12 MONTEREY COUNTY WEEKLY DECEMBER 11-17, 2025 www.montereycountynow.com It takes money to make money, as the old saying goes, describing how it takes an investment of cash to earn a return. In the case of Salinas, the City has been investing millions in loans to developers—more than $38.4 million over the past 10 years—for a return of 800 affordable housing units, some already completed with most on track to be completed over the next several years. Developers leverage those loans to raise the rest of the funds needed for construction. The most notable projects already completed include the 90-unit Moongate Plaza in Chinatown in 2018, 50-unit Haciendas Phase III in 2020 and the 80-unit Parkside Manor Phase I last year. The city loaned developers a combined $7.5 million. The developers raised a combined $118 million to pay for construction. In November, the Salinas City Council considered making $8.4 million in loans to create 130 new units and rehabilitate 40 more, using $4.4 million in federal money from the Home Investment Partnerships Program, known as HOME, and $3.6 million from California’s Local Housing Trust Fund program, among other government programs. “This is a very exciting time and moment,” Orlando Reyes, assistant director for the Salinas Department of Community Development, told the council on Nov. 18. He said the loans represent about 8 percent of the total development cost of each project, adding that for every dollar borrowed, developers raised $11 million more. The city put out a Notice of Funding Availability in June and received five applications asking for nearly $18 million, $10 million over what was initially available. The proposed sixunit Republic Café in Chinatown, purchased by the city in 2022, became the sixth project under consideration. City staff used a review process that prioritized how ready projects were for development. In the end the staff recommended four of the six that were further along in planning: a rehabilitation project of 40 Vista de la Terraza apartments owned by CHISPA at $960,000; 88-unit Casentini Street Apartments by Milestone Housing at $3.8 million; 36-unit St. George Apartments senior housing by CHISPA at $2.3 million; the city’s Republic Café project needing $1.3 million. Some council members expressed concern that the city’s six-unit project and a rehabilitation project were recommended over two larger projects. Reyes said the latter two were farther away from being ready to construct. “There’s an art to this sometimes, and it cannot be science,” City Manager René Mendez said, encouraging councilmembers to trust the process, adding that the city needed to balance available funds that come with required uses. Larry Hirahara is a co-founder of nonprofit Asian Cultural Experience, which is proposed to occupy the first floor of the Republic Café as a museum and cultural center. He called the project the “cornerstone” of a greater and much-needed revitalization of Chinatown. The council approved the loans without further amendments by a vote of 7-0. Seed Money Salinas’ strategy of making loans to developers is paying off with more affordable housing. By Pam Marino The old Republic Café property is in need of stabilization after a recent fire. Salinas city officials propose building six units of housing there, with nonprofit Asian Cultural Experience on the first floor. NEWS “There’s an art to this.” DANIEL DREIFUSS Meals on Wheels Salinas Valley No ni ld e r hun y l al - To r, t’s aure at n’t hapen. D a day Donate: montereycountygives.com/mows PREVENTION•EDUCATION TREATMENT•RECOVERY EMPOWER YOUR RECOVERY THROUGH EXERCISE! Regular running supports brain healing and, along with high-intensity exercise, helps reduce cravings and the risk of relapse in individuals with Substance Use Disorder. WWW.SUNSTREETCENTERS.ORG
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