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Board delays inclusionary‑housing code change, directs staff to await nexus study

Santa Cruz County Board of Supervisors · December 19, 2025
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Summary

Supervisors debated a proposed code cleanup to require the county’s existing 15% inclusionary requirement apply to rental projects over seven units. After lengthy discussion about market dynamics, density bonus law and pending financial feasibility work, the board voted to table the amendment until completion of a nexus study.

The Board of Supervisors on Tuesday declined to change county code immediately to require the county’s long‑standing 15% inclusionary requirement be applied as an on‑site mandate for rental projects larger than seven units.

Supervisor Justin Cummings proposed the code cleanup to align the county’s rules so that the existing 15% inclusionary requirement (historically applied to for‑sale developments) would also be required for rental projects rather than allowing developers to opt for in‑lieu or fee alternatives. Proponents said bringing the code into alignment would better guarantee affordable units are built alongside market‑rate housing.

Planning staff warned the board that a pending nexus and financial feasibility study — designed to test the economic impact of inclusionary percentages and affordable‑housing impact fees — should inform any change. Boardmembers debated market conditions, the effect of state density‑bonus law, recent “builder’s remedy” applications and whether imposing on‑site requirements could discourage market‑rate rental development in areas where zoning or financial constraints already make projects marginal.

After extended public comment and discussion, the board voted to table the code amendment and wait for the results of the nexus study before making code changes. Staff said the nexus study is underway and expected to be presented to the board in mid‑2026; any ordinance drafting would follow that analysis.

What happens next: Staff will return with the nexus study results and a recommendation that analyzes the economic feasibility and potential effects of any inclusionary requirement changes before the board considers code amendments.