The Monterey Bay Housing Trust has been established as a $10 million loan fund for the development of affordable housing projects in the counties of Monterey, San Benito and Santa Cruz.
The Trust is a collaborative effort of the Monterey Bay Economic Partnership (MBEP) and Housing Trust Silicon Valley. MBEP is committed to raising $2 million in donations (the first $500,000 of which is already committed) that will be matched with funds from Housing Trust Silicon Valley lending capital in a four-to-one ratio. As loans made to affordable housing developers are repaid from construction financing, Monterey Bay Housing Trust funds will be re-invested in other new projects in the three-county region, leveraging the $10 million fund many times over.
“We feel it is absolutely critical to bring resources into our region that could can improve the supply of available housing,” said Bud Colligan, Co-Chair of MBEP. “A thriving region is at the core of our mission and we know that having an affordable place to call home is an integral part of achieving that. With a growing population and new housing construction moving at a slow pace, we need innovative solutions.”
“Housing Trust Silicon Valley is pleased to work with MBEP to promote affordable housing in the Monterey Bay Region,” said Kevin Zwick, CEO of the Housing Trust. “These communities have been underserved by CDFIs (Community Development Financial Institutions) and the current housing shortage has escalated the need for new models of lending. With our solid banking relationships and outstanding credit rating, the Housing Trust is in a perfect position to market to affordable housing developers and manage the loan program.”
Following a similar trend throughout the San Francisco Bay area, housing costs in Monterey, San Benito and Santa Cruz counties have increased significantly and are still expensive when compared to other parts of California and the U.S. In the City of Monterey, the average price for a home this spring rose to $709,000 and in Santa Cruz, a closer commute to Silicon Valley, the county’s median home price rose to $805,500, an all-time high. A one-bedroom apartment rental can be close to $2,000 a month and an extremely low vacancy rate (about 1 percent) keeps rents on the rise. According to the most recent statistics posted by the California Association of Realtors, median price of a single family home in San Benito County was approximately $479,000 in April.
The Monterey Bay Housing Trust is a part of MBEP’s overall housing initiative, which also includes a broad housing advocacy coalition and a showcase of best practices for employer sponsored housing projects. Click here for details. For additional information on how MBEP’s housing initiative or to make a donation to the Monterey Bay Housing Trust, contact MBEP Program Manager, Jodi Nunes. For information on how to apply for financing for an affordable housing project, contact Housing Trust Silicon Valley’sTSV Chief Lending Officer, Jim Mather.
The Monterey Bay Economic Partnership (MBEP) www.mbep.biz is a regional 501c(3) nonprofit, membership organization consisting of public, private and civic entities located throughout the counties of Monterey, San Benito and Santa Cruz. MBEP’s mission is to create a thriving region with quality jobs, excellent education and health care, and a high quality of life for all residents while preserving the natural beauty and healthy lifestyle we all share.
The Housing Trust www.housingtrustsv.org was formed by community and corporate leaders in 2000 with the goal of making Silicon Valley a more affordable place to live. It makes loans and grants to increase the supply of affordable housing, assists first-time homebuyers, prevents homelessness and stabilizes neighborhoods. Housing Trust Silicon Valley has invested over $100 million in affordable housing solutions to date and created more than 13,000 affordable housing opportunities. In 2015, Housing Trust Silicon Valley became the first nonprofit Community Development Financial Institution in the U.S. to earn a credit rating from Standard & Poor’s Ratings Services. It was awarded an AA- rating because of its strong capacity to meet financial commitments.