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The Pleasanton City Council voiced its early support Tuesday for what would be the city’s first ever 100%-affordable housing development, though it did express concerns over project funding and parking.
The preliminary proposal by nonprofit Bridge Housing seeks to demolish an existing office building at 4780 Chabot Drive and replace it with 142 affordable rental units. The developer has not submitted a formal application but wanted the council to weigh in on early plans.
“I am genuinely excited about this project,” Councilmember Julie Testa said during the meeting. “I also think this project demonstrates why we can embrace affordable housing and stand up for local control at the same time.”
Community development director Ellen Clark said Pleasanton has a long history of supporting affordable housing projects through direct financial support and local policies. There are currently more than 1,140 affordable housing units in the city, she said.
At a 2024 study session, the council discussed ways the city could support more affordable housing, directing staff to take a more active role in that process. At the session, council members expressed an interest in supporting a 100%-affordable housing project.
San Francisco-based Bridge Housing has overseen the construction of affordable housing projects across the Bay Area, including The Parkview, a senior housing community in Pleasanton.
Stephen Clarke, senior vice president of acquisitions and development at Bridge Housing, told the council on Tuesday that the group has developed 2,800 housing units across 25 different projects in the last five years using local, state and federal funding sources.
He said the proposed Pleasanton complex would cater to families who are priced out of market-rate housing.
The preliminary plan calls for a six-story, 142-unit building on the 1.39 acre site, which is currently occupied by a three-story, 24,000-square-foot office building.
The multifamily complex would feature a mix of one-, two- and three-bedroom apartments for rent. Clarke said 14 of those units would be deed-restricted at 30% of the area median income, qualifying as affordable to extremely-low-income households.
Another 15 units would be deed-restricted at 50% of the area median income; 55 units would be restricted at 60% of the area median income; and 57 units at 70%. Clarke said rent for a two-bedroom restricted at 60% of the area median income would be just under $2,300. He said a similar two-bedroom apartment at market rate would likely rent for around $3,200.
The project includes one manager’s unit, a roof deck and underground parking. The building would reach a maximum height of 75 feet.
The project would count toward the city’s Regional Housing Needs Allocation for extremely-low-income households, which Clarke said is a difficult category to meet.
The property sits just a few miles from the Dublin-Pleasanton BART station and is surrounded by similarly tall commercial buildings, which council members said makes the location perfect for the proposed project. Clarke agreed.
“In the affordable housing world, a property like this is a unicorn property,” he said.
While council members expressed support for the development, they did voice concerns over how the project will be funded and the number of parking spaces included in the preliminary design.
Clarke said Bridge Housing is seeking a combination of federal, state, local and other public and private sources to come up with the $107.6 million needed to fund the project. He said the group plans to explore federal credits, tax-exempt bonds, a permanent mortgage and state tax credits.
Additionally, the nonprofit is asking the city to allow a portion of affordable-housing impact fees from private developments to be used toward the project. Direct payment of those fees would normally be deposited into the city’s Lower Income Housing Fund.
The staff report notes the applicant for the Positas Park project at 5976-5994 West Las Positas Blvd. has reached a tentative agreement with Bridge to allocate between $10.3 million and $10.5 million to the Chabot Drive project, the equivalent of its required contribution to the Lower Income Housing Fund. The Positas Park project is currently undergoing city review.
Bridge also wants the city to waive development impact fees and other fees associated with the project, which could total up to $8.4 million. Clarke said waiving these fees would significantly help move the project forward.
Most of the council agreed with the idea of providing some sort of fee relief for the project. However, Mayor Jack Balch said he would like to have future discussions about using a combination of fee waivers, fee deferrals and the use of the city’s Lower Income Housing Fund to support the project.
Currently, that fund has about $18.9 million and is expected to collect another $7 million to $8 million over the next few years.
Each of the council members voiced concerns about the proposed ratio of half a parking space per unit, for a total of about 70 spaces for the 142-unit project.
Vice Mayor Matt Gaidos said he wouldn’t mind the building being taller if it meant being able to add more parking spaces underground. Testa, on the other hand, liked Clarke’s suggestion to look into offsite parking, which is something he said Bridge Housing has done for other projects.
Balch, however, said he would like more analysis to determine if there really is a need for additional spaces.
Clarke said Bridge expects to submit the entitlement package by mid-2027, with the goal of beginning construction as early as 2028.
