KING CITY — Community Housing Improvement Systems and Planning Association Inc. (CHISPA) has received a $680,000 acquisition loan to purchase property in King City and create 40 affordable homes aimed toward farmworkers in the region.
The funding is being made available through the Monterey Bay Housing Trust (MBHT), a revolving loan fund sponsored by the Monterey Bay Economic Partnership (MBEP) and Housing Trust Silicon Valley. MBHT provides early bridge financing for land acquisition, predevelopment construction or preservation of affordable homes.
“We are very excited to help bring more investment to King City and South Monterey County that will help serve farmworker families who are the backbone of our region’s workforce,” said Kate Roberts, president and CEO of Monterey Bay Economic Partnership. “CHISPA’s future permanently affordable rental housing at Mills Ranch is part of fulfilling the Salinas Valley Farmworker Housing Action Plan’s goal of creating 3,500 new homes over five years.”
The property is currently made up of five vacant parcels. CHISPA plans to build an eight-unit, two-story apartment building on each parcel, which will create 97 bedrooms among 40 affordable homes.
The units will consist of two-bedroom and three-bedroom apartments and will be reserved for households earning up to 70% area median income (AMI) with average affordability of 50% AMI.
The project was originally planned in 2007, but the developer who owned the property walked away during the Great Recession.
CHISPA bought the property, which is close to parks, a medical clinic, transit, several schools, a library and groceries, after a new owner acquired it out of foreclosure.
“We’re proud to once again be part of an exciting development in Monterey County — four years after this partnership made its first loan to CHISPA,” said Noni Ramos, CEO of Housing Trust Silicon Valley. “There is a great need for affordable homes in Monterey County and we’re thankful for the opportunity to work with CHISPA, MBEP and other partners to move projects forward quickly.”