Santa Cruz YIMBY Speaks Out Against City’s Denial of 831 Water’s SB35 Streamlined Application

Santa Cruz YIMBY is saddened by Santa Cruz City Council's 6-1 vote to deny the 831 Water Street project's SB-35 application, choosing political interference over 140 desperately needed homes, including 70 deed-restricted affordable homes, and disregarding the staff conclusions finding that it met the criteria to be approved under the state’s streamlined process. It’s sad because this is an outcome that will cost the City dearly: both in legal bills from the inevitable lawsuit that the city will lose, and the potential lost opportunity to start building desperately needed affordable housing in the most expensive small city for renters in the country. And it’s sad because this outcome was foreseen and entirely preventable.

The Council risked politicizing the SB-35 ministerial review process by appointing themselves the ministerial review body and then engaging in subjective question and answer instead of focusing on the staff-prepared checklist for the application. Tonight’s meeting went off the rails, and over the legal cliff when so much subjectivity became a part of the decision making process.

Despite concerns from neighbors, we heard many positive comments in favor of the project from representatives of local businesses, the Carpenter's Union, as well as young Santa Cruzans unsure if they will be able to afford staying here in the community.

Instead of standing up to the project’s vocal opposition from neighbors, the City is risking a costly lawsuit, and will likely lose a case that is similar to recent cases in San Mateo and Berkeley related to SB-35 and the Housing Accountability Act where courts found in favor of the projects. When the City Council politicized the ministerial review process and put themselves in charge, they put themselves in a no-win situation, both politically, and legally. Now we all lose, as precious resources that should be spent addressing more acute needs like unsheltered homelessness will be spent fighting a project that could house those very people.

Yes to People, Yes to Housing.

Santa Cruz YIMBY is a chapter of YIMBY Action, a network of pro-housing activists fighting for more inclusive housing policies and a future of abundant housing. Visit us at santacruzyimby.org to learn more.