City Invests in New Affordable Housing
(San Carlos, CA, June 27, 2023) – Acting on its strategic goal to support the creation of new diverse and affordable housing, the San Carlos City Council approved a loan of $12,860,000 Monday night for the construction of the Cherry Street Commons Affordable Housing Project. The project will redevelop an aging six-unit structure owned by HIP Housing at 1244 Cherry Street and will include portions of the City-owned property at 1232 Cherry Street, acquired in 2022. Cherry Street Commons will consist of 33 affordable housing units, ranging from 1 to 3 bedrooms, and designed with families in mind.
The Cherry Street Commons project, which will be managed through a partnership with HIP Housing and Eden Housing, is the latest in a series of investments in affordable housing by the City of San Carlos, following the recently completed Walnut Studios project at 817 Walnut Street. Walnut Studios, completed in June 2022, is a 100% affordable housing project containing 23 studio units and made possible by a $7,300,000 loan from the City.
With Walnut Studios completed and the Cherry Street Commons project slated to begin construction in 2024, San Carlos City Council and City staff have no intention of slowing their progress on affordable housing. At last night’s meeting, the City Council also approved the purchase of two adjacent properties at 1800 El Camino Real and 1131 Eaton Avenue, with the goal of creating yet another 100% affordable housing project. The City will dialogue with the San Carlos community about the type of affordable housing preferred in the area and is encouraged by the site’s potential to include close to 90 affordable living spaces.
“This unprecedented investment demonstrates our commitment to providing affordable housing in our community,” stated Mayor Adam Rak. “We will continue to look for further opportunities to work with our non-profit housing partners to grow affordable housing options in San Carlos.”
Affordable housing projects in San Carlos are funded by the significant Commercial Linkage Fees that are collected from large office and life science projects under construction in San Carlos. Commercial Linkage Fees are funds that are collected from commercial projects and set aside for affordable housing. Since adoption of these fees in 2016, the City has collected over $10 million in Commercial Linkage Fee revenue. Projects currently proposed could bring upwards of $30 million in additional Commercial Linkage Fee revenue over the next 5 years, funding the expansion of affordable housing in San Carlos for years to come.
To learn more about affordable housing in the City of Good Living, please visit www.cityofsancarlos.org/affordablehousing.