Watsonville Awarded $39 Million Grant for Watsonville Metro Project

The City of Watsonville, in partnership with Santa Cruz METRO and MidPen Housing, has been awarded a $39 million state grant through the Affordable Housing and Sustainable Communities (AHSC) Program to help build the Watsonville Metro Project, a new affordable housing and transit-centered development in downtown.

Selected as one of only 21 projects statewide and the only one in the Central Coast region funded in this round, the Watsonville Metro Project will redevelop the current Watsonville Transit Center into a multi-story, mixed-use development that includes:

• 79 new affordable units, with a mix of 1, 2 and 3 bedrooms
• Upgraded transit facilities
• A new bike hub and bike lanes
• Ground-floor commercial space and outdoors forecourt

The redesigned site will create a pedestrian-friendly, transit-connected hub that improves regional mobility and supports local businesses.

"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," said Justin Meek, Assistant Community Development Director. "We are grateful for the collaboration with Santa Cruz METRO and MidPen Housing that made this competitive award possible."

This project builds on the City's 2023 Downtown Watsonville Specific Plan (DWSP), which guides efforts to revitalize downtown through new housing, mixed-use development, and expanded commercial activity. The Watsonville Metro Project aligns with the DWSP's vision of a walkable, inclusive, and vibrant downtown.

The AHSC Program, administered by the California Strategic Growth Council, funds projects that reduce greenhouse gas emissions by integrating affordable housing, sustainable transportation, and improved land-use patterns. The program supports developments that promote transit use, reduce vehicle miles traveled, enhance active transportation networks, and advance climate-resilient, equitable communities.