***The Measure O Eligibility Application has been updated. Please use the updated application dated October 18, 2024.***

For-Sale Units:

The sales price of a Measure O for-sale unit and maximum incomes of potential buyers are determined through a formula designated in a City resolution governing the unit’s affordability. Owners must occupy the unit as their principal place of residence.

Notice of Measure O Unit Available for Sale:

The owner of a Measure O unit must submit to the City a Notice of Measure O Unit Available For Sale. The City establishes a maximum allowable sales price according to the governing resolution, and authorizes the owner to sell the property to an eligible buyer. The City then posts the unit on the Measure O webpage.

How To Buy A Measure O Unit:

Potential buyers of Measure O units may have incomes no greater than those allowable under the governing Resolution for the unit. Buyers of Measure O units should access the list of Measure O for-sale units and income limits for buyers and after determining that their incomes are below the maximum allowed, directly contact the seller of the units they are interested in.
The prospective buyer must then convince the seller that 1) the buyer’s income will be below the maximum allowed when verified, and 2) that the buyer will be able to obtain purchase financing.

If the seller agrees to consider a potential buyer, the buyer must submit a completed Measure O Eligibility Application to the Housing Authority of the County of Santa Cruz. This may only be done with the concurrence of the seller. No pre-qualifying for Measure O is permitted. Visit the General Measure O Eligibility FAQ page for FAQs.

The seller (as well as the City and the buyer) will receive a letter of eligibility from the Housing Authority confirming the buyer is eligible to purchase the unit. A buyer's eligibility will expire 3 months after issuance date.

Once approved by the Housing Authority, a Measure O eligible buyer is free to make an offer (may not exceed the established maximum sales price). If accepted by the seller, both parties enter into a purchase agreement, and establish an escrow with a title company. If the applicant is not deemed eligible by the Housing Authority, they cannot reside in the unit. 

The buyer arranges for mortgage financing through a bank or a mortgage broker. Many local lenders and mortgage brokers are familiar with the City’s program.

To complete the sale and close escrow on a Measure O unit, the buyer is required to sign an Affordable Housing Declaration of Restrictions to run with the land. The buyer must also sign a Performance Deed of Trust and other title documents, many of which are recorded against the property.

Selection of Measure O Buyer:

Sellers of for-sale units constructed under previous Measure O regulations may sell to any eligible buyer of their choice.
Sellers of Measure O units restricted under Resolution NS-27,629 or later must give preference to those who live and work in the City of Santa Cruz, followed by those who live and work in the County of Santa Cruz. A family member or employee of any person having an interest in the development is ineligible to purchase an inclusionary unit.

Subsequent Resales of a Measure O Unit:

All subsequent sellers and buyers of Measure O units must comply with the above information and procedures for as long as the unit is governed by the applicable Affordable Housing Declarations of Restrictions.

Refinance of a Measure O Unit:

Owners of Measure O units must inform the City of their intent to refinance. Fill out the Measure O Refinance Information Form and submit to the Housing Division. Once the form is received, staff will calculate the maximum refinance value for the unit and provide instructions on next steps.

Staff will work with the lender and title company on document preparation prior to close of escrow.

Transfers and Trusts:

Current Measure O owners-for more information on permitted transfers and trusts please contact the Housing Division.

 

Visit the Monitoring Page for information on Annual Compliance Monitoring

 

 

If you have any questions or need assistance, please contact the Housing Team at housing@santacruzca.gov.