AGENDA REPORTTO:Jestin D. JohnsonCity Administrator FROM:William A. GilchristDirector, Planning & Building Emily WeinsteinDirector, Housing & Community Development SUBJECT:General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 DATE:April 28, 2025City Administrator Approval Date: RECOMMENDATION Staff Recommends That The City Council Receive An Informational Report On The City Of Oakland’s General Plan And Housing Element Annual Progress Reports For Calendar Year 2024. EXECUTIVE SUMMARY Pursuant to Section 65400 and 65700 of the California Government Code, the City of Oakland (City) has prepared Annual Progress Reports (APRs) for calendar year 2024 on implementation of the overall General Plan and on the housing-related programs and policies contained in the 2023-2031 Housing Element. This is the second year of reporting on the 2023-2031 Housing Element, which was adopted by the City Council via Resolution No. 89565 C.M.S. on January 31, 2023. The Oakland Housing Element was found by the California Department of Housing and Community Development (State HCD) to be in full compliancewith the State Housing Element Law (Article 10.6 of the Gov. Code) on February 17, 2023. This informational report highlights accomplishments reached in 2024 toward: implementing and updating the Oakland General Plan; implementing City programs and policies adopted in the 2023-2031 Housing Element; and meeting the City’s housing production and preservation goals. While both affordable and market-rate housing saw stable levels of entitlement activity, most housing units that secured building permits and began construction were deed-restricted affordable housing, and most new housing units completed in 2024 were market-rate. This large volume of new market-rate housing completing construction represents the tail end of the pipeline from the late 2010s market-rate housing boom in Oakland, which has added over 12,000 new market-rate units to Oakland’s housing stock over the past five years and likely played a key role in stabilizing market rents since the pandemic. The significant jump in affordable housing receiving building permits and entering construction in 2024 is largely due to Jestin Johnson (May 13, 2025 09:51 PDT)
May 13, 2025
Jestin D. Johnson, City AdministratorSubject: General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 Date: May 27, 2025 Page 2 Community and Economic Development Committee May 27, 2025 investments from Oakland’s Measure U affordable housing bond. Other major housing trends have largely held stable—multifamily construction continues to represent the overwhelming majority of new housing units, but Accessory Dwelling Units (ADUs) remain on their current trajectory of over 200 permitted ADUs per year. The complete 2024 General Plan and Housing Element APRs can be found on the City’s webpage: https://www.oaklandca.gov/documents/housing-element-annual-progress-reports. (Note: The 2024 Housing Element APR contains very large tables that are not suitable for printing and are best viewed electronically. The pertinent content of these tables is stated in this report and attachments.) BACKGROUND / LEGISLATIVE HISTORY California Government Code Sections 65400 and 65700 require that the City prepare and submit annual reports – known as the General Plan APR and Housing Element APR – to the California Office of Land Use and Climate Innovation (State LCI)1 and to the California Department of Housing and Community Development (State HCD) by April 1 of each year, using forms and definitions adopted by State HCD. The General Plan APR must describe progress toward implementing and updating the General Plan each year. The Housing Element APR must describe progress made by the City to implement policies adopted in its Housing Element and to meet the City’s share of Regional Housing Needs Allocation (RHNA). Oakland’s 2024 General Plan APR, submitted to the State LCI on April 1, 2025, reflects progress toward implementing Oakland’s current General Plan. During the 2024 reporting year, the Planning and Building Department launched Phase 2 of the 2045 Oakland General Plan Update, which includes: (1) updating the Land Use and Transportation; Noise; and Open Space, Conservation, and Recreation elements; and (2) creating a new Infrastructure and Capital Facilities Element. Oakland’s 2024 Housing Element APR, submitted to the State LCI and State HCD on April 1, 2025, reflects the second year of reporting on progress to meet the production targets and policies within the 2023-2031 Housing Element. Notably, the Housing Element APR quantifies the number of net new housing units in submitted applications, approved, permitted, or completed—by household affordability level—during the reporting year (January 1, 2024, to December 31, 2024). In accordance with Action 5.2.11 of the adopted 2023-2031 Housing Element, staff is bringing this informational report for discussion before the City Council. 1 Formerly the Office of Planning and Research Jestin D. Johnson, City AdministratorSubject: General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 Date: May 27, 2025 Page 3 Community and Economic Development Committee May 27, 2025 ANALYSIS AND POLICY ALTERNATIVESAs previously stated, the 2024 General Plan APR highlights accomplishments reached in 2024 towards implementing Oakland’s current General Plan and launching Phase 2 of the 2045 General Plan Update. The 2024 Housing Element APR highlights accomplishments reached in 2024 both in terms of housing production and preservation, as well as progress in implementing City programs and policies adopted in the 2023-2031 Housing Element. As such, the 2024 APRs advance the following Citywide priorities2: Housing Security and Homelessness Solutions: The 2023-2031 Housing Element comprehensively addresses this priority by creating: (1) a Housing Sites Inventory that identifies land suitable and available for residential development to meet the City’s Regional Housing Needs Allocation (RHNA) by income level, and (2) a Housing Action Plan that identifies strategies and measurable outcomes to address the housing crisis and needs of Oaklanders and to affirmatively further fair housing. Additionally, the Environmental Justice Element address this priority through goal EJ-4: Coordinate resources to improve housing quality and habitability. Community Safety, Prevention, and Healing: The Safety Element addresses this priority through goal SAF-7: Foster feelings of safety in all Oakland neighborhoods, which includes policies related to reimagining public safety, Crime Prevention Through Environmental Design, and prioritizing mental health in emergency planning. Clean, Healthy, Sustainable Neighborhoods: The City’s Environmental Justice, Housing, and Safety elements address this priority through various goals, including: EJ-3: Prevent, reduce, and clean up illegal dumping. EJ-6: Support a network of well-maintained community facilities that are easily accessible, culturally supportive, and responsive to community needs. EJ-7: Create environments that support physical activity, recreation, and healthy lifestyles through safe, comfortable, and ADA-compliant walkable, bikeable neighborhoods, with access to transit, green space, trees, paths, and parks. HE-5.2.9: Prioritize improvements to meet the needs of low-resourced and disproportionately burdened communities. SAF-2: Proactively prevent urban fires and exposure to wildfire and protect community members and property from fire danger. SAF-8: Maintain an emergency preparedness and response network that keeps all Oaklanders informed, connected, and safe before, during, and after an emergency. The analysis in this report addresses the first, the 2024 General Plan APR; and second, the 2024 Housing Element APR. I. 2024 GENERAL PLAN ANNUAL PROGRESS REPORT The 2024 General Plan APR addresses the following topics: (1) Date of the Last Update to the General Plan; (2) Measures Associated with Implementation of the General Plan; (3) 2FY 2023-25 Budget Priorities: https://stories.opengov.com/oaklandca/published/zNUGW_vwMd Jestin D. Johnson, City AdministratorSubject: General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 Date: May 27, 2025 Page 4 Community and Economic Development Committee May 27, 2025 Compliance with State LCI’s General Plan Guidelines; (4) Updating Goals, Policies, Objectives, Standards, or Other Plan Proposals; and (5) Implementation of the General Plan. 1. DATE OF THE LAST UPDATE TO THE GENERAL PLAN California Government Code section 65302 mandates that all General Plans address specific topics. Table 1 summarizes the eight (8) required General Plan Elements and two (2) optional topics with the date that they were last updated. Table 1: General Plan Elements General Plan ElementRequired ContentLast UpdatedPhase I of the General Plan Update included updates of the Housing and Safety Elements of the General Plan and creation of the City’s first Environmental Justice Element Housing (Required) The Housing Element implements the declaration of State law that the availability of housing is a matter of vital statewide importance. It is more specific and directive than other elements, with detailed guidance and reviews. The State HCD must review and certify the Housing Element, while jurisdictions submit annual progress reports. In Oakland (and most major cities), the Housing Element must be revised and submitted to State HCD for review on an eight-year cycle.January 31, 2023Safety (Required) The Safety Element is intended to reduce potential short and long-term risks of death, injuries, property damage, and economic dislocation resulting from fires, floods, droughts, earthquakes, landslides, climate change; as well as local hazards.September 26, 2023Environmental Justice (Required) Senate Bill 1000, passed in 2016, requires that cities and towns with disadvantaged communities adopt environmental justice policies or an Environmental Justice Element. These must include objectives and policies to reduce health risks in disadvantaged communities, promote civic engagement in the public decision-making process, and prioritize programs that address the needs of disadvantaged communities. Under SB 1000, Oakland is required to adopt an Environmental Justice Element, either standalone or interwoven with other Elements, concurrent with updates to the Housing and Safety Elements. September 26, 2023 Jestin D. Johnson, City AdministratorSubject: General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 Date: May 27, 2025 Page 5 Community and Economic Development Committee May 27, 2025 Phase II of the General Plan Update is currently underway and includes updates to the City’s Land Use and Transportation Element (LUTE); Open Space, Conservation, and Recreation Element (OSCAR); Noise Element; and development of a new Infrastructure and Facilities Element. Land Use (Required) The Land Use Element establishes the community’s vision for growth via equitable and accessible distribution of different land uses, including residential, commercial, industrial, agricultural, and open space. In Oakland, the Land Use Element for areas outside of the Oakland waterfront is currently contained in the Land Use and Transportation Element (LUTE), adopted in 1998. The Estuary Policy Plan (EPP) establishes the Land Use Element for lands between Interstate 880 and the Oakland waterfront. The EPP was adopted as part of the General Plan in 1999. LUTE – 1998EPP – 1999 LUTE and EPP will be updated during Phase 2 of the General Plan Update. Circulation (Required) The Circulation Element addresses the community’s infrastructure needs for the circulation of people, goods, energy, water, sewage, storm drainage, and communications. By statute, the Circulation Element must correlate directly with the Land Use Element. In Oakland, the Circulation Element for areas outside of the Oakland waterfront is currently contained in the Land Use and Transportation Element (LUTE), adopted in 1998 (Oakland refers to “Circulation” as “Transportation”). The 1999 EPP establishes the current Circulation Element for areas between Interstate 880 and the Oakland waterfront. The 2017 Pedestrian Plan is an adopted part of the City’s Circulation Elements, and sets goals, outlines related policies and programs, and establishes a prioritization strategy to implement recommendations that will improve the pedestrian environment. The 2019 Bike Plan is also an adopted part of the City’s Circulation Elements and outlines major improvements to Oakland’s bicycle network and introduces brand new cycling programming.
LUTE 1998EPP – 1999 LUTE and EPP will be updated during Phase 2 of the General Plan Update. The Pedestrian Plan was updated in 2017. The Bike Plan was comprehensively updated in 2019.
Jestin D. Johnson, City AdministratorSubject: General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 Date: May 27, 2025 Page 6 Community and Economic Development Committee May 27, 2025 2. MEASURES ASSOCIATED WITH IMPLEMENTATION OF THE GENERAL PLAN In 2024, the City continued working on major long-range planning initiatives to implement the Oakland General Plan. While not exhaustive, the list below offers a highlight of major implementation milestones, organized by General Plan Element.
Open Space (Required) The Open Space Element identifies the community’s valuable undeveloped areas and creates a long-term plan to preserve them. In Oakland, the Open Space Element is currently contained in the City’s Open Space, Conservation and Recreation (OSCAR) Element, adopted in 1996.1996 The OSCAR Element will be updated during Phase 2 of the General Plan Update. Conservation (Required) The Conservation Element establishes the community’s goals and policies for the retention, enhancement, and development of natural resources. It is to be coordinated with the Land Use and Open Space Elements. In Oakland, the current Conservation Element is contained in the City’s OSCAR Element, adopted in 1996.1996The OSCAR Element will be updated during Phase 2 of the General Plan Update. Noise (Required) The Noise Element describes the community’s local noise environment and analyzes current and projected noise levels. It outlines policies and implementation measures to address existing and foreseeable noise problems. In Oakland, the current Noise Element was adopted as part of the General Plan in 2005. 2005 Noise Element will be updated during Phase 2 of the General Plan Update. In 2024, the following optional Elements of Oakland’s General Plan did not have a timeline for updates: Historic Preservation (Optional) The Historic Preservation Element provides policies and actions to encourage the preservation of older buildings, districts, and other physical features of historic value. 1994 Scenic Highways (Optional) The Scenic Highways Element establishes policies to preserve and enhance designated roadways traversing the City. It was previously a required element under State law, but that requirement was rescinded in 1984.1974 Jestin D. Johnson, City AdministratorSubject: General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 Date: May 27, 2025 Page 7 Community and Economic Development Committee May 27, 2025 Land Use and Transportation Element (LUTE): o Downtown Oakland Specific Plan(adopted July 2024)o Equitable Climate Action Plan (adopted July 2020) o Coliseum Area Specific Plan(adopted April 2015) oBroadway Valdez District Specific Plan(adopted June 2014)o West Oakland Specific Plan(adopted June 2014) oLake Merritt Station Area Plan(adopted December 2014)o Central Estuary Area Plan(adopted April 2013) Safety Element: o Vegetation Management Plan (adopted May 2024) o Local Hazard Mitigation Plan(adopted June 2021) Open Space, Conservation, and Recreation (OSCAR) Element: o Urban Forest Master Plan (adopted December 2024) 3. GENERAL PLAN COMPLIANCE WITH OPR’S GENERAL PLAN GUIDELINESGeneral Plan Update: As stated previously, a comprehensive update of the City’s General Plan is currently underway. Phase 1 of the General Plan Update (GPU) was completed in fall 2023; and included updates to the Housing Element and Safety Element, the creation of a new Environmental Justice Element, an Industrial Lands Study, an Environmental Impact Report (EIR), and updates to the zoning code and map. In conjunction with Phase 1 of Oakland’s GPU, the City created a Map Atlasto facilitate community input on planning issues, priorities and vision for the future and developed the Environmental Justice and Racial Equity Baselineto identify and delineate disparities by race and geography. With this GPU, the City is advancing its commitment to creating a "fair and just" city and undo past harms and inequities through the creation of more robust and equitable General Plan goals, policies, and actions. This means working to identify and understand the barriers to achieving greater equity and strengths of communities and working with communities to develop solutions for long-term and systemic changes that eliminate the root causes of inequity. In October 2024, the City launched Phase 2 of the GPU. This phase of work will involve updates to the Land Use and Transportation Element (LUTE); the Open Space, Conservation, and Recreation Element (OSCAR); the Noise Element; and development of a new Infrastructure and Capital Facilities Element. GPU Phase 2 kicked off in Fall 2024 with a month-long city-wide survey that gathered insights on planning priorities, neighborhood needs, and visions for Oakland’s future that will inform the development of GPU Phase 2 elements and goals. Insights from the survey were analyzed in the Phase 2 Citywide Survey Report. Insights from this survey and community engagement and public input gathered during 2023 from GPU Phase 1 will inform the development of GPU Phase 2 alternatives and the GPU Phase 2 elements. The City’s GPU process includes a robust and multi-pronged strategy for community engagement, including workshops, discussion groups, pop-up outreach, cultural events, youth engagement, online engagement methods, decision-maker meetings, and more. The GPU process places particular emphasis on engaging communities historically underrepresented and excluded from traditional planning processes and often most negatively impacted by City policies. In 2024, the City worked to assess the success of community engagement activities in Jestin D. Johnson, City AdministratorSubject: General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 Date: May 27, 2025 Page 8 Community and Economic Development Committee May 27, 2025 GPU Phase 1 and to stand up a robust process for community co-creation and engagement for GPU Phase 2. 4.GOALS, POLICIES, OBJECTIVES, STANDARDS, OR OTHER PLAN PROPOSALSIn July 2024, the City adopted the Downtown Oakland Specific Plan (DOSP), which sets forth an action plan and policies that will guide future development and growth of Oakland’s Downtown, in keeping with actions and policies established by the ongoing General Plan Update process. The DOSP was accompanied by an Environmental Impact Report (EIR) and an update to the City’s Planning Code and Zoning Map. The Vegetation Management Plan and the Urban Forest Master Plan were also formally adopted in May and December of 2024, respectively, achieving a benchmark established by the Safety Element and setting the stage for the forthcoming Open Space, Recreation, and Conservation Element. 5. IMPLEMENTATION OF THE GENERAL PLANThe following plans and projects were approved or ongoing in 2024, and amended or proposed amending the General Plan and/or General Plan land use maps: Brooklyn Basin (288 9thAvenue)—Ongoing Construction in 2024 Brooklyn Basin Parcel N (80 Fallon Street) – Application Submitted in 2024 Downtown Oakland Specific Plan (DOSP)— Approved in 2024 Former California College of the Arts Campus (5212 Broadway) — Approved in 2024 Lake Merritt BART TOD (51 9thStreet) – Ongoing Construction in 2024 Oak Knoll Mixed Use Community (8750 Mountain Blvd.) – Ongoing Construction in 2024 II. 2024 HOUSING ELEMENT ANNUAL PROGRESS REPORTThe 2024 Housing Element APR addresses topics including: (1) Overall Housing Production; (2) Affordability of New Housing Units; (3) Progress Towards Meeting Regional Housing Needs Allocations (RHNA) & Reporting Shortfall Housing Needed; (4) Preservation of Residential Units; (5) Applications for Lot Splits & Units Constructed; (6) Housing-Related Activities and Policy; and (7) Key Issues and Expectations for 2025. 6. OVERALL HOUSING PRODUCTION The 2024 Housing Element APR provides a comprehensive accounting on new housing production, by affordability level and type of unit, at key milestones of the development process. In other words, the 2024 Housing Element APR provides an accounting of new housing units proposed (in application submittals to the Planning Bureau), entitled (received all the required land use approvals), permitted (issued a building permit), and completed (passed its final building inspection) during 2024.
Jestin D. Johnson, City AdministratorSubject: General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 Date: May 27, 2025 Page 9 Community and Economic Development Committee May 27, 2025 Table 2 provides the number of new housing units by phase of development and unit type. Analysis of each phase of development is in the subsequent sections. The specific unit type refers to the density and physical form of each development project. State HCD stipulates the following “Unit Type” definitions: Single Family-Detached Unit (SFD) – A one-unit structure with open space on all four sides. The unit often possesses an attached garage. Single Family-Attached Unit (SFA) – A one-unit structure attached to another unit by a common wall, commonly referred to as a townhouse, half-plex, or row house. The shared wall or walls extend from the foundation to the roof with adjoining units to form a property line. Each unit has individual heating and plumbing systems. 2-, 3-, and 4-Plex Units per Structure (2-4) – A structure containing two, three, or four units and not classified as single-unit attached structure. 5 or More Units per Structure (5+) – A structure containing five or more housing units, also known as “Multifamily Housing Projects.” Accessory Dwelling Unit (ADU) – A unit that is attached, detached, or located within the living area of an existing dwelling or residential dwelling unit which provides complete independent living facilities for one or more persons. This category also includes Junior ADUs.3 Mobilehome Unit/Manufactured Home (MH)4 – A one-unit structure that was originally constructed to be towed on its own chassis. Table 2: Number of New Housing Units by Phase of Development and Unit Type, 2024 Unit Category Proposed Entitled Permitted Completed SFD47 46 29 25SFA2 - 1 1692 to 431 23 18 155+ 2,261 2,315 767 1,787ADU 303 263 213 253MH21 19 - -Totals2,6652,6661,0282,249a. New Housing Units Proposed in Application Submittals Table A of the 2024 Housing Element APR5provides a list of application submittals for new housing development that were submitted in 2024 and considered active on December 31, 2024. A total of 385 applications for new housing development were submitted in 2024. As shown in Table 2 above, these applications propose a total of 2,665 new units distributed across housing 3ADUs include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel on which the single- or multi-family dwelling is situated pursuant to Government Code section 65852.2. For purposes of the APR, an ADU also includes the following: an efficiency unit, as defined in Section 17958.1 of the Health and Safety Code or a manufactured home, as defined in Section 18007 of the Health and Safety Code. 4This category includes Vehicular Residential Facilities as defined in the Oakland Planning Code chapter 17.10.700.5https://cao-94612.s3.us-west-2.amazonaws.com/documents/Oakland2024_Online.xlsx Jestin D. Johnson, City AdministratorSubject: General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 Date: May 27, 2025 Page 10 Community and Economic Development Committee May 27, 2025 types accordingly: 2,261 multifamily units; 303 ADUs; 47 single-family detached units; 31 units in duplexes, triplexes, or fourplexes; 21 mobile homes; and two single-family attached units. The number of applications received per year has remained relatively consistent since 2018, when State law first began to require municipalities to report on application submittals. As shown in Figure 1 below, the application submittals for 2,665 new units in 2024 reflect a slightly above-average year since 2018. However, this is a 11% decline from 2023 and a 34% decline from the peak year of 2018. Despite this trend, applications for single family-detached units increased by 9% relative to 2023. While 2022 demonstrated a rebound from the impacts of the COVID-19 pandemic, 2023 and 2024 reflects the realities of an increasingly constrained financial environment. Housing developers are contending with rapidly escalating construction costs; high interest rates; and market rents that have leveled off in escalation primarily due to the over 12,000 units of new market-rate housing that has been completed in Oakland over the past five years. Roughly half of proposed new units are for deed-restricted affordable housing, reflecting Oakland’s ability to contribute local funding to these developments largely through Measure U. In 100% affordable projects, the ability of these projects to enter construction is highly dependent on the ability to further secure competitive funding at the State level. Most of the remaining proposed units are in multifamily projects, which will likely take several years to complete and remain dependent on market conditions for when they will begin construction. Figure 1: Total Number of Units from Application Submittals for New Housing Development, 2018-2024 05001,0001,5002,0002,5003,0003,5004,0002018 2019 2020 2021 2022 2023 2024MHSFA2 to 4SFDADU5+ Jestin D. Johnson, City AdministratorSubject: General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 Date: May 27, 2025 Page 11 Community and Economic Development Committee May 27, 2025 b. New Housing Units Entitled or Approved by Zoning (Entitled) “Entitlements” are planning and zoning approvals to develop a property. A project that has been entitled means the housing development has received all the required land use approvals necessary for the issuance of a building permit. Entitlement typically involves a formal planning review process which focuses on whether the new residential facility will meet specific criteria, including: Development standards established by Zoning; Conformity to the Oakland General Plan and any applicable Specific Plans; and Design review criteria adopted by the Planning Commission or City Council. As shown in Table 2, the City entitled a total of 2,666 new housing units in 2024. As shown in Figure 2, more units were entitled in 2024 than in 2023 but remained below average relative to the period from 2018 to 2024. This represents a 32% increase from 2023 but a 53% decline from the peak year of 2018. In 2024, the increase was largely driven by multifamily housing units, with a 50% increase from 2023. Figure 2: Total Number of New Housing Units Entitled, 2018-2024 05001,0001,5002,0002,5003,0003,5004,0004,5005,0005,5002018 2019 2020 2021 2022 2023 2024MHSFA2 to 4SFDADU5+ Jestin D. Johnson, City AdministratorSubject: General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 Date: May 27, 2025 Page 12 Community and Economic Development Committee May 27, 2025 c. New Housing Units Issued a Building Permit (Permitted) Building permits ensure that any new construction complies with all health, safety, and building code standards. The issuance of a building permit signals that construction on a project may begin - at this point, the unit is considered “permitted”. While projects that have received entitlements have all the necessary land use approvals to apply for a building permit, external factors – such as financing, the real estate market, and complying with applicable pre-construction conditions of approval – will impact the timing for when an application for a building permit is submitted. Only building permits for the construction of new housing units may be counted towards meeting the RHNA. As shown in Table 2, the City permitted a total of 1,028 new housing units in 2024. As shown in Figure 3, more units were permitted in 2024 than in 2023 but remained below average relative to the period between 2018 and 2024. This represents a 30% increase from 2023, but a 78% decline from the peak year of 2018. More than any other metric, the low number of units permitted in 2024 demonstrates the constrained financial environment under which housing developers are currently operating. In contrast to planning entitlements, housing developers typically only apply for building permits once they are ready to break ground on a project. This means that building permit issuance is the best indicator for the current state of housing development. In that regard, this is the stage at which housing developers are most sensitive to rapidly escalating construction costs, high interest rates, and depressed market rents. Accordingly, the increase in permitting relative to 2023 is largely driven by production of affordable housing, as described in the section starting on page 13. Figure 3: Total Number of New Housing Units Permitted, 2018-2024 05001,0001,5002,0002,5003,0003,5004,0004,5002018 2019 2020 2021 2022 2023 2024MHSFA2 to 4SFDADU5+ Jestin D. Johnson, City AdministratorSubject: General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 Date: May 27, 2025 Page 13 Community and Economic Development Committee May 27, 2025 d. New Housing Units Completed (Completed) A completed unit is one where the project has passed its final building inspection and is now ready for occupancy. Inspections are required to ensure that the construction is proceeding according to all current code standards, the approved plans, as well as any conditions-of-approval. As shown in Table 2, the City completed final inspection of a total of 2,249 new housing units in 2024. As shown in Figure 4, more units were completed in 2024 than in 2023 but remained below average relative to the years since 2018. This represents a 48% increase from 2023, but a 46% decline from the peak year of 2021. Notably, more ADUs were completed than in any other year in the period between 2018 and 2024, representing a 5% increase from the previous record in 2023. This demonstrates the resilience of ADU production in challenging financial environments. Figure 4: Total Number of New Housing Units Completed, 2018-2024
7. AFFORDABILITY OF NEW HOUSING UNITS This Housing Element APR provides a summary of housing production by household affordability level. The income levels used in the Housing Element APR are defined by State HCD based on Area Median Income (AMI).6 The AMI is the midpoint of an area's income distribution. This means half of households in an area earn more than the median and half earn less than the median. Each income level is defined below: A Very Low-Income (VLI) household earns between zero and 50 percent of AMI. A Low-Income (LI) household earns between 51 and 80 percent of AMI. A Moderate-Income (MI) household earns between 81 and 120 percent of AMI. 6For more information about Area Median Income: https://www.oaklandca.gov/resources/rent-and-income-limits-for-affordable-housing. 05001,0001,5002,0002,5003,0003,5004,0002018 2019 2020 2021 2022 2023 2024SFA2 to 4SFDADU5+ Jestin D. Johnson, City AdministratorSubject: General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 Date: May 27, 2025 Page 14 Community and Economic Development Committee May 27, 2025 An Above-Moderate household earns more than 120 percent of AMI. Housing units affordable to this income level are known as “Market-Rate” units. An Extremely Low-Income (ELI) household earns equal to or less than 30 percent of AMI. The Housing Element 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 AMI. Thus, the number of new VLI units provided in this report also includes ELI units. For new housing units reported as affordable, the Housing Element APR also provides information on the financial assistance program or deed-restriction mechanism used to subsidize the unit. Figure 5: Number of New Housing Units by Phase of Development and Affordablity, 2024 As shown in Figure 5, the City made important progress in 2024 toward expanding the supply of affordable housing in Oakland. Notably, more or equal numbers of affordable units were proposed, entitled, and permitted compared to market-rate units. Of the 1,028 new units permitted in 2024, 61% were deed restricted affordable units, 18% non-deed restricted affordable ADUs, and 22% market rate units. This demonstrates how subsidized affordable housing is critical to addressing the housing crisis in a financially challenging environment. The robust production of affordable housing seems poised to continue as 50% of the 2,666 new units entitled in 2024 are affordable. The high proportion of affordable housing is due in part to the City’s Measure U affordable housing bond investments that enabled more affordable housing units to secure permits and begin construction in 2024 than at any other point in the past five years. The high 02004006008001,0001,2001,4001,6001,800AffordableMarketAffordableMarketAffordableMarketAffordableMarketProposed Entitled Permitted CompletedMarket RateMI Non-Deed RestrictedMI Deed RestrictedLI Non-Deed RestrictedLI Deed RestrictedVLI Non-Deed RestrictedVLI Deed RestrictedELI Jestin D. Johnson, City AdministratorSubject: General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 Date: May 27, 2025 Page 15 Community and Economic Development Committee May 27, 2025 proportion of affordable housing last year is also due to the low number of market-rate housing projects that secured permits in 2024. Significant construction cost inflation over the past few years, stable rents, and high interest rates may all be contributing factors to the low number of market-rate projects entering construction. As such, the number of deed-restricted affordable housing units permitted in 2024 increased by 159% relative to 2023, while market-rate units decreased by 38%.As shown in Figure 6, a significant number of units at all development stages are in Density Bonus projects. Furthermore, these projects are important contributors to the development of affordable housing. Of all affordable units, Density Bonus projects accounted for 39% of proposed units, 49% of entitled units, 27% of permitted units, and 7% of completed units. This demonstrates how incentivizing inclusionary housing through allowance of higher densities and other relaxation of development standards can spur affordable housing production by housing developers. The Density Bonus program can both unlock larger projects for 100% affordable housing proposals and encourage market-rate housing projects to include affordable units on-site in exchange for incentives and waivers. Many affordable units permitted in 2024 received funding commitments from the $350 million set aside for affordable housing in the City’s 2023 Measure U bond. City-funded affordable housing projects that began construction in 2024 included 3050 International, Longfellow Corner, East 12th Street, Lake Merritt BART Senior Housing, Dignity Village, and many other projects. These projects, with the exception of Dignity Village, received funds from the first tranche of Measure U bonds and additional Measure U funds have been invested in projects that have not yet broken ground. Figure 6: Number of New Housing Units in Density Bonus Projects by Phase of Development and Affordability, 2024 02004006008001,0001,200Proposed Entitled Permitted CompletedELIVLILIMIMarket Rate Jestin D. Johnson, City AdministratorSubject: General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 Date: May 27, 2025 Page 16 Community and Economic Development Committee May 27, 2025 e. Senate Bill 423 Streamlining California Senate Bill (SB) 4237was signed into State law to streamline the construction of affordable housing. SB 423 applies to any city or county that has not made sufficient progress toward meeting their RHNA goals for above-moderate income units or units affordable to LI and VLI households (i.e., households earning below 80 percent of the AMI). Three affordable housing projects submitted under SB 423 were entitled in 2024 (see Table 3). These projects included a total of 112 new housing units deed-restricted to VLI households, 73 new LI housing units, 76 new MI housing units, and three market-rate units set aside for property managers. Table 3: Entitled SB 423 Projects by Affordability Level, 2024 Address Record ID Very Low-Income Low-IncomeModerate-Income Above Moderate-Income Total Units 2511 Church StreetPLN24078 47 - 65 1 113 4655 Steele StreetPLN24099 - 44 11 1 56 125 East 12thStreetPLN24145 65 29 - 1 95 Total Units 112 73763 264 f. Accessory Dwelling Units (ADUs) ADUs can be used to help address a range of local housing issues. According to the ADU Existing Conditions and Barriers Report8, ADUs provide cost-effective, “affordable-by-design” housing in predominately single-family neighborhoods, many of which have immediate access to transit and amenities. They can also stabilize existing single-family neighborhoods by creating rental income for homeowners to help subsidize the cost of home ownership. In addition, they can allow families to support each other across generations while maintaining independent households and opportunities to age in place. As shown in Figure 7, the City entitled 263 ADUs, permitted 213, and completed 253 ADUs in 2024. The number of units entitled and permitted in 2024 were below average relative to the last five years. ADU entitlements in 2024 represent an 13% decline from 2023 and a 30% decline from the peak year of 2020. Permitted ADUs in 2024 represent a 3% decline from 2023 and a 26% decline from the peak year of 2019. However, more ADUs were completed in 2024 than in any of the last six years. This represents a 5% increase from 2023, which was the previous peak. Amid a financially constrained environment, the number of ADUs completed in 2024 7 SB 423 (2023) amended Government Code Section 65913.4, which was first added by SB 35 (2017) 8“Oakland ADU Initiative Existing Conditions And Barriers Report” https://cao-94612.s3.amazonaws.com/documents/Oakland-ADU-Research-Report-Jan-2020-Rev-June-2020.pdf Jestin D. Johnson, City AdministratorSubject: General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 Date: May 27, 2025 Page 17 Community and Economic Development Committee May 27, 2025 demonstrates that they are “affordable-by-design”9, not just for renters, but also for the homeowners developing them. Although significant cost and financing barriers continue to exist for homeowners seeking to build ADUs, compared to multifamily projects they are relatively simple to finance, not needing complex financing schemes. Additionally, ADUs are often built for family or for other reasons that are less affected by economic cycles than multifamily housing. This ensures stable demand for ADU production. Figure 7: Production of Accessory Dwelling Units, 2019-2024 Over the course of the 5th RHNA Cyle (2015-2023), the City reported ADUs as market-rate units to the State through the Housing Element APR. This was done because ADUs are not deed-restricted. However, recent studies on the affordability of ADUs support the idea that ADUs are an important source of housing that is “affordable-by-design”. Based on an ADU affordability study10conducted by the Association of Bay Area Government (ABAG), State HCD has determined that ABAG region jurisdictions may use this data for the APRs for calendar years 2023 and 2024 to establish the naturally occurring (non-deed restricted) affordability levels for ADUs. This study estimates that of all ADUs, 30% each qualify as VLI, LI, and moderate-income units. Meanwhile, the study estimates that the remaining 10% of units qualify as above-moderate-income units. For Oakland’s 2024 APR, this distribution was applied across all reported ADUs. As income categories must be reported for each individual project, each unit was assigned a non-deed restricted affordability level. These assignments were made such that the overall distribution of proposed, entitled, permitted, and completed units each approximately represent the 30-30-30-10 distribution determined by the ABAG study, as show in Table 4. 9 Affordable-by-Design means that housing units have below-average rents without requiring the subsidies of conventional, deed-restricted affordable housing. Instead, rents are influenced by smaller than average unit size and reduced land costs. 10"Using ADUs to Satisfy RHNA" ABAG Technical Memo: https://abag.ca.gov/tools-resources/digital-library/adus-projections-memo-finalpdf. 285374364342304263289174274287219213114194921432422530501001502002503003504002019 2020 2021 2022 2023 2024EntitledPermittedCompleted Jestin D. Johnson, City AdministratorSubject: General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 Date: May 27, 2025 Page 18 Community and Economic Development Committee May 27, 2025 Given this methodology, the reported income category of ADUs should only be considered in the aggregate. The reported affordability of an individual ADU does not necessarily reflect the actual rent charged for that unit. Table 4: ADU Affordability by Phase of Development, 2024 Proposed Entitled Permitted Completed Very Low-Income92 74 64 76 Low-Income94 80 55 76 Moderate Income90 79 56 75Above Median Income27 30 38 26Totals303263213253 8. PROGRESS TOWARDS MEETING REGIONAL HOUSING NEEDS ALLOCATION & REPORTING SHORTFALL HOUSING NEED Every jurisdiction in California is required to zone for enough land for private development to meet that city’s RHNA. The RHNA is determined through a state-mandated process carried out by regional planning entities – in the case of Oakland’s RHNA, the corresponding entity is the Association of Bay Area Governments (ABAG). The City’s progress toward meeting the RHNA is presented in Table B of the Housing Element APR11and Table 5. Table 5: Regional Housing Needs Allocation Progress, 2023-2030 Income LevelRHNA2022* 2023 2024 202520262027 202820292030 Total Units RHNA Due Very Low6,511288 174 370 832 5,679 Low3,750137 113 326 576 3,174 Moderate 4,45778 141 109 328 4,129 Market11,533588 355 2231,16610,367Total 26,251 1,091 7831,028 2,902 23,349 * The unit counts under 2022 reflect units permitted between June 30, 2022 and January 30, 2023, which were credited towards the 6thCycle RHNA.Through 2024, Oakland has permitted 11% of the required units for the 6th Cycle. To accomplish its RHNA goals, Oakland would need to annually permit an average of 3,892 units over the next six years. The limited production of market-rate units is largely driven by negative market conditions, including high interest rates, rapidly escalating construction costs, and stable rents. However, with a 31% increase in permitted units compared to 2023, the City’s efforts to facilitate housing production appear to be helping. These changes include major amendments made to the Planning Code in October 2023, as well as the passage of Measure U in November 2022, which allocates new funding towards affordable housing developments. 11https://cao-94612.s3.us-west-2.amazonaws.com/documents/Oakland2024_Online.xlsx Jestin D. Johnson, City AdministratorSubject: General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 Date: May 27, 2025 Page 19 Community and Economic Development Committee May 27, 2025
9. PRESERVATION AND PRODUCTION OF AFFORDABLE RESIDENTIAL UNITS The City typically issues funding for the construction, acquisition, and preservation of affordable housing via competitive “Notice of Funding Availability” (NOFA) processes. 2024 saw major continued City investments towards these affordable housing priorities. The City's Acquisition and Conversion to Affordable Housing (ACAH) Program is an anti-displacement program that preserves existing housing that is affordable to low-income Oaklanders. The City provides financing to affordable housing partners to acquire unsubsidized affordable housing, perform necessary upgrades and improvements to the physical condition of the property. In return, the homes are deed restricted as affordable to low- and moderate- income households for at least 55 years. In 2024, the City’s ACAH program closed on 41 affordable housing units and issued a notice to proceed for another 14 units. Two of these projects were sponsored by community land trusts. Several additional projects continue to be in predevelopment, including some land trust sponsored projects. In 2024, the City also entered into a partnership with the Housing Accelerator Fund to streamline program administration and pursue time-limited acquisition opportunities. As part of the partnership with the Housing Accelerator Fund, Oakland’s Housing and Community Development Department (Oakland HCD) is working to update the ACAH program guidelines, underwriting criteria and loan limits to respond to changing market conditions. The updated program is expected to be released later in 2025. In 2024, the City issued its inaugural Rapid Response Homeless Housing (R2H2) NOFA. Building off the success of past Homekey projects in Oakland, R2H2 is an over-the-counter funding program that focuses on fast-to-deliver housing solutions for unhoused Oaklanders. This NOFA contained $10.4 million in capital funding and $19.7 million in operating funds. In 2024, the City funded the first project in this new program and identified several candidates for the State’s Homekey+ program, which opened in early 2025. In 2024, the Council authorized $80.5 million in Measure U funding for affordable housing projects through the City’s New Construction Notice of Funding Availability (New Construction NOFA). Based on funding priorities outlined in Oakland HCD’s Strategic Action Plan (https://cao-94612.s3.us-west-2.amazonaws.com/documents/HCD-2023-2027-Strategic-Action-Plan.pdf) and project scoring, this investment resulted in five (5) funding awards to multifamily affordable housing rental developments with a total of 583 units, including 176 units of Permanent Supportive Housing serving unhoused individuals and their families. These units will all be affordable to Extremely Low-Income households, thereby advancing the City’s progress on the Very Low Income RHNA. The 2024 New Construction NOFA and associated documents are available at the following website: https://www.oaklandca.gov/resources/2024-25-new-construction-of-multifamily-rental-affordable-housing-notice-of-funding-availability-nofa. In addition to the local investment of over $100 million in new housing production in 2024, the City vigorously pursued State and Federal funding opportunities to support more affordable units. In 2024, the City applied for and subsequently won $7 million from the federal Pathways to Reducing Obstacles to Housing (PRO Housing) grant. These funds will support affordable housing permit streamlining and a new revolving predevelopment loan program for affordable housing. These new resources will ultimately help affordable housing projects expedite their timelines to begin construction and deliver affordable homes for Oaklanders. The City also took Jestin D. Johnson, City AdministratorSubject: General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 Date: May 27, 2025 Page 20 Community and Economic Development Committee May 27, 2025 recent action to streamline the entitlement process for affordable housing. With the adoption of the S-13 Affordable Housing Overlay in 2023, affordable housing in Oakland is eligible for by-right approval, two extra stories, unlimited density within the building envelope, and exemption from parking requirements. This overlay applies to all zones in which housing can be built, with limited exemptions for historic landmarks and the S-9 Fire Safety Protection Combining Zone. Figure 8: Permitted Affordable Housing Production and Preservation Progress, 2017-2024
10. APPLICATIONS FOR LOT SPLITS & UNITS CONSTRUCTED In 2019, Governor Gavin Newsom signed into law Senate Bill (SB) 9. The new law requires jurisdictions to ministerially approve either or both of the following, as specified: A housing development of no more than two units (duplex) in a single-family zone. (Gov. Code Section 65852.21) The subdivision of a parcel zoned for residential use, into two approximately equal parcels (lot split), as specified. (Gov. Code Section 66511.7) Government Code section 65852.21(i) requires units constructed pursuant to Government Code section 65852.21 to be included in the Housing Element APR. Government Code section 66411.7(l) requires lot splits approved pursuant to Government Code section 66411.7 to be included in the Housing Element APR. SB 9 only applies to single-family zones outside of environmental hazard and historic areas. Action 3.2.1 in the 2023-2031 Housing Element committed the City to significantly reducing single-family zoning. Through updates to the zoning code as part of the Missing Middle Housing 324337436242317637428805631553012341911601002003004005006007008002017 2018 2019 2020 2021 2022 2023 2024RHNA AffordableNon-RHNA Acquisition and/or Preservation Jestin D. Johnson, City AdministratorSubject: General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 Date: May 27, 2025 Page 21 Community and Economic Development Committee May 27, 2025 Type Planning Code amendments adopted on October 3, 202312 — in particular to the City’s Detached Residential (RD) and the Mixed Housing Type Residential (RM) Zones where four-plexes are now permitted on lots that are 4,000 square feet or larger and two units on lots of any size — the City has largely eliminated single-family zoning, thus making progress towards its goal of furthering equitable opportunities for all people and communities. Through this measure, the City has significantly reduced the extent of exclusionary zoning, and thus the applicability of SB 9 in the City. Zero housing projects submitted under SB 9 were entitled in 2024. 11. HOUSING-RELATED ACTIVITIES & POLICY Oakland’s 2023-2031 Housing Element includes a Housing Action Plan that identifies 123 action items that address the following goals: 1. Protect Oakland residents from displacement and prevent homelessness. 2. Preserve and improve existing housing stock. 3. Close the gap between affordable and market-rate housing production by expanding affordable housing opportunities. 4. Address homelessness and expand resources for the unhoused. 5. Promote neighborhood stability and health. Progress toward implementing all policies and programs included in the Housing Action Plan can be found in Table D of the 2024 Housing Element APR13. Highlights include: 1.1.11 Enforce the tenant right to return and protections from coercive buyouts. 2.2.5 Extend local replacement unit provisions. On December 3, 2024, the City Council adopted Ordinance 13822 C.M.S.adding Replacement Housing Unit Regulations to the Planning Code. These regulations codify Oakland's implementation of the Housing Crisis Act of 2019, enacted pursuant to SB 330 and AB 1218. 3.2.6 Monitor Affordability of Permitted ADUs. The City developed a survey tool to gather information from ADU property owners on household size and rents charged for ADUs that were issued building permits between 2018-2023. The survey was distributed to ADU property owners in the first quarter of 2024. The survey ADU results will be taken to Planning Commission on June 18th. 3.3.7 Study the targeted implementation of an inclusionary housing requirement. On December 10, 2024, the Community and Economic Development Committee conducted a study session to: (1) receive an informational presentation and report on the Development Feasibility Analysis And Housing Strategy Study conducted as part of the 12“Oakland 2045 General Plan Update: Certification Of The Final Environmental Impact Report For Phase 1 Of The City Of Oakland 2045 General Plan Update And Adoption Of The Safety And, Environmental Justice Elements And The Planning Code Text And Map Amendments,” Ordinance No. 13763 C.M.S.: https://oakland.legistar.com/View.ashx?M=F&ID=12374879&GUID=EFB8E718-2B87-44A5-BE18-796FBD0C3BB9 13https://cao-94612.s3.us-west-2.amazonaws.com/documents/Oakland2024_Online.xlsx Jestin D. Johnson, City AdministratorSubject: General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 Date: May 27, 2025 Page 22 Community and Economic Development Committee May 27, 2025 Impact Fees Update Phase 2 Process, and (2) provide feedback to staff on draft Impact Fee Program And Housing Policy Recommendations. 3.3.12 Continue the Acquisition and Conversion to Affordable Housing (ACAH) Program In 2024, Oakland HCD entered into a partnership with the Housing Accelerator Fund to streamline program administration and better pursue time-limited acquisition opportunities. In 2024, the ACAH program closed on 41 affordable housing units and issued a notice to proceed for another 14 units. Two of these projects were land trust sponsored. 3.4.8 Implement Objective Design Standards. On October 2, 2024, the Planning Commission adopted Objective Design Standards for four- to eight-story residential and mixed-use multifamily buildings.14The City expects to adopt similar Objective Design Standards for One-Family, Two- to Four-Family, and one- to three-story multifamily buildings in 2025. 5.2.11 Provide accountability measures for housing programs, including annual monitoring. In April 2024, the Planning Commission designated their Zoning Update Committee to serve as the subcommittee to monitor the progress of the 2023-2031 Housing Element. 12. KEY ISSUES AND EXPECTATIONS FOR 2025 Affordable Housing Oakland HCD has several key funding initiatives underway in 2025 and continues to engage with local, regional, and state partners around new funding opportunities for affordable housing. One major focus for the City in 2025 will be the continued investment of Measure U funding in affordable housing. Building off the $80.5 million of Measure U funding committed in via the 2024-2025 New Construction NOFA, the City anticipates making further Measure U investments this year in the Rapid Response Homeless Housing (R2H2) program and the Acquisition and Conversion to Affordable Housing (ACAH) program. These investments will protect the affordability of existing homes and produce new affordable homes for hundreds of Oaklanders. Despite these considerable investments, the primary limitation on affordable housing construction in Oakland remains the availability of funding. With over 1,000 units of new deed-restricted affordable housing proposed in 2024, Oakland continues to experience a robust pipeline of potential affordable housing projects. This leads to a strong oversubscription for available affordable housing funds—the 2024-2025 New Construction NOFA received $420 million in applications for only $80.5 million in available funds. Competition for recent state-level grant programs is similarly intense. There are several factors that may make 2025 a particularly challenging year to fund affordable housing projects. The failure to adopt a regional affordable housing bond in 2024 and the outlook for the State budget suggests limited availability for regional and state level funding options. For both affordable and market-rate developments, higher material costs due to 14https://www.oaklandca.gov/meeting/october-2-2024-planning-commission-meeting Jestin D. Johnson, City AdministratorSubject: General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 Date: May 27, 2025 Page 23 Community and Economic Development Committee May 27, 2025 increased tariffs is a significant influence on project feasibility. Affordable housing projects in Oakland also frequently struggle to receive affordable housing tax credits due to issues with the scoring framework that the State uses to prioritize tax credit awards. The City will pursue several strategies in 2025 to mitigate these funding challenges. The City will actively participate in the process to allocate Measure W funding available at the county level to ensure that these funds are used effectively towards reducing homelessness. As discussions begin about a possible Alameda County affordable housing bond in 2026, the City will also collaborate with the County and other stakeholders around the most effective way to leverage this possible resource. The City will partner with suitable projects to apply to the State’s Homekey+ program, which will create homeless housing for Oaklanders with mental and/or behavioral health challenges. The City will also collaborate with the Bay Area Housing Finance Agency (BAHFA) to explore new lending products to make affordable housing finance more efficient. Another area of collaboration with BAHFA will be the implementation of the Doorway Regional Housing Portal, a one-stop destination for Oaklanders seeking affordable housing. Although some older affordable housing projects will continue to fill vacancies through their existing processes, new affordable housing for the general public will all be listed on the Doorway portal to simplify the affordable housing search process. An ongoing challenge for affordable housing in 2025 is the high cost of construction. Although construction cost inflation in 2024 was less severe than in the early 2020’s, the cost of building affordable housing in the San Francisco Bay Area continues to be higher than almost anywhere else in the country. The cost of materials and especially labor are major contributors to these elevated costs. Oakland specific labor requirements for City-funded affordable housing —such as minimum contract participation requirements for local businesses, apprenticeship requirements, and local hire provisions—may cause City-funded projects to be more expensive than similar projects in nearby cities. As a result of high per unit costs, affordable housing in Oakland often needs to assemble a large number of different local and state funding sources. This fragmented set of funding sources causes projects to spend longer in pre-development and may contribute to higher costs. High costs also make Oakland affordable housing projects less competitive for state funding, as some funding programs, in particular affordable housing tax credits, place a heavy weight on project cost when deciding which developments to prioritize for state funding. Market-rate housing Based on the number of permits issued in 2024, 2025 will likely see fewer new market-rate housing units completing construction. In 2024, Oakland saw the tail end of the mid-2010's “housing boom” complete construction, which over the past five years led to over 12,000 new market-rate housing units. Many of these projects were planned and financed before pandemic-era economic dislocations occurred. As a result, some of these projects were not able to support the rent levels projected before those projects began construction. This has in turn led to several newly built market-rate housing projects being sold at below their previous valuations. This has led to some acquisition opportunities for the City’s affordable housing and homelessness programs—such as the 1888 MLK project—but cheap acquisition opportunities may have also diverted some real estate investment away from additional new construction. Market rents in Oakland declined in the immediate aftermath of the pandemic and have remained largely stable since, but the decline in new market-rate housing completions may Jestin D. Johnson, City AdministratorSubject: General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 Date: May 27, 2025 Page 24 Community and Economic Development Committee May 27, 2025 cause rents to rise once again over the next few years. The large number of proposed market-rate units seeking zoning approvals may be due in part to investor expectations of increased market rent levels. However, high construction costs and national economic uncertainty may limit the number of new market-rate building permit applications in 2025. In 2025, the City will continue to seek opportunities to streamline the approval process for housing at all incomes. Following on 2024’s adoption of objective design standards for four- to eight-story multifamily housing projects, the City plans to adopt objective design standards in 2025 for One-Family, Two- to Four-Family, and one to three story multifamily buildings. These objective standards will help improve the predictability and timeframe for planning approvals. The City will also explore additional opportunities to streamline development approvals and work with other agencies to redeploy vacant land for development opportunities. FISCAL IMPACT This report is for informational purposes only and does not have a direct fiscal impact or cost. The State HCD incentivizes and rewards local governments that have adopted compliant and effective Housing Elements. There are several housing and community development and infrastructure funding programs that include Housing Element compliance as a rating and ranking or threshold requirement. In addition, AB 879 and SB 35 created new consequences for failing to submit an APR to the State HCD and the OPR by April 1 of each year. These new consequences include court sanctions and requiring municipalities to use a streamlined and ministerial process for approving affordable multifamily housing developments that satisfy the jurisdiction’s planning standards and requirements. Given this, it is important to prioritize staff time to submit this document annually. The housing trends described in this report have a profound impact on the long-term health of the City budget. The construction of affordable housing, and especially Permanent Supportive Housing for the homeless, reduces the number of homeless Oakland residents and the demand for street homelessness services, homeless-related emergency services, and other homelessness-related City expenses. Also, market-rate housing construction is an important component of property tax growth, which is a valuable contributor to the City’s General Fund. The construction of new housing - affordable and market-rate alike - generates additional revenue for the City from construction-related business and sales taxes. New residents become additional customers for local businesses, supporting a healthy business and sales tax base over the long term. PUBLIC OUTREACH / INTEREST As noted earlier in this report, the 2024 APRs submitted to the State OPR and the State HCD on April 1, 2025, reflect the second year of reporting on progress to meet the production targets and policies within the City’s 2023-2031 Housing Element. Government Code 65400 section (b) allows municipalities to consider the APR at a public meeting before the legislative body within 60 days of the April 1st deadline. In accordance with Action 5.2.11 of the adopted 2023-2031 Housing Element, the City conducted a public meeting before the Zoning Update Committee on May 14th and the Planning Commission on May 21stto review and consider the APR.
Jestin D. Johnson, City AdministratorSubject: General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 Date: May 27, 2025 Page 25 Community and Economic Development Committee May 27, 2025 COORDINATION Staff from the Planning and Building Department, Oakland HCD, Economic and Workforce Development Department, City Administrator’s Office, Office of the City Attorney, Department of Finance, Department of Transportation, Fire Department, Human Services Department, Mayor’s Office, and Oakland Public Works coordinated in 2024 to implement the General Plan and 2023-2031 Housing Element. Additionally, staff from the Bureau of Planning and the Oakland HCD have worked closely to prepare these APRs, along with this agenda report and attachments. This report has been reviewed by the Office of the City Attorney. SUSTAINABLE OPPORTUNITIES Economic: There are no economic opportunities associated with these reports. However, State HCD incentivizes and rewards local governments that have adopted compliant and effective Housing Elements. There are several housing and community development and infrastructure funding programs that include Housing Element compliance as a rating and ranking or threshold requirement. In addition, the continued implementation and updating of Oakland’s General Plan promotes meaningful civic engagement in the public decision-making process and identify objectives, policies, improvements, and programs that address the most pressing needs in the community, particularly where social, economic, and racial inequities are most prevalent. Environmental: There are no environmental opportunities associated with the Housing Element and General Plan APRs as they track progress toward meeting the City’s RHNA and General Plan goals. However, there are significant environmental opportunities associated with the City’s continued implementation of policies contained in the General Plan and Housing Element of the General Plan, including locating affordable housing near transit, which reduce greenhouse gas emissions. Race & Equity: Based on several recently-published reports, housing justice – the process and outcome of establishing housing as a human right – is now the number one priority for Oaklanders of all races, particularly for those who are at the lower ends of the income brackets and/or are experiencing homelessness.15,16,17While housing affordability is both a regional, if not statewide issue, it severely impacts Oakland given the relatively high proportions of people 15"Centering Racial Equity in Homeless System Design." (2021) Oakland-Berkeley-Alameda County Continuum of Care. https://everyonehome.org/wp-content/uploads/2021/02/2021-Centering-Racial-Equity-in-Homeless-System-Design-Full-Report-FINAL.pdf. 16"Housing Vulnerability in Oakland, CA." (2020) The Housing Initiative at Penn. https://www.housinginitiative.org/uploads/1/3/2/9/132946414/hip_oakland_market_study_9-29-20_small.pdf. 17“A Primer on Power, Housing Justice, and Health Equity: How Building Community Power Can Help Address Housing Inequities and Improve Health.” (2020) Human Impact Partners. https://static1.squarespace.com/static/5ee2c6c3c085f746bd33f80e/t/5f6a265e4f5ea8325042f1cd/1600792164297/HIP.RTTC_Final_Housing_Justice_HE_Primer+%281%29.pdf.
Jestin D. Johnson, City AdministratorSubject: General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 Date: May 27, 2025 Page 26 Community and Economic Development Committee May 27, 2025 needing below-market housing and the high cost of housing in the Bay Area.18According to the American Community Survey estimates for 202319, a staggering 49% of Oakland renters are housing burdened20and 27% are severely housing burdened21. As shown in Figure 9, rent burden also follows familiar patterns of racial inequity. Black households have the lowest median household income, and approximately 58% of Black renter households are rent burdened with about 33% severely rent burdened — the highest rate of any racial/ethnic group in Oakland. Only White households had a rent burden below 40%. Therefore, there are significant racial equity opportunities associated with the City’s continued implementation of the policies contained in the 2023-2031 Housing Element, and from the City’s production of housing for residents at all income levels. As part of the 2023-2031 Housing Element, the City prepared a Racial Equity Impact Analysis (REIA). This document identifies “whether Black/African American, Indigenous, and other Oaklanders of color are (1) disproportionately affected by the negative effects of programs and policies or (2) have less access to benefits provided through policies and programs.” The REIA evaluated each action in the Housing Action Plan “for its potential to help reverse longstanding housing disparities and provides additional recommendations for maximizing racial equity impacts”, identified those “actions with the most potential to positively impact racial equity in housing outcomes,” and provided “high priority recommendations to strengthen actions or ensure equitable implementation to improve outcomes for [Black, Indigenous, and People of Color] Oaklanders.” The REIA found the Housing Action Plan would have a moderate to high impact on improving racial equity and included recommendations on how to implement the actions with the highest impact. In 2024, implementation of the Housing Action Plan incorporated those recommendations. Of the 25 actions highlighted in section II.6 Housing-Related Activities & Policy, 31% were found to have a high impact on racial equity, while another 56% have a moderate impact. Implementing and updating Oakland’s current General Plan promotes meaningful civic engagement in the public decision-making process and identify objectives, policies, improvements, and programs that address the most pressing needs in the community, particularly where social and racial inequities are most prevalent. 18“Oakland 2045: Environmental Justice and Racial Equity Baseline.” City of Oakland Planning and Building Department. https://cao-94612.s3.amazonaws.com/documents/Equity-Baseline_revised4.15.22.pdf. 19U.S. Census Bureau. "Gross Rent as a Percentage of Household Income in the Past 12 Months." American Community Survey, ACS 1-Year Estimates Detailed Tables, Table B25070, 2023, https://data.census.gov/table/ACSDT1Y202.B25070 20Pay more than 30% of income on housing costs. 21Pay more than 50% of income on housing costs.
Jestin D. Johnson, City AdministratorSubject: General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 Date: May 27, 2025 Page 27 Community and Economic Development Committee May 27, 2025 Figure 9: Rent-Burden by Race/Ethnicity in Oakland, 202122 CALIFORNIA ENVIRONMENTAL QUALITY ACT Consideration of the 2024 General Plan APR and the 2024 Housing Element APR does not constitute a project under the California Environmental Quality Act (CEQA). ACTION REQUESTED OF THE CITY COUNCILStaff Recommends That The City Council Receive An Informational Report On The City Of Oakland’s General Plan and Housing Element Annual Progress Reports For Calendar Year 2024. 22 U.S. Census Bureau. "Gross Rent as a Percentage of Household Income in the Past 12 Months." American Community Survey, ACS 5-Year Estimates Detailed Tables, Table B25070, 2021 https://data.census.gov/table/ACSDT5YSPT2021.B25070 0%10%20%30%40%50%60%70%80%90%100%White Black or African American Hispanic or Latino AsianSeverely Rent-BurdenedRent-Burdened Jestin D. Johnson, City AdministratorSubject: General Plan & Housing Element Annual Progress Reports for Calendar Year 2024 Date: May 27, 2025 Page 28 Community and Economic Development CommitteeMay 27, 2025 For questions regarding this report, please contact Timothy Green, Planner III, at [email protected], or Caleb Smith, Senior Policy Analyst, at [email protected]. Respectfully submitted,WILLIAM A. GILCHRISTDirector, Department of Planning & BuildingEMILY WEINSTEINDirector, Department of Housing & Community DevelopmentReviewed by:Laura Kaminski, Strategic Planning Manager, Planning & Building DepartmentEdward Manasse, Deputy Director/City Planner, Bureau of Planning, Planning & Building DepartmentAlicia Gaylord, Deputy Director of Housing, Housing & Community Development DepartmentPrepared by: Timothy Green, Planner III Strategic Planning, Planning & Building DepartmentCaleb Smith, Senior Policy AnalystHousing & Community Development Department