Monterey opts for two Bay Area nonprofit developers to build affordable housing downtown.

About two years ago, the city of Monterey began a quest to turn downtown properties it owned into energy-efficient, affordable housing. After identifying four locations that could be redeveloped and fielding proposals from at least five developers, Monterey City Council voted on Feb. 16 to choose two Bay Area-based nonprofit corporations, MidPen Housing and First Community Housing.

MidPen built the Van Buren Senior Apartments in partnership with the city in 2018. It was tapped to build on three of the four locations identified: 417 Figueroa St., located across from Jack’s Park; a collection of four parcels at the corner of Van Buren and Madison streets behind City Hall; and 438 Calle Principal, a two-story city parking garage. First Community Housing was chosen for 442 Adams St., currently a city parking lot on the west side of Jack’s Park.

In all cases the city will retain ownership of the land, leasing it for $1 per year to the developers. They could bring an estimated 150 affordable homes to downtown.

Specific details about the projects are not yet available as contracts with the two developers are still being negotiated. A MidPen official declined to comment. First Community President/CEO Geoffrey Morgan says his organization proposed 50 units for the Adams Street location, with about one-quarter reserved for veterans. Morgan, a veteran himself, says his company – which has built 1,500 units of affordable housing including senior apartments in Salinas – considered the needs of the local population in crafting a proposal. They hope to begin construction in 2023 with the first residents moving in by spring of 2025.

While the council was supportive of building the units, there was disagreement over some parcels where at least two members, Mayor Clyde Roberson and Councilmember Ed Smith, wanted options for first-time homebuyers included. They voted no on proposals for the Adams Street and Calle Principal projects.