MidPen Housing has opened a 50-unit development that brings permanent supportive housing and key services to veterans and other vulnerable residents in Santa Cruz, California.
Once a 14-room hotel, Jessie Street Terrace has been transformed into studio and one-bedroom apartments for residents earning up to 20% and 50% of the area median income. Nearly half of the homes are designated for veterans, and another third are set aside for people who have experienced homelessness. Project-based vouchers from the Housing Authority of Santa Cruz County make every apartment even more affordable.
“Jessie Street Terrace demonstrates the transformative impact of state investment in affordable housing,” said MidPen president and CEO Matthew O. Franklin. “With financial support from the California Department of Housing and Community Development (HCD), this community has more than tripled in size, creating more homes and expanding the resources that help residents build stability and thrive.”
Franklin and project supporters celebrated the development’s opening in early September.
The new residents have access to a comprehensive array of on-site services, programs, and case management, thanks to deep collaboration between MidPen Resident Services with the Palo Alto Veterans Affairs (VA) center and the Santa Cruz County Health Services Agency.
“MidPen had a commitment early on in their vision of partnering with healthcare entities and a commitment to the idea that getting healthier requires you have a stable place to live,” said Dr. Robert Ratner, Santa Cruz County’s director of housing for health. “The other part of that vision is it’s not just a shelter. It’s also a community by having supportive services available for residents but also gathering spaces. The name of the property is the Terrace so there are multiple terraces where tenants can gather. There’s a community room. What I appreciate about MidPen is their attention to the community as well as the individuals and the support they need.”
The $38 million development is made possible through significant financial support from HCD, including funding through the No Place Like Home, Veterans Housing and Homeless Prevention (a first for MidPen), Loan Portfolio Restructuring, and California Housing Accelerator programs.
Additional funding comes from the Housing Authority of the County of Santa Cruz, J.P. Morgan, Central California Alliance for Health, and Central Coast Community Energy.
For the No Place Like Home Program units, MidPen is partnering with the Santa Cruz County Health Services Agency’s behavioral health unit, which provides on-site case management and wraparound services to the households. MidPen Resident Services and the county Health Services Agency coordinate services by county staff, including a psychiatrist, an occupational therapist, a benefits specialist, a housing coordinator, a medication management nurse, and peer support.
For the Veterans Housing and Homeless Prevention Program units, MidPen is partnering with the Palo Alto VA for on-site case management to residents and wraparound services to those residents. Services include education and employment services, life skills training, legal assistance, and veteran cultural competency mentoring.
“We’re proud to provide construction and permanent financing for Jessie Street Terrace, delivering new affordable homes with on-site services in Santa Cruz,” said James Vossoughi, executive director, J.P. Morgan Community Development Banking. “At J.P. Morgan, we believe strong communities create opportunity—and developments like this help make that possible by pairing stable housing with the support residents need to move forward. We’re honored to continue our work with MidPen Housing to create a place where residents can build stability, strengthen connections and thrive.”
The architect is The Paul Davis Partnership, and the builder is Devcon Construction.