Bay Area Affordability Buckles Amid Economic Crunch

REDWOOD CITY, CA—During this unprecedented time in history, more Bay Area residents are feeling the economic and housing crunch as the downturn wears on. As homebuyers look for solutions, developers are providing more options, especially for those earning between 30% to 70% of the area median income.

One solution is Fair Oaks Commons, a 100% affordable residential rental community that will provide independent living for low-income families, veterans and formerly homeless households.

“These 67 new affordable units will allow families to create stability during this unprecedented time and beyond,” said Warren Slocum, San Mateo County supervisor. “Partnering with Alta Housing offers San Mateo County families, veterans and those formerly homeless a place to call home.”

Alta Housing’s four-story, 67-unit residential development is located at 2821 El Camino Real in unincorporated San Mateo County’s North Fair Oaks neighborhood.

“We are so grateful that COVID did not slow down the construction of Fair Oaks Commons. Back in March, we did not know the impact COVID-19 would have on this project. Luckily, our development team and general contractor were able to quickly put safety procedures in place to keep our schedule. We want to thank the San Mateo County building department for quickly implementing new inspection processes to help us keep building the project. Affordable housing has long been a critical need in the Bay Area, especially now during such difficult and challenging times,” Randy Tsuda, Alta Housing’s president and chief executive officer, tells GlobeSt.com. “Our new residents can celebrate the holidays in the safety and stability of their new homes.”

Financing for the approximately $42 million development was provided by San Mateo County 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. The project is also supported by 27 HUD-VASH vouchers and 32 Section 8 vouchers awarded by the San Mateo County Housing Authority.

Wells Fargo Bank provided the financing for construction. Wells Fargo Affordable Housing and Community Development is the tax credit investor.

“Wells Fargo is committed to providing much-needed financing to develop affordable housing throughout the Bay Area and nationwide,” said Eric Leimbach, vice president, senior relationship manager, community lending and investment, Wells Fargo Bank. “Housing costs have risen significantly in San Mateo County, impacting numerous communities and their individual residents. By working with Alta Housing to develop Fair Oaks Commons, some of the most vulnerable community members including veterans and formerly homeless individuals will have a safe and affordable home.”

The project’s designer is Dahlin Group, the general contractor is L&D Construction, LUK and Associates is the civil engineer, Emerald City Engineers is the mechanical electrical and plumbing engineer, and the Guzzardo Partnership is the landscape architect.

Alta Housing partnered with the Menlo Park Veterans Affairs office, County of San Mateo Behavioral Health & Recovery Services and the Mental Health Association of San Mateo County to provide supportive services to the residents. John Stewart Company will provide on-site management and the services agencies will provide resident engagement, assistance with accessing community resources, job readiness programs, financial planning courses, counseling services and case management services.

On-site parking accessible via El Camino Real provides parking for 51 cars including three handicap-accessible spaces. To encourage the use of sustainable means of transportation, enclosed bicycle parking and a bicycle repair station are provided for residents. In addition to the 45 resident bicycle parking spaces, four bicycle outdoor parking spaces will be provided for guests.

Sustainable design is another key benefit. Targeting LEED Gold certification, the building design features and technologies include the use of solar panels for hot water preheating and common area lighting. The residential community includes energy-efficient appliances, recycled materials with low VOC content, drought-tolerant landscaping, and metal sunshades and awnings to reduce heat gain.

“Fair Oaks Commons is the first of what we hope will be many more affordable housing projects in San Mateo County,” Tsuda tells GlobeSt.com.

Tsuda also reports that Alta Housing has broken ground on Wilton Court, a new 100% affordable residential community at 3705 El Camino Real in Palo Alto. The new 59-unit residential development will provide independent living for a mix of single- and two-person households earning between 30% to 60% of the area median income, and 21 of the units are reserved for adults with developmental disabilities.

“The assumption is that mortgage rates will stay low for the foreseeable future,” according to Ali Wolf, chief economist at Meyers Research. “That helps, but doesn’t eliminate the risk that the housing market could still face an affordability crunch if home prices continue to rise at the rapid pace.”