Monterey - First Community Housing (Magnolias)

File Number: SR2021-0005/EA2021-0005

Magnolias is 100 percent affordable and is processing under SB330 and State Density Bonus laws. The project would be comprised of 66-units deed-restricted units to be developed along Monterey Road east of the Morgan Hill Community Adult School. The project would include 16 studios, 16 one-bedroom units, 17 two-bedroom units and 17 three-bedroom units. There will be one three-bedroom unit reserved for on-site staff.

First Community Housing plans for half of the project units to be a combination of permanent supportive housing (PSH) and rapid rehousing (RRH) units, restricted for households at 30 percent Area Median Income (AMI), and for which the County will provide rental subsidies and case management services. The remaining 50 percent of the units would be target to families earning up to 60 percent AMI.

SB330 is a new law that went into effect in 2020 and provides eligible housing development projects enhanced streamlining. The State Density Bonus law provides for increased density of projects depending on the number and affordability level of housing units.  As with all projects that process under State Density Bonus laws, concessions and waivers to code requirements are included as part of a project entitlement.  The project is finalizing their concession and waiver requests and those will be coming to City Council (on consent) at a future meeting.  


The project site is approximately 1.5 acres. The site is located at 17965 Monterey Road, east of the Morgan Hill Community Adult School. The land use of the site is Mixed Use Flex (7-24 du/ac) and the zoning is Mixed Use Flex (MU-F).


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 Project Plans and Specifications

 Environmental Review

 An environmental analysis will be conducted during the entitlement processing of the project.  

 Project Planner

 Gina Paolini