Two projects join city, South County Housing
Twenty-seven new homes to be sold at less than the going rate have drawn interest from hundreds of people hoping to buy one – and not just the teachers originally targeted for one of two projects.
The two projects, Viale and Morgan Station, are joint efforts between the Morgan Hill Redevelopment Agency and South County Housing, with financial help from Santa Clara County HOME funds. The “affordable” projects are intended to provide housing for people who need help in joining the ranks of homeowners.
The deadline to apply for consideration in the two projects is April 18.
Viale, on Watsonville Road between Calle Sueño and west of Monterey Road, is specifically intended to allow teachers in the Morgan Hill School District to afford to buy a home in the community where they teach.
The $4.5-million project includes 10, detached, single-family homes ranging in size from 1,483 square-feet for eight three-bedroom models, to 1,542 square-feet in the two four-bedroom models.
The RDA is contributing $855,000, including $400,00 in land costs. The city already owns the property.
While anyone may apply for Viale, teachers followed by other school district workers, will be given the highest priority.
Morgan Station, on East Central Avenue just west of the railroad tracks, will have four duplexes, two triplexes and three single-family 3,189-square-foot homes with cottage units above the detached garages.
The detached homes and one attached, 1,968-square-foot unit, will be sold at market rate prices – the mid $950,000s and $640,000, respectively.
The BMR units include a three-bedroom 1,632-square-foot, and two four-bedroom units, one at 1,738-square-feet and a second at 1,968-square-feet.
Morgan Station’s BMR units are open to everyone who meets the financial requirements of low to moderate income or above, which is within 80, 100 and 120 percent of the Santa Clara County median income. As such, a family of four would qualify with an income of $105,500 a year, according to Suzanne Tobin, SCH’s home buyer program manager.
Sales prices at the two developments are expected to range from $250,000 to $565,000 with mortgages from $136,000 to $500,000 depending on the buyer’s income, down payment and ability to qualify for subsidy financing.
The median house price in Morgan Hill in February 2005 was $837,823, up from $605,000 the same month a year ago. Both figures were records.
The idea of subsidized teacher-owned housing in Morgan Hill came from the desperation of seeing good teachers leave the district for areas where housing was less costly, Councilman Larry Carr said.
“That is exactly why we started working on the issue at the Silicon Valley Management Group,” he said. “It’s not just a Morgan Hill problem.
The City Council began planning in 2002 to offer clustered houses to teachers.
When council started talking to SCH the median price was $482,000.
While advertisements suggest both developments are open to all, Carr said this was not council’s design for Viale.
“We’ll be marketing this so teachers have the highest priority,” said Carr, a former school board member. “The council put this additional RDA money into the project clearly with the intention of getting Morgan Hill teachers into homes.”
One of those targeted teachers is Stephanie Neufeld.
Neufeld grew up in Morgan Hill, went to P.A. Walsh, Britton and Live Oak and returned nine years ago to teach first grade at Jackson Elementary School. It would take a long time to save up for a market rate downpayment, she said, so she is thrilled to have a chance at Viale.
“I was renting but now I live at home with family to save money for the downpayment,” Neufeld said. “Besides they said it would give me a better score (on the Viale priority list).”
Neufeld, who is single, looks at Viale as a way to stay in town and at her school, which she wants to do.
“This is really a good opportunity for me,” she said. “Once you get a home in the area, I don’t know why you would leave.”
Carr said private school teachers are in the ranking, too – there are many categories to consider – but MHSD employees would have a higher priority at Viale. Applicants for Morgan Station will be sorted by category too, but job description is not among them.
Jan Lindenthal, SCH director of housing, said they will begin processing the applications for Viale and Morgan Station after the April 18 deadline and randomly draw from those who qualify.
“We hope that the initial selection process (the informational meetings) will screen out people who may not quality or be home-ownership-ready,” Lindenthal said.
The final selection could be made within six to eight weeks after the deadline.
“They’ll be approved and prequalified,” she said, “so they can choose options (carpeting/fixtures) and line up their financing.”
The lucky new homeowners are scheduled to move in by late September or early October if one thing happens, Lindenthal said.
“If we can get it to stop raining,” she said.
Special meetings have been held for teachers at Carden Academy – a private school located on Llagas Avenue, for teachers and MHSD employees and for the general public. Another general meeting is scheduled for tonight, Tuesday, April 12, 6-7:30pm at the Community Center, Monterey Road and Dunne Avenue.
MHSD teachers will meet again Wednesday, 4-6pm, also at the center.
South County Housing is a non-profit agency that has built affordable housing for 26 years and has worked with the city many times in the past, including Terracina at Dunne and Butterfield, Villa Ciolino, a rental project behind Albertson’s that earned nationwide praise for design and livability and, most recently, Jasmine Square, next to the post office.
SCH generally operates and manages the rental units.
For market rate home details call 847-3500. Applications are available at South County Housing Corp., 9015 Murray Ave., Ste. 100, Gilroy CA., 95020. Call 842-9181.
Carol Holzgrafe covers City Hall for The Times. She can be reached by e-mail at ch********@mo*************.com or phoning (408) 779-4106 Ext. 201.
