Re-zoning Meetings Act as Planning Springboard

REDWOOD CITY, CA—With affordable housing at an ever-increasing level, one affordable residential rental community, 2821 ECR Apartments, hopes to stem the tide ever so slightly. The multifamily community is being developed by Palo Alto Housing. Plans call for 67 studio and one-bedroom apartments serving low-income families, veterans and individuals with special needs earning up to 70% of the San Mateo County area median income.

Centrally located in the Fair Oaks neighborhood at 2821 El Camino Real between Berkshire and Dumbarton avenues, 2821 ECR Apartments is within walking distance of grocery, pharmacy, restaurants and public transit. On-site parking includes 50 spaces with guest parking, two accessible spaces and three electric vehicle charging stations. In addition to the 45 resident bicycle parking spaces, four bicycle outdoor parking spaces will be provided for guests. The new development will target LEED Gold certification.

In this exclusive, Randy Tsuda, Palo Alto Housing’s president and chief executive officer, recently discussed the background and vision of the project, special needs amenities, other planned projects and challenges of affordable housing development.

GlobeSt.com: What was the impetus for developing 2821 ECR Apartments and why is this a good location? 

Tsuda: Palo Alto Housing recognizes that affordable housing is a need throughout all of Silicon Valley and we are always looking for sites that could be used to meet this demand. We were originally approached by another developer for a potential partnership where we would develop the affordable portion and they would develop the market-rate portion. In researching the community and meeting with local leaders to discuss the needs of the neighborhood, we realized that this site would be perfect for a 100% affordable community and so we offered to buy the entire site that is close to transit, groceries and community resources.

GlobeSt.com: What was your vision for this community and how has it come to reality?

Tsuda: The timing of the project was quite fortuitous. When 2821 ECR was first brought to our attention, the county of San Mateo was in the midst of a series of re-zonings for North Fair Oaks area as part of their community plan. When we began our community meetings, we were able to build off of many meetings the county hosted with the North Fair Oaks community in the community plan process.  We held our community meetings in both English and Spanish, so we could hear from more of our neighbors. Dahlin Group, our architect, attended each one of our community meetings and worked closely with the county to address the input of the neighborhood.

GlobeSt.com: Who are the special needs target users, and what kinds of amenities and services will be on site to serve them? 

Tsuda: We have 27 units, 40%, set aside for veterans, including some with disabilities. We will have an additional six units, 9%, set aside for formerly homeless individuals who are enrolled in ongoing support services with the county of San Mateo. To support our residents, we ensure that there is elevator access to every floor, all units are either ADA or ADA-adaptable and lots of community space for engaging programs. Resident services will be provided on-site to all of our residents, regardless of their special needs status. We are partnering with the Mental Health Association of San Mateo County and veterans will be further supported by a dedicated staff member from the Veterans Administration. Other special needs individuals will receive additional support from San Mateo County’s behavioral health and recovery services division.

GlobeSt.com: The demand for affordable housing for low-income families, veterans and people with special needs is tremendous. What other projects does Palo Alto Housing have planned, with what offerings and where?

Tsuda: In addition to 2821 El Camino Real, Palo Alto Housing has five additional projects in the development pipeline in Mountain View and Palo Alto. These projects will serve a range of residents, including veterans and adults with developmental disabilities. Eagle Park Apartments, a 67-unit affordable apartment community in Mountain View, will house low-income veterans and households earning up to 60% of the Santa Clara County area median income and is expected to be completed this summer.

GlobeSt.com: What are the biggest concerns today for affordable housing developers in the Bay Area?

Tsuda: Costs. We are oftentimes competing with market-rate developers for the same piece of land and increasing construction costs are continuing to raise the cost to develop housing.

2821 ECR Apartments was designed by the architecture firm Dahlin Group Inc. L&D Construction is the general contractor. Financing for the approximately $42 million development was provided by the county of San Mateo through voter-approved Measure K, Wells Fargo Bank NA, Federal Home Loan Bank of San Francisco and California Community Reinvestment Corporation. Acquisition funding was provided by Housing Endowment and Regional Trust of San Mateo County.