Santa Cruz receives $30 million for new substance-use disorder center on Coral Street

The City of Santa Cruz has received a $30 million grant to build a new substance-use disorder center in the Harvey West area. 

The residential Coral Street Substance Use Disorder Treatment Center will feature 50 residential treatment beds and offer 24-hour, nonmedical, recovery-focused services for adults with substance use disorders.

Local individuals face long waits for residential treatment, and many endure those waits without shelter. The increase in available residential treatment aims to bridge that gap in local resources for the vulnerable and unhoused, the city said in a news release. 

“This $30 million award is a major step forward for Santa Cruz,” said Santa Cruz Mayor Fred Keeley. “This new treatment center directly addresses a critical missing piece in our homelessness response: access to residential substance use disorder treatment. By filling this gap in the health continuum, we can better support unsheltered individuals and others with the greatest barriers to care.” 

The new facility will serve vulnerable populations, including older adults, veterans, people with disabilities, those involved with the justice system and those experiencing homelessness.

The California Department of Health Care Services distributed the funding in accordance with Proposition 1. The measure authorizes the state to issue $6.38 billion in bonds to build treatment facilities for those with mental health and substance use challenges, including about $2 billion on housing for the homeless.

“We are proud to partner with the State of California and our local partners to deliver this treatment facility,” said Santa Cruz City Manager Matt Huffaker. “This investment will create lasting infrastructure to support recovery, stability, and long-term well-being in our community.” 

In its release, the city said it anticipates the funds to become available in 2026 and that planning is underway with county and other local partners.