T
he Santa Cruz County Association of Realtors has unexpectedly opposed the Workforce Housing Solutions Act, a proposed affordable housing tax measure that would raise $5 million annually through a parcel tax and a luxury home sales tax. The real estate lobby's opposition comes despite their involvement in crafting the proposal.

    Renee Mello, president of the Santa Cruz County Association of Realtors, expressed concerns about the funding measure, which includes an annual $96 parcel tax on most lots throughout the city and an additional tax on homes sold for over $1.8 million. The group's opposition is seen as a significant setback for advocates who had hoped to avoid the wrath of the real estate lobby.

    Mayor Fred Keeley and Housing Santa Cruz County Executive Director Elaine Johnson were taken aback by the announcement, having spoken with representatives from the group earlier in the day without being informed of their decision to oppose. Keeley described the opposition as "somewhat unsurprising," but expressed hope that it would not escalate into a full-scale campaign against the measure.

    The real estate lobby's criticism centers on the luxury home sales tax, which they argue penalizes homeowners and creates a hurdle for first-time buyers. The group had initially supported a parcel tax proposal, but opposed the current measure due to the addition of the transfer tax. Advocates must now collect just under 4,000 signatures over the next six months to qualify the measure for the November 2025 ballot.