Affordable Housing
The City of Capitola is committed to providing safe and affordable housing opportunities for all of its residents. Over the years, the City has administered a number of affordable housing programs to assist low and moderate income households to purchase, retain, and maintain their homes. The Community Development Department is responsible for administering the City’s affordable housing programs. Currently, the City provides sponsors or funding for the following programs:
MOBILE HOME PARK RENT STABILIZATION: On Thursday, May 25, 2023, the Capitola City Council adopted urgency ordinance 1059 to stabilize mobile home space rents by preventing excessive and unreasonable rent increases. There are approximately 681 total spaces in eight mobile home parks in the City housing between 7% and 10% of the population. Of these residents, many are low-income and/or elderly. Some mobile home parks are currently under long-term lease agreements that guarantee affordable rents for the foreseeable future, but at other parks that may not be the case. The City Council adopted an urgency ordinance, which took immediate effect and will remain effective until the State enacts any law more protective than this ordinance which stabilizes rents for mobile home park residents in Capitola, or on the effective date of a regular ordinance replacing this urgency ordinance. A full copy of the certified ordinance is available at City Hall and can be found attached below.
SECURITY DEPOSIT ASSISTANCE PROGRAM: This program is designed to aid eligible renters in Capitola, by offering eligible individuals and families assistance to cover a portion of their security deposit. This program does not reimburse a renter for a security deposit that has already been paid, and payments cannot be made after taking occupancy of the new unit. The household income cannot exceed 80% of median income. Applicants must be determined to be eligible before moving in. This program is administered by the Housing Authority of the County of Santa Cruz on behalf of Capitola. Assistance is provided in the amount of up to one month’s rent. The funds are considered a loan during the time that the renter occupies the unit. When the renter moves, they are required to return the full amount of the security deposit assistance to the Housing Authority in the form of a check. For more information, please see the Housing Authority website under the programs menu, or call the Housing Authority at (831) 454-5977.
LANDLORD INCENTIVE PROGRAM: This program is designed to assist Section 8 Landlords to reimburse expenses of up to $5,000 associated with unpaid rent, property damage, vacancy loss, and legal fees. The program is a collaboration of the All In Landlord Partnership, under the auspices of the Homeless Action Partnership (HAP). For more information, please see the Housing Authority website or call the Housing Authority at (831) 454-5977.
EMERGENCY HOUSING ASSISTANCE PROGRAM: The emergency housing assistance program is designed to prevent very low income Capitola households from becoming homeless due to an unexpected financial event (such as job loss, sudden disability, or major medical expenses), that prevents them from making their regular monthly rent or mortgage payment. The program provides one-time emergency grants for up to four months of rent or mortgage payments. The grants are paid directly to the landlord or mortgage company to prevent the household from being evicted or foreclosed upon. In order to be eligible for this assistance, households must be at or below 50% of median income and must include children, a disabled person, or an elderly person as household members. The program is the Capitola-funded portion of The Shelter Project, administered by the Community Action Board (CAB). For more information, please see the CAB website or call CAB at 457-1741 to request assistance.
INCLUSIONARY (AFFORDABLE) HOUSING PROGRAM: Adopted by the City Council in November 2004 and substantially updated in 2021, this program requires housing development projects in the City to contribute to the creation of affordable housing. Projects with seven or more for-sale housing units or residential parcels are required to reserve and restrict fifteen percent of the housing units for sale to moderate, low or very-low income households. The Inclusionary Housing Program also requires that resale restrictions be placed on these units to protect their long-term affordability for future buyers.
The sale and purchase of Inclusionary Housing units is subject to affordability restrictions. To purchase an Inclusionary Housing unit, a household must earn less than 120% of median income, as published annually by the State of California Department of Housing and Community Development. Income eligibility is determined at the time of sale by the Santa Cruz County Housing Authority. In addition, prospective buyers are also subject to asset limitations which are equal to 1.5 times the income limit, excluding up to $500,000 in qualified retirement plans. Current income and asset limits can be obtained by contacting the City at 831-475-7300. Persons interested in purchasing an Inclusionary Unit must complete an application and submit it to the County Housing Authority with required processing fees. Inlcusionary units are sold through traditional real estate processes and can be found online through relators when available.
Additional information may be obtained by contacting the Community Development Department at 831-475-7300.
