How to Qualify for Measure J in Santa Cruz

Buying your first home in Santa Cruz County can feel exciting yet challenging, especially when navigating affordable housing options like Measure J. This voter-approved affordable housing program has helped many local families achieve homeownership in a highly competitive market. If you’re a first-time buyer wondering how Measure J might work for you, here’s a detailed guide to understanding eligibility, benefits, and the application process.

What Is Measure J?

Measure J, established by Santa Cruz County voters in 1978, requires new housing developments of seven or more units in unincorporated areas to allocate at least 15% of those homes for affordable housing. The goal is to provide moderate-income households with access to quality homes at prices they can manage, supporting community diversity and stability.

How Does Measure J Benefit First-Time Buyers?

For first-time buyers, Measure J offers a pathway to affordable homeownership that might otherwise be out of reach in Santa Cruz’s high-cost market. Whether you’re looking for a newly built condominium or a resale unit, these homes come with resale price restrictions to ensure ongoing affordability, making them a sustainable option for Santa Cruz residents.

Who Qualifies for Measure J?

Eligibility requirements are designed to prioritize individuals and families who live or work in Santa Cruz County and demonstrate financial need based on income limits.

Key qualifications include:

First-Time Buyer Status: Applicant must not have previously owned a home.
Residency/Employment: Must have lived or worked in Santa Cruz County for at least 60 days prior to application.
Income Limits: Household income generally needs to fall between 80% and 120% of the Area Median Income (AMI), adjusted for family size. Buyers with lower incomes may also qualify if underwriting conditions are met.
Credit and Mortgage: A minimum credit score of 620 is required, with no foreclosures or bankruptcies in the past three years. Buyers must have a mortgage prequalification letter covering at least 70% of the home’s purchase price and a down payment of at least 3%. No more than half of the down payment and closing costs can be gifted.
Other Criteria: Must meet occupancy standards, neighborhood safety criteria, and complete a county-approved first-time homebuyer education course before closing.

What Types of Homes Are Available?

Measure J homes currently include a mix of:

Newly constructed condominiums with 1 to 3 bedrooms at developments like Aptos Village II, featuring amenities such as private garages and ADA-accessible units.
Recently renovated resale condominiums located in areas like Live Oak.
These homes are often priced well below market value, reflecting the affordability targets of the program.

The Application and Selection Process

Measure J units are allocated via a random drawing system to ensure fairness. Interested buyers must submit a full pre-application along with their mortgage prequalification documents during the open application window. Following application acceptance, buyers may need to negotiate and finalize purchase agreements if selected.

Financial Considerations Beyond Purchase Price

Buyers should anticipate monthly Homeowners Association (HOA) fees, property taxes, and maintenance costs in addition to their mortgage payments. The program’s affordability guidelines aim for a monthly housing cost that is manageable within defined income brackets.

Why Work with a Local Realtor Experienced in Measure J?

Navigating Measure J’s eligibility, application requirements, and homebuying process can be complex. As a seasoned Santa Cruz Realtor with Coldwell Banker Realty, I, Brian Wellikson, provide personalized support to first-time buyers exploring Measure J and other affordable options. I help you determine qualification, prepare necessary documents, and navigate the competitive process with confidence.

Final Thoughts

Measure J remains a valuable avenue for first-time homebuyers seeking affordable options in Santa Cruz County’s competitive housing market. Understanding program details and working with an expert can significantly enhance your likelihood of success.

If you’re interested in learning more about Measure J homes, eligibility criteria, or want personalized guidance through your homebuying journey, reach out to me, Brian Wellikson. Let’s make your homeownership dream in Santa Cruz a reality! Brian.Wellikson@CBRealty.com 831-227-7561