The Calypso Apartments on Center Street in Downtown Santa Cruz were first proposed in 2021 as market-rate, but developers in 2024 chose to instead pursue 100% below-market-rate. (Swenson Builders)
SANTA CRUZ >> A below-market-rate project with 50 homes on River Street received a building permit in March. Additionally, a 233-unit project on Center Street that was approved as market rate is now 100% below market rate. Together, the two projects are expected to add 279 apartments for low-income households in Downtown Santa Cruz by 2028.
The proposal at 136 River St., the former site of Outdoor World, is from nonprofit For the Future Housing and was approved by the city in 2024. The 50-unit, six-story proposal includes one manager’s unit and 49 homes priced for households earning 30% to 60% of area median income, limits set annually by the state.
Twenty of the homes would be for Housing Choice Voucher recipients, commonly known as Section 8, and filled from the Housing Authority of the County of Santa Cruz’s waitlist. An interest list is not yet available for the remaining 29 homes.
Rents in 2025 dollars for a one-bedroom apartment would range from $1,112 for households earning 30% of area median income to $2,225 for households earning 60% of area median income. Three-bedrooms apartments are expected to range from $1,542 to $3,085 for those income brackets. In 2025, 60% of area median income for a family of four was $118,680 before taxes.
The project could finish construction late next year, according to a staff report from the California Tax Credit Allocation Committee.
The site at 136 River St. was home to local camping supply store Outdoor World. Plans submitted include demolishing the building. (Tyler Maldonado — Santa Cruz Local file)
A 50-unit below-market-rate apartment complex is proposed at 136 River St. in Santa Cruz. (Ten Over Studio rendering)
The proposal at 130 Center St. across from Depot Park, dubbed the Calypso Apartments, was approved by the Santa Cruz City Council in 2022 as a market-rate project with 233 single-room occupancy units and the required set-aside of 35 very low income units.
The six-story project, proposed by San José-based developer Swenson Builders, received a building permit in 2022 but never broke ground.
Swenson teamed up with Sacramento-based nonprofit Pacific Housing in early 2024, said Pacific Housing CEO Mat Eland in a text message.
Representatives of Swenson did not return requests for comment.
In December 2025, the project was awarded $48 million in tax credits, an essential source of funding for below-market-rate projects. Last month, the Santa Cruz City Council approved $42 million in tax-free bonds for the project.
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Proposed rents in 2025 dollars for the studio apartments range from $1,038 for households earning 30% of area median income to $2,423 for households earning 70% of area median income. In 2025, 30% of area median income for a single person was $41,550 before taxes.
The 233 studio units are expected to range in size from 295 square feet to 400 square feet.
The project could break ground in May and finish construction by late 2028, according to a staff report from the California Tax Credit Allocation Committee. An interest list for the project is not yet available.
Stay updated on important projects on Santa Cruz Local’s housing tracker.
A rendering shows the proposed project from Center Street. (Swenson Builders)
The proposal for 233 studio units was approved by the Santa Cruz City Council in 2022. (Swenson Builders)
Read more
- 253 below-market-rate homes on tap in Soquel — Sept. 4, 2025
- Developer and residents sue County of Santa Cruz over two Live Oak apartment proposals — March 27, 2026
- Project tracker: 130 Center St.
- Project tracker: 136 River St.
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Nik Altenberg is a bilingual reporter and assistant editor at Santa Cruz Local. Nik Altenberg es reportera bilingüe y editora asistente para Santa Cruz Local.
