Review of infrastructure improvements budget, drafting updates to Inclusionary Housing Ordinance
On May 27, the Planning Board will review the City’s proposed Capital Budget, which funds infrastructure improvements, to determine if it is consistent with the General Plan. The budget previews 39 planned City projects, including several related to roadway improvements and climate adaptation.
The Board will also direct staff in drafting updates to the inclusionary housing ordinance to address affordability and state legal requirements. A key issue precipitating an update is that rental units designated for moderate-income renters frequently sit vacant because they offer little to no discount over market-rate units.
Below is a summary of what is proposed and how to participate.
Proposed Capital Budget
The proposed Capital Budget (link downloads document) of $43.8 million for Fiscal Year 2025-26 and $42.4 million for Fiscal Year 2026-27 includes investments in sidewalk, signal, and lighting maintenance, sewer rehabilitation, stormwater management, lagoon and shoreline maintenance, marina and waterfront repair, buildings, parks, electric vehicle chargers, ADA improvements, transportation enhancements, and sea level rise adaptation.
Project highlights include:
- Designing and constructing the Neighborhood Greenways Network.
- Safety and transit improvements along Willie Stargell Ave.
- Lincoln/Marshall/Pacific Corridor Improvements.
- Planning for a bicycle and pedestrian bridge between Alameda and Oakland.
- Implementing Bay Farm Island and Oakland Alameda Estuary Adaptation Projects.
- Developing an Emergency Water Supply system for firefighting.
- An emergency vehicle preemption system, designed to give emergency response vehicles a green light on their approach to signalized intersections.
- Planning for an updated Main Library interior.
- Preservation of Alameda Point Big Whites (historic naval base housing).
- Relocating the Day Center and Safe Parking Lot to Building 2 at Alameda Point.
- Implementing traffic calming measures at high-priority corridors and intersections.
Staff requests that the Board determine that the budget is consistent with the General Plan, a requirement under California law before City Council adoption.
Drafting Inclusionary Housing Ordinance updates
The Board will also hold a workshop to direct staff on drafting updates to the inclusionary housing ordinance to address housing affordability and legal issues.
Inclusionary policies aim to integrate residents from various income levels, fostering socio-economic diversity. Alameda’s inclusionary ordinance requires that 15% of units in residential projects with five or more units be made affordable to very low-income (4%), low-income (4%), and moderate-income (7%) households. The ordinance applies to all residential projects, but those located on Alameda Point are subject to a higher threshold of 25%.
A key issue spurring the need for an update is that “moderate-income” rental units, intended to make housing more affordable for middle-income residents, effectively function as market-rate units. As rents in Oakland and Alameda have softened post-pandemic, market-rate apartments are now priced comparably to the “moderate-income” units. Moderate-income renters prefer market-rate apartments, which aren’t burdened with the restrictions and paperwork of the specially designated apartments.
Consequently, as reported in other news outlets, including the San Jose Mercury News, new developments such as Launch have no trouble filling units designated for low-income renters; however, units designated for moderate-income renters earning 80-120% of the area median income (AMI) frequently sit vacant.
Still, landlords have been reluctant to lower rates, fearing renters could pay at that level for years, given Alameda’s rent control laws, and in the long run, they need rents to be high enough to pay back their loans.
Another issue precipitating the update is that inclusionary requirements for ownership housing cost significantly more than for rental housing.
Finally, the current ordinance has no in-lieu fee option for larger developments, which state law requires. In-lieu fees are payments a developer makes instead of building on-site affordable housing units. Cities usually use the fees to fund affordable housing developments off-site.
How you can participate
The meeting will be held on Tuesday, May 27, at 7 p.m. at the City Council Chambers on the third floor of City Hall, 2263 Santa Clara Avenue.
Members of the public may participate in person or over Zoom. They may comment on the Non-Agenda, Consent Calendar, and Regular Agenda portions of the Meeting Agenda (link downloads document).
The Non-Agenda portion of the meeting provides a chance to address the Board regarding any matter not on the agenda over which the Board has jurisdiction. The Consent Calendar is for routine items approved by a single motion. The Regular Agenda is the central portion of the meeting, during which each issue receives a presentation and time for Board discussion and public comment.
Make requests for reasonable accommodation by completing an online form.
For Zoom registration, click here. Information to assist with Zoom participation is here. The Zoom phone number for telephone participants is 669-900-9128, and the Meeting ID is 815 3979 3319.
The meeting can also be viewed on the City of Alameda’s Facebook page, but comments posted there are not monitored.
Community members may also email Board Members before the meeting.
Contributing writer Karin K. Jensen covers boards and commissions for the Alameda Post. Contact her via [email protected]. Her writing is collected at https://linktr.ee/karinkjensen and https://alamedapost.com/Karin-K-Jensen.
