Press Release: Workforce Housing Solutions 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 Solutions Act, a measure planned for the November 2025 ballot in the city of Santa Cruz. The Workforce Housing Solutions 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 Solutions 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.
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