WATSONVILLE — The Watsonville City Council agreed to transfer ownership of a property to a nonprofit developer Tuesday, with the plan to build about seven housing units over the next 10 years.

The council voted unanimously to transfer ownership of 36 Airport Road to Habitat for Humanity Monterey Bay for $1. Per the agreement, Habitat for Humanity must begin construction of at least one unit within five years, and complete the entire project within 10 years.

Jan Davison, the former director of Watsonville’s Redevelopment and Housing Department who is serving as a consultant on the project, said the less-than-an-acre plot of land has proven difficult to develop, as the site also requires the adjacent Evans Court to be fully developed as a public street.

The property was purchased in 2003 by Watsonville’s former redevelopment agency for $850,000, with the intent to expand the Youthbuild program. The program has since ended, and the city attempted to sell the lot to a private developer and a shelter, but negotiations failed, according to Davison.

The $1 value of the property is the fair reuse value, given its constraints and affordability requirements, she said.

“The land is our contribution to the project,” Davison said. “That’s our only contribution. They are not asking for a financial contribution or any other assistance.”

Habitat for Humanity Monterey Bay builds and sells homes to low income families. Among the requirements for purchasing a home, the homeowners must put in 500 hours of what is called “sweat equity,” helping with the construction of the home.

Executive Director David Foster said the organization has built 51 homes across the Monterey Bay since it was founded 29 years ago. Of those, only five were sold back to Habitat for Humanity, and none were foreclosed, according to Foster.

“They participate in the building process,” he said. “They’re really invested in their homes and in their communities. These homes are providing incredible stability to the participating families.”

Foster added that Habitat for Humanity previously built homes in Watsonville in the 1990s, and is currently in the midst of another project in Live Oak.

Now, the organization will seek state and federal funding to construct the project.

Marty Cavanaugh, president of Habitat for Humanity’s board of directors, said the organization will be looking to the community to help make the project a reality.

“We need donors, we need fundraisers,” he said. “We want to take this on because we believe that this is the right thing to do for the people who live here and want to stay here.”

Councilwoman Trina Coffman-Gomez praised the efforts of Habitat for Humanity, and said the homeowners will have a “pride of ownership” in the neighborhood because they helped build it themselves.

“You are building a neighborhood from scratch, and those neighbors will stick together for decades to come,” she said.

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