MidPen Housing Opens 50 Affordable Apartments at Jessie Street Terrace in Santa Cruz With J.P. Morgan Community Development Banking Financing

SANTA CRUZ, Calif. — MidPen Housing has officially opened Jessie Street Terrace, a 50-unit permanent supportive housing development at 314 Jessie St. in Santa Cruz, California, marking the completion of a redevelopment that converted a former 14-room hotel into affordable apartments for veterans and people who have experienced homelessness. J.P. Morgan Community Development Banking provided construction and permanent financing for the project.

Community partners and public- and private-sector stakeholders gathered Sept. 4, 2026, to celebrate the grand opening. The development is professionally managed by MidPen Property Management.

Property Details and Target Population

Jessie Street Terrace comprises 40 studios ranging from approximately 316 to 355 square feet and 10 one-bedroom apartments ranging from approximately 512 to 524 square feet. Units are reserved for residents earning 20 to 50 percent of Area Median Income, corresponding to annual incomes of $27,692 to $79,100 for one- to two-person households.

Nearly half of the homes are designated for veterans, and approximately one-third are set aside for people who have experienced homelessness. Project-based vouchers from the Housing Authority of the County of Santa Cruz are attached to the units, further reducing tenant rent burdens across the property.

The building is located within one mile of the Santa Cruz Beach Boardwalk and has access to several bus lines. Amenities include a community room with kitchen, shared laundry and computer rooms, an outdoor terrace, and bike parking. On-site services and case management are provided through MidPen Resident Services in partnership with the Palo Alto VA and the County of Santa Cruz Health Services Agency.

Capital Stack and Financing Structure

The project drew on multiple California state programs administered by the California Department of Housing and Community Development, including the No Place Like Home Program, the Veterans Housing and Homeless Prevention Program — a first for MidPen — the Loan Portfolio Restructuring Program, and the California Housing Accelerator Program. Additional funding came from the Housing Authority of the County of Santa Cruz, JP Morgan Chase, Central California Alliance for Health, and Central Coast Community Energy.

"We're proud to provide construction and permanent financing for Jessie Street Terrace, delivering new affordable homes with on-site services in Santa Cruz," said James Vossoughi, Executive Director of J.P. Morgan Community Development Banking. "At J.P. Morgan, we believe strong communities create opportunity — and developments like this help make that possible by pairing stable housing with the support residents need to move forward. We're honored to continue our work with MidPen Housing to create a place where residents can build stability, strengthen connections and thrive."

The architect is The Paul Davis Partnership and the builder is Devcon Construction, Inc. Construction was completed in February 2025 ahead of the 2026 public grand-opening celebration.

MidPen Housing's Perspective

"Jessie Street Terrace demonstrates the transformative impact of state investment in affordable housing," said Matthew O. Franklin, MidPen President and CEO. "With financial support from the California Department of Housing and Community Development, this community has more than tripled in size, creating more homes and expanding the resources that help residents build stability and thrive."

The layered financing structure — combining state soft loans, project-based vouchers, and private-sector debt — is characteristic of California permanent supportive housing developments, where multiple subsidy sources are typically required to underwrite deeply affordable rents in high-cost coastal markets. The inclusion of the Veterans Housing and Homeless Prevention Program marks a strategic expansion for MidPen into state veteran-focused capital sources.

About MidPen Housing

Founded in 1970, MidPen Housing is a nonprofit developer, owner, and manager of affordable housing in California. The organization currently serves 22,800 residents at 142 properties across 12 Northern California counties. MidPen Housing Corporation is a registered 501(c)3 nonprofit organization.