The Workforce Housing Affordability Act would raise money for the city’s Affordable Housing Trust Fund through a $96 parcel tax and a property transfer tax paid by sellers. The parcel tax would exempt low-income property owners and seniors.

The taxes aim to raise $5 million annually for affordable housing and homelessness prevention. The taxes would apply to properties sold for more than $1.8 million. They would start in July 2026 and expire in July 2047.

Critics have said annual revenue is not enough to make a meaningful change in the production or availability of affordable housing in the city of Santa Cruz. Proponents have said the measure contributes to affordable housing while being palatable to voters.

The Santa Cruz County Association of Realtors has proposed an alternative ballot measure with lower taxes that would expire in July 2036. The group has not yet said whether it has gathered enough signatures for the measure to appear on the November ballot. 

The realtors’ measure includes a $50 parcel tax and property transfer tax that applies to property sales over $4 million. It would fund affordable housing and homelessness response, plus repairs to the Santa Cruz Municipal Wharf and West Cliff Drive.

The proposed measure from the realtors association is called the City of Santa Cruz Workforce Housing and Climate Protection Act of 2025. 

Santa Cruz Mayor Fred Keeley said that details of the Workforce Housing Affordability Act were workshopped for about two years before the campaign’s kickoff in January. (Jesse Kathan — Santa Cruz Local)

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