Santa Cruz Gets $5M For Affordable Housing Projects

SANTA CRUZ, CA — The city of Santa Cruz has received $5 million in state funding to go toward at least three affordable housing projects.

The money will be allocated over five years to support the Pacific Station North, Pacific Station South and Library Mixed-Use projects, the city said in a news release. Those projects are slated to bring 200 affordable housing units to Santa Cruz.

Santa Cruz was one of 33 applicants vying for a piece of the $57 million pie and ultimately tied for third place in awards allocated, the city said.

This grant from the state Housing and Community Development Department's Local Housing Trust Fund program will provide matching funds, meaning the city must also spend $5 million on the projects.

Bonnie Lipscomb, the city's economic development director, called the funding "an incredible win" for the city, since redevelopment agencies were abolished in 2012.

California redevelopment agencies put tax dollars toward partnerships with developers to encourage revitilization in struggling areas, but critics maintained some products did little to benefit the public, the Los Angeles Times reported. More than 400 redevelopment agencies were axed after the legislature voted to ban them and put money toward schools and special districts, the paper reported.

This marks the first time the city has gotten state dollars for affordable housing efforts since 2009.