Local Preference Policy

The City of Santa Cruz Local Preference Policy is established by Ordinance No. 2026-11 and Resolution No. NS-30,654.

The Local Preference Policy applies to affordable housing units regulated by the City, including inclusionary housing, affordable density bonus units, 100% affordable housing developments, and affordable housing developments receiving City assistance (financial or land, etc.). Some developments may have additional funding requirements or other state or federal rules that also apply.

Preference Order

When selecting tenants or homebuyers for an affordable housing unit, owners must give preference to applicants in the following order:

Priority Level A
  • Applicants who have lived in the City for at least 1 year
  • Applicants who work in the City
  • Applicants who have been displaced from housing located in the City within the 12 months immediately before the application date due to any of the following:
    • no-fault eviction
    • large rent increases (as defined in SCMC § 21.03.020)
    • disaster
    • health and safety code violations 
Priority Level B
  • Applicants who have lived in the County for at least 1 year
  • Applicants who work in the County

Related Documents

For more information about the Local Preference Policy, please see the following resources:

Local Preference Snapshot

Infographic titled “Local Preference Snapshot.” It shows that 92 percent of households met the local preference across four newly completed 100 percent affordable housing developments at the close of FY25, June 30, 2025. A pie chart highlights the overall 92 percent result. Project level results are listed as follows: Pacific Station South, 69 units, 86 percent met local preference; Natural Bridges Apartments, 20 units, 95 percent met local preference; Jessie Street Apartments, 48 units, 92 percent met local preference; Cedar Street Family Apartments, 64 units, 100 percent met local preference. Unit totals reflect affordable units only and exclude manager units.

This snapshot highlights four major, newly constructed, 100% affordable housing developments that completed initial lease-up during the summer of 2024 through the summer of 2025. Together, this includes 201 affordable rental apartments, excluding manager units.

While this snapshot reflects outcomes for these four major developments, it does not include other affordable units within mixed-income or housing developments with inclusionary units, nor does it include existing developments filling vacancies. Tenant preferences are applied to units in these projects as well, but the overall numbers are on a much smaller scale than the newly created 100% affordable housing projects referenced above.

 

 

 

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