City Of Santa Cruz: Tax Credits Valued At $22.6M Awarded To City-Led Affordable Housing Project, Construction To Begin In Spring 2022

Press release from the City of Santa Cruz:

10/28/2021 10:44 AM

SANTA CRUZ, CA – The City of Santa Cruz today announced that the State CA Tax Credit Allocation Committee (TCAC), the agency responsible for distributing low-income housing tax credits, awarded in tax credits valued at $22.6 million to the Pacific Station South affordable housing development in the City of Santa Cruz. This tax credit is the final funding needed to ensure the construction begins in spring 2022.

“Affordable housing is a huge need in our community, and the City is proactively working to address this need by streamlining 100 percent affordable housing permit approvals to get this housing built faster,” said City of Santa Cruz Mayor Donna Meyers.

Pacific Station South, located at 818, 820, 822 Pacific Ave. and 325, 329 Front Street, will provide 70 family rental apartments, including one manager’s unit and 22 units reserved for disabled individuals, to households with income levels ranging from 30-60 percent Area Median Income, or approximately between $33,570 and $67,140 for a four-person household. Construction will begin this spring and be ready for leasing in early 2024.

“The vision for this transit-oriented 100 percent affordable housing development in the heart of the City’s downtown Pacific Station was conceived back in the early 2000s. City staff, in partnership with For the Future Housing, have been working tirelessly to make this vision a reality to help the City meet its Regional Housing Needs Allocation,” said City of Santa Cruz Economic Development Director Bonnie Lipscomb.

Jim Rendler, principal and vice president at For the Future Housing, said, “In addition to the 70 100 percent affordable units, the project will feature an onsite, low-income medical and dental clinic and retail space along Pacific Avenue. For the Future Housing would like to thank funding partners, including the City of Santa Cruz and the Santa Cruz County Housing Authority. Without their support, this project would not be possible.”

 Not only is this the largest source of funding for these affordable housing projects, but this tax credit is also the last funding source needed to close the financing gap and begin construction.

“Low-income housing tax credits typically provide the largest chunk of funding to build affordable housing. This key piece of funding will close the funding gap so this affordable housing can be built,” said City of Santa Cruz Affordable Housing Manager Jessica de Wit.

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This press release was produced by the City of Santa Cruz. The views expressed here are the author’s own.