DATE: OCTOBER 20, 2026
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: LISA BRINTON, DIRECTOR
THROUGH: ORLANDO REYES, ASSISTANT DIRECTOR
BY: FRANCISCO BRAMBILA, MANAGEMENT ANALYST
TITLE: FY 2025-2026 NOFA MULTIFAMILY HOUSING PROJECTS UPDATE RECOMMENDED MOTION:
No action is required. This Report is an administrative update on housing development projects awarded under the FY 2025-26 Multifamily NOFA.
DISCUSSION:
The 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. Through this process the City received five (5) proposals, requesting a total of $17,981,000. However, only four projects were proposed to be funded based on available funding and priorities.
On October 21, 2025, the Housing and Land Use Committee recommended moving forward to City Council staff’s recommendation. Subsequently, on November 18, 2025 through Resolution No. 23358, City Council approved conditional commitments for the projects shown in Table 1 below.
Table 1 – NOFA Projects
Developer
Project Name
Project Address
Housing Types
Funding Committed
CHISPA
Rehabilitation of Vista de la Terraza
165-177 Carr Avenue
Multifamily Housing
$960,000
CHISPA
Saint George Apartments
376 E. Alvin Drive
Senior Housing
$2,372,699
Milestone Housing
Casentini Street Family Apartments
200 Casentini Street
Multifamily Housing
$3,837,000
City of Salinas
Republic Café
37 and 39 Soledad St
Multifamily Housing
$1,290,521
Totals
$8,460,220
Following City Council’s action, staff notified the developers of awards and has since been working collaboratively with CHISPA and Milestone Housing to advance project development, address applicable National Environmental Policy Act (NEPA) requirements, and ensure all necessary requirements are met before any funding commitments are executed. Below you will find a description and status of each project.
Vista de la Terraza Apartments
Project Address: 165-177 Carr Avenue
Project Description: Rehabilitation of 40 units in a 100% affordable multifamily apartment complex.
Partner Agency: CHISPA
City’s Contribution: $960,000
CDBG: $400,000
HOME: $560,000
Total Estimated Project Cost: $960,000
Current Status of Project: CHISPA recently closed escrow on a $10 Million refinance loan with the California Department of Housing and Community Development. The City has obtained from the United States Department of Urban Development (HUD) the Authorization to Use Grant Funds (AUGF) and NEPA clearance for the HOME and CDBG funds that will be used in this project.
Next Steps: City staff is working on finalizing the covenant documentation required to formally commit funds and enter into the required agreements.
Estimated Construction Start Date: December 2026 to January 2027 Estimated Construction Timeframe: 9 months
Saint George Apartments
Project Address: 376 E. Alvin Drive
Project Description: Construction of a new 36-unit, 100% affordable, senior apartment complex.
Partner Agency: CHISPA
City’s Contribution: $3,017,699 (including funding for acquisition) LHTF: $1,432,000
HOME: $397,000
PLHA: $543,699
PLHA: $645,000 (funding for acquisition of land issued prior to FY25-26 NOFA) Total Estimated Project Cost: $28,650,954
Current Status of Project: The project has completed the City’s land use entitlement process via a Conditional Use Permit (CUP). Next the developer will apply for California Low-Income Tax Credits (LIHTC) and will seek additional non-City financing necessary to develop and operate the project.
Next Steps: City staff is working on completing the required covenant documentation for the City’s funding and is working on completing the NEPA to authorize the use of federal funding. The City’s conditional funding commitment is contingent on HUDs authorization on the use of the federal funds and the developer securing other non-City financing necessary to develop and operate the project.
Estimated Construction Start Date: September to November 2027, contingent upon developer securing all project funding.
Estimated Construction Timeframe: Two years
Casentini Street Family Apartments
Project Address: 200 Casentini Street
Project Description: Construction of a new 88-unit, 100% affordable multifamily housing development, including a daycare center facility.
Partner Agency: Housing Authority for County of Monterey & Milestone Housing Group City’s Contribution: $3,837,000
LHTF: $570,000
HOME: $3,267,000
Total Estimated Project Cost: $59,971,302
Current Status of Project: The project has completed the City’s land use entitlement process via Site Plan Review (SPR) & CUP. Developer submitted their application for California Low-Income Tax Credits (LIHTC) on September 8th and anticipate to receive notification of award in November 2026. The tax credit funding will complete their funding stack.
Next Steps: City staff is working on completing the required covenant documentation for the City’s funding and is working on completing the NEPA to authorize the use of federal funding. The City can’t fully commit the funding until the HUD authorizes the use of the federal funds and the developer has secured the entire stack of funding of the development.
Estimated Construction Start Date: June to August 2027, contingent upon developer securing all project funding.
Estimated Construction Timeframe: Two years
Republic Café
Project Address: 37 and 39 Soledad Street
Project Description: The Republic Café is a Nationally Registered historical building in the Chinatown Neighborhood in need of substantial rehabilitation. The project will restore the building to move-in ready condition and preserve the historically significant building features. Future uses of the building include a Chinatown museum and cultural center, one 2-bedroom unit of affordable housing, a restaurant/cafe, and flexible office space.
Partner Agency: The City has completed the project design and land use entitlement process and plans to issue a Request for Proposal (RFP) by the end of calendar year 2026 to select a development partner to advance the project into construction.
City’s Contribution: $1,290,521 from LHTF
Total Estimated Project Cost: $8-10 million
Current Status of Project: The City has completed emergency cleanup and weatherproofing of the building and, in partnership with an architectural firm, developed a phased rehabilitation strategy for the property. Phase 1 includes building stabilization and health and safety improvements. A subsequent phase will focus on full rehabilitation of the structure, preservation of its historic character, and occupancy by a Chinatown museum and cultural center, an affordable housing unit, and flexible office space. Construction plans for the Phase 1 stabilization work have been finalized, and the Community Development Department has issued the necessary building permit.
Next Steps: Identify funding for Phase 1 Stabilization, which is estimated to cost approximately $3 million.
Estimated Construction Start Date: Estimated to begin in March to August of 2027. Construction on the Phase 1 Stabilization can begin once funding is identified and a construction contractor procured.
Estimated Construction Timeframe: 12 months for Phase 1 Stabilization.
ATTACHMENTS:
Presentation – FY 2025-26 NOFA Multifamily Housing Projects Update 2 2
CITY OF SALINAS
HOUSING AND LAND USE COMMITTEE