The City of Santa Cruz is seeking Prohousing Designation Program renewal through the California Department of Housing and Community Development (HCD).
What has the Prohousing designation helped Santa Cruz do?
Santa Cruz is currently designated as a Prohousing city in recognition of the great work that we do to protect tenants and provide affordable housing, and the City is applying for renewal of its current designation. The designation helps us win grant money for affordable housing, infrastructure improvements, and tenant protections.
Here’s a sample of recent City successes that the Prohousing designation can help us continue:
- Since 2020, the City has secured over $76 million in funding to build out transit-oriented infrastructure in the City’s downtown, including road, sidewalk, bike lane, and alleyway improvements and connections, with an emphasis on facilities that increase safety for non-motorized users throughout the City.
- The City received a state grant of $500,000 that bolstered our ongoing rental assistance program that gives income-qualified families emergency rental assistance or security deposit money when they, for example, lose a job or have a health issue that temporarily limits their income. This prevents families from falling into homelessness.
- Many grant applications for affordable housing projects are made more competitive due to the City’s Prohousing status. For example, the Affordable Housing Sustainable Communities grant program, under which the City received $33.5 million to facilitate the Downtown Library and Affordable Housing Project, gives extra points to Prohousing jurisdictions.
In addition to being more competitive in many grants, the City is only eligible to even apply for certain grant funds because of its Prohousing designation. And having the Prohousing designation also gave the City a leg up in getting its Housing Element certified on time. (Santa Cruz was the only jurisdiction in the tri-county region to do so!) This meant that we retained more local control by avoiding Builder’s Remedy.
The Prohousing designation does not create any new policies. It does not change what can be built, how much can be built, or where things can be built. It also does not eliminate public hearing requirements. It recognizes existing programs and established Council direction. Here are example programs and policies for which the City is seeking points:
- The City provides grants to income-qualified individuals for emergency rental assistance or security deposits.
- The City provided a loan to the Palomar building owner to help preserve affordable rents and to reduce resident displacement after long-standing affordability restrictions on the building expired.
- The City’s homeless outreach workers connect individuals experiencing homelessness to services and support them on a path towards health and long-term housing stability.
- The City’s inclusionary ordinance requires new housing development to include a minimum percentage of affordable housing units.
- The City approved an Affordable Housing Trust Fund in 2000 and implemented it in 2003, with funds used exclusively for the creation and preservation of affordable housing.
- The City’s certification of the San Lorenzo River levee and associated FEMA flood zone changes for the surrounding area helps to reduce flood insurance costs for residents along both sides of the river.
- The City reduced its childcare impact fees for 100% affordable housing developments.
- The City facilitated the construction of 100 units of Santa Cruz School District teacher, faculty, and staff housing, which is currently under construction on Swift St. on the Westside.
- The City’s new land management, permitting, and licensing software will make it easier for customers to electronically apply for and receive a wide range of services (commercial business improvements, single-family home changes, accessory dwelling units, multi-family buildings, business licenses, event permits, etc.).
- The City has a range of incentives for accessory dwelling units.
- The City received grants for and is developing a substance use disorder treatment facility on City-owned land on Coral Street.
About the Program
The Prohousing Designation Program recognizes jurisdictions that support housing production and affordability through local policies and programs. Designated jurisdictions can receive priority funding, incentives, and access to grants, helping to meet regional housing needs and reduce development barriers. For more information, visit the HCD's Prohousing Program website HERE.
Public Comment Periods (Closed)
The City accepted public comments on the 2026 Prohousing Application during two public comment periods: May 20-June 21, 2026, for the initial draft, and September 22-28, 2026, for the revised draft. Both drafts were made publicly available, and the public comment periods are now closed.
Featured Resources
View the Prohousing Designation Program Application Renewal and Funding Opportunities Council Presentation | June 2026(PDF, 2MB)
2026 City Council Resolution Authorizing the City to Apply and Participate in the Prohousing Designation Program(PDF, 79KB)
2023 City Council Resolution Authorizing the City to Apply and Participate in the Prohousing Designation Program(PDF, 89KB)
“Inside Santa Cruz’s 2023 Prohousing Application” - In August of 2023, the City of Santa Cruz received the Prohousing Designation Award, and this City Journal Article highlights information on the application process, including a 2023 milestone timeline graphic.
Frequently Asked Questions (PDF)
Prohousing Designation Policy Categories
HCD scores a jurisdiction’s qualifying housing policies and programs across these four categories. The application’s scoring options are not a list of requirements the City must adopt.
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Favorable Zoning and Land Use
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Acceleration of Housing Production Timeframes
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Reduction of Construction and Development Costs
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Providing Financial Subsidies
Contact
Affordable Housing Division, Community Development Department
affordablehousing@santacruzca.gov