MidPen Housing Eyes 52 Affordable Rentals

at 1098 38th Ave.

Nonprofit Seeks Capitola Loan for Pre-development

By Jondi Gumz

A2017 state law that created a $75 recording fee on real estate documents to fund affordable housing is providing Capitola with $481,732, which may be tapped by the nonprofit MidPen Housing to build 52 affordable rental apartments at 1098 38th Ave.

The property, formerly the site of convalescent home Capitola Manor on nearly 2 acres, was sold in 2016 for $5.2 million.

MidPen Housing acquired the property on March 10, according to city staff, and approached City with a request for a $250,000 loan for predevelopment planning costs.

MidPen decided on a 100 % affordable multifamily project and hired Architects FORA of San Jose to design it.

The Capitola loan would be allocated this way: $200,000 for architectural design, $32,000 for civil and survey costs, and $19,800 in geotechnical reports and testing.

MidPen expects the City would consider providing additional funding in the future, according to Capitola Community Development Director Katie Herlihy.

MidPen has built rental apartments in Watsonville at two former farm labor camps and family apartments in Aptos, and is building multi-family housing at 1500 Capitola Road in Live Oak and at a former motel in Santa Cruz.

All of these are designed as 100% affordable.