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32000015
32000014

10868 Dougherty Ave, Morgan Hill, CA 95037 For Sale

The Grail Group - Legacy Real Estate & Associates
Listed by The Grail Group - Legacy Real Estate & Associates
$1,800,000
127 days on market
Updated 7 days ago

Build 12 Units: Farmworker's Housing, Build Home on 10 acres

Details
APN 712-08-086
Property Type Land
Sub Type Agricultural, Farm (+1)
Price Per Acre $180,000
Class A
Acreage 10.010
Zoning A12.5

Build 12 Units for Housing for Farmworkers in Morgan Hill or Build Your Dream Home on 10 Acres

Marketing description

One Can Build Your Dream Home or 12 Farm or Housing Units for farmworkers on this property.

This is 10 Acres one can build your dream home or farm the land. It has PGE (Power) +Well (water) + new shed. If Buyer is going to build units and rent these units out to farmworkers.

Buyer to verify use and the new laws regarding building farmworker housing on agricultural land. It is already zoned agricultural land and Governor Newsom has already signed a new law regarding expanding housing for farmworkers. It is called the California Employee Housing Act (Health & Safety Code § 17021.6) + Also the Governor signed AB 3035 (Pellerin) which cuts through regulatory red tape by streamlining the approval process for farmworker housing in Santa Clara and Santa Cruz counties, speeding up development to meet the urgent demand for more housing. This is an awesome location. It is a beautiful piece of land. Buyer to do due diligence regarding the new laws for building units for farm workers and the laws regarding renting these units to farmworkers or any uses they wish to do on the property or if they wish to build a home on the property. Governor Newsom has already signed a new law regarding expanding housing for farmworkers. It is called the California Employee Housing Act (Health & Safety Code § 17021.6).

In short the new law is for agriculture land to allow farmworker housing on agriculture land. The new state law AB 3035 (Pellerin) cuts through regulatory red tape by streamlining the approval process for farmworker housing in Santa Clara and Santa Cruz counties, speeding up development to meet the urgent demand for more housing.

Under the California Employee Housing Act (Health & Safety Code § 17021.6), workforce housing for agricultural employees containing up to 12 units or 36 beds is legally classified as an “agricultural use” rather than a residential development. This grants projects a streamlined, “by-right” approval process that bypasses the long delays, conditional use permits, and complex rezoning typically required for residential housing.

The new includes the following:

  • Worker Force or Employee housing of agricultural workers (≤12 units / 36 beds) is legally built on land that is zoned agricultural use

  • No conditional use permit, zoning variance, or discretionary approval required beyond standard agricultural uses

  • .The Governor also signs AB 3035 (Pellerin) cuts through regulatory red tape by streamlining the approval process for farmworker housing in Santa Clara and Santa Cruz counties, speeding up development to meet the urgent demand for more housing.

See link: https://www.gov.ca.gov/2024/09/24/governor-newsom-signs-new-laws-to-expand-farmworker-housing-and-cut-red-tape/#:~:text=AB%203035%20(Pellerin)%20cuts%20through,urgent%20demand%20for%20more%20housing.

  • Housing can serve agricultural workers and these tenants do not have to be employed on-site. But the tenants must be agricultural workers.

  • The land owners will not get any additional local business taxes or special fees beyond typical agricultural uses

  • Recognized as an agricultural use even in contracts, deeds, and covenants

The intent is clear: the state is actively removing barriers and encouraging development of this type of housing across all jurisdictions. California is still in a housing crisis.

This Property already has the following:

  • Private well + established water
  • PG&E power access
  • Full perimeter fencing
  • $50,000 storage building already in place
  • Flat, usable land — no major grading or site prep required
  • Zoned agricultural

This property supports multiple strategies:

  • Agricultural workforce housing development
  • Build a home + guest house and amenities
  • Vineyards, orchards, equestrian use, or row crops
  • Farm

A + Location That Carries Long-Term Value: With quick access to Highway 101:

  • Minutes to downtown Morgan Hill’s restaurants, wineries, and services
  • Near rail access for regional connectivity
  • Close to San Jose and Silicon Valley

This sale is for the land only.

Reference Appendix

Agricultural Workforce Housing on Agricultural Land (Santa Clara County, CA)

Employee Housing Act | AB 3035 | Section 8 | Morgan Hill & Gilroy

1. Enabling Legislation & Policy Background

AB 3035 – Farmworker Housing (Chaptered 2024)

Expanded the California Employee Housing Act to allow up to 150 multifamily units of agricultural workforce housing on qualifying agricultural land in Santa Clara and Santa Cruz Counties through a streamlined, ministerial approval process.

Bill summary and status (California Digital Democracy):

https://calmatters.digitaldemocracy.org/bills/ca_202320240ab3035

Full bill text (LegiScan):

https://legiscan.com/CA/text/AB3035/id/3012768

Governor Newsom signing announcement (Sept. 24, 2024):

https://www.gov.ca.gov/2024/09/24/governor-newsom-signs-new-laws-to-expand-farmworker-housing-and-cut-red-tape/

Local overview (Morgan Hill / South County focus)

“Farmworker Housing Act Expanded” – Choose Morgan Hill:

https://www.choosemorganhill.com/news/4zbcretmep0ra9j1i57odltb2wm3hn

2. California Employee Housing Act (Permitting Framework)

Overview & regulatory structure

Agricultural workforce housing is treated as an agricultural use, not residential zoning.

Health and safety permitting and oversight are administered by the California Department of Housing and Community Development (HCD).

Key references:

California HCD – Farmworker Housing overview and programs:

https://www.hcd.ca.gov/policy-and-research/intersectional-policy-work/farmworker-housing

County fact sheet explaining Employee Housing Act permits and requirements:

https://humboldtgov.org/DocumentCenter/View/71741/Fact-Sheet---Farmworker-Housing-for-Ag-Employers-PDF

3. Section 8 (Housing Choice Voucher Program)

Program overview

HUD Housing Choice Voucher (Section 8) Program:

https://www.hud.gov/program_offices/public_indian_housing/programs/hcv

Owner participation & approval process (California examples)

Los Angeles County Development Authority – Owner’s Guide:

https://www.lacda.org/docs/librariesprovider25/section-8-program/owners/resources/section-8-landlord-brochure-%287-2021%29.pdf

Housing Authority of the City of Los Angeles (HACLA) – Owner Packet:

https://www.hacla.org/sites/default/files/Section%208/S8%20RFTA%20Packets/RFTA%20HCV/Owner%20Booklet%20-%20HCV%20Finalized%202023-08-29.pdf

Request for Tenancy Approval (RTA / RFTA)

Plain‑language overview of the RFTA process and timing:

https://rentwisela.com/blog/how-to-submit-an-rfta-for-a-section-8-family/

4. Morgan Hill & Gilroy – Cost & Local Project Examples

Recent farmworker housing project (Morgan Hill/Gilroy)

Royal Oak Village – project scope, unit count, and development cost:

https://gilroylife.com/government-farmworker-housing-breaks-ground-a-second-project-is-planned/

Santa Clara County funding and approvals

County of Santa Clara press release on agricultural worker housing approvals:

https://news.santaclaracounty.gov/news-release/county-santa-clara-approves-affordable-housing-project-units-agricultural-workers

Comparable agricultural workforce housing developments

Avila Construction – Agricultural Worker Housing portfolio (South & Central CA):

https://www.avilaconst.com/aghousing

5. Santa Clara County – Local Process & Housing Context

Santa Clara County Consumer & Environmental Protection Agency – Farmworker Housing:

https://cepa.santaclaracounty.gov/farmworker-housing

Background on zoning reform and permitting streamlining (San José Spotlight):

https://sanjosespotlight.com/santa-clara-county-makes-it-easier-to-building-housing-for-agricultural-workers/

Buyer to verify all potential uses with county, city and state and confirm the new state laws regarding workforce housing for farmworkers with a real estate and or land use attorney. Also buyer to verify all information found in the disclosures and the agent's research. Buyer must verify all information.

Investment highlights

  • Agricultural land use with power and well. The buyer can build their home, farm it or build housing for farmworkers under the new workforce housing laws for farmworkers. Buyer is to verify the new state laws.

  • Build a home + ADU
  • Gardens, orchards, or boutique farming
  • Space for horses, vineyards, or recreational amenities
  • Private well installed
  • Power available on site
  • New $50,000 storage shed
  • Flat, usable land ready for development

  • Other: Disclosure URL https://app.disclosures.io/link/10868-Dougherty-Avenue-zjs6gh0c

Listing Contacts

The Grail Group - Legacy Real Estate & Associates
Listed by The Grail Group - Legacy Real Estate & Associates

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Additional Information

Name
Grail Marie Nitsch
License
01304120
Brokerage
Legacy Real Estate & Associates
Brokerage Phone
6507721519
*All information is deemed reliable but not guaranteed. Buyer to verify all information.
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