New standalone units are expected to be built at Veterans Village in Ben Lomond. (Amaya Edwards — Santa Cruz Local/CatchLight Local)

SANTA CRUZ >> After years of stalled construction, an affordable housing development for homeless veterans may finally regain momentum.

The development of Veterans Village launched in 2021 with a vision of converting a former cabin resort in Ben Lomond to affordable homes for 20 veterans. The development partially opened in 2022, and currently hosts seven veterans. But a funding shortfall hampered the progress of renovations and construction needed to complete the project.

In September, the project received a $1.3 million state tax credit, a critical source of funding for below-market-rate housing projects. The credit will allow developers to take out loans to help finish the housing project. Once complete, the property will have 10 renovated cabins, 10 new homes and a renovated main house.

The Veterans Memorial Hall Board of Trustees, which manages the Veterans Hall in Downtown Santa Cruz and helps connect vets with county resources, has spearheaded the project. Leading up to its opening in 2022, the development received millions of dollars from the county and a state grant. Jack Tracey, a formerly homeless vet and president of the board of trustees, hoped the money would be enough to finish the project by 2023, but skyrocketing costs brought construction to a halt. 

“All of a sudden, the amount that we thought was going to get the whole thing built wasn’t going to do that,” Tracey said. “So we struggled for quite a while.”

Tracey said with the help from the tax credit, the project will hopefully be finished by this time next year. 

Charlie Brown, a veteran and village resident of nearly three years, works on-site as security. He spends much of his time interacting with residents, drawing on his background in security to help manage conflict and disruptive behavior. 

Charlie Brown, veteran and on-site security, drives through Veterans Village on Feb. 18, 2026 in Ben Lomond. (Amaya Edwards — Santa Cruz Local/CatchLight Local)

The village has benefited from community support, Brown said.

“I’ve got people that donate food regularly, they’ll cook home cooked meals for us,” he said. “At Christmas time, I must have had 10 dozen cookies dropped off.” 

Brown said he’s frustrated it’s taken so long to complete the project, because he knows there are veterans who need homes. Last year, the county’s Point in Time count of homeless residents included 71 veterans.

“I just want it to be done,” he said.

The Veterans Hall trustees are moving forward with finalizing the financing to start construction in March, Tracey said. Current residents will have to temporarily relocate, but will have first rights to move back in. The board met with the tenants on Feb. 12 to explain the process. 

Tracey said he is excited about the future of Veterans Village.

“I’m just thrilled we’re finally going to get where we need to be” with the project, he said.

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