Three new housing sites under construction in Morgan Hill by affordable housing developer EAH Housing will offer 41 new apartments—including six for youth who are aging out of area foster care programs—and make beneficial use properties that have long been vacant, according to city staff.
The three mixed-use housing sites are currently under construction. Approved by the city council in February 2016, the three-site project is referred to as the “EAH Affordable Housing Scattered” project.
The city agreed to “partner” with EAH on the three sites in order to provide more housing for vulnerable residents and improve the three properties which are located on the south side of Morgan Hill.
“We took a look at sites that could alleviate some long-standing properties that hadn’t been utilized,” Assistant City Manager Leslie Little said. “It was an opportunity to revitalize sites that had been sitting vacant for a long time.”
The three properties are:
• Belle Allori, a 14-unit affordable apartment building located on 40 E. Dunne Ave. (across from the Community and Cultural Center). This site will also include about 1,200 square feet of commercial space, along with community spaces for the future residents. The property is the former site of the St. Catherine school.
• Belle Noci, an eight-unit multi-family affordable apartment complex with three stories and a parking garage on the first level. Located at 16873 Monterey Road, the site is near the intersection of Ciolino Avenue.
• Belle Salici, a 19-unit affordable multi-family apartment complex with 1,000 square feet of commercial space. This site is located at 16180 Monterey Road, the former site of Giovanni’s restaurant. The complex backs up to Keith Way on the east side of the property.
The three sites are further suited for affordable housing due to their central location to a variety of commercial and public services, including a VTA commuter bus line that goes through Morgan Hill between Gilroy and San Jose, Little noted.
Most of the 41 units throughout the three sites will be two-bedroom, with a few three-bedroom units. The six units for former foster care youth will be one-bedroom residences.
Rents at the sites will be restricted according to federal income limits for Section 8 Housing, Little explained.
EAH has utilized a variety of public and competitive funds for the scattered affordable apartment project. This includes a $4.5 million loan for the city’s housing fund, which paid for a combination of property acquisition, planning and city fees, according to a city staff report. EAH has also used county HOME funds ($756,269), Community Development Block Grant ($660,723) and County Mental Health Services Act funding ($283,267) for the transitional foster youth units.
EAH Housing did not return a phone call requesting an update on the projects.
