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Developer outlines Jacaranda Gardens success and seeks MHP funds for adjacent 72‑unit project
Summary
Chelsea Investment presented the recently completed Jacaranda Gardens and a proposed adjacent project, Palafiro, to El Centro City Council, saying Jacaranda filled a strong local demand and that the developer will apply for state soft‑debt (MHP) to support 72 new units, including units for people with developmental disabilities.
Bridal Lendergan, senior development manager for Chelsea Investment, presented an overview of Jacaranda Gardens and a proposed follow‑up project, Palafiro, during the El Centro City Council meeting. She said Jacaranda Gardens is a 96‑unit development with units deed‑restricted at or below 60 percent of area median income and that the project drew more than 1,600 applicants.
Chelsea Investment, Lendergan said, has developed more than 12,500 units companywide and more than 300 affordable units in El Centro over about 20 years of work in the city. She credited city staff — naming Adriana and Felix — for help with permitting and infrastructure during construction.
Lendergan told the council that rising construction costs, COVID‑era supply chain disruptions and higher interest rates increased the Jacaranda project budget while the city helped bridge a portion of the financing gap. She described the proposed adjacent project, Palafiro, as a planned 72‑unit development with 18 units set aside for people with developmental disabilities. Chelsea said it intends to apply for a Multifamily Housing Program (MHP) award of about $16 million and listed total development costs of roughly $40 million for the project.
Lendergan said state soft‑debt sources would be used to fill remaining financing gaps. Council members asked clarifying questions about the MHP program; Lendergan described it as subsidized, low‑interest “soft” debt meant to reduce the project’s long‑term financing costs and make the units affordable. A council member asked about per‑unit cost; using the figures Lendergan provided ($40 million total for 72 units), the per‑unit development cost is approximately $556,000.
Lendergan closed by thanking city staff for their role in the Jacaranda project and said Chelsea would continue preparing the MHP application.
No formal council action was taken on the presentation itself; staff and the developer indicated the next steps would be finalizing and submitting the MHP application and returning to the council with any request for city funding or approvals.
