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Salinas staff recommend $8.46M in preliminary NOFA awards to four affordable housing projects
Summary
Staff recommended awarding $8,460,220 in preliminary funding from the city's 2025 multifamily NOFA to four projects (rehab and new construction) and to set aside funds to stabilize a city-owned Republic Cafe site; the committee approved the recommendation 2-1.
City staff recommended and the Housing & Land Use Committee approved a preliminary award package totaling $8,460,220 from the 2025 multifamily Notice of Funding Availability (NOFA) to accelerate affordable housing development and rehabilitation in Salinas.
Steven Acker, senior community development analyst, told the committee the NOFA sought to deploy multiple federal, state and local funding sources quickly and that staff received $17,981,000 in requests. Staff recommended awards to four projects and a city stabilization project for the Republic Cafe. "The purpose...was to find projects where we could deploy the funds to provide affordable housing units in a quick manner," Acker said.
Staff recommended funding these projects (recommended amounts): CHISPA/Vista De La Terraza (rehabilitation) ' $960,000; Milestone Housing, 200 Casentini Street (new construction, family) ' $3,837,000; CHISPA/St. George Apartments (new construction, senior) ' $2,372,699; Republic Cafe (city-owned stabilization/rehabilitation estimate) ' $1,290,521. Acker said other applicants, including East Laurel Phase 1 (workforce/farmworker housing) and a proposed Salinas modular project, were not recommended at this time because staff prioritized projects that could meet expenditure timelines and advance through entitlement.
Acker emphasized that the NOVA (NOFA) package and recommended awards are preliminary; final funding commitments will be subject to negotiations, conditional commitments and execution of grant and loan documents. The staff motion presented to the committee asked the committee to award the preliminary amounts and authorize the city manager or designee to negotiate and execute related conditional commitments and grant documents.
Committee members pressed staff for details on how staff determined recommended amounts and which projects could begin construction within the coming fiscal year. Staff said Vista De La Terraza was the most ready to move to construction (targeting early next fiscal year), and that other awardees must secure additional debt or equity and entitlement clearances, a process that often takes two to three years.
Council member Sellers pressed staff on the scope of the Vista De La Terraza rehabilitation (siding, window and landscaping work) and whether indoor amenity space is eligible for the city's gap funding. Staff said city funds are gap financing and typically focus on living units; eligible amenities may be financed from other funding sources, and city funds are applied pro rata against total capital when affordability covenants are required.
Public comment from Building Healthy Communities (Luis Chago Juarez) expressed support for the NOFA awards and urged continued resident engagement on timelines and affordability. Multiple remote callers experienced technical issues and could not be heard.
Motion and outcome: Council member Sandoval moved and Chair Barajas seconded staff's recommended preliminary awards and authorization to negotiate conditional commitments. Roll-call vote: Sandoval Aye; Salazar No; Barajas Aye. Motion passed 2-1 and will be forwarded to City Council.
