Palomar Inn residents in Santa Cruz face rent hikes after affordable housing agreement ends

Added: 2026-05-22

[00:00:00]OFFICIALS...BUT TELL US THAT WITH THE AGREEMENT NOW EXPIRED...THEY FEEL LIKE THEY'RE BEING PRICED OUT## IN A CITY ALREADY STRUGGLING WITH AFFORDABILITY... RESIDENTS AT THE PALOMAR INN SAY THEY'RE NOW FACING THE POSSIBILITY OF LOSING THEIR HOME.

[00:00:16]AFTER A DECADES OLD AFFORDABLE HOUSING AGREEMENT EXPIRED BACK IN JANUARY...TENANTS NOW SAY THEIR RENT IS GOING UP.

[00:00:22]< SANTA CRUZ IS A VERY EXPENSIVE PLACE TO LIVE.

[00:00:26]VERY.> < I GOT APPOINTMENT TOMORROW FOR, RENTAL ASSISTANCE PROGRAM. IT USED TO BE IN WATSONVILLE, BUT THAT, THEY MOVED THE HOUSE DOWN HERE BECAUSE A LOT OF PEOPLE WERE, LIKE, COMMUTING, LIKE, ALL DAY, BACK AND FORTH.

[00:00:38]PEOPLE LIVING AT THE PALOMAR INN SAY THE RENT INCREASE VARIED.

[00:00:41]SOME RESIDENTS REPORTED ONLY MINOR INCREASES OF A FEW DOLLARS....WHILE OTHERS DESCRIBE SPIKES OF A FEW HUNDRED DOLLARS.

[00:00:48]ALL UNITS OF THE PALOMAR INN ARE CLASSIFIED AS AFFORDABLE....WITH THE MAJORITY OF RESIDENTS BEING ELDERLY...DISABLED... OR FORMERLY HOMELESS.

[00:00:55]<THE FRIGHTENING THING IS HOW MANY OF THE PEOPLE ARE GOING TO END UP JUST BEING KICKED OUT BECAUSE THEY CANNOT AFFORD TO PAY TO LIVE IN THE IN THE BUILDING.> A PALOMAR INN TENANT ASSOCIATION HAS SINCE FORMED... CALLING FOR AN END TO THE STEEP RENT SPIKES AND BUILDING UPGRADES.

[00:01:11]SOME RESIDENTS DESCRIBED ISSUES WITH COCKROACHES....PLUMBING PROBLEMS... AND ISSUES WITH OTHER TENANTS.

[00:01:17]THE PALOMAR INN SAYS THEY ARE WAITING TO OFFICIALLY COMMENT.... UNTIL AFTER THEY FORMALLY MEET WITH THE PALOMAR INN TENANT ASSOCIATION