Council Backs $800,000 Home Repair Grants as Candidate Forum Feud Flares

East Palo Alto is preparing to spend $800,000 in hotel-tax revenue to fix the homes of low-income residents. On Sept. 15, 2026, the City Council gave staff consensus direction on how the program will work, with no formal vote. A sharper fight surfaced late in the night over city staff support for a candidate forum attached to the mayor's State of the City address, weeks before an election.

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• $800,000 major home repair program takes shape: grants up to $34,500 for up to 22 households
• Candidate forum dispute: two candidates and two councilmembers object to pairing it with the mayor's Oct. 10 address
• $106,249 senior repair program launches alongside $8M in electrification funds citywide
• Public Works commission seats filled after a 4-1 vote and a two-ballot alternate race

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Repair Grants Get Their Rules

The basics: The transient occupancy tax (TOT) is a tax on hotel stays. Mayor Webster Lincoln noted that "10% of TOT is restricted for housing, and this comes from that pot."

Where things stand: The city has no major home repair program today. Staff proposed one for households at 80% of area median income (AMI) or below. It would cover roofs, electrical, HVAC, plumbing and accessibility work, run by an outside administrator chosen through a request for proposals (RFP) for one year with two optional extensions.

"The program will provide up to $30,000 in funding per household for up to 22 households with a 15% administrative cost, so totaling about $34,500 per household," said Housing Project Manager Yahaira Morales.

Staff asked council four questions. Council backed staff on all four:

• Eligibility: Staff recommended flexibility to include homes the owner doesn't live in, with renters eligible if the owner consents.
• Priority: Applications would be first-come, first-served. If the program is oversubscribed, homes with below-market-rate (BMR) deed restrictions and code-enforcement cases would go first.
• Structure: Aid would be grants, not loans, because loans carry legal and servicing costs.
• Funding: $800,000 for 22 households, with 15% for administration.

The other side: Eligibility drew the most debate. "I think we should prioritize homeowners living in their primary residence," said Lincoln. Councilmember Carlos Romero said he could accept including renters in substandard housing, because rent limits would be recorded on the property and the grant repaid when the home is sold. Councilmember Martha Barragan declined to comment.

Rewarding violators? One councilmember said he supported staff's recommendation but worried the code-enforcement preference signals "violate the law and we'll give you money."

Staff pushed back. "What we hear is that a lot of homeowners don't have the money to actually resolve these code enforcement issues," said Housing and Economic Development Manager Karen Camacho. The city manager clarified that the program targets Tier 1 structural and safety problems, not Tier 3 nuisance cases.

A heated exchange followed between two councilmembers. They disagreed over whether a prior council told code enforcement to ignore Tier 3 violations during COVID. Lincoln said deferred maintenance can become a health and safety risk that displaces residents.

Two public commenters argued the program should look at landlords. Public commenter Gail Wilkerson Dixon said landlords are already required to rehab properties periodically. Public commenter Mario, speaking through an interpreter, argued that repairs raise property values and tax revenue, and that tenants cause much of the damage.

Decisions and stakeholder impacts: Council gave direction without a formal vote. Low-income homeowners gain a new source of repair money. BMR owners and households with serious code cases get priority if demand runs high. Renters can benefit only if their landlord opts in.

What's next: "Staff plans to release an RFP this month with a deadline in October. And we plan to come back to council for consideration in December before the end of this year," said Morales.

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Candidate Forum Sparks Neutrality Fight

Why it matters: City staff are handling logistics for the mayor's State of the City address. The mayor wants a candidate forum to be part of that event. Critics say the pairing suggests official city endorsement shortly before an election.

Where things stand: During public comment, two candidates raised the issue. Deborah Lewis-Virgis and Gail Wilkerson Dixon said they had not been notified about the forum and feared it implied a city endorsement. Lewis-Virgis also cited the appearance of impropriety and possible use of city funds. Romero asked staff to report back.

The issue returned during council reports. Vice Mayor Ruben Abrica said the combined event looks official and leaves unclear who is organizing it. "In my opinion, it's not a good idea to combine the two," he said.

City Manager Melvin E. Gaines said staff provide only the venue, audiovisual support, food and public notice. He said the address is set for Oct. 10 and that "the mayor has asked for it to be part of his State of the City address."

"If this council has a concern about the candidate forum following it, that's something that this council would need to kind of state," Gaines added.

The other side: Romero objected strongly and called the event partisan. "I am requesting that this item be agendized before this particular forum happens," said Romero, who also criticized the mayor's demeanor.

Decisions and stakeholder impacts: Council took no action because the item was not on the agenda. "We'll consider that at our agenda setting committee," said Lincoln. Until then, staff support for the Oct. 10 event continues as planned. That leaves candidates and council critics without a formal answer.

What's next: Watch whether the agenda-setting committee places the forum on a council agenda before Oct. 10.

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Senior Repairs Launch, Electrification Money Flows

Where things stand: Climate Resilient Communities (CRC) presented the city-funded Minor Home Repair Program. This was an informational item with no vote.

"We've served more than 300 families here in East Palo Alto with repairs that range from installing solar panels to new roofs to replacing carpets or replacing windows," said Violet Saena, founder and executive director of CRC. Her organization has run its Resilient Homes program since 2016.

The program details:

• Budget: a city grant of $106,249, which staff described as general funds replacing spent American Rescue Plan Act (ARPA) money.
• Scale: roughly $16,000 per home, enough for about five to six homes.
• Priority: seniors, BMR homeowners and homes with code violations.
• Eligibility: "You have to be considered low income. So that's 80% AMI or less," said Maya, CRC program manager.

The bigger pot: CRC staffer Jackie enrolls households in the Equitable Building Decarbonization program, which has a quota of 25 homes with 13 in the pipeline. Councilmember Mark Dinan, who sits on the Westlight/Peninsula Clean Energy board, reported the funding. "The board voted Westlight $2.4 million of Westlight funds. The state funds are $5.6 million for a total of $8 million for East Palo Alto," he said.

Dinan tied replacing gas appliances to asthma. "It's because of bad indoor air quality from leaky stoves and dust and mites and things like that," he said.

The other side: Romero questioned the operating model, in which the same CRC contractor scopes the work and then performs it. "There just seems some moral hazard here in the equation where the contractor could indeed inflate prices and what have you," he said.

Maya responded that she "would be willing to troubleshoot ways to cross-check that scope with you all if needed to in the future." Romero said he planned to raise the issue with the county.

Decisions and stakeholder impacts: Low-income senior homeowners gain free repairs and appliance swaps, while renters remain harder to reach. Barragan asked how families can enroll and what happens if an elderly owner dies mid-project.

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Avendaño, Zhu Join Public Works Commission

Where things stand: Council interviewed five applicants for one regular seat and one alternate seat on the Public Works and Transportation Commission. The applicants were Emmanuel Jimenez, Betsy Yanez, Joanie Jimenez, Rafael Avendaño and Ray Zhu. Their priorities included pedestrian crossings, parking enforcement, speed humps, protected bike lanes, sidewalks and parks.

Before the interviews, Romero objected to taking this item ahead of the home repair item, saying it would disadvantage people listening from home. Lincoln reverted to the original order.

The candidates' pitches: "I want to be a commissioner … that brings in opportunities like, for example, grants that allow us to go after those sidewalks, that allow us to go after the bike lanes," said Avendaño.

"It would be great if we could have some kind of physical barrier separating car traffic and bike traffic," said Zhu.

Decisions and stakeholder impacts: Council voted by paper ballot.

• Regular seat: Avendaño won (For: 4, Against: 1, Absent: 0). Abrica, Barragan, Dinan and Romero backed him. Lincoln voted for Yanez.
• First alternate ballot: Yanez won 3-2, with Abrica, Lincoln and Romero in favor. Dinan and Barragan voted for Zhu. Yanez then declined the seat. "I'd rather step down and give opportunity to people who have more qualification than I," said Yanez.
• Second alternate ballot: Zhu won 3-2, with Abrica, Dinan and Barragan in favor. Lincoln and Romero each voted for a Jimenez applicant.

The new appointees bring a focus on traffic calming and bike and pedestrian safety to a commission that advises the city on parking and street policy.

What's next: More commission vacancies open in May.

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Minor Items

• Internal control report: Council approved the city's first annual internal control report 5-0 after Romero pulled it from consent to request periodic outside review. Staff said they will bring back an option for external testing.
• Consent calendar: Approved 5-0, including a Woodland Avenue design contract not to exceed $818,980.80 and new parking zones.
• Successor Agency and Sanitary District: The Successor Agency approved a $162,995 payment to the San Mateo County Community College District 5-0. The East Palo Alto Sanitary District board accepted its July cash disbursement report 5-0 after a rounding question was answered.
• Sister city pitch: Victor Wang, of Sister City International, proposed a sister-city relationship with Dazhou District, Chongqing, which would be the city's second after Tonga. The mayor and Barragan were supportive, another member cited resource limits, and no vote was taken.
• Public comment: Luis Rosas urged outreach to the landlord of Brian Jenkins, a 68-year-old tenant facing eviction. Ofelia Bello flagged an urgent tenant case on East O'Keeffe. Yanez asked for a site to distribute free food.

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Looking ahead: The home repair RFP is due out in September, with an October deadline and a return to council in December. The State of the City address is set for Oct. 10. The SamTrans Reimagine Dumbarton presentation scheduled for this meeting did not occur.