A BART parking lot next to the El Cerrito Plaza station will be replaced with 70 affordable apartments, funded by a $39 million state grant announced this week.

The project transforms underused transit agency land in a city where median home prices have climbed past $850,000, putting homeownership out of reach for most working families. El Cerrito, sandwiched between Berkeley and Richmond in the East Bay, has become one of the region's last semi-affordable BART-accessible communities.

The grant from California's Strategic Growth Council covers not just housing but a network of improvements around the station: over a mile of new bike lanes running east-west, 2,350 feet of accessible sidewalks, new bus shelters, and traffic calming measures. The funding also pays for upgrades to a BART electrical substation to improve train reliability.

At more than $559,000 per unit, the project reflects the sky-high cost of building affordable housing in the Bay Area, where even subsidized development requires massive state investment to pencil out. The money comes from California's push to link housing production with climate goals by concentrating development near transit, reducing car dependence in a state that needs to cut vehicle miles traveled by 25% to meet its 2045 carbon neutrality target.

Partners include the Construction Industry Workforce Initiative for job training, Bike East Bay for cycling infrastructure, and a city-run rental assistance program.

Construction timelines have not been announced. The Strategic Growth Council will oversee the grant.