Council Splits $5M Housing Fund Between Two Developers, Adds Labor Demands

Hercules City Council unanimously voted to divide $5 million in housing successor funds equally between SAHA Housing and Eden Housing, rejecting a waterfront proposal and attaching prevailing wage and apprenticeship requirements to the deals. The decision, reached after a lengthy special meeting debate over three competing projects, advances the city toward state housing mandates while setting a new baseline for worker protections in local affordable housing development.

• $5M in housing successor funds split evenly between SAHA Housing (100 units near Sycamore Crossing) and Eden Housing (senior rehab/new units at Victoria by the Bay), approved 5-0

• Community Housing Works' Bayline waterfront proposal excluded over transit access, building height, and community fit concerns

• Mayor Kelley's motion to award all $5M to SAHA dies for lack of a second, revealing council's preference for hedging bets

• Labor standards — prevailing wages, healthcare, apprenticeship programs — required as part of developer negotiations under AB 2011

• June 2027 deadline looms: more than $2.8M must be committed or reverts to the state

The Hercules City Council convened its third special meeting to decide how to spend approximately $5 million in housing successor funds — money legally restricted to new affordable housing development. Three developers pitched proposals: Community Housing Works' Bayline project on the waterfront, Eden Housing's senior rehabilitation and new units at Victoria by the Bay, and SAHA Housing's 100-unit development near Sycamore Crossing.