The 73-unit multi-family apartment complex breaks ground Aug. 11
Photo courtesy city of Morgan Hill A new 73-unit multi-family apartment complex will be built at the intersection of Monterey and Watsonville roads.
By Marty Cheek
Many men and women who grow our food locally often struggle with housing issues for their families. To alleviate the problem, the first affordable apartment housing project to provide homes for farmworkers in Santa Clara County will break ground Aug. 11.
Royal Oak Village is a 73-unit multi-family apartment complex that will be built on a 3.7-acre site located on Watsonville Road near the intersection of Monterey Road. Named after the Royal Oaks Mushrooms farm located on the land for many years, the apartments are expected to be completed by the end of 2023.
“It’s ironic it was the mushroom farm and now farmworkers are going to live there,” said Rebecca Garcia, housing director with the city of Morgan Hill. “Once we’re ready, we’ll reach out to the local farmers in Morgan Hill and Gilroy and South County and reach out to the ag workers that way.”
The affordable housing project will be built by Blieu Companies (which used to be known as Urban Housing Communities). Three three-story buildings and one two-story building will offer one-bedroom, two-bedroom, and three-bedroom townhouse-style apartments. Rent will range from $1,101 to $2,106 a month depending on the number of rooms and renters’ financial state. These are extremely low income rents ($35,400 annual income) and very low income rents, Garcia said.
“The housing market was not designed to house community,” she said. “It’s just based on economics and how much money we can get for a house. I’m not saying that’s wrong. I’m just saying that’s not the system that is going to help community. If we’re going to house the community, including people who are picking our food and serving us and teaching our children — these essential people — we’re going to have to figure out how to do it and be creative about it.”
The project designates 30 units for farmworker accommodations as well as 18 units for rapid rehousing of people experiencing homelessness and families with special needs. Twenty-four apartments will be rented to low-income families and there will be a unit for an on-site manager.
The county’s farm industry employs more than 8,000 people and contributes about $830 million to the region’s economy every year. The county estimates a shortfall of 1,400 seasonal and 700 long-term housing units to support the ag industry’s employment demands.
Royal Oak Village will be the city’s fourth affordable housing community built by Blieu, providing a total of 185 units in Morgan Hill. The total development cost is $52,562,616. This is being paid through tax-exempt bonds from City Community Capital, federal and state tax credits, as well as $400,000 from the city of Morgan Hill and $5 million from the county, among other sources of funding.
The county’s financial contribution comes from Measure A — a Santa Clara County Affordable Housing Bond approved by voters in 2016 to address the area’s housing crisis.
A second apartment community dedicated to farmworker housing is on its way toward construction in Morgan Hill. Santa Clara County Board of Supervisors approved $13.2 million in funding for the Magnolias housing project at the June 28 meeting.
The 1.26-acre multi-family rental community will be located at 17965 Monterey Road. The 66-unit multi-family housing project by First Community Housing will consist of 16 studios, 16 one-bedroom units, 17 two-bedroom units, and 17 three-bedroom units. This housing project provides units for agricultural workers and unhoused families and will include a variety of amenities, including open lounge/seating areas, a central laundry facility, indoor and outdoor play spaces, secured bicycle storage, a pet wash station, a community garden, electric vehicle charging stations, and VTA eco passes for each household.
“The creation of farmworker housing is long overdue,” Garcia said. “Farmworkers struggle disproportionately with housing insecurity, leading to them sleeping in vehicles, illegally converted garages, and living doubled-up in substandard conditions. Farm workers are an essential part of the workforce in South County,”
Geoffrey Morgan, president and CEO of First Community Housing, is glad to see Morgan Hill taking steps to help South Valley farmworkers find dignified housing and hopes it will serve as a model for other cities throughout the county.
“The board of supervisors’ approval of Measure A funding was a vital step in making this vision a reality,” he said. “The Magnolias community will make a big difference in helping our most vulnerable gain stability and avoid displacement in these uncertain economic times.”
