Santa Clara developer plans 40 affordable housing units with new fee structure

The Soledad City Council convened on June 4, 2025, to discuss significant developments in affordable housing, a pressing issue for the community. The meeting highlighted a project that has evolved since its initial approval in 2019, now aiming to provide a total of 52 affordable housing units, with a focus on meeting the needs of low and very low-income families.

The developer presented a revised plan that includes 40 multifamily affordable units, a reduction from the originally planned 52. This adjustment has prompted discussions about the implications for the community and the need for additional affordable housing options. The council emphasized the importance of ensuring that the community's housing needs are met, particularly for moderate-income families.

In response to the reduction in units, the council proposed an in-lieu fee structure to compensate for the shortfall. The developer agreed to pay $20,000 for each of the 23 moderate-income units that will not be built, totaling $450,000. This fee is intended to support the development of affordable housing elsewhere in the city, ensuring that the community continues to work towards its housing goals.

The meeting also included comparisons of housing impact fees from neighboring jurisdictions, providing context for the council's decisions. For instance, cities like Salinas and San Luis Obispo have established fees that reflect their housing market conditions, which the council is considering as they finalize their own fee structure.

As the council moves forward, the focus remains on balancing development with the community's need for affordable housing. The decisions made in this meeting will play a crucial role in shaping Soledad's housing landscape, ensuring that all residents have access to safe and affordable living options. The council's commitment to addressing these challenges reflects a broader goal of fostering a vibrant and inclusive community.