Lookout Santa Cruz: Guest Commentary | Justin Cummings: Yes on Santa Cruz’s Measure C – we need solutions for affordable housing

By Justin Cummings

For the third year in a row, Santa Cruz County has been ranked the most expensive rental market in the nation. While many say the solution is to just build more housing, the reality is that we have been doing just that and the price just keeps going up, largely because we’re not building enough of the right kind of housing.  

In the distant past, the cost to purchase and rent many homes in Santa Cruz was considered reasonable for middle-income earners. With increased housing speculation from the real estate industry, increased awareness of Santa Cruz through the internet, the Silicon Valley boom as one of the world’s largest economic drivers, increased population at UC Santa Cruz, and conversion of housing to vacation rentals, the squeeze on housing demand in Santa Cruz has choked out most middle-income and working-class families. 

According to data from the U.S. Department of Housing and Urban Development, since 2015, fair market rents in the Santa Cruz-Watsonville area have skyrocketed up 185% for a studio, 148% for a one-bedroom and 140% for a two-bedroom apartment. These rent increases have far outpaced local wages, driving displacement, overcrowding and instability for working families, students and seniors alike.

We all agree that Santa Cruz needs more affordable housing — but the hard truth is that the market will never deliver it. The only way communities like ours get affordable housing is through regulation and subsidy. Developers build what’s profitable; affordability happens when we require it, preserve it or help pay for it.

So, what do we mean by affordable housing? 

The affordability criteria are based on income as a percentage of the area median income (AMI).  Based on information provided by the Housing Authority of Santa Cruz County, the most recent affordable housing income categories are defined as low (approximately 80% of AMI or an annual income not to exceed $111,110), very low (~50% of AMI or an annual income not to exceed $69,250), or extremely low (~30% of AMI or an annual income not to exceed $41,550).

In 1979, the voters of Santa Cruz (unlike many other communities) passed Measure O, which required that any multi-unit housing built with over five units, 15% of those units had to be deed-restricted affordable for low- or very low-income households.  In November 2020, Santa Cruz City Councilmember Sandy Brown and I worked to increase that percentage by 5% to a 20% requirement, with the additional 5% to be met by designating those units for individuals who are Section 8 voucher holders or to be rented at moderate rates in the absence of Section 8 voucher holders. These policies have helped to create more affordable housing opportunities for low-income individuals. But, it still has not proven enough.     

That’s why passing Measure C on the November ballot is so important. It’s a local, reliable, community-based source of funding that will help Santa Cruz build and preserve affordable housing, prevent evictions and keep people housed.  

At $96 per year – roughly 26 cents per day –  the parcel tax and real estate transfer tax on properties sold over $1.8 million, the initiative is projected to raise between $2.5 and $5.5 million annually. 

By creating a dedicated local fund for affordable housing, we give Santa Cruz the ability to keep moving forward even when state or federal dollars fall short. As a local match, this funding source will also make us more competitive to access state and federal dollars to help build the housing our community desperately needs.

Most of the Measure C funds will go directly toward building and preserving affordable housing units. A portion will support emergency rental assistance, eviction prevention, and homelessness response programs — helping people get in and stay in housing. And just 3% of funds can be used for administration, ensuring nearly every dollar goes where it’s most needed.

Unfortunately, not everyone is acting in good faith. The local real estate lobby has introduced Measure B — a confusing, competing measure designed to split the vote and undermine Measure C. 

Don’t be fooled. Measure C is the real solution, carefully designed to provide meaningful, lasting help for our community. Measure B is a distraction meant to protect profits, not people.

Measure C is the right vote for housing, for fairness, and for the future of our community.

Justin Cummings currently serves as District 3 county supervisor and is the former chair and Central Coast representative for the California Coastal Commission. He is a former mayor and councilmember for the City of Santa Cruz. He has a Ph.D. in ecology and evolutionary biology from UC Santa Cruz, is a champion for environmental protection and for renter protections and affordable housing. He is a renter.