FOSTER CITY, CA, December 16, 2025—The California Strategic Growth Council awarded funding to MidPen Housing developments in San José, Alameda, and Watsonville that will deliver a total of 362 affordable homes alongside critical transit improvements.
The Affordable Housing and Sustainable Communities (AHSC) Program–administered by the Strategic Growth Council and implemented by the California Department of Housing and Community Development–makes it easier for Californians to live near where they work, go to school, and access daily needs. MidPen is one of the largest nonprofit developers, owners, and managers of high-quality affordable housing in Northern California.
Together with its public partners, MidPen received AHSC grants for:
- VTA Capitol Station, San José ($49.3M)
Located next to the Capitol Light Rail Station, this transit-oriented development will deliver 203 affordable rental homes, including 51 permanent supportive housing apartments for formerly homeless individuals. The project will replace an underutilized VTA parking lot with an all-electric residential building and a new transit plaza, complemented by multimodal improvements such as 2.28 miles of protected bikeways, upgraded walkways, and new bus shelters.
- Stardust Gardens, Alameda ($44.5M)
Stardust Gardens, built in partnership with community-based service provider Alameda Point Collaborative, marks the first phase of the Rebuilding Existing Supportive Housing at Alameda Point (RESHAP) initiative, creating 80 affordable family homes on surplus public land, including homes for households that have experienced homelessness. Transportation enhancements include electric ferry charging infrastructure to enable zero-emission ferry service, bike and pedestrian safety improvements, traffic calming, and new bikeways.
- Watsonville Metro, Watsonville ($39M)
Watsonville Metro will transform a downtown transit center into 79 affordable homes above a modernized regional bus station. This joint venture between MidPen Housing, Santa Cruz Metro, and the City of Watsonville enhances regional connectivity with upgraded transit facilities, two miles of new bike boulevards, and pedestrian safety upgrades.
“These new housing investments — coupled with transportation improvements — will make a real difference for families across California,” said Erin Curtis, Executive Director of the California Strategic Growth Council. “These projects give people greater opportunity — shorter commutes, lower costs, less stress and stronger connections to work, school, daily needs, and each other.”
“MidPen applauds the Strategic Growth Council for these crucial investments in affordable housing paired with extraordinary transit infrastructure for California communities,” said Matthew O. Franklin, President and CEO of MidPen Housing. “We’re eager to move forward with our partners in San José, Alameda, and Watsonville to create 362 new homes close to jobs and transit.”
“Every person in San José deserves access to housing they can afford. This MidPen project at VTA’s Capitol Station is one of the ways we can use our community resources and infrastructure to alleviate the housing crisis we face in our region,” said San José Councilmember Pamela Campos. “This project adds 203 units of affordable housing, 51 units of permanent supportive housing, and over two miles of updated public transit infrastructure to San José. Moreover, this is a monumental step in the right direction, as we facilitate people’s mobility and access to transit, so they can get to work or school with greater ease.”
“As we work together to help solve the housing crisis in the Silicon Valley, every bit of funding is crucial,” said Josselyn Hazen, VTA Transit Oriented Development Manager. “MidPen Housing is a critical partner in that work, and we applaud the California Strategic Growth Council for its understanding and support of these efforts.”
“For more than two decades, Alameda Point Collaborative (APC) has worked tirelessly and effectively to end homelessness in Alameda by providing housing and vital services,” remarked Alameda Mayor Marilyn Ezzy Ashcraft. “As co-owner of Stardust Gardens with MidPen, APC’s ability to provide critical on-site wraparound services will dramatically increase with the infusion of this grant funding, as will housing stability and residents’ well-being.”
“The AHSC award is a major investment in the future of our downtown and in the residents who rely on accessible, affordable housing and transportation,” said Justin Meek, Assistant Community Development Director, City of Watsonville. “We are grateful for the collaboration with Santa Cruz METRO and MidPen Housing that made this competitive award possible.”
The Strategic Growth Council awarded the grants under the ninth round of AHSC funding, which puts Cap-and-Invest (formerly Cap-and-Trade) dollars to work reducing greenhouse gas emissions, strengthening the economy, and improving public health and the environment.
To learn more about MidPen Housing, visit www.midpen-housing.org.