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OVERVIEW
The Mil on Main is a housing project developed by The Core Companies (Core), located at 1388 South Main Street in Milpitas and directly across the street from the VTA Great Mall Light Rail Station. Fully approved by the City of Milpitas City Council in October of 2018, the 220-unit apartment community will provide future residents a high quality of life with access to parks, schools, health care, retail, transit, jobs throughout the entire Bay Area and other essential services.
The Mil was ready to begin construction in the summer of 2020 when the coronavirus hit. In order to preserve this important housing opportunity, The Core Companies is pursuing financing that will increase the number of deed restricted affordable units to take advantage of public financing opportunities and accelerate the start of construction. The updated project proposal is still consistent with what the city council approved in October of 2018. The size, scope, scale, design and amenities will not differ from what was already approved, and the project will conform with all of the existing Conditions of Approval. Core is considering two revisions that are allowed within our approvals: increasing the number of affordable homes from the previously approved ten units to as many as 100% affordable and changing some of the two-bedroom units to three-bedroom units. At 100% affordable, The Mil alone would meet over 34% of Milpitas’ Low Income RHNA target.
Core has deep experience in building high-quality affordable housing, having developed and built over 3,000 tax credit affordable homes in Santa Clara County over the last 30 years. Working to leverage public monies for public good is a core value and core capability of the company.
PROJECT AREA MAP
TIMELINE
PROJECT COMPARISON
AFFORDABLE HOUSING IN MILPITAS
The City of Milpitas has an obligation to produce new housing units through the Regional Housing Needs Allocation (RHNA). For the 2014-2022 cycle, the California Department of Housing and Community Development (HCD) and the Association of Bay Area Governments (ABAG) determined that the City of Milpitas must plan for 3,290 new units of housing. The City’s anticipated new goal for the 2023-2031 cycle has doubled to 6,579 total new units. The Mil’s pivot to an affordable housing project provides the City of Milpitas an opportunity to leverage public funds for a public good. Fully entitled and shovel ready, the project allows Milpitas to prioritize affordable housing and begin quickly working toward their allocations. The updated Mil on Main could meet over 6% of the existing overall goal and more than a third of the existing Low-Income goal if it becomes 100% affordable.
| Income Category | 2014-2022 RHNA | The Mil | % of 2014-22 |
|---|---|---|---|
|
Very Low |
1,004 |
44 |
4.4% |
|
Low Income |
570 |
176 |
30.9% |
|
Moderate |
565 |
|
|
|
Above Moderate |
1,151 |
|
|
|
TOTAL |
3,290 |
220 |
6.7% |
Very Low Income – 0 to 50% AMI
Low Income – 50% to 80% AMI
Moderate Income – 80% to 120% AMI
The Core Companies, in collaboration with the City of Milpitas and various other public resources, will arrive at a mix of AMI’s for The Mil in order to meet Milpitas’s affordable housing goals and serve the region’s economically diverse workforce. Targeting a variety of income tiers will allow educators, nursing aides, EMTs, postal workers, delivery drivers and many other essential workers to live and thrive in the local community.
The below represents the various potential ranges for AMI designations at The Mil, and the community members who may qualify for each level.
RENDERINGS
FAQ
The Mil on Main is a 220-unit apartment community located at 1380-1400 South Main Street near the Great Mall Light Rail Station. Developed by The Core Companies (Core), The Mil on Main was approved by the Milpitas city council in October of 2018. Of the 220 units, ten are rent restricted to households at 50% of the Area Median Income (AMI) and the balance are unrestricted, market rate homes. Its location close to regional transit (Light Rail and BART), jobs and amenities make it an ideal location for multifamily housing.
The Mil has been delayed due to Covid-19, but we are hoping to start construction in early 2024. To do so, we are proposing to increase the number of apartments that are deed restricted for affordable housing. In addition, we are looking to add some three-bedroom apartments to the current mix of studio, one-bedroom and two-bedroom homes.
The project is consistent with what the city council approved in October of 2018. The size, scope, scale, design and amenities will not differ from what was already approved and the project will conform with all of the existing Conditions of Approval. We are, however, considering two revisions that are allowed within our approvals:
Core has deep experience building high-quality affordable housing and will work with the City of Milpitas, Santa Clara County and/or the state to leverage these public monies for public good.
The project would be financed with a combination of Low-Income Housing Tax Credits and Tax-Exempt Bonds, Santa Clara County Measure A funds and/or funds from Housing and Community Development’s (HCD) Affordable Housing and Sustainable Communities (AHSC) funds. The majority of the units would be built for Very Low Income (VLI) households and Low Income (LI) households (per TCAC definitions).
Please see the above exhibit that illustrates what types of jobs and households would qualify for these income ranges.
Currently, it is not legally permissible to provide a preference to Milpitas residents above any other qualifying renter. However, there are two pieces of legislation being proposed, SB 649 by Senator Cortese and AB 1143 by Assemblymember Berman. Should any legislation pass that would permit a local preference, The Mil would implement that policy.
The Mil is a fully entitled and shovel ready project. No additional approvals are required to make The Mil an entirely affordable housing project – once the funding is secured the project will start construction, estimated to begin at the beginning of 2024.
Following the completion of construction, The Mil would pay approximately $8,000,000 in Transit Area Specific Plan (TASP) impact fees to the city. This fee goes into the Transit Area Development Impact Fund (TADIF) to contribute to TASP area projects including the below:
The project will also contribute approximately $800,000 in school impact fees as well as up to $120,000 annually to the TASP once completed.
RHNA stands for Regional Housing Needs Allocation. Every eight years, the state allocates the number of housing units each city should strive to build, and at which affordability levels, in order to meet the region’s pressing housing needs. The city’s allocation for the period of 2014 to 2022 was 3,290 units. The anticipated new goal for 2023-2031 has doubled to 6,579 total new units. The updated Mil on Main could meet over 6% of the existing overall goal and more than a third of the existing Low Income goal if it becomes 100% affordable.
The plan is to keep parking consistent with existing and approved plans. No further entitlements are anticipated as related to parking or other project elements.
Established in 1989, the Core Companies have developed a strong track record for identifying well-located sites, securing difficult entitlements, and building great residential communities. Since its inception, Core has developed more than 400 homes, townhomes and condominiums, as well as 2,300 apartment units.
The Mil on Main project team is available to answer any questions you may have about the project and its recent updates. You can reach a team member by emailing us or visit The Core Companies Website.