7.1% 21.4% 14 White 74.5% 7.5% 18.0% 7018
Hispanic or Latino 68.9% 12.7% 18.4% 550
Notes: 1. “Other” includes: applications withdrawn, files closed for incompleteness, and purchased loans.
Source: Consumer Financial Protection Bureau, Disposition of loan applications, by Ethnicity/Race of applicant, 2021.
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3. Economic Constraints
Market forces on the economy and the trickle-down effects on the construction industry can act as a barrier to housing construction and especially to affordable housing construction. It is estimated that housing price growth will continue in the City and the region for the foreseeable future. Moving into 2020, the economy was growing, California was seeing a 1.6 percent growth in jobs from 2019 and experiencing all-time lows for unemployment rates. The COVID-19 pandemic had stalled much of the economy in early 2020; however, as Figure E-1 shows, the Santa Cruz housing market has maintained overall growth. Figure E-1 also shows the sale of homes continued throughout the pandemic; and despite inflation and increases in home costs, homes sold consistently.
Figure E-1: Median Sale Price and Homes Sold (2020-2022) Source: Redfin, Santa Cruz Housing Market Trends (Accessed December 6, 2022).
A July 2022 California Association of Realtors (CAR) report found that single-family homes on the market in Santa Cruz County had a median sold price of $1,250,000 and experienced a year-toyear change of 5.5 percent. Santa Cruz is located in the Central Coast region, which had a median sold price of $950,000 during the same period. Single-family homes on the market in the San Francisco Bay Area had the highest median sold price in the State of California at $1,300,000.
According to a CAR First-Time Buyer Housing Affordability Index report for the second quarter of 2022, the median home price for a single-family home in Santa Cruz County was $1,147,500 with monthly payments of $6,280 (including taxes and insurance). This required a minimum qualifying 0 10
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income of $188,400. In comparison, the median cost for a single-family home in California was $750,860, with monthly payments of $4,110 and a minimum qualifying income of $123,300.
The cost of land and home prices in Santa Cruz may be considered a constraint to the development of and access to housing, particularly affordable housing; however, these home and land costs are consistent with jurisdictions in the region and with other coastal communities. Furthermore, the City was very successful in working with developers throughout the 5th cycle to create affordable housing and as such, it is not considered a constraint.
B. Environmental Constraints
The City of Santa Cruz may be susceptible to several environmental constraints to the development of housing. While the City’s land, hillsides, and waterways are assets to the community, these features can present risks due to flood, geologic, and seismic hazards. In addition, human-caused risks such as hazardous materials can pose risks to community health and safety. Effective planning to prepare for and mitigate the adverse effects of these risks can help ensure that Santa Cruz maintains a high level of safety for its residents. The City of Santa Cruz plans and engages mitigation techniques through the City’s Hazards, Safety, and Noise Element.
1. Geological and Seismic Hazards
Geologic and seismic hazards in Santa Cruz include those related to earthquakes, steep slopes and landslides, erosion, and soil subsidence. Earthquakes pose the greatest potential for far-reaching loss of life or property. Santa Cruz is located within a 15-mile radius of at least six major seismic faults and fault systems. According to the USGS Interactive Fault Map, the nearest active fault zones include the Ben Lomond Fault and San Andreas Fault zones. The San Andreas Fault has the estimated potential to produce a magnitude 8.0 earthquake. Residential development within a seismically active zone could expose Santa Cruz residents to adverse effects.
A lesser geologic hazard relates to soil stability in the City. Hillsides located mostly on the periphery of the City can be subject to landslides and portions of the City have expansive soil types. Expansive clay soils, which can shrink and swell, are common within the City of Santa Cruz. In addition, areas found in the City may be subject to liquefaction during a seismic event if groundwater is present near the surface. Cliff retreat is the result of hillside or coastal headland erosion from weathering, physical disturbance and, in the case of ocean cliffs, the continuous and forceful actions of waves and tides. In the City, cliff retreat is prevalent along North Pacific Avenue, Chestnut Street, and ocean cliffs at West Cliff Drive and Seabright Beach.
While virtually all of Santa Cruz is subject to potential geologic and seismic hazards, the City analyzed these hazards during the candidate sites selection process and determined that selected sites were not precluded by geologic and seismic hazards. The identified sites are suitable for development and to ensure structural stability, seismic and geologic hazards are addressed through the environmental and development review and permitting process. The City’s 2030 General Plan also establishes policies to address potential hazards.
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2. Flood Hazards
Potential flooding in Santa Cruz is attributable to intense rainfalls, localized drainage problems, tsunamis and seiches, and failures of flood control. Flooding becomes particularly hazardous when development encroaches onto floodplains, modifying the landscape and altering natural patterns of conveying excess water during floods. Santa Cruz’s geographic location in proximity to several significant bodies of water contributes to the flood risk within the City. Flooding in Santa Cruz has occurred primarily along San Lorenzo River. The greatest flood hazard is present mainly along the San Lorenzo River, Moore Creek, Arana Gulch, Branciforte Creek, and Carbonera Creek, that are included as flood hazard areas in existing Federal Emergency Management Agency (FEMA) maps.
The City, in conjunction with the Army Corps of Engineers, worked to improve the flood capacity of the San Lorenzo River. Major construction was completed on the levees and bridges along the river. FEMA recognized the increased flood protection by granting an A-99 flood zone designation for most of the floodplain in the City. Flood insurance premiums in the A-99 flood zone are up to 50 percent lower than under the previous designation. New buildings and improvements to structures in the A-99 zone do not need to meet FEMA flood elevation construction requirements unless the property owner wishes to do so. Flooding is a hazard on the lower reaches of Moore Creek, the lower portion of Arana Gulch north of the Santa Cruz Yacht Harbor, and along portions of Branciforte and Carbonera creeks. Development in these floodplains is strictly limited to reduce potential hazards to people or property.
Figure E-2 shows the flood risk in the City with the following risk areas:
Moderate to Low Risk Areas
• X – Areas outside the 1% annual chance floodplain, areas of 1% annual chance sheet flow flooding where average depths are less than 1 foot, areas of 1% annual chance stream flooding where the contributing drainage area is less than 1 square mile, or areas protected from the 1% annual chance flood by levees. No Base Flood Elevations or depths are shown within this zone. Insurance purchase is not required in these zones. o No sites identified in the X area.
High Risk Areas
• A - Areas with a 1% annual chance of flooding and a 26% chance of flooding over the life of a 30-year mortgage. Because detailed analyses are not performed for such areas; no depths or base flood elevations are shown within these zones. o No sites identified in the A area.
• AE - Areas with a 1% annual chance of flooding and a 26% chance of flooding over the life of a 30-year mortgage. In most instances, base flood elevations derived from detailed analyses are shown at selected intervals within these zones. o Three (3) sites identified in the AE area. To ensure structural stability, flood hazards are addressed through the environmental and development review and permitting process. The City’s 2030 General Plan also establishes policies to address potential hazards.
• AH – Floodway
o No sites identified in the floodway area.
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• A99 - Areas with a 1% annual chance of flooding that will be protected by a Federal flood control system where construction has reached specified legal requirements. No depths or base flood elevations are shown within these zones.
o Approximately 25 percent of the identified sites are in the A99 area. To ensure structural stability, flood hazards are addressed through the environmental and development review and permitting process. The City’s 2030 General Plan also establishes policies to address potential hazards.
High Risk – Coastal Areas
• VE - Coastal areas with a 1% or greater chance of flooding and an additional hazard associated with storm waves. These areas have a 26% chance of flooding over the life of a 30-year mortgage. Base flood elevations derived from detailed analyses are shown at selected intervals within these zones.
o No sites identified in the VE area.
Figure E-2: FEMA Flood Zones
Source: City of Santa Cruz 2030 General Plan
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3. Fire Hazards
Wildfires (large-scale brush and grass fires) pose the most risk to the City and particularly neighborhoods near undeveloped areas. The City is surrounding by thousands of acres of undeveloped hillsides that are at high risk of human-caused wildfires. The California Department of Forestry and Fire Protection (CDF) has mapped the relative wildfire risk in areas of significant population by intersecting residential housing density with proximate fire threat. The CDF map shows four risk levels: Moderate, High,Very High, and Extreme. While no part of the Planning Area faces an “extreme” threat, the resource maps show that much of the city is classified in a “very high” fire danger zone, principally because the wildland fire zones include a 1.5 mile buffer. The fire department aims to reduce fire risk through its weed-abatement program, which covers all wildland areas within the city’s jurisdiction. The department also works with the County, which has a State and locally approved fire management plan that coordinates among a number of State, regional, and county agencies. In addition, the City has adopted a Wildland Urban Interface ordinance that applies specific sections of the California Building Code related to fire protection to all new construction and new materials for remodels and additions within the wildland-urban interface areas. According to the 2030 General Plan, the City has experienced growing need for additional fire services as tourism and City population increases. The overall risk of structural fires is fairly minimal due to compliance with building codes and the fire department’s buildinginspection program.
While virtually all of Santa Cruz is subject to potential fire hazards, the City analyzed these hazards during the candidate sites selection process and determined that selected sites were not precluded by fire hazards. Approximately 10 sites have been identified in areas with “high fire hazard” risks, but the City determined that the identified sites are suitable for development and to ensure structural stability a personal safety, fire hazards are addressed through the environmental and development review and permitting process. The City’s 2030 General Plan also establishes policies to address potential hazards.
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Figure E-3: Fire Hazard Areas
Source: City of Santa Cruz 2030 General Plan
Figure E-4: CAL FIRE Very High Fire Hazard Severity Zones Source: CAL FIRE VHFHSZ Maps
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Although the City has identified environmental issues above, they do not impact the City’s ability to accommodate the number of units required to meet the RHNA obligation.
The City has reviewed all sites for the above environmental concerns and considerations as well as development regulations and land use restrictions. During the sites analysis process, the City also reviewed any other any known conditions that preclude or significantly impact development in the planning period. Examples of other known conditions include shape, access, property conditions, easements, contamination, overlays and airport compatibility. Based on this analysis, the City determined that all candidate sites can feasibly develop housing and do not experience any known environmental constraints that preclude development during the planning period.
Additionally, each site has been reviewed for access to infrastructure, water, utilities, and additional development constraints. Where the analysis showed increased barriers to development related to environmental concerned, infrastructure concerns, or existing conditions and development concerns (such as fire hazards, hazardous surrounding uses, restrictive development standards, etc.), the sites were removed. The result is a list and analysis of sites which are most ripe for development or redevelopment for housing. A complete analysis of the sites is provided in Appendix G.
C.Governmental Constraints
In addition to market constraints, local policies and regulations also affect the price and affordability of housing and the provision of affordable housing. For example, State and Federal regulations affect the availability of land for housing and the cost of housing production, making it difficult to meet the demand for affordable housing and limiting supply in a region. Regulations related to environmental protection, building codes, and other topics may have significant, often adverse, impacts on housing cost and affordability while providing safer housing with fewer impacts on the environment.
While the City of Santa Cruz has no control over State and Federal policies and regulations that affect housing, the City’s Housing Element can address local policies and regulations that create constraints on the development of housing, and particularly affordable housing.
1. Land Use Controls
Jurisdictions in California are required by Law to prepare comprehensive, long-term General Plans to guide future development. The Land Use Element of the General Plan establishes permitted land uses and development density throughout the City of Santa Cruz. These land uses provide a wide variety of housing types throughout the City, while also ensuring compatibility between neighboring uses. Table E-2 lists the land uses that permit residential developments and their density ranges. This information is readily available on the City’s website, in compliance with State transparency requirements.
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The Land Use Element of the General Plan identifies the following residential and mixed-use categories:
• Very-Low-Density Residential (VL) – Intended to provide a rural transition area between undeveloped land and single-family residential neighborhoods. Also applied to areas with significant environmental constraints. Large-lot, single-family homes are typically developed under this designation.
• Low-Density Residential (L) – Provides for single-family residential neighborhoods typically comprising detached homes. Santa Cruz’s low-density residential areas include a wide variety of architectural styles.
• Medium-Density Residential (M) – Accommodates a mix of single-family and multifamily residential uses, including low-rise apartments, condominiums and townhomes. This land use category has been designated for some single-family neighborhoods with a historic pattern of small lots. It is the intent of the Plan that, in areas designated M where detached single-family homes are prevalent, new development should reflect the scale and character of the then-existing homes.
• High-Density Residential (H) – Accommodates mid-rise multifamily buildings, typically apartments, in areas where increased densities and building heights are appropriate. Used in locations where the City’s goal is to provide for intensive infill housing. • Mixed-Use Medium Density (MXMD) – Appliesto sites along the Ocean Street corridor and the Mission Street corridor between Swift Street and Laurel Street. It accommodates mixed-use development at a scale that is similar to existing buildings along the corridor.
The typical commercial uses are similar to those in the Community Commercial (CM) designation, and pedestrian-oriented commercial uses are encouraged on the ground floor.
• Mixed-Use High Density (MXHD) – This designation may be applied to sites along Water Street, and Soquel Avenue corridors. The typical commercial uses are similar to those in the Community Commercial (CM) designation, and pedestrian-oriented commercial uses Table E-2: Residential Land Uses and Density Ranges
General Plan Land Uses Density Range
(Dwelling Units per Acre)
Total Acreage for Land
Use Category
Very-Low-Density Residential (VL) 0.1 – 1.0 du/ac 186
Low-Density Residential (L) 1.1 – 10 du/ac 2,427
Low-Medium-Density Residential (LM) 10.1 – 20 du/ac 598 Medium-Density Residential (M) 20.1 – 30 du/ac 227
High-Density Residential (H) 30.1 – 55 du/ac 8
Mixed-Use Medium Density (MXMD) 10 – 30 du/ac 51
Mixed-Use High Density (MXHD) 10 – 55 du/ac 41
Mixed-Use Visitor Commercial (MXVC) 0 – 55 du/ac 38
Neighborhood Commercial (NC) 0.25-1.5 FAR 10
Community Commercial (CM) 0.25-1.75 FAR 179
Regional Visitor Serving Commercial (RVC) 0.25-3.5 FAR (to 5.0 in Downtown) 206
Source: City of Santa Cruz General Plan, Land Use Element.
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are encouraged on the ground floor. The MXHD designation allows a maximum FAR of 1.75 as of right, including a maximum of 30 dwelling units per acre. However, a project that meets a number of specific criteria, as determined by the Planning Commission, may have an FAR of up to 2.75, including up to 55 dwelling units per acre. • Mixed-Use Visitor Commercial (MXVC) – This designation may be applied to sites along the Ocean Street corridor, as well as sites within 1,000 feet of Ocean Street’s centerline and which front on Water Street, Soquel Avenue, May Avenue, or Broadway. The designation is intended to encourage high-quality visitor-serving commercial development along Ocean Street, particularly hotels and motels. However, it also accommodates other multistory commercial development, such as office buildings. The MXVC designation allows a maximum FAR of 2.75. It does not allow any dwelling units as of right. However, a project that meets a number of specific criteria, as determined by the Planning Commission, may include up to 55 dwelling units per acre within this FAR.
Commercial Designations
Santa Cruz’s commercial designations accommodate a variety of retail and office uses, including neighborhood-serving uses as well as businesses that serve the entire region. All commercial designations allow mixed-use developments that provide permanent residential dwelling units. • Neighborhood Commercial (NC), 0.25 to 1.5 FAR – Intended for small-scale commercial uses that serve residential neighborhoods, such as laundromats, grocery stores, and convenience stores. These uses can provide a focal point for the neighborhood and help reduce the number of automobile trips that nearby residents must take. • Community Commercial (CM), 0.25 to 1.75 FAR – Accommodates businesses that serve the general needs of the community, including retail, service, and office establishments.
Typical uses in these areas include restaurants, grocery stores, furniture stores, general merchandise, medical and legal offices, and auto parts stores, as well as mixed-use projects that include these commercial uses on the ground floor. • Regional Visitor Commercial (RVC), 0.25 to 3.5 FAR – Applies to areas that emphasize a variety of commercial uses that serve Santa Cruz residents as well as visitors. Mixed-use development is strongly encouraged in RVC districts. Areas designated RVC include:
o Downtown Santa Cruz, 0.25-5.0 FAR – Emphasizes a mix of regional office and retail uses, residential and mixed-use developments, restaurants, and visitor attractions such as entertainment venues. The Downtown Recovery Plan provides detailed requirements for this area.
o South of Laurel – Emphasizes mixed-use and residential development along with visitor-serving and neighborhood commercial uses to connect the Beach Area with Downtown Santa Cruz. The Beach and South of Laurel Comprehensive Area Plan provides detailed requirements for this area.
o Beach Area – Emphasizes visitor-serving commercial uses such as hotels, motels, restaurants, and amusement parks, as well as residential and mixed-use development in the Beach Area neighborhoods. The Beach and South of Laurel Comprehensive Area Plan provides detailed requirements for this area.
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For most areas designated RVC, the minimum and maximum development intensity is specified in the Downtown Plan or the Beach and South of Laurel Comprehensive Area Plan. In areas that are designated RVC but are not addressed in an Area Plan, the minimum FAR is 0.25 and the maximum is 1.75.
These categories accommodate development of a wide range of housing types in Santa Cruz.
Furthermore, maintaining the existing residential categories is important for ensuring compatibility between the new and existing housing.
2. Zoning Districts
The City’s Zoning Code establishes the following zone districts that permit residential uses:
• Residential Suburban District (R-S) – A residential living area within the city which allows low residential densities and provides a transition to rural areas which adjoin portions of the city.
• Single-Family Residence District (R-1) – The purpose of the R-1 district is to stabilize and protect the residential characteristics of the district, and to promote and encourage a suitable environment for family life and single persons; and intended for single-family detached dwellings and the services appurtenant thereto. • Multiple Residence – Low-Density District (R-L) – The purpose of the R-L district is to promote the development of multifamily townhouses, condominiums and apartments at a low to medium density of 10.1 to twenty-seven units per acre, depending on unit mix; to stabilize and protect the residential characteristics of the district and to promote and encourage a suitable environment for the lives of families and single persons. • Multiple Residence – Medium-Density District (R-M) – The purpose of the R-M district is to promote the development of multifamily townhouses, condominiums and apartments at a medium residential density of 20.1 to forty units per acre depending on unit mix; to stabilize and protect the residential characteristics of the district; and to promote a suitable environment for the lives of families and single persons. • Multiple Residence – High-Density District (R-H) – The purpose of the R-H district is to promote the development of multifamily apartments, townhouses and condominiums at a high residential density of 30.1 to fifty-five units per acre in order to increase the supply of affordable and rental housing and provide new market rate infill housing opportunities.
This district provides a suitable environment for higher density households. • Tourist Residential District (R-T) – The purpose of the R-T district is to establish a zoning district to accommodate a mix of residential, motel, and commercial land uses and to preserve historical buildings and trees within the district. Recognizing this variety of land uses and the desire to utilize existing land uses, the R-T district is divided into five subdistricts: Medium-Density Residential, Motel Residential, Beach Commercial, Beach Residential, and High/Medium Density Residential. Each subdistrict is designed to ensure compatibility of uses, upgrade the area by ensuring a high quality of new developments, and promote a suitable environment for residential and tourist-oriented uses. • R-T(A) Subdistrict A (Medium-Density District) – The purpose of Subdistrict A is to establish standards for medium-density residential uses which promote and protect the residential
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characteristics of the subdistrict and provide a suitable environment for its residents. To preserve the architectural and historic character of this subdistrict, all new development will be reviewed to ensure high-quality design compatible with surrounding residential uses, in compliance with the Design Guidelines of the Beach and South of Laurel Comprehensive Area Plan.1
• R-T(B) Subdistrict B (Motel Residential) – The purpose of Subdistrict B is to establish and control uses to ensure a compatible mixture of uses addressing the needs of residents and tourists. Dominant uses contemplated are motel and medium-density residential uses. To encourage development, which is attractive to both permanent residents and tourists, emphasis will be placed on compatibility of design, landscaping, and a comprehensive review of site planning in compliance with the Design Guidelines of the Beach and South of Laurel Comprehensive Area Plan.
• R-T(B)/PER (Motel Residential Performance District) – The purpose of the Motel Residential Performance Overlay district is to establish and control uses to ensure development which protects neighborhood integrity while supporting appropriate uses.
The goal of the RTB/PER District is to limit the future development of hotel or motel rooms in the district, but to allow ancillary hotel support facilities as well as additional residential development.
• R-T(C) Subdistrict C (Beach Commercial) – The purpose of the R-T(C) Subdistrict is to establish standards for development of residential uses mixed with neighborhood commercial, motel, and regional tourist commercial use. These standards are designed both to improve existing uses and encourage new developments in a manner that maintains a harmonious balance between residential and regional commercial uses. It is the intent of this zoning that preservation of La Bahia be conducted in accordance with the measures described in the certified final Environmental Impact Report for the Beach and South of Laurel Comprehensive Area Plan.
• R-T(D) Subdistrict D (Beach Residential) – The purpose of Subdistrict D is to conserve, protect and enhance the beach residential character of the subdistrict and provide a suitable environment for residents. To preserve the small scale and enhance the historic beach cottage character of this subdistrict, and to ensure that new residential land uses are compatible, permanent and of a high quality, all new development will be reviewed in compliance with the Beach Flats Design Guidelines of the Beach and South of Laurel Comprehensive Area Plan and the Conservation Neighborhood Overlay requirements. • R-T(E) Subdistrict E (Beach Medium/High Residential) – The purpose of Subdistrict E is to encourage quality medium and/or high density multifamily residential uses in a manner which promotes excellence in building design, provides for family-oriented development, ensures compatibility with the adjacent conservation overlay zone, and limits the need for parking by encouraging use of alternative means of transportation, including the multimodal center proposed for the depot site. All new development will be reviewed in compliance with the Beach Flats Design Guidelines of the Beach and South of Laurel Comprehensive Area Plan.
1 See Section C.4 of this Appendix E for more information on the Beach and South of Laurel Area Plan.
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• Community Commercial District (C-C) – The purpose of the C-C district is to provide locations throughout the community for a variety of commercial and service uses for residents of the city and the region which promote the policies of the General Plan; to encourage a harmonious mixture of a wide variety of commercial and residential activities including limited industrial uses, if they are compatible and nuisance free. • Mixed-Use High-Density District (MU-H) - The purpose of the MU-H district is to promote the development of a harmonious mixture of a wide variety of commercial activities that stabilize and protect the commercial characteristics of the district while also supporting a walkable, dynamic, and efficient environment for residents, businesses, and workers.
Development could include limited industrial uses, if they are compatible and nuisance free in conjunction with condominiums and apartments.
• Mixed-Use Visitor-Serving High-Density District (MU-VH) – The purpose of the MU-VH district is to encourage high-quality visitor-serving commercial development along Ocean Street and parts of Soquel Avenue, particularly hotels and motels, while accommodating other multi-story commercial development and supporting high-density housing within mixed-use developments that promote a vibrant and pedestrian oriented environment for residents, workers and visitors consistent with the Ocean Street area plan. • Mixed-Use Visitor-Serving Additional Height District (MU-VA) – The purpose of the MU-VA District is to encourage high-quality visitor-serving commercial development as well as high-intensity residential mixed-use development along Ocean Street, Soquel Avenue, and adjacent thoroughfares, particularly hotels and motels, while accommodating other multistory commercial development in both exclusively commercial and high-density mixed-use developments density within larger buildings oriented toward Ocean Street and Soquel Avenue, and using building height and massing to create a sense of place that promotes a vibrant and pedestrian oriented environment for residents, workers and visitors consistent with the Ocean Street area plan.
• Thoroughfare Commercial District (C-T) – The purpose of the C-T district is to provide for retail, commercial, service, amusement, and transient-residential uses which are appropriate to thoroughfare location and dependent upon thoroughfare travel. • Neighborhood Commercial District (C-N) – The purpose of the C-N district is to provide commercial and service uses near residential areas for the convenience of local residents.
Uses aimed at nearby customers may not require typical development standards such as vehicular parking.
• Beach Commercial District (C-B) – The purpose of the C-B district is to provide for commercial uses which are primarily coastal-dependent in nature and which serve tourists and visitors to the Santa Cruz coastal recreational areas. Also, to provide commodities and services to residents of such areas.
• Professional and Administrative Office District P-A – The purpose of the P-A district is to provide a district for business and professional offices. • General Industrial District I-G – The purpose of the P-A district is to encourage sound industrial development by providing and protecting an environment for such development, subject to regulations necessary to ensure the purity of the land, air, and waters in Santa Cruz County, and the protection of nearby residential, commercial, and industrial uses of the land from hazards, noise, and other disturbances.
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• General Industrial District/Performance District (I-G/PER 2) – The purpose of this General Industrial Performance District is to modify the normal general industrial land use classifications to provide for and encourage appropriate uses for economic development of the Westside industrial lands.
• Public Facilities District (PF) – The purpose of the Public Facilities (PF) District is to designate public buildings and facilities and to ensure that there is a compatible relationship between such uses and the surrounding area. Emergency shelters are principally permitted in the PF district.
• Exclusive Agricultural District (E-A) – The purpose of the E-A District is to preserve in agricultural use land presently best suited to that use and intended for eventual development in other uses pending proper timing for the economical provision of utilities, major streets, and other facilities, so that orderly development will occur. • Floodplain District (F-P) – The purpose and intent of the Floodplain District is to protect the public health, safety, and welfare through regulations of uses in areas which are unprotected from flooding or are required to carry the flood flows of a stream. New construction in the Floodplain District is regulated so that it is protected against damage and located to avoid causing excessive increases in flood heights or velocities. Ranch and farm dwellings incidental to a principal agricultural use require approval of an administrative use permit and a design permit.
• CBD(E) CBD Subdistrict E (Lower Pacific Avenue) – The purpose of the Lower Pacific Avenue Subdistrict Zone is to encourage the development/redevelopment of the Lower Pacific corridor between Laurel and Front Streets as an important linkage between the Downtown and the Beach. Its intent is to extend the commercial and mixed-use developments of the Downtown along Lower Pacific Avenue in a manner that is compatible with and linked to the regional tourist serving uses of the Beach.
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Figure E-5: City of Santa Cruz Zoning Map
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3. Overlay Districts
An overlay district is a regulatory tool that adds special provisions and regulations to an area in the City. An overlay district may be added to a neighborhood or corridor on a map, or it may apply to the City as whole and be applied under certain circumstances. An overlay district may be initiated as a Zoning Map amendment. All proposed developments within the overlay district must comply with the district’s applicable development standards in addition to the Zoning Code standards.
Overlay Districts may be a constraint to the development of housing when they set standards which are more restrictive than the Zoning Code. Below are overlay districts present in Santa Cruz. • R-T(C)/PER Subdistrict C (Beach Commercial/Performance Overlay District) – The purpose of the Beach Commercial Performance Overlay Zone is to identify areas of critical public interest in the Beach Commercial Area, and to provide regulations and standards necessary to achieve planning goals for development and/or redevelopment in a manner which protects neighborhood integrity while stimulating appropriate economic development.
The goal of RTC/PER is to promote the General Plan policy for the development of regional visitor serving uses in the Beach Area while accomplishing the directives of the adopted Beach and South of Laurel Comprehensive Area Plan. The Beach Commercial Performance Overlay zone establishes the requirement that a master plan for the entire 7.5 acre site developed under the Planned Development process before any new buildings are constructed on the site.
• General Industrial District/Performance Overlay Zone (I-G/PER) – The purpose of the Industrial General Performance Overlay Zone is to identify areas with unique site constraints in the city’s industrial areas and to provide the regulations necessary to allow their development and/or redevelopment in a manner which responds to the site’s constraints while stimulating appropriate economic development. • Historic Overlay District (H-O) – The purpose of this Historic Overlay District is to provide a means to preserve and enhance areas of historic, architectural, and engineering significance located within the city of Santa Cruz.
• Coastal Zone Overlay District (CZ-O) – The Coastal Zone District is an Overlay Zone, the boundaries of which are determined by the California Coastal Act of 1976. The purpose of the Coastal Zone is to provide a means of carrying out the policies of the Coastal Act and the city’s Local Coastal Land Use Plan. Within the Coastal Zone is an area which requires further, special consideration. The SP-O Shoreline Protection Overlay District is a subdistrict of the Coastal Zone Overlay, immediately adjacent to the ocean where certain Coastal Act policies are particularly significant and require special review. • Mixed Use Overlay District (MX) – The purpose of the Mixed Use Overlay District is to promote the General Plan policy for mixed use and live work development opportunities within the city, by establishing an overlay zone that may be applied to multifamily residential districts that are located on arterial streets or in areas appropriate for mixed use developments.
• Neighborhood Conservation Overlay District (CON) – The purpose of the Neighborhood Conservation Overlay District is to conserve and enhance the residential quality of life within designated neighborhoods; to stimulate maintenance and reinvestment in
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structures consistent with design guidelines; to facilitate homeownership; and to ensure compatible development along district boundaries.
• West Cliff Drive Overlay District (WCD) – The purpose of the West Cliff Drive Overlay District is to promote quality residential development on and adjacent to West Cliff Drive that positively enhances the public space along West Cliff Drive. The West Cliff Drive Overlay District will preserve, protect and enhance West Cliff Drive as an important social and environmental city and community space; reinforce the residential neighborhood character of the north side of West Cliff Drive; preserve the public view toward the ocean from streets which intersect with West Cliff Drive; and enhance the streetscape by requiring landscaping and modulation of building forms on buildings facing West Cliff Drive. • Mission Street Urban Design Plan Overlay District (MS-O) – The purpose of the Mission Street Urban Design Overlay District is to regulate future development within the Mission Street commercial district. The goal of the overlay district is to enhance the pedestrian environment while providing for long-term revitalization of the corridor. The intent is to create a corridor that is safe, attractive, economically and socially vibrant which in turn will improve the quality of life for Westside residents.
4. Area Plans and Master Plans
Beach and South of Laurel Area Plan
The Beach and South of Laurel Area Plan was adopted in October 1998 to protect the physical and historical assets of the area and plan for future development in a manner that enhances the existing neighborhoods and promotes successful mixing of business with pleasure and natural resources with structures and events.
The Area Plan provides additional regulations which, in 1998, went beyond the City’s review oversight for development. For example, according to the Plan, the zoning of the time did not provide for design review of duplexes or single-family residences on standard lots. As such, the Plan requires a Design Permit in the Beach/SOLA (South of Laurel Area) Planning Area for all residential, commercial, industrial, or mixed-use building additions exceeding 15 percent of the existing floor area; any addition to the front of a building that is visible from a public right-of-way; and any new residential unit(s). The Plan specifies that new single-family units and additions only require a Design Permit with no public hearing, but most other development projects will require a Design Permit with Zoning Administrator review. The following details the principal land use applications that are applicable to the planning area:
• Conceptual Plan Review – Consists of an inter-departmental review and preparation of staff comments. This review allows an applicant to receive early comments and recommendations before committing financial resources to the project. The City recommends all major projects receive a Conceptual Plan Review before a Design Permit application is filed. The review process takes approximately three to five weeks for comments to be received.
• Design Permit – This is the primary land use permit required for most development projects in the Beach/SOLA. A Design Permit may be required for a principally-permitted or conditionally-permitted use and can be processed concurrently with other land use
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applications. The objective of the Design Permit is to promote the public health, safety, and general welfare through the review of architectural and site development proposals.
The total processing time for the application depends on the complexity of the projects but generally takes about six to eight weeks to process. To approve a Design Permit, the Zoning Ordinance requires findings of consistency with the objectives of the Area Plan listed below, as well as the General Plan and general findings of the Zoning Ordinance2:
1. Create a strong sense of place, with edges that have a beginning and an end, and with gateways and intimate residential streets clearly defined.
2. Create a sequence of experiences and views in the landscape that lead to destination points.
3. Enhance entryways to neighborhoods at definable intersections.
4. Encourage distinctive architectural treatment at major intersections to accentuate community gateways.
5. Strengthen the residential quality and character of neighborhoods by improving the appearance of architecture and landscaping.
6. Protect and enhance the unique historic and architectural qualities which are present by establishing historic conservation districts.
7. Maintain the heritage tree preservation program and use the existing heritage trees as a basis for streetscape design.
8. Protect historic resources such as rock walls and stairs. Use existing historic resources as a basis for streetscape design.
9. Expand the economic vitality of Downtown by transforming Beach Street into a “signature street” which will complement and complete the revitalized Pacific Avenue “signature” shopping district. Link these commercial areas.
10. Implement traffic calming measures, such as textured paving and chokers, in Conservation Areas.
11. Implement hierarchical streetscape design that promotes identification of streets as thoroughfares and residential streets. Use a consistent landscape design theme to create “imageable paths” through the community, such as palm tree lined streets which lead to the beach.
12. Implement a street tree program to give scale and definition to the public walkways and promote a visually attractive, comfortable street with reduced heat and glare.
13. Balance the needs of automobiles, pedestrians and bicyclists with wide sidewalks for promenading and pedestrian-oriented activities; narrow roadways to slow traffic; continuous bicycle routes; ample, accessible, at-grade pedestrian crossings or ramps with appropriately textured surfaces; and curbside parking, bike lanes or landscaped parkways to separate pedestrians and moving cars.
14. Provide unobstructed access to all citizens, in compliance with Uniform Federal Accessibility Standards and State Title 24 Accessibility requirements. 2 See Section C.12 of this Appendix E for a list of the Zoning Ordinance’s required findings for Design Permit applications.
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15. Provide public amenities such as benches, planters, lighting, street name and traffic sign posts, trash receptacles, public rest rooms, bicycle racks, public telephones and information kiosks that are functionally and aesthetically integrated into the streetscape for pedestrian comfort, convenience and safety.
16. Improve the pedestrian connection to Downtown by upgrading and maintaining the two existing pedestrian stairways.
17. Provide public art for aesthetics and contemplation.
18. Underground utilities to eliminate visual clutter and provide a more aesthetic streetscape.
19. Implement an area-wide sign program to eliminate visual clutter of oversized and inappropriate signs.
The Design Permit review is applied similarly to a typically development review application; a proposed development is reviewed for consistency with the objectives of the Area Plan. While the plan may require applicants to revise architectural features to create consistency with the objectives of the Area Plan, the changes typically do not increase the cost and timing of approval.
While potential changes typically do not increase the cost and timing of approval, they may affect approval certainty as the findings of consistency with the objectives of the Area Plan listed above may be considered subjective, creating uncertainty for applicants proposing housing in the area.
The City has added Policy Program 1.2b to mitigate potential constraints and improve approval certainty for housing development proposals in the planning area. • Coastal Permit – The entire Beach Area/SOLA planning area is located within the Coastal Zone; the Zoning Ordinance specifies the types of developments which require a Coastal Permit.
• Other Permit Types – Other land use permits which may apply depending on the proposed development project include: Administrative Use Permit, Variance, Conditional Fence Permit, Historic Alteration, Residential Demolition/Authorization, Special Use Permit, Historic Demolition, Reconstruction Permit.
While the Design Permit approval findings include subjective language, the City follows the adopted Objective Standards over the requirements of the Area Plan. Policy Objective 1.2b in the Policy Plan further specifies that the Objective Standards take precedence. As such, it is not considered a constraint to residential development.
Downtown Plan
The Downtown Plan was originally adopted as the Downtown Recovery Plan in 1991 and a significant update to the Plan was adopted by City Council on November 14, 2017 and by the California Coastal Commission on March 8, 2018. This update included increasing development height allowances and these changes accelerated development, especially housing production.
The Downtown Plan was further amended through January 28, 2020, and is currently in the process of being updated to expand the boundary of the Downtown Plan. The intent of the Downtown Plan is to revitalize and strengthen the Downtown District while extending the residential pattern of surrounding residential neighborhoods to the downtown to make downtown
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Santa Cruz a place of commerce, culture, and recreation. The Downtown Plan encourages residential development as a second floor and above use throughout the downtown area. One of the primary principles of the Downtown Plan is to strengthen Downtown Santa Cruz as a place to live. This includes market-rate and affordable housing.
In the 2020 amendment, the Downtown Plan supports the following housing policies established by Vision Santa Cruz: a mix of housing should be developed to serve a range of needs and income groups, the City’s current 15 percent affordability should be maintained, numeric goals for housing should be established for types, market served, and locations, specific locations should be evaluated for housing potential, housing in the downtown should be well-designed, wellmaintained, and well-managed to fit into the new downtown fabric, and reconstructed post-Loma Prieta earthquake SRO housing should be retained.
The Downtown Plan provides additional development standards and design guidelines for new development in the plan area. All new construction in all central business districts of the downtown Santa Cruz area shall require approval of a Design Permit, regardless of type of use.
The central business districts are: Pacific Avenue Retail, Front Street Riverfront, Cedar Street Village, and North Pacific. On top of the Design Permit, the following uses require an AdministrativeUse Permit (AUP) to be considered for ground level use: community care residential facility (Cedar Street Village), multiple dwellings, townhouses, one-family and two-family dwellings, single room occupancy housing, large family day care homes, and supportive and transitional housing. However, the Downtown Plan is currently being updated as the “Downtown Expansion Plan” which may require different standards once adopted.
Mission Street Urban Design Plan
The Mission Street Urban Design Plan corridor area is one of the most heavily traveled corridors in Santa Cruz due to its primary connections to local residential and commercial traffic, State Highway 1, and the University of California, Santa Cruz. The intent of the Mission Street Urban Design Planis to promote a safe, attractive, and both economically and socially vibrant commercial corridor that serves both residents in surrounding neighborhoods and travelers passing through the area. Uses under the City’s Community Commercial (C-C) district are mostly permitted in the Mission Street corridor. However, ground-floor residential uses are not recommended to be permitted. All principal permitted and use permit required uses shall be those of the underlying zone. New development and remodels with a cost of more than $10,000 must be consistent with the Development Standards and Design Guidelines found in the Mission Street Urban Design Plan and require approval of a Design Permit.
Ocean Street Area Plan
The Ocean Street Area Plan covers the 1.2-mile-long north-south corridor of Ocean Street from Highway 17 to San Lorenzo River. The intent of the Area Plan is to create an “activity center” that includes mixed-use development along the major corridor. North of Water Street will provide space for hotels, motels, and mixed-use buildings, while south of Soquel Avenue will feature mixed-use buildings that provide new places to live and new retail stores that benefit neighborhood residents. Areas along the corridor are zoned as Regional Visitor Commercial,
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Mixed-Use Medium Density, Mixed-Use Visitor Commercial, Community Facilities, Low-Medium Density Residential, and Medium-Density Residential.
Most of the Ocean Street Plan Area is within Santa Cruz’s coastal zone, and some projects in this zone require a Coastal Permit. Residential uses, such as community care facilities for seven or more persons, dormitories, daycares, nursing homes, and retirement homes require an Administrative Use Permit. A Design Permit is required for multiple dwellings and dwelling groups containing three or more dwelling units, and single-family homes over 4,000 square feet in the R1-10 zone, 3,500 square feet in the R-1-7 zone, and 3,000 square feet in R-1-5 zone. Residential units are not allowed to be located on any Ocean Street frontage but may be located on the ground floor of mixed-use buildings or on the ground floor of residential buildings on sites where a commercial or mixed-use building occupies the street frontage.
Seabright Area Plan
The Seabright Area Plan was adopted in September 1981 to preserve the small-scale residential character of the area through time, diminish the deleterious impacts of tourism in the immediate neighborhood, and provide policies and programs to guide future development within the Seabright area. The Area Plan was a response to protect the existing neighborhood from additional tourism and traffic impacts from the Santa Cruz Yacht Harbor that opened in 1964. The Area Plan adhered to the General Plan land use designation rather than the existing zoning of mainly singlefamily residential, allowing for duplex, triplex, and other structures that contain four or more dwelling units. However, the majority of the land in the Plan Area is single-family residential.
Western Drive Master Plan
The Western Drive Master Plan’s three main goals are to improve the Western Drive right-of-way, retain the rural character of the area, and protect Moore Creek and Arroyo Seco Canyons while providing public access. The Master Plan aimed to add onto the 1990 General Plan and recommends the City to investigate design alternatives to satisfy the requirements of the Municipal Code while also allowing greater flexibility in site design and to avoid flag lot development.
City -Wide Creeks and Wetlands Management Plan
The City-wide Creeks and Wetlands Management Plan was adopted on February 28, 2006 to better protect, enhance, and manage the City’s riparian and wetland resources and water quality. The Management Plan provides recommendations to locate development away from sensitive watercourse areas and for implementation measures to enable urban and natural areas to coexist. Long-term goals aim to reduce and/or eliminate pollutants discharged to aquatic bodies, improve water quality, improve and restore natural habitat, increase biodiversity, lower water temperatures, and increase public awareness of the value of watershed quality.
The Management Plan categorizes each creek into three types (A, B or C) based on the integrity level of the creek habitat and provides specific setback requirementsthat include a management area, riparian corridor, and development setback. Due to the specific setback and category regulations, a watercourse development permit may be required depending on the location and
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type of new development. Development must meet watercourse development standards intended to protect water quality and riparian habitat.
Eastside Business Area Improvement Plan
The Eastside Business Improvement Plan was adopted in January 1996 to explore opportunities to ensure economic growth, potential, and improvements for the Eastside Business Area. The Plan lays out design guidelines, architectural guidelines, and implementation programs. The Plan divides the area into different zones that have varying development guidelines depending on the focus on each zone. For example, development in the Eastern Entry Zone requires additional landscaping along streetscapes.
Development located in the East Soquel Zone focuses on architecture and low screens to define the roadway as well as using a palette of streetscape elements (walls, plantings, banner system, and lighting patterns) to highlight the auto-related use of the area at the time while retaining a pedestrian-scale ambiance. The Triangle Zone focuses on street and sidewalk widths, such as having the sidewalk a minimum of 10 feet in front of retail stores. The Central Zone focuses on providing safe pedestrian and bicycle circulation and upgrading the architecture and streetscape image along Water Street and Soquel Avenue edge. The Water Street Entry zone focuses on locating parking areas to the rear of parcels and high density uses while also protecting the existing natural vegetation, creek, and cliff of the area. The Water Street Entry Zone includes high density residential, restaurants, and medical or garden offices and avoids uses with high parking requirements. The Main Street West Soquel Avenue focuses on creating a pedestrian-oriented experience by providing adequate off-street parking and pedestrian-conscious streetscapes and walkways. The Main Street at Seabright Prototype focuses on creating seating areas, alcoves in building entries, pedestrian connections, and thematic low walls in front of parking areas. The Main Street at Shopper’s Corner focuses on preserving and enhancing pedestrian vitality by providing street plantings, rear parking areas, landscaping between parking and sidewalk areas, and consolidated parking areas with cross easements.
Moore Creek Corridor Access and Management Plan
The Moore Creek Corridor Access and Management Plan was created to protect the unique natural area of Moore Creek while also making it more accessible to passive recreational uses. The goal is to provide public access in a manner that is compatible with the needs of private property, existing development, and within the constraints of the watershed’s natural setting. Policies and programs aim for new development to not disturb the natural setting, such as development on the bluff tops above Moore Creek or its tributaries are to be set back so that development will not be visible from the creek bed.
Development in the Moore Creek Corridor Plan Area must maintain all post-project runoff at preproject levels through retention or detention basins with controlled releases in order to regulate stormwater discharge into Moore Creek and its tributaries. All new projects will require the installation of erosion control and grading plans. Plans will require that all exposed slopes to be revegetated immediately after grading activities through the installation of permanent vegetation and other erosion control measures. Programs require that land is developed in increments of workable size that can be completed in a single construction season. All earth-moving activities
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between December 1st and March 1st is prohibited. In addition, grading activities shall not begin after September 1st unless grading and plantings are expected to be completed by December 1st.
The Plan prohibits grading, vegetation, removal, construction of structures or alternations of the existing contours within twenty feet of any 30% slope. Specific building envelopes shall be designated on all plans submitted for permit processing.
5. Local Coastal Program and Land Use Plan
The Local Coastal Program (LCP) is a coastal management plan that contains land use, development, public access, and resource protection policies and regulations to implement the California Coastal Act (Coastal Act). The LCP is comprised of a Land Use Plan (LUP) and an Implementation Plan (IP). The LUP serves in conjunction with, and is considered a legislative equivalent to, the City’s General Plan Land Use Element to identify land uses in the Coastal Zone.
The intent of this plan is to provide for land uses and residential density limits that protect coastal resources and public access. The LUP uses the same land use categories and densities asthe Land Use Element land uses listed above.
The Coastal Act is administered by the California Coastal Commission. The City of Santa Cruz encompasses roughly 12.7 square miles, of which approximately 3.6 square miles are located within the Coastal Zone and subject to oversight by the California Coastal Commission. Although the City retains permit authority in most of the Coastal Zone, development projects located within the Coastal Zone require the processing of Coastal Development Permits and are subject to appeal by the California Coastal Commission. This additional level of review and approval may extend the review period of development projects and increase the application and discretionary review costs. In addition, any request to increase residential densities or allow new residential housing opportunities requires the processing of a Local Coastal Program amendment through the California Coastal Commission. The Coastal Land Use Plan and Coastal Commission’s additional review may inhibit development due to the added review time and costs, and uncertainty of approvals; however, this is universal for all coastal communities.
Housing in the Coastal Zone
The City of Santa Cruz uses Sections 24.08.1310 through 24.08.1380 (Residential Demolition/Conversion Authorization Permits) of the Municipal Code to implement Government Code Section 65590 et seq. regarding demolition of residential units within the Coastal Zone and provision of replacement units for displaced low or moderate income households. Between January 1, 1982, and August 11, 2023, approximately 2,567 new residential units were permitted for construction within the Coastal Zone, based on a permit record search. There are 2,267 restricted affordable units within the City, which is entirely in or within three miles of the Coastal Zone. Of the total affordable units, 791 are located within the Coastal Zone. Since January 1, 1982, the City issued demolition permits for a total of approximately 364 residential units within the Coastal Zone, based on a permit records search, resulting in a net increase of approximately 2,203 units. The vast majority of units demolished were single-family homes being replaced by new single-family homes on the same site and were exempt from replacement housing requirements for moderate and low income households. The following projects included demolition of more than two units and required replacement housing for low and moderate income tenants:
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Table E-3: Housing in the Coastal Zone
Address
Date
project
approved
# new units
constructed
Units
demolished
# displaced
low/moderate
income
households
#
low/moderate
replacement
units
constructed
Location of
replacement
units
215 Beach St 8/13/14 0 (new hotel
on site)
44 5 5 401 Pacific
Ave (In coastal
zone)
132 Clay St 9/27/2005 16 on site 6 Unknown* 2 On site
314 Jessie St 1/12/2022 50 on site 14 13 13 On site
136 Leibrandt Ave 11/13/2001 48 on site 47 47 47 124-136 Leibrandt Ave,
505 Leibrandt
Ave, 155
Chestnut St
(all in Coastal
Zone)
716 Seabright Ave 2/22/2005,
5/26/2015 11 on site
3 Unknown* 0** n/a
916 Seabright Ave 9/22/2020 9 on site 3 2 2 On site
890 West Cliff DR 4/21/2010 18 on site 18 n/a*** n/a n/a (18 total units
reconstructed
on site)
*Required by code and conditioned to be implemented. Permit record showed number of affordable units constructed but not number demolished; the number of required inclusionary units resulted the same or more affordable units than those required for replacement units.
**units were demolished and in-lieu fees were paid as allowed by code but approved 12-unit project was not constructed. A new project was approved on the site in 2015 that constructed 11 units. ***Building deemed unsafe and was required to be demolished; therefore project was exempt from replacement requirements.
New building included 18 units, replacing all demolished units.
6. Variety of Houses Permitted
Housing Element Law requires jurisdictions to identify sites to be made available through zoning and development standards to facilitate development of a variety of housing types for all socioeconomic levels of the population. Housing types include single-unit dwellings, multi-unit housing, accessory dwelling units, factory-built housing, mobile homes, employee and agricultural work housing, transitional and supportive housing, single-room occupancy units (SROs), and housing for persons with disabilities. Tables E-3a and E-3b show the various housing types permitted throughout the City of Santa Cruz in zoning districts which permit housing or care facility uses. The City is in compliance with all transparency requirements and all zoning information, development standards, and fees are available on the City’s website and at the Planning Department Counter.
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Table E-3a: Permitted Housing Types by Residential Zoning District Housing Type
Residential Zones
R-S R-1 R-L R-M R-H R-T(A) R-T(B) R-T(C) R-T(D) R-T(E)
Single-Unit Dwellings –
Attached P P P P P AUP P P P AUP
Single-Unit Dwellings –
Detached
P P P AUP P AUP P P P AUP
Multi-Unit Dwellings -- -- P P P P P P P P
Two-Unit Dwellings -- P P AUP AUP P P P P P
Accessory Dwelling
Unit(s) P P P P P P P P P P
Junior Accessory
Dwelling Unit(s) P P P P P P P P P P
Home Occupation P P P P P -- -- -- -- --
Live-Work Units -- -- -- -- -- -- -- -- -- --
Short-Term Lodging SUP SUP SUP SUP SUP SUP SUP P SUP -- Residential Care
Facilities – Limited (6 or
fewer) Licensed
P P P P P P P -- AUP AUP
Residential Care
Facilities – Limited (6 or
fewer) Unlicensed
P P P P P P P -- AUP AUP
Residential Care
Facilities – General (7
or More) Licensed
SUP AUP SUP SUP SUP SUP SUP -- SUP AUP
Residential Care
Facilities – General (7
or More) Unlicensed
SUP SUP SUP SUP SUP SUP SUP -- SUP AUP
Retirement Home SUP SUP P SUP SUP SUP SUP -- SUP AUP
Farmworker Housing -- -- -- -- -- -- -- -- -- --
Supportive Housing P P P P P SUP SUP SUP P --
Transitional Housing P P P P P SUP SUP SUP P --
Emergency Shelters -- -- -- -- -- -- -- -- -- --
Mobile homes P P P P P -- P P P --
Low Barrier Navigation
Centers -- -- -- -- -- -- -- -- -- --
SRO Residential -- -- P P P P P P -- AUP
AUP – Administrative Use Permit
SUP – Special Use Permit
P – Permitted by Right
A – Allowed
“--" – Not Permitted
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Table E-3b: Permitted Housing Types by Mixed-Use Zoning District Housing Type Mixed-Use Zones
MU-M MU-OM MU-OH MU-H MU-VH MU-VA
Single-Unit Dwellings – Attached -- -- -- -- -- --
Single-Unit Dwellings – Detached -- -- -- -- -- --
Multi-Unit Dwellings P P P P P P
Two-Unit Dwellings AUP -- -- AUP
Accessory Dwelling Unit(s) P P P P P P
Junior Accessory Dwelling Unit(s) P P P P P P
Home Occupation P P P P P P
Live-Work Units -- -- -- -- -- --
Short-Term Lodging AUP P -- -- -- --
Residential Care Facilities – Limited (6
or fewer) Licensed P P P P P P
Residential Care Facilities – Limited (6
or fewer) Unlicensed P P P P P P
Residential Care Facilities – General (7
or More) Licensed SUP SUP SUP SUP SUP SUP
Residential Care Facilities – General (7
or More) Unlicensed SUP SUP SUP SUP SUP SUP
Retirement Home P/ -- -- SUP SUP SUP
Farmworker Housing -- -- -- -- -- --
Supportive Housing P P P P P P
Transitional Housing P P P P P P
Emergency Shelters -- -- -- -- -- --
Mobile homes -- -- -- -- -- --
Low Barrier Navigation Centers -- -- -- -- -- --
SRO Residential P P P P P P
AUP – Administrative Use Permit
SUP – Special Use Permit
P – Permitted by Right
A – Allowed
“--" – Not Permitted
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Table E-3c: Permitted Housing Types by Non-Residential Zoning District Housing Types
Non-Residential Zones
C-C C-T C-N C-B P-A I-G I-G/PER2 PF E-A F-P CBD(E)
Single-Unit
Dwellings –
Attached
P AUP P P P -- -- -- -- -- --
Single-Unit
Dwellings –
Detached
-- AUP -- -- AUP -- -- -- P -- --
Multi-Unit Dwellings P P P P P SUP SUP -- -- -- --
Two-Unit Dwellings -- AUP P P P -- -- -- -- -- --
Accessory Dwelling
Unit(s) P P P P -- -- -- -- P -- --
Junior Accessory
Dwelling Unit(s) P P P P -- -- -- -- P -- --
Home Occupation -- -- -- -- -- -- -- -- -- -- --
Live-Work Units -- -- -- -- -- -- -- -- -- -- --
Short-Term Lodging AUP P -- -- -- -- -- -- P -- --
Residential Care
Facilities – Limited
(6 or fewer)
Licensed
P AUP AUP -- SUP -- -- -- -- -- P
Residential Care
Facilities – Limited
(6 or fewer)
Unlicensed
P AUP AUP -- SUP -- -- -- SUP -- P
Residential Care
Facilities – General
(7 or More) Licensed
SUP -- SUP -- SUP -- -- -- SUP -- SUP
Residential Care
Facilities – General
(7 or More)
Unlicensed
SUP -- SUP -- SUP -- -- -- SUP -- SUP
Retirement Home SUP -- SUP -- -- -- -- -- SUP -- --
Farmworker
Housing -- -- -- -- -- -- -- -- P/SUP AUP --
Supportive Housing -- -- -- -- -- -- -- -- -- -- --
Transitional Housing -- -- -- -- -- -- -- -- -- -- --
Emergency Shelters -- -- -- -- -- SUP -- -- P --
Mobile homes -- -- -- -- AUP -- -- -- -- -- --
Low Barrier
Navigation Centers -- -- -- -- -- -- -- -- -- -- --
SRO Residential P P P P -- SUP SUP -- -- -- SUP
AUP – Administrative Use Permit
SUP – Special Use Permit
P – Permitted by Right
A - Allowed
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Single - Family Dwelling
A single-family dwelling is defined as a building which is designed or used exclusively as a residence (home occupations may be allowed), including only one dwelling unit, and may also contain one area meeting the standards of a junior accessory dwelling unit complying with Section 24.16.170 of the Municipal Code. A single-family dwelling is a building or portion of a building including one or more rooms which is/are designed or used as a residence by one family or housekeeping unit, with facilities for living, sleeping, eating, sanitation, and food preparation. A single-family dwelling shall have only one domestic food preparation facility, except that a single-family dwelling may also include one area meeting the standards of a junior accessory dwelling unit. A single-family dwelling shall have interior access between all habitable spaces, except that a junior accessory dwelling unit containing all facilities necessary for living, sleeping, eating, food preparation and sanitation need not maintain interior access to the remainder of the dwelling unit.
Single-family dwellings are permitted as a primary use in R-S, R-1, R-L, R-T(B), and R-T(D) zones and are allowed above commercial uses in C-C and C-N zones and in the R-T(C) zone for lots where the lot size does not allow multi-family development. Single-family dwellings are allowed with an administrative use permit in C-T, R-M, R-H, R-T(A), and R-T(E) zones.
Multi - Family Dwelling
A multiple-family dwelling is defined as a building which is designed or used exclusively as a residence, including three or more separate dwelling units or any combination of dwelling unit types.
Multi-family dwellings are permitted as a primary use in R-L, R-M, R-H, R-T(A), R-T(B), R-T(C), RT(D), AND R-T(E) zones. Multi-family dwellings are also permitted as the primary use in C-C, C-N, C-B, all the Mixed-Use and CDB Subdistrict E zones when located above the first floor of permitted commercial uses. Multi-family dwellings are allowed with an administrative use permit and a design permit in C-C, C-T, C-N, C-B, P-A, I-G, and IG/PER-2 zones.
Accessory Dwelling Unit (ADU)
A dwelling unit accessory to a primary residential use on a parcel of land that meets the requirements of Chapter 24.16, Part 2. An accessory dwelling unit is defined as an attached or detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a parcel with a proposed or existing dwelling. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated. An accessory dwelling unit also includes an efficiency unit (as defined in Section 17958.1 of the California Health and Safety Code) and a manufactured home (as defined in Section 18007 of the California Health and Safety Code).
Accessory dwelling units are principally permitted in all zones that allow residential units as long as there is an existing or proposed residential unit. This is addressed in the Policy Plan to review and, as necessary, amend the ADU ordinance to comply with State law as State law is revised.
Manufactured Home
Manufactured homes are defined as single-family housing units, that are certified under the National Mobile Home Construction and Safety Standards Act of 1974, and which are to be placed
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on a foundation system, pursuant to Section 18551 of the Health and Safety Code or constructed in accordance with the appropriate Uniform Building Code, Plumbing Code, Electrical Code, etc., that has been adopted and is in effect within the City of Santa Cruz. Manufactured homes are allowed in any district that allows single-family homes. A mobile home is a factory built home constructed before July 1976, when the NMHCSSA went into effect. A mobile home may be located in any district where a single-family home is permitted if the mobile home receives a certificate of compatibility. Manufactured homes are allowed in any district that allows singlefamily homes.
Residential Community Care Facility
A residential community care facility is any family home, group-care facility, or similar facility determined pursuant to state law, for twenty-four-hour nonmedical care of persons in need of personal service, supervision, or assistance essential for sustaining the activities of daily living or for the protection of the individual. A small residential community care facility is one which serves six or fewer persons while a large residential community care facility serves seven or more persons.
Small Residential Community Care Facilities are permitted as a primary use in R-S, R-1, R-L, R-M, R-H, R-T(A), RK-T(B), C-C, and CBD(E) zones. Small Community Care Residential Facilities are permitted with an administrative use permit and in R-T(D), R-T(E), C-T, and C-N, and with a special use permit in the P-A zone and all the Mixed-Use zones.
Large Residential Community Care Facilities are permitted with an administrative use permit in the R-1 and R-T(E) zones and with a special use permit in the R-S, R-L, R-M, R-H, R-T(A), R-T(B), RT(D), all the Mixed-use zones, the C-C, C-N, P-A, E-A, and the CBD(E) zones. For these two permits, proposed projects would be subject to objective standards.
Supportive Housing
Supportive Housing is defined as housing with no limit on length of stay, that is occupied by the target population as defined by State Housing Element Law, and that is linked to on-site or off-site services that assist the supportive housing resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community.
Supportive housing is considered a residential use and is subject only to the restrictions and standards that apply to other residential dwellings of the same type (e.g., single-family residence(s) or multifamily development) in the same zone. Supportive housing is permitted as a primary use in R-S, R-1, R-L, R-M, R-H, R-T(D), and all Mixed-Use zones as a single-family home or duplex, R-T(C), R-T(D), and zones. Supportive Housing is allowed with a special use permit in the R-T(A), R-(T)B, R-(T)C, and R-T(D) zones as multifamily dwellings. Policy Objective 3.4d is included in the Policy Plan to continue facilitating 100 percent affordable supportive housing projects that comply with AB 2162.
Transitional Housing
Transitional Housing is defined as buildings configured as rental housing developments but operated under program requirements that call for the termination of assistance or recirculation of the assisted unit to another eligible program recipient at some predetermined future point in
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time, which shall be no less than six months. Transitional Housing is considered a residential use and is subject only to the restrictions and standards that apply to other residential dwellings of the same type (e.g., single-family residence(s) or multi-family development) in the same zone.
Transitional Housing is permitted as a primary use in R-S, R-1, R-L, R-M, R-H, R-T(D), and all MixedUse zones as a single-family home or duplex, R-T(C), R-T(D), and zones. Transitional Housing is allowed with a special use permit in the R-T(A), R-(T)B, R-(T)C, and R-T(D) zones as multifamily dwellings.
Emergency Shelter
An emergency shelter is defined as housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less by a homeless person. No individual or household may be denied emergency shelter because of an inability to pay. The City’s Zoning Code states that an emergency shelter must meet the standards set forth in Section 24 Part 17 “Emergency Shelters” and must be approved ministerially and without discretionary review or a public hearing when proposed within a permitted zone. Applicants must submit a development application to construct an emergency shelter in the Public Facilities District (P-F) and are subject to objective development standards and management standards. All new construction must comply with the commercial and industrial land use regulations under Section 24.12.1620 Development Standards for Emergency Shelters in the City’s Zoning Code. The emergency shelter requirements have been analyzed and determined to be objective, mitigating potential constraints to the development of emergency shelters in the City. While objective requirements have been established for emergency shelters, the City understands that State law evolves. Santa Cruz is committed to reviewing emergency shelter requirements periodically and making relevant amendments in response to changes in State law.
An amendment to the Public Facilities District (P-F) during the 5th cycle established emergency shelters as a permitted use within P-F zones. The Public Facilities District (P-F) also allows Farmworker Housing, in compliance with AB 2339. General Industrial District (I-G) also allows emergency shelters with a special use permit. The City’s Zoning Code does not specify parking requirements for emergency shelters. This is included in the Policy Plan to update parking requirementsto include parking requirements for emergency sheltersin compliance with AB 139 and AB 2339, which states jurisdictions may only apply objective standards to proposed emergency shelters that provide sufficient parking to accommodate emergency shelter staff.
The P-F zone is appropriate to accommodate emergency shelters as they are typically located along major arterial roadways with access to employment centers and near stores and other services. There are currently over 100 acres of land zoned P-F, including sites between .2 and 17.5 acres in size. It is estimated that there are approximately 30 sites zoned P-F which are between .5 to 10 acres which are nonvacant but have characteristics that make the sites viable for the development of an emergency shelter. Many of the sites zones P-F have large areas dedicated for parking which can feasible be subdivided to allow for the development of emergency shelters.
Approximately 30 of the sites between .5 and 10 acres in size have sufficient capacity to accommodate a shelter of approximately 20 beds if one is proposed.
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Figure E-6 shows the location of hazardous waste generators in the City. Figure E-2 shows P-F zoned parcels are fairly scattered throughout the City; the I-G zoning district is solely located in two areas of the City. Within these two zoning districts are seven hazardous waste generators listed below. These generators are light industrial uses, research labs, and grocery stores that do not create an environment unfit for human habitation. In fact, existing residential neighborhoods are currently located within close proximity.
• Area 1: Costco Wholesale, Banfield Pet Hospital, and University of California Santa Cruz • Area 2: Santa Cruz Biotechnology Inc., Santa Cruz Nutritionals, Harmony Foods Corporation, and University of California Santa Cruz
Figure E-6: Hazardous Waste Generators
Source: CalEnviroScreen 4.0 (Accessed December 6, 2022) Additionally, the City has an extensive bus network that connect the two zoning districts permitting emergency shelters to the rest of the City and nearby communities. The two zoning districts permitting emergency shelters are evenly distributed throughout the City, allowing easy, convenient, and equitable access to transportation, services, and resources in the City. Persons residing at emergency shelters in these zones, or persons seeking to reach those emergency shelters, can find quick transit options. The bus fare within Santa Cruz County for one ride is $2 for adults and children; students with a valid UCSC student ID may ride for free. Santa Cruz METRO also implements a Free Fare Program for COVID-19 vaccine appointments and for legally blind riders. In 2019, Santa Cruz METRO implemented the Free Fare Program for legally blind riders to resolve concerns raised by visually impaired riders who had difficulty using the ticket vending machines. Seniors 62 or older and persons with disabilities are also eligible for discounted fares and passes. These programs may benefit persons seeking to access emergency shelters or areas within the County from the shelters.
1 2
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Figure E-7: Santa Cruz METRO System Map
Source: Santa Cruz METRO Fall 2022 Bus Rider’s Guide
Agricultural and Employee Housing
California Health and Safety Code Sections 17021.5 and 17021.6 requires agricultural housing to be permitted by-right, without a conditional use permit (CUP), in single-family zones for six or fewer persons and in agricultural zones with no more than 12 units or 36 beds. This is included in the Policy Plan to ensure the City’s development standards comply with these requirements.
Low-Barrier Navigation Centers
Low-barrier navigation centers are defined as a housing first, low-barrier, service-enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. Low-barrier navigation centers are required as a use by-right in areas zoned for mixed uses and nonresidential zones permitting multifamily uses if the center meets specified requirements. The Santa Cruz Zoning Code does not address low barrier navigation centers by definition. This is included in the Policy Plan to adopt and implement procedures and regulations to process low-barrier navigation centers, including establishing a ministerial approval process.
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Single Room Occupancy (SRO)
Single Room Occupancy (SRO) units are clusters of residential units of a smaller size than normally found in multi-family development within a residential hotel, motel, or facility providing sleeping or living facilities. Kitchen or cooking facilities may be provided within the unit or shared within the housing project. The net area of a SRO unit may range from a minimum of one 150 square feet to a maximum of 400 square feet, with the average unit size being no greater than 345 square feet. SROs of 220 square feet or more must have their own kitchen and a full bathroom. SROs development projects must also comply with the underlying standards of the zoning district in which they are located, except for requirements on the minimum lot area per dwelling unit.
SROs are principally permitted in all mixed-use zones and the following zones: R-L, R-M, R-H, RT(A), R-T(B), R-T(C), C-C, C-T, C-N, C-B.
In March 2022, the City adopted Flexible Density Units (FDU) to give developers more options for unit sizes and expand the housing stock options in the downtown area and along Soquel Avenue; the measure is currently undergoing review with the Coastal Commission and will go into effect within 30 days once approved. Three housing types will be further facilitated through this measure:
• Single Room Occupancy (SRO): Rental studios measuring 150 to 400 square feet • Small Ownership Unit (SOU): Studio or 1-bedroom units measuring 400 to 650 square feet with at least 50 percent of units for-sale.
• Flexible Density Unit (FDU): Small family and single-parent household units measuring 220 to 650 square feet available for either rent or sale.
FDUs will not count towards density and developments with FDUs may provide 100 percent residential use in mixed-use zones without having to provide ground floor commercial. The City is committed to facilitating the development of smaller affordable units to address a wide range of the community’s housing needs – from seniors looking to downsize, lower income households, to small families.
7. Residential Development Standards
The City’s Zoning Code establishes regulations and development standards for each residential district to provide a range of housing types. All information regarding the City’s zoning and development standards are available to the public on the Santa Cruz City website pursuant to Government Code §65940.1 (a)(1)(B).
These standards and regulations are intended to create, preserve, and enhance residential neighborhood sites for a range of development types and lifestyles. The residential zoning guidelines and development standards are intended to:
• Provide appropriately located areas for a variety of residential neighborhoods to meet the housing needs of the Santa Cruz community;
• Provide for a range of housing types and housing alternatives for all economic segments of the community;
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• Encourage the provision of attractive and stimulating surroundings that will make Santa Cruz’s residential areas enjoyable places to live; and
• Protect residential areas from the intrusion of incompatible uses or activities which may impair the livability of a neighborhood.
The City established development standards to regulate development throughout the City through its Zoning Code. The development standards include minimum requirements for lot size and lot widths and maximum construction standards for height, lot coverage, and density. Table E-4below provides the standards applicable to each zoning district in Santa Cruz that permits residential development.
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Table E-4: Santa Cruz Development Standards - Dimensions Zone
Min. Dimensions
(Sq. Ft.) Min. Yard Setbacks (Feet) Max.
Height
(Feet)
Min.
Open
Space
per Unit
(Sq. Ft.)
Lot Size1 Lot
Width1 Front Side 2 Rear
RS-10A (SFR) 10 ac 250 403 25 30 30 n/a
RS-5A (SFR) 5 ac 200 403 203 30 30 n/a
RS-2A (SFR) 2 ac 150 403 203 30 30 n/a
RS-1A (SFR) 1 ac 100 403 153 30 30 n/a
R-1-10 10,000 70 253 202 30 30 n/a
R-1-7 7,000 70 203 142 25 30 n/a
R-1-5 5,000 50 203 102 20 30 n/a
R-L (SFR
detached) 5,000 50 15 5 10 30 n/a
R-L (2+ units) 5,500 50 15 5 10 30 400
R-M duplex 4,400 50 15 5 10 30 n/a
R-M (3+ units) 5,500 65 15 5 10 35
400
(200
studios/
1 beds)
R-H (duplex) 4,000 50 15 5 10 30 n/a
R-H (3+ units) 5,000 50 15 5 10 48 250
R-T(A) (SFR
detached) 5,000 50 15 5 10 30 n/a
R-T(A) (duplex) 5,000 50 15 5 10 30 n/a
R-T(A) (3+ units) 8,000 65 15 5 10 36 400
R-T(A) (Other) 8,000 65 15 5 10 36 n/a
R-T(B) (SFR
detached, duplex) 5,000 50 15 5 10 30 n/a
R-T(B) (3+ units,
other) 8,000 65 15 5 10 36
400 (n/a
for
other)
R-T(C) Subdistrict
C (SFR Detached) 5,000 50 0 6 or 1 ft/2 feet height 30 n/a R-T(C) Subdistrict
C (Duplex)
5,000
(2,500/
du)
50 0 6 or 1 ft/2 feet height 30 n/a
R-T(C) Subdistrict
C (3+ units)
8,000
(1,450/
du)
65 0 6 or 1 ft/2 feet height 36 400
R-T(C) Subdistrict
C (Other) 5,000 65 0 6 or 1 ft/2 feet height 36 n/a
R-T(D) (SFR
Detached) 3.000 40
15 on 2nd
St.
10 on Cliff
St.
6 or 1 ft/2 feet height 22 n/a
R-T(D) (Duplex)
3,600
(1,800/
du)
40 4 22 400
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R-T(D) (Triplex)
7,200
(1,600/
du)
80 1st Story: 54
2nd Story:
104
Other Uses:
104
4 1st Story:
10 2nd Story/
Other
uses: 15
22 400
R-T(D) (4+ units)
8,000
(1,600/
du)
80 4 30 400
R-T(D) (Other) 8,000 80 4 30 n/a
R-T(E) (Duplex)
3,400
(1,700/
du)
40 1st Story: 5
2nd Story:
10 3rd Story:
105
1st Story:
3 2nd Story:
5 3rd Story:
55 1st Story:
10 2nd Story:
10 3rd Story:
105
22 400
R-T(E) (3+ units)
6,800
(1,450/
du)
65 22 400
R-T(E) (7+ units)
10,200
(1,200/
du)
80 36 400
R-T(E) (Other
Uses) 10,200 80 36 n/a
1. Standard. Minimum lot area (net).
2. Interior side yard, both yards total.
3. For any attached or detached garage or carport fronting on a front of exterior side property line, the setback shall be a minimum of twenty feet from the property line or setback, whichever is greater.
4. For any attached or detached garage or carport fronting on a front or exterior side property line, the setback shall be 20 feet.
5. Front and rear yards are subject to building envelope, per SCMC Section 24.0.640 subsection (2)(a).
Source: City of Santa Cruz Zoning Code
Yard Requirements
The Santa Cruz Zoning Code defines a yard as an open space, other than a court, on the same lot with a building. Open space is occupied and unobstructed from the ground to the sky. The yard extends the full width of the lot and is measured perpendicular from the line, on a horizontal plane, to the wall of the facility including the front yard, side yard and rear yard, or space between structures. The yard requirements, as established in Table E-4 above, are not considered a constraint to development of housing and are similar to those of the region. Alone and cumulatively, yard requirements do not impact cost, supply, or the ability to achieve maximum densities without exceptions.
Lot Coverage and FAR
The Santa Cruz Zoning Code defines lot coverage as the percentage of total site area covered by the main building and all accessory buildings, open or enclosed. Lot coverage is regulated in order to avoid nuisances from inappropriate and excessive massing or density in a particular zoning district. Floor area is defined as the entire floor area of a building. The floor area includes not only the ground floor area but also any additional stories or basement of the building. All horizontal dimensions shall be taken from the exterior faces of walls, including enclosed porches. The lot coverage and FAR requirements, as established in the Zoning Code, are not considered a constraint to development of housing and are similar to those of the region. Alone, lot coverage and FAR requirements do not impact cost, supply, or the ability to achieve maximum densities without exceptions. Cumulatively with other land use controls, lot coverage requirements may be a
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constraint to development in the R-H and R-T(C) zones as well as other higher density zones, depending on specific requirements. The City has added Policy Program 1.3g to review development standards and adopt changes with the ultimate goal of achieving maximum densities without exceptions.
Maximum Building Hei ghts
The building height refers to the vertical distance above the average finished grade and is measured to the midpoint of roof planes. Setting limits to the height of buildings avoids bulking and potential nuisances on neighboring properties – relating to privacy and/or sunlight and shade.
This requirement also ensures a compatibility and similar aesthetic amongst uses. The height requirements, as established in Table E-4 above, are not considered a constraint to development of housing and are similar to those of the region. Alone, heightrequirements do not impact cost, supply, or the ability to achieve maximum densities without exceptions. Cumulatively with other land use controls, height requirements may be a constraint to development, specifically in higher density residential zones. The City has added Policy Program 1.3g to review development standards and adopt changes with the ultimate goal of achieving maximum densities without exceptions.
Open Space
The Santa Cruz Zoning Code defines open space as outdoor area on the ground, roof, balcony, deck, or porch which is designed and used for outdoor living, recreation, pedestrian access, or landscaping. Open space does not include off-street parking, driveway areas, or areas with a slope greater than ten percent or a dimension of less than ten feet. The term may include private balconies if their smallest dimension is four linear feet or more. Alone and cumulatively, open space requirements do not impact cost, supply, or the ability to achieve maximum densities without exceptions.
Parking Standards
Sufficient off-street parking must be provided to avoid street overcrowding. This is maintained through the establishment on parking requirements, which fluctuate depending on the land use/housing type and the number of bedrooms. Table E-5 provides the parking requirements specific to the City of Santa Cruz. Parking standards in Santa Cruz are similar, and less in certain instances, to those of the neighboring communities. While parking standards are not currently considered a constraint to housing development, the Chapter 2: Policy Plan establishes actions for the City to reduce the requirements with the ultimate goal of eliminating parking minimums citywide.
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Table E-5: Required Parking Spaces for Residential Uses Residential Uses Minimum Number of Spaces Required per Unit Number of Bedrooms Efficiency (Studio) One Two
Single-Family Dwelling (including
townhomes), houseboat, duplex,
triplex, mobile homes,
community housing projects,
other multifamily dwelling units.
1 1 2
Community Housing Projects,
Townhomes, and Multifamily
Projects of 5 units or more
In addition to meeting above residential parking requirements, guest parking spaces shall be provided at a rate 10% of the above standards.
Fractional spaces will be rounded up to the next whole number.
Accessory Dwelling Units No off-street parking shall be required for any ADU with exceptions found in Zoning Code Section 24.12.240.
Senior Housing (congregate care,
senior apartments, subsidized
housing, residential care)
1 for each 3 dwelling units intended for separate occupancy.
Emergency Shelters One space per staff member plus one space per six occupants allowed at maximum capacity.
Lodging, rooming houses, and
bed-and-breakfast inns 2 spaces, plus 1 for each bedroom that is rented.
SRO 0.75 space for units less than 300 square feet.
1 space for units 300 square feet or more.
Construction costs can be higher for covered parking, parking structures, and/or below ground parking; however, the City’s parking standards do not require covered parking for residential developments. The required parking standards are consistent or lower than neighboring jurisdictions, but the cost of land in the City is more expensive than some surrounding jurisdictions.
The cost of developing parking based on the City’s requirements for multi-family housing can be considered a constraint to the development of housing. However, developers may receive concessions or incentives in the form of parking reduction for the development of housing affordable to low- and very low-income households as provided in the State Density Bonus Law section. In addition, recent State law prohibits local jurisdictions from requiring parking for residential projects that are within one-half mile of a major transit stop, which includes large portions of the City.
8. Objective Zoning Standards
On November 15, 2022, the Santa Cruz City Council voted to adopt Objective Standards for Multifamily Housing. As of April 2023, the standards are in effect for all new multifamily development proposals located outside the coastal zone; they are anticipated to go into effect in the coastal zone mid-2023. The Objective Standards create many new design standards and are more specific than most existing standards. Additionally, the proposed new zone districts set various building standards, such as heights, setbacks, and open space requirements, that the City can use to control development, where these standards either do not exist or State law currently overrides the City’s standards. The Objective Standards project makes it possible for the City to require architectural features and building materials that reflect the existing mix of characteristics that give Santa Cruz its unique sense of place.
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The Objective Standards work together with other regulations in each zone district to control new development in a way that will enhance the existing character of different types of neighborhoods.
Exclusively residential development is subject to different standards than areas where mixed-use development (residential and commercial development together in one building or on one property) is planned. This differentiation between districts is part of the effort to maintain a distinctly Santa Cruz eclecticism as new housing is built over the coming decades. Reflecting this value is important because it was mentioned in so many of the City’s community engagement events. Other community values like dark-sky lighting, seeking ways to keep more existing trees as new development occurs, providing height transitions to adjacent low-density neighborhoods, and creating new pedestrian connections through large development sites are also included in the Objective Standards based on community input.
New Mixed-Use Zone Districts
An important part of implementing the City's 2030 General Plan is creating zone districts that accommodate the development intensities planned for in that document. Recent changes to California State Law have required the City to begin implementing these development intensities, and the new zone districts now create more clarity around the development standards that apply to conforming development applications. (Applications using the State Density Bonus Law will continue to have the option to request waivers of site standards, as is currently the case.) The new zoning districts adopted in November 2022 and their locations include those listed below.
Permitted uses for each of the six new zones are listed in Table E-3b. • Mixed-Use Medium Density (MU-M) – Mission Street
• Mixed-Use High Density (MU-H) – Soquel Avenue/Branciforte Drive/Water Street • Mixed-Use Districts for Ocean Street:
o Mixed-Use Ocean Medium Density (MU-OM)
o Mixed-Use Ocean High Density (MU-OH)
o Mixed-Use Visitor High Density (MU-VH)
o Mixed-Use Visitor Additional Height (MU-VA)
9. Housing for Persons with Disabilities
Both the Federal Fair Housing Amendment Act (FHAA) and the California Fair Employment and Housing Act require local governments to make reasonable accommodations (that is, modifications or exceptions) in their zoning laws and other land use regulationsto afford disabled persons an equal opportunity to housing. State law also requires cities to analyze potential and actual constraints to the development, maintenance, and improvement of housing for persons with disabilities.
Housing for persons with disabilities may include independent housing units with access to supportive services or facilities (licensed or unlicensed) that provide care and services. The following lists housing types for persons with disabilities and the zones in which they are permitted:
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• Licensed Residential Care Facilities (6 or fewer residents) – permitted by-right in the R-S, R-1, R-L, R-M, R-H, R-T(A), R-T(B), C-C, CBD(E), and all mixed-use zones. Permitted with approval of a AUP permit in the R-T(D), R-T(E), C-T, and C-N zones. Permitted with approval of a SUP permit in the P-A zone.
• Unlicensed Residential Care Facilities (6 or fewer residents) – permitted by-right in the RS, R-1, R-L, R-M, R-H, R-T(A), R-T(B), C-C, CBD(E), and all mixed-use zones. Permitted with approval of a AUP permit in the R-T(D), R-T(E), C-T, and N-N zones. Permitted with approval of an SUP permit in the P-A and E-A zones.
• Licensed Residential Care Facilities (7 or more residents) – permitted with approval of an SUP permit in the R-S, R-L, R-M, R-H, R-T(A), R-T(B), R-T(D), C-C, C-N, P-A, E-A, CBD(E), and all mixed-use zones. Permitted with approval of a AUP permit in the R-1 and R-T(E) zones. • Unlicensed Residential Care Facilities (7 or more residents) – permitted with approval of an SUP permit in the R-S, R-1, R-L, R-M, R-H, R-T(A), R-T(B), R-T(D), C-C, C-N, P-A, E-A, CBD(E), and all mixed-use zones. Permitted with approval of a AUP permit in the R-T(E) zone.
• Supportive Housing – permitted by-right in the R-S, R-1, R-L, R-M, R-H, R-T(D) and all mixeduse zones. Permitted with approval of an SUP permit in the R-T(A), R-T(B), and R-T(C) zones. • Transitional Housing – permitted by-right in the R-S, R-1, R-L, R-M, R-H, R-T(D) and all mixed-use zones. Permitted with approval of an SUP permit in the R-T(A), R-T(B), and RT(C) zones.
Reasonable Accommodations
Reasonable accommodation in the land use and zoning context means providing individuals with disabilities, or developers of housing for people with disabilities, flexibility in the application of land use and zoning and building regulations, policies, practices, and procedures, or even waiving certain requirements, when it is necessary to eliminate barriers to housing opportunities. For example, it may be reasonable to accommodate requests from persons with disabilities to waive a setback requirement or other standard of the Zoning Code to ensure that homes are accessible for the mobility impaired. Whether a particular modification is reasonable depends on the circumstances.
The Santa Cruz Zoning Code does not establish a Reasonable Accommodations application or formal review process; however, it allows for deviations from design permit standards and waives setback requirements for persons with physical challenges. A policy objective is included in the Policy Plan to establish formal reasonable accommodations procedures and make information readily available for the public.
Definition of Family
Under the right of privacy, the California Constitution prohibits a restrictive definition of “Family” which limits the number of unrelated persons and differentiates between related and unrelated individuals living together. The City’s Zoning Code defines “Family” as “an individual, or two or more persons living together and occupying a dwelling which is not a rooming house, lodging house, or residential institutional use.” This definition does not limit the number of unrelated persons, nor does it differentiate between related and unrelated individuals living together.
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10. Local Ordinances
An ordinance is a law passed by a municipal government. Local ordinances are enacted to maintain or improve public safety, health, and general welfare. Locally adopted ordinances such as inclusionary ordinances or short-term rental ordinances may directly impact the cost and supply of residential development. Impacts may create governmental constraints to the development of housing and may hinder the City from meeting its share of the regional housing need and the need for housing for persons with disabilities, supportive housing, transitional housing, and emergency shelters.
Inclusionary Housing Program
Inclusionary Housing program are local zoning ordinances which either mandate or encourage housing developers to include a specified percentage of units affordable to lower and moderateincome households. Inclusionary Housing programs bring affordable housing to market and increase types of housing available to people of different income levels.
In 1979, Measure O, a voter initiative to require a greenbelt around the City and to require developers to include a percentage of affordable housing in all housing developments was approved by the voters. The City of Santa Cruz adopted an Inclusionary Ordinance to codify the affordability requirements of Measure O. The Inclusionary Housing Program is designed to:
• Enhance the public welfare and assure that further housing development contributes to the attainment of the City’s housing goals as described in the Housing Element of the General Plan, by creating, preserving, maintaining, and protecting housing affordable for households of very low-, low- and moderate-income;
• Assure that the remaining developable land in the City’s planning area is utilized in a manner consistent with the City’s housing policies and needs; • Improve the feasibility of rental housing development within the City; • Meet the City’s share of regional housing needs while making housing available to all income levels;
• Assure compatibility between market rate units and inclusionary units.
The Inclusionary Housing Program may work in conjunction with the Density Bonus Ordinance. For a development project subject to the inclusionary requirements and applying for a Density Bonus, the highest affordable requirement of the two would be applied. For example, if ten low-income units are required through the City’s inclusionary program and two very low-income units are required for the Density Bonus – the development would then provide eight low-income units (in perpetuity) and two very low-income units, which upon expiration(typically about 55 years)would then convert to low-income units.
Applicability
The Inclusionary Housing Program applies to all new residential developments that create two or more new and/or additional dwelling units or FDU or SRO units at one location by construction or alteration of structures, or creating two or more lots through approval of a parcel mapor tentative map.
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Residential developments that are exempt from the Inclusionary Housing Program requirements are detailed in the City’s Zoning Code Section 24.16.020 and include:
• Residential developments developed pursuant to the terms of a Development Agreement executed prior to the effective date of the ordinance codified in chapter 24.16 of the Municipal Code; provided, that such residential developments comply with any affordable housing requirements included in the Development Agreement or any predecessor inclusionary housing requirements in effect on the date the Development Agreement was executed.
• Residential developments for which a complete application was filed with the City prior to the effective date of the ordinance codified in in chapter 24.16 of the Municipal Code; provided, that such residential developments comply with any predecessor inclusionary housing requirements in effect on the date the application for the residential development was deemed complete.
• Residential developments if exempted by California Government Code Section 66474.2 or 66498.1; provided, that such residential developments comply with any predecessor inclusionary housing requirements in effect on the date the application for the residential development was deemed complete.
• Residential developments replacing dwelling units that have been destroyed by fire, flood, earthquake, or other acts of nature, so long as no additional dwelling units are created by the residential development; and provided, that such residential developments comply with any inclusionary housing requirements previously applied to the dwelling units being replaced.
• Accessory dwelling units.
• Rental residential developments with two to four dwelling units.
Developers of ownership residential developments of two to four dwelling units designed and intended for residential occupancy must either 1) make one inclusionary unit available for sale at an affordable ownership cost, 2) make one inclusionary unit available at an affordable rent for lowincome households, or 3) pay an in-lieu fee calculated pursuant to section 24.16.030 of the Santa Cruz Municipal Code.
Developers of ownership or rental residential developments consisting of five or more dwelling units must make 20 percent of the dwelling units available for sale or rent to low- and moderateincome households at an affordable ownership cost. In a rental residential development comprised of SRO units, 20 percent of the units must be made available for rent to very lowincome households at an affordable rent.
By mutual agreement by the developer, the Planning and Community Development Director, and the Economic Development Director, the percentage of inclusionary units may be increased in exchange for reduced parking and/or other development requirements. If the developer agrees to make at least 40 percent of the residential project available for rent at an affordable rate to low-income households, in addition to reduction of development requirements, by mutual agreement by the developer, the Planning and Community Development Director, and the Economic Development Director, the City may also provide financial incentives to increase the
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number of inclusionary units in a project. The inclusionary requirements have participated in the City’s success in meeting its 5th Cycle RHNA. Appendix G provides a list of projects currently in the pipeline which also include inclusionary units.
Alternatives
As part of the first approval for any residential development subject to the inclusionary housing requirements an applicant may choose to use an alternative method of compliance. For all alternative methods of compliance, the approval body must make the following findings: 1) the proposal for the alternative method of compliance is consistent with the Santa Cruz General Plan and all of its elements, and 2) the proposal conforms to the standards established for inclusionary units in Section 24.16.025 of the Municipal Code, unless the alternative method does not require compliance with that section.
The alternative options include:
• Off-site construction of inclusionary units
• Conversion of existing market-rate units or upper floors of commercial/office buildings to inclusionary units
• Transfer of credits
• In-lieu housing fees under the following circumstances:
o For all ownership residential developments or residential subdivisions that would create two, but no more than four, additional dwelling units or parcels at one location, the applicant may elect to pay an in-lieu fee for the fraction of an inclusionary unit equal to 0.15 times the number of units or parcels in the residential development or subdivision reduced by 60 percent. o For ownership residential developments where any dwelling units are offered for sale, or where all dwelling units are offered for rent, but where a subdivision map has been recorded to create parcels containing single dwelling units, the applicant may elect to pay an in-lieu fee for any fraction of an inclusionary unit equal to 0.7 or less.
o For rental residential developments that would create five, but no more than ten, additional dwelling units at one location, the applicant may elect to pay an in-lieu fee for any inclusionary unit as required by Section 24.16.020(5). o For residential developments that the approval body determines are assisted living units, co-housing developments, congregate living units, or live/work units the applicant may elect to pay an in-lieu fee for the entire inclusionary unit requirement.
o Except as provided in subsection (6)(c), for all other residential developments creating five or more units, in-lieu fees may be paid for all or a portion of the required inclusionary units at the discretion of the approval body if the approval body makes the findings required by subsection (2), accompanied by a staff report with a recommendation from the planning and community development director and the economic development director, except that conformance with Section
24.16.025 is not required. The approval body must also find that either the in-lieu
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fees will provide for the greater of one affordable unit or at least thirty percent more inclusionary units or affordable housing than would be provided by the onsite provision of inclusionary units by providing matching funds for state or federal grants or otherwise. It is the city council’s intent that, except as provided in subsections (6)(a)(1) through (4), in-lieu fees be infrequently approved. • Land dedication
• Congregate living units or assisted living units
• Rental to tenant-based subsidy holders
• Employer sponsored housing
• Other alternative compliance methods upon approval or conditional approval if the approval body finds that 1) such alternative compliance will provide as many or more affordable units at the same or lower income levels; and 2) financing has been committed to ensure that the affordable units will be constructed.
Short- Term Rental (STR) Ordinance
Short-term rentals are commonly defined as an accessory use of a primary residence for the purposes of providing temporary lodging for compensation for up to 30 days or less. The purpose of the Short-Term Rental (STR) Ordinance is to establish regulations, standards, and a permitting process governing the renting or leasing of privately owned, visitor-serving dwelling units on a short-term basis. STRs are often established to safeguard residents by ensuring that short-term rental activities do not threaten the character of neighborhoods and that such short-term rental activities do not become a nuisance, or threaten the public health, safety, or welfare of neighboring properties. In addition, limits on the number of short-term rentals minimizes the impacts on housing by ensuring that a large number of housing units, both rental and ownership, are not removed from the housing market.
The City implements the STR Ordinance through Chapter 24.12, Part 18 of the Municipal Code. All owners of STR units are required to obtain a STR permit and Transient Occupancy Tax (TOT) Certificate to use their property for STR purposes. Owners of STRs that were legally operating before the STR Ordinance went into effect were eligible to apply for short-term rental permits. In addition to the approximately 300 existing STRs, 250 additional owner-occupied/hosted STR permits were made available on a first come, first served basis. Properties with a single-family home and an ADU are not approved to receive an STR permit for either the single-family home or the ADU.
Density Bonus Ordinance
In accordance with California State Government Code Section 65915, a housing development may increase the number of units above the maximum permitted and/or receive reductions in development standards in exchange for reserving units for very low-, low-income, and/or moderate-income households or for seniors. These units must be restricted to their level of affordability for at least 55 years through a deed-restricted affordable housing covenant. In addition, the City’s Density Bonus Ordinance contains some provisions not included in State Density Bonus law. The Density Bonus Ordinance is part of the City’s Municipal Code and is available to the public in Chapter 24.16 Affordable Housing Provisions. According to the City’s
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Zoning Code, qualifying housing developments that satisfy at least one of the following categories or land dedication provisions listed below will be granted a 20 percent density bonus:
• At least 10 percent of total units of housing development for lower income households; • At least 5 percent of total units of a housing development for very low- or extremely lowincome households; • At least 10 percent of the total dwelling units in a common interest development, as defined in Civil Code Section 4100, are for households; and • A senior citizen project or mobile home park that limits residency based on age requirements for housing older persons in compliance with Civil Code Section 51.3, 798.76, or 799.5. (Senior citizen projects shall be restricted to occupancy by senior citizens in perpetuity.)
AB 2345 states that all jurisdictions in California are required to process projects proposing up to 50 percent additional density provided those projects produce the additional below market rate (BMR) units in the “base” portion of the project, unless the locality already allows a bonus above 35 percent. The bill also lowered the BMR thresholds for concessions and incentives for projects with low-income BMRs. As of 2023, Government Code Section 65915 authorizes an applicant to receive two incentives or concessions for projects that include at least 17 percent of the total units for lower‐income households, at least 10 percent of the total units for very low‐income households, or at least 20 percent moderate‐income households in a development in which the units are for sale. It also allows an applicant to receive up to three incentives or concessions for projects that include at least 24 percent of the total units for lower income households, at least 15 percent of the total units for very low‐income households, or at least 30 percent for persons or families of moderate‐income households in a development in which the units are for sale. This is included in the Policy Plan to update the Ordinance in compliance with State law updates.
Growth Management Measures
Growth management measures may be adopted by jurisdictions or voted into law by a vote of the people to control local growth. Requiring voter approval for legislative actions, such as General Plan or Zoning Code amendments which increase density, floor area ratio (FAR), or building height, would be considered a growth control measure and may constrain housing production, as it would decrease approval certainty and increase cost. The same could be true if a vote of the people were to be required for uses over a specified square footage or unit count.
Through a growth management measure such as those noted above, a vote could occur at a General Election or a Special Election, both of which would result in timing delays and additional costs. A Special Election typically costs over $200,000, based on the City’s cost to have an election conducted by the County Elections Department. If the vote were held during a General Election, the cost may only slightly decrease, with the costs typically starting at about $170,000. Given this process, cost, and overall approval uncertainty, housing developers and property owners may be discouraged from pursuing housing developments in the jurisdiction if a vote is necessary before the project can be approved, thereby constraining the production of both market-rate and affordable housing units.
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A growth management measure could also include indirect actions. Given that the City’s inclusionary rate is already 20 percent, a measure raising the inclusionary housing rate further, without first conducting a market analysis to determine feasibility and efficacy of the new rate, could be considered a constraint to housing. This is because an increased inclusionary rate that is infeasible for housing developers may discourage future housing applications.
The City does not currently have an adopted growth management measure, and as such, this is not considered a constraint to housing development, and particularly affordable housing development, in the City.
11. Code Enforcement
The Planning and Community Development Department provides Code Enforcement services for a variety of concerns. Code Enforcement is run on a complaint basis with the goal of coordinating with property owners to bring issues into compliance. The ultimate priority is to ensure life and safety protection. Figure E-8 details how complaints are processed.
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Figure E-8: Code Compilance Process
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12. Local Processing and Permit Procedures
The development community commonly cites the permit processing time as a contributor to the high cost of housing. Depending on the magnitude and complexity of the development proposal, the time that elapses from application to project approval may vary considerably. Factors that can affect the length of development review of a proposed project include the completeness of the development application and the responsiveness of developers to staff comments and requests for information. Approval times are substantially lengthened for projects that are not exempt from the California Environmental Quality Act (CEQA), require rezoning or general plan amendments, or encounter community opposition.
The City works to streamline permit application review as staffing and resources are available.
Specifically, the City is working to streamline projects that include lower income units. Through its development processes and procedures, the City complies with the statutory requirements of the Permit Streamlining Act. The City processes all development applications within the statutory processing and timing requirements of the Permit Streamlining Act.
In the State of California, developments deemed a project are required to undergo a CEQA analysis, independent of the City’s development review process. The City complies with all CEQA timing requirements, including streamlining determinations.
All permit applications are first reviewed by City Staff for completeness, and, once determined to be complete, discretionary applications must receive a recommendation through a staff report prior to a review by the appropriate authority. The City has within 30 calendar days to determine if the application is “complete” or “incomplete” for further processing. Typically, an “incomplete” application will require revisions and/or additional materials. The City staff has 30 calendar days to review each subsequent submittal. Applications deemed “complete” may continue to be processed for consideration by appropriate decision-making body, including the appropriate level of CEQA review.
Various applications may also require public noticing and a public hearing. Single- and multi-family developments are subject to the following submittal requirements:
1. Submittal of application including the following information:
a. A legal description of the property;
b. A location map showing the project site and the general vicinity of the site; c. A completed environmental information form as prescribed by the City; d. Site plans, elevation plans, floor plans and other maps and data as may be necessary to describe the existing conditions on and surrounding the property and the proposed plans for the future development of the property; and e. Such other information specified in the Zoning Ordinance for the particular entitlement(s) requested.
2. Payment of fees for permit plan check and application processing.
3. Plan check completed by all applicable departments and agencies. Timeline and number of reviews can vary.
4. Permit issued once all comments are satisfied.
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Table E-6 provides a list of Planning applications and the reviewing body for each, and Table E-7 provides example residential developments from the 5th cycle. The typical timeline for permit review processing and approval for single-family and multi-family developments is 3 months to 1 year or longer, depending on the complexity of the project and the responsiveness of the applicant to requests for information.
Table E-6: Decision-Making Body with Final Approval Authority Permits/Action
No Public
Hearing Public Hearing Appeal Bodies
(in order)
Typical
Action Recommend- Review Time
ation
Action
Coastal Permit ZA (ADU*) ZA* CPC/CC/CCC* 6-8 weeks
Administrative Use Permit: Large Family
Daycare Homes, Temporary Uses, and half
baths in accessory buildings
ZA CPC/CC 6-8 weeks
Administrative Use Permit: Variations to
parking design requirements or variations
to number of required spaces
ZA CPC/CC/CCC 8-12 weeks
Other uses as listed by individual zoning
districts as requiring an Administrative
Use Permit
ZA CPC/CC 8-12 weeks
Design Permit
Substandard lots: new two-story
structures and second-story additions,
excluding ADUs
Large homes per Section 24.08.450
New structures or improvements to
existing structures in the WCD Overlay
which are exempt or excluded from
coastal permit requirements
New structures or improvements to
existing structures in the WCD Overlay
which require a coastal permit
ZA
ZA
ZA
ZA
ZA
CPC/CC
CPC/CC
CPC/CC
CPC/CC
CPC/CC
6-8 weeks
8-12 weeks
8-12 weeks
6-8 weeks
6-8 weeks
Demolition Authorization Permit
1. Single-family residential
2. Multifamily residential
3. Historic demolition permit
4. Nonresidential
ZA
ZA**
CPC
HPC
ZA**
CPC/CC
CC
CC
CPC/CC
6-8 weeks
8-12 weeks
8-12 weeks
6-12 weeks
General Plan Text and Map Amendments 4-8 months
Historic Alteration Permit
Administrative Historic Alteration Permit
HPC CC 8-12 weeks
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Table E-6: Decision-Making Body with Final Approval Authority Permits/Action
No Public
Hearing Public Hearing Appeal Bodies
(in order)
Typical
Action Recommend- Review Time
ation
Action
ZA HPC/CC 6-8 weeks
Mobile Homes (Certificate of
Compatibility)
ZA CPC/CC 8-12 weeks
Mobile Home Park Conversion CPC CC 4-6 months
Planned Development Permit CPC CC 3-6 months
Project (Major) Modification Hearing by ZA or body
approving application
Appeal to next
highest body(ies)
8-12 weeks
Project (Minor) Modification ZA CPC/CC 6-8 weeks
Relocation of Structures Permit ZA CPC/CC 6-12 weeks
Revocation Permit Hearing by ZA or body
approving application
Appeal to next
highest body(ies)
3-6 months
Variance ZA CPC/CC 2-4 months
Watercourse Variance CPC CC 2-4 months
Watercourse Development Permit ZA CPC/CC 2-4 months
Zoning Ordinance Text and Map
Amendments:
Amendments recommended by CPC
Amendments not recommended by CPC
CPC
CPC
CC/CCC***
CC/CCC***
4-6 months
6-8 months
CCC = California Coastal Commission CC = City Council CPC = City Planning Commission HPC = Historic Preservation Commission ZA = Zoning Administrator * For projects seaward of the mean high tide line, and in the case of appealable actions, the California Coastal Commission shall be the decisionmaking body which can finally approve an application. In the coastal zone, all proposed accessory dwelling units shall require a coastal permit (unless they are exempt or excluded from coastal permit requirements) and shall be processed in the manner described in Chapter 24.04 and Section 24.08.200 et seq., (including in terms of public noticing and process for appeal to the Coastal Commission) except that no public hearing shall be required. In addition to all other applicable LCP requirements, standards for ADUs in the coastal zone are specified in Section 24.12.140(10). ** Such permits shall be issued administratively, without a public hearing, unless a cultural resources evaluation, prepared by a qualified consultant as determined by the zoning administrator, determines that the building or structure is eligible for listing on the city historic building survey.
*** California Coastal Commission in case of CLUP policy, CLIP elements. **** At a regularly scheduled meeting, a majority of the council may take an action to direct any project or amendment to be called from a lower hearing body prior to a final action or during an appeal period in accordance with Section 24.04.175(2).
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Table E-7: Example Planning Project Review Timelines
Project
Planning
Application
Submission Date
Planning
Application
Approval Date
Building Permit
Submission Date
Building Permit
Issuance Date
130 Center St.
Density Bonus Project with 233
total units (35 very low-income
deed restricted units)
9/14/2021 1/25/2022 5/16/2022 NA
831 Water St.
SB 35 streamlined Density
Bonus Project with 140 total
units (55 low-income deed
restricted units)
8/17/2021 12/16/2021 NA NA
727 Hanover St.
11 total units (2 low-income
deed restricted units)
6/22/2021 7/7/2021 7/15/2021 7/27/2022
126 Eucalyptus Ave.
76 unit senior living facility with
15 independent living units (2
moderate-income deedrestricted units)
11/19/2021 11/29/2022 NA NA
508 Front St.
175 total units (15 vey lowincome and 5 low-income deed restricted units)
7/19/2019 1/12/2021 10/27/2021 NA
902 Pacific Ave.
95 total units (56 very lowincome and 37 low-income
deed restricted units)
4/5/2021 6/2/2021 NA NA
100 Laurel St.
205 total units 10/26/2018 12/11/2018 10/01/2020 5/18/2021 818 Pacific Ave.
85 total units (84 low-income
deed restricted units) with
Housing Authority Vouchers for
very low-income households
and 22 units reserved for
persons experiencing or at-risk
of homelessness
11/13/2020 12/2/2020 9/20/2021 6/28/2022
119 Coral St.
Supportive housing project with
121 total units (84 low-income
deed restricted units)
10/28/2020 11/19/2020 12/21/2021 NA
190 West Cliff Dr.
89 total units (8 very lowincome and 2 low-income deed restricted units)
4/7/2019 10/22/2019
350 Ocean St.
60 total units (45 very lowincome and 15 low-income
deed restricted units)
2/3/2011;
5/31/2013;
5/29/2017
4/10/2012;
7/18/2013;
8/22/2017
1/23/2019 4/22/2019
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Design Permit
A design permit is required for multi-family residential development projects with three or more units; and single-family homes over 4,000 square feet in the R-1-10 zone, 3,500 square feet in the R-1-7 zone, and 3,000 square feet in the R-1-5 zone. Design Permit applications are approved by the Zoning Administrator, unless it is accompanied by an application which must be heard by Planning Commission or City Council. The following residential projects must also be approved by the Zoning Administrator but also require a Public Hearing:
• New two-story structures and/or second-story additions on substandard residential lots; • Large homes per Section 24.08.450 of the Municipal Code; and • New structures or improvements to existing structures in the West Cliff Drive Overlay District that require a coastal permit.
All Design Permit applications must conform with the following criteria to receive approve:
• The site plan and building design are consistent with design and development policies of the General Plan, any element of the General Plan, and any area plan, specific plan, or other city policy for physical development. If located in the Coastal Zone, the site plan and building design are also consistent with policies of the Local Coastal Program. • For nonresidential projects, the project’s location, size, height, operations, and other significant features and characteristics are compatible with and do not adversely affect or further degrade adjacent properties, the surrounding neighborhood, or the public health, safety, and welfare. For residential projects, the project complies with the objective standards and requirements of the zoning district in which it is located, as well as any objective standards of any area plan or other regulatory document that applies to the area in which the project is located.
• For nonresidential projects, the project provides for an arrangement of uses, buildings, structures, open spaces, and other improvements that are compatible with the scale and character of the adjacent properties and surrounding neighborhood. • The exterior design and appearance of buildings and structures and the design of the site plan shall be compatible with design and appearance of other existing buildings and structures in neighborhoods which have established architectural character worthy of preservation.
• Design of the site plan respects design principles in terms of maintaining a balance of scale, form and proportion, using design components which are harmonious, and materials and colors which blend with elements of the site plan and surrounding areas. Location of structures takes into account maintenance of public views; rooftop mechanical equipment is incorporated into roof design or screened from public rights-of-way to the extent possible. Utility installations such as trash enclosures, storage units, traffic-control devices, transformer vaults and electrical meters are accessible and screened. • Where a site plan abuts, or is in close proximity to, uses other than that proposed, the plan shall take into account its effect on other land uses. Where a nonresidential use abuts or is in close proximity to a residential use, the effect of the site plan should maintain the residential quality of adjacent or nearby areas.
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• To the extent feasible, the orientation and location of buildings, structures, open spaces and other features of the site plan maintain natural resources including significant trees and shrubs, minimize impacts to solar access of adjacent properties, and minimize alteration of natural land forms; building profiles, location, and orientation must relate to natural land forms.
• The site plan ensures that the scale, bulk, and setbacks of new development preserves important public views along the ocean and of designated scenic coastal areas. Where appropriate and feasible, the project shall restore and enhance visual quality of visually degraded areas.
• The site plan shall reasonably protect against external and internal noise, vibration and other factors which may tend to make the environment less desirable. The site plan should respect the need for privacy of adjacent residents.
• Building and structures shall be designed and oriented to make use of natural elements such as solar radiation, wind, and landscaping for heating, cooling, ventilation, and lighting.
Planned Development
The purpose of the Planned Development permit is to provide more flexibility on particular parcels than what conventional zoning regulations allow for. Additionally, the intent of the application is to insure that:
• Planned development permits will be issued only where the subject parcel is large enough to make innovative and creative site planning possible (at least 20,000 square feet3); • Applicants for planned development permits have the professional capability to produce a creative plan;
• The public’s interest in achieving goals stated in the General Plan will be served more fully through the planned development process than through application of conventional zoning regulations;
• The advantages to landowners afforded by the planned development process will be balanced by public benefits; and,
• Natural or man-made features and resources of the site such as topography, trees, watercourses, and the like are preserved.
The City does not pre-zone parcels as Planned Development and development standards are not pre-established either. As this application provides property owners and developers with additional opportunities, it is not considered a constraint to residential development.
Objective Development Standards
Senate Bill (SB) 35, SB 330, and SB 9, requires multi-family projects to be reviewed only against objective design and development standards. According to the Government Code (Sections 65913.4 and 66300[a][7]), objective development standards “involve no personal or subjective 3 Except for: 1) residential projects or mixed-use projects where all units are affordable according to City standards, the minimum land area must be the minimum lot area requirement of the district in which the project is located, or 2) applications involving conversions of cooperatives to condominiums, the minimum lot area must be the minimum lot area requirement of the district in which the project is located.
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judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable” by development applicants and public officials before submittal of a project application. In other words, objective standards allow applicants to know the requirements that will apply to a proposed project so that they can design a project that meets those standards. Objective development standards can therefore make development more predictable and easier to interpret for all stakeholders, including decision makers, City staff, applicants, and members of the public.
While the City has many design guidelines that promote best practices, many are subjective or optional, and therefore cannot currently be enforced under State law. The adopted objective development standards work as a baseline, creating city-wide standards that apply to all new multi-family and mixed-use residential projects. The standards work in tandem with other City standards already in place, as detailed below:
• General Plan – The General Plan contains objective standards related to floor-area-ratio (FAR) and/or development density for all land uses in the City. The adopted objective development standards are consistent with the General Plan and dictate the bulk, mass, and design of buildings in a more fine-grained way than the General Plan. • Area Plans – The Area Plans will continue to set a vision and best practices for specific geographic areas/neighborhoods in Santa Cruz. Where applicable, the objective development standards have drawn on standards and guidelines that exist in the Area Plans. Objective standards that exist in Area Plans will continue to apply. Objective standards can be identified in Area Plans by reviewing guidelines and standards for words like “must,” “shall,” “will” or “will not.”
• Zoning – The Zoning District Standards contain objective standards that define the building envelope such as setbacks, heights, parking, and open space requirements. These districtby-district standards will continue to dictate basic development standards, and the objective development standards will apply in addition to these requirements, providing refinement in terms of site and building design. In order to maximize opportunities for housing, zoning standards relating to required open space are proposed to be amended with the objective standards.
• Other Municipal Code Sections – The City also maintains and enforces standards related to stormwater drainage, roadway and traffic requirements, and standards for working within the public right of way to install sidewalks, street trees, and lighting. These standards will continue to apply, and City departments are evaluating the need to make some of the existing standards more objective in order to ensure they continue to apply in the necessary manner.
• Building Standards Codes – All construction in the State of California is subject to the California Building Standards Codes which dictate health, safety, and energy and water efficiency standards for new and remodeled structures. In Santa Cruz, the City’s Green Building Program also requires additional green building features of every new housing unit and requiring responsible disposal of construction waste products.
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The adopted objective standards relate to building design and site design for new development and redevelopment projects (including all multi-family proposals that meet the definition of demolition in the Municipal Code). The standards are incorporated into Chapter 24.12.185 of the Santa Cruz Municipal Code as part of the City’s zoning regulations – they are required of all new multi-family developments and may be waived or granted as a concession through a State Density Bonus application or other regulated process such as a variation for alternative design, a variance, or a Planned Development. Like other zoning standards, review for compliance takes place during the development review process, and ongoing maintenance of required conditions are a matter of code enforcement.
Senate Bill 330
Senate Bill 330 (SB 330) seeks to address the California housing crisis and help meet the housing need by facilitating housing construction and protecting lower income residents from displacement over a ten year period by:
• Suspending enactment of local downzoning and housing construction moratoriums • Requiring timely processing of housing permits following existing local zoning rules • Lifting required parking minimums
• Eliminating certain fees on low income units
• Postponing requirements for voter approval of zoning, general plan changes • Protecting rent controlled or Section 8 units from demolition • Requiring resettlement benefits and first right of refusal in new units or compensation for rehousing for renters who may be displaced
California State Law requires that any proposal for a Housing Development Project4 that includes the demolition of one or more existing housing units must include at least as many housing units as were demolished. (Government Code section 66300). All types of housing units, including single-family dwellings, accessory dwelling units and junior accessory dwelling units are included in this requirement and must be replaced, including unpermitted units if the unpermitted units are occupied or were occupied in the last five years. A proposal for demolition of a housing unit absent a Housing Development Project is still subject to replacement housing requirements, relocation assistance requirements, and offer to move requirements in the City of Santa Cruz Zoning Ordinance, Chapter 24.08, part 14. The local ordinance requires the replacement of housing when a project includes the demolition of three or more housing units. The ordinance section clearly establishes the process for determining if replacement housing must be made affordable and alternatives available, such as the payment of fees in-lieu of replacement units.
The City complies with the statutory requirements of SB 330. 4 A Housing Development Project consists of the construction of at least two residential units. The demolition and replacement of a single residential unit, such as a single-family residence, a townhouse, or an ADU, does not constitute a Housing Development Project.
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Senate Bill 35
Senate Bill 35 (SB 35), codified as Government Code Section 65913.41, was signed on September 29, 2017, became effective January 1, 2018, and will sunset on January 1, 2026. The intent of the Bill is to expedite and facilitate construction of affordable housing. SB 35 applies to jurisdictions that have not made sufficient progress towards meeting their affordable housing goals as mandated by the State. In an effort to meet the affordable housing goals, SB 35 requires jurisdictions to streamline the review and approval of certain qualifying affordable housing projects through a ministerial process.
When a jurisdiction has made insufficient progress towards their above moderate-income RHNA and/or has not submitted the latest Housing Element Annual Progress Report (APR) it is subject to the streamlined ministerial approval process for proposed developments with at least 50 percent affordability. The latest SB 35 Statewide Determination Summary for 2023 is based on 2022 APRs received by HCD as of June 1, 2023. The City submitted its APR to the State on April 1, 2023, and proceeded to meet its 5th Cycle RHNA on April 15th. As such, while the City did meet its 5th Cycle RHNA, it remains subject to SB 35 streamlined ministerial approval for proposed developments with at least 50 percent affordability. Required objective standards for SB 35 eligibility include all of the following:
• A multifamily housing development (at least two residential units) in an urbanized area; • Located where 75 percent of the perimeter of the site is developed; • Zoned or designated by the general plan for residential or mixed use residential; • In a location where the locality’s share of regional housing needs has not been satisfied by building permits previously issued;
• One that includes affordable housing in accordance with SB 35 requirements; • Consistent with the local government’s objective zoning and design review standards; and • Willing to pay construction workers the state-determined “prevailing wage.” If a project is located in any of the following areas, it cannot qualify for SB 35 streamlining:
• A coastal zone, conservation lands, or habitat for protected species; • Prime farmland or farmland of statewide importance;
• Wetlands or lands under conservation easement;
• A very high fire hazard severity zone;
• Hazardous waste site;
• Earthquake fault zone;
• Flood plain or floodway;
• A site with existing multi-family housing that has been occupied by tenants in the last ten years or is subject to rent control; or
• A site with existing affordable housing.
Policy Objective 2.2h is included in the Policy Plan to adopt review processes that meet the requirements established in Government Code Section 65913.41.
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13. Development Fees
Residential developers are subject to a variety of permitting, development, and impact fees in order to access services and facilities as allowed by State law. The additional cost to develop, maintain, and improve housing due to development fees result in increased housing unit cost, and therefore is generally considered a constraint to housing development. However, fees are necessary to provide planning and public services, including necessary infrastructure, in Santa Cruz. All information regarding the City’s development fees is available to the public on the City of Santa Cruz website as pursuant to Government Code §65940.1 (a)(1)(B).
The location of projects and housing types results in varying levels of development fees. The presumed total cost of development is also contingent on the project meeting City policies and regulations and the circumstances involved in a particular development project application. Some of the City planning fees, mainly for larger or more complex projects, operate on a deposit account basis where time and materials are charged against the established account as the project is processed. Table E-8 provides the planning fees and Table E-9 provides the development impact fees. The development fees associated with each project are dependent on the housing type, density, intensity of use, and location. In addition to these direct fees, the total cost of development is contingent on the project meeting the City’s policies and standards, as well as the project applicant submitting necessary documents and plans in a timely manner.
In comparison to neighboring communities (Cities of Scotts Valley and Watsonville), the City of Santa Cruz has lower impact fees; planning processing fees in Santa Cruz are comparable to those of Scotts Valley – some applications are higher but some are lower. Permit application fees for the City of Capitola are lower than they are for the City of Santa Cruz, but due to differences in the size of the cities, capacity, and development activity, these differences do not indicate a constraint for residential development in Santa Cruz.
Table E-8: Planning Processing Fees
Application Type Fee
Permit Applications
Appeals $741
Boundary Adjustment $1,725
Coastal Permit $2,174
Coastal Permit Exclusion $154
Design Permits:
- Large House/Substandard Lot (Public Hearing)
- Remodel/Site Alteration (No Public Hearing)
- New Nonresidential/Residential
$3,397
$2,174
$472/1,000 sq. ft.
Development Agreements $5, 829
Development Agreements – Annual Review $1, 252
Final Map Amendment $3,225
Final Subdivision Map $1,486
Fire Review Fee $128
General Plan/Zoning Map Amendment $6,222
General Plan Maintenance Fee (Non-ADU) 1.22%, $250,000 maximum General Plan Maintenance Fee (ADU) 0.61%, $250,000 maximum Modification to Approved Plans:
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Table E-8: Planning Processing Fees
Application Type Fee
- Minor
- Major
$2,174
$3,236
Planned Development $9,234
Police Review Fee $387
Pre-Application Review $3,495
Pre-Application Review (Planning Only) $692
Residential Short-Term Rental Permit $316
Specific Plan $6,622
Subdivision (Includes Condo Conversions):
- 4 Lots or Less
- 5 Lots or More
- Plus per Lot
$9,453
$18,978
$472
Time Extension $2,099
Use Permit: Administrative $3,118
Use Permit: Special $3,778
Environmental Review
Archaeological Review $81
Biotic Review $159
Arborist Review $675
Categorical Exemption $154
EIR Review 25% of Consultant’s Contract
Negative Declaration/Initial Study $5,538
Statutory Exemption $5,913
Rental Inspection Program
Annual Registration Fee $60
Annual Self-Certification Fee 20% of the units at $27 per unit Annual Inspection Fee $27
Re-Inspection Fee $138 per hour
Source: City of Santa Cruz – July 2022 to December 2022 Fee Schedule.
Table E-9: Development Impact Fees
Development Fees Per Dwelling Unit Max Per Square Foot
Childcare Impact Fee
- Single-Family Residential
- Multi-Family Residential
$339
-
$0.592
$0.444
Public Safety Impact Fee: Fire
- Single-Family Residential
- Multi-Family Residential
$841
$627
$0.56
$0.951
Public Safety Impact Fee: Police
- Single-Family Residential
- Multi-Family Residential
$852
$635
$0.56
$0.96
Other Development Fees Single-Family Multi-Family
Santa Cruz School District Fees
Residential $4.79 per sf
Fire District
Fire Impact Fee $1,317.97 $935.33
Source: City of Santa Cruz 2023 Unified Master Fee schedule, Santa Cruz City Schools Developer Fee Rates 2021.
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A typical single-family development permit costs an average of $45,581 for land use entitlements and development impact fees for a 2,500 square-foot home. This total includes sewer connection fees and traffic impact fees, which are not required for infill development with existing uses.
Removing these fees would cut the cost to approximately half of the cost provided above.
In comparison, a typical multi-family development project cost around $11,977 per unit for land use entitlements plus development impact fees. It should also be noted that not all single-family developments require land use entitlements; of the seven single-family permits issued last year, one required only a building permit with no land use entitlement permits.
Cost estimates are illustrative in nature and actual costs are contingent upon unique circumstances of individual development project applications. Considering the average cost of land in Santa Cruz (approximately $219 per square foot of vacant land) and the ICC’s estimate for cost of labor and materials ($160.35 for single-family developments and $144.50 for multi-family developments5), the combined cost of permits and fees would be approximately 3.1 percent of the direct cost of development for a single-family project on a 5,000 square-foot lot and 1.6 to 2 percent for a multi-family project on a 43,560 square-foot lot. Direct costs do not include building permit fees (which averaged around $37,000 in 2022), landscaping, on-/off-site improvements, shell construction or amenities; therefore, the percentage of development and impact fees charged by the City may be smaller if all direct and indirect costs are included.
14. On-/Off-Site Improvements
Site improvements in the City consist of those typically associated with development for on-site improvements (street frontage improvements such as curbs, gutters, and sidewalks,sewer/water hookups, on-site drainage, and landscaping), and off-site improvements to offset project impacts (off-site drainage, parks, traffic, schools, and sewer/water infrastructure). Because residential development cannot take place without the addition of adequate infrastructure, site improvement requirements are considered a regular component of the development of housing within the City and may also influence the sale or rental price of housing. Some of the costs associated with onand off-site improvements are undertaken by the City and recovered through development and impact fees.
For single-family residential development on vacant land, examples of typical on-site improvements might include new curbs, gutters, and sidewalks, stormwater detention facilities (required by the Clean Water Act), and landscaping. Multi-family developments might also include common open space and recreation areas, emergency access drives, and lockable storage areas.
Typical off-site improvements for both single-family and multi-family developments might include:
recreational trail facilities, road improvements and traffic control needed to serve the development, and street trees. Utilities may need to be updated or installed to serve the development, including water mains, sewer mains, stormwater pollution prevention measures, and undergrounding of electric utilities.
5 The cost of labor and materials is detailed in Section A.1 of this Appendix E and is not reflective of Santa Cruz data alone. As such, the cost may be higher.
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Infill residential projects may be required to install any of the improvements listed above, depending on site-specific circumstances and neighborhood needs.
The City has standard improvements required for subdivisions that can be found in the City’s Municipal Code. General improvements include the following:
• The thoroughfare and/or collector adjoining the proposed development shall be improved as approved by the City engineer. All lots created by a subdivision shall abut an improved street which is developed to City standards.
• At the time of the approval of the final map, City Council shall accept or reject any or all offers of dedication. As a condition precedent to acceptance of such dedications, the City Council shall enter into an agreement with the subdivider requiring that s/he shall improve the streets, easements, and other dedications in accordance with the standards established in the City’s Municipal Code unless such streets, easements, and other dedications have already been improved.
The subdivider shall improve or agree to improve all streets, public and private, thoroughfares, public ways, or easements in, or adjacent to the subdivision as needed to meet the requirements of the Municipal Code. Specific design standards for streets can be found in the City’s Municipal Code as well as Master Plans and Specific Plans on the City’s website. While they do present an additional cost for development, the requirements are consistent with the region and do not present a constraint to the development of housing in Santa Cruz.
15. Building Codes and Code Compliance
The City has adopted the 2022 California Building Code, including the ancillary information within the tables, attachments, addendums, and footnotes. This would include the California Administrative Code, Building Code, Residential Code, Electrical Code, Mechanical Code, Plumbing Code, Energy Code, Historical Building Code, Fire Code, Existing Building Code, Green Building Standards Code, and California Referenced Standards Code. The adoption California Building Code therefore ensures a consistent development standard that would be promoted throughout the State. The Code’s intent is to safeguard the public health, safety, and general welfare through structural strength, means of egress facilities, stability, sanitation, adequate light and ventilation, energy conservation, and safety to life and property from fire and other hazards attributed to the built environment and to provide safety to firefighters and emergency responders during emergency operations.
The City has amended, modified, and deleted sections of the adopted building code to provide needed clarification and to improve existing codes. These adopted building code amendments expand on the minimum requirements to safeguard the public health, safety, and general welfare; however, they are not significantly different from the existing California Building Standards Code and therefore do not have any impact on housing production. Amendments were adopted as allowed for local climatic, geological, and topographic conditions to address and better protect against natural hazards. Increased standards may require developers to utilize materials that are more expensive than default materials. While material may be more expensive, most developers already utilize materials that exceed the minimum standards set by the building code
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amendments. The City has not received complaints of burdensome building code requirements and does not see code amendments precluding development in Santa Cruz. Because the amendments are not significantly different from the existing California Building Standards Code, they do not significantly impact the cost and supply of housing in Santa Cruz. Amendments to the building codes can be found in Section 18.04.040 of the Santa Cruz Municipal Code.
D.Infrastructure Constraints
Another factor that could constrain new residential construction is the requirement and cost of providing adequate infrastructure (major and local streets; water and sewer lines; and street lighting) needed to serve new residential development. In most cases, where new infrastructure is required, it is funded by the developer and then dedicated to the City, which is then responsible for its maintenance. Because the cost of these facilities is generally borne by developers, it increases the cost of new construction, with much of that increased cost often “passed on” in as part of home rental or sales rates. As virtually all new development within the City is infill development, new infrastructure is not generally required; however, larger and even some smaller projects may require infrastructure improvements or payment for future improvements.
1. Dry Utilities
Dry utilities include electric, telephone, TV, internet, and gas services. The various utility providers are responsible for providing these necessary resources to new housing units.
Electrical
Central Coast Community Energy (3CE) is the default service providing electrical energy in the City of Santa Cruz through PG&E infrastructure. C3E supports clean and renewable energy and community reinvestment and provides access to 3CE Energy Program rebates and incentives. With 3Cchoice, the default program, 31% of the energy mix comes from eligible renewables (based on the California Renewables Portfolio Standard). 3CE and its customers are on a pathway to 100% clean and renewable energy by 2030 and 60% by 2025.Pacific Gas and Electric Company (PG&E) provides the electricity infrastructure, which is located aboveground on utility poles and belowground. The power mix delivered to customers includes the following greenhouse gas-free technologies:
• Eligible renewable resources, such as wind, geothermal, biomass, solar and small hydro (38.4 percent)
• Large hydroelectric facilities (11.6 percent)
• Unspecified Power (49.8%) (Unspecified power is electricity that has been purchased through open market transactions and is not traceable to a specific generation source.) Natural Gas
PG&E also provides natural gas services in Santa Cruz. As a public utility, PG&E is under the jurisdiction of the California Public Utilities Commission (CPUC) which regulates natural gas rates and natural gas services, including in state transportation over the utilities’ transmission and
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distribution pipelines system, storage, procurement, metering, and billing. PG&E is responsible for providing service to residential, industrial, and commercial customers in Santa Cruz.
2. Water Supply
The Santa Cruz Water Department serves a population of approximately 100,000 within a service area of approximately 30 square miles. This includes areas within City limits, Live Oak, portions of the City of Capitola, and along Highway 1 north of the City. The Department is responsible for providing a safe and reliable source of water to Santa Cruz households and maintains the City’s water mains and underground valves. The City serves an average of almost 7.3 million gallons of water per day to the Department’s service area. The City’s latest Urban Water Management Plan, approved by the state in November 2021, demonstrates that the City has planned forwater supply for all planned growth. As the state requires through the regular Urban Water Management Plan updates, the City is able to provide sufficient water capacity to accommodate the regional housing need.
Santa Cruz Water Source
The City receives its water supply from four main supply sources: North Coast sources (including Laguna, Majors, and Reggiardo Creeks, and Liddell Spring), San Lorenzo River, Loch Lomond Reservoir, and Live Oak Wells. The City’s supply of drinking water is primarily supplied through surface water collected through local rainfall. The City’s only reservoir, Loch Lomond Reservoir, holds 2.8 billion gallons of drinking water supply from Newell Creek watershed and the San Lorenzo River, which is piped to the Graham Hill Water Treatment Plant. The rest of the City’s supply comes from groundwater, all of which is extracted from the Beltz Well system in the Purisima Formation in the Santa Cruz Mid-County Groundwater Basin.
The City does not currently operate a recycled water system in its service area; however, the Pasatiempo Golf Course, located within the City’s service area, now receives disinfected secondary effluent from the City of Scotts Valley that it treats to tertiary standards for use as irrigation.
Water Quality
The Santa Cruz Water Department is responsible for providing residents with reliable, safe, clean, and potable domestic water supply. The Department is required to test the quality of the water it serves in order to guard the health of its customers and the general public. Federal, State, and local agencies all have a role to play in setting water quality standards. Water quality samples results are compiled in monthly reports and forwarded to the State Water Resources Control Board, Division of Drinking Water.
The Santa Cruz Municipal Utilities (SCMU) assists customers with any questions regarding water quality, water pressure, consumption usage, any concern with water meters, leak detection, utilities inspections and underground utility locating. The City’s Water Systems Department webpage provides tips and information for proper water systems care for property owners as well as additional resources.
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Water Demand
Santa Cruz's drinking water is supplied primarily through surface water collected from local rainfall.
Almost 100,000 people rely on the Santa Cruz Water Department for water service. The City operates a system that includes more than 300 miles of pipes to bring water to customers, pumps and lift stations to move water where it is needed, and both an untreated water storage reservoir that captures the City’s water supply before the water is purified and multiple treated water storage tanks that send it to consumers’ faucets.
In 2020, the City’s total water demand was approximately 2,606 MGY of potable water. The City’s single-family and multi-family residential usage was projected at 1,540 MGY in 2020, with an estimated increase by 3 percent through 2045.
The City’s newly adopted Securing Our Water Future policy, has supply augmentation as its focus because, given the already highly efficient level of water use by most customers, demand reduction through mandatory restrictions or water rationing are no longer relatively low cost and simple to implement solutions. The policy establishes both a supply reliability goal of planning for climate change conditions and meeting customer water demand given the assumption of ongoing water use efficiency. Growth in water demand has only amarginal impact on overall water system demand. Climate driven supply variability in which there is an increase in the frequency and length of back-to-back droughts is making the system’s long-standing vulnerability to droughts a critical priority for action.
Wastewater
The Santa Cruz Public Works Department regularly maintains and improves the City’s public sanitary sewer system. The Wastewater Treatment Facility provides sanitary sewer services and maintains the sewer main lines.
The Public Works Department’s main wastewater responsibilities include:
• 24-hour emergency response;
• Line construction and repair of sewer and storm piping systems and manholes; • Inspection and repair of sewer and stormwater pumping stations including river flood control slide gates and discharge valves;
• Preventative and emergency sewer and storm line hydro flushing; • Closed Circuit TV inspection of collection system to determine Capital Improvement Project and maintenance needs;
• Operation and maintenance of Sanitary Landfill Lechate Pumping Facility and 2.5 miles of Lechate force main.
Adequate Wastewater Treatment Facility capacity is available to serve the planned Regional Housing Needs Allocation for the City. Sufficient conveyance capacity is typically available for new projects; however, as projects are proposed, evaluation of the sanitary sewer collection system pipe capacity is conducted, and conveyance upgrades are initiated in coordination with the developer, if necessary.
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3. Fire and Emergency Services
Fire services are provided by the Santa Cruz Fire Department, which has four fire stations and one lifeguard headquarters. The Fire Department is a full-service agency providing fire suppression, fire prevention, emergency medical, rescue, ambulance transport, and public education programs.
The Fire Department provides the following services:
• Structure Fire Suppression
• Wildland Fire Suppression
• Emergency Medical Services (Paramedic)
• Hazardous Materials Incident Response
• Marine Rescue Services
• Technical Rescue
In 2021, the Fire Department received 8,701 calls for service, a 12.3 percent increase from 2020.
The Fire Department also conducted 661 life safety inspections in 2021.
Emergency Medical Services (EMS)
The Fire Department is responsible for keeping up with emergency medical mandates, equipment, and program development for both advanced and basic life support education and training. Every firefighter in the district has some level of EMS training, which requires recertification and continued education.
Santa Cruz Regional 9-1-1 (NetCom) was created in 1996 as a Joint Powers Authority (JPA) to provide public safety and 9-1-1 dispatch services for Santa Cruz County Sheriff’s Office, Santa Cruz Police and Fire Departments, Watsonville Police and Fire Departments, and Capitola Police Department. Along with these “owners” of the JPA, NetCom also provides services to all the Fire Districts in Santa Cruz County and American Medical Response (the local paramedic and ambulance transport provider). In 2021, NetCom received 521,702 total calls for emergency and non-emergency assistance.
Community Emergency Response Team (CERT)
The Community Emergency Response Team (CERT) Program educates people about disaster preparedness for hazards that may impact their area and trains them in basic disaster response skills, such as fire safety, light search and rescue, team organization, and disaster medical operations. Using the training learned in the classroom and during exercises, CERT members can assist others in their neighborhood or workplace following an event when professional responders are not immediately available to help. CERT members also are encouraged to support emergency response agencies by taking a more active role in emergency preparedness projects in their community. The Fire Department offers CERT training for community members interested in this type of community service.
4. Police Services
The Santa Cruz Police Department (SCPD) serves the City’s 63,789 residents over 12.7 square miles. In 2015, SCPD issued its first annual report. At the time of release of the report, the police department had 119 employees, 94 sworn police officers, and 25 non-sworn civilian staff. SCPD
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works diligently to meet the unique challenges of public safety in a city that plays host to a large tourist population, special events, and seasonal attractions. With a finite number of resources, the city is divided into five “patrol beats:” West, East, Beach, Central, and Downtown. The beats are designed to maximize coverage and provide efficient response to calls for service.
Additionally, SCPD includes three Neighborhood Policing Team (NPT) zones within the City. The NPTs put more SCPD personnel on the streets to increase community policing and activate crimefighting strategies. SCPD officers are an integral part of their neighborhoods and, in partnership with the community, look to tackle the underlying causes of crime and safety issues and put sustainable solutions in place. NPT is designed to address the distinct needs of each community.
The plan brings together community engagement, crime data, and police services.
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Housing Resources
Appendix F
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Housing Resources
The City of Santa Cruz provides a variety of resources and services to assist the community in accessing housing which meets their needs and income levels. This Appendix provides a summary of those resources and services.
A.Neighborhood Assets
Historically, the City has focused many resources in the Beach Flats, South of Laurel, and Lower Ocean Street neighborhoods which make up the City’s Neighborhood Revitalization Strategy Area (NRSA). These areas have the highest concentrations of lower income households, with approximately 36 percent of households at or below the poverty limit. Community resources in the NRSA, and elsewhere in the City that serve the NRSA, include the following:
• Nueva Vista Resource Center: which includes a service center and food/clothing bank in the Lower Ocean Street neighborhood and the Beach Flats Community Center with youth programs in the Beach Flats neighborhood. Nueva Vista Resource Center is the only Community Based Development Organization (CBDO) serving the City’s NRSA. • London Nelson Community Center and Laurel Street Park: The Community Center provides a wide range of community uses including a Teen Center and a Senior Center. The Center is located in the NRSA.
• Park Facilities: Depot Park (a major City park with playing fields and an activity center); Mike Fox Skate Park; Beach Flats Park; Poet’s Park and Community Garden; and pedestrian/bike paths along the San Lorenzo River. The municipal wharf and Ocean View Park are also located adjacent to the NRSA.
• Wednesday Farmers Market: Year-round market currently located at Lincoln and Cedar Streets, adjacent to the NRSA. This site is part of the area planned for development with the Library Mixed-Use project, which includes finding a new permanent location for the Farmers Market.
• Metro Center Bus Depot: Located on Pacific Avenue/Front Street between Cathcart and Laurel Streets.
B. Resources for Special Housing Needs Groups
1. Seniors
Seniors (persons 65 years of age and older) typically prefer to stay in their own homes as long as possible. If family members are nearby, they can also assist with basic care needs, enabling seniors to remain in their homes longer. However, this is not always possible. Senior Network Services helps match seniors in shared housing arrangements. In addition, the City partners with Habitat for Humanity Monterey Bay in the My House My Home (MHMH) program where Habitat works with a senior homeowner to build an accessory dwelling unit (ADU) on their property to provide either a place for the senior to downsize into or a rental unit to provide the additional
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supplementary income needed for them to remain in their current home. Almost 70% of senior householders own their homes.
Additional resources are available for seniors throughout the community, including:
• Senior Center at London Nelson Community Center: provides elderly with social network opportunities through a variety of activities such as computer classes, social events, and weekday lunches.
• The Market Street Senior Center: located in a City-owned building at 222 Market Street, also provides activities and programs for seniors.
• Housing Choice Voucher Program: The Housing Choice Voucher (HCV) program provides subsidies to low-income, senior, and disabled households at varying levels based on household income. Through the Housing Authority of the County of Santa Cruz, Santa Cruz residents may receive HCV voucher assistance.
• Other resources include:
o Home delivery by Meals on Wheels.
o Advocacy, Inc. provides a Long‐Term Care Ombudsman Program and the Patients’ Rights Advocate Program for seniors and disabled individuals living in residential care facilities.
o ParaCruz senior transportation service.
London Nelson Community Center Senior Computer Class
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2. Persons with Disabilities
The County of Santa Cruz Human Resources Agency coordinates Federal, State, and County government funding for programs and services for disabled populations in Santa Cruz. The following are supportive housing options for persons with psychiatric disabilities:
• Grace Commons: 13 units of supportive housing operated by the Encompass Community Services.
• Other Encompass Housing: Scattered site housing with support services including services coordinators, county coordinators and peer support.
• Darwin House: a 15-bed transitional Social Rehabilitation Program operated by Front Street Inc. is designed to prepare people for success in a more independent living. • Front St. Residential Care: a 44-bed adult facility serving individuals with mental disabilities. • Water Street Apartments: a 41-unit affordable development that provides housing for very low- and low-income individuals and families. Eight (8) units are reserved for disabled persons, with a preference for individuals who would benefit from developmental disability support services provided by Housing Choice and San Andreas Regional Center. • 36 Redwood Commons project: affordable housing for the physically disabled designed to be 100 percent wheelchair accessible. The development includes 13 units that are affordable to extremely low- and very low‐income persons. Priority is given to mobility impaired individuals and their caregivers.
• 314 Jessie Street: a 50-unit, 100 percent affordable supportive multifamily development to replace a 14-unit apartment complex. The project includes 48 units for very-low-income households and 2 manager units.
A network of non‐profit organizations serves the disabled population. Social services that receive City assistance include:
• Doran Center for the Blind and Visually Impaired.
• Central Coast Center for Independent Living.
• Liftline (Community Bridges): Provides transportation services. • Meals On Wheels (Community Bridges): Provides a daily visit and a nutritious meal. In addition, Santa Cruz Metro’s ParaCruz program provides transportation services for persons with disabilities.
Lastly, persons living with HIV/AIDS in the City have access to the following resources and housing:
• Federal EIS Program/HIV Early Intervention Services Program: Federal program that funds a variety of medical, mental health, nutrition, and dental services. • CARE Team/Community Advocacy Resources Team: Assists in accessing a variety of resources; provides nurse and case management, which includes assistance with medication, medication adherence, and facilitate doctor visits. Social workers conduct psychosocial assessments, follow up and referrals into appropriate mental health services. • Santa Cruz AIDS Project (SCAP): Provides referrals and advocacy to legal services, assistance in obtaining permanent housing, financial assistance in order to maintain
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permanent housing, food bank, benefits advocacy, and financial assistance with insurance co‐pays.
• Pearlman House: Four‐bed transitional housing program for persons with HIV/AIDs.
3. Persons Experiencing Homelessness
The City of Santa Cruz has a long history of countywide collaboration with Santa Cruz County, its cities, and nonprofit organizations to prevent and end homelessness through the provision of housing and services to persons experiencing homelessness and those at immediate risk of homelessness. A wide range of homeless assistance programs are implemented to form a coordinated, countywide Continuum of Care (CoC) system, which works to resolve the crisis of homelessness, to house people as quickly as possible, and meet service needs along the way.
Homeless housing facilities within the City of Santa Cruz include emergency shelters, transitional housing programs, rapid rehousing (RRH) programs, and permanent supportive housing (PSH) programs. Homeless-targeted supportive service programs include outreach and engagement, extreme weather shelter (seasonal), housing location assistance, health services, employment assistance, substance abuse recovery, legal aid, mental health care, Veteran services, youth and transition-age youth (TAY) services, youth host homes, public assistance benefits and referrals, family support and childcare, domestic violence support, personal good storage, personal care/hygiene services, parking programs, and ID assistance. The City allocated a total of $4 million from the General Fund in 2022 for homelessness services, prevention, and cleanup, in addition to expenditures from State and federal funding. The City is also investing substantial police and fire resources in response to homelessness-related concerns for housed and unhoused members of the community.
Table F-1: Facilities and Housing Targeted to Homeless Households (2019) Type of Homeless
Person/Household Served
Emergency Shelter Beds
Transitional
Housing Beds
Permanent
Supportive
Housing Beds Year-Round Beds
Voucher/
Seasonal/
Overflow Beds
Households with Adult(s)
and Child(ren) 117 0 76 0
Adult-Only Households 105 110 56 22
Chronically Homeless
Households 0 0 0 0
Veterans 12 0 33 0
Unaccompanied Youth 0 17 2 0
Source: 2019 Santa Cruz County Housing Inventory Chart (HIC) – the numbers report includes only HIC bed inventory with site addresses in the City of Santa Cruz, and in the case of scattered tenant-based RRH and PSH, an extrapolation of the number of beds in the City of Santa Cruz.
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Three - Year Homelessness Response Action Plan
The 2022 Homelessness Response Action Plan
provides “a roadmap for working to proactively
address individual needs and community impacts
related to homelessness,” says City Manager Matt
Huffaker. The Plan focuses on the values of
collaboration, health, safety, economic vitality,
practicality, resource stewardship, and transparency.
The Plan also details specific actions the City will take under the following topic areas:
• Building partnerships and capacity
• Permanent affordable and supportive housing
• Basic support services
• Care and stewardship
• Community safety
City Overlook Emergency Shelter
The City Overlook Emergency Shelter is a tent-based managed camp located on the National Guard Armory property and operated by the Salvation Army. The City funds this 24/7 shelter with two meals per day, shower facilities, 135 private (60 interior and 75 outside) tent-spaces, and transportation to and from the site. As a low barrier site, it allows pets, possessions, and partners.
River Street Transitional Camp
The River Street Transitional Community Camp provides 27 tent spaces on City-owned property.
This City-funded camp provides access to basic services such as showers, cooking facilities, and staff to provide daily oversight and support. Persons staying at the camp are required to meet with City staff once a week and work with them to complete an Individual Service Plan, which helps identify steps to move towards more stable, permanent, and affordable housing. The camp is also low barrier and allows pets, possessions, and partners.
Safe Parking Program
The City has also developed a 3-tier safe parking program for people residing in oversized vehicles to park safely overnight.
• Tier 1: Emergency Overnight Parking – offers short-term access to overnight parking when individuals need an immediate place to stay before they can register for the Tier 2 program.
Trash and hygiene facilities are available.
• Tier 2: Night-Only Parking Program – offers access to overnight parking for up to 30 days, with extensions granted when capacity allows. Program parking spots are located in City operated lots and participants are given permits to display on windshields that match designated parking spaces. Trash and hygiene facilities are available at overnight parking sites.
• Tier 3: 24/7 Parking Program – provides 24/7 parking, plus more stability through support services. The program has capacity for 15 or more oversized vehicles and provides
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participants access to hygiene services, electrical charging, transportation to and from the program site, and connections to support services, including housing navigation services.
Additional Services and Facilities
The following lists services and facilities in place to address the needs of persons experiencing homelessness:
• Housing Matters: Is the City’s and the County’s largest provider of services for persons experiencing homelessness. The City owns approximately two-thirds of the site and leases it to Housing Matters at below-market rates. Programs located on its Coral Street campus include the following:
o The Paul Lee Loft (PLL) – 30- to 90‐day 40 bed emergency shelter. o Rebele Family Shelter (RFS) – 180-day emergency shelter for 28 households (up to 90 individuals) with children, also providing case management, parenting education, counseling, arts enrichment programs, and after school supportive programs.
o Page Smith Community House (PSCH) – transitional housing and rapid rehousing (RRH) program up to 18 months for an estimated 40 individuals. PSCH also provides intensive case management services.
o The Recuperative Care Center (RCC) – serves up to 12 homeless adults through a partnership with HOUSING MATTERS, the County Health Services Agency, and local healthcare providers.
o 180/2020 – a multi‐agency initiative to provide the chronically and medically vulnerable homeless with permanent supportive housing.
o CalFresh Employment Training Project – provides intake, assessment, case management, and employment services to homeless clients. o Hygiene Bay – Shower facilities installed at Housing Matters. Open 10am-2pm, seven days a week. Restroom facilities in the same space are open to the public 24/7. The City funded a $1.3 million rehabilitation of the hygiene bay that was competed in March 2023.
o Youth RRH Program – YHDP-funded RRH program for youth and young adults • City Homelessness Response Team: The City funds a variety of positions that provide direct assistance to people experiencing homelessness and indirect assistance through coordination with the CoC, County, non-profits, and others, including but not limited to a Deputy City Manager, Homelessness Response Manager, Homelessness Response Coordinator, three outreach workers (two full-time equivalent), and many individuals who assist with daily response efforts as part of the encampment assessment and management team.
• Encompass Community Services (ECS): Encompass is a non-profit organization with about forty programs county-wide providing services in behavioral health, family and social wellbeing, early childhood education, housing, and more. They provide access to housing, counseling for individuals, families, and youth, substance abuse recovery programs, Head Start and pre-k, re-entry services, and health and financial services. Encompass also operates the Transition-Aged Youth (TAY) Drop-In Center, which assists current and former
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foster, probation placement, and homeless youth ages 15-24 in building skills, self-esteem, and a support system. The Drop-In Center is equipped with a cozy living room, kitchen, laundry facility, and computer lab, and offers counseling services, food, and clothing donations, as well as a daily hot meal.
• The Homeless Persons Health Project (HPHP): also located on the Housing Matters Campus, HPHP furnishes health and related services. In addition to medical care and treatment, HPHP provides information and referrals, alcohol and drug use support, health education, homelessness prevention and rapid re‐housing, and case management. HPHP also coordinates and provides wraparound health and social services in the following PSH projects all targeting chronically homeless, medically vulnerable adults:
o 41-bed Shelter Plus Care Program (partnering with the Housing Authority) o 42-bed scattered site MATCH program (partnering with Front St., Inc.) o 11-bed Nuevo Sol SRO (partnering with South County Housing). • Downtown Santa Cruz Outreach: Two City-funded full‐time Downtown Outreach Workers work with homeless individuals to connect them with resources seven days per week, ten hours per day.
• HERO: The Homeless Engagement Resources Officers: links two police officers with the County’s Homeless Outreach, Proactive Engagement Services (HOPES) Team, to better engage homeless people on the streets and connect them with appropriate behavioral health and other services.
• County Office of Education Students in Transition Project: provides a homeless project specialist to ensure educational rights and protections for children and youth experiencing homelessness. The program provides services for 1,500 students who are homeless and serves as an educational liaison for all public and private districts and schools. • Community Action Board Shelter Project: daily hotline with information and referral to shelters and other services. The Project also provides a countywide homeless housing and service resource guide, voicemail for homeless people, emergency motel vouchers for medical emergencies, and rental/eviction/foreclosure assistance. The Project also partners with County Office of Education (above) to implement the Youth Homelessness Response Team, providing an integrated services team approach for youth experiencing homelessness.
• Association of Faith Communities (AFC): Faith-Based safe parking program for persons living in vehicles.
• Other Population-Specific Shelters:
o Pagett Center, 12 beds for homeless veterans;
o Siena House, 10 beds for pregnant/newly parenting women; o Monarch Services, Mariposa House 18 beds for women/children fleeing domestic violence;
o Jesus, Mary, and Joseph Home, 12 beds families with children and terminally ill persons.
• Homeless Garden Project: job training and transitional employment for 30 to 50 homeless people in organic gardens and related enterprises.
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• Downtown Streets Team: job training and transitional employment in streets cleanup and community beautification projects.
• HUD‐Veterans Affairs Supportive Housing Program (VASH): combines HUD rental assistance for 200 homeless veterans with case management and clinical services provided by a Veterans Affairs caseworker.
• Supportive Services for Veterans Families (SSVF): prevention and rapid rehousing services programs provided by Housing Matters (above) and the Veterans Resource Center. • Families in Transition (FIT): operates a series of prevention and RRH programs for families experiencing homelessness, funded by HUD HCV, HUD CoC, County CHAMPS Program, CalWorks Welfare-to-Work, and the California Bringing Families Home Program.