New Affordable Homes Rising in Watsonville

Community leaders and partners celebrated the construction framing milestone of Sparrow Terrace: 72 affordable homes, including 35 for farmworker families and six for individuals who have experienced homelessness
October 3, 2023
Sparrow Terrace wall raising

WATSONVILLE, CA—On October 3, partners from the city, county, and state came together to celebrate the construction framing milestone of Sparrow Terrace, MidPen Housing’s fourteenth affordable rental community in Santa Cruz County.

Located at 141 Miles Lane, Sparrow Terrace will offer 72 affordable apartments for people with incomes of 30%-60% Area Median Income (currently $46,650-$93,300 for a family of four). Thirty-five homes carry a preference for farmworker families and six homes are reserved for individuals who have experienced homelessness. Forty-three Project-Based Vouchers from the Housing Authority of Santa Cruz will deepen the affordability, allowing the development to serve residents at even lower income levels. 

The property’s six buildings, including a community building with full kitchen and learning center, feature a lush, garden-style design with green spaces, garden boxes, a playground, solar photovoltaic system, and a revitalized wetlands habitat. MidPen Property Management will professionally manage the community, and MidPen Resident Services will provide free, onsite services such as employment preparation, exercise and nutrition classes, and connections to community resources. Residents with supportive housing needs will receive intensive case management from the County of Santa Cruz Health Services Agency as well as support from MidPen Resident Services staff. 

“Sparrow Terrace illustrates the power of collaboration, starting with Encompass Community Services, which envisioned a partnership to address the pressing need for affordable homes and expanded behavioral health services,” said Matthew O. Franklin, President and CEO of MidPen Housing. Next door to Sparrow Terrace, Encompass Community Services will be replacing an outgrown facility with its new Sí Se Puede Behavioral Health Center. 

“Thanks to a density bonus from the City, we increased the number of affordable homes on this site, and funding from the State opens doors for farmworker families and people who have experienced homelessness,” said Franklin. “We applaud our partners and City, County, and State leadership for their commitment to much-needed housing, and we look forward to welcoming residents home to Sparrow Terrace next summer.” 

Financing for the development was provided through both public and private sources including the City of Watsonville; the Housing Authority of the County of Santa Cruz; the California Department of Housing and Community Development’s Joe Serna, Jr. Farmworker Housing and No Place Like Home grant programs; Wells Fargo; the California Community Reinvestment Corporation; and Central Coast Community Energy. The architects are WR&D Architects (entitlements) and LPMD Architects (construction), and the general contractor is L&D Construction Co., Inc.

To learn more about MidPen Housing, visit Interested prospective residents may visit to join the interest list.