The City of Morgan Hill purchased a 9,287 square foot property on the corner of First and Depot Street that they plan to use as temporary public parking while they go through the process of designing and constructing a special needs affordable housing unit.
The city won a blind bid in probate court with an offer of $786,500 to acquire the property last week, according to Assistant City Manager for Community Development Leslie Little. They used monies from an Affordable Housing Fund to cover the cost. Little said there were many bids submitted.
A demolition notice is posted on the existing, boarded-up 871-square-foot house at 85 E. First Street that also consists of a dilapidated accessory structure in the fenced-in backyard. City staff are now accepting demolition contracts during the 15-day waiting period as written on the notice.
“Our city housing program bought the property and we will be trying to figure out what kind of affordable housing project to build on that site,” said Little, noting that the project is in its infancy but will likely be a small disabled housing unit or some kind of special needs housing to be determined.
In the interim, once demolition is completed, the city will pave the ground, install new fencing in the backyard between other property owners and put in some lighting for 20 to 23 temporary parking spots, including at least one handicapped space.
“(The parking) is for temporary use so it just doesn’t sit there unused,” Little said.
No target date has been set for the affordable housing project since the city just acquired the land, but it could take two to three years minimum, according to Little. Since the property is in the downtown, Little added the city does not have to compete for allocations to develop it.
“Our city housing program has lots of aspirations for serving folks with different needs,” said Little, adding that they will likely find a housing partner to help manage the property.
A property goes to probate court when someone has died without a will or instructions on what to do with it. The property is then sold on behalf of the heirs and administered in court. Prospective buyers compete blindly by placing bids without knowing what others are valuing the property. There is a 15-day waiting period prior to the winning bid (in this case the city’s bid) is announced.
