Santa Cruz, CA

A program implemented by the City of Santa Cruz to help mitigate problems caused by one of the country's most expensive housing market.

The City of Santa Cruz has been one of the most expensive housing markets in the U.S. With less than seven percent of residents able to afford to buy a median-priced home in the community, Santa Cruz was having trouble retaining teachers, firefighters and service workers and it decided to act.

Nuts and Bolts:

• In 2003, city officials created the Accessory Dwelling Unit (ADU) Development Program to make it easier for homeowners to create a separate housing unit attached or adjacent to the house.
• The city believed that through more development of ADUs, the community could minimize the impact of population growth and also help homeowners supplement their mortgage payments.
• City officials also identified ADUs as a way to provide more rental housing in the core of the city, and to foster the use of public transportation.

• As part of the ADU Development Program, the city revised several zoning ordinances and released an ADU “How To” manual featuring a number of ADU prototype designs.
• The city also sponsors an ADU loan program which offers loans of up to $100,000 through the Santa Cruz Community Credit Union.
• In its first year alone, 35 ADUs were constructed and the program has since received several distinctions from organizations such as the US Environmental Protection Agency, the American Planning Association and others.

For more information on this program: The Accessory Dwelling Unit Development Program, Smart Growth Resource Library