A plot of land at the end of Gonda Street was the proposed site of a housing complex for seasonal farmworkers. Next to the site is a recently completed project with housing for 360 seasonal farmworkers. (Fidel M. Soto — Noticias Watsonville file)

PAJARO >> A controversial housing proposal with space for up to 250 seasonal farmworkers in Pajaro has stalled more than a year after it was narrowly approved by the Monterey County Board of Supervisors. 

The project at 124 Gonda St. would have included 35 units across two three-story buildings on a 1.3-acre property. 

“I would love to build the project, but it seems that the demand [for H-2A workers] has dropped,” said developer Anthony Nicola in an interview. H-2A visas bring tens of thousands of people, mostly from Mexico, to work seasonally on farms in California. “The game plan was initially with the H-2A use, that it would get fully funded 100% by private industry because it was so high in demand.”

Nicola, a Salinas resident and general contractor who has built smaller projects in Monterey and Santa Cruz counties, said he is not able to build the project without funding from a company that would house its workers there. He listed the property for sale for $1.6 million, and said if no one buys it he may develop it into market-rate single-family homes instead.

The Gonda Street project faced an uphill battle for approval, with some neighbors against it because it would bring increased traffic to Gonda Street, a quiet cul-de-sac. Some Pajaro residents opposed the project because it would exclude locals.

Others argued that building new housing for H-2A temporary workers would ease the pressure on the market, because otherwise companies rent homes or buy out motels to house the workers. Companies are required to provide housing for H-2A workers.

Monterey County supervisors approved the project in late 2024 in a 3-2 vote after a tie vote from the planning commission. A neighboring project with 360 beds for seasonal farmworkers on Susan Street finished construction shortly after. 

Supervisor Glenn Church, who represents Pajaro, voted against the project because of its potential impacts to Gonda Street residents.

“If this project on Gonda Street is not going through, then maybe we can have some project there that will actually serve the community itself year round,” Church said. “Hopefully that’s what comes out of this.”

Nidia Soto, an organizer with Building Healthy Communities Monterey County, said she supports the project.

“This project should go ahead for the benefit of everyone, and especially so that the employees have decent housing,” she said in Spanish. 

Soto said there has historically been a huge H-2A workforce in Monterey County, but recent pay cuts issued by the Department of Labor could soften demand.

“For a guest worker, it’s going to mean coming in and earning six dollars less and doing the same work and being exploited by this capitalist economy,” Soto said. 

The new rates could see H-2A workers in California paid $13.45 an hour this year, down from $20 an hour in 2025. The changes may increase demand for these workers on the part of agricultural companies, but reduce interest from Mexican nationals to work for the lower rates.

While President Donald Trump’s campaign promise to deport millions of unauthorized immigrants could have spelled a spike in demand for a legal agricultural workforce, the president has largely left the agricultural industry alone after outcry following raids on California farms last year. 

Questions or comments? Email [email protected]. Santa Cruz Local is supported by members, major donors, sponsors and grants for the general support of our newsroom. Our news judgments are made independently and not on the basis of donor support. Learn more about Santa Cruz Local and how we are funded.