Magnolias (Monterey-Eden/First Community Housing)

Project Number

AAE2024-0002 (SR2021-0005), EA2021-0005

Status

Under construction

Notifications

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Project Information

Description

The Magnolias Affordable Housing Development will be a 100 percent affordable housing development consisting of 66 residential units. The project was processed under State Density Bonus Law and SB330.

The project will 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. The unit mix includes:

  1. Twenty-five percent rapid rehousing (RRH) (10 units) and permanent supportive housing (PSH) (7 units);
  2. Twenty-five percent extremely low-income units (families earning up to 30% Area Median Income (AMI)) (17 units);
  3. Fifty percent reserved for very low-income households earning up to 50 percent AMI (31 units); and,
  4. One unit reserved for on-site manager.

The seven PSH units and ten of the ELI units will serve veterans.

To learn more about housing laws and what governs development, visit the City's webpages describing various legislation.

Magnolias

The project site is located at 17965 Monterey Road, west of the Morgan Hill Community Adult School, on approximately 1.5 acres. Assessor’s Parcel Number (APN) 764-12-006.

Magnolias Site Map

Frequently Asked Questions 


Why is this project important? Who will be living in the new housing development? 

The Magnolias project is an important addition to the City’s increasing need for affordable housing. The project is 100 percent and will consist of 66 affordable housing units.  

Magnolias will serve our Morgan Hill community members who qualify for low-income housing. Magnolias will be housing low-income families, families who are currently experiencing homelessness, families who are at risk of becoming homeless, as well as veterans and farmworker families.

Who is developing the project? 

The project was made possible through a partnership with multiple agencies, with nonprofit housing organizations Eden Housing and First Community Housing bringing the project to fruition. The project received funding through Santa Clara County grants, as well, that are specifically allocated to fund affordable housing projects throughout the county.  

The project is being developed using a State Law called “Density Bonus Law” and Senate Bill 330. These legislations allow certain eligible housing projects to increase the permitted density and modify other development standards if they provide affordable housing units. Because the project is 100 percent affordable, Magnolias was eligible for approved ‘waivers’ from certain design standards to allow for the achievable density.

When was the project approved? 

The project was initially approved in 2021. Because the project required working within a specified budget, the project returned for an amendment to the approval in 2024 for minor cost-reduction redesigning.

The approval documents are available for public viewing under the ‘Project Approvals’ section below.

What is the size of the project? 

Magnolias will be approximately 75,150 square feet on a 1.5-acre parcel. The building will be 59 feet tall, which was approved through a design waiver. The initially approved project in 2021 would have been 68 feet, but the project has since reduced its height.

When will the project be built? 

The project is anticipated to break ground in mid-February.

Is this the first type of affordable housing project in Morgan Hill? 

No. There are other affordable housing projects that serve our low-income community members and their families, including the Royal Oak Village project on Watsonville Road, which serves some of our farmworker families.

Residential projects containing 2 or more units are required to comply with the City’s Inclusionary Housing Ordinance as well.

What amenities will the project provide to the Magnolias residents? 

Magnolias will provide an outdoor play area and play equipment, shade garden, BBQ and dining court, garden with planter beds, and other carefully landscaped areas for residents to enjoy shared open space within their community.

The project will also contribute to Morgan Hill’s goal for achieving public art throughout the City. Magnolias will be working with a local artist to install a floral mural on the façade of the building.

Will the development have parking for future residents? 

Yes. Although the State does not require 100 percent affordable housing projects to provide onsite parking spaces and there is no parking requirement along Monterey Road, the Magnolias project is still providing a total of 68 parking spaces (64 parking spaces for residents and 4 parking spaces for guests).

There will also be providing required electric vehicle charging stations and short-term/long-term bicycle parking spaces. The project will be providing the required accessible parking spaces, too.

How can I learn more about the project? 

The approval documents and project plans are located below this section. If you have more questions, please contact the Planning Division: planning@morganhill.ca.gov

City Council Approvals

Planning Commission Approvals

Project Plans and Specifications

Environmental Review and Documents

The City of Morgan Hill, as the Lead Agency, has prepared this initial Study for the Magnolias Monterey-First Community Housing project in compliance with the California Environmental Quality Act (CEQA), and the regulations and policies of the City of Morgan Hill, California. This proposed project qualifies for exemption pursuant to CEQA Guidelines Section 15332, Class 32 (In-fill Development).

Public Notices