The City of Watsonville, in partnership with Santa Cruz Metro and MidPen Housing, was awarded a $39 million grant for the Watsonville Metro Project through the state’s Affordable Housing and Sustainable Communities program. 

The project aims to overhaul the current Watsonville Transit Center into a multistory, mixed-use development that includes 79 affordable housing units with a mix of one-, two- and three-apartments, upgraded transit facilities, a new bike hub and lanes, and ground-floor commercial space and an outdoor open space. It was one of just 21 projects selected for funding, and the only one in the Central Coast.

“The AHSC award is a major investment in the future of our downtown and in the residents who rely on accessible, affordable housing and transportation,” Justin Meek, assistant community development director for the City of Watsonville, said in a media release Friday. “We are grateful for the collaboration with Santa Cruz Metro and MidPen Housing that made this competitive award possible.” 

The project previously received $2 million for the architecture and engineering phase of the project in December 2023.

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Max Chun is the general-assignment correspondent at Lookout Santa Cruz. Max’s position has pulled him in many different directions, seeing him cover development, COVID, the opioid crisis, labor, courts...