A fire broke out in a Watsonville neighborhood near downtown just before 6:30 p.m. Tuesday, prompting evacuations as two homes were engulfed in flames, authorities reported. The fire has left 17 people homeless but no one was hurt.

The blaze at 140 and 142 Grant St. was under control at 7:45 p.m., according to Watsonville police, but people were urged to avoid the area overnight.

The fire started in a shed behind one of the homes. It sparked from a plugged-in extension cord, ignited the household goods stored in the outbuilding, according to Watsonville Fire Division Chief Rob Ryan.

The "typical garden building" was about 3 feet from one of the houses. Flames spread to a tree, then a fence between the two affected properties and to the houses, Ryan said. 

It caused about $100,000 damage, he said.

The neighborhood—a densly populated area comprised of smaller, older homes—is near the police station and the high school. The homes damaged by Tuesday's fire were rentals.

Eight adults and nine children were living in the two units. The local chapter of the American Red Cross is helping them with housing, as well as care and comfort kits, according to Red Cross spokeswoman Sharon Tong.

"There was some property damage but there was no injuries," Ryan said. "That was the big thing. You hate to lose the property but no lives were lost."

Eight fire engines, two fire trucks and two water tenders fought the fire. Aptos/La Selva Fire, the Pajaro Valley Fire Distirct, North County Fire and CalFire crews from Pajaro Dunes and Corralitos helped Watsonville Fire with the incident, Ryan reported.

"They made a good stop, a good quick stop," Ryan said.

The Watsonville Police Department used the Nixle alert system to notify residents of the emergency. The system sends texts and emails to registered users and is free. Learn more at www.watsonvillepd.com.

To help the families affected by this fire and other local emergencies, please call  831-462-2881 or visit www.sccredcross.org.