ARTICLE
State Legislation Can Unlock a Revenue Source to Help Address the City of Santa Cruz’s Affordable Housing Shortage Many local residents are looking high and low for any available and affordable housing in the City of Santa Cruz. The list of options is very small for those on limited income. Government subsidized housing applicants have waited years, but wait lists remain at a standstill. Disillusioned by the unavailability of living in Santa Cruz, many workers of our local businesses resort to living miles away in other cities or outside the county. This produces lengthy commutes, hours lost to drive time take away from family time and creates an unhealthy lifestyle for too many workers in our region. Businesses have noticed the disparity between the wages offered in Santa Cruz and the high living costs that go with it. The housing shortage at all income levels hinders our community’s economic viability. Those workers in the service and tourism industry suffer the most. We all agree that Santa Cruz is a wonderful place to work, live and play, yet, in the last few years many service industry workers, students and senior citizens in our community have become increasingly barred from being true residents of Santa Cruz. The current housing crisis has made it nearly impossible for people who work long days to support their families and yet they must start and end each workday with untenable commutes. If given the choice, those hard-working people would love to reside closer to their workplace and make Santa Cruz their home. Former Santa Cruz Mayor Don Lane, a long-time policy advocate for housing and homeless solutions, has tirelessly turned up every possible stone to create more opportunities. On Tuesday of this week he penned this guest commentary: (view here) Don writes explicitly about the affordable housing and homeless process. Where can we build these units: “If we can go through this process and then (when all the criteria and standards are established) select sites based only on these criteria, we will have a foundation for community support for moving forward. This will not eliminate the possibility of some neighbor opposition; however, it will offer local government and the broader community compelling rationale for moving forward (and for supporting siting decisions) even if there is some nearby opposition.” But there is more to the story as we know. Time and time again we have expressed our deep concern that Santa Cruz and Santa Cruz County has one of the least affordable housing markets in the nation. Just this past week, the median priced home in Santa Cruz County hit a record high - Santa Cruz Sentinel reporter, Elaine Ingalls writes (view here) It is clear that we need strong community action and public sector leaders to step up to develop affordable housing for the working class of Santa Cruz. The Santa Cruz County Chamber of Commerce has been working with the business community, city leaders and housing advocates in addressing this issue that puts a strain in the stability and growth of our city. Fortunately, some of our public sector leaders have been pushing to implement change. Our state Assembly member Mark Stone has introduced Assembly bill called AB 411, which aims to increase and improve affordable housing in the City of Santa Cruz. AB 411 is one solution to help the City of Santa Cruz unlock a funding source for affordable housing. The bill passed the state Assembly floor last month and now makes it way to the state Senate were it awaits another legislation stop in the Senate Committee on Funding and Housing. What does AB 411 do? AB 411 will allow the City of Santa Cruz to access over $16 million in funds that were previously inaccessible, for the purpose of increasing our ability to provide affordable housing in Santa Cruz. Assembly member Stone’s bill will unlock a local funding source critical to produce an affordable housing project that requires multiple funding options to actually make a project possible. Specifically, this bill authorizes the City of Santa Cruz to use bond proceeds that are required to be used to (release) bonds issued by the former redevelopment agency (RDA), to increase, improve and preserve affordable housing and facilities for homeless persons, so long as those proceeds are used in a manner consistent with any original bond covenant. The bill specifies: 1. Up to 10% of the bond proceeds may be used for affordable housing for persons or families of moderate income. 2. The remainder of the bond proceeds must be expended consistent with the requirements of the Low-and Moderate-Income Asset Fund. 3. If the City of Santa Cruz uses remaining bond proceeds for affordable housing and facilities for homeless persons, then the Last and Final Recognized Obligation Payment Schedule (ROPs) must be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund (RPTTF) to the successor agency of the City of Santa Cruz for purposes of paying down principal and interest on the bonds. You can read the legislative analysis here:(Assembly Floor Analysis). The Santa Cruz County Chamber of Commerce supports AB 411 to increase affordable housing projects within the City. You can read the Chamber’s letter of support here:(Chamber Letter Of Support). We would like to thank Assembly member Stone for taking the lead to address Santa Cruz’s housing crisis with this legislative fix. We encourage our readers of this weekly eNews to support his efforts. His leadership for the City of Santa Cruz can add one additional tool to the affordable housing toolbox to ensure the growth of our community with the housing stock we need. To encourage the continued growth and stability of Santa Cruz, we must address the root of our problems: creating more affordable housing for workers that are in integral part our economy.
State Legislation Can Unlock a Revenue Source to Help Address the City of Santa Cruz’s Affordable Housing Shortage
Many local residents are looking high and low for any available and affordable housing in the City of Santa Cruz. The list of options is very small for those on limited income. Government subsidized housing applicants have waited years, but wait lists remain at a standstill. Disillusioned by the unavailability of living in Santa Cruz, many workers of our local businesses resort to living miles away in other cities or outside the county. This produces lengthy commutes, hours lost to drive time take away from family time and creates an unhealthy lifestyle for too many workers in our region.
Businesses have noticed the disparity between the wages offered in Santa Cruz and the high living costs that go with it. The housing shortage at all income levels hinders our community’s economic viability. Those workers in the service and tourism industry suffer the most.
We all agree that Santa Cruz is a wonderful place to work, live and play, yet, in the last few years many service industry workers, students and senior citizens in our community have become increasingly barred from being true residents of Santa Cruz. The current housing crisis has made it nearly impossible for people who work long days to support their families and yet they must start and end each workday with untenable commutes. If given the choice, those hard-working people would love to reside closer to their workplace and make Santa Cruz their home.
Former Santa Cruz Mayor Don Lane, a long-time policy advocate for housing and homeless solutions, has tirelessly turned up every possible stone to create more opportunities. On Tuesday of this week he penned this guest commentary: (view here) Don writes explicitly about the affordable housing and homeless process. Where can we build these units: “If we can go through this process and then (when all the criteria and standards are established) select sites based only on these criteria, we will have a foundation for community support for moving forward. This will not eliminate the possibility of some neighbor opposition; however, it will offer local government and the broader community compelling rationale for moving forward (and for supporting siting decisions) even if there is some nearby opposition.”
But there is more to the story as we know. Time and time again we have expressed our deep concern that Santa Cruz and Santa Cruz County has one of the least affordable housing markets in the nation. Just this past week, the median priced home in Santa Cruz County hit a record high - Santa Cruz Sentinel reporter, Elaine Ingalls writes (view here)
It is clear that we need strong community action and public sector leaders to step up to develop affordable housing for the working class of Santa Cruz. The Santa Cruz County Chamber of Commerce has been working with the business community, city leaders and housing advocates in addressing this issue that puts a strain in the stability and growth of our city.
Fortunately, some of our public sector leaders have been pushing to implement change. Our state Assembly member Mark Stone has introduced Assembly bill called AB 411, which aims to increase and improve affordable housing in the City of Santa Cruz.
AB 411 is one solution to help the City of Santa Cruz unlock a funding source for affordable housing. The bill passed the state Assembly floor last month and now makes it way to the state Senate were it awaits another legislation stop in the Senate Committee on Funding and Housing.
What does AB 411 do? AB 411 will allow the City of Santa Cruz to access over $16 million in funds that were previously inaccessible, for the purpose of increasing our ability to provide affordable housing in Santa Cruz. Assembly member Stone’s bill will unlock a local funding source critical to produce an affordable housing project that requires multiple funding options to actually make a project possible. Specifically, this bill authorizes the City of Santa Cruz to use bond proceeds that are required to be used to (release) bonds issued by the former redevelopment agency (RDA), to increase, improve and preserve affordable housing and facilities for homeless persons, so long as those proceeds are used in a manner consistent with any original bond covenant. The bill specifies: 1. Up to 10% of the bond proceeds may be used for affordable housing for persons or families of moderate income. 2. The remainder of the bond proceeds must be expended consistent with the requirements of the Low-and Moderate-Income Asset Fund.
3. If the City of Santa Cruz uses remaining bond proceeds for affordable housing and facilities for homeless persons, then the Last and Final Recognized Obligation Payment Schedule (ROPs) must be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund (RPTTF) to the successor agency of the City of Santa Cruz for purposes of paying down principal and interest on the bonds. You can read the legislative analysis here:(Assembly Floor Analysis). The Santa Cruz County Chamber of Commerce supports AB 411 to increase affordable housing projects within the City. You can read the Chamber’s letter of support here:(Chamber Letter Of Support).
We would like to thank Assembly member Stone for taking the lead to address Santa Cruz’s housing crisis with this legislative fix. We encourage our readers of this weekly eNews to support his efforts. His leadership for the City of Santa Cruz can add one additional tool to the affordable housing toolbox to ensure the growth of our community with the housing stock we need.
To encourage the continued growth and stability of Santa Cruz, we must address the root of our problems: creating more affordable housing for workers that are in integral part our economy.