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With no opposition from the public, the Hollister Planning Commission approved a 17-unit apartment project designated to include all affordable units in a 3-0 vote on Sept. 25.
The commissioners also approved a six-unit residential project, which includes an inclusionary housing element.
Though it wasn’t included in the application submitted to the city, applicant Community Services Development Corporation, a nonprofit that builds affordable housing in San Benito County, intends to provide senior housing. Executive Director Sonny Flores said the goal is to set aside seven of the units for senior citizens.
He said all the units will have one bedroom and be located on the ground floor of the multi-story building. He said the nonprofit is working with the Housing Authority of the County of Santa Cruz—which also serves Hollister and San Juan Bautista—to have those units meet the extremely low income requirements.
“Our goal with working with Housing Authority is to get project-based vouchers so those units can be for extremely low income tenants,” he said.
He told BenitoLink that the corporation would still designate the seven units for seniors if they are unsuccessful with the Housing Authority.
Flores said out of the more than 300 applicants on the corporation’s waiting list seeking affordable housing, there are more than 70 who are looking for a one-bedroom unit. He said the majority of those are seniors.
“There’s a huge demand for senior affordable housing and all forms of housing from extremely low family units to moderate rate,” he said. “Currently in San Benito County, we’re seeing a huge need.”
The project on Fourth Street includes multifamily apartments with one- and two-bedroom units spread over two multi-story buildings. One of the units is proposed to be designated for very low income, 13 would be for low income, and three for moderate income tenants.
According to the California Department of Housing and Community Development’s 2025 income limits, the San Benito County area median income is $140,200 for a household of four. That size household would be eligible for very low income housing if it earns less than $66,800 and low income housing if the household makes less than $106,950.
Flores said their current rent fees on their projects vary from $1,040 to $1,125 for two-bedroom units.
The project consists of seven one-bedroom units and 10 two-bedroom units. The project also includes 25 parking spaces, and 830 square feet of common open space including a playground, according to the staff report.
Flores said the next steps for the project is completing construction drawings and returning to the city for additional permits. He said ideally those steps can be completed within 12 months and then start construction.
He said the nonprofit has funding on hand available for the project but are pursuing state and other funds.
“The reason we would definitely like to work with the city or [secure] state funding is lower costs would lower the cost [of rent] to the residents ultimately,” Flores said.
Though Commissioner Julio Rodriguez supported the project because “we are in desperate need of affordable housing,” he expressed concern about residential projects being proposed in mixed-use zone designations, which aims to encourage commercial projects to include residential elements.
However, Flores told the commissioners the nonprofit bought the property in partnership with the Dollar General store developer to meet the mixed-use zoning goals.
“Dollar General was one part of it and we were finishing the housing part of it,” he said.
In 2023, the Community Services Development Corporation completed a 24-unit, self-housing project on Southside Road. The nonprofit also developed the Sunrise Senior Apartments in Hollister and the Palm Court apartments.
Also at the Sept. 25 meeting, the commission also approved a six-unit project known as Everglen 2 that includes a medium income unit. The first iteration of the project, which included six market-rate units, was denied by the Hollister City Council in May, which cited a lack of inclusionary and multi-family elements in the project.
The newer proposal does not require City Council review and approval, and would move forward unless the commission’s approval is appealed.
The commissioners’ discussion centered on concerns that the affordable unit would be the developer’s last priority and be the last to be built and occupied.
The board decided to make the project’s approval contingent on ensuring the affordable unit be occupied no later than the fourth lot.
The project on Chapel Road is considered an extension of the 82-unit project approved in 2022 and currently under construction by KB Homes.
The previous applicant, Pad Trust’s Augie Dent, told the council in May that he removed the residential units in the undeveloped area from the original project of 88 units because a 2022 density calculation “required to take them away.”
Everglen includes a linear park and walkway totaling 1.3 acres along Hwy 25. Some of the units are planned to have attached accessory dwelling units. None of the residential units in the first phase were classified affordable.
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