Measure O: Your Guide to Affordable Housing in the City of Santa Cruz

For first-time homebuyers navigating Santa Cruz’s competitive housing market, understanding available affordable housing opportunities is essential. One important program that supports local affordable housing is Measure O, a voter-approved initiative designed to ensure new residential developments include affordable units for moderate-, low-, and very-low-income households within the City of Santa Cruz. This program expands options for buyers seeking well-priced homes in a highly desirable coastal community.

What Is Measure O?

Measure O, often referred to as the City of Santa Cruz’s Inclusionary Housing Program, imposes a requirement on residential developers to designate a percentage of total units in new housing projects as affordable. These units are preserved by deed restriction to remain affordable long-term, helping maintain a supply of homes accessible to those who meet income qualifications.

This ordinance is codified in the Santa Cruz Municipal Code (Chapter 24.16, Part One) and supported by city policies that regulate affordable housing creation, eligibility verification, and ongoing compliance.

Who Is Eligible for Measure O Units?

Measure O targets a range of income groups, making housing available to:

Very-low-income households (earning 50% or less of the Area Median Income, AMI)
Low-income households (earning 51-80% of AMI)
Moderate-income households (earning up to 120% of AMI)

Applicants must meet income and asset limits and demonstrate the ability to afford monthly housing costs within these income thresholds. Prospective buyers are typically required to submit detailed financial documentation to the Santa Cruz Housing Authority as part of their application and qualification process.

Types of Affordable Housing Under Measure O

Measure O applies to both rental and ownership housing units in new developments. Buyers can find:

For-sale affordable condominiums, townhomes, or single-family homes priced below market rate
Rental units that offer income-restricted monthly rents

All Measure O units include long-term deed restrictions ensuring affordability for current and future residents, sustaining the program’s mission of inclusive housing.

How Are Measure O Units Allocated?

Because demand typically exceeds supply, new affordable units offered under Measure O are generally distributed through a lottery or random drawing system to maximize fairness. Notification of available units, application windows, and selection results are coordinated by the City’s Housing Authority or designated property managers.

What Are the Benefits of Buying a Measure O Home?

Access to affordable housing in a market known for limited inventory and high prices
Stable, community-focused neighborhoods close to downtown, transit, and coastal amenities
Long-term affordability protections ensure your investment remains accessible and valuable
Support services and homeownership education resources offered by local agencies

Important Considerations for Buyers

Measure O units come with certain occupancy and compliance rules. Buyers must:

Maintain primary residence status
Follow eligibility recertification processes if applicable
Understand resale restrictions and right-of-first-refusal clauses
Commit to first-time homebuyer education courses offered through the city or partner organizations

How Can Brian Wellikson Help?

Navigating Measure O options can be complex, but with my local knowledge and experience as a Santa Cruz Realtor with Coldwell Banker Realty, I am here to guide you. From eligibility assessment and application support to negotiating offers and compliance understanding, I help first-time buyers access these valuable opportunities while finding homes that fit their needs and lifestyle.

Ready to Explore Measure O Homes in Santa Cruz?

If you are eager to learn more about Measure O affordable homes or want expert assistance navigating the application and buying process, reach out to me, Brian Wellikson. Together, we can find the right path to homeownership in Santa Cruz’s vibrant community—making your dream a reality.