Real estate development is a complex, multi-faceted field that involves the acquisition, improvement, and management of land and properties for residential, commercial, or industrial purposes. It requires significant capital investment, strategic planning, and navigating a web of legal, financial, and regulatory considerations.

Developers must carefully assess the viability and profitability of potential projects, taking into account factors such as location, zoning restrictions, construction costs, market demand, and financing options. They work closely with architects, engineers, contractors, and other professionals to design and build structures that are functional, aesthetically appealing, and compliant with building codes and safety standards. Throughout the development process, developers must also engage with local communities, government agencies, and other stakeholders to address concerns, obtain necessary permits and approvals, and build support for their projects.

Successful real estate development can transform underutilized land into vibrant, thriving spaces that enhance the surrounding area and generate long-term value for investors and occupants alike. However, it also carries significant risks, such as cost overruns, construction delays, shifting market conditions, and changes in government policies or regulations. As such, real estate development requires a unique combination of vision, expertise, and risk management skills to navigate the complex challenges and opportunities of the industry.

831 Water Street, Santa Cruz rendering

Under SB 423, all the provisions of SB 35 will be extended until 2036 and expanded to cover mixed-income housing developments.

In September 2017, the state enacted SB 35 to increase affordable housing. There is potential disagreement between the state’s requirements and the desires of the local community.

To be eligible for streamlining, the project must meet all of the following criteria: Affordability: At least 50% of the proposed residential units must be dedicated as affordable to households at 80% AMI for either rental or ownership projects.

The Housing Accountability Act bars cities from rejecting projects or decreasing density based on “objective standards.” Furthermore, the state has recently upped the density bonus — a reward system…

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If you’ve been sitting on the sidelines hoping for interest rates to drop or home prices to become a little more affordable, then I hate to be the bearer of bad news, but you’re going to be waiting a long time.

Much like many markets across US metropolitan areas, the Bay Area housing market has been in a state of freeze. Sellers are unmotivated to sell, as they’d be pushed into much higher interest rates upon repurchase, and buyers are struggling to cope with high interest rates.

As discussed in our previous article, interest rates and inventory in the Santa Cruz housing market are making it difficult to transact and holding housing prices high. What’s going to happen when rates inevitably drop?

Due to extreme supply constraints, we can…

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