The Capitola City Council approved an agreement with Habitat for Humanity Monterey Bay to administer a home rehabilitation program funded from the city's Housing Trust Fund.

Katie (city staff) said the city currently has $225,000 in the Housing Trust Fund from inclusionary in‑lieu fees and proposed using those dollars for a rehabilitation program to serve owner‑occupied deed‑restricted affordable units and other eligible low‑income households. Under the terms presented, Habitat for Humanity would administer grants up to $12,650 per household; if every eligible household took the full grant, the program could assist about 16 households.

Katie said Habitat's local affiliate brings volunteer labor and access to in‑kind donations that can stretch program dollars. Catherine (Habitat representative) said the local affiliate is “so excited about partnering” and noted past local work and volunteer capacity.

Councilmembers voiced support for the partnership and asked staff to report back on program take‑up and whether future prioritization (for example, families with children) would be legally feasible; staff replied they could investigate legal constraints and return with options. The council approved the staff recommendation by unanimous voice vote (motion and second recorded; “All in favor? Aye. Motion passes.”).

The program will use the Housing Trust Fund and will be administered by Habitat under an agreement; staff said the program could expand with additional funds if demand and program success warrant it.