I found that number hard to believe, but then looked it up. The estimate is 2700 homeless in Santa Cruz out of a population of 60,000. In comparison, SF has estimated about 7000 homeless in a city of 800,000.
While it may be down, by 1 out of N, problems related to drug use, dealing, and the petty theft that comes with it has exacerbated issues around homelessness here in Santa Cruz. It is a complicated issue, but those seeking help are often overshadowed by the guys stripping bike parts to sell for scrap to get their next fix or very obvious drug dealing going on in and around the homeless services center.
A number of people in Santa Cruz are in a bit of an uproar due to an uptick in crimes; as well as needles littering parks, beaches, and other public spaces.
In the 20+ years I've been here, it certainly at a low point over that span of years.