A change in ownership of the 60-unit affordable housing development off South Delaware Street in San Mateo may soon lower the income thresholds for prospective applicants, boosting housing supply for those making well below the area’s median income.
Currently, the site offers two-bedroom, below-market-rate units for those making no more than 120% of AMI. As of 2024, area median income is about $130,000 for a one-person household and almost $187,000 for a four-person household.
While it sits on city-owned land, Westlake Realty Group currently owns the development, but it plans to sell and subsequently transfer the ground lease to MidPen Housing, a nonprofit developer that has worked on several projects throughout the county — including another 60-unit affordable housing development adjacent to 2000 S. Delaware St., which is for households making 30%-50% AMI. With the income limit change at South Delaware Street, proposed rents would hover around $2,700 for a two-bedroom apartment, which amounts to about $900 less than the average rent for two-bedroom housing in San Mateo, according to Zillow.
Felix AuYeung, vice president of Business Development at MidPen Housing, also assured the council that current tenants could stay put.
“We’re not going to displace anyone, so every tenant that is there already is welcome to stay. It’s on turnover that the new income restrictions would apply,” AuYeung said.
The city not only had to sign off on the transfer, but MidPen also asked for a half-million dollar loan to facilitate the transaction, which is proposed to have a nearly 60-year repayment period. Councilmembers unanimously supported the proposal.
“I’m thrilled to see this come forward. I think it’s a win all the way around,” Councilmember Amourence Lee said. “Residents in our community get to stay in our community with zero displacement, we get deeper affordability levels — which is what we desperately need in the city — and I think that retaining the land underneath is paramount in terms of our long-term strategy as a city to hold our assets.”
The newly-revised qualifications would go toward the city’s state-mandated housing goals, or Regional Housing Needs Allocation, for its low-income units. Based on the most recent cycle, the city must plan for 2,800 low-income units — defined as households making anywhere from 0-80% of AMI — by 2031. That comprises about 40% of its total housing goal allocation.
City staff and MidPen said they hope to finalize the transaction by October or November.
(650) 344-5200 ext. 102
Daily Journal staff
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