The City of Santa Cruz Planning Commission on Oct. 2 voted unanimously to recommend that the City Council approve proposed municipal code amendments that align the city’s demolition-conversion authorization permit and relocation requirements with state law, eliminate subjective findings for housing projects and move approval of certain demolition permits from the commission to the zoning administrator.

The changes are intended to clarify relocation assistance and replacement-housing requirements, add right-of-first-refusal language consistent with state law for lower-income households displaced by redevelopment, and streamline review by eliminating findings that are now legally required to be objective, Clara Stanger, senior planner, told the commission.

"Our ordinance already refers to the state codes, so we are consistent with the state in that, but we are adding additional language to ensure consistency with state law for relocation assistance, replacement housing, and right of first refusal," Stanger said.

Under the package described by staff, relocation-assistance rules would be adjusted so city practice aligns with state requirements; replacement housing would follow state replacement rules for units occupied by lower-income households; and the local ordinance’s requirement to replace demolished moderate- or lower-income units (currently triggered when three or more units are demolished) would remain in place where applicable. Stanger said the local code currently requires a flat two months’ rent as relocation assistance for moderate-income households, while state law provides a more detailed and income-tiered set of requirements.

Staff also proposed eliminating subjective findings and removing the planning commission as the approving authority for demolition of three or more units, because state law requires objective findings for housing projects and a number of those reviews can be processed at the staff level. Stanger said the change is expected to reduce cost and process time for applicants and the city when subjective findings are not legally supportable.

The amendments will be combined with edits to Title 21 (the city’s housing ordinance) and presented to the City Council as a single ordinance package. Stanger told the commission the schedule calls for a City Council hearing on Nov. 18 and a second reading on Dec. 9, with a small chart change affecting the Local Coastal Program to be submitted to the California Coastal Commission for review in early 2026.

Commissioners raised no formal objections during the hearing. Commissioner Kennedy moved the staff recommendation and Commissioner Thompson seconded; the commission recorded a unanimous roll-call vote in favor (Commissioner Dan: yes; Commissioner Gordon: yes; Commissioner Kennedy: yes; Commissioner Thompson: yes; Chair Paul Hammes: yes).

When asked later how often demolition of affordable or protected units comes before the planning department, Stanger said she did not have a precise annual count on hand but that such demolitions are uncommon and typically involve single-family replacements or a small number of larger housing projects for which relocation plans are posted on the city website. "We do get a number of permits to demolish like a single-family home and replace with a new single-family home," she said.

Staff framed the amendments as a targeted, legally-driven update and said broader anti-displacement measures are expected to return to the commission in a more extensive package next year, including additional relocation and anti-retaliation policies, fee waivers and deferrals for affordable housing, and possible emergency shelter overlays.

Votes at a glance

- Consent agenda (Item 2: Local Coastal Program update moved to a date certain of Oct. 16, 2025; Item 3: 1927 Ocean Street Extension — major modification and design permit to relocate the crematory at the Santa Cruz Memorial Building): Motion to approve consent items as written moved by Commissioner Kennedy, seconded by Chair Paul Hammes; roll-call vote unanimous (Dan/Gordon/Kennedy/Thompson/Paul Hammes: yes). Outcome: approved.

- Item 4: 2025 zoning updates (municipal code amendments to demolition/conversion authorization permits, relocation assistance, replacement housing and right-of-first-refusal language; elimination of subjective findings; change of review authority for demolition of three or more units): Motion by Commissioner Kennedy, seconded by Commissioner Thompson; roll-call vote unanimous (Dan/Gordon/Kennedy/Thompson/Paul Hammes: yes). Outcome: recommended to City Council.

Next steps

Staff will combine these changes with Title 21 amendments and present a single ordinance to the City Council (first hearing anticipated Nov. 18; second reading Dec. 9). The portion of the change that affects the Local Coastal Program’s chart of approving bodies will be submitted to the California Coastal Commission for review in early 2026. Staff said additional anti-displacement work will follow in a later package.