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Oakland City Council
July 26, 2022

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July 26, 2022
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Oakland City Council
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2021 Housing Element Annual Progress Report (APR)W i l l i a m G i l c h r i s t, DirectorPl anning & Building DepartmentS h o l a O l a to y e, DirectorHousing and Community Development Department Purpose and Need•The purpose of the APR is to document the implementation of housing programs and to assess the City’s progress toward meeting its Regional Housing Needs Allocation (RHNA) during the current 8-year housing element cycle.•The APR is required pursuant to the California Housing Element law, Section 65400 of the California Government Code. •The APR must be submitted to the California Office of Planning and Research (OPR) and to the California Department of Housing and Community Development (HCD) by April 1st of each year, using forms and definitions adopted by HCD.

In accordance with Policy 6.5 of the 2015-2023 Oakland Housing Element, the City conducted a public hearingbefore the City’s Planning Commission on June 1st and is conducting an additional hearing before the Community and Economic Development (CED) Committee today to review and consider the APR.

2021 Production of New Housing Units At A Glance
1,776•Housing units proposed within complete applications submitted to the Planning Bureau.Proposed 2,838• Housing units that received all the required land use approvals necessary for the issuance of a building permit.Entitled 1,667• Housing units that were issued a building permit. This means the project may now begin construction.Permitted 4,135• Housing units that passed their final inspection and are now ready for occupancy. Completed

HOUSING AFFORDABILITY IN CONTEXTBasic Definitions
The 2022Area Median Income (AMI) for a four-person household in Alameda County is $142,800.Sources: 1) California Department of Housing and Community Development Department. "State Income Limits for 2022. https://www.hcd.ca.gov/docs/grants-and-funding/inc2k22.pdf The AMIis the midpoint of an area's income distribution. This means half of all families in an area earn more than the median and half earn lessthan the median.

Household Affordability Categories*As defined by the California Department of Housing and Community DevelopmentAn Extremely Low-Income (ELI) household earns less than 30percent of AMIA Very Low-Income (VLI) household earns between zero and50 percent of AMI.A Low-Income (LI) household earns between 51and 80percent of AMI. A Moderate-Income household earns between 81and 120 percent of AMI.A Market Rate (Above-Moderate) household earns more than 120 percent of AMI.

Today, if a Four-Person Household in Alameda County Earns an Annual Income of… ELI HouseholdEarns less than $42,850
VLI HouseholdEarns between $42,850 and $71,400
LI HouseholdEarns between $71,401 and $109,600
Moderate-Income HouseholdEarns between$109,601 and $171,350 Market Rate(Above-Moderate)Earns more than $171,351Sources: 1) California Department of Housing and Community Development Department. "State Income Limits for 2022." https://www.hcd.ca.gov/docs/grants-and-funding/inc2k22.pdf New Market Rate & Affordable Units by Phase of Production, 2021 3854443174891,3912,3941,3503,64605001,0001,5002,0002,5003,0003,5004,0004,500 Proposed Entitled Permitted Completed
Affordable (VLI, LI, and Moderate-Income) Market Rate
Number of New Affordable Housing Units by Phase of Production, 2021 0100200300400500600
Proposed Entitled Permitted Completed
VLILI Moderate-Income
Production of Extremely Low-income (ELI) Units, 2020
Entitled• 21Permitted• 101Completed• 163
The APR counts ELI units as a subset of new housing units affordable to Very Low-Income (VLI) households. This is because the APR defines VLI as households earning between zero (0) and 50 percent of Area Media Income.

PROGRESS TOWARDS MEETING OAKLAND’S REGIONAL HOUSING NEEDS ALLOCATION (RNHA)

Progress on Meeting Oakland’sRegional Housing Needs Allocation (RHNA) Number of Permitted Units by AffordabilityIncome LevelRHNA*2015 2016 2017 2018 2019 2020 2021Total UnitsRHNA Due% of RHNA Met by Total UnitsVery Low2,059 98 26 247 204 120 193 191 1,079 980 52%Low2,075 30 13 66 85 307 40 125 666 1,409 32%Moderate2,815 0 0 11 48 9 9 1 78 2,737 3%Affordable Subtotal6,949 128 39 324 337 436 242 317 1,823 5,126 26%Market7,816 643 2,082 4,019 4,280 1,727 865 1,350 14,966 0 191%Total14,765771 2,121 4,343 4,617 2,163 1,107 1,66716,7895,126 114% Production of Affordable Housing Units in Multifamily Housing Projects, 2021 3824433174869001,9391,0083,3940%10%20%30%40%50%60%70%80%90%100% Proposed Entitled Permitted Completed
Affordable (VLI, LI, and Moderate-Income)Market-Rate
Production of Accessory Dwelling Units (ADU) and Junior Accessory Dwelling Units (JADU) in 2021 Entitled364
Permitted274
Completed92
An Accessory Dwelling Unit (ADU) – also called granny flats or in-law units – are attached or detached residential units that may be added to a single-family home or multi-family building. You can use an ADU to house friends or family, lease to a rent-paying tenant.A Junior Accessory Dwelling Unit(JADU) –is a small dwelling unit (500 square feet or less) created by converting existing living space (e.g., bedroom, office) within a single-family residence (including an attached garage).

Trends in the Production of ADU & JADU, 2019-2021
050100150200250300350400
2019 2020 2021
EntitledPermitted
Completed
Total Number of New Housing Units Permitted by Calendar Year, 2015-21 7712,1214,3434,6172,1631,1071,6670500100015002000250030003500400045005000 2015 2016 2017 2018 2019 2020 2021Year

HOUSING PRESERVATION
2021 Housing Preservation Table FRehabilitation Activity•71 UnitsAcquisition of Residential Units•47 UnitsTotal Units Preserved•118 Units Affordable Housing Production and Preservation Progress, 2015-2021 0100200300400500600700
2015 2016 2017 2018 2019 2020 2021
RHNA Affordable Non-RHNA Acquisition and/or Preservation of Affordable Oakland Production and Preservation Progress
Note: Non-RHNA (2020) does not include Clifton Hall and the Inn at Temescal as both are counted towards RHNA in 2021 as former motel and hotel conversions to permanent residential use.

YearCategory 2015 2016 2017 2018 2019 2020 2021RHNA Affordable 128 39 324 337 436 242 317RHNA Market 643 2,082 4,019 4,280 1,727 865 1,350Non-RHNA Acquisition and/or Preservation of Affordable *0 0 0 63 155 301 234TOTAL UNITS 771 2,121 4,343 4,680 2,318 1,408 1,901 KEY ISSUES AND FOCUS AREAS FOR 2022 AND BEYONDA Look Forward A New Housing Element for Oakland•2023-2031 Housing Element Update–Will set forth Oakland's housing priorities and goals.–Subject to State Law mandates and deadlines.•Five (5) Overarching Goals to Address the Housing Crisis and Needs of Oaklanders:–Protect Oakland Residents from Displacement and Prevent Homelessness–Preserve and Improve Existing Housing Stock–Expand Affordable Housing Opportunities–Address Homelessness and Expand Resources for the Unhoused–Promote Neighborhood Stability and Health 2023-2031 Housing Element Update: Key Milestones
• Pursuant to State Deadlines• For staff to consider and incorporate comments before submitting to the State Housing and Community Development (HCD) DepartmentFirst Public Review Period: May 12 - June 13 • State Reviews Draft Housing Element• Draft Housing Element will still be available for public comment90-Day Review Period: Late June 2022 -September 2022 • 2nd Draft Available for Public Review.November 2022
HCD Project Highlights:•Complete Affordable Projects -(5) City-funded affordable developments with 463 affordable units are under construction. 325 affordable units in 4 State Accelerator projects to start construction within the next 3 months.•Fund Pipeline Projects -HCDD will recommend 5 New Construction NOFA projects for awards of up to $30,561,00 at the June 7thCity Council meeting. If approved, the awarded projects would create 322 new affordable units, of which 133 units would house Oaklanders experiencing homelessness. This fall, 2 new Homekey projects will provide 80 units of housing for Oaklanders experiencing homelessness.•Leverage and Expand Funding -Secured $10M in State LHTF funds in 2020-2021 to issue through New Construction NOFA and secured $22M in Homekey funds for 162 units in 2020, and $26M for 80 units to come online in 2022 (with several more applications pending).•Implement Strategic Action Plan Counciladopted in May 2021 that articulates a unified vision for the department's immediate work in protection, preservation, production and policy and planning through 2023.

LEARN MORETo view the complete 2021 Housing Element Annual Progress Report (APR)please visit:bit.ly/OaklandAPR

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