Business fees to fund housing will be studied in San Jose

The concern, even for some council members who voted for the study, is that despite its housing shortage, San Jose still has many more residents than jobs, which is the opposite of the situation in many surrounding cities.

The imposition of commercial linkage fees to fund below market-rate housing is still alive in San Jose after Tuesday’s 9-2 City Council vote to add a discussion of them to next week’s agenda.

The vote came on an item of how the city should respond to a Santa Clara civil jury report issued in June that included among its findings that the fees are overdue and would increase housing.

Five council members, including Mayor Sam Liccardo, wrote memos changing the staff-authored response of disagreement with the finding to say the city would consider a study to confirm the causal relationship between job creation and an increased need for housing and a second study of the feasibility of enacting fees.

 

 

Read more on Silicon Valley Business Journal

 

 

 

BART picks developers for huge housing and office development at Lake Merritt in Oakland

Bay Area Regional Transit officials selected a development team to revamp three city blocks above the Lake Merritt BART Station in Oakland.

The agency picked Strada Investment Group and the East Bay Asian Local Development Corp. to develop 1.4 acres into two high-rise towers with 519 homes and 517,000 square feet of commercial space.

EBALDC is one of Oakland’s top nonprofit housing developers with 27 communities in the city. San Francisco-based Strada has owned multiple office buildings in downtown Oakland and has developed multiple projects in various Bay Area cities.

The winning team beat out proposals from global real estate investor Hines, Menlo Park-based Lane Partners and a partnership of Oakland-based McGrath Properties Inc. and Canadian investor Brookfield Residential. Lane Partners came in second, according to a BART staff report.

The BART board will formally vote to select the Strada/EBALDC Team at its meeting Thursday and start a two-year exclusive negotiating agreement to finalize the project. if the two sides fail to negotiate a project in that time frame, BART could then give Lane Partners a shot without having to do another selection process.

BART has wanted to develop its land above the Lake Merritt Station for years. The goal is to boost BART ridership and attract more residents, businesses, and pedestrians to a relatively quiet stretch of Oakland nestled between the city’s core downtown and the lake.

 

Read more on San Francisco Business Times

 

 

 

Mayor wants to lure modular housing factory to SF to provide both homes, jobs

As San Francisco officials continue to scout locations for a factory that can churn out modular housing units, Mayor London Breed is lining up the city to be the first customer.

Breed is expected to announce Monday that the city is prepared to spend $100 million on hundreds of modular apartments that would grow the city’s stock of affordable housing.

Who will run the modular housing factory won’t be known for some time, though the leading plan is to seek a private operator on city-owned or city-leased property. And even after a site is selected, it will take years to get a factory up and running.

But Breed and other officials hope the early — and sizable — promise to buy will entice interested operators to set up shop in San Francisco.

Read more on SF Chronicle

UC Berkeley professor blames rent control for California’s housing shortage

Kenneth Rosen hopes to sway voters against Proposition 10.

Kenneth Rosen, a UC Berkeley economist and real estate consultant, published a paper Wednesday titled The Case For Preserving Costa Hawkins, in hopes of swaying voters against Proposition 10.

Proposition 10, which will go before voters in November, would repeal the 1995 Costa-Hawkins Act, a state law that severely curtails rent control in California cities. For example, under Costa-Hawkins, only San Francisco apartments built before 1979 may be subject to rent control.

Passing Proposition 10 would not in and of itself create any new rent control housing, but it would allow cities to expand rent control stock for the first time in decades if they so choose.

Rosen, however, argues that turning the clock back to 1994 will stifle new housing and drain apartment stock.

 

Read more on Curbed SF

 

Why property owners should consider renting out to Section 8 households

Johnny Burks, who had a long career as a youth educator in Oakland, has straightforward advice for parents who want to set their children up to succeed.

“The best thing a parent can ever do for their children is give them a peaceful night’s sleep where they can dream,” Burks said.

But Burks, a former guidance counselor at Castlemont High School and the founder of Project Reconnect, a juvenile intervention program in Alameda County, understands that ensuring a peaceful night’s sleep is hard for parents who struggle to keep a roof over their heads.

The city of Oakland wants to give those families a break, but it needs help from people like Burks.

In January, Oakland began a program that gives financial incentives to landlords renting Section 8 apartments to low-income families, and Burks was one of 64 owners who joined the new program through June.

Burks is doing his part to curb displacement. He owns two four-unit buildings in East Oakland, and five of the eight apartments he owns now have Section 8 tenants.

Section 8, run by the Department of Housing and Urban Development, gives housing vouchers to low-income families, the elderly, the disabled and veterans. The average annual income of a Section 8 tenant in Oakland is $19,370, which doesn’t go far in a city where the average rent for an apartment is $2,527, according to RentCafe, a real estate tracking website.

For many low-income Oakland residents, Section 8 is the last hope to stave off homelessness.

Section 8 landlords are the largest provider of affordable housing in Oakland, according to Mayor Libby Schaaf. But from 2012 to 2016, the number of landlords accepting Section 8 fell from 5,374 to 4,254, according to data from the Oakland Housing Authority, which administers the HUD program.

 

 

 

Read more on SF Gate

 

 

 

Oakland leaders declare Section 8 landlord incentive program a success

An incentive program aimed at bringing new landlords into the Section 8 low-income housing program — and keeping them around — has yielded positive results, with hundreds of new units added this year, Oakland city leaders announced today.

The three-tiered incentive program was launched by the Oakland Housing Authority in January. As of June 30, 75 new property owners had signed up to accept Section 8 housing vouchers.

“In just six months, 684 families have found stable, secure, affordable housing in Oakland. That is something to celebrate,” Mayor Libby Schaaf said at a press conference today.

Section 8, a federal program that provides rental assistance to qualifying low-income families, has been struggling in Oakland in recent years.

From 2015 to 2016, the Section 8 program shed more than 1,000 owners, according to Eric Johnson, executive director of the Oakland Housing Authority.

Since then, the program has been in “recovery mode,” he said, looking for ways to attract new owners.

“It can be a challenge to get to know us,” Johnson said. “We have lots of forms, and the first time through them is not easy.”

At a 2016 cabinet that discussed ideas to address Oakland’s housing and displacement crisis, city leaders identified incentives for Section 8 landlords as a priority.

 

 

Read more on Hoodline

 

 

Oakland’s growing pains could stifle future development

Dozens of cranes dot Oakland’s skyline and thousands of new housing units are in the works, making the current cycle one of the most robust in Oakland’s history.

As more people and businesses turn toward Oakland as a cheaper area to live and work, Oakland has struggled to keep up with both office and housing demand. Downtown Oakland is one of the tightest office markets in the country and multifamily rents have risen 51% since the start of the cycle.

Developers and designers are looking for ways to build more efficiently to keep rents down, but growing community activism, overworked city planning staff and tightening financing could stall future growth in Oakland.

Panelists discussed these topics as well as the impact of modular units and designing housing to meet residents’ changing needs during Bisnow’s Oakland Construction and Development Update event Thursday.

With 900 housing units delivering this year and 2,400 next year, the city is undergoing rapid change.

“Instead of the city [staff] focusing on department stores and auto dealerships, they’re making Oakland a very vibrant place to live,” Junction Properties owner Charles Long said during the event.

The increased development has spurred an anti-displacement movement and a backlash over a lack of affordable housing, which could shut down the future fulfillment of housing that Oakland has in its pipeline, he said.

Developers need to be more cognizant of working with the city and other stakeholders to better address the anti-displacement backlash, he said.

 

Read more on Bisnow

 

 

The future of the shopping mall is not about shopping

When Cirque du Soleil announced plans this week for a “family entertainment” concept inside a Toronto mall, it said a lot about the future of shopping centers.

The 24,000 sq.ft. space, called “Creactive”, will be a circus-inspired playground with a range of activities from juggling to high-wire – allowing fans to “peek behind the curtain and imagine themselves stepping into our artists’ shoes”, according to Marie Josée Lamy, producer of Creactive. “Hanging at the mall” will take on an entirely new connotation as shoppers take to the flying trapeze. And that’s the point.

No longer is it good enough for malls to be passive places to buy stuff – they have to be engaging places to do stuff. Otherwise, this particular retail format will be relegated to relic status – “a historical anachronism, a 60-year or so aberration that no longer meets the public’s, the consumer’s or the retailer’s needs”, as developer Rick Caruso mused.

With that point in mind, I draw your attention to Exhibit A: Randall Park Mall in Ohio. When it opened in 1976, Randall Park Mall was briefly the world’s biggest shopping center. It quickly lost relevance however, and by 2000, Randall Park Mall’s vacancy rate was 92%. Fast forward to 2017 when it was revealed that Amazon was constructing a 855,000 shipping center on the same site. Online triumphs over offline, or “software eats retail” as Netscape founder and venture capitalist Marc Andreessen memorably put it. But it doesn’t have to be that way.

 

 

Read more on Forbes

 

 

Modular units make their debut at Oakland housing project

Modular units are being installed at Coliseum Connections in Oakland.

The $53M project, developed by a JV of UrbanCore and Oakland Economic Development Corp., will create 110 mixed-income units on a 1.3-acre Bay Area Rapid Transit-owned parking lot ground-leased to the JV.

The modular units were built by Guerdon Enterprises out of Boise, Idaho. Completion of the modular unit placement is expected on June 29. The project is expected to be completed in January when occupancy also is expected to begin.

Coliseum Connections is one of a handful of modular projects in the works or being planned in Oakland. Panoramic Interests plans to build over 1,000 units in West Oakland next to BART, and RAD Urban is planning two high-rises from steel modular units.

The project at Snell Street and 71st Avenue will have 55 market-rate units with rents ranging from $1,900 to $2,400 for households earning 80% to 120% of the area median income; the other 55 units will be affordable with rents from $1,100 to $1,600 for households earning 50% to 60% of the area median income.

 

Read more on Bisnow

 

 

After two projects sank, can San Francisco find developers for decaying waterfront?

The new effort is one of the largest but also potentially costliest redevelopment opportunities in the city.

The Port of San Francisco is seeking ideas for new uses at 13 historic waterfront piers, in one of the largest but also potentially one of the costliest redevelopment opportunities in the city.

The agency wants proposals from both large developers and smaller tenants such as nonprofits, arts groups and retailers to revive the piers, which are now vacant or used for parking or storage.

Some previously renovated piers have been financial successes. Waterfront offices at the Ferry Building and Piers 1 1/2, 3 and 5 have signed tenants for rents over $100 per square foot. Control of the Piers later sold for $103 million in 2016, and the Ferry Building is expected to be sold to Hudson Pacific Properties for around $300 million, according to sources tracking the market.

But two recent redevelopment efforts failed because of the high costs of rehabilitating and seismically protecting piers. A study for the Port found that $74 million to $10 million would be required to bring a single pier up to code. Last year TMG Partners and Premier Structures, Inc. exited an office, event and restaurant space proposal at Pier 38 after the cost to repair the pier was expected to be as high as $122 million.

 

 

 

Read more on San Francisco Business Times