I. Current State

There is a serious lack of affordable housing in Santa Cruz Comfy (SCC), as measured by the number of households which are either inadequately housed and/or spend a disproportionate share of income on housing payments and related housing costs. The reasons we many and complex, and defy simplistic analysis, but include disproportionately high property values in the county, an overly complicated delivery system (land use regulation, permit processes, funding mechanisms, banking rules, etc.), the perception by many investors and developers that them are more profitable types of development, and sometimes mixed community reaction to the whole issue (i.e. "Yes, we want it, but don't build it in my neighborhood"). There is a social stigma attached to affordable housing.

The existing housing stock does not reflect the demographics of the county, meaning the needs of seniors, single parent households, farm workers, the homeless, and the disabled, among others, are not being satisfactorily met by existing housing stock and current housing developments "in the works." Both private developers and public agencies experience a great deal of competition for limited funding. Financing opportunities for new and innovative housing developments such as co-housing or mixed use projects, are even more limited largely due to unfamiliarity with the opportunities they represent. Also, the University of California's current growth plans will impact the demand for affordable housing. Finally, in what is probably typical of most of California, housing is segregated from employment, shopping, and other services, which exacerbates traffic congestion, energy consumption, and pollution problems.

Local jurisdictions, including the county, we required by state law to evaluate local housing conditions and develop guidelines for future housing growth as part of their general plans, which me state mandated long range planning documents. All local jurisdictions have such guidelines in place, and update them every few years. In addition, local voter initiatives such as Measure J (passed in 1978) are demonstrations of community support for planned growth and affordable housing. There is much significant information contained in the general plans relative to the current state of housing in the county. For example, over 40% of the county's housing stock is 30 years of age or older, (most of which probably does not meet current state energy standards). Land at current allowable zoning densities could accommodate mother 20-30% more housing units. Approximately 25% of Watsonville's population lives in overcrowded conditions. A significant portion of SCC's work force is employed in the San Francisco Bay Area (18% in the 1980 census, and 17.2% at the time of the 1990 census). Vacancy rates in the county are typically lower than statewide averages. Also of note is the observation that some infrastructure components are reaching their limits, or exceeding acceptable service/population ratios, which places constraints on future housing development. Examples include some street capacities approaching their limits, water availability in some areas of SCC, and in the service sector, the lack of sufficient sheriffs deputies to adequately police unincorporated areas of the county,

II. Desired State

We can envision and work for a future in which every person in Santa Cruz Country lives in decent and affordable housing, where there is a feeling of safety and security. Neighbors support and care for each other. There is a true sense of family and community, and each of us feels that we belong and have a special role to play in the community. The structures, building materials, household products and appliances are nontoxic in nature, and housing is built with materials that are recyclable and/or biodegradable. Only as much energy is consumed and natural resources used as can be sustainably replaced. Cohousing opportunities abound and permaculture is becoming ever more prevalent. The demand for new housing is tempered by increased concerns about overpopulation, resulting in smaller sized families. Housing is placed to maximize the use of more energy efficient transportation systems. We see the development of gray water systems, passive solar construction, earth friendly landscaping, and bio-safe/appropriate technologies, along with the integration of lifestyles, living, and working situations.

The development process itself addresses the environmental concerns of the community without becoming an unreasonable time and cost burden. The costs of development are equitably allocated between the public and private sectors to reflect not only the traditionally known and accounted for costs of development but also to the greatest extent possible the hidden environmental and social costs.

III. Goals for the Year 2000

A. One of the county's most pressing needs is to provide affordable housing for all SCC residents, especially those in the low income categories. This includes housing for seniors, students, farm workers, single parent households, homeless households, those with physical and mental disabilities, and other special needs households currently residing in the county. New housing needs to be linked to existing and proposed transportation centers and corridors, and mixed use and high density developments need to be encouraged to minimize dependence on transportation systems and their associated energy and pollution problems.

B. Funding needs to be encouraged from both public and private sources for sustainable housing development, maintenance, and rehabilitation. The funding processes need to be simplified and more sympathetic toward the long term cost benefits of sustainable housing development. All parties who are working to provide housing, including businesses, organizations, individuals, local, state and federal agencies, need to be encouraged and supported. This includes the sharing of information about available opportunities and resources. We need community education that addresses resistance to housing projects, the implications of inadequate housing, and better understanding of non-traditional households.

C. We support economic development and programs that encourage a livable wage scale in order to increase job opportunities and provide adequate wages, allowing those who work in our community to be able to afford to live here. Finally we need to balance housing needs with preserving agricultural lands, environmental values, and infrastructure restraints.

IV. What Has Been Done

A. Local land use regulations are beginning to incorporate sustainable design practices. Examples go back as far as County Measure J, approved by the voters in 1978, which mandates the preservation of agricultural land, preserving a distinction between "urban" and "rural" areas, encouraging development in "urban" areas while discouraging development in "rural" areas (acknowledgment of the increased infrastructure costs of developing "rural" areas), population growth limits, the provision of affordable housing, and the preservation of the county's natural resources. Voters of other local jurisdictions have expressed support for similar local measures.

More recently, general plans of local jurisdictions have incorporated guidelines and provisions for sustainable design and development in their land use and housing elements. Examples include zoning ordinance revisions designed to remove perceived constraints to mixed use development, density bonuses for developments that include a higher percentage of affordable housing, and provisions to allow second units (often called "granny units") in areas zoned single family residential.

B. Local -jurisdictions are evaluating their permit processes and looking for ways to make them more efficient and responsive to the needs of the community. The objectives are to eliminate unnecessary regulation and reduce the costs of development without sacrificing community concerns, and create better incentives for developers to produce affordable housing.

C. Local jurisdictions have initiated "outreach" programs to educate the public to affordable housing opportunities. This includes both those in need of affordable housing and those in a position to provide affordable housing.

D. Local architects and other design professionals are beginning to incorporate sustainable design practices into local projects. In conjunction with this effort, the American Institute of Architects began several years ago devoting a significant share of its resources to researching and publishing on a periodic basis information on construction materials and their use relative to sustainable design practices. This publication is known as the Environmental Resource Guide" and is available to all architects. One of the more commonly known and accepted expressions of sustainable design is energy efficiency, which has a relatively long history of practice, especially in California with its Title 24 energy regulations. Not as well known are the environmental effects of many construction materials, in terms of energy required to extract the materials, process them, and incorporate them into developments (a new way of measuring energy efficiency), identifying renewable sources of materials, identifying the recycle potential of different materials, and noting how different materials affect air quality. Researching and publishing this information is an on-going process, and there is much more to be learned than is currently known. This is the purpose of the AIA's "Environmental Resource Guide".

E. Several local jurisdictions have created redevelopment agencies, which become sources of funds for affordable housing. State law requires 20% of redevelopment agency funds be spent on affordable housing.

F. Revisions to the county's farmworker housing ordinance were adopted in 1991, which serve to expand the opportunities for farmworker housing. A cooperative study of farm worker housing was recently prepared. The county authorized the formation of a County Farmworker Housing Advisory Committee to assist in this study, which also utilized resources from the University of California at Santa Cruz (UCSC). These efforts acknowledge several factors: the importance of agriculture to the county's economy, the relatively low income of farm workers, the lack of currently available affordable housing, and the existence of significant quantities of substandard housing within the existing housing stock.

G. The insufficient supply of affordable housing should not obscure the completed or on-going efforts of many local developers which have successfully provided affordable housing to the county. In addition to the efforts of traditional 'for-profit" developers, the county is fortunate to have many active nonprofit housing developers, including Santa Cruz Community Housing Corporation, Pajaro Valley Affordable Housing Corporation, Habitat for Humanity, and Housing for Independent People, to name a few.

H. UCSC enacted a Long Range Development Plan which included a goal of housing 70% of all undergraduate students and 50% of all graduate students on campus by the year 2005. As of 1991, approximately 55% of all students lived off campus. Significant University growth projections highlight the need to plan for more student housing to mitigate the impact on the local community.

I. Local public agencies and organizations have developed a large number of programs to serve the housing needs of the County. A partial listing of programs is included in Section VI of this report. The Santa Cruz County Housing Authority is very active in the management of housing programs, as well as developing new housing opportunities. The Greater Santa Cruz County Community Foundation recently completed a five year program to bring together public and private leaders in the community to identify housing problems and solutions. All local jurisdictions offer housing services &programs to help meet the needs of their communities.

J. The Association of Monterey Bay Area Governments has developed and distributed to cities and counties "livable communities" planning guidelines.

V. Suggested Actions for Further Progress

A. Encourage local jurisdictions to concentrate development in core urban areas and close to local transportation centers and transportation corridors. Coordinate this effort with local and regional transportation agencies. In the case of the unincorporated areas, continue to use the county's "Urban Services Line' to distinguish more desirable development areas from less desirable areas.

B. Revise local land use regulations to promote the following:

1. Mixed use developments where circumstances warrant their inclusion. Consider the integration of housing with commercial uses, as well as the incorporation of open space and agricultural uses where appropriate.
2. Removal of barriers to the development of non-traditional or innovative housing types, such as cohousing, SRO units, zero-lot line developments and "second units" within single family districts.
3. Model design guidelines that codify sustainable design practices.
4. Incentives for developments which include a greater percentage of affordable housing, such as waver or elimination of some permit fees, density bonuses where affordable housing is included, fast track processing, and possible reduction of parking, open space, or minimum lot size standards.
5. Continued streamlining of the permit process.

C. Encourage a greater variety of housing types, to acknowledge the diverse needs of farm workers, single parent households, homeless households, the disabled, larger families, seniors, and other special needs households. Seniors need a variety of housing opportunities, such as congregate living facilities, residential care facilities (similar to congregate living facilities but with more intense supervised care), shared housing, or 'second units,' in addition to the more traditional single family dwellings and rental apartments. There is an acute shortage of what is known as 'transitional housing," which serves the interim needs of households leaving homelessness and entering the standard housing market.

D. Continue to review current policies and programs in support of farm workers housing, including opportunities for increased allowable densities on non-prime farmland. Continue pursuit of funding sources.

E. Continue to work with the UCSC to address the housing needs of students and faculty, and encourage university support of housing programs off campus that might affect students.

F. Conserve and improve the existing housing stock where it makes economic sense to do so, recognizing that the "embodied energy' (representing the energy it originally took to extract and process building materials and incorporate them into housing) most often has value, and minimizes consumption of new materials. In addition to general housing rehabilitation, encourage energy conservation and seismic structural upgrades, recognizing that a relatively small investment can have a large payback over time, in smaller utility bills, as well as minimizing the risk of catastrophic loss in case of an earthquake. Continue to protect the existing stock of affordable housing from conversion to market rate housing. The county's existing stock of mobile homes is acknowledged to be a valuable source of affordable housing, especially for seniors, and efforts need to continue to preserve and upgrade them.

G. Continue to educate the community to increase its acceptance of affordable housing and diversity in housing opportunities, and its understanding of the social and economic implications of inadequate housing. Educate local households as well as builders to the benefits of sustainable design practices, so that these practices will become more "mainstream" with time, and can be practiced at the simplest and most basic levels of home improvement and maintenance.

H. Look for ways to simplify funding processes and make more funding available for affordable housing- Look for existing models of efficient funding upon which to build and improve. Tie the allocation of public funds to those projects which support sustainable design practices. Similarly, encourage bank lending practices that support sustainable design practices, such as allowing a household to borrow more money for an energy efficient home (an acknowledgment of lower utility bills). Assist in the conversion of existing unsubsidized housing to limited equity cooperatives or other non-profit ownership structures that assure permanent affordability. Insurance reform is needed, in that the insurance industry's lack of experience with nontraditional housing types often translates into higher premiums for both developers and owners.

I. Provide relocation assistance to those displaced by health and building code enforcement resulting in the closure of substandard housing. At the same time encourage development and redevelopment of existing housing stock that remains serviceable, in order to minimize displacement.

J. Revise current cost accounting practices relative to development practices. Development practices in the past have not always acknowledged the social and environmental costs of development, having through ignorance or neglect shifted these costs to other parties (most often the public sector). Revise local agency permit assessment policies and practices to more accurately reflect the true cost of development practices. This will also assist in efforts to evaluate equitable subsidies for affordable housing in the way of reduced permit assessments.

K. Encourage the private sector to participate more fully in the public process. Continue to foster cooperation and communication between local jurisdictions, their respective agencies, and other public & private organizations so that housing information and programs can better serve the community and are not developed in piecemeal fashion. Maintain and update demographic and economic data to better identify the needs of the community with respect to housing.

VI. Useful Resources and References

Each local jurisdiction is required by State law to develop and periodically update a long range planning development document known as its "general plan." Local cities which have done so (in addition to the county) include the cities of Santa Cruz, Scotts Valley, Capitola, and Watsonville. Useful references for housing issues include each general plan's "Housing Element" and "Land Use Element".

Local public and private organizations working to support local housing:

• Association of Monterey Bay Area Governments (AMBAG) P.O. Box 838, Marina, CA 93933; Tel: (408) 883-3750; Fax: (408) 883-3755
• City of Santa Cruz Redevelopment Agency 323 Church Street, Santa Cruz, CA 95060; Tel: (408) 429-3045
• City of Watsonville Redevelopment Agency P.O. Box 50,000, Watsonville, CA 95077-5000; (408) 728-6014
• County of Santa Cruz Redevelopment Agency 701 Ocean Street Room 510, Santa Cruz, CA 95060; Tel: (408) 454-228038
• Greater Santa Cruz County Community Foundation & its Public/Private Leadership Committee on Housing Issues. 2425 Porter Street Suite 11, Soquel, CA 95073; Tel: (408) 477-0800
• Habitat for Humanity P.O. Box 1538, Aptos, CA 95001; (408) 685-0671
• Legal Aid Society 501 Soquel Avenue Suite D, Santa Cruz, CA 95062-2322; Tel: (408) 458-1086
• Santa Cruz Community Housing Corporation 105 Locust Street Suite 202, Santa Cruz, CA 95060; Tel: (408) 423-1318
• Santa Cruz County Housing Authority 2160 41st Avenue, Capitola, CA 95010; Tel: (408) 464-0170
• Pajaro Valley Affordable Housing Corporation 1110 Main Street Suite 3, Watsonville, CA 95076; Tel: (408) 722-9461

Some local programs and services, and who administers them:

• Affordable Housing Outreach Program - to educate the public on affordable housing opportunities: County and Housing Authority.
• Community Development Block Grant Program - serves a variety of community needs, including the provision of affordable housing: Administered by local redevelopment agencies.
• Counseling programs (various) - part of community outreach programs to make more people aware of affordable housing opportunities: Administered by most local jurisdictions and the Housing Authority.
• Density bonus programs (various) - allow greater unit density for inclusion of affordable housing: Administered by most local jurisdictions as part of their land use regulations and policies.
• Fair housing information and tenant-landlord dispute mediation: Legal Aid Society Housing Assistance and Neighborhood Development Program (HAND) -provides housing rehabilitation assistance: County of Santa Cruz and the Santa Cruz County Housing Authority.
• Mobile home park preservation and affordability programs (various) - preserve and maintain mobile home parks as a source of affordable housing: Administered by several local jurisdictions.
• Mortgage Assistance Program: Federal funds administered by local savings and loans.
• Mortgage Credit Assistance Program - assists first home buyers: Santa Cruz County Housing Authority.
• Second unit programs (various): Sponsored by most local jurisdictions to promote the development of second units in singly family residential districts.
• Section 8 Rental Subsidies Program: Federal program administered by the Housing Authority.
• Shared Housing Program - matches elderly households with other households in shared housing arrangements: Administered by Senior Network Services.
• Transfer of Housing Credit Program - allows developers who build more than the minimum required affordable housing units to acquire "credits" which can be sold to other developers to assist in affordable housing requirements for other projects: Administered by the county.

Contributors: Chairperson & editor: Craig Bagley, architect; Gary McNeil, Arnie Fischman, Rob Wheeler, Patrick Splitt, Ned Medonia, Michael Shaw, Paul Brindell, Ed Shapiro, Pete Parkinson, Nicholas Papadakis, Stephen Williams, Randolph Morgan, Steve Travis, Ron Swenson, Ron Wolf, Dan Kriege, Michael Cronin, Sylvia Caras, Lynne (Basehore) Cooper, & Chase Price.