SPECIAL REPORT: Affordable housing on the Central Coast
Affordable housing sounds great.
Everyone from the Governor, to one Salinas City Councilman want to make the American dream a reality.
But we examined some of the fine print and found plenty of headaches in those affordable housing deals.
And the hoops people have to jump through to get these homes…may make them not worth the price.
Hikari is one of the latest Salinas communities to offer affordable housing. Inside this 750 square foot one bedroom rental unit, you’ll find an open, inviting floor plan.
But as with so many things—even affordable housing comes with a cost.
There are countless requirements. Usually there’s a long waiting list.
And Salinas City Councilman Scott Davis recognizes the roadblock.
“We have an insatiable need for housing. No matter how many houses we develop and build, we’re not going to ever have enough,” says Davis.
But that’s just the start.
Starla Warren was the force behind developing Hikari.
This is a rental, but if you qualify to buy, there’s an income requirement.
You’ll need a down payment, usually 10% purchase price. And affordable housing is also a long-term responsibility.
You may need to live there for years—and missing payments isn’t an option. And selling your property is almost as hard as buying.
“It’s going to restrict your ability to re-sell in the future and it will restrict your ability to re-capture equity for yourself. You might have a 15, a 30, a 55 year restriction on resell,” says Warren.
One thing both Warren and Davis agree on, is there isn’t enough affordable housing in Monterey County, and the tight housing market will only get tighter.
“We’re kind of primed to have a huge explosion (for lack of a better word) in Salinas, an influx of people coming in, especially from Silicon Valley and the Bay Area where they’re priced out. They have good paying jobs there, but they’re priced out, so that’s going to take its toll on the market here in Salinas.”
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