To help address Oakland’s housing crisis, the State of California recently awarded the City of Oakland approximately $215 million to support the development of 547 highly affordable rental homes. The awards came from the California Department of Housing and Community Development (CA HCD) and the California Strategic Growth Council.
These developments will serve Oakland households who earn between 20% and 60% of the city-wide Area Median Income (AMI), including 224 units of Permanent Supportive Housing/Homeless Units that would house approximately 280 people currently vulnerable to help the homeless crisis of the city to cope with.
“These funding awards demonstrate the power to leverage the city’s investments in affordable housing to achieve greater government funding for housing in our community,” said Oakland Mayor Libby Schaaf. “With each new funding commitment, each new project, we are able to offer more low-income Oaklanders a worthy home.”
“We have a model that works, competent community partners, and an established track record of delivering projects that are competitive and leverage our limited city funds to bring government investment to Oakland,” he said Shola Olatoye, Director of Housing and Community Development. “We are grateful that the State of California has awarded Oakland these competitive grants in recognition of the significant need for affordable housing, a testament to the positive impact affordable housing development is having on Oakland residents who have been hardest hit by the housing crisis are.
California Housing Accelerator Awards
Four projects with 325 affordable new construction units were awarded with just under 165 million US dollars California Housing Accelerator program, a new state funding program designed to “solve” a series of statewide developments designed to provide highly affordable units that have failed to secure the last rounds of tax credits.
These projects will all begin construction within the next six months:
- 7th & Campbell – 78 affordable units, $42.98M (Oakland & the World, Inc. and McCormack Baron Salazar)
- Ancora square – 66 affordable units, $38.62M (Satellite Affordable Housing Associates)
- Foon Loco East – 123 Affordable Units, $57.43M (MidPen Housing Corporation)
- West Grand & Brush – 58 affordable units, $25.68M (East Bay Asian Local Development Corporation)
Program for multi-family houses
One project has received funding under CA HCD’s Multi-Family Housing Program, a highly competitive government funding source that supports the development of highly affordable rental housing:
- Friendship Senior Apartments – 49 affordable units, $10.5M (Community Housing Development Corporation)
This funding positions the project to qualify for the upcoming Tier 2 funding process for projects under the California Housing Accelerator program and to begin construction next winter.
Awards for affordable housing and sustainable communities
Two other Oakland projects received state grants totaling ~$40 million Affordable housing and sustainable communities Program. Funding from this program aims to reduce California’s carbon emissions by “making it easier for Californians to drive less by ensuring that homes, jobs and important destinations are accessible by walk, bike and commute.” accessible by local public transport” and “land use and urban planning are rethought”. a path that brings housing closer to jobs, amenities and low-carbon transportation.”
These projects have a longer lead time to secure additional funding and break ground, but this brings them much closer to reality.
- Longfellow corner – 76 Affordable Units, $19.58M (Community Development Resources)
- Lake Merritt BART senior housing – 97 affordable units, $21.41M (East Bay Asian Local Development Corporation)
Both projects are scheduled to start construction in 2023.
These highly competitive funding programs represent a partnership between the City of Oakland, local housing nonprofits, and the State of California. The grants leverage significant outside funding to bring much-needed affordable housing online to Oakland’s low- and ultra-low-income households.