DATE: OCTOBER 21, 2025
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: LISA BRINTON, DIRECTOR
THROUGH: ORLANDO REYES, ASSISTANT DIRECTOR
BY: VINCENT MONTGOMERY, PLANNING MANAGER
STEPHEN ACKER, SENIOR COMMUNITY DEVELOPMENT ANALYST
TITLE: FY 2025-2026 MULTIFAMILY HOUSING APPLICATION AWARD RECOMMENDATIONS RECOMMENDED MOTION:
A motion recommending that the City Council approve a Resolution authorizing:
The preliminary award of $8,460,220 in Local Housing Trust Fund, HOME Partnership Investment Program, HOME – Community Housing Development Organization Set-Aside, Permanent Local Housing Allocation, and Community Development Block Grant funding to the following applicants under the Fiscal Year 2025-2026 Notice of Funding Availability:
CHISPA Housing Inc. – Rehabilitation of 39 affordable multifamily units and 1 managers unit at the Vista de la Terraza apartment complex at 165-177 Carr Ave in the amount of $960,000 Milestone Housing – New construction of 87 affordable multifamily units and 1 manager unit at 200 Casentini Street in the amount of $3,837,000 CHISPA Housing Inc. – New construction of 35 affordable multifamily units and 1 manager unit at 376 E. Alvin Dr. - St. George Apartments - in the amount of $2,372,699 Republic Café – Rehabilitation and stabilization of the historic Republic Café hotel located at 37 Soledad in the amount of $1,290,521; and The City Manager, or designee, to negotiate and execute all applicable forms, conditional commitments, agreements and related documents, grant-related documents, and subsequent amendments as needed.
DISCUSSION:
City of Salinas (City) released a Multifamily Housing Notice of Funding Availability (NOFA) on June 24, 2025, announcing the availability of approximately $8 million in gap financing for affordable housing projects. This funding comprised of approximately $4.4 million in HOME Investment Partnerships Program (HOME), and approximately $3.6 million in Local Housing Trust Fund (LHTF) program. The HOME allocation of approximately $4.4 million requires a substantial amendment to the HUD FY 2023-2024, 2024-2025, and 2025-2026 Annual Action Plans.
The Multifamily Housing NOFA closed on July 30, 2025. In total, five applications were received in response to the NOFA. The total amount requested was $17,981,000, which is more than double the amount of available funding. After the application review period, the City identified additional funding sources from other grants, including Permanent Local Housing Allocation (PLHA) and Community Development Block Grant (CDBG) increasing the total available funds to $8,460,220 to support funding for the proposed projects identified in the applications. The increase to approximately $8.5 million from $8 million requires a substantial amendment to the HUD FY 2025-2026 Annual Action Plan which allocates $440,000 in CDBG funds to the NOFA. Both HOME and CDBG proposed substantial amendments are presented as a separate item for consideration of recommendation by the HLUC and consideration of approval by the City Council.
Table 1 below identifies the applications received, identifying the projects and funding requests.
Table 1
Amount Requested
Applicant
Project Address
Project Name
Description
Amount Requested
# of Units
Affordability Level
CHISPA
165-177 Carr Avenue
Vista de la Terraza
Multifamily Housing
$607,000
40 60% AMI
Milestone Housing
200 Casentini Street
200 Casentini Street Apartments
Multifamily Housing
$7,250,000
88 60% AMI
CHISPA
376 E. Alvin Drive
St. George Apartments
Senior Housing
$4,000,000
36 60% AMI
Eden Housing
855 East Laurel Street
855 East Laurel Phase 1
Farmworker Housing
$4,124,000
78 60% AMI
RH Community Builders
300 Monterey Street
Salinas Modular
Multifamily Housing / PSH
$2,000,000
66 80% AMI
Totals
$17,981,000
308
Applications were evaluated through a Rank and Review process involving multiple City departments including Community Development, Current Planning, and Public Works. Application assessment was based on the NOFA criteria including project readiness, leveraging of other funding sources, project attributes, alignment with current Neighborhood Revitalization plans, developer experience, and project feasibility.
Additionally, City staff identified an active capital project, not a NOFA applicant, the Republic Café in the Chinatown neighborhood of Salinas. The Republic Café project requires substantial financial resources to fund the immediate stabilization and rehabilitation of the building at 37 and 39 Soledad Street. This includes remediation of fire damaged buildings, predevelopment professional architectural, surveying, landscaping and other real estate development costs.
Staff recommends the following funding allocations identified in Table 2 below. Due to timeliness of implementation and the readiness of the projects to receive and spend funds, staff has determined the proposals from Eden Housing and RH Community Builders will not be funded through this NOFA. The City remains committed to supporting the development of affordable housing and will continue engaging with the developers to identify alternate funding opportunities to advance these projects.
Table 2
Recommended Funding
Applicant
Project Address
Project Name
Description
Amount Requested
Amount Recommended
Funding Source(s)
CHISPA
165-177 Carr Avenue
Vista de la Terraza
Multifamily Housing
$607,000
$960,000
HOME CHDO, CDBG
Milestone Housing
200 Casentini Street
200 Casentini Street Apartments
Multifamily Housing
$7,250,000
$3,837,000
HOME, LHTF
CHISPA
376 E. Alvin Drive
St. George Apartments
Senior Housing
$4,000,000
$2,372,699
HOME, LHTF, PLHA
Eden Housing
855 East Laurel Street
855 East Laurel Phase 1
Farmworker Housing
$4,124,000
$0
N/A
RH Community Builders
300 Monterey Street
Salinas Modular
Multifamily Housing / PSH
$2,000,000
$0
N/A
City of Salinas
37 and 39 Soledad St
Republic Cafe
Multifamily Housing
$2,000,000
$1,290,521
LHTF
Totals
$19,981,000
$8,460,220
Together, the recommended NOFA awards will support the development of approximately 164 total affordable housing units throughout the City, which includes the rehabilitation of a 40-unit affordable housing development. Funding recommendations will be presented at City Council on November 18, 2025, for consideration of approval.
ATTACHMENTS:
Presentation – Multifamily NOFA Recommendations
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