“Don’t leave taxpayers on the hook for housing costs”

 Santa Cruz Sentinal, July 8, 2026

Affordable housing is important, but taxpayers deserve an honest discussion about who pays the bills. California’s Property Tax Welfare Exemption under Revenue and Taxation Code Section 214 allows qualifying nonprofit organizations that provide low-income rental housing to pay little or no property taxes.

The city of Santa Cruz is planning for 3,736 new housing units by 2031, including hundreds of affordable units. Every new development increases demand for police and fire protection, roads, water and sewer systems, parks, libraries and other public infrastructure.

When tax-exempt housing contributes little or nothing in property taxes, those costs don’t disappear. They are shifted to homeowners and businesses through higher taxes, fees, special assessments, or reduced public services. Santa Cruz already struggles with aging infrastructure, deteriorating roads, and rising public safety costs.

Affordable housing should also be fiscally responsible. Before approving additional tax-exempt developments, city leaders should require a comprehensive fiscal impact analysis to determine how infrastructure and service costs will be funded.

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Growth should benefit the entire community — not leave existing taxpayers responsible for an ever-increasing share of the bill.

— Mike Lelieur, Santa Cruz