Grand Jury Attn: Civil Grand Jury Response (Housing Our Workers) Emeline Nguyen Thu, Sep 7, 2023 at 12:46 Pm

While all city and county planning departments have demonstrated a good understanding of the new State housing laws and the need to facilitate more housing, the failure to do so in a timely manner has served to further decrease the availability of housing and further increase the need and cost of more housing. __ AGREE _X_ PARTIALLY DISAGREE __ DISAGREE Response explanation (required for a response other than Agree): The City of Santa Cruz was recently designated as a Prohousing community by the California Department of Housing and Community Development (HCD), one of only 30 communities in the state to receive this designation. As a Prohousing community, the City of Santa Cruz will receive priority consideration for funding programs administered by HCD, the primary state provider of affordable housing funding. This partnership with HCD is a testament to our unwavering commitment to creating accessible housing opportunities and underscores the effectiveness of our initiatives to support affordable housing development in our community. The City of Santa Cruz provides an annual update to the Council on housing legislation changes. With the many annual housing bills, cities and developers alike must be diligent in understanding the latest legislative changes. Even in doing so, the state Housing and Community Development Department and case law provide new interpretations and precedents. The pace of entitlements and construction in Santa Cruz has increased in recent years, partly due to the changes in state legislation and the City’s rapid incorporation of those changes into the daily narrative and development entitlement decisions. While the City has taken advantage of regulatory changes to facilitate housing production on properties it owns, the City is also dependent on the private sector to initiate housing production on private properties. The City’s up-to-date understanding of housing legislation does and will continue to facilitate housing production. The City will continue to remain diligent in staying knowledgeable about the latest legislative changes, interpretations, and case law.

With the planned growth of UCSC to 28,000 students, the potential demand for off campus housing for students, faculty and staff has the potential to make the affordable housing problem even worse. _X_ AGREE __ PARTIALLY DISAGREE __ DISAGREE Response explanation (required for a response other than Agree): Thus, it is critical for UCSC to provide on-campus housing for its growing student body and accompanying faculty and staff.

While all local municipalities have voiced support for prioritizing housing for local workers, only some of them have clear local preference guidelines that give some priority to local workers. Without clear guidelines and incentives, new housing is more likely to be purchased by those who do not live and work here. __ AGREE _X_ PARTIALLY DISAGREE __ DISAGREE Response explanation (required for a response other than Agree): While new housing can be purchased (or rented) by those who do not currently live and work in the County, it is the City’s experience in projects where the City is involved that the majority of housing does get purchased (or rented) by individuals already living or working in the area. That said, the City’s inclusionary housing ordinance gives preference to local residents, consistent with state and federal law. (Santa Cruz Municipal Code (“SCMC”) 24.16.045(6).) The City’s Zoning Code requires that local preferences for rental inclusionary units shall be given in the following priority order: a. Residents of the City of Santa Cruz for at least one year. b. Those employed in the City of Santa Cruz. c. Residents of the County of Santa Cruz for at least one year. d. Those employed in the County of Santa Cruz. (SCMC 24.16.045(7).) As consistent with state and federal law, the City’s inclusionary ordinance also gives preferences for ownership inclusionary units in the following priority order: a. Those who live or work in the City of Santa Cruz. b. Those who live or work in the County of Santa Cruz. (SCMC 24.16.045(7).) When it comes to market-rate residences that are not subject to the City’s affordability restrictions, the City cannot dictate to whom those residences are sold or rented. However, as noted above, the City’s local regulations set forth a clear preference for in- County workers and residents in the inclusionary units that are part of private developments. The City also requires the aforementioned local preferences in the housing projects to which the City provides financial support, as a condition of the City providing said support.

All municipalities are trying to identify and facilitate the building of housing projects, but most of that is done independently of the other municipalities or with outside partners. Since workforce housing and transportation gridlock is a county-wide problem, all county municipalities need to work more closely together and with property owners to develop housing solutions. __ AGREE _X_ PARTIALLY DISAGREE __ DISAGREE Response explanation (required for a response other than Agree): While representatives from the different jurisdictions can and do regularly learn from one another and collaborate on the best ways to grow across the region, particularly when it comes to planning for and requiring increased densities in areas close to transit and other daily needs, individual projects are typically best handled by the jurisdiction in which they are located. Although most specific housing projects are developed without the involvement of outside jurisdictions, there is coordination and communication between the jurisdictions when a city’s or the county’s land ownership occurs in another jurisdiction and with regards to transportation issues that cross jurisdictional boundaries. For example, the City regularly coordinates with the County to facilitate housing development, including affordable housing, on County-owned properties within the City, and the City coordinates with Scotts Valley regarding land the City owns in that jurisdiction. And the Regional Transportation Commission, Santa Cruz Metropolitan Transit, and Association of Monterey Bay Area Governments all work on regional transportation planning and implementation, and those organizations are all governed by local government officials. Planning Directors throughout the County also meet at least five times per year to collaborate on housing and other related issues. The Planning Department staff from countywide jurisdictions also collaborate through AMBAG meetings, trainings, discussions of state legislation, joint presentations, and various other communication streams.