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$175 million Orange County project will turn former air station land into 338 affordable apartments

A one-bedroom unit will start at $1,014 a month, and a three-bedroom will top out around $2,856.

Apartments under construction.

Photo Credit: iStock

A major affordable housing project has broken ground in Orange County.

Construction has begun on Terracina at Tustin Legacy, a $175 million, 338-unit apartment community at the site of a former Marine air station.

The development brings together goals many California cities are struggling to achieve at once: more housing, lower rents for qualifying residents, and a new use for land that has already been developed.

What's happening?

According to the Orange County Register, USA Properties Fund and Irvine Company held the groundbreaking on August 6. The project will include two buildings, at 2265 Airship Avenue and 16055 Compass Avenue, on the 1,600-acre master-planned site that also includes a historic blimp hangar, existing homes, a school, and retail centers.

In an area where high land costs and lengthy approval timelines can slow new construction, a development with below-market-rate apartments adds to the local housing supply.

The project also reflects a broader push across California to turn former military, industrial, and other already-built sites into housing rather than developing farther outward. That can make it easier to add homes near existing roads, schools, jobs, and public services.

Why does it matter?

Housing affordability remains one of the biggest challenges facing California families. When too few homes are available at prices working people can realistically afford, the effects can spread quickly, from longer commutes and overcrowded living conditions to financial strain that leaves less money for groceries, health care, and savings.

Apartments will go to households earning 30% to 60% of the area's median income, or about $55,830 to more than $111,600 for a four-person household, according to USA Properties. A one-bedroom unit will start at $1,014 a month, and a three-bedroom will top out around $2,856, though those numbers could tick up slightly by the time leasing opens in 2028.

In expensive markets, affordable apartments can help preserve options for seniors, workers, and families trying to remain near their communities.

Building on previously developed land can be less disruptive than converting open land into housing. Reusing property within an existing urban area can support smarter growth and reduce pressure for more distant development, which often means more driving and higher infrastructure costs.

What's being done?

The project has advanced from proposal to active construction, an important milestone for an affordable housing effort of this size.

Move-ins should start in late 2028, with the full complex wrapping up the following year.

Planned amenities include a clubhouse, a pool, and covered parking, and residents can join an interest list at usamfm.com to track when applications open.

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