February 22, 2024

Housing Finance Development

It's Your Housing Finance Development

Development to Bring Affordable Housing to California’s Central Coast| Housing Finance Magazine

USA Properties Fund estimates that construction on Terracina at The Dunes will be completed in the first quarter of 2024.
Courtesy USA Properties Fund
USA Properties Fund estimates that construction on Terracina at The Dunes will be completed in the first quarter of 2024.

Construction has started on a 140-unit mixed-income housing development on the former Fort Ord site in Marina, California.

Terracina at The Dunes is the first apartment community in Monterey County by USA Properties Fund, a longtime developer headquartered in Roseville, California.

The new development will be part of The Dunes master-planned community, a 1,237-home development on the former Army post by Marina Community Partners. The Dunes also features a large shopping center—including Target, Kohl’s, Bed Bath & Beyond, and Old Navy stores—neighborhood restaurants, and a movie theater.

“It’s a beautiful master-planned community in a high-cost market, in a coastal location” said Jatin Malhotra, vice president of acquisitions for USA Properties.

The beach is just a few blocks away, along with California State University–Monterey Bay, several parks, and numerous schools, including Marina High School.

Terracina at The Dunes will have two locations that will be home to early-in-their career professionals saving for their first home to retirees living on a fixed income. The apartment communities are less than a mile apart and will share the name and staff, but each will have its own amenities, including community and fitness rooms.

USA Properties Fund acquired the parcels, 6.5 acres in total, from Marina Community Partners for a nominal fee. Marina Community Partners also provided USA Properties with almost $8 million to subsidize the development and make affordable housing a reality.

“Marina Community Partners is proud to join with USA Properties Fund to provide a range of housing affordability at The Dunes,” said Don Hofer, vice president for Shea Homes and Marina Community Partners. “The Terracina at The Dunes community will provide much-needed housing for those who work in the community or those who just prefer to live close to the amenities of the Monterey Bay area. This affordable housing would not be possible without the larger Dunes project moving forward, and exhibits Shea Homes’ and Marina Community Partners’ continuing significant commitment to The Dunes master plan and the community of Marina.”

Affordable Housing Opportunities

A public-private partnership that includes the California Housing Finance Agency (CalHFA), Chase Bank, and WNC was critical for the $71 million project to move forward, according to the development team.

Rents for Terracina at The Dunes apartments will be significantly less compared with nearby market-rate units in Marina—and available to residents that earn a wider range of income levels. CalHFA issued tax-exempt bonds for the project, and provided a long-term permanent loan and subsidy funds through its Mixed-Income Program.

“I am thrilled that CalHFA was able to provide significant financing to construct Terracina at The Dunes in Monterey County, where affordable housing is greatly needed,” said CalHFA executive director Tiena Johnson Hall. “By providing apartments for people at a mix of lower income levels, this development will allow local residents to improve their financial and housing situation without having to move away from the community they call home.”

Terracina at The Dunes will be available for low-income residents that meet an expanded range of income limits established by the California Tax Credit Allocation Committee. Renters earning 30% to 70% of the area median income—about $24,400 to $57,000 for a two-person household leasing a one-bedroom apartment—could qualify for Terracina at The Dunes.

One-bedroom apartment rents will range from about $600 to $1,455 per month. Two-bedroom apartments will lease for $715 to $1,740, while three-bedroom units will rent for about $820 to $2,000.

The new project will increase the city’s affordable housing supply by more than 30%, according to Marina city manager Layne Long. About 150 families are on a waiting list for the 420 affordable apartments in the beachside community. The average family waits at least four years before moving into affordable housing.

“We are excited that The Dunes development project continues to move forward, including the Terracina project,” Long said.

Both of the Terracina at The Dunes community sites—one will have 92 apartments, the other 48—will include a community room and a fitness room. Other amenities will include computer stations, a basketball court, a picnic area, a tot-lot play area, and laundry rooms.

Apartments will feature energy-efficient appliances and light fixtures, ceiling fans, and low-flow faucets, showers, and toilets.

The development will have a coastal architecture exterior and use a range of materials, complementing the nearby single-family homes in The Dunes master-planned community.