In many places in California, Proposition 50 is the only thing on the ballot. But City of Santa Cruz residents have two additional measures to vote on—both related to housing affordability and homelessness prevention.
The language for Measure B and Measure C is very similar. Both ballot initiatives propose levying two types of taxes—a parcel tax and a property transfer tax—to pay for affordable housing.
The main differences are: Measure C proposes a higher parcel tax and a progressive transfer tax on property sales over $1.8 million. Measure B proposes a lower parcel tax and a flat-rate transfer tax on property sales over $4 million—it also allocates some funding for city climate projects.
But the main thing to note is that the Santa Cruz County Association of Realtors put forward Measure B for the explicit purpose of defeating Measure C. That's why the language is so similar. They're directly competing measures.
Elaine Johnson is the executive director of Housing Santa Cruz County and one of the leaders of the Measure C campaign. When Measure B emerged, she was surprised.
“I would think, if this was something that they really wanted to do, they would have started it from the beginning,” Johnson said.
While the city and local housing advocates spent almost two years developing the ballot measure, she notes, at various points throughout the process, realtors were involved.
“They were part of the conversations,” Johnson said.
But the sticking point was the property transfer tax. The realtors called it a non-starter because they thought it would reduce home sales. Johnson thought it was necessary.
“Looking at just a parcel tax wouldn't have brought in enough money,” she said, “So that's why we chose to do both. And that came after a lot of conversations, a lot of meetings, a lot of strategic thinking.”
So, if it passes, what would Measure C actually do?
“It'll house people and keep people housed,” Johnson said, “We know it's gonna build housing, right? But it's also gonna prevent people from losing housing” by increasing homelessness prevention services.
And, Johnson says, it's time for Santa Cruz to relinquish its title as the least affordable rental market in the country.
“I believe in my heart of hearts that everybody truly deserves a place to call home, where they can close that door and feel safe,” she said, “And that's the reason why I continue to do this work. And that's the reason I ask the community to join me in doing this work.”
Supporters of Measure B argue it would also support affordable housing.
“We’re giving [voters] another option, right?” said Victor Gomez, with the Santa Cruz County Association of Realtors, “we're saying, ‘Hey, if you don't wanna get taxed this much, but you support the construction of affordable housing, you could go with Measure B.’”
But why include a property transfer tax at all if realtors oppose them?
“We didn't want to include it, to be honest with you,” Gomez said. “A transfer tax had to be included as a legal requirement to be considered a competitive measure.”
They've chosen to use an element of democracy against democracy.Steve McKay, UC Santa Cruz professor
When asked whether or not he wanted Measure B to pass, Gomez didn’t give a clear answer.
“I think what we're hoping for is that, if both measures do end up failing, we could all hopefully put all this behind us and come back to the drawing board,” he said.
If neither measure passes, Gomez said the realtors’ association would be happy to start over again with the city and Measure C supporters.
Measure B and Measure C could both fail, or one could pass. If they both clear the 50% threshold, the one with the most votes goes into effect.
To some in Santa Cruz, the competing measures highlight an urgency.
“We've seen, in Santa Cruz and lots of coastal communities, those who serve the community—the teachers, the firefighters, the cops, but also the baristas—can't afford to live in the place that they serve,” said Steve McKay, a UC Santa Cruz sociology professor who has researched the city’s housing affordability problem.
McKay believes Measure C would help address this issue—in part, by signaling to the state that Santa Cruz is taking real steps to solve its housing crisis.
Measure C funding alone wouldn’t be enough, he says.
“But it's gonna show to other funders, at the state and other levels, that, ‘Look, we're doing as much as we can,’” he said. “So I think it's the matching funds that matter. While it's modest, it's more than [there’s] ever been.
As for Measure B, McKay believes it's a cynical attempt by local realtors to deceive voters. “They've chosen to use an element of democracy against democracy,” he said.
