Santa Cruz County Grand Jury • 2026-2027

Santa Cruz County's Housing Crisis

Published: June 22, 2026 19 pages
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Findings 17 findings

F1
regulatory constraints that are most limiting to construction
F2
adjustments that would materially increase the number of units being built
F3
the extent to which the County’s current approach can actually achieve its housing targets The risks of inaction are substantial. Continued underperformance will expose the County to increasing State intervention, including further loss of discretionary control over land use decisions. More importantly, it will perpetuate the ongoing housing shortage which is already pricing out large segments of the County’s workforce and risks fundamentally altering the character of the community. The County faces a clear choice: it can continue to rely on a framework that achieves compliance on paper while falling short in practice, or it can take bold action to align its policies with economic reality and enable housing to be built at scale. The tools to do so are available. What is required is the willingness to act. Absent strong leadership willing to use the tools at their disposal, Santa Cruz County will continue to merely satisfy statutory requirements while failing to address the housing crisis confronting its residents and workers. FINDINGS
F4
F1. Over the past 40 years, the County of Santa Cruz has adopted land-use and growth- management policies designed to limit the pace and location of development. These policies have limited housing production, exacerbating severe housing affordability challenges for residents and workers who are increasingly priced out of living in the County.
F5
F2. Despite adopting a State-certified Housing Element, the County of Santa Cruz has fallen significantly behind on progress toward permitting sufficient housing production to meet its Regional Housing Needs Allocation targets. As a result, the County is unlikely to adequately address the housing needs of County residents and workers increasingly priced out of living in the County.
F6
F3. The County of Santa Cruz has failed to create a housing plan likely to generate sufficient housing production to meet its Regional Housing Needs Allocation targets. As a result, the County faces an increased risk of State-imposed consequences. 12
F7
F4. The County of Santa Cruz has not conducted and published a comprehensive financial feasibility analysis of housing development in the County. As a result, the extent to which zoned capacity will ultimately be converted into new housing units is not reliably known.
F8
F5. Because the County of Santa Cruz has not performed a comprehensive financial feasibility analysis, the County lacks an important tool to identify and remedy regulatory constraints impeding its ability to achieve its housing goals.
F9
F6. The failure of the County of Santa Cruz to publish a comprehensive financial feasibility analysis means that the public is deprived of a concrete way to judge the County’s use of its regulatory power to address the housing crisis.
F10
F7. The County of Santa Cruz has not created an easily accessible public dashboard for tracking progress towards meeting its Regional Housing Need Allocation. As a result, the public must piece together data from multiple sources to understand what progress is being made to meet the County’s housing goals.
F11
F1. Over the past 40 years, the County of Santa Cruz has adopted land-use and growth- management policies designed to limit the pace and location of development. These policies have limited housing production, exacerbating severe housing affordability challenges for residents and workers who are increasingly priced out of living in the County.
F12
F2. Despite adopting a State-certified Housing Element, the County of Santa Cruz has fallen significantly behind on progress toward permitting sufficient housing production to meet its Regional Housing Needs Allocation targets. As a result, the County is unlikely to adequately address the housing needs of County residents and workers increasingly priced out of living in the County.
F13
F3. The County of Santa Cruz has failed to create a housing plan likely to generate sufficient housing production to meet its Regional Housing Needs Allocation targets. As a result, the County faces an increased risk of State-imposed consequences. 12
F14
F4. The County of Santa Cruz has not conducted and published a comprehensive financial feasibility analysis of housing development in the County. As a result, the extent to which zoned capacity will ultimately be converted into new housing units is not reliably known.
F15
F5. Because the County of Santa Cruz has not performed a comprehensive financial feasibility analysis, the County lacks an important tool to identify and remedy regulatory constraints impeding its ability to achieve its housing goals.
F16
F6. The failure of the County of Santa Cruz to publish a comprehensive financial feasibility analysis means that the public is deprived of a concrete way to judge the County’s use of its regulatory power to address the housing crisis.
F17
F7. The County of Santa Cruz has not created an easily accessible public dashboard for tracking progress towards meeting its Regional Housing Need Allocation. As a result, the public must piece together data from multiple sources to understand what progress is being made to meet the County’s housing goals.

Recommendations 6