A proposed overlay district would permit taller buildings and pave the way for more temporary housing and 100% affordable housing. (City of Santa Cruz)

Update: The Santa Cruz City Council voted to approve rezoning the Coral Street area. A final reading and adoption of the new rules is expected at the council’s next meeting March 24.

SANTA CRUZ >>  As plans for an expanded homeless services and low-income housing campus on Coral Street inch forward, the Santa Cruz City Council on Tuesday is set to consider changing the city’s development rules to allow taller buildings for temporary housing, including shelters and 100% below-market-rate housing. 

The proposed Coral Street Overlay District would change the city’s zoning code to bar the city from denying those uses, and permit taller buildings than existing rules. It seeks to fulfill a state mandate to zone for enough temporary housing to accommodate the city’s homeless population. 

City staff have suggested a height limit of eight stories and 85 feet. The Santa Cruz Planning Commission recommended lowering the limit to five stories and 60 feet.

The council is also set to consider:

• New rules to defer or waive developer review fees for some low-income housing, public-serving buildings and city-owned buildings that could be used for offices. 
• Final approval of new rules for bicycles and e-bikes that ban riding bicycles or e-bikes on sidewalks, parking bikes on sidewalks unless there are no bike racks, installing bike racks in the public right-of-way without a permit, and unauthorized racing.

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