USA Properties Fund has started construction on Terracina at the Dunes, an affordable apartment community in Marina that will provide much-needed housing to residents that earn a range of incomes under a state program.
The 140-apartment community will have two locations – at Imjin Parkway and 4th Avenue, and 2nd Avenue and 5th Street – 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.
Terracina at The Dunes is the first apartment community for USA Properties in Monterey County and part of The Dunes master-planned community, a 1,237-home development on the former Fort Ord by Marina Community Partners. The Dunes 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.
USA Properties Fund acquired the two parcels, 6.5 acres in total, from Marina Community Partners LLC for a nominal fee. Marina Community Partners also provided USA Properties with almost $8 million to subsidize the development of Terracina at the Dunes and make affordable housing a reality. Without the subsidy, construction of the Terracina at the Dunes would not be possible.
“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 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.”
ONE COMMUNITY, TWO SITES AND A WIDE RANGE OF INCOME LEVELS
Terracina at The Dunes is part of a public-private partnership that includes the California Housing Finance Agency (CalHFA), Chase Bank and WNC.
The public-private partnership was critical for the $71 million project to move forward and provide more affordable housing for low-income residents in Monterey County, where more than half of all renters are considered “cost-burdened,” spending at least 30% of their income on housing, according to the Joint Center for Harvard Studies of Harvard University.
Rents for Terracina at The Dunes apartments will be significantly less compared to nearby market-rate units in Marina – and available to residents that earn a wider range of income levels, thanks to CalHFA’s Mixed-Income Program. The state agency issued tax-exempt bonds for the project and provided a long-term permanent loan and subsidy funds through the 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.”
Marina City Manager Layne Long also applauds the project that will increase the city’s affordable housing supply by more than 30%. 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.
AFFORDABLE – AND COMFORTABLE
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. With the program, renters earning 30% to 70% of the area’s 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.
Terracina at The Dunes residents will benefit from substantially lower rents compared to market-rate apartments in Marina. 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.
Interested in living at Terracina at The Dunes?
Terracina at The Dunes is more affordable and, in many cases, will offer more amenities than nearby market-rate communities.
Both of the Terracina at the Dunes community sites – one will have 92 apartments, the other 48 – will include a community room and fitness room. Other amenities will include computer stations, a basketball court, 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 six three-story buildings – four on one site, two on the other – will have a coastal architecture exterior and use a range of materials, complementing the nearby single-family homes in The Dunes master-planned community. Construction should be completed in first-quarter 2024.
“Terracina’s design complements The Dunes on Monterey Bay master plan and makes a pretty significant contribution towards the growing need for affordable housing in Monterey County,” Malhotra said.