(Photo: California Dept. of Housing & Community Development)
State Intervenes With 831 Water Street Project
On October 12th, the Santa Cruz City Council voted to deny the Water Street project. Last week the city received a letter from the state's Department of Housing and Community Development (HCD) stating that the reasons for the denial were not permitted by state law. The 831 Water Street apartment project is the city's first SB 35 application which allows streamlined approval processes for developments with significant affordable housing units as long objective standards criteria are met. The project would create 77 deed restricted very-low and low income affordable housing units (30 to 80% AMI) and 72 market rate units designed to rent at moderate income (80% to 120% AMI).
The HCD letter states that the council's denial was not valid considering the city's objective standards. The project was denied because the affordable units were concentrated in one building with a second building for market rate units. Under AB 491, developments are required to have shared common areas but the law does not preclude units being separated into different buildings. The letter states, "HCD supports the city's approval of housing during this critical housing crisis, including the 831 Water Street Project, and hopes for a speedy resolution of this matter".
The city council will reconsider the project application at its meeting on Tuesday, November 23rd. Stay tuned to find out what happens next.