Oakland awarded $40.7 million in Infill Infrastructure Grant Catalytic Funding from the State of California

Oakland, CA – The City of Oakland is one of seven California cities to receive an award from the State Housing and Community Development department through its Infill Infrastructure Grant Catalytic (IIGC) program.

Oakland’s grant of $40,769,344 will support the development of 673 housing units affordable to residents who earn between 20% and 80% of the area's median income. Funds will be used to support critical predevelopment and infrastructure activities including:

  • Vegetation clearing and erosion control;
  • a new sewer main, realignment of existing utilities and updating of existing utility lines;
  • roads enhancements with new surfacing, curbs, gutters, and sidewalks; and
  • capital improvements via storm water management, landscaping, and environmental mitigation and remediation.

This funding will help underserved neighborhoods build greener, more walkable communities and allow residents to live closer to work and other key amenities.

“I am grateful to the State for this grant and to the Oakland Housing & Community Development team that worked hard to secure these critical funds," said Mayor Sheng Thao. "In order to address homelessness, we must create more affordable housing, which is why my budget includes the largest investment in affordable housing in city history. This $40M grant will help advance our goal of increasing the number of affordable, permanent housing units available to Oaklanders, in an equitable and environmentally responsible way.”

The IIGC award will support the development of the following Oakland affordable housing projects and corresponding units:

  1. Lake Merritt BART Senior Housing – 97 units
  2. 285 12th Street – 65 units
  3. 121 E. 12th Street – 91 units
  4. Liberation Park Market Hall, Cultural Hub and Residences – 119 units
  5. West Oakland BART Transit Oriented Development – 101 units
  6. Villa Oakland – 105 units
  7. Villa Fruitvale – 105 units

“State funding programs, especially new ones, are not easy to navigate, but the City of Oakland stepped up and met the challenge by submitting a thoughtful application that responded to key criteria like number of housing units, depth of affordability, and housing density, said Craig Shields, Chief of Climate Investments Branch, State of California’s Housing and Community Development Department. “The City was well prepared for this application by achieving Prohousing status just about a year ago, establishing city ordinances that facilitate conversion of underutilized buildings to housing, having a compliant housing element, and making land available for housing through the Surplus Lands Act.”

"As an Oakland resident, I have seen how housing and infrastructure pose a daily challenge, especially for vulnerable communities. The recent state grant offers hope and progress by funding more affordable housing and infrastructure improvements, said Councilmember Kevin Jenkins. "This grant will help build a more sustainable, inclusive, and thriving Oakland, while ensuring that everyone has access to affordable housing. It will play a vital role in shaping Oakland's future, and we are confident we can make the most of it."

“This important state grant will support the kind of senior and family housing that are essential for preventing displacement in Oakland. I am especially thrilled to see that three projects in District 2, near the Lake Merritt BART Station, will be funded,” said Council President and District 2 Councilmember Nikki Fortunato Bas. “In fact, this investment means that one of the projects — at E 12th St. and 2nd Ave. — will break ground early next year. The East 12th Street and Liberation Park sites are on surplus City of Oakland land. It will continue to be a key Council priority to use public land for public benefit.”

“We are thrilled with this large investment in our work. The State continues to recognize and support Oakland’s aggressive development strategy to build housing affordable to very low-income households and people exiting homelessness,” said Emily Weinstein, Oakland's Director of Housing and Community Development.

The IIGC award follows the City’s successful application in early 2023 to secure $2.39 million from the State’s Prohousing Incentive Pilot Program grant, as well as a successful application for a $10 million Regional Early Action Planning (REAP) grant, for a total of $53 million in funds this year from the State

Homelessness and housing affordability are top priorities for Oakland residents. To address these challenges, the City is carrying out a multi-pronged approach. The Housing and Community Development Department is addressing housing affordability issues through its “3P” framework: Protect Oaklanders from displacement; Preserve the existing affordable housing stock; and Produce new, deeply affordable housing units. The Human Services Department is working to provide transitional housing and supportive services to unsheltered residents. And the Planning and Building Department, in partnership with other departments, is updating the City’s Housing Element to provide a plan to accommodate more than 26,000 new units of housing over the next eight years, in accordance with state requirements.

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Posted: September 11th, 2023 12:38 PM

Last Updated: October 18th, 2023 3:55 PM

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