Two Affordable Housing Projects Planned in California, Totaling 211 Units

Affordable housing development continues to expand in California, with a real estate company securing ground leases for developments in the state. 

Safehold Inc., the New York-based real estate company, announced on May 19, 2026, that it closed ground leases for two affordable housing developments in Santa Cruz and Santa Clarita. 

A ground lease is a long-term agreement in which a tenant can develop property on undeveloped commercial land during the lease tenure. During the lease term, the tenant owns the building built on the land, while the landowner retains ownership of the land. After the lease period expires, the property is turned over to the landowner. 

Santa Cruz is a coastal community located along the Monterey Bay in Santa Cruz County, while Santa Clarita is a rapidly growing city in northern Los Angeles County. 

There is an increasing demand for affordable housing options in both coastal and inland cities in California. The state remains one of the least affordable housing markets in the country. 

A recent study by Business Insider found that California cities ranked among the most expensive cities in the U.S. to purchase a home. 

Another study revealed that homes in California command some of the highest prices per square foot in the country, leaving homebuyers in the Golden State less space for the same budget. 

The affordable housing developments in Santa Cruz and Santa Clarita are expected to deliver a combined 211 units and are scheduled to be completed in 2028, according to Safehold. 

The two affordable housing projects will be developed as Low-Income Tax Credit developments. 

The projects will be developed by development firm and Safehold customer CRP Affordable Housing and Community Development, Safehold said. 

Citi Community Capital has provided construction and permanent financing on both projects. 

“We’ve continued to expand our investment into and support of the Affordable Housing industry,” said Steve Wylder, Safehold’s Head of Investments.

About Safehold

With a portfolio of $7 billion in core ground leases, Safehold is one of the first publicly traded companies to focus on modern ground leases, according to its website. 

The company’s long-term, “highly-accretive capital” financing supports the development of affordable housing by complementing government resources and helping fill funding gaps, according to Safehold. 

Safehold operates through a long-term ground lease model to support housing developments. The company owns the land, while developers build and operate housing projects on it through 99-year ground lease agreements. 

According to Safehold, this structure helps developers secure funding more easily and moves projects forward without taking on the full cost of buying upfront.