A six-story housing complex has been approved on the 900 block of Water Street near North Branciforte Avenue in Santa Cruz.

Santa Cruz Planning Commissioners approved a six-story, 83-unit housing complex on the 900 block of Water Street in Santa Cruz. (Natalya Dreszer — Santa Cruz Local file)

SANTA CRUZ >> The Santa Cruz Planning Commission on Jan. 9 unanimously approved plans for a six-story, 83-unit apartment building on the 900 block of Water Street in Santa Cruz. 

The new homes would be less than a block away from a five-story building at 831 Water St. approved in December.

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Both projects would only require Santa Cruz City Council approval if appealed.

The project on the 900 block of Water Street is from developer CRP Affordable Housing and Community Development and contractor Workbench. It would include:

  • 83 one-, two- and three-bedroom units, including 82 below-market-rate apartments for renters earning 30%-80% Area Median Income and a manager’s unit. Income limits for affordable housing are set annually by state and federal agencies.
  • Businesses on the ground floor.
  • An outdoor patio for a potential restaurant.
  • An outdoor play structure.
  • A garage with 38 parking spaces, with access from Stanford Avenue.

A previous version of the project approved in February 2023 included four stories of below-market and market-rate studios with 49 parking spaces.

State density bonus laws allow the proposed six-story building to be taller than city rules would otherwise allow. Other state laws allow developers to sidestep local parking requirements near frequently-serviced bus stops.

The site is next to The Argus Co. used car lot and across North Branciforte Avenue from a four- and five-story housing project at 831 Water St. The planning commission approved 140 below-market-rent apartments and 43 parking spaces at 831 Water on Dec. 19.

Gary Patton, a former Santa Cruz County supervisor and nearby resident, said that he already expects the 831 Water St. project to strain parking in the area. He said he’s worried the new project would add to the problem.

“This proposal, as it initially came through the process, actually got a lot of neighborhood support,” he said. “What is before you is, I think, disadvantageous to our neighborhood.”

Joshua Ralls, project manager for CRP Affordable Housing, said the developer aims to work with Santa Cruz METRO and Santa Cruz City Schools to provide residents bus passes or alternative parking locations.

A rendering depicts a proposed six-story apartment complex at the corner of Water Street and North Branciforte Avenue in Santa Cruz.

A six-story apartment complex is planned for the 900 block of Water Street in Santa Cruz. (Workbench)

According to state law, certain housing projects can only be denied if they fail to meet local “objective standards” for housing developments. Developers submitted a pre-application for the project before the Santa Cruz City Council created those standards. 

Although the plans for the development have changed, the timing of the initial pre-application exempts the project from the city’s objective standards, meaning the planning commission has even less leeway to order changes to the project than they would for more recent applications.

Planning Commissioner Timerie Gordon said state laws severely limit the commission’s legal authority to deny projects.

“The community thinks we have a say in this, but we don’t, so this [vote] is just kind of a performative action,” she said.

Planning Commissioner Pete Kennedy said he was glad to see the project include larger apartments targeted for families. “I’m tired of seeing super-low-income little 600-square foot studios, much as I love that type of housing,” he said.

If the planning commission’s decision is appealed, the Santa Cruz City Council would have the final say. But city councils are likewise constrained by state laws, city staff have said.

Separately, the Santa Cruz Planning Commission approved a housing project at 831 Water St. in December. (Stephen Baxter — Santa Cruz Local)

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Reporter / California Local News Fellow |  + posts

Jesse Kathan is a staff reporter for Santa Cruz Local through the California Local News Fellowship. They hold a master's degree in science communications from UC Santa Cruz.