Hikari, the first multifamily development built using modular construction in Monterey County, Calif., is home to 50 farmworker households and other working families.
Located in Salinas, a city known for its rich agriculture and made famous by John Steinbeck, the project was set to close on its financing at the end of 2016 but instead faced a $4 million budget shortfall when low-income housing tax credit (LIHTC) prices plummeted and construction costs continued to escalate.
Unwilling to give up, the Monterey County Housing Authority Development Corp. rethought its plans, switching from a traditional stick-built development to one that uses modular construction and was built largely off-site in in Idaho, says Starla Warren, president.
The move helped lower costs, save time, and propel the project forward.
Hikari is the last phase of a four-part redevelopment effort that has replaced 100 dilapidated public housing units with 200 modern, energy-efficient apartments. It’s also integral in the revitalization of the Chinatown neighborhood of Salinas.
“Our development is the first in that area in a long time, and because of that you can see revitalization occurring,” Warren says. “Somebody had to go first, and we were the catalyst to see a blighted area begin to rebuild.”
Hikari is Energy Star certified and features a stormwater system and solar energy to offset all common area electrical usage and reduce a portion of the residents’ energy costs.
The $25.8 million development has units set aside for households earning no more than 30%, 40%, 50%, and 60% of the area median income. In another move, the housing authority was able to utilize a change in the project-based Sec. 8 program to include more vouchers in the deal.
