Capitola finished construction on 7 new homes in 2024 – all of them ADUs

Capitola issued 48 building permits for new residential buildings last year as part of its effort to meet state-mandated housing requirements, according to a report by city staff. 

The annual progress report on the city’s 2024 housing element must be sent to state officials in April. It tracks Capitola’s progress toward housing goals set by the state, which require cities to plan for population growth and housing needs through 2031.

Aside from permitting 48 new residential buildings, the city lists another 70 as being in earlier stages of development as of last year. Most of those were multifamily developments with more than five units. The majority of the projects that secured building permits were aimed at low-income residents. 

But just seven housing units finished construction in Capitola last year, and all of them were smaller backyard units, known as accessory dwelling units, or ADUs. 

City staff say they have also worked to preserve existing affordable housing by reaching out to property owners whose buildings have affordability requirements that are set to expire. Officials hope to convince these owners to maintain lower rents even after their legal obligations end.

The city council is due to discuss the report’s findings and hear public comments on Thursday, before submitting it to the California Department of Housing and Community Development. 

Capitola officials are also set to decide whether to create a program that would help low-income homeowners fix up their houses, using $225,000 from the city’s affordable housing fund.

The program would offer grants of up to $12,650 to homeowners who live in homes that must remain affordable under legal agreements with the city. The money would pay for repairs needed to meet building codes and address safety issues.

Habitat for Humanity Monterey Bay would run the program if the city council approves. The nonprofit organization would receive $22,500 to manage the program, which the city estimates could help about 16 households.

Under the proposed plan, Habitat for Humanity would reach out to eligible homeowners and prioritize emergency repairs that affect health and safety. The organization would inspect homes and create detailed plans for the work needed.

The money would come from Capitola’s affordable housing trust fund, which was set aside in the city’s 2024-25 budget. The program aims to maintain the city’s supply of affordable homes by helping owners make necessary repairs they might not otherwise be able to afford.