Santa Cruz Sentinel: Signature-gathering campaign launches for Santa Cruz workforce housing initiative

Executive Director of Housing Santa Cruz County Elaine Johnson got the crowd pumped up about the new affordable housing measure called the Workforce Housing Affordability Act. (Aric Sleeper – Santa Cruz Sentinel)

SANTA CRUZ — A group of about 30 community members and officials gathered in the paseo of the Cedar Street Apartments in downtown Santa Cruz Thursday afternoon to launch the signature-gathering campaign for the Workforce Housing Affordability Act, a new ballot measure intended to collect funds for affordable housing projects in the city.

The potential ballot measure is the result of about two years of effort by a coalition of community members and organizations that began with a series of community meetings facilitated by the city.

“What you’re going to hear about today is: How did this all come together,” said Santa Cruz Mayor Fred Keeley. “We had some community meetings at the front end, hosted by the city. That was designed to get folks together and get them thinking about this, and then hand it off to our good friends at Housing Santa Cruz County. They conducted meeting after meeting, public meetings and conversations with various elements of the community.”

Housing Santa Cruz County Executive Director Elaine Johnson leads the campaign for the potential ballot initiative. If the backers can gather 3,620 signatures by May 17, it will qualify for the city of Santa Cruz’s November 2025 election and would require a simple majority vote to pass into law.

“When I woke up this morning I was thinking about the process that led us here today — two years,” said Johnson. “It was two years of engagement with the community and city staff.”

Johnson thanked the many community members who had a hand in the measure and worked to get the gathering excited about affordable housing.

“It’s going to take all of us to get over this finish line,” said Johnson. “And I can tell you, I feel it already that this is going to be a success.”

The Workforce Housing Affordability Act has two components. If the initiative makes it on the November ballot and is approved by voters, it would enact an annual parcel tax of $96 per parcel in the city of Santa Cruz. According to the text of the measure, “Exemptions would be available to qualifying low-income households, low-income senior households, affordable housing projects, schools, religious institutions and other entities that are otherwise exempt from property taxes.”

The initiative also includes a real property transfer tax for homes sold at the price of $1.8 million or more. The tax increases incrementally from 0.5% to 2%, dependent on the home’s sale price and caps at $200,000. The act would include parcel tax exemptions for seniors and low-income homeowners, and real estate transfer tax exemptions for families transferring ownership of property within immediate family.

The potential initiative is estimated to raise $5 million each year for the city’s affordable housing trust fund and would sunset in 20 years. About two-thirds of the $5 million would be collected from the real estate transfer component of the measure, and one-third from the parcel tax.

About 90% of the total revenue raised would be used to bolster affordable housing projects and programs, and 10% of the funds would be used to prevent evictions and address homelessness. A maximum of 3% would be used for “community oversight, accountability and administrative expenses in implementing the measure.”

The signature-gathering launch event featured a panel of the measure’s supporters including Marv Christie, owner of Anderson Christie Real Estate in Downtown Santa Cruz.

“The community-led process developing this initiative was invaluable, allowing input from many voices that are impacted,” said Christie. “We all know that money alone will not solve the problems but we also know that solving a problem of this magnitude requires major investment. This is a community problem that needs a community level of support and asking property owners to share in that seems like a reasonable request.”

For information, visit workforcehousingnow.net.

Press Release: Workforce Housing Affordability Act Advocates Launch Signature-gathering Effort for City of Santa Cruz Ballot Initiative

Measure aims to increase the supply of workforce housing, prevent evictions, preserve senior housing, establish shelters and gain new access to state and federal housing funds 

SANTA CRUZ, Calif. — Responding to the ongoing and acute housing crisis in Santa Cruz, a broad coalition of local housing, education, labor and business advocates and leaders convened by nonprofit Housing Santa Cruz County today launched the signature-gathering effort for the Workforce Housing Affordability Act, a measure planned for the November 2025 ballot in the city of Santa Cruz. The Workforce Housing Affordability Act will deliver needed community benefits, including: 

• Investment to construct new homes for lower-income workers, especially downtown and in transit-rich areas in the city of Santa Cruz.  

• Funding to prevent evictions, preserve senior housing and establish housing-focused shelters.  

• Greater access to state and federal workforce housing and supportive housing funds. 

• Reduction in vehicle miles traveled by workers by locating housing closer to jobs, which helps reduce production of greenhouse gases by motor vehicles – the leading contributor to climate change in Santa Cruz County. 

 The measure will raise approximately $5 million annually for a period of 20 years through an innovative hybrid tax model that includes a real estate transfer tax that will apply to property sales of $1.8 million or more, and a modest parcel tax.   

Funds raised by the measure will be managed through the City of Santa Cruz’s Affordable Housing Trust Fund, which has an outstanding track record of creating and preserving housing for Santa Cruz residents who have a lower-than-average income. In the past five years, the fund has helped create approximately 400 affordable apartments. 

Speakers at the launch event included: 

• Fred Keeley, Santa Cruz Mayor 

• Elaine Johnson, Executive Director, Housing Santa Cruz County 

• Kyle Kelley, Trustee, Santa Cruz City Schools 

• Barbara Meister, COPA 

• Marv Christie, Owner/President, Anderson Christie Real Estate 

• Elizabeth Madrigal, Policy Manager, Midpen Housing 

• Liam McLaughlin, Lead Organizer, SEIU 521 

• Jorian Wilkins, Executive Director, Downtown Association of Santa Cruz 

Additional Background 

The parcel tax will be $96 per parcel annually ($8 per month) in the city of Santa Cruz.  

The real property transfer tax will apply to transaction prices of $1.8 million or more:  

• 0.5% tax will apply to the price paid over $1.8 million, but less than $2.5 million 

• 1% tax will apply for the price paid over $2.5 million, but less than $3.5 million 

• 1.5% tax will apply for the price paid over $3.5 million, but less than $4.5 million 

• 2% tax would apply for the value paid over $4.5 million, subject to a cap of $200,000 

• Annually, the thresholds will be increased by the change in the consumer price index for the prior year 

Nearly 90% of revenue will be allocated to affordable housing projects and programs, with 10% to be allocated to programs and facilities to prevent and address homelessness. 

Revenue from the real estate transfer tax will represent approximately two-thirds of funds raised, with the remainder coming from the parcel tax. 

The Workforce Housing Affordability Act will include parcel tax exemptions for seniors and low-income homeowners, as well as real estate transfer tax exemptions for families transferring ownership of property within an immediate family.    

Learn more at www.workforcehousingnow.net.  

###