The project was mandated in the settlement of a lawsuit by affordable housing activist groups after the city demolished 590 former Navy apartments at East Housing. The project developer, Resources for Community Development, plans to build 52 two- and three-bedroom units at the site, which is located at the former Navy base at Alameda Point.

According to city officials, the City Council will decide this week whether it will approve a zero-interest loan for $400,000 to the developer, Resources for Community Development, for preliminary design. In addition, the Housing Commission is expected to accept a three-acre parcel from the city and authorize a lease to the developer. The Alameda Housing Authority will own the land and lease it to the developer for 75 years. The project's 52 units will be rented at affordable rates for the length of the lease.