CalHFA approves financing for 94‑unit Monterey Family Apartments in Gilroy; soil and flood mitigation noted
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Summary
CalHFA authorized bonds and recycled bond financing for Monterey Family Apartments, a 94‑unit family development in Gilroy that includes remediation of fire‑damaged soils, a potential vapor intrusion system and construction above a flood plain.
The California Housing Finance Agency board on June 23 approved financing for Monterey Family Apartments, a 94‑unit mixed‑income family development in Gilroy that will replace damaged commercial buildings and an existing dwelling on the site.
Stephanie McFadden, CalHFA’s director of multifamily programs, told the board the project will include 94 units across four three‑story walk‑ups, with 93 units rent‑restricted at 30–70% of area median income and one unrestricted manager’s unit. The construction lender is Citibank and Aegon Realty Advisors is the tax‑credit investor. The developer is Rome West Inc., an affiliate of Rome Development Corporation.
The site at 6630 Monterey Road suffered a fire on Oct. 26, 2024, which damaged structures and released hazardous substances into the soil. CalHFA said a soil management plan calls for removal of approximately 86 cubic yards of impacted soil for off‑site disposal. A supplemental Phase II report found soil gas concentrations do not pose a risk to future tenants, but the project budget includes $303,000 to install a vapor intrusion mitigation system if the Central Coast Regional Water Quality Control Board requires it.
The site contains a portion mapped in flood zone AH, areas with a 1% annual chance of shallow flooding. Board materials report the project will set the base floor elevation 24 inches above the flood zone and that flood insurance will be required until a final letter of map amendment is obtained post‑construction.
McFadden said the site consolidation will merge three parcels prior to construction loan closing, and the project expects bond allocation of $32,700,000 and to use $4,000,000 in recycled CalHFA bonds. Total development cost per unit was presented as $692,000. Board members asked about the post‑fire remediation and the prospects for a letter of map amendment; staff said they expect to obtain the necessary mapping revisions after construction.
After public comment (none) the board voted to approve Resolution 25‑18 authorizing the financing.
