Bay Area/ San Jose

Mold, Roaches and $1,000 Fines: Palo Alto Cracks Down on Homeless Housing Hub

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Published on July 23, 2026
Mold, Roaches and $1,000 Fines: Palo Alto Cracks Down on Homeless Housing HubSource: Google Street View

Palo Alto is turning up the heat on one of its key homeless housing sites. The City has reissued code violations at the Opportunity Center, the 88-unit building at 33 Encina Ave. that houses people experiencing homelessness, after inspectors documented mold, water damage, plumbing failures and pest infestations on multiple floors. The latest order comes with firm repair deadlines and the threat of daily fines, following a months-long dispute that began in April when Abode Housing pushed back on an earlier inspection report.

According to Palo Alto Online, the city first issued a notice of violation on April 28 after inspectors found mold and water damage affecting roughly 20 of the building's 88 units, along with problems in hallways from the second through fifth floors. Abode Housing appealed that notice on May 1 and asked for unit-specific reinspections, which prompted city staff to restart inspections in mid May to create a fresh baseline. A superseding notice issued on July 6 reflects those newer findings and sets updated timelines for repairs.

What inspectors found

City inspection reports detailed a grab bag of problems that residents would rather not live with. Inspectors documented cockroaches in multiple units, fruit flies, a sink basin pulling away from a wall, a bathtub that was not sealed and holes in drywall, as reported by the Palo Alto Daily Post. They also noted bathroom baseboards and floor finishes peeling from water damage and rot in several apartments. As part of the follow-up effort, the city inspected 31 units and several common areas in June.

Deadlines and penalties

The superseding notice sets a July 27 deadline to wrap up all water-damage and plumbing repairs and an August 5 deadline to resolve pest issues, with $1,000 per-day fines on the table if work drags past those dates, Palo Alto Online reports. City staff told reporters that most water damage and mold concerns were already moving through the building permit process when the new notice went out. The reissued enforcement order replaces, rather than stacks on top of, the April notice and is meant to capture the updated inspection results.

Abode's response

Abode Housing says it is actively working to fix the problems and that many repairs are already in progress. CEO Vivian Wan told the Palo Alto Daily Post she is confident that we'll correct all the issues and said plumbing work should be mostly finished by the end of the month. Abode's property management director has disputed some of the earlier findings and is pushing for unit-specific reinspections while the nonprofit lines up permits and contractors.

Permits and next steps

Many of the bigger jobs, such as addressing structural water damage and mold, require building permits and contractor oversight, which the City typically manages through its Development Center and permit process. Data from the City of Palo Alto shows how permits are used to approve and track repair work, and officials have stressed that getting those permits in place is key to resolving lingering issues. If required work is not completed by the stated deadlines, the city can seek administrative fines and take additional enforcement actions under its code.

Why this matters

The Opportunity Center is a long-standing pillar of Palo Alto's safety-net housing, providing 88 affordable units and on-site services for residents, according to Abode Housing. Keeping the building habitable without forcing people out is a central concern for both advocates and city staff, and the current enforcement effort is a test of whether that balance can hold under tight repair deadlines. City officials and Abode representatives say they will continue coordinating inspections, permits and on-the-ground repair work in the coming weeks as those dates draw closer.