By Nerissa Pacio

Passersby on Dunne Avenue might not realize a new eco-friendly affordable housing development has opened in Morgan Hill -- a city known more for its rolling hills and million-dollar homes than its low-income projects.

The colorful two-, three- and four-bedroom townhouses, clustered around a ranch-style clubhouse and swimming pool on a 7.2-acre site, look more like a country club than the drab, stereotypical projects of the 1970s or '80s.

“When it was first being built, I didn't even realize it was affordable housing,” said Jill Husong, a single mother who recently moved into one of the four-bedroom townhouses with her three children. “It's so striking and well-built. I have lived in a lot of places that have looked much worse and have paid much more.”

The homes are owned by First Community Housing, a non-profit in San Jose that specializes in building innovative, high-quality, eco-friendly or “green” affordable housing. The project blends well into the rural bedroom community, and was designed as a medium-density development, characterized by lower building heights and less concentrated building layouts than high-density urban design.

The project also is infused with sustainable features and exceeds the state's energy efficiency requirements by 25 percent, said Jeff Oberdorfer, executive director of First Community Housing.

Among Murphy Ranch's environmentally conscious features are recycled-content carpets, gas appliances and fluorescent lights, low-flow water fixtures, non-toxic finishes, and heating and cooling systems that use hot water recirculated from the hot water heater.

Recycled products

The community building has 99 percent recyclable office chairs and furniture made from compressed wheat byproducts. Solar panels atop the parking structures and the common building's rooftop generate electricity for outdoor lights and heat the pool and public outdoor shower.

Oberdorfer said the added cost of incorporating green features will come back in the form of tax reimbursements and rebate incentives from the state. “The additions may cost more up front,” he said, but will “save money in the long run” because they tend to need less upkeep.

First Community Housing was founded in 1986 by San Jose developers David Neale and John Brezzo. The non-profit agency has earned national awards for its 246-unit flagship project, Rincon de Los Esteros apartment complex in San Jose. Los Esteros won Builder Magazine's 1995 Grand Award and earned the non-profit group a nomination as “Developer of the Decade” from the city of San Jose.

Murphy Ranch will be the group's 11th development in Santa Clara County, but its five-year journey to Morgan Hill was not easy.

Because of the city's strict voter-mandated residential growth control initiative, the group had to go through the city's competitive application process many times to secure approval to build their 100-unit project in two separate phases, said Tom Iamesi, the group's director of housing development.

The city program, enacted by voters in 1977 and updated in 1990, established a formula that limits growth to about 200 homes per year, with 20 percent of those new homes allotted to affordable housing annually, said Jim Rowe, Morgan Hill planning manager.

The non-profit agency has built the first 62 townhomes of Murphy Ranch, and about half are occupied by new tenants. The second phase, which will build the remaining 38 homes on the site, begins in May and is expected to finish in 2004.

After the building allotments were secured, “the process was almost seamless,” Iamesi said. The group met all the city's building and design requirements and faced no opposition from residents during the public approval process, he said.

“This project is one that is particularly well done because of the quality of the project itself,” said Dennis Kennedy, Morgan Hill mayor. “If you drive by, you'll notice it because it looks very nice.”

Rents are low, with units affordable to those earning between 22 to 60 percent of the area median income. Monthly rents range from $383 to $1,126 for a two-bedroom townhouse, $443 to $1,301 for three bedrooms, and $492 to $1,449 for a four-bedroom home.

Before Devon Trovaten and her family landed their Murphy Ranch rental, they were desperately looking for a place they could afford in South San Jose for nearly a year.

“We were going to just throw in the towel and settle on a $1,500, two-bedroom apartment that had no amenities,” said Trovaten, a stay-at-home mom, whose husband works as a pest control technician in Campbell. “That rent would have left us with barely anything left over.”

Break on rent

Instead, the Trovatens have moved into a four-bedroom townhouse that rents for $1,196 per month, and are thrilled with Murphy Ranch's central location.

Funded by nine public and private investors, the complex is within a two-block walk of the Caltrain station, a day care center and retail stores.

The non-profit Mexican American Community Services Agency will offer free after-school programs and social-service workshops in the community building. First Community is also distributing free Eco Passes to residents, which grant unlimited rides on the county's bus and light-rail lines seven days a week.

The application window has closed for the first phase, but the agency is generating a list of those interested in applying for the second, said Betsy Powell, communications director.

IF YOU’RE INTERESTED

Call First Community Housing at (408) 291-8650, extension 18.

Contact Nerissa Pacio at npacio@mercurynews.com or

(408) 920-5827