It's a Go

This artist's rendering of the planned 6-story, 70-unit affordable housing project is from Pyatok Architects.

Financing is a "Done Deal"

Federal tax credits have been awarded and construction is expected to start in September on an affordable housing project planned for the northwest corner of Richmond Street and Central Avenue, city and BART officials said.

Federal tax credits were the final source of funding needed to complete financing of the project that will provide apartments for 70 families.

“This is a done deal now,” said City Council member Lisa Motoyama. “They got this award on April 8th and they have 180 days from this date to start construction.”

September Groundbreaking Planned

Marcus Martinez, project manager for developer Related California, confirmed in an email that the company expects to break ground in September and complete the affordable housing project within 24 months.

It is one of six apartment buildings planned for parking lots at El Cerrito Plaza BART.

Construction of the 6-story building at a busy intersection may be less disruptive than people might expect, Motoyama said.

The affordable housing building will occupy only one-half of the one-acre parking lot, Motoyama said, making it possible for construction to be staged from the other half of the lot. A market rate building has been approved for the other half-acre. No construction date for the market rate building has been announced.

An affordable housing project and a market rate building are approved for this one-acre parking lot.

Project Details

The building at 515 Richmond St. will consist of 1-, 2-, and 3-bedroom apartments for low, very low, and extremely low-income family households. The 70-unit project will have 29 parking spaces, including one for a shared car, and a secure bike storage room with space for 106 bikes. It will be a 6-story building with an interior courtyard.

Income limits in 2024 for a family of four to qualify for affordable housing were $120,800 for low income, $77,850 for very low, and $46,700 for extremely low, according to a chart posted by the state Department of Housing and Community Development.

Council member Motoyama, who is in her fifth year on the council, was advised by City Attorney Sky Woodruff to recuse herself when the project was approved because her former employer had been a partner of Satellite Affordable Housing Associates (SAHA), which in turn is a partner in 515 Richmond Street.

Despite not being able to vote to approve it, Motoyama has followed the development’s progress closely.

Funding Details

The 515 Richmond St. project was approved by the City Council in April 2023, before the rest of the 743-unit Transit Oriented Development (which was approved later). This allowed the city to apply earlier for state grant funding, Motoyama said.

“For affordable housing, you have to assemble little bits of funding over time,” Motoyama said.

Community Development Director Melanie Mintz said the total cost of the first phase of the Transit Oriented Development is $69 million.

City Gave $970,000

The city of El Cerrito contributed $970,000, including $350,000 from the city’s Affordable Housing Trust fund balance, and $620,000 that was awarded to the city from the State’s Prohousing Incentive Program (PIP).

Other funding included $5.38 million from Contra Costa County and $2.4 million from the Metropolitan Transportation Commission’s Bay Area Housing Finance Authority.

The big funders are the State of California’s Affordable Housing and Sustainable Communities (AHSC) program at more than $30 million and now the federal Low Income Housing Tax Credit program.

Council member Motoyama said the federal tax credit program dates back to 1986. It provides a structure for public-private partnerships and has enjoyed bipartisan support. California receives an allocation of federal tax credits which are awarded by the California Debt Limit Allocation Committee (CDLAC).

On April 8, the California committee allocated $35.7 million in bonds to Satellite Housing, the non-profit partner with for-profit Related California in 515 Richmond St. Ultimately the bonds will be sold to an investor. The bonds are usually issued near the construction date when the developer is “shovel ready,” Motoyama said.

The federal tax credits reserved for the project add up to $2,591,649 per year for 10 years, according to a final list of CDLAC awards.

Motoyama is an Advocate

Motoyama, a passionate advocate of affordable housing, said she’s very excited about the project coming to El Cerrito.

“Sure, there will be a big building on that corner that wasn’t there before,” Motoyama said. “It’s a boon to the city because we put in $690,000 and we’re bringing millions of dollars in grants. That’s construction jobs, new residents, and new infrastructure. With these apartments, we’re helping people to have sufficient income to put into our economy. Demand will come in for different kinds of things because we’ll have families there,” she said.

Revenue for the City

Community Development Director Mintz said the estimated cost for the developer to pull all necessary permits for 515 Richmond St. is about $1 million. The total cost is based on the valuation by square footage in the city’s master fee schedule. It includes all city costs to inspect the project, including allowable direct and indirect costs, and overhead.

Mintz said it’s unlikely the city will need to hire extra staff.

“Fortunately, just as the affordable housing project at Mayfair is being completed, this one will be getting underway, so existing staff will be able to move from one project to the next,” she said.

Affordable housing is exempt from property tax. However, the project will pay other city assessments, including Measure J, Measure H and Landscape and Lighting, Mintz said.