On a 1.5-acre parcel in Morgan Hill, construction crews are building 65 apartments that will eventually house farmworker families, veterans, and households at risk of homelessness. The project is called The Magnolias. It broke ground this year. Here’s the story.
The who
Roughly half the units are set aside for farmworker families — the people who pick the garlic, the cherries, the strawberries that make South Valley farming run. The rest are for veterans and households at risk of homelessness. All 65 units are income-restricted affordable.
The why
Santa Clara County has one of the worst affordable housing shortages in the country. Morgan Hill, for all its small-town feel, is part of the same crisis. Farmworker housing is a particular gap — many of the people working in local agriculture commute in from farther south because they can’t afford to live where they work. The Magnolias is a direct response.
The how
The project is a partnership between a nonprofit developer, the city, and state and federal affordable housing programs. It took years to assemble the financing. Several funding sources stacked together got it across the line — low-income housing tax credits, state affordable housing bonds, and local contributions.
What we saw at groundbreaking
We went to the ceremony. What stood out wasn’t the politicians (though they were there). It was the farmworker families in the crowd, some of whom had signed up for housing interest lists years ago. This is what the work looks like when it actually lands.
When does it open?
Construction is a 12 to 18 month process from groundbreaking. Expect units to start coming online in late 2026 or early 2027. Application processes for affordable housing typically open several months before first occupancy — we’ll post when that window opens.
For more on Morgan Hill’s housing story, see our Housing Boom post at /blog/morgan-hill-housing-construction-2026 and our Morgan Hill Real Estate 2026 guide at /blog/morgan-hill-real-estate-2026
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Sources:
Construction begins on 65-unit affordable housing project in Morgan Hill — Morgan Hill Times at morganhilltimes.com/construction-begins-on-65-unit-affordable-housing-project-in-morgan-hill/