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CalHFA approves financing for Monterey Family Apartments in Gilroy; site required soil removal and flood elevation work
Summary
The board approved financing for Monterey Family Apartments, a 94‑unit, mixed‑income family development in Gilroy that requires remediation of approximately 86 cubic yards of impacted soil after a prior site fire and includes flood mitigation measures and bond allocations.
CalHFA on June 23 approved permanent financing for Monterey Family Apartments, a new‑construction family housing project in Gilroy, Santa Clara County, that will include 94 units, most rent‑restricted to 30–70% of area median income.
Stephanie McFadden, director of multifamily programs, said the development will comprise four three‑story walk‑up buildings with 112 parking spaces and a total development cost of about $692,000 per unit. The site is currently three merged parcels planned to be consolidated prior to construction closing.
The site experienced a fire on Oct. 26, 2024; a supplemental environmental report identified impacted soil requiring removal. McFadden said approximately 86 cubic yards of impacted soil will be hauled off‑site for disposal as appropriate and that the supplemental Phase II report found soil gas concentrations do not pose a risk to future tenants. The project budget includes $303,000 for a vapor‑intrusion mitigation system if required by the Central Coast Regional Water Quality Control Board.
A portion of the site lies in FEMA flood zone AH, defined as areas with a 1% annual chance of shallow flooding. The developer will build the project’s base flood elevation 24 inches above the flood zone and will require flood insurance until a Letter of Map Amendment is granted post‑construction.
McFadden said Rome West Inc. (an affiliate of Rome Development Corporation) is the developer and Pacific Housing Inc. is the managing general partner. Citibank is the construction lender and Aegon Realty Advisors will purchase both federal and state tax credits. The development has been allocated approximately $32,700,000 in bonds and expects to use $4,000,000 in recycled bonds.
Board members asked about design choices made to accommodate a post office requirement (which led to eliminating a bedroom in the plan) and about the anticipated Letter of Map Amendment timing; staff said they expect to obtain the map revision post‑construction.
The board approved Resolution 25‑18 authorizing the financing; staff will complete environmental and permitting steps and proceed to closing once conditions are met.
Ending: CalHFA will monitor remediation, flood‑elevation work and the applicant’s receipt of the Letter of Map Amendment before finalizing the permanent loan closing.
