East Palo Alto Opportunity to Purchase Act (EPA OPA)

Updates

12/7/2023 Update: On December 5, 2023, City Council voted (3-2) against the second reading of the ordinance, titled East Palo Alto Opportunity to Purchase Act (EPA OPA).

11/30/2023 Update: Join the City Council meeting on Thursday, December 5, 2023 at 6:30pm or soon thereafter for the second reading of the draft ordinance. The meeting agenda will be published at: https://www.cityofepa.org/citycouncil/page/agenda-and-minutes. Join in-person at the City Hall or virtually via Zoom link here: Link. View the proposed EPA OPA Ordinance here: Link

11/8/2023 Update: At the November 7, 2023 City Council meeting, City Council voted (3-2 vote) to introduce an ordinance, titled the East Palo Alto Opportunity to Purchase Act (EPA OPA), that applies to both single-family and multi-family housing, with the following additional revisions: remove language to ensure consistent timelines; removal of reference to “Notice Period”; removal of recordation requirement in favor of a notarized seller declaration before close of escrow; clarify effective date of ordinance to mean the sooner of Council adoption of the administrative guidelines by resolution, or 60 days after date of the second reading; authorize adoption of Administrative Guidelines by resolution; adding “as applicable by law” where needed; limiting penalties for violations of ordinance for non-willful violations to a maximum of $15,000 and maintaining penalties as drafted in cases of willful violations “as determined by a court of law”; and adding an evaluation of the ordinance after two years from the effective date.

11/1/2023 Update: Join the Public Hearing discussion on a new draft East Palo Alto Opportunity to Purchase Act (EPA OPA) ordinance on November 7, 2023. You can join in-person at the City Hall or virtually via Zoom at: https://us06web.zoom.us/j/88060621033. View the meeting agenda at: https://www.cityofepa.org/citycouncil/page/agenda-and-minutes.

10/25/2023 Update: City Council will hold a Public Hearing discussion on a new draft East Palo Alto Opportunity to Purchase Act (EPA OPA) ordinance on November 7, 2023.

10/17/2023 Update: An updated draft Ordinance is not yet available. To view the latest City Council direction on the draft policy, please see: Link to March 1, 2022 City Council Meeting (last Ordinance Council considered is attached to staff report) and Link to October 3, 2023 City Council Meeting.

9/28/2023 Update: The EPA OPA meeting has been rescheduled to Tuesday, October 3, 2023. The item will most likely be discussed starting after 8pm, depending on other agenda items. Please join in-person at the City Hall or virtually via Zoom at: https://us06web.zoom.us/j/86285195342. View the meeting agenda at: https://www.cityofepa.org/citycouncil/page/agenda-and-minutes.

9/26/2023 Update: Our Council meeting was cancelled due to a power outage. To view future agenda updates, visit https://www.cityofepa.org/citycouncil/page/agenda-and-minutes.

8/11/2023 Update: The City held a policy overview on August 10, 2023. See details below.

7/19/2023 Update: The City Council will hold a Study Session discussion on a new draft East Palo Alto Opportunity to Purchase Act (EPA OPA) policy in September or October 2023. To view past City Council meetings, visit: http://eastpaloalto.iqm2.com/Citizens/calendar.aspx. You may submit public comments by emailing housing@cityofepa.org.

Other Updates

See other new updates under "City Council Meetings," "Past Meetings, and "Supporting Documents." Future City Council meeting agendas can be found at: www.cityofepa.org/citycouncil/page/agenda-and-minutes. Future City Council meeting agendas (prior to can be found at: http://eastpaloalto.iqm2.com/Citizens/default.aspx.

Background

An Opportunity to Purchase Act ("OPA") policy gives tenants, qualified nonprofits, or jurisdictions the first opportunity to purchase a residential property or assign their right to purchase to another entity when the owner is ready to sell.

Sometimes known as "TOPA/COPA" (Tenant Opportunity to Purchase Act/Community Opportunity to Purchase Act), "DOPA" (District Opportunity to Purchase Act, in Washington, DC), or even "MOPA" (Municipal Opportunity to Purchase Act), these policies are intended to prevent displacement and promote community stability by providing pathways to homeownership and a mechanism to keep rental housing affordable.

Partnership for the Bay's Future Policy Grants

On June 4, 2019, via Resolution No. 5128, the City Council authorized the City Manager to submit an application to the Partnership for the Bay’s Future for a Challenge Grant for Housing Protection and Preservation (“Challenge Grant”). City Council directed staff to seek a Challenge Grant award to research a Community Land Trust (“CLT”) and related policies to create long-term affordable housing opportunities in East Palo Alto.

The City applied for the Challenge Grant in August 2019, in partnership with East Palo Alto Community Alliance and Neighborhood Development Organization (“EPACANDO”), Preserving Affordable Housing Assets Long Term, Inc. (“PAHALI”), Youth United for Community Action (“YUCA”), and Community Legal Services in East Palo Alto (“CLSEPA”) (collectively, the “Community Partners”). East Palo Alto was selected to be one of the ten jurisdictions in the inaugural Challenge Grant cohort in Fall 2019.

The Challenge Grant project scope included three main goals: (1) Establishing a sustainable funding source for housing preservation; (2) launching a preservation model centered on a CLT to acquire, rehabilitate, and redevelop properties; and (3) designing and supporting the passage of a local preservation ordinance- a Tenant Opportunity to Purchase Act/Community Opportunity to Purchase Act (“TOPA/COPA policy”).

On July 20, 2021, via Resolution No. 103-2021, the City Council authorized the City Manager to submit an application to the Partnership for the Bay’s Future for a Breakthrough Grant for Housing Production and Preservation (“Breakthrough Grant”), for the purposes of continuing this work and implementing a TOPA/COPA policy if adopted.

The City applied for the Breakthrough Grant in July 2021, in partnership with the same grassroots organizations. East Palo Alto was selected to be one of the eleven government entities in the Bay Area. The grant began in June 2022 and will continue to May 2024.

City Council Priorities 2021-22

In March 2021, the City Council adopted advancing TOPA/COPA and other homeownership opportunities as one of its 2021-22 priorities.

City Council Meetings

On October 5, 2021, the City Council considered an OPA ordinance. Staff presented an overview of the concept of OPA policies, which include Tenant Opportunity to Purchase Act (TOPA), Community Opportunity to Purchase Act (COPA), and District Opportunity to Purchase Act (DOPA), including the key elements of OPA ordinances. Staff provided a summary of the community outreach process and community input received and made recommendations for an East Palo Alto OPA.

On November 16, 2021, the City Council held the first public hearing on an East Palo Alto OPA ordinance. Staff presented a draft ordinance based on City Council feedback from the October 5, 2021 meeting. City Council continued to make changes to the ordinance and hold additional public hearings on December 7 and December 22.

At the December 22, 2021 City Council meeting, City Council directed staff to return with an amended ordinance on January 18, 2022. City Council then voted on January 18 to move the public hearing to Tuesday, January 25, 2022. At the January 25 City Council meeting, City Council reviewed an amended Ordinance, heard an economic analysis report from David Rosen & Associates, and received further clarification on Qualified Nonprofits and foreclosures based on City Council feedback on December 22, 2021.

On March 1, 2022, City Council received further clarification on the applicability of the ordinance, staff analysis on the potential impact of the right of first refusal on home prices, and public comment. City Council directed staff to continue to study the Ordinance, and to introduce a revised Ordinance on a later date. Learn more about City Council's direction here.

On March 21, 2023, City Council discussed affordable housing preservation and homeownership funding sources and directed staff to set a future date to discuss and study the policy before the end of Fiscal Year 2022-2023. A community forum was held on May 30th and a Policy Discussion was held on June 13th.

On July 18, 2023, City Council discussed the policy and directed staff to return during a Study Session with a draft ordinance removing the Right of First Refusal (ROFR) on single-family homes, and adding a clause regarding 1031 Exchanges. City Council also requested a list of options to further support tenants living in single-family homes. The City Council Study Session will be held after August recess.

On October 3, 2023, City Council directed staff to prepare two separate ordinances each addressing different rightsholders (Tenants, QNPs, and City) and property types (single-family and multifamily properties). Council also directed staff to consider means testing and timeline adjustments in the draft Ordinance, as well as additional housing preservation options. Staff will present additional housing preservation strategies in the upcoming 2024-2029 Affordable Housing Strategy Update before the end of the year.

City Council meeting agendas are posted at: https://www.cityofepa.org/citycouncil/page/agenda-and-minutes (note NEW meeting agendas link).

The video and staff reports for the City Council meetings can be found by following the links below:

Link to October 5, 2021 City Council Meeting
Link to October 5, 2021 PowerPoint Presentation
Link to November 16, 2021 City Council Meeting
Link to November 16, 2021 PowerPoint Presentation
Link to December 7, 2021 City Council Meeting
Link to December 7, 2021 PowerPoint Presentation
Link to December 22, 2021 City Council Meeting
Link to January 18, 2022 City Council Meeting (meeting postponed)
Link to January 25, 2022 City Council Meeting
Link to January 25, 2022 PowerPoint Presentation
Link to March 1, 2022 City Council Meeting (draft Ordinance attached to staff report)
Link to March 1, 2022 PowerPoint Presentation
Link to July 18, 2023 City Council Meeting
Link to July 18, 2023 PowerPoint Presentation
Link to October 3, 2023 City Council Meeting
Link to October 3, 2023 PowerPoint Presentation
Link to November 7, 2023 City Council Meeting (draft Ordinance attached to staff report)
Link to November 7, 2023 PowerPoint Presentation
Link to December 5, 2023 City Council Meeting

Frequently Asked Questions

For responses to frequently asked questions about EPA OPA, see: EPA OPA FAQs below under "Supporting Documents."

Past Meetings

Community Meeting - December 1, 2021

To give the public an additional opportunity for input and per Council's direction, on Wednesday, December 1, 2021 from 6-9pm a community meeting was held on the potential East Palo Alto OPA. Staff presented on the ordinance, took questions from participants, and solicited public input.

This community meeting took place on Zoom and had simultaneous Spanish interpretation provided. The video and presentation can be found by following the links below:

Community Forum - May 30, 2023

A community forum facilitated by PCRC (a neutral party) was held on May 30, 2023 at Cooley Landing. Over one hundred homeowners, tenants and property owners participated. The presentation can be found by following the link below:

Policy Discussion - June 13, 2023

To give the public an additional opportunity for ask clarifying questions on the policy, a policy discussion faciliated by PCRC (a nuetral party) was held virtually on Tuesday, June 13 from 6-8pm. Over one hundred homeowners, tenants, property owners, and real estate agents participated. The presentation can be found by following the link below:

Link to Policy Discussion Presentation Slides
Link to view video recording in English (currently unavailable)
Enlace para ver video de la junta en español
PCRC Report on Meeting Outcomes

Flyer for May 30 and June 13 EPA OPA Meetings

Policy Overview - August 10, 2023

Updated overview on the new proposed East Palo Alto Opportunity to Purchase (EPA OPA) policy components, as a follow-up to the changes recommended at the July 18, 2023 City Council meeting. The presentation can be found by following the link below: