Apply for up to $350,000 state grant for transit hub and housing-near-transit plan

In plain English

County planning staff want permission to apply for a state grant of up to $350,000 from Caltrans' Sustainable Transportation Planning Grants Program. The money would pay staff time and consultants to write a "Mobility Hub and Transit-Oriented Development Strategic Plan" for the unincorporated parts of Santa Cruz County — a plan that would pick priority spots for transit hubs, denser housing near transit, and affordable housing, working with the Santa Cruz Metropolitan Transit District (METRO) and local cities. A yes vote authorizes the grant application, due October 9, 2026, and commits a local match of 11.47%, or $40,145.00, covered by existing staff salaries. The plan could lead to later General Plan or Zoning Code amendments that allow more development around transportation infrastructure.

The resulting plan would identify specific locations in the unincorporated county where transit hubs, higher-density infill, and affordable housing would be prioritized, and could lead to zoning and General Plan changes in those areas. It also aims to make the county more competitive for future construction funding.

Key facts

Grant request: up to $350,000 from the California Department of Transportation (Caltrans) Sustainable Transportation Planning Grants Program
Local match required: 11.47%, or $40,145.00, paid through existing staff time from FY 2027-28 budgeted salaries and benefits
Applications are due October 9, 2026; awards announced spring 2027; projects expected to begin summer 2027
$34.9 million is available statewide for transportation planning projects this cycle
The County would apply as lead grantee with Ecology Action as co-applicant; plan covers unincorporated areas of the county
Grant funds may support General Plan updates and Zoning Code amendments that "increase development opportunities around key transportation infrastructure"

Reasons to support

The county faces severe housing and traffic pressures: the National Low Income Housing Coalition ranked the Santa Cruz–Watsonville area the most expensive rental market in the country for the past four years, and the 2024 Texas Transportation Institute report ranked the Santa Cruz urban area 4th worst for Travel Time Index, with the average commuter wasting 87 hours in traffic.
Most of the cost would be covered by the state: the county's share is $40,145.00 in existing staff time for up to $350,000 in planning work.
The plan would create a phased implementation program and design guidance, which staff say would make the county more competitive for future funding for mobility hubs, transit transfer facilities, and affordable housing.

Reasons to oppose or change it

A likely outcome is General Plan or County Ordinance amendments allowing denser, higher-intensity development around transit corridors; residents in those neighborhoods may object to the land use changes the plan would recommend.
The $40,145.00 match is staff time that would otherwise go to other planning work, and it is spent on a plan rather than on building anything — the grant funds planning documents, not transit facilities or housing.
Even if the grant is won, nothing is built: the deliverable is a prioritized list of sites and recommendations, leaving construction dependent on future funding that is not secured.

Official wording

Authorize grant application to the California Department of Transportation Sustainable Transportation Planning Grants Program in the amount of up to $350,000 for the Santa Cruz County Mobility Hub and Transit-Oriented Development Strategic Plan (Community Development and Infrastructure - Planning)

Official agenda Staff Report Grant Application Guidelines SCZGM1000_ Grant Information Worksheet 2

Summary written by claude-opus-5 from the agenda and the Staff Report. It can contain mistakes. The official documents govern.