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The Housing Advisory Commission considered loan requests Thursday for two housing projects that would increase the affordable housing stock by 43 units. 

Affordable Housing developers Jubilee Restoration and Resources for Community Development, requested $379,000 for the purchase of an empty lot at 2575 San Pablo Ave. Their proposed project is for 25 new units of affordable senior housing. 

The other loan request for $737,530, by Affordable Housing Associates, is for an existing 19-unit apartment building at 2500 Hillegass St. If AHA receives the loan, the units will be transformed, over an estimated two-year period, into section 8 housing as the current tenants move out. Section 8 is a federal housing program that gives needy families monthly checks for as much as two-thirds of their rent. 

The developers were requesting funds from the state-funded Housing Enabled by Local Partnerships program. HELP projects approved by HAC are then forwarded to the city manager for approval. 

The commission unanimously approved Jubilee’s and RCD’s request but sent AHA’s request back to a subcommittee requesting more documentation and clarification.  

HAC Chair Daniel Rossi said he was unsure what the social benefit of the project was. “Unless there’s a imminent threat of conversion or the rents getting jacked up,” he said. 

AHA project manager Benny Quan said about half of the tenants are over 50 and the others are recent graduates or young professionals. He said most of the current tenants would likely move out within the next two years. 

“Young professionals tend to be transient and as they move out, the units would be made available to section 8 tenants and those earning 50 percent of median income.” 

AHA Director Ali Kashani said the organization has already secured a loan for 70 percent of the purchase price from the Bank of Alameda. AHA has also requested HELP funds for the remaining 30 percent plus additional funds for moderate property improvements, Kashani said. 

“The Bank of Alameda was a great help in getting us loan approval quickly and giving us a very favorable interest rate,” he said. 

The commission sent the loan request back to a HAC subcommittee until a termite report can be completed with the request AHA present the social value of the project in more compelling terms. 

“This puts us in a bit of bind with the seller,” Kashani said. “We will have to re-negotiate the closing date.” 

The commission approved the Jubilee and RCD loan for the entire purchase price of a vacant lot at 2575 San Pablo Ave. despite concerns of Commissioner Eugene Turitz who questioned Jubilee’s ability to complete three other projects the developer already has on its plate. 

Turitz said the other projects don’t seem to making progress and questioned the developer’s “capacity” to complete the proposed 25 units at 2575 San Pablo Ave.