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Voters Face Multiple Housing-Related Ballot Measures in Santa Cruz, Sausalito

Though 2025 is an off-year for elections, voters are going to the poll statewide because of Proposition 50, the Congressional redistricting measure sponsored by Gov. Newsom. Only two of these ballots include land use measures. But, despite the small numbers, there is a distinct pattern: both jurisdictions are upholding California’s not infrequent tradition of competing land-use ballot measures. The jurisdictions are far from surprising: the City of Santa Cruz and the City of Sausalito, neither of which is a stranger to contentious land use debates, and both of which have severe housing shortages and affordability crises. The two cities are debating very different solutions. Sausalito’s measures ask voters to approve zoning updates that will enable the city to implement a housing element compliant with state housing law. State Housing Element Law requires the City to have a housing element which plans for at least 724 new housing units at various income categories by January 30. It’s a move that other cities have used: city councils that are wary of allowing more housing put the onus on voters to approve necessary changes -- or else. In this case, the council is asking voters for piecemeal approval. Measure K calls for zoning of a portion of Martin Luther King Park for housing, and Measure J upzones 12 sites in the city’s commercial district. Both measures must pass in order for the city to reach compliance and avoid the threat of state-imposed penalties. The Santa Cruz County measures are both complex measures designed to fund affordable housing. Measure B, sponsored by the county’s Association of Realtors, would enact a 0.5% transfer tax on property sales over $4 million whereas Measure C, sponsored by members of the city council, imposes a similar tax on much smaller transactions: sales of at least $1.8 million. City staff estimates that Measure C would raise $2.5 million annually -- roughly four times more than Measure C would. If both measures pass, the one with more votes will prevail. Sausalito Measure K: Local Control Shall the measure to achieve compliance with State Housing Law mandates, by adopting a housing overlay zone allowing City-directed development on limited parts of the City-owned Martin Luther King Jr. property consistent with Sausalito’s publicly adopted Housing Element, providing capacity for no more than 50 units of housing prioritizing Sausalito’s seniors; while maintaining existing recreational, dog park, and school uses; maintaining building height limits, be adopted? Sausalito Measure J: Commercial District Local Control Shall the measure adopting various housing overlay zones to allow housing at various income categories, including housing for seniors/families/individuals, on twelve sites in Sausalito’s commercial districts, consistent with Sausalito’s publicly reviewed and adopted Housing Element – in order to maintain compliance with State Housing Element Law, preserve local land use authority, prevent state fines, and preserve historic community character, while maintaining existing required developer fees – be adopted? Santa Cruz Measure B: Parcel Tax for Workers and Climate Resilience Measure To fund affordable housing for local workers, seniors, veterans, persons with disabilities, reduce/prevent homelessness, and increase climate resilience, shall the Santa Cruz County Association of Realtors-sponsored measure, enacting an annual parcel tax of $50 and a real estate transfer tax in the amount of 0.5% in excess of $4,000,000 (with a maximum of $100,000), with certain exemptions, providing approximately $1,100,000 annually, for 10 years, subject to oversight/audits, be adopted? Santa Cruz Measure C: Parcel Tax for Housing Measure To fund affordable housing for local workers, seniors, veterans, and persons with disabilities, and reduce/prevent homelessness, shall the Housing Santa Cruz County-sponsored measure, enacting an annual parcel tax of $96 and a graduated real estate transfer tax from 0.5% in excess of $1.8 million, up to 2% in excess of $4.5 million (with a maximum of $200,000), with certain exemptions, providing approximately $4,500,000 annually, for 20 years, subject to oversight/audits, be adopted?

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