Council approves SAHA Thornton Avenue plan to provide on‑site affordable units instead of impact fee

The Newark City Council on April 10 adopted a resolution allowing the Thornton Avenue Apartments project, proposed by Satellite Affordable Housing Associates (SAHA), to meet the city's affordable‑housing requirement by providing 58 on‑site low‑income units instead of paying the city’s affordable housing impact fee for the 59‑unit development.

City staff told the council the project is entirely affordable and will contain apartments restricted to very low, low and extremely low incomes. Michael Coolums, the city's housing policy and programs manager, said the five‑story, 59‑unit building was designed in part to provide larger family units and set aside 15 units — about 25% of the total — for people with intellectual and developmental disabilities who receive services from the Regional Center of the East Bay.

The approval follows a unanimous set of planning commission entitlements on March 25 that included density bonus, design review, a minor use permit and a tentative parcel map. The council vote adopted the planning commission’s recommendation to accept on‑site units as an alternative means of compliance to the city’s affordable housing impact fee.

Why it matters: Newark’s housing element and recent local policy work emphasize adding family‑sized affordable homes and housing for special‑needs households. City staff said taking ownership of the site and leasing it to SAHA was intended to improve the project’s competitiveness for scarce state financing.

Project details and financing: The site is roughly a half‑acre at 109 units per acre on Thornton Avenue between Cherry and Arden and is immediately across from the Newark Pavilion. The proposed building includes a courtyard with a playground and community room, 42 parking stalls (including three accessible spaces) using a mechanized “puzzle” parking system on the ground level, and bicycle parking for up to 32 bikes. About half the units will be two‑ or three‑bedroom units.

Staff said the city’s contribution to the project is a $12 million loan from the city’s affordable housing impact fee fund; the council previously authorized a loan and later amended it to reflect the city's acquisition of the land to improve the project's funding prospects. The staff presentation said roughly $850,000 of the city's contribution has been made available for predevelopment costs. SAHA has secured $1.5 million from the California Department of Developmental Services to fund the special‑needs units and is seeking additional funds, including a Department of Housing and Community Development (HCD) Multifamily Housing Program (MHP) award. Staff said the MHP application is scheduled for April 15 and that HCD announcements could come in August; the earliest possible groundbreaking is spring 2026 with a potential opening in 2028 if financing is available.

Parking, density and concessions: Because the project is 100% affordable, it qualified under state density bonus law for an 80% density bonus and the accompanying limitations on local parking requirements. Planning staff said the project would have required about 120 spaces under city code; with state caps and waivers it will provide 42 spaces, which—after subtracting the 15 special‑needs units that are unlikely to own vehicles—equates to about 0.95 spaces per unit. Council members asked whether parking would be assigned; SAHA’s representative said parking will be assigned rather than first‑come, first‑served, and that households can request reasonable accommodation for mobility needs.

Public and official remarks: Supervisor Elisa Marquez, Alameda County supervisor for District 2, spoke in support of increased family‑sized affordable housing and offered county assistance with state and federal advocacy. Michael Coolums said the proposal “is entirely affordable as it contains 59 units at extremely low, very low and low income levels.” Jonathan Asman, SAHA’s associate director for real estate, joined staff at the podium for questions about parking, unit mix and timelines.

Council action and vote: Councilmember Contanzio moved approval of staff’s recommendation; Vice Mayor Little seconded. The council adopted the resolution approving an alternative means of compliance for the Thornton Avenue Apartments project. The official vote was recorded as four ayes with Councilmember Jorgens recused due to a real property conflict.

What changes for the site next: Staff said SAHA must satisfy all planning conditions before the city will issue building permits. The developer will proceed with state funding applications; if HCD funding and tax credit equity are secured, work could begin in 2026. If state funding is not secured, the city will retain ownership of the site and staff said alternative options would be pursued.

Votes at a glance - Resolution approving an alternative means of compliance to payment of housing impact fees (Thornton Avenue Apartments, SAHA): Motion by Councilmember Contanzio, second by Vice Mayor Little; outcome — approved (4 ayes; Councilmember Jorgens recused). Fee amount noted by staff as approximately $1,100,000 if the alternative had not been accepted. - Consent calendar (audited demands; employee classification and salary schedule amendments; budget and CIP amendments; and adding a communications and public engagement manager classification): motion and unanimous approval. See city minutes for itemized details. - Amendment No. 2 to contractual services agreement with Francisco and Associates (landscape and lighting district administration services), item pulled for recusal and then approved: approved with 4 ayes; Councilmember Catanzia recused.

Reporting limitations: The article reflects information presented at the April 10 council meeting and does not assert outcomes of pending state funding applications. Timelines and funding availability are contingent on external approvals and award decisions.

Provenance - topicintro: transcript excerpt starting at 2342.15 "...This item involves consideration of staff's recommendation to improve an alternative means of compliance for a project being developed by Satellite Affordable Housing Associates..." (transcript timecode ~2342.145) - topfinish: transcript excerpt near 4613.82 documenting the council vote and resolution title (transcript timecode ~4613.8247)