Emeryville council declines to commit $31.76 million to 4300 San Pablo affordable housing; asks staff to explore alternatives

Mayor Carr presided as the Emeryville City Council considered a staff recommendation to authorize the city manager to commit up to $31,757,588 in financing to EAH Inc. for a five‑story, 68‑unit intergenerational affordable housing project at 4300 San Pablo Avenue.

Valerie, a city housing staffer, told the council the project was selected through a 2020 RFP and would include roughly 54 units for seniors, 13 units for transitional‑age youth and one manager unit. The total development cost is about $62 million; staff requested about $31.7 million in subsidy (roughly 47% of development cost), with about $29 million from city resources and $2.7 million from an Alameda County Measure A1 reservation. Valerie said the request was driven by a loss of project‑based vouchers from the Alameda County Housing Authority and by unsuccessful state funding applications, leaving a financing gap that prevents the project from moving forward without local subsidy.

Council members pressed for details. Council member David Mora questioned the scale of the subsidy, noting the city land contributed to the project has an estimated value of about $4 million and calculating a city subsidy of roughly $457,000 per unit. Mora urged a pause to explore alternatives — including mixed‑income development or other subsidy structures — arguing the council should not “throw good money after bad.”

Vice mayor Solomon and Council member Courtney Welch said their concern was timing: staff explained the developer needs a city commitment to apply for federal state low‑income housing tax credits in July, and waiting could worsen cost escalation or prevent the project from competing. Valerie warned that because the site is designated exempt surplus land for affordable housing and because the city has an exclusive agreement (LDDA) with EAH, pursuing other developers or a different project type would require terminating the current agreement and restarting procurement, which could add years of delay.

Public comment split the room. Christian Torres of CHS Housing and Steve Pratt of EAH urged the council to approve the commitment so the applicant could submit a competitive tax‑credit application. A separate public commenter used the podium to raise policing and process concerns but did not address the project’s financing.

When Vice mayor Solomon moved to approve the staff recommendation, Council member Welch seconded. The roll call vote was: Council member Mora — Nay; Council member Preiforce — Nay; Council member Welch — Aye; Vice mayor Solomon — Aye; Mayor Carr — Nay. The motion failed, 3–2.

After the failed vote the council directed staff to place a future agenda item to explore alternative housing development opportunities at 4300 San Pablo. Staff and the city attorney advised that because the city is under an exclusive negotiation agreement with EAH that expires in October 2026, legally the council would need to terminate that agreement before city staff could fully pursue other developers; such an action would need to return as a future agenda item. The city attorney also indicated staff could discuss related matters in closed session on May 5 if the council requested.

No financial commitment was approved at the April 21 meeting. The council’s next steps: a future agenda item to examine alternatives for the site and, separately, the city will determine whether to authorize a commitment letter — which staff said would enable a July tax‑credit application — or to pause and re‑evaluate options that might change the project mix or subsidy level.

The council adjourned at 10:01 p.m.