Oakland Sets Aside Millions For Affordable Housing Projects
Oakland just committed $18.6M to support six affordable housing projects. The decision was made to shore up gaps ranging from $1M to $6M for six projects if the federal government cuts corporate taxes, the East Bay Times reports. The funds will come from Oakland's portion of Alameda County's Measure A1, which was approved by voters last November. Oakland previously received about $50M for affordable housing as part of California’s cap-and-trade fees in 2016.
About 421 affordable housing units make up the six projects, with 365 units for very-low- to moderate-income households and 195 available to Section 8 housing vouchers.
The funding would help compensate corporate investors who might lose tax benefits with potential changes to the tax code. City officials said decreasing corporate taxes 15% to 20% will lower available federal low-income tax credits, which developers may apply for and sell to investors.
The estimated funding gap for Alameda County would be $25M, of which Oakland’s amount would be $18.6M, the exact amount the city council set aside for the affordable housing projects. The Low Income Housing Tax Credit has funded 90% of affordable housing throughout the nation since 1986.
Of the money allocated, $6.3M will go toward the Fruitvale Transit Village Phase 2 A at 1194 35th Ave. The 94-unit project developed by The Unity Council will offer 66 affordable units.
Other allocations include:
- $4.2M for the 32-unit Camino 23 (26 affordable units),
- $2.7M for the 70-unit Embark Apartments at 2126 Martin Luther King Jr. Way (61 affordable units),
- $2.5M for Coliseum Connections, which will develop 110 units at 73rd and Snell streets,
- $1.9M for an 87-unit complex at 3706 San Pablo Ave. (15 affordable units) and
- $1M for the 28-unit Redwood Hill Townhomes near Mills College (27 affordable units).