SRO Housing Proposal on Bay & University

Mark Dinan -

On Thursday, December 18, I attended a community meeting at East Palo Alto City Hall regarding a new proposal from Swenson Development and Construction. They are planning a 135-unit Single Room Occupancy (SRO) development at the corner of Bay Road and University Avenue, adjacent to the old post office.

Project Specifications

  • Capacity: 135 housing units
  • Height: 50 feet
  • Parking: 67 total stalls
  • Cost Efficiency: Approximately $250k development cost per unit

Affordability and Impact

This project represents "naturally affordable" housing, with projected rents of roughly $1,500 per month. This is comparable to the current cost of renting a single room in an existing East Palo Alto home.

There is a critical regional need for SRO housing to help alleviate the current shortage. While this style of living isn't for everyone, thousands of local residents would prefer a modern, clean, and private SRO unit over renting a bedroom in a shared single-family house.

Transportation and Trade-offs

To maintain lower rents, the project prioritizes density over parking. Most residents will likely utilize alternative transportation—such as e-bikes, public transit, scooters, or walking—rather than private vehicles. While the limited parking may be a deterrent for some, many others will find the trade-off worthwhile to secure affordable local housing and avoid a grueling commute from the East Bay.

You can look at the complete pre-application proposal here:

https://www.cityofepa.org/sites/default/files/bay_rd_apt_preliminary_review_set.pdf

This project has a ways to go with permitting before ground is broke on new construction, but the project lead was optimistic that they would start construction in 2026, and complete sometime in 2027. Construction timelines are always unpredictable, but let's see what happens in the coming year.