Mutual Housing California Sets First Factory-Built Homes at Fairview Terrace, Launching Six-Project Affordable Housing Pipeline

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Mutual Housing California Sets First Factory-Built Homes at Fairview Terrace, Launching Six-Project Affordable Housing Pipeline

76-home Stockton senior community marks Mutual Housing’s expansion into San Joaquin County and serves as catalyst for 660 additional affordable homes planned through factory-built construction

Sacramento, CA — Mutual Housing California joined the City of Stockton, Stocktonians Taking Action to Neutralize Drugs (STAND), the California Energy Commission, Health Net and housing, finance and construction partners today to celebrate the first factory-built homes being set into place at Fairview Terrace, a new 76-home affordable housing community for adults age 55 and older in South Stockton.

The milestone represents more than progress on a single development. Fairview Terrace is Mutual Housing California’s first community in San Joaquin County and the catalyst for an ambitious six-project factory-built housing pipeline expected to deliver approximately 660 additional affordable homes across Northern California over the next three to four years.

Using factory-built construction, apartment modules are built off-site while site and foundation work move forward simultaneously, then transported to the development and set into place by crane. Mutual Housing is applying a coordinated developer, architect, manufacturer and general contractor model across its pipeline to capture lessons, efficiencies and purchasing power from one project to the next.

“Today we’re not simply setting the first homes at Fairview Terrace—we’re setting in motion what we believe can become a game-changing way to deliver affordable housing at scale in California,” said Craig Adelman, CEO of Mutual Housing California. “Fairview Terrace brings together factory-built construction, clean-energy innovation and deeply rooted community partnerships in one project. Stockton gave an experienced nonprofit developer like Mutual Housing the opportunity to partner with STAND and turn a community-identified need into 76 affordable homes for seniors. Now, the lessons we learn here can carry forward across six projects and approximately 660 additional affordable homes over the next several years. We’re grateful Stockton is where that journey begins.”

Innovation Built for Stockton

Located at 2222 S. Airport Way, Fairview Terrace will provide 76 permanently affordable studio and one-bedroom homes serving income-qualified adults age 55 and older.

The four-story, all-electric development is designed to achieve net-positive energy performance, producing more energy over the course of a year than it consumes. Support from the California Energy Commission’s Electric Program Investment Charge (EPIC) program is helping incorporate advanced clean-energy technology, including a community microgrid.

Commissioner Andrew McAllister, of the California Energy Commission said, “Fairview Terrace is just the sort of housing California needs to thrive now and far into the future: affordable, all-electric and climate resilient. Kudos to Mutual Housing and its stellar project partners for creating innovative factory-built homes that are attainable, beautiful and high-performing!”

Fairview Terrace grew from community-driven planning led by STAND, whose engagement with South Stockton residents identified affordable senior housing as a neighborhood priority.

"After 18 years of work, sweat, anxious moments, and significant early investment by our community-based nonprofit, we can now quickly see the results,” said STAND Administrator Fred Sheil. “Thanks to our nonprofit board of 100 percent senior neighborhood-residing women who made this all possible."

The City of Stockton helped transform that community vision into an achievable development through the contribution of nearly $9 million in HOME and Permanent Local Housing Allocation funding.

Public-Private Partnership Accelerates a New Housing Model

Fairview Terrace demonstrates how public investment can be leveraged alongside private and philanthropic capital to move affordable housing innovation from concept to construction.

Health Net provided a $3 million investment supporting Fairview Terrace and its goal of providing stable, affordable housing for older adults.

“A safe, affordable place to call home can make a meaningful difference in a person’s health and well-being, especially for older adults living on fixed incomes,” said Amber Kemp, Vice President, Medi-Cal Strategy, Execution, and Engagement at Health Net. “Fairview Terrace represents more than housing. It offers Stockton seniors the stability, dignity and sense of community that help people stay healthy and connected. We’re proud to partner with Mutual Housing California to create a welcoming place where residents can build relationships, access support and thrive for years to come.”

The Housing Accelerator Fund provided $2.5 million in predevelopment financing through its Industrialized Construction Catalyst Fund, helping Mutual Housing advance the factory-built model before traditional project financing was fully in place.

"We're excited to join Mutual Housing, the Fairview Terrace team, and the broader community to celebrate this milestone as the first homes are set into place," said Vanessa Diffenbaugh, VP of Lending at the Housing Accelerator Fund. "We created our Industrialized Construction Catalyst Fund because we believe factory-built construction can help solve California's affordability crisis. Fairview Terrace is an important proof point, and is just the beginning. This project shows what's possible when we invest in innovative approaches that can deliver more affordable homes, faster and at greater scale."

Walker & Dunlop Affordable Housing Equity is supporting the project as its Tax Credit Investor.

“Fairview Terrace demonstrates what can be achieved when innovative construction and strong public-private partnerships come together to address the need for affordable housing,” said Aaron Krasnow, managing director of Walker & Dunlop Affordable Housing Equity. “We are proud to support Mutual Housing California as the tax credit investor on this development, helping deliver 76 high-quality, energy-efficient homes for seniors in Stockton. We’re especially excited to be part of a project that can serve as a model for bringing more affordable housing to communities across California with greater speed and efficiency.”

First Citizens Bank is supporting with construction financing the Fairview Terrace housing community.

“First Citizens Bank is proud to invest in our communities and support Mutual Housing California and this milestone at Fairview Terrace,” said Fiona Hsu, Head of Community Development Finance for First Citizens. “Today’s home setting demonstrates how innovation and collaboration can help expand affordable housing opportunities and create greater stability for Stockton seniors, and we’re thrilled to be part of it.”

Together, these partnerships helped move Fairview Terrace from a community vision to the first project in a repeatable factory-built housing strategy.

From One Stockton Project to 660 More Affordable Homes

Fairview Terrace is the first project in Mutual Housing California’s six-project factory-built housing pipeline, an initiative expected to deliver approximately 660 additional affordable homes over the next three to four years. By working with a consistent team and applying lessons from one development to the next, Mutual Housing aims to reduce constructiontimelines by 40% and costs by 10% while creating a repeatable model for delivering high-quality, sustainable affordable housing.

That effort recently received another significant vote of confidence from the State of California. In August, the California Strategic Growth Council awarded Mutual Housing $2.8 million through its Factory-Built Housing Regional Pilot Program to advance Built Different: A Blueprint for Factory-Built Housing in the Greater Sacramento Valley. The initiative will help translate lessons from Mutual Housing’s active factory-built developments into resources that can benefit affordable housing developers and communities throughout the region.

The grant enables Mutual Housing and its partners to go beyond individual construction projects by conducting research, stakeholder engagement and regional capacity building that developers typically lack the resources or incentive to undertake on their own. The work will produce publicly available resources including standardized factory-built housing plans, permitting roadmaps, a zero-net-energy design toolkit, guidance spanning financing and property operations, and additional innovative design methods.

Beyond accelerating the construction of zero-net-energy affordable housing, Built Different is intended to demonstrate how this approach can deliver broader benefits for low-income communities by reducing greenhouse gas emissions and utility costs while advancing community resilience, public health and social equity.

Those lessons will be put into practice across Mutual Housing’s own pipeline. The six-project factory-built initiative brings together partners including Guerdon, Brown Construction, Inc., Arch Nexus and AO Architects, along with other design, construction, financing and public-sector partners.

Fairview Terrace is anticipated to be completed in summer 2027.

“Fairview Terrace is our first community in San Joaquin County, but we hope it is only the beginning,” Adelman added. “Stockton and the greater San Joaquin region are confronting housing challenges that demand experienced partners and new approaches. Mutual Housing looks forward to continuing to be a resource and exploring where we can build on the relationships that made this community possible.”

“The real opportunity here comes from the entire team embracing the process and looking for efficiencies together,” said Tommy Rakes, CEO of Guerdon. “When we all work collaboratively, we identify improvements on one project, carry those lessons into the next and continue refining the process. Repeating that over a pipeline of projects is where we can really drive efficiencies, reduce costs and ultimately help make affordable housing more affordable.”

“Fairview Terrace presented a unique challenge in merging modular and site-built construction under one roof,” shared Brown Construction Inc. Project Executive, Daniel Bargmann. “From preconstruction through the first day of setting modules, our team worked closely with Mutual Housing, Guerdon, Accuset, Arch Nexus and the entire design team to navigate the many nuances of this innovative approach while identifying opportunities to improve efficiency and compress costs. That collaboration is already delivering results. On our first day of setting modular units, we exceeded our projected installation count by 30 percent, setting 10 apartments in a single day—a major milestone and a testament to the coordination and preparation of the entire project team. The lessons we are learning at Fairview Terrace will help inform and improve the delivery of the five communities that follow.”

“Good design should make sustainability tangible in people’s daily lives. At Fairview Terrace, the all-electric, net-positive approach is intended to lower energy costs and strengthen resilience, while community-informed spaces create opportunities for connection, access and belonging,” explained Arch Nexus Project Architect Megan Repka This project shows how climate-responsive design can support both the individual dignity of residents and the long-term health of the surrounding neighborhood.”

About Fairview Terrace

Fairview Terrace is a four-story, factory-built affordable housing community under development by Mutual Housing California at 2222 S. Airport Way in Stockton. The community will provide 76 affordable homes for adults age 55 and older, serving households earning approximately 30% to 60% of area median income. The all-electric development incorporates net-positive energy design, clean-energy technology, resident community space, and onsite services and community-serving space.

About Mutual Housing California

Mutual Housing California is a nonprofit affordable housing developer, property manager and resident services provider creating permanently affordable communities across Northern California. Building on nearly 40 years of implementing this integrated approach in the Sacramento and Yolo County region, Mutual Housing is expanding its reach in partnership with Yuba County; the cities of Vacaville, Elk Grove and Stockton; and the City and County of Sacramento. Through these partnerships, Mutual Housing is bringing its housing and community development approach—which has earned international recognition—and innovative approaches to sustainable construction to more communities across the region.

For more information, visit mutualhousing.com.

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Media Contacts:
Steven Root

Director of Communications

Mutual Housing California

[email protected]

916-202-6056