By Jondi Gumz
Property to build affordable apartment rentals is hard to find in Santa Cruz County.
So MidPen Housing teamed up with Encompass Community Services, which was operating an aging drug treatment center on Miles Lane in Watsonville, to develop the site and neighboring properties as 72 affordable apartments and expand treatment by building a new state of the art facility.
Rendering of Sparrow Terrace
On Oct. 3, leaders of the two nonprofits along with city, county, and state officials celebrated the construction framing milestone of Sparrow Terrace at 141 Miles Lane.
This is MidPen Housing’s 14th affordable rental community in Santa Cruz County.
There will be a mix of studio units, one-bedroom units, two-bedroom units and three-bedroom units.
Completion is expected in August 2024.
These apartments are reserved for people with incomes of 30%-60% area median income (currently $46,650 to $93,300 for a family of four).
Preference for 35 rentals will be given to farmworker families.
Six are reserved for individuals who have been homeless.
The Housing Authority of Santa Cruz County will provide 43 vouchers for use at this location, which means that rentals will be offered to people on the project voucher waitlist.
Tenants pay 30% of their income toward rent and the housing authority pays the rest to the landlord.
Often people who qualify for a housing voucher to pay their rent cannot find a landlord to accept it.
There will be six buildings, a garden-style design with green spaces on 4.7 acres. Amenities include a community building with full kitchen and learning center, garden boxes, a playground, solar photovoltaic system to lower energy costs, and a revitalized wetlands habitat.
MidPen Property Management will manage the community, and MidPen Resident Services will provide free onsite services such as preparing for jobs, exercise and nutrition classes, and connections to community resources.
Residents with supportive housing needs will receive intensive case management from the County of Santa Cruz Health Services Agency as well as support from MidPen Resident Services staff.
Next door, Encompass will replace a facility its outgrown with its new Sí Se Puede Behavioral Health Center.
“Sparrow Terrace illustrates the power of collaboration, starting with Encompass Community Services, which envisioned a partnership to address the pressing need for affordable homes and expanded behavioral health services,” said Matthew O. Franklin, president and CEO of MidPen Housing.
“Thanks to a density bonus from the City, we increased the number of affordable homes on this site, and funding from the State opens doors for farmworker families and people who have experienced homelessness,” said Franklin. “We applaud our partners and City, County, and State leadership for their commitment to much-needed housing, and we look forward to welcoming residents home to Sparrow Terrace next summer.”
The Watsonville City Council approved a $2.3 million loan to support the project.
Financing also came from the Housing Authority of the County of Santa Cruz; the California Department of Housing and Community Development’s Joe Serna, Jr. Farmworker Housing and No Place Like Home grant programs; Wells Fargo; the California Community Reinvestment Corp.; and Central Coast Community Energy.
The architects are WR&D Architects of Monterey (entitlements) and LPMD Architects of Sunnyvale (construction), and the general contractor is L&D Construction Co., Inc. of Milpitas.
Encompass has already raised $13 million to build the Si Se Puede Behavioral Health Center, to provide inpatient and outpatient treatment for 1,300 people a year. The goal is to break ground in 2024.
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To learn more, visit www.midpen-housing.org. Prospective residents may join the interest list at www.midpen-housing.org/property/miles-lane