The goal behind the decision is to once again entice developers' interest in San Benito County - which has suffered once of the most drastic, per-capita foreclosure rates in California

The 32-unit affordable housing project involving five buildings
at Palm Court is now under construction
The 32-unit affordable housing project involving five buildings at Palm Court is now under construction.

Crews broke ground on the project from South County Housing on the city’s west side, following the demolition of several structures on the site.

The city’s redevelopment agency is contributing $3.6 million of the estimated $6 million cost. The builder expects construction to last around eight months, depending on cooperation from the weather, said Bill Avera, head of development services for Hollister.

On top of the RDA funding, South County also received a federal home fund and tax credits, said David Huboi, the project’s architect.

The housing for low-income and senior residents is in close proximity to a health clinic, restaurants and shopping. The project partners, meanwhile, lowered the initial cost of about $8 million by changing some materials and making other alterations, such as lowering the ceilings in hallways, Huboi said.

“We’re just excited to get it going,” Huboi said.

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A staff member wrote, edited or posted this article, which may include information provided by one or more third parties.

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