Affordable housing at Bay Meadows OK’d

The homes will be offered to those making some of the lowest incomes in the area, with a dozen of the units are set aside for veterans and another four for families facing homelessness, said Smitha Seshadri, senior vice president of development with Bridge.

“This is a tremendous partnership and we really couldn’t do it without government entities and local jurisdictions prioritizing affordable housing,” Seshadri said. “We’re in the business of building affordable housing and keeping it affordable. So it’s really helpful when cities actually identify sites and issue requests for proposals and provide the type of support with financing, and approvals, and entitlements, and permits.”

Plans to build an affordable housing complex at Bay Meadows have been more than a decade in the making. San Mateo officials negotiated with the developer to carve out a 1-acre parcel for city ownership. On Tuesday, the City Council signed off on planning and environmental documents that will pave the way for Bridge to break ground.

“It’s very gratifying,” said Mayor Rick Bonilla, who has been involved with planning Bay Meadows since he served on a citizens advisory committee in 2001. “It was a big step forward to be able to have an all-affordable housing building there. It makes the project more complete.”

The affordable housing development has long been viewed as a critical component of the city’s overall vision for the site that will eventually host more than 1,150 housing units, 780,000 square feet of office space, 93,000 square feet of retail, as well as 18 acres of park and open space. The new community is roughly bordered by Hillsdale Boulevard to the south, Highway 101 to the east, the county event center to the north and the Caltrain tracks to the west.

The rail line is a critical component with Caltrain slated to electrify to increase capacity, and construction underway on a grade-separation project that will lift the tracks at 25th, 28th and 31st avenues while a new Hillsdale Station is relocated to the north.

The city chose Bridge to develop 68 units of affordable housing atop the vacant 1-acre parcel at the corner of Delaware Street and 28th Avenue. When factored in to the number of other below-market rate units spread throughout the various housing developments, Bay Meadows will ultimately have about 16 percent of the homes set aside as affordable.

San Mateo was able to secure the land as part of its approval for the redevelopment, and is now offering it to Bridge under a long-term land lease for just $1 a year. Like most affordable housing projects, Bridge cobbled together a mix of funding from a variety of sources including $7 million in countywide Measure A sales tax funds, federal tax credits and a $2 million loan from the city.

Bridge expects to apply for federal support in the middle of the year, with the goal being to start 18 months of construction at the end of 2018 or early 2019, Seshadri said. When complete, those living at the development will be making 60 percent or less of the area median income, with the vast majority earning below 50 percent, she said.

Councilwoman Maureen Freschet said the joint effort to build an entirely affordable housing development is extremely valuable at a time when people are severely affected by escalating costs.

“It is very exciting to see the Bridge project come to fruition after so many years of planning. We all recognize the desperate need for additional and affordable housing on the Peninsula and I am proud that San Mateo is doing its share. This project was a collaborative effort and is a perfect example of what can be accomplished when multiple agencies work together to achieve a common goal,” Freschet said in an email.

With the Delaware Street corridor ground zero for much of the development in the city, Freschet said she’s pleased many in the surrounding neighborhoods have been supportive of efforts to help those who are severely impacted by escalating housing costs.

While it’s been reassuring to see voters and local governments prioritize affordable housing in recent years, steep hurdles remain. With cranes marking the skyline as development booms across the Bay Area, construction costs are on the rise, Seshadri said. Though many have touted the need for more housing of all types, affordable housing developers are having to compete with for-profit builders for materials and labor. That means building units for those on the extremely low-income spectrum requires further subsidies, she said.

The scale of the challenge is undoubtedly great and San Mateo is not alone in feeling the effects of development as residents often tie their opposition to the impacts on traffic, parking and schools.

Still, Bonilla emphasized government can play a critical role promoting transit-oriented developments and offering places for low-income earners to call home.   

“The reason this is important is because without us putting forth the land and the money we put in from our affordable housing fund, it probably wouldn’t have happened, because land is so expensive that nonprofit entities couldn’t build,” Bonilla said, adding that encouraging housing on a variety of affordability levels is “one of the most important things that any jurisdiction can do for its people.”

Visit bridgehousing.com or cityofsanmateo.org for more information. 

samantha@smdailyjournal.com

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