HOUSING ADVOCATES and the real estate industry will face off in Santa Cruz this fall after officials placed two competing housing tax measures on the November ballot.Â
The Santa Cruz City Council during a special meeting on Monday approved two options — the Workforce Housing Affordability Act and the Workforce Housing and Climate Protection Act — both of which the voters will get to decide on. Â
The Mayor Fred Keeley-backed Workforce Housing Affordability Act would implement a parcel tax and property transfer tax to help fund affordable housing projects and homelessness prevention programs and facilities.
The real estate industry-backed Workforce Housing and Climate Protection Act would do the same, but sets lower taxes and looks to fund the same programs in addition to repairs to the Santa Cruz Wharf and other city facilities harmed by climate change.
The two measures come on the heels of Santa Cruz County being named as the most expensive place in the country to rent for the third year in a row, according to the National Low Income Housing Coalition, a nonprofit that advocates for and provides data on affordable housing across the country.
Keeley’s measure, which is also backed by Housing Santa Cruz County, would implement an annual parcel tax of $96 per parcel and a transfer tax that would begin at 0.5% for each home sold for more than $1.8 million but less than $2.5 million. The tax would increase up to 2% on homes selling for more than $4.5 million.
The real estate industry-backed measure would implement an annual parcel tax of $50 per parcel and a transfer tax that would begin at 0.5% for each $1,000 paid in excess on properties over $4 million.
“What we have in front of us is a solution,” said Elaine Johnson at the meeting, executive director of Housing Santa Cruz County, which advocates for affordable housing.
Johnson said the backers of the Workforce Housing and Climate Protection Act aren’t focused on housing.
“They didn’t put this measure together to build homes, they put this measure together to take away from the community,” she said.
In the Notice of Intent to begin gathering signatures for the Workforce Housing and Climate Protection Act, local Realtor Peter Eubank said affordable housing was “a critical need” for the area because of high home costs and increasing rent prices.
Low-income households, low-income senior households, affordable housing projects, schools, religious institutions and others exempt from property taxes would still be exempt from the taxes if they were to pass. The Workforce Housing and Climate Protection Act would also exempt all senior households aged 55+.
Both measures were sent to officials for approval after separate signature-gathering efforts received enough community support to move forward.
If both measures pass in November, the measure with the most votes would win.