San Mateo County announced this week that it selected local developer MidPen Housing to build at least 75 affordable apartments within walking distance of the San Carlos Caltrain station, advancing efforts to add below-market-rate housing close to transit.
While the project has yet to be designed and no technical details have been released, San Mateo County — the property’s owner and one of the nation’s most expensive housing markets — said the development will be reserved for households earning up to 80% of the area median income under a long-term affordability covenant.
For individuals, that income level is about $109,000, with higher limits for larger households.
According to the county, it acquired three parcels on Walnut Street in 2024 “with the goal of creating new affordable housing in a transit-rich part of San Carlos.” From 10 developers, the county housing committee chose MidPen Housing, citing “its strong track record, deep financing experience and thoughtful design strategy.”
The decision moves the project closer to the planning and design phase.
Design and technical details are expected in 2026, with the county and MidPen Housing conducting community outreach before submitting project approval applications to the San Carlos City Council.
“Its proximity to downtown and transit makes it a key opportunity site for advancing our affordable housing goals,” said San Carlos Mayor Pranita Venkatesh. “We appreciate being included early in the developer selection process and look forward to working with MidPen Housing as we begin planning for this key affordable housing initiative.”
According to a resolution signed earlier this month, the development is intended for low-, very low-, and extremely low-income households, including public employees and individuals experiencing homelessness.
Along with awarding the project to MidPen Housing, the county authorized $250,000 for the developer to engage design professionals and conduct site analysis.
County Executive Mike Callagy said he looked forward to the county’s “collective goal to provide affordable housing to benefit our San Carlos residents.”
San Carlos is a city of about 30,000 residents, just north of the county seat of Redwood City. The city must permit around 2,735 new housing units by 2031 to meet housing goals.
The project comes ahead of a new state law, Senate Bill 79, which allows denser, taller housing near transit and lets developers override certain local zoning restrictions, while also providing exemptions based on local conditions and population size. The law takes effect July 1, 2026.
Matthew O. Franklin, president and CEO of MidPen Housing, said the organization looks forward to “engaging with local stakeholders to create a community that will reflect shared priorities and serve generations to come.”
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