The City of Santa Cruz purchased 125 Coral St. in May 2022. (Stephen Baxter — Santa Cruz Local file)
Last updated: June 2025
Project name: Coral Street Substance Use Disorder Treatment Facility
Location: 125 Coral St., Santa Cruz
The site is a former metal fabrication shop next to the Housing Matters campus and an under-construction permanent supportive housing facility at 119 Coral St.
Status
In May 2025, Santa Cruz city leaders said the city will receive $30 million from the state in 2026 to build a Coral Street Substance Use Disorder Treatment Facility. A request for proposals to develop the project is expected in summer 2025, said Santa Cruz city spokesperson Siouxsie Oki.
Project description
- Total beds: The facility would include 50 beds to support treatment of unsheltered adults with substance use disorders.
- Facilities: The new residential facility is expected to provide “24-hour, nonmedical, recovery-focused services for adults with substance use disorders,” Santa Cruz city spokesperson Erika Smart wrote in a May 27, 2025 statement.
- Funding: The treatment facility project was funded as part of a $6.4 billion bond created by California’s Proposition 1. About $4.4 billion of it funds treatment facilities across the state. The first round of funding was awarded and is anticipated to be disbursed in 2026, Smart wrote.
Project timeline
- The City of Santa Cruz purchased 125 Coral St. for $3 million in May 2022. It was a Sea Berg Metal Fabricators building. About $14 million came from the state for homeless response efforts in Santa Cruz. State Sen. John Laird, (D-Santa Cruz) and Assemblymember Mark Stone, (D-Santa Cruz) helped secure the money.
- City staff initially considered other options for the property, including a 125-bed navigation center and three levels of permanent supportive housing or affordable housing.
A map from April 2023 shows land ownership and homeless service sites on Coral Street in Santa Cruz. The Santa Cruz City Council in May 2023 directed city staff to exclude three privately-owned parcels in green from future maps with potential homeless services development. (City of Santa Cruz)
Read more
- Coral Street homeless services plans advance in Santa Cruz – May 12, 2023
- Coral Street homeless service ideas head to Santa Cruz City Council — March 31, 2023
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