Sara Conner Court

Hayward, California

Project Type: Multifamily Rental

Volume 37 Number 19

October–December 2007

Case Number: C037019

PROJECT TYPE

Located in Hayward, California, a Bay Area suburb, Sara Conner Court

provides affordable apartments for working families who earn between 30 and

60 percent of the area median income. Developed by Eden Housing, Inc., a

local affordable housing developer, the 57-unit complex was built on a 1.85-

acre (0.75-hectare) brownfield site along a major commercial corridor. Many

green features were incorporated, including the use of bioswales,

hydrozoning, and low-VOC (volatile organic compound) paint.

LOCATION

Outer Suburban

SITE SIZE

1.85 acres/0.75 hectare

LAND USES

Multifamily Rental Housing, Affordable Housing, Apartments

KEY FEATURES

Affordable Housing

Green Building

Brownfield Development

WEB SITE

www.edenhousing.org

PROJECT ADDRESS

32540 Pulaski Drive

Hayward, California

DEVELOPER

Eden Housing, Inc.

Hayward, California

510-582-1460

www.edenhousing.org

ARCHITECT

Pyatok Architects, Inc.

Oakland, California

510-465-7010

www.pyatok.com

CIVIL ENGINEER

Luk and Associates

Hercules, California

510-724-3388

www.lukassociates.com

LANDSCAPE ARCHITECT

Rich Seyfarth

Berkeley, California

510-548-5877

OTHER KEY DEVELOPMENT TEAM MEMBER

StopWaste.Org

Oakland, California

510-891-6500

www.stopwaste.org

GENERAL DESCRIPTION

Sara Conner Court is a 57-unit residential project located on an infill site in Hayward, California, a suburb on the

east side of the San Francisco Bay. The developer’s goal was to build affordable rental housing targeted mainly at

working families while using green materials and construction methods.

Units range in size from 552 to 1,328 square feet (51 to 123 square meters), have one to three bedrooms, and are

located in four buildings surrounding an interior courtyard. A variety of financing sources was used in the

development of Sara Conner Court, including city loans and grants, state low-income housing tax credits, and

three grants that were put toward various green features.

Eden Housing is a Hayward, California–based affordable housing developer that was founded in 1968. It has

developed over 4,700 affordable units in the San Francisco Bay Area and northern California, and currently

manages approximately 2,400 affordable units.

SITE DESCRIPTION

The site, which is located along Mission Boulevard, a busy, five-lane road that serves as the primary commercial

corridor through the city, was first identified for possible redevelopment by the city of Hayward in previous plans.

The city felt that reuse of this parcel would set the tone for future redevelopment along Mission.

Rectangular in shape, the site measures 1.85 acres (0.75 hectare) and is bordered by Mission Boulevard to the

east, Lafayette Avenue to the south, Pulaski Drive to the west, and apartments and a restaurant to the north.

Land uses in the area include a variety of retail and commercial properties to the north and south along Mission

Boulevard, and single-family homes to the west. Sara Conner Court is adjacent to a grocery store, a burger/malt

shop, and a large regional park. An elementary school and a middle school are both within walking distance of the

site.

DEVELOPMENT AND APPROVALS

In the summer of 2003, the owner of the property approached Eden Housing about purchasing the site for

affordable housing. Prior to Eden Housing’s acquisition, the property had been the site of a milk- and juice-

processing plant and a small retail center. The processing plant was winding down its operations and the owner felt

it was time to sell. Using a bridge loan, Eden Housing bought the site in May 2004.

Six months earlier, Eden Housing had approached the city of Hayward with a request to rezone the property from

neighborhood commercial to high-density residential to accommodate the substantial number of units. At the same

time, Eden Housing also applied for city financing.

Unlike many larger municipalities that rely on a very formal request for proposals (RFP) process for allocating

affordable housing dollars, the city of Hayward has a more informal, over-the-counter process. Furthermore, Eden

Housing had established a long-term relationship with the city through its previous affordable housing projects,

and was awarded the necessary rezoning and financing without complications in June 2004.

The city assisted with outreach to the surrounding neighborhood, providing Eden Housing with the names of

neighborhood leaders. Eden held several meetings with neighbors to introduce the project and address any

concerns or issues. Parking was their primary concern, and Eden Housing responded by adding a secondary

parking lot to the design. Given the infrequent level of mass transit service on Mission Boulevard, Eden Housing

felt this change was merited.

Another project concern was whether or not to close Lafayette Avenue—the street running along the south side of

the site—and convert it into a park. Neighbors felt the street was needed for proper ingress and egress to the

neighborhood, so it was narrowed and retained. Also, a traffic signal with a pedestrian crossing light was added at

its intersection with Mission Boulevard. Narrowing Lafayette Avenue created additional open space for the project,

calmed traffic, and made the entire area more pedestrian friendly.

One final challenge prior to breaking ground was addressing the three existing tenants that occupied the retail

center. Eden paid the relocation costs for the flower shop, which included the search for new space, moving, and

tenant improvements. Another tenant—a Laundromat—agreed to sell its equipment to Eden Housing as

compensation and close the establishment. The final tenant—a barber—retired and accepted compensation based

on tax returns from the previous two years. In total, Eden Housing paid approximately $100,000 in relocation

costs for the existing tenants.

After finalizing the acquisition and financing of the property, Eden Housing discovered the site was contaminated.

The flower shop located in the former retail center was previously a dry cleaner, and the presence of

perchloroethylene (PERC)—the primary chemical used in dry cleaning operations—was discovered in the soils

below the site. Remediation involved excavating and hauling away the contaminated soils, and adding a gas vapor

barrier. In total, remediation costs were approximately $650,000. Although remediation was unforeseen and

costly, the financial impact was mitigated, as Eden Housing had received slightly more equity than anticipated from

the state of California.

FINANCING

As with most affordable housing projects, the development of Sara Conner Court was financed by numerous

sources. Two loans from city agencies provided 30 percent of the development cost, and federal low-income

housing tax credits (LIHTCs), administered by the state of California, provided 55 percent. Additional sources of

financing included a long-term loan by Silicon Valley Bank, as well as grants from various nonprofit organizations

and foundations.

Large portions of affordable housing projects are often funded by municipal and state programs. Typically, Eden

Housing and other affordable housing developers secure financing from the city before finalizing the purchase of a

site or pursuing additional sources of revenue. In the case of Sara Conner Court, however, Eden Housing actually

bought the site prior to city approval and financing, but both were granted shortly after the purchase. The site was

purchased in May 2004 and city financing was awarded in June 2004.

In order to receive federal tax credits administered by the state, California requires developers to procure at least

20 percent of the development budget from city or inclusionary housing sources. The allocation of tax credits is

very competitive, and developers must show that their project will meet various criteria, including environmentally

friendly construction, suitable amenities at and near the project, and neighborhood revitalization.

With local financing covering 32 percent of the development budget, Eden Housing applied with the state for low-

income housing tax credits in July 2004, only a month after obtaining the property and financing. The state

awarded the tax credits, which allowed construction to begin in March 2005.

In addition to HOME and Community Development Block Grant (CDBG) funding, the city of Hayward’s

redevelopment agency extended a 55-year low-interest loan to finance the project. Loan payments are based on

residual receipts—after rents are collected and operating expenses are paid, the city retains a portion of the

remaining revenue. The implication is that the loan is not fully repaid, and is renegotiated or forgiven after the

term expires. Additional grants from nonprofits and foundations constituted a small fraction of the development

cost and went primarily to environmentally sustainable aspects of the project.

DESIGN

Sara Conner Court consists of four buildings oriented along the perimeter of the site surrounding an interior

courtyard. Three structures are three stories in height, and the fourth and largest one is four stories, including a

ground-floor parking garage. The 57 units range in size from 552 to 1,328 square feet (51 to 123 square meters),

contain one to three bedrooms, and have mid-grade flooring and appliances.

The developer incorporated communal space into the project. A community room, computer lab, and landscaped

courtyard are available to the residents. The courtyard includes a playground, benches, picnic tables, and grills;

the area is a popular amenity among the families who live at the development.

There are five pedestrian access points to the courtyard, as well as a driveway that leads to nine parking spaces.

The remaining 86 parking spaces are located under the main building and in two surface lots on site.

The architectural style of Sara Conner Court is a contemporary interpretation of the craftsman style, with varied

building heights, articulated exterior stucco walls, and pitched roofs. The upper level of each structure features

lighter-colored stucco than the lower floors, with vertical wood beams spaced at regular intervals. The architect’s

intention was to create a clear attic story, congruity among the buildings, and a human scale for the project.

A crucial design consideration for the city was the appearance of Sara Conner Court from Mission Boulevard. As an

important commercial corridor—albeit one dominated by dated, automobile-oriented uses—the city wanted its

redevelopment to be attractive and pedestrian friendly. Even though it lacked entrances for pedestrians or

automobiles along Mission Boulevard, the architect ensured that the exterior would be articulated rather than a

monotonous wall. To improve the pedestrian experience, the developer installed ground-floor windows and

substantial landscaping along the building exteriors, and mitigated the impact of the ground-floor parking garage

with screening vegetation and variously colored materials.

Eden Housing also constructed sidewalks with a landscaped buffer along the three streets that surround the site.

Prior to the project, there were no sidewalks along Mission Boulevard. It is the city’s long-term intention to create

a pedestrian system along the boulevard, but for now this will be implemented in a piecemeal fashion as

redevelopment occurs.

GREEN FEATURES

A number of energy-efficient features were incorporated into the interior design of Sara Conner Court. Among

them was the installation of Energy Star appliances, which meet a national standard for energy efficiency. Other

features included low-flow toilets, sealed HVAC ducts for energy efficiency, low-emission carpeting, and low-VOC

paint. Also, units do not have air conditioning, but instead are designed for good natural ventilation and have

ceiling fans.

Additional features that are not “green” by definition are higher-cost, longer-lasting materials that reduce the use

of resources over time. For example, Eden Housing installed a 50-year roof rather than one with a shorter life

span, and also used natural linoleum flooring rather than vinyl tile.

On the outside, the green features include bioswales and drought-resistant plantings. Bioswales are depressed

areas that collect stormwater and allow it to gradually infiltrate the soil rather than run directly off site. The areas

are typically landscaped and only slightly lower than the surrounding grade, and are placed stategically around the

site. Drought-resistant plantings are used throughout much of the landscaped area to reduce water usage. In

addition, hydrozoning is practiced, which is the clustering of plants that require similar amounts of water,

maximizing the efficiency of required irrigation.

The site also has regular bus service that connects to the nearest Bay Area Rapid Transit (BART) station. BART is

part of the extensive rail service available in the Bay Area. Being located near mass transit gives residents without

cars access to services and employment opportunities, and provides those who do drive with an option to reduce

greenhouse gas emissions and fuel consumption.

Financial grants were received from various foundations and nonprofit groups for energy-efficient measures.

StopWaste.org, the waste management agency for Alameda County, provided $55,000 as part of its Green

Building in Alameda County and Bay-Friendly Landscaping program, which was used for landscaping features

intended to conserve water on site, water-efficient toilets, and the aforementioned 50-year roof. Enterprise

Community Partners, the tax credit investor for the project, has a foundation called Green Communities, which

provided a grant of $50,000 for the upgraded linoleum flooring. A Home Depot Foundation grant of $25,000 was

originally intended for low-VOC carpeting (that was already standard practice for Eden Housing and therefore

included in the original budget), but was instead used for improved duct sealing.

Sara Conner Court is one of the first projects to be certified under GreenPoint, the Bay Area’s regional green rating

system. This independent, third-party rating system is a program of Build It Green, a nonprofit organization whose

mission is to promote healthy and energy-efficient buildings in California.

MARKETING

Sara Conner Court rents to families earning between 30 and 60 percent of the area median income (AMI), which is

considered to be $83,800 for a family of four as of 2006. For example, a family of four earning $43,050 annually,

or 50 percent of AMI, would be eligible for a three-bedroom unit for $1,012 per month. By affordable housing

standards, $1,012 is considered to be 30 percent of the monthly income for a yearly income of $43,050.

Using this qualification system, families of various sizes and incomes within the 30 to 60 percent AMI range pay

between $506 and $1,367 per month for rent, depending on the size of the unit they occupy.

Tenant screening at Sara Conner Court is stringent. Prospective tenants are asked to provide proof of income

through pay stubs and a tax return, employers are contacted for additional verification, and a credit check and

criminal background check are conducted for each household member. Tenants with a past eviction are

automatically ineligible for housing. As a result of these measures, approximately half of all applicants are refused.

As of September 2007, the wait list for a unit at Sara Conner Court reached 200 households. Of those, there were

ten to 15 applications each for units at 50 and 60 percent of AMI, and the remaining majority for those at 30 and

40 percent. As of late 2007, 157 people lived at Sara Conner Court (2.75 persons per household), 70 of whom are

children (45 percent of the total).

Because of the demand for units at Sara Conner Court, very little advertising is needed. A rental sign with contact

information is located in front of the property, and Eden Housing also advertises online on Craigslist. Eden is

considering future advertising with major area employers, particularly institutional employers that may have a high

amount of moderate-income employees.

A full-time manager and a part-time maintenance professional work at the on-site office. Eden Housing conducts

various programs and activities at Sara Conner Court. For instance, a daily after-school program is held for

residents, the computer lab is available for all tenants, and summer field trips are arranged for children. Also, a

neighborhood watch program is run out of the management office.

Eden Housing tailors its outreach programs to each property: at Sara Conner Court, for example, outside service

providers are contracted to provide financial literacy programs and homebuying assistance. Overall, the mission of

Eden Housing is to build and maintain high-quality, well-managed, service-enhanced affordable housing

communities that meet the needs of lower-income families, seniors, and persons with disabilities.

EXPERIENCE GAINED

A number of green building techniques were tried for the first time by Eden Housing at Sara Conner Court, and

require ongoing monitoring as to their cost-effectiveness. The developer believes that the green features are the

right thing to do, and speculates that spending more upfront for them will pay off in the future.

In recent years, Eden Housing has been increasingly using green features with projects as they have gained

popularity in the industry, but Sara Conner Court represents a step forward. The ongoing challenge is to educate

staff internally as well as network at the state and national levels as to best green practices. Working with

architects, engineers, and contractors who are knowledgeable and enthusiastic about green building is important,

too.

The developer also acknowledges that remediation for sites where dry cleaning was a previous use is very difficult

and expensive, as PERC is a very pervasive chemical. While noting the benefit of developing brownfields, Eden

Housing questions whether they will ever again redevelop a site that was formerly used for dry cleaning.

Minor changes the developer would have made to Sara Conner Court include installing air conditioning in the

management office and community room, the installation of an automatic garage door closer for both garage

doors, and the provision of a drainage system for the planters that sit outdoors on the second-level entryways of

Building I.

PROJECT DATA

LAND USE INFORMATION

Site area (acres/hectares) 1.85/0.75

Percentage complete 100

Gross density (units per acre/hectare) 30/57

Number of off-street parking spaces 95

LAND USE PLAN

Use

Area

(Square Feet/Square Meters) Percentage of Site

Buildings 29,496/2,740 37

Streets/surface parking 11,604/1,078 14

Courtyard 6,853/637 9

Other open space (sidewalks/private courtyards)

32,525/3,022 40

Total 80,578/7,486 100.0

RESIDENTIAL INFORMATION

Unit Type Number of Units

Area

(Square Feet/Square Meters) Average Rent

One-bedroom unit 6 552/51 $581–$700

Two-bedroom unit 29 890–993/83–92 $508–$1,066

Three-bedroom unit 22 1,147–1,328/107–123 $582–$1,227

AFFORDABILITY BREAKDOWN

Thirty percent of AMI: 6 units Forty percent of AMI: 6 units

Fifty percent of AMI: 28 units

Sixty percent of AMI: 16 units

Caretaker unit: 1 unit

FUNDING SOURCES

City of Hayward (HOME and CDBG): $4,786,273

Redevelopment Agency (city of Hayward): $1,858,038

Construction loans—Silicon Valley Bank: $12,215,000

Paydown of construction loan: –$12,215,000

Permanent loan—Silicon Valley Bank: $2,565,000

Enterprise Social Investment Corp. equity generated by the sale of low-income tax credits: $11,478,000

Stopwaste.org grant: $55,000 Enterprise Foundation’s Green Communities grant: $50,000

Home Depot Foundation grant: $25,000

Total: $20,817,311

DEVELOPMENT COST INFORMATION

Site Acquisition Cost: $1,861,000

Site Improvement Costs: $830,308

Demolition: $118,500

Off-site improvements: $107,350

Other/all on-site improvements: $604,458

Construction Costs (including remediation): $11,767,516

Soft Costs: $6,358,487

Architecture/engineering: $1,153,363

Project management: $93,123

Marketing: $65,045

Legal/accounting: $150,528

Taxes/insurance: $285,159

Title fees: $69,319

Construction interest and fees: $1,259,713

Developer fee: $1,400,000 Furnishings: $62,457

Other (relocation): $85,578

Other (security): $85,126

Other (permits and fees): $1,141,886

Other (reserves): $446,720

Other (TCAC fees): $59,470

Total Development Cost: $20,817,311

DEVELOPMENT SCHEDULE

Planning started: July 2003

Site purchased: May 2004

Construction started: March 2005

Sales/leasing started: April 2006

Phase I completed: August 2006

Project completed: August 2006

DRIVING DIRECTIONS

From San Francisco International Airport: Take Highway 101 south approximately ten miles (16 kilometers) to

Highway 92. Take 92 east 13 miles (21 kilometers) across the San Mateo Bridge to the Interstate 880 interchange.

The freeway ends, but continue straight on Highway 92, which becomes Jackson Street at Interstate 880. Take

Jackson approximately two miles (3.2 kilometers) to Mission Boulevard. Turn right and follow Mission for five miles

(eight kilometers). The site is located at the corner of Mission Boulevard and Lafayette Avenue.

Driving time: 40 minutes in nonpeak traffic.

Sam Newberg, report author

Jason Scully, editor, Development Case Studies

David James Rose, copy editor

Joanne Nanez, online production manager

Ted Thoerig, editorial associate

This Development Case Study is intended to serve as a resource for subscribers in improving the quality of future projects. Data

contained herein were made available by the project’s development team and constitute a report on, not an endorsement of, the

project by ULI–the Urban Land Institute.

Copyright © 2008 by ULI–the Urban Land Institute

1025 Thomas Jefferson Street, N.W., Suite 500 West, Washington, D.C. 20007-5201

Sara Conner Court is a 57-unit affordable housing project located in Hayward, California—a Bay Area

suburb. Developed by Eden Housing, Inc., all of the units are reserved for those earning between 30 and 60 percent of the area median income.

The development consists of four buildings oriented along the perimeter of the site, enclosing a

landscaped courtyard. The infill project was developed on a 1.85-acre (0.75-hectare) brownfield and is located along a major commercial corridor.

A popular amenity at Sara Conner Court, the courtyard features a playground, benches, picnic

tables, and grills for residents. Additional shared resources include a community room, a computer lab, and an after-school program.

The green landscaping features at Sara Conner Court include the use of hydrozoning, drought-

resistant plants, and bioswales. Only slightly lower than the surrounding grade, bioswales use natural means—vegetation and soil—to filter out contaminants and allow stormwater to gradually infiltrate the soil rather than run directly off site.

In addition to the environmentally friendly landscaping, the developer incorporated many green

features inside the units, such as energy-efficient appliances, low-VOC paint, and low-emission carpeting.

Sara Conner Court site plan.