The Emeryville City Council met on April 21 with a fairly light agenda. Despite this, the meeting extended beyond three hours with a substantive discussion on a proposed $32M subsidy to an affordable housing project that is experiencing spiraling costs.

• Special Orders of the Day
• EPD Annual Report
• Development Impact Fee Annual Increase
• $31M City Loan Request for Affordable Housing Project

Special Orders of the Day

Islamic Cultural Center Recognition [42:10]

The City Council issued a certificate of recognition to the Islamic Cultural Center of Northern California (ICCNC) for its significant contributions to the Emeryville Citizens Assistance Program (ECAP) in addressing food insecurity in the region. Although no representatives from the center were present, the recognition took place during Muslim Heritage Month, and Councilmember Priforce volunteered to deliver the certificate to them.

National Crime Victims’ Rights Week [43:05]

Councilmember Welch read a proclamation designating April 19 through April 25, 2026, as National Crime Victims’ Rights Week.

• Impact of Crime: The proclamation noted that more than 26 million people are victimized by crime annually, and the Alameda County District Attorney’s Office served over 13,160 survivors in 2025.
• Victim Support: Janelle Cole, a victim witness advocate, accepted the proclamation on behalf of District Attorney Ursula Jones Dickson. She highlighted that the office helped survivors secure more than $2 million in victim compensation funds in 2025 for needs such as counseling, medical expenses, and relocation.

Earth Day Proclamation [42:35]

Vice Mayor Solomon read the proclamation for Earth Day, highlighting the 2026 theme, “Our Power, Our Planet.”

• Focus on Local Action: The proclamation emphasized that environmental progress is sustained by the daily actions of local communities and educators rather than solely by policy changes.
• Shoreline Cleanup: It was noted that a Shoreline Cleanup Day is scheduled for April 25 as part of the city’s Earth Day celebrations.

Emeryville Police Department 2025 Annual Report [55:46]

Recently hired EPD Captain Nicolas Calonge presented the 2025 Annual Report, representing 58 department personnel.

• Crime Trends: Overall crime in Emeryville trended downward by over 20% in 2025 compared to the previous year. Property crimes, particularly petty theft, remain the primary challenge, making up 85% of total crimes.
• Use of Force: The department reported remarkably low use-of-force statistics, with only 59 incidents occurring out of 36,383 calls for service (0.0016%).
• Staffing Challenges: The department expects significant staffing hurdles, with a potential 40% vacancy rate by July 1, 2026, due to upcoming retirements and current openings.
• Fleet Electrification: During the discussion, Councilmember Mora inquired about progress toward electrifying the police fleet. Captain Collange explained that while administrative vehicles have been replaced with electric models, the patrol fleet’s transition is currently stalled by the high cost of installing Level 3 rapid-charging infrastructure at the station.

PUBLIC HEARING: 2026-2027 Development Impact Fee Updates [1:33:47]

The City Council held a public hearing and approved the updated development impact fees for the upcoming fiscal year.

A modest across-the-board increase of 0.50% was recommended. This adjustment is based on the annual percentage change in the Engineering News-Record Construction Cost Index (CCI) for San Francisco between March 2025 and March 2026. The increase applies to fees collected for affordable housing, parks and recreation, and transportation, ensuring that the funding keeps pace with the rising costs of labor and materials required to maintain and expand the city’s infrastructure as new development occurs.

The justification for this annual update is rooted in city ordinances adopted in 2014, which mandate periodic adjustments to reflect shifting economic conditions. While the council has previously used the Consumer Price Index (CPI) during years of extreme construction cost volatility to avoid placing an “undue burden” on developers, the current 0.50% CCI increase is considered stable and consistent with the city’s long-term fiscal methodology. These fees are vital to the city’s Capital Improvement Program, having generated approximately $11.6 million over the last decade to fund essential projects like the South Bayfront Bicycle/Pedestrian Bridge, various park expansions, and affordable housing developments on San Pablo Avenue.

Staff presentation was waived by council and a motion was approved 5-0.

ACTION ITEM: Affordable Housing Project Loan Deliberation [1:38:00]

The bulk of the meeting was consumed by a nearly two hour staff presentation and subsequent council discussion considering approval of additional funding for the approved affordable housing project at 4300 San Pablo Avenue.

The five-story development would provide 68 units—primarily serving seniors and transitional-age youth earning between 30% and 60% of the Area Median Income (AMI)—alongside 7,000 square feet of residential amenity space.

Economic Development & Housing Manager Valerie Bernardo presented the long background behind the resolution requesting that the City of Emeryville commit approximately $31.7 million in permanent financing to EAH Inc. who was selected to develop the project back in 2020. This amount is twice as much as was allocated by the city to the recently completed Nellie Hannon Gateway project.

To fund this commitment, staff proposed amending the city’s affordable housing expenditure plan by reallocating funds from other stalled or deprioritized initiatives, and pulling funding from other projects that are further downstream.

Skyrocketing Construction Costs and Competitive Funding Blamed

When EAH was originally selected for this project in 2020, the city’s financial commitment was zero; the developer was only authorized to use $2.5 million in Alameda County Measure A1 funds. However, over the past six years, the total project cost has risen to $62 million, and the external funding landscape has collapsed, creating a massive funding gap that the city is now being asked to fill.

EAH was approved last year for a $12.7M commitment by the city that was contingent on state funding. This funding was not awarded and this city commitment was subsequently rescinded.

Bernardo outlined several cascading factors that necessitated this dramatic request:

• Loss of Vouchers & County Funds: The project heavily relied on the Housing Authority of Alameda County issuing project-based Section 8 vouchers to subsidize the extremely low-income units. The county recently announced a funding shortfall, meaning no vouchers will be released in 2024 or 2025. Furthermore, the project does not qualify for county Measure W funds because transitional-age youth do not strictly meet the “formerly homeless” criteria required by the measure.
• State Funding Penalties & Competition: The project failed to win state multifamily housing funds because Emeryville is designated as a “low resource area,” which deducts critical points from their application. Furthermore, state law allowing intergenerational housing conflicts with state funding criteria regarding special-needs set-asides, costing the project even more points.
• Loss of Tax Credits: The city recently lost its “Difficult to Develop Area” designation, which stripped the project of a 30% financial boost in Low-Income Housing Tax Credits. Furthermore, federal tax credit funding has dropped by 47% regionally, leaving 115 stalled projects in Alameda County fighting for an average of just one state award per cycle.
• Inflation: Construction costs have increased by 8% since the proposal was first submitted in 2020.

Bernardo referenced a recent study by the Bay Area Housing Finance Authority (BAHFA) identifying that there were currently 433 stalled housing projects with 147 of these in the East Bay and 115 in Alameda County. “[These projects are] all competing for the same finite resources that are available through the state and through the county,” Bernardo explained noting the scarce resources and extremely competitive nature of the funding.

Bernardo explained that stepping in with this $31.7 million subsidy (covering 47% of the total development cost) is the only way to give the project a competitive “tiebreaker” score for the next round of tax credits. Furthermore, abandoning the project is legally perilous, as the city has already designated the site as “exempt surplus land” and included it in its state-mandated Housing Element, which requires it to be used for affordable housing.

To further close this gap, Bernardo also suggested pulling funding on some smaller programs and reducing the allocation of the Christie Avenue project by $10.9M. Also in the same resolution, Bernardo proposed amending the Housing Expenditure plan to add $9.9 M in additional revenue to to create two new programs including homeowner retention and ADU Incentive programs.

Council Weighs Financial Risks and Alternative Options

“This is a significant project,” acknowledged Mayor Kaur thanking Bernardo for the presentation and her explanation of the complexity of the project. Kaur then turned things over to her colleagues who expressed distinct differences in the financial risks and alternative options of the project.

• Councilmember Mourra expressed the most skepticism, pointing out the staggering leap from a $0 city subsidy when the project’s RFP was submitted … to a $31.7 million ask. He calculated that when including the $4 million value of the city-owned land, the public subsidy equates to about $457,000 per unit. He questioned whether this was a prudent use of Measure C funds, noting that voters approved the measure under the premise that it would fund 500 units of housing, whereas this single 68-unit project would consume a massive portion of that budget. Mourra pressed staff on alternative options, such as pivoting to a traditional mixed-income development. Staff countered that state disposition laws and Housing Element requirements make pivoting nearly impossible and highly unlikely to attract a developer in the current market.
• Vice Mayor Solomon focused heavily on risk mitigation and hypothetical future delays. He questioned what would happen if the city approved the funds and the developer still failed to win the tax credit funding. Staff clarified that the city’s financial commitment is contingent on the award; if EAH fails to secure the tax credits by October, the commitment expires, and the council will have to reevaluate the site. Solomon also expressed concern over ongoing global inflation, asking who is on the hook if construction costs rise further. Staff assured him that once the final loan and construction contracts are closed, the contractor is responsible for absorbing any subsequent cost overruns.

Mourra pressed Bernardo on some of the “hidden costs” of the project including the cost of financing the 55 year loan. “I just wanted to comment that the so over 55 years with this borrowed money To the Emeryville taxpayer. That’s a $158.4 million going towards this project.”

“So over 55 years with this borrowed money To the Emeryville taxpayer. That’s $158.4 million going towards this project.”

David Mourra

Following Public Comment, Mourra further advocated that the city pause the project and revaluate the building landscape to get a better yield for the taxpayer. “It’s a betrayal of the public trust we asked them to vote for Measure C and support affordable housing and to pay so much for so little I don’t think makes sense so I’m urging this council to pause take stock of where we are and consider our options.”

Bernardo stepped in to remind council that the application for low-income housing tax credits was due in July so seeking an extension could potentially impact their ability to apply for these. Bernardo also pushed back on Mourra’s suggestion of pushing for a mixed-income project on the site noting that developer inquiries had dried up and it would limit grant funding options. She also cautioned that the agreement with EAH would need to expire, slated to happen this October, before other options could be explored.

Councilmember Welch expressed concern that the financing landscape was not getting any better and that the needs of the populations the project would serve outweighed any fiscal cost overruns of the project.

Kaur initially sided with Welch expressing favorability with moving forward resolved to the perception that things would not improve in the cost of building affordable housing.

Priforce expressed concern of the project being too similar to Estrella Vista which he likened to feeling like “The Projects.”

“I feel like we’re acting like we have a gun to our heads, and we don’t, right?”

Councilmember David Mourra

“We do have other levers to pull as a city. We just approved impact fees of $41,000 per unit in multifamily housing. That’s effectively a tax on housing. We could waive that in the instance of this complex if we want housing to get built,” Mourra said in a final plea. “There’s so many things that we can explore, and I feel like we’re acting like we have a gun to our heads, and we don’t, right?”

Resolution Fails

Solomon made a motion to approve the resolution which failed 2-3 after Kaur reconsidered. Mourra then asked that item be brought back as a future agenda item which was supported by a majority of council.

The Agenda and packet for this meeting can be downloaded at Emeryville.org.